ETHICAL BEHAVIORS AND CONTRACT MANAGEMENT AT NATIONAL

WATER AND SEWERAGE COOPERATION

BY

SHERINAH NAKAYENGA

19/MPP/KLA/WKD/0014

A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT

SCIENCES FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE AWARD OF THE MASTERS DEGREE OF MASTER IN PUBLIC

PROCUREMENT OF UGANDA MANAGEMENT INSTITUTE

OCTOBER, 2022

i
 DECLARATION

I, SHERINAH NAKAYENGA, declare that this dissertation entitled “Ethical behaviors and

contract management at National Water and Sewerage Cooperation” is my own original work

and it has not been presented and will not be presented to any other institution for any

academic award. Where other people’s work has been used, this has been duly

acknowledged.

Sign ……………………………………. Date………………………………..

SHERINAH NAKAYENGA

19/MPP/KLA/WKD/0014

ii
 APPROVAL

This is to certify that this dissertation by SHERINAH NAKAYENGA entitled, “Ethical

behaviors and contract management at National Water and Sewerage Cooperation” has been

submitted for examination with our approval as Institute supervisors.

Sign ……………………………………. Date………………………………..

ASSOC. PROF. GERALD KAGAMBIRWE KARYEIJA

SUPERVISOR

Uganda Management Institute

Sign ……………………………………. Date………………………………..

MR JOSEPH BUFWAMBU

SUPERVISOR

Uganda Management Institute

iii
 DEDICATION

This dissertation is dedicated to my family members most especially my dear husband Eng.

Mugisha Plan, my children Anthony Murungi, Anitah Ulrika Mirembe and Angella

Muganzi and my parents Late Colonelius Lukonge and Namakula Beatrice and finally my

beloved grandpa Lawrencio Bukenya Maliba for their financial support and moral

encouragement.

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 ACKNOWLEDGEMENT

I am deeply indebted to my research supervisors Assoc. Prof. Gerald Kagambirwe Karyeija

and Mr. Joseph Bufwambu for their patience with my inadequacies as they guided me

through the research process. Without your parental and professional input, this research

would have been difficult to elevate to its current level.

I acknowledge with gratitude the contributions and co-operation made by the respondents

from National Water and Sewerage Cooperation for their willingness to provide the necessary

information when I visited the institution during the research process. Without their

cooperation, this study would have been impossible to accomplish.

I also thank my colleagues at Uganda Management Institute, Samson, Bosco, Jolly, Isaac,

Brenda and Robert who helped me in my academic journey. I deeply treasure the

contributions of all the above persons and ask God Almighty to richly bless them.

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 TABLE OF CONTENTS

DECLARATION.......................................................................................................................i

APPROVAL.............................................................................................................................ii

DEDICATION........................................................................................................................iii

ACKNOWLEDGEMENT......................................................................................................iv

LIST OF FIGURES..............................................................................................................viii

ABSTRACT..............................................................................................................................x

CHAPTER ONE.......................................................................................................................1

INTRODUCTION....................................................................................................................1

1.0 Introduction..........................................................................................................................1

1.1 Background to the study.......................................................................................................1

1.1.1 Historical background.......................................................................................................2

1.1.2 Theoretical background.....................................................................................................3

1.1.4 Contextual background.....................................................................................................7

1.2 Statement of the problem.....................................................................................................8

1.3 Objectives of the study.........................................................................................................9

1.3.1 General objective of the study...........................................................................................9

1.3.2 Specific objectives of the study.........................................................................................9

1.4 Research questions...............................................................................................................9

1.6 Significance of the study....................................................................................................10

1.7 Justification of the study....................................................................................................10

1.8 Conceptual framework of the study...................................................................................11

1.9 Scope of the study..............................................................................................................11

1.9.1 Geographical scope.........................................................................................................11

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1.9.2 Content scope..................................................................................................................12

1.9.3 Time scope......................................................................................................................12

1.10 Operationalization of key terms and concepts.................................................................12

CHAPTER TWO...................................................................................................................14

LITERATURE REVIEW......................................................................................................14

2.1 Introduction........................................................................................................................14

2.2 Theoretical review..............................................................................................................14

2.3 Review of related literature................................................................................................15

2.3.1 Confidentiality and contract management......................................................................15

2.3.2 Value for money and contract management....................................................................17

2.3.3 Integrity and accountability and contract management..................................................20

2.4 Summary of literature........................................................................................................22

CHAPTER THREE...............................................................................................................23

METHODOLOGY.................................................................................................................23

3.1 Introduction........................................................................................................................23

3.2 Research design..................................................................................................................23

3.3 Study Population................................................................................................................24

3.4 Sampling Techniques and Procedure.................................................................................24

3.5 Data collection methods.....................................................................................................24

3.5.1 Interview method............................................................................................................24

3.6 Data collection instruments................................................................................................24

3.6.1 Interview Guide...............................................................................................................24

3.7 Quality control of the instrument.......................................................................................25

3.8 Procedure of data collection...............................................................................................25

3.9 Data Analysis.....................................................................................................................26

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3.10 Ethical Considerations.....................................................................................................26

CHAPTER FOUR..................................................................................................................27

DATA PRESENTATION, ANALYSIS AND INTERPRETATION.................................27

4.1 Introduction........................................................................................................................27

4.2 Presentation of findings......................................................................................................27

4.2.1 Demographic characteristics of the participants.............................................................27

4.3 Confidentiality and contract management.........................................................................28

4.4 Value for money and contract management.......................................................................30

4.5 Integrity and contract management....................................................................................31

CHAPTER FIVE....................................................................................................................34

SUMMARY OF FINDINGS, DISCUSSION OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS.......................................................................................................34

5.1 Introduction........................................................................................................................34

5.2 Summary of findings..........................................................................................................34

5.2.1 Confidentiality and contract management......................................................................34

5.2.2 Value for money and contract management....................................................................34

5.2.3 Integrity and contract management.................................................................................35

5.3 Discussion of findings........................................................................................................35

5.3.1 Confidentiality and contract management......................................................................35

5.3.2 Value for money and contract management....................................................................37

5.3.3 Integrity and contract management.................................................................................38

5.4 Conclusion..........................................................................................................................39

5.4.1 Confidentiality and contract management......................................................................39

5.4.2 Value for money and contract management....................................................................40

5.4.3 Integrity and contract management.................................................................................40

viii
5.4 Recommendations..............................................................................................................41

5.5 Contribution of the study to body of knowledge...............................................................42

5.6 Areas for further research...................................................................................................42

REFERENCES.......................................................................................................................43

APPENDENCES.......................................................................................................................i

APPENDIX 1: INTERVIEW GUIDE FOR KEY INFORMANTS.....................................i

APPENDIX II: DOCUMENT CHECKLIST.......................................................................iii

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 LIST OF FIGURES

Figure 1.1: The relationship between ethical behavior and contract management.........11

x
 LIST OF ACROYMNS

NWSC: National Water and Sewerage Corporation

OECD Organization for Economic Co-operation and Development

PDE Procurement and Disposal Entitity

PDU: Procurement and Disposal Unit

PPDA: Public Procurement and Disposal of Public assets Authority

xi
 ABSTRACT

The purpose of the study was to examine the impact of ethical behaviors on contract

management in NWSC. The objectives of the study were; to explore how confidentiality

influences contract management at NWSC, to assess how the value for money influences

contract management at NWSC and to explore how integrity influences contract management

at National Water and Sewerage Cooperation. A qualitative case study research design was

used. The researcher interviewed six (6) participants in this qualitative study. These

participants were involved because of the nature of the study on disability. According to the

study results, it emerged that supplier confidentiality should be safe-guarded, and

unsuccessful suppliers should be debriefed with as much transparency about the procurement

process as can be provided. It was reported that that NWSC completed and implemented

most planned contracts the contracts within the time required. It was also revealed that in

NWSC, all contracts were performed within the budget, the organization had a monitoring

unit to monitor quality of roads constructed and more to that all officials were committed to

achieve value for money. It was revealed that NWSC had its ethics, norms and all workers

emphasized confidentiality. It was also reported that NWSC workers did not discriminate

contractors which clarified that transparency, accountability and fairness was ensured during

contract performance. The study recommends that the government NWSC as a government

entity should emphasize and abide by code of ethics that its employees are supposed to

follow and more to that breaking the code of ethics should be subjected to termination or

dismissal from the organization. Program and acquisition staff must work together more

effectively toward a common goal. Procurement teams should adopt transparency

procurement practices, accountability practices in procurement, integrity practices in

procurement, confidentiality practices in procurement and procurement professionalism

practices so as to effectively and efficiently improve on the procurement performance.

xii
 CHAPTER ONE

INTRODUCTION

1.0 Introduction

Public procurement as an “overall process of acquiring goods, civil works and services which

includes all functions from the identification of needs, selection and solicitation of sources,

preparation and award of contract, and all phases of contract administration through the end

of a services’ contract or the useful life of an asset” (Rendon,, 2009). Additionally, in a world

where everything is connected, understanding the impact of our sourcing and buying

decisions is critical. Whilst the concept of ethical and responsible procurement is not new, the

increase in global sourcing opportunities has highlighted some serious issues in procurement

practices that must be addressed. Ethical and responsible procurement is now an economic

and reputational imperative, and in some contexts a legal requirement (CIPS, 2013).

At the moment Public Procurement process is characterized by conflict of interest, delays,

favouritism, abuse of office and corruption. The situation calls for adjustments aimed at

strengthening and improving the public procurement system (Fransiska, Kandambo and

Hamutenya, 2014). Reforms in public procurement were initiated to promote principles of

good governance and introduced a preference system to address socio-economic objectives

(Mubaiwa Chidya, (2020). The principles of ethics in the public procurement system with

emphasis on transparency, accountability, and value for money as characteristics of good

governance and make the procurement process ethical (Fransiska, Kandambo and

Hamutenya, 2014).

This study examined the relationship between ethical behaviors and contract management

where ethical behavior is the independent variable which is operationalized into integrity and

confidentiality whereas contract management is the dependent variable were measured in

1
terms of contract monitoring, supplier’s appraisal, contract compliance and contract

documentation. This chapter presented the background to the study, the statement of the

problem, the objectives of the study, research questions, research hypothesis, significance of

the study, justification of the study, conceptual framework of the study, scope of the study

and definition of key terms and concepts.

1.1 Background to the study

The background to the study was presented in four perspectives namely the historical

background, the theoretical background, conceptual background and the contextual

background.

1.1.1 Historical background

Contract management has been around since the early 19 th Century, when Cubitts in London

first began to offer the services of a general contractor (Spiers, 1983). Contracting was a

response to the increasing sophistication of construction technology during the industrial

revolution. As techniques and materials proliferated, co-ordination problems on building sites

became more complex. At the same time, the crafts and trades associated with construction

were becoming more formalized. A series of issues combined to make the idea of general

contracting a viable proposition; continuity of employment for operatives, economies of scale

in the use of plant, the development of the transport infrastructure, and so on. Since the

1970s, Privatization of contracting has been transforming.

In Uganda, there is little empirical evidence on the determinants and constraints to effective

contract management based on practitioners’ view point, despite the increasing drive towards

the demand for value for money. World Bank Institute, (2011); Schiel, (2007); Swinnery and

Netssins, (2007), all observe that contract management has become a megatrend in many

public entities, especially as a result of social accountability and increased demand of service

delivery by citizens. However, Bolton (2006) observed that contract management challenges

2
in both public and private organizations are endemic in any contractual relationship due to

lack of transparency and poor record keeping

Organizations today face turbulent and rapid changing external conditions that are translated

into a complex, multifaceted and interlinked stream of initiatives (Rendon, 2010). These are

affecting work and organizations design, resource allocation, systems and procedures in a

continuous attempt to improve performance. With these environmental changes, the public

sector has come under intense pressure to improve their operations and processes so as to

reduce its reliance on exchequer funding (Ntayi, 2009). Further, there is need to increase

transparency in operations and utilization of public resources, increase accountability for

results and to deliver services more efficiently and at affordable prices to the tax payer

thereby, forcing governments to institute reforms in the public sector. Existing experiences

and literature alludes to several challenges in contract management. Indeed, Ntayi (2010)

observes that millions of dollars get wasted in Uganda due to inefficient and ineffective

obstacles and challenges in the procurement process of which contract management is a part.

Although the author does not give the actual numerical figure of the millions lost, the recent

estimates by various agencies on corruption emanating from the public procurement function

points to the monetary loss from this activity. Meanwhile contract management continues to

receive less attention from policy makers and academics.

1.1.2 Theoretical background

The study adopted Integrative Social Contracts Theory (ISCT) by Donaldson and Dunfee

(1995). Integrative Social Contracts Theory is a theory of business ethics originated by

Thomas Donaldson and Thomas Dunfee, and is heavily influenced by the social contracts

theories of political philosophers such as Thomas Locke and John Rawls. The goal of

Integrative Social Contracts Theory is to provide a framework by which managerial and

business decisions can be made with respect to their impact on relevant communities, ethical

3
norms and possible universal moral standards.

Drawing on social contract theory, Integrative Social Contracts Theory posit that rational

global contractors-businesses, individuals and other economic actors enter into a hypothetical

contract determining standards and norms. However, instead of politics and governance, this

contract is concerned with normative rules influencing economic and business affairs. These

norms must not conflict too much with divergent cultural or religious norms. While the

hypothetical situation in this theory is that actors form this contract knowingly, in reality this

process is more likely to come about implicitly, as with social contracts theory, where

consent without coercion is the governing factor of whether or not a norm or value is

constitutive.

Major assumptions of the theory

First, it is assumed that the contractors are aware of, and concerned about, bounded moral

rationality.

In a similar way to bound economic rationality, it is assumed that individual moral agents

lack the information, time and emotional strength to make perfect judgments consistent with

their moral preferences.

ISCT assumes that the individual contractors would wish to retain the right to select their

own values to the maximum extent possible and that they would “desire to participate in

economic communities that reflect their personal and cultural values.”

The contractors would, in response to bounded moral rationality, recognize the need for a

community-based moral fabric as a necessary condition for both the generation of wealth and

for the maintenance of an environment conducive to a good and productive life.

Donaldson and Dunfee hypothesize that the global contractors would wish to set up an

arrangement the global social contract that recognizes the key role of human relationships

and groups (or “communities”) and that allows them the ability to confront the specific

4
context in which moral judgments must be made before they are required to develop in detail

the ethical rules for proper behavior.

1.1.3 Conceptual background

Concept Constructs Operationalization Reference

ETHICAL Confidentiality This is a duty of an individual to Gudgeon,

BEHAVIORS refrain from sharing information (2018).

with others, except with the Legeal

express consent of the other party. dictionary,

(Gudgeon, 2018). Confidentiality 2015)

refers to information which is

sensitive and meant to be kept

secret or private (Legeal

dictionary, 2015).

Value for money Value for money is the Nsiah et al.

achievement of the lowest whole (2016).

of life cost and clearly defined PPRA, (2017)

benefits, purpose of goods, works

and services procured at the right

time, within budget and scope,

and of the required quality (Nsiah

et al. (2016).

According to this study, Value for

Money will mean the

achievement of economy,

efficiency and effectiveness in

5
 any purchase made to meet the

procurement objectives and to

provide the greatest benefit

relative to the cost (PPRA, 2017).

Integrity This is the practice of being Oxford Living

honest and showing a consistent Dictionaries,

and uncompromising adherence (2019).

to strong moral and ethical

principles and value (Oxford

Living Dictionaries, 2019).

Integrity is regarded as the

honesty and truthfulness or

accuracy of one's actions and it

can stand in opposition to

hypocrisy

Contract Contract Contract management is the Weele (2014)

management monitoring: process of checks and controlling

adherence to a contract. Contract

management can be straight

forward or complex depending on

the size of the project (Garrett,

2007). According to van Weele

(2014), contract management is

about deciding the right type of

contract for the product, service

6
 or project to be delivered, and

about managing the contract after

negotiations closure.

Contract This means all documents which Conlin, (2019)

documentation form part of, constitute or

evidence the Contract, including

these Conditions and any

quotations, offers, Orders,

acknowledgements of order,

acceptances and specifications of

the Purchaser or Seller and any

documents referred to in any of

them (Conlin, 2019)

Supplier’s An assessment of a supplier’s Ndolo & Njagi

appraisal suitability and capability (2014)

to supply specific goods or

services, before awarding a

contract (Ndolo & Njagi 2014)

1.1.4 Contextual background

In Uganda, several public procurements have had procurement unethical behavior which has

greatly affected performance of the government projects. Due un ethical behavior in public

contract performance PPDA constituted a task team to closely monitor procurements in 15

7
High spend Entities (HSEs) drawn from the key sectors with an aim of improving the budget

absorption rate and ultimately result into better procurement outcomes (PPDA Digest 2015).

NWSC was formed by Decree No. 34 in 1972 to serve the urban areas of Kampala, Entebbe,

and Jinja. In 1995, NWSC was re-organized under the NWSC Statute. The company was

given more authority and autonomy and the mandate to operate and provide water and

sewerage services in areas entrusted to it, on a sound commercial and viable basis (National

Water and Sewerage Corporation, 2016). The contracting process at National Water and

Sewerage Cooperation involves focus on ethical issues. Corporate concerns over reputational

risk have spawned steady growth of diligence in researching and selecting trading partners.

Concerns over their ownership, their compliance with standards, their use and treatment of

labor, the source of their supplies and absence of bribery or corruption represent the type of

moral and ethical issues that now feature as part of the selection process at NWSC.

Procurement Systems in Uganda (PPDA, 2015), indicate significant variances between the

actual and indicative time frames in contract completion. Other issues are with regard to the

contractual payment periods while in other contracts some contract managers were not

appointed. Furthermore, the Auditor General report (2018) established that the key issues

affecting procurement of works include; the lack of adequate supervision by engineers, and

poor quality output and payment for no work undertaken or less work done than specified

under the contracts. Failure to carry out post-qualification evaluation during a review of the

corporation’s procurements, the study established that the entity entered into a frame work

contract for supply of pipes and fittings with a firm without conducting a post-qualification

evaluation for the best evaluated bidders, contrary to the evaluation criterion set in the bid

documents (OAG, 2018). According to PPDA report (2012), some suppliers failed to supply

some of the required items and others supplied after expiry of the contract. For example,

NWSC sought to procure for the dislodging of stabilization ponds for Fort portal area but the

8
user department did not formally appoint the contract manager for the contract as required by

Regulation 259 for PPDA. This may lead to shoddy work and delayed completion of projects,

which affects procurement performance. Another case (PPDA Report, 2011) in point is the

delayed delivery of the mechanical seals for Jinja area and tape drivers for upgrading the

main server as per the purchase order that expired before the goods were supplied and yet

there was no extension of contract sought from the contracts committee. This implied that the

PDE acted illegally to accept goods from the suppliers without valid contracts.

Apart from procurement issues, NWSC procurement performance has been questionable

(PPDA Report, 2020). There have been times when procurement requisitions are raised

earlier and contracts are signed after long periods, thus failure to meet the procurement

objectives. As a consequence, the procurement performance was at 26.7%, far below the

target of 60%. This was due to the fact that the User Department and PDU did not have

contract implementation plan and neither did it have contract management documents on the

file in place which would have been used to monitor the performance of the contracts (PPDA,

2011). This situation put the overall performance at 73.4%. The NWSC performance would

have been at least 98% had it not have been for the poor performance under contract

management component.

1.2 Statement of the problem

The government has put in place in various policies as indicated by Section 6 of the PPDA

Act 2003, the targets of the PPDA Authority incorporate; to guarantee the utilization of

competitive, fair, aggressive, transparent, nondiscriminatory and value for money

procurement and disposal guidelines and practices. Section 37(6) of the PPDA Act 2003

requires all individuals from the Evaluation Committee to sign the Code of Ethics made

under the regulation made under this Act, proclaiming that they don't have any conflict of

interest in the procurement prerequisite.

9
As indicated by section 43 of PPDA Act 2003, all public procurement and disposal should be

led as per the accompanying standards: transparency, fairness and accountability, non-

discrimination; confidentiality; maximization of competition and ensuring value for money;

promotion of ethics economy and efficiency (PPDA Annual Report, 2015).

Despite the above efforts, The Office of the Auditor General (2018) cited dubious payments,

mismanagement of contracts or poor data keeping within National Water and Sewerage

Cooperation which led to delays in completion date for the works and delivery of sub-

standard services to the public in terms of rampant water leakages and sewage spillage. The

auditor General also cited that for most contracts, there was no appointment of contract

managers and no contract monitoring or supplier appraisal reports prepared (PPDA Annual

Report, 2015). This cast doubts on contract management compliance which may hamper

service delivery (Office of the Auditor General, 2018). If this situation is not solved, the

service delivery at National Water and Sewerage Corporation is to be impeded. It’s upon this

background that the researcher examined the relationship between ethical behaviors and

contract management at National Water and Sewerage Cooperation.

1.3 Objectives of the study

1.3.1 General objective of the study

To examine the impact of ethical behaviors on contract management in National Water and

Sewerage Cooperation

1.3.2 Specific objectives of the study

i. To explore how confidentiality influences contract management at National Water

and Sewerage Cooperation

ii. To assess how the value for money influences contract management at National Water

and Sewerage Cooperation

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 iii. To explore how integrity influences contract management at National Water and

Sewerage Cooperation

1.4 Research questions

i. What is the impact of confidentiality on contract management at National Water and

Sewerage Cooperation?

ii. What is the impact of value for money on contract management at National Water and

Sewerage Cooperation?

iii. How does integrity influence contract management at National Water and Sewerage

Cooperation?

1.6 Significance of the study

This study may provide relevant information to the top management of National Water and

Sewerage Cooperation about the relationship between ethical behaviors and contract

management which can be used as a reference point by top management when formulating

policies with regards to ethics and contract management.

This study may add to the available body of knowledge the relationship between ethical

behaviors and contract management which can be used as a literature review point for other

researchers. This study would also suggest further areas for studies to future researchers who

would like to conduct a similar study.

The study findings would be helpful to policy makers and advocates in public entities to

enhance ethical decisions in contract performance in order to achieve effectiveness and

efficiency in the entire contract management. The strengths and weakness that will be

identified during the study would guide policymakers and implementers on how contract

management should be handled in order to archive the intended objectives.

11
1.7 Justification of the study

Few articles have rigorously analyzed and empirically tested the factors that actually affect a

government agency’s decision to manage contracts. Within the relatively scarce empirical

evidence on contract management (Davison and Sebastian, 2011), there is little information

on the relationship between ethical behaviors and contract management specific to public

procurement Uganda inclusive. Thus, this study seeks to provide relevant information about

the relationship between ethical behavior and contract management considering a case of

NWSC so as to provide suitable recommendations on how contract management can be

improved through ethical behavior.

In the world of procurement, contract management is one of the key aspects and has a major

impact on the successful execution of a project. To a large extent, quality, cost, and timely

completion of a project depend on the management of a contract (PPDA, 2013). The

application of sound policies and practices, characterized by equitable, fair, and open

procedures, is indispensable, not only for creating dependable and stable markets that are able

to attract efficient contractors and suppliers, but also to safeguard the principle of

accountability and the cost-effective use of public funds. The realization that with managing

supplies strategically, firms can save huge amounts of money led firms to begin to invest in

this area of management (Cousins and Spekman, 2003).

1.8 Conceptual framework of the study

Conceptual framework illustrating the relationship between ethical behavior and contract

management

Ethical Behaviors (DV)

Confidentiality
 Use of locked cabinets
 Lockable tender room
Contract Management (IV)
 Maintaining a document
register

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 Value for money  Contract monitoring
 Efficiency  Supplier’s appraisal
 effectiveness  Contract documentation

Integrity
 Honesty
 Moral principals

Source; Adopted from Bryce (2008), Wins (2018) and modified by the researcher

Figure 1.1: The relationship between ethical behavior and contract management

Figure 1 above illustrate a conceptual framework showing the relationship between ethical

behavior and contract management where ethical behavior is the independent variable which

is operationalized into confidentiality, value for money and integrity whereas the dependent

variable is contract management which will be measured in terms of contract monitoring,

supplier’s appraisal, contract changes, contract compliance and contract documentation.

1.9 Scope of the study

This section is presented in three perspectives namely the geographical scope, the content

scope and the time scope.

1.9.1 Geographical scope

This study was conducted at the head quarter of National Water and Sewerage Cooperation in

Kampala located at plot 3 Nakasero Road, on Nakasero Hill, opposite Rwenzori House.

Kampala is the capital city of Uganda bordered by Wakiso District, Mukono District, Mpigi

District, Buikwe District and Luweero District. Thus, this study seeks to provide relevant

information about the relationship between ethical behavior and contract management

considering a case of NWSC so as to provide suitable recommendations on how contract

management can be improved through ethical behavior.

13
1.9.2 Content scope

This study focused on examining the relationship between ethical behaviors and contract

management in National Water and Sewerage Cooperation and was limited to examining the

relationship between: integrity and contract management; confidentiality and contract

management to effectively capture data relating to ethical behavior and contract performance.

1.9.3 Time scope

This study considered literature within the period of 2010 to 2021; this is the period within

which National Water and Sewerage Cooperation has registered several cases of contract

mismanagement as indicated by Auditor General Report, (2018).

1.10 Operationalization of key terms and concepts

Ethical behavior: acting in ways consistent with what society and individuals typically think

are good values.

Integrity: refers to honesty and moral principles exhibited during contracting and contract

management.

Confidentiality: refer to limiting access to information, terms and conditions and

commercial information.

Efficiency: Efficiency describes the extent to which time, effort or cost is well used for the

intended task or purpose. It is used with the specific purpose of relaying the capability of a

specific application of effort to produce a specific outcome effectively with a minimum

amount or quantity of waste, expense, or unnecessary effort.

Effectiveness: Effectiveness is the capability of producing a desired result. When something

is deemed effective, it means it has an intended or expected outcome, or produces a deep,

vivid impression.

Efficacy: Efficacy refers to the ability to produce a desired or intended effect in the long

term.

14
Value for money (VfM) is defined as the optimum combination of whole of life costs and

quality of the good or service to meet the user’s requirement (Moralles et al. 2015). Value for

money (VFM) is not about achieving the lowest price. It is about achieving the optimum

combination of whole life costs and quality.

Traditionally VfM was thought of as getting the right quality, in the right quantity, at the right

time, from the right supplier at the right price. This concept has been updated to obtaining

better quality of goods or services in more suitable quantities, just in time when needed, from

better suppliers at prices that continue to improve (World Bank Report, 2013).

15
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter presented the review of relevant theory and literature on the influence of ethical

behaviors and contract management at national water and sewerage cooperation The review

of literature is presented along the three study objectives of determining the effect of

confidentiality on contract management, to assess the effect of value for money on contract

management and to explore the effect of effect of integrity on contract management at

National Water and Sewerage Corporation.

2.2 Theoretical review

This examination was guided by Integrative Social Contracts Theory (ISCT) by Donaldson

and Dunfee (1995). The hypothesis incorporates two unmistakable sorts of agreements. The

first is a normative and hypothetical contract among financial members, a social contract like

the established contractarianism hypotheses in logic and political economy (Peterson et al.,

2015). Donaldson and Dunfee (1995) noticed that general contract, thus, characterizes the

normative ground guidelines for making the second sort of agreement. The second is an

existing (extant) implicit contract that can happen among individuals from particular groups,

including firms, divisions inside firms, casual subgroups inside offices, national economic

organizations, universal monetary associations, proficient affiliations, enterprises, et cetera

(Peterson et al., 2015).

16
A hypothetical macro social contract gives the general system and is a heuristic device

tantamount to the great social contracts (Peterson et al., 2015). With regards to these thinkers,

(Peterson et al., 2015) referring to Donaldson and Dunfee (1995) noticed the need to see

worldwide mankind as trying to outline an authoritative, however unwritten understanding

sets up the parameters for morals in financial connections. Inside this structure are genuine,

community-based contracts. These contextual, all the more barely endorsed social contracts

mirror the standards utilized by particular groups in assessing business morals. Consequently,

ISCT (under specific conditions) gives normative status to the standards or 'principles of

conduct' that administer regular day to day existence in many communities (Peterson et al.,

2015).

The second presumption is that the global contractual workers would, because of limited

good objectivity, perceive the requirement for a community good texture as an essential

condition for both the age of riches and for the upkeep of a domain helpful for a decent and

gainful life (Little, 2019). Without this ethical texture, which is the reason for the worldwide

tradition, there is the danger of social denigration into Hobbes' "warre" of man against man

(Scholtz et al., 2019). In light of these center suppositions, Donaldson and Dunfee conjecture

that the global contractual workers would wish to set up a plan that perceives the key part of

human connections and gatherings (or "groups") and that permits them the capacity to go up

against the particular setting in which moral judgments must be made before they are

required to create in detail the moral standards for legitimate conduct. This plan would be a

coupling macro social contract, appropriate to all based on their expected agree to these game

plans. Donaldson and Dunfee's (1994) assert that the global macro social contract inferred is

the main sane answer for the requirement for an ethical texture even with limited good

discernment (Peterson et al., 2015).

Critique of the theory

17
Some moral philosophers are critical of social contract theory. They note that no such

contracts actually exist and, as hypothetical contracts, do not provide for meaningful consent

and agreement.

Hume (1711-76), for example, uses the analogy of the press-ganged seaman, asked when at

sea to “consent” to service.

As Becker (1992) puts it, in reference to Hume's analogy, “when we come to moral

consciousness, the only viable option we have is to stay on board at least for quite some

time.”

2.3 Review of related literature

2.3.1 Confidentiality and contract management

Maintaining confidentiality in a procurement process ensures success of the whole procuring

procedures so confidentiality is a key arm of ethical procurement practices Entities should

consider whether the nature of the procurement may raise confidentiality issues for potential

suppliers. Where procurement may give rise to specific claims for confidentiality by potential

suppliers, the planning of the procurement should ensure confidentiality by determining

whether the information would need to be provided to a third party during a shift to a new

supplier; and clearly informing potential suppliers, for example in request documentation, of

the entity’s position in relation to supplier claims for confidentiality (Crossman and Ashley,

2018), Hamutenya and Mensah, (2015) notes that in today’s increasingly litigious and highly

competitive workplace, confidentiality is important for a host of reasons and failure to

properly secure and protect confidential business information can lead to the loss of business

clients and contract termination. The study about ethical behaviors and contract management

at National Water and Sewerage Cooperation will help to cover these gaps.

Hamutenya and Mensah, (2015) also urges that in the wrong hands, confidential information

can be misused to commit illegal activity (for example, fraud or discrimination), which can in

18
turn result in costly lawsuits for the contractor. The disclosure of sensitive contract

information can lead to a loss of trust, confidence and loyalty which leads to termination of

contracts.

Wins (2018) asserts that confidential information should be shared only when needed and

with the persons who are liable to get the same as part of their profession. Thus, confidential

information should be carefully shared with the internal and external world otherwise it can

hamper the business adversely in terms of discrediting the institution and termination of

contract. Maintaining confidentiality in a procurement process ensures success of the whole

procuring procedures thus confidentiality is a fundamental arm of ethical procurement

practice. Entities should consider whether the nature of the procurement may raise

confidentiality issues for potential suppliers. Such issues can arise in a number of ways

including where: potential suppliers include commercially sensitive information as part of a

submission; the preferred supplier sought to protect commercially sensitive information

contained in the contract; or the preferred supplier sought to protect commercially sensitive

information during and after the performance of the contract, (Wins, 2018). The study about

ethical behaviors and contract management at National Water and Sewerage Cooperation will

help to cover these gaps.

The findings of a study carried out by Simiyu et al. (2018) showed that there existed a

positive and statistically significant relationship between confidentiality ethical practice and

contract management performance among G4s firms in Western Kenya. The researchers

concluded that confidentiality practices enhance contract management (Simiyu et al., 2018).

In addition, Syengo (2015) found out that ethical practices affect contract management to a

great extent. Disclosing of company information remains a big challenge to procurement

functions due the sensitivity if not well handled it may create a competitive advantage to

19
competitors and ineffectiveness in contracting. The study about ethical behaviors and contract

management at National Water and Sewerage Cooperation will help to cover these gaps.

In addition, maintaining confidentiality in a procurement process ensures success of the

whole procurement procedures thus confidentiality is a key ethical procurement practice

(Kelman, 2009) as it promote effective contracts in public sector procurement. It also aids

formation of long term relationships which help in reducing delivery uncertainties and help

attain successful quality products (Mwangi and Kwasira, 2015). In particular Kenneth (2016)

averred that sensitive commercial information must not be shared with other suppliers as it

will disrepute the company leading to poor procurement performance. This is particularly

important when an output-based specification is being developed (Parsons, 2011). Although

it is acceptable business practice to share ideas amongst suppliers in order to develop the

most appropriate solution, suppliers' confidence should be honored in order to maintain

procurement effectiveness. The study about ethical behaviors and contract management at

National Water and Sewerage Cooperation will help to cover these gaps.

Furthermore, Sengbeh (2015) researched about ethical procurement practices and supply

chain performance of the Kenyan energy sector. The study adopted a descriptive research

design. Findings of the study established that transparency; accountability and confidentiality

procurement practices had a significant influence on the firms’ supply chain performance in

the energy sector. It was thus clear from the descriptive analysis that integrity practices in

procurement had a significant influence on the performance of firms in the energy sector. The

study findings will be used by management to maintain the integrity of a brand, ensure

business continuity and manage operational costs. The study will adopt transparency

procurement practices, accountability practices in procurement, integrity practices in

procurement, confidentiality practices in procurement and procurement professionalism

practices so as to effectively and efficiently improve their supply chain performance. The

20
study about ethical behaviors and contract management at National Water and Sewerage

Cooperation will help to cover these gaps.

Where procurement may give rise to specific claims for confidentiality by potential suppliers,

the planning of the procurement should take account of this by: Managing the extent to which

potential suppliers are required to submit commercially sensitive information in their

submissions; assessing whether any potential claims to confidentiality would be consistent

with the requirements of the particular procurement. For example, if an entity is engaging a

consultant to write a report that the entity intends to publish or use in other ways, a potential

claim for confidentiality by a supplier to protect intellectual property in relation to the report

would be inconsistent with the entity’s requirements for a published work; assessing the

longer-term implications of protecting information as confidential, (Parsons, 2018).

2.3.2 Value for money and contract management

Value for money (VfM) is defined as the optimum combination of whole of life costs and

quality of the good or service to meet the user’s requirement (Moralles et al. 2015). Value for

money (VFM) is not about achieving the lowest price. It is about achieving the optimum

combination of whole life costs and quality. Traditionally VfM was thought of as getting the

right quality, in the right quantity, at the right time, from the right supplier at the right price.

This concept has been updated to obtaining better quality of goods or services in more

suitable quantities, just in time when needed, from better suppliers at prices that continue to

improve (World Bank Report, 2013). It is also often described in terms of the ‘three Es’

economy, efficiency and effectiveness: economy minimizing the cost of resources for an

activity (‘doing things at a low price’); efficiency performing tasks with reasonable effort

(‘doing things the right way’); effectiveness the extent to which objectives are met (‘doing

the right things’). Value for money is derived from the optimal balance of benefits and costs

on the basis of total cost of ownership. As such, value for money does not necessarily mean

21
that a tender must be awarded to the lowest tenderer (Civil Service College, 2010). Value for

money is a term generally used to describe an explicit commitment to ensuring the best

results possible are obtained from the money spent. The study about ethical behaviors and

contract management at National Water and Sewerage Cooperation will help to cover these

gaps.

Kutonsi and Eya, (2015) in their study investigated the effect of procurement packaging on

value for money in selected manufacturing companies in Ghana. The study used descriptive

survey design and a sample size of 346 respondents among whom were technical and

supervisory staff. The study used regression analysis and found a significant effect of

procurement packaging on value for money. The study found a significant effect when

procurement requirements are grouped within a procurement category for the purpose of

acquiring them under a single contract, on value for money; however there was no significant

effect of dividing procurement requirements into multiple lots on value for money. However,

Amade et al., (2016) in his study on the importance of procurement packaging on value for

money in the hospitality sector in Nigeria revealed that there was no significant effect. The

study used survey design and a population size of 208 respondents who were mostly

employees of the selected companies. Data analysis was done using regression analysis. The

study established that procurement packaging using multiple contractors was more important

in achieving value for money than using a single contractor. This was because multiple

contractors were found to reduce unnecessary resource waste compared to single contractor.

Furthermore, Chegugu and Yusuf (2017) carried out a study on the effect of procurement

methods on value for money in manufacturing companies in South Africa using descriptive

survey and a study population of 384 respondents. The procurement methods commonly used

by the selected manufacturing companies included open tendering, restricted tendering,

request for proposal and two-stage tendering. The study found that only open tendering, and

22
request for proposal had significant effect on value for money. However, restricted tendering

and two-stage tendering had no significant effect on value for money. The study concluded

that selection of appropriate procurement methods leads to achievement of value for money.

The study about ethical behaviors and contract management at National Water and Sewerage

Cooperation will help to cover these gaps.

Naoum and Egbu (2016) argue that supply scheduling brings value for money if scheduling is

followed correctly until the end of the decade. The author argues that proper scheduling saves

time and resources and ensures that value for money is respected and well understood.

Delays in the process of requesting information; delays in the process of the Procurement

Review Committee; delayed evaluation / approval of the use of a justice monitor; delayed

approval of the procurement plan or contract planning and prior approval; etc. Lead to the

waste of a lot of resources and the bad outcome of the output that directly affect the value for

money. This is because, a project that should have taken two years at a cost of $ 2 million

will now take 3 years at a cost of $ 3.5 million. In his study, Rolfstam (2015) found that

scheduling supplies is very important in enhancing value for money because it provides a list

of all requirements that the entity will obtain over a period of time. From this, the

procurement schedules are developed and timetables are developed to implement each step in

the procurement process until the contract is awarded and the requirements are met.

Scheduling allows the consolidation of similar requirements under a single contract or the

division of a condition into several packages of contracts for value for money.

Mchopa et al. (2014) conducted a study on contracts management and value for money in

public procurement of works in Muccobs Company. The study was undertaken by using a

case study design whereby purposive and random sampling techniques were used to pick a

sample of 60 respondents while questionnaires, interviews and documentary review were

used to collect data. The findings showed that contracts contained all the necessary required

23
terms and conditions to guarantee value for money and it was established that contracts were

effectively executed and managed adequately when compared to the terms. Also, it was

determined that management of time, quality and costs resulted into effective contract

management which contributes highly to the achievement of value for money. However, in

some contracts there were signs of ineffectiveness that include variations, inadequate use of

defect liability period and extensions of time which jeopardized the achievement of value for

money. Therefore, it was concluded that effective management of procurement contracts was

essential for achievement of value for money (Mchopa et al. 2014). The study about ethical

behaviors and contract management at National Water and Sewerage Cooperation will help to

cover these gaps.

The main data collection instrument employed in this study is the structured questionnaire.

The study employed the purposive and stratified sampling technique. The finding revealed

that inadequate skilled personnel in the procurement sector and inadequate measures for

monitoring and evaluation of the procurement policy to ensure VFM are major challenges in

the public procurement. It was recommended that to ensure value for money, management

support for VFM programme at all levels of administration should be encouraged and

procurement regulatory authorities in collaboration with public entities (Polytechnics) must

ensure compliance through rigorous monitoring and evaluation of the procurement policy to

ensure VFM (Nsiah-Asare & Prempeh, 2016).

Nshimyumuremyi, (2018) investigated the effect of procurement planning on value for

money Among Selected Districts in Southern Province, Rwanda. The study used descriptive

survey design. The sample size of 129 respondents was determined using Slovene’s formula.

The main research instrument was questionnaires. Data analysis was done using frequency

and percentage tables, mean and standard deviations, and linear regression analysis. The

study revealed that procurement packaging significantly affects the value for money.

24
Furthermore, the study revealed that procurement method significantly affects value for

money. Similarly, the study revealed that procurement scheduling significantly affect value

for money. The study concluded procurement planning affects value for money. The study

made the following recommendations: the need for procurement officers to use good

procurement packaging where they allow bidders to submit bids for one or multiple lots; the

need for procurement officers to embrace all procurement methods depending on the

circumstance and the nature of the project so as to be as comprehensive as possible since each

procurement method has its own advantage; the need for procurement officers to involve

stakeholders and superiors in project scheduling so as to streamline any inconsistency.

2.3.3 Integrity and accountability and contract management

According to Ayoyi and Mukoswa (2015), integrity leads to trust, which leads to lasting and

profitable relationships and organizations that have integrity get repeat business and

favorable supplier contract terms. Conversely, without integrity, a person or company won’t

be able to build the sustainable business relationships that are essential to long-term success.

The researchers concluded that integrity in contract management is critical to building long-

term, profitable relationships with partners and employees (Ayoyi and Mukoswa, 2015). The

findings of a survey among procurement practitioners in central governments confirmed that

transparency and accountability are key for enhancing integrity throughout the whole

procurement cycle, including in needs assessment and contract management (OECD, 2014).

According to OECD (2016), integrity in terms of transparency such as public disclosure of

information around public procurement processes contributes to identifying and decreasing

cases of contract mismanagement in form of fraud and corruption.

Wins (2018) asserts that any compromise on the integrity has a negative impact on the overall

contract management process. Failing to abide to ethical practices can lead to immoral and

illegal practices such as bribery, favoritism and illegal sourcing (Wins, 2018). The World

25
Bank (2010) also indicated that many countries are yet to develop procedural frameworks to

tackle the integrity issues in procurement process hence affecting contract compliance in

most developing countries. The study about ethical behaviors and contract management at

National Water and Sewerage Cooperation will help to cover these gaps.

According to Jorge Lynch (2013), in public procurement, the principle of integrity is two-

fold. There is the integrity of the procurement process, and also the integrity of public

procurement practitioners (the principal guardians of the process). Integrity translates to

reliability. Bidders and all other stakeholders need to have assurance that they can rely on any

information disseminated by the procurement entity, formally or informally. The integrity of

the procurement process assures confidence in the public procurement process. When

solicitation documents are issued by the procurement entity, the information provided should

be reliable and free of uncertainty or predisposition. When reviewing solicitation documents,

prospective bidders should be able to determine their interest and qualifications for the

assignment. They also must be in a position to assess the need for association with other

bidders, and the type of association that they would be willing to engage in given their

qualifications and the requirements of the assignment in question. Bidders should also have a

clear understanding of the requirement, and know how they will be evaluated. So the

evaluation and selection criteria should be clearly expressed in the solicitation document.

These criteria should remain unchanged, unless there is a need to modify them. If

modification is required, the solicitation document should be amended (by addendum),

published and made available to all prospective bidders (Naoum, 2016).

Practitioners working for the various procurement entities, and other government officials

involved in the public procurement process, must strive for internal (personal) and external

integrity (ideally there shouldn’t be any contradiction between the two). Public procurement

26
practitioners should be perceived, at all times, as honest, trustworthy, responsible and

reliable. They must always have the “big picture” (purpose of the procurement requirement)

in mind and their philosophy must be that of public servants, in the true sense of the word.

Public procurement practitioners must ensure that they responsibly manage the public

procurement process within the mandate of the public procurement legal framework and in

line with public procurement principles (Jorge Lynch, 2013).

Integrity and transparency of a public procurement system is said to rely on a number of

control mechanisms. These include an effective control and audit system, a comprehensive

information sharing system that enables effective ethics and anti-corruption measures, civil

society and other stakeholders to conduct social audit (Matheo, 2015). Furthermore, it is

posited that an appropriate regulatory system is required in order to enhance transparency and

nondiscrimination in the application of resources in all public entities in Zimbabwe (Pope,

2010). A very important objective of many public procurement systems and of public

procurement regulation is to ensure integrity in the system (Khan and Burnes, 2007).

Jeppesen (2010) added that this refers to the idea that procurement should be carried out

without any influence of corruption. The principle of integrity also implies truthfulness

morality, honesty, fair dealing, openness and faithfulness. Information contains omissions

that are material. Integrity in the context of public procurement implies that procurement

procedures are transparent and promote fair and equal treatment for bidders (Farrell and

Farrell, 2010). Segal and Summers (2015) also averred that public resources linked to public

procurement are used in accordance with intended purposes. The study about ethical

behaviors and contract management at National Water and Sewerage Cooperation will help to

cover these gaps.

Integrity in the context of public procurement implies that procurement procedures are

transparent and promote fair and equal treatment for bidders. Public resources linked to

27
public procurement are used in accordance with intended purposes. UNCITRAL rules on

request for proposals also provide for use of the kind of two-envelope procedure found also

in the principal method for procurement of services in the selection procedure with

simultaneous negotiations (Article 43 of the Model Law), (Robert, 2018). Thus, for the

purpose of evaluating the final proposals, Article 48(3) provides that the effectiveness of the

proposal is to be evaluated separately from the price, and that the price is to be considered

only after the completion of the evaluation. The reasons for such a two-envelope procedure

are the same as with the principal method for procurement of services, namely to ensure that

appropriate weight is given to the different criteria and to prevent the deliberate abuse of

discretion. A very important objective of many public procurement systems and of public

procurement regulation is to ensure integrity in the system. This refers, first, to the idea that

procurement should be carried out without any influence of corruption. Corruption can cover

various types of practice.

2.4 Summary of literature

From the literature reviewed above, ethical behaviors in terms of confidentiality of contract

information and integrity greatly affect contract management as noted by the different

scholars. However, there is no empirical evidence that shows the relationship between

integrity and contract management, confidentiality and contract management. Thus, this

study seeks to add to the available body of knowledge empirical evidence about the

relationship between ethical behaviors in terms of integrity and confidentiality of information

on contract management considering a case of National Water and Sewerage Cooperation.

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 CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter presented the research design, study population, sample size and sampling

procedures that were used. It also presented the methods and instruments of data collection,

validity and reliability of the instruments, procedure for data collection, data analysis, and

measurement of variables and finally the measurement of variables and ethical consideration.

3.2 Research design

A research design refers to the overall strategy that the researcher chooses to integrate the

different components of a study in a coherent and logical way, thereby, ensuring that one can

effectively address the research problem (Smith, 2010); it constitutes the blueprint for the

collection, measurement, and analysis of data (Creswell, 2003). For this study, a qualitative

research approach was undertaken. Qualitative data was used because it can allow the

researcher to find out what is happening on the ground (Majid, 2018). Qualitative research

explains in details the perspective, perceptions, attitudes and observations of respondents

towards the problem under investigation (Sharma, 2017). Qualitative research was

appropriate for this study due to the nature of the research questions and the focus of the

study. The nature of the questions used were open ended in order to enable participants

express their views freely.

This study adopted a case study qualitative design. The case that was studied was National

Water and Sewerage Corporation. A case study design is a research approach which studies a

29
certain area where there is problem with the researcher’s interest. A case study design was

used in order to investigate the problem from a particular small area. In this case, the problem

in this entity could be investigated easily. This entity was chosen due various procurement

contracts carried out that involve ethical behaviors.

3.3 Study Population

The study was carried out at National Water and Sewerage Corporation. The study population

2 departmental heads and 10 procurement officers. The reason for this is that such groups

influence policy decision making and implementation of programs.

3.4 Sampling Techniques and Procedure

Sampling is a procedure followed while selecting participants for a certain study (Kothari,

1999). This study used purposive sampling. Purposive sampling is when a researcher chooses

specific people within the population to use for a particular study project based on the

characteristics of the participant (Rahi, 2017). Therefore, purposive sampling was used in

selecting the required participants by choosing as per the necessities of the study. Six (6) of

the employees at National Water and Sewerage Corporation were selected purposively.

The researcher used purposive sampling because it saves time as one only focused on

respondents that are believed to have the information required about the study variables.

3.5 Data collection methods

3.5.1 Interview method

The process of interviewing involved a semi-structured interview. This is a meeting in which

the interviewer does not strictly follow a formalized list of questions. Instead, they will ask

more open-ended questions, allowing for a discussion with the interviewee rather than a

straightforward question and answer format (Guba and Lincoln, 1999). The nature of the

questions used were open ended in order to enable participants express their views freely.

30
Interviewing was used in order to collect the direct views of the participants verbally. The

process of interviews conducted on personal basis meaning every participant was met on after

making an appointment with him or her. This was useful in making the participants to feel

free to share information since privacy was guaranteed.

3.6 Data collection instruments

3.6.1 Interview Guide

Face to face interviews were used to collect data from six National Water and Sewerage

Corporation employees using an interview guide. This instrument was used since it was

appropriate in seeking for in-depth information from respondents through probing and

prompting. The interview guide is a tool that contains key themes or questions that the

interview is supposed to focus on. The interview guide helped researchers to stick to the

objectives of the research without asking questions that are not in line with the study and

ensuring that all key issues about the study are responded to by respondents during interviews

(Sarantakos, 2005). The items on the interview guide were developed based on the

dimensions under the independent variable and those under the dependent variable. The items

on the interview guide were based on the three research questions of the study.

3.7 Quality control of the instrument

Qualitative data was collected basing on trustworthiness between the researcher and the

respondents to ensure credibility of the study findings. Therefore, the researcher explained

extensively the purpose of the study to the respondents as its specific purpose was to extract

more knowledge on how ethical behaviors affect contract management and that information

provided was only to be used for academic purposes and be treated with a lot of

confidentiality.

3.8 Procedure of data collection

31
The researcher developed a research proposal with guidance from my supervisors. After,

designed tools for data collection and for this case involved open ended questions. The

researcher made a pretest of the tools at National Water and Sewerage Corporation and

collections were made. After the approval by the supervisors, an introduction letter from

National Water and Sewerage Corporation of Management Science, Uganda Management

Institute was got. The purpose of the letter was to introduce the researcher to the area of

study. After, the researcher proceeded to seek permission from administration of National

Water and Sewerage Corporation. After getting approval, the researcher met the targeted

participants who gave their responses after being informed on the objectives of the study and

accept to participate in the study.

Thereafter, schedules for interviews were made. The interviews were held at National Water

and Sewerage Corporation premises in Bugolobi because the participants felt that this venue

was very convenient to them. By average, one hour and 30 minutes were used to engage each

participant in the interview process. A period of one week was used in conducting interviews.

After data collection, the researcher analyzed the data qualitatively and compiled a report for

assessment by the supervisors.

3.9 Data Analysis

Data Analysis is the process of systematically applying statistical and/or logical techniques to

describe and illustrate, condense and recap, and evaluate data (Marsh et al, 2020). An

essential component of ensuring data integrity is the accurate and appropriate analysis of

research findings. Qualitative data was analyzed using thematic method. Thematic analysis

involved the presentation of raw verbal responses as recoded from the field. The researcher

polished the information to effectively meet the set requirements for the case of academic

purpose. Data from the interviews was arranged in form of themes and presented in form of

quotations. Meaning full themes were generated and be discussed study by study.

32
3.10 Ethical Considerations

Fleming & Zegwaard (2018) defines ethics as the standards of behavior that guides a

researcher's conduct regarding the rights of people who are the subject of the research work

or get affected by it.

For this study, the researcher first sought for consent of the respondents. This was done by

designing a consent form for respondents. Respondents participated in the study on their own

accord after being informed on the purpose of the study. While conducting the study, the

researcher ensured high level of confidentiality while collecting the data and after.

Anonymity: The participants remain anonymous throughout the study and even to the

researchers themselves to guarantee privacy. The respondent informed that indeed their

names were not required (Mugenda & Mugenda, 2013). Last but not least, all sources of

literature were acknowledged throughout the study.

33
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter presented the data and the interpretation of the findings according to the

objectives of the study which included; to explore how confidentiality influences contract

management at National Water and Sewerage Cooperation, to assess how the value for

money influences contract management at National Water and Sewerage Cooperation and to

explore how integrity influences contract management at National Water and Sewerage

Cooperation. It also presents the demographic information of study participants.

4.2 Presentation of findings

4.2.1 Demographic characteristics of the participants

A sample comprised of six participants who were all workers of National Water and

Sewerage Cooperation. Out of the six participants, two were female and four were male. This

means that all participants of different gender were included in the study hence the data

collected was balancing.

Respondent A:

This one was a female participant aged 24 years with a diploma, married, with two years of

working experience with National Water and Sewerage Cooperation.

Respondent B:

Respondent B was a male participant, 30 years of age, with a Bachelor’s degree in

Management from Kyambogo University. The participant was also married, with over five

years of experience with National Water and Sewerage Cooperation. It can therefore be

deduced that the information collected from the respondents revealed a significant picture of

procurement ethics and contract performance in the organization since most of the employees

had enough experience in the organization.

34
Respondent C:

This one was a female participant 40 years of age with over 15 years of experience. The

participant had a Master’s degree Public Procurement and Management from Uganda

management institute and also married. This meant that she had enough knowledge to

provide relevant information on ethical behaviors and contract management at National

Water and Sewerage Cooperation.

Respondent D:

Respondent D was a male participant 37 years of age with a Master’s Degree in Procurement.

The participant was married with over 10 years of working with National Water and

Sewerage Cooperation as the manager. These findings were found eminent to the study as

respondents in different age groups had varying experiences on the relationship between

procurement ethics and contract performance in the public sector. This is because mature

people signified a higher level of seniority and experience in contract management.

Respondent E:

This was participant number five. He was male participant of 30 yeas married with a

Bachelor’s degree in Accounting and Finance. He had six years of working experience with

National Water and Sewerage Cooperation. It can therefore be deduced that the information

collected from the respondents revealed a significant picture of procurement ethics and

contract performance in the organization since most of the employees had enough experience

in the organization.

Respondent F:

This was the sixth participant and was male of 28 years and not married. The participant had

a Bachelor’s Degree in Economics with five years of working experience. The educational

attainment of institutions’ employees was an important indicator of their knowledge and

35
attitude about the relationship between procurement ethics and contract performance in the

organization.

4.3 Confidentiality and contract management

This was the first objective of the study. The researcher was interested in identifying the

principles of confidentiality used by employee at National Water and Sewerage Corporation.

Participants were asked a variety of questions on this matter. According to the responses

given, to a greater extent employees used confidentiality principles in contract management.

These included use of locked cabinets, lockable tender room and maintaining a document

register as indicated below thematically;

Use of locked cabinets

This was highly practiced by employee at National Water and Sewerage Corporation. This

was mentioned by majority of the employees in the interviews conducted at the entity.

One of the employees was quoted saying;

One of the most important elements in National Water and Sewerage Corporation is

confidentiality because it is the key drive to build and develop trust and it allows for

the free flow of information between the client and workers and the information being

under lock (Respondent D).

From the quotation above, it implies that confidentiality entails that information access on all

suppliers’ documents which includes quotations, tender documents, bids and prices must not

be disclosed to third parties without owner’s consent and this act improved trust between

suppliers and buyers in local authorities and buyers often get trade discounts ranging from 10

to 25% in return. Confidentiality also impact on the overall purchasing transactional costs and

reduced supply chain risk of the proposals, thereby affecting the local authorities’

procurement performance. Effective procurement contracts are achieved as a result of

36
keeping suppliers’ information confidential and this enhances trust between buyers and the

supplier.

Lockable tender room

This was highly practiced by employee at National Water and Sewerage Corporation. This

was mentioned by majority of the employees in the interviews conducted at the entity.

One of the employees was quoted saying;

All tenders should be kept in a safe and secure environment to ensure that the

confidentiality of tenders and requests to participate are preserved. Confidential

information may include technical or trade secrets. The principle of confidentiality

obligates the Contracting Authority not to examine the content of requests to

participate, and of tenders, before the deadline for their submission has expired

(Respondent C).

The above quotation implies that confidentiality also impact on the overall purchasing

transactional costs and reduced supply chain risk of the proposals, thereby affecting the local

authorities’ procurement performance. Effective procurement contracts are achieved as a

result of keeping suppliers’ information confidential and this enhances trust between buyers

and the supplier.

Additionally, another key informant noted that:

Confidentiality of data contracting entity shall safeguard as confidential all data on

tenderers contained in tenders, which are defined as confidential by the regulation on

commercial companies or any other regulation, the contracting entity may refuse to

deliver such information that would mean infringement of the confidentiality of data

received in tenders and contracting entity shall withhold as a trade secret the names

37
 of tenderers and the submitted tenders until the date fixed for the opening of tenders.

(Respondent B).

Maintaining a document register

This was highly practiced by employee at National Water and Sewerage Corporation. This

was mentioned by majority of the employees in the interviews conducted at National Water

and Sewerage Corporation.

4.4 Value for money and contract management

This was the second objective of the study. The researcher was interested in identifying the

principles of Value for Money at National Water and Sewerage Corporation. Participants

were asked a variety of questions on this matter. According to the responses given, to a

greater extent employees used principles of Value for Money in contract management. These

included efficiency and effectiveness as indicated below thematically:

Efficiency

This was highly practiced by employee at National Water and Sewerage Corporation. This

was mentioned by majority of the employees in the interviews conducted at the entity. The

results presented revealed that low price as a measure of value for money was assessed by the

respondents. This was attributed to the fact that majority of the respondents indicated that the

procurement unit pays for services which are provided at best value and quality.

One of the employees was quoted saying:

That the procurement unit allocates money wisely to achieve competitive exposure in

the market. Similarly, respondents indicated that the procurement unit acquires

human and material resources of the appropriate quality and standard at the lowest

cost and balances the use of resources to achieve the right goals at reasonable cost.

The above responses imply that the procurement officers of the surveyed districts understand

the power of the value for money. This is because they try their best to pay for best quality

38
goods and services at the lowest costs. They also ensure that they allocate their money wisely

in a profitable venture that would give them a competitive advantage in the market. However,

in order to achieve this, they ensure that they have quality human and material resources at

lowest cost and make sure they balance the use of resources at reasonable cost as well.

In addition, the procurement process spans a life cycle from identification of the need,

through the selection of suppliers, to post-contract award management, including disposal.

There is a duty on procurers in central government to apply the key principles of public

procurement. These require the delivery of value for money (VFM), appropriate quality and

service to meet business needs, and appropriate governance. These apply to the majority of

procurements with a total value over a specified threshold. Contracting authorities need to

deploy strong personal and organizational commercial leadership, and, in most cases,

procurement activities need to be led by professionally trained staff.

Another key informant revealed that:

It is very important to consider a utility derived from every purchase or every sum of

money spent so National Water and Sewerage Corporation has considered Value for

money basing on the maximum efficiency and effectiveness of the purchase.

(Respondent A).

Effectiveness

Effectiveness as a measure of value for money was assessed by the respondents as

Satisfactory. This was attributed to the fact that majority of the respondents agreed that the

procurement unit ensures that the right procedures enshrined in the law are transparent and

competitive.

One of the employees was quoted saying;

39
 It is very important to consider a utility derived from every purchase or every sum of

money spent so National Water and Sewerage Corporation has considered Value for

money basing on the maximum efficiency and effectiveness of the purchase.

Furthermore, one of the respondents asserts that:

The procurement unit prefers on-time delivery of goods and services as agreed-on in

the contract and ensures that timelines are followed in the procurement of contract

packages. However, the respondents were not in full agreement that the procurement

unit often achieves the goals it intends to achieve. (Respondent D).

In addition to the above, the respondents were not in full agreement that the procurement unit

provides a framework to guide procurement officers in the achievement of their tasks and

duties. This meant that the management assures achievement of an organization's objectives

in operational effectiveness and efficiency, reliable financial reporting, and compliance with

laws, regulations and policies.

Additionally, government and private sector procurement suffers from fraud and similar

issues; not often, but it does happen. Suppliers have been known to operate cartels (to restrict

competition or drive up prices), and some suppliers and staff have, on occasion, committed

fraud. That may include; falsifying invoices; business awarded unfairly in return for bribes or

suppliers inflating prices in collusion with staff and/or competitors. Senior officials should be

aware of these issues; strong processes and governance are the best routes to guard against

most potential problem areas

Another key informant revealed that:

The procurement officers at National Water and Sewerage Corporation practice

efficiency in their procurement planning activities by using the right procedure

enshrined in the law, and timeliness in contract delivery. However, often times they

40
 find it difficult to achieve desired goals because of lack of well instituted framework to

guide them hence compromising the power of value for money. (Respondent E).

4.5 Integrity and contract management

This was the third objective of the study. The researcher was interested in identifying the

principle of integrity on contract management National Water and Sewerage Corporation.

Participants were asked a variety of questions on this matter. According to the responses

given, to a greater extent employees used principles of integrity in contract management.

These included honesty and Moral principles as indicated below thematically:

Honesty

This was highly practiced by employee at National Water and Sewerage Corporation

regarding that transparency, accountability and fairness was ensured during contract

performance. This implied that National Water and Sewerage Corporation are operating in

such a way that it is easy for others to see what actions are performed.

One of the key informants notes that:

Ethical code of conduct is signed to provide a guide of principles designed to help the

organization conduct business honestly and with integrity

Another key informant indicated that:

The honesty of the procurement process assures confidence in the public procurement

process. When solicitation documents are issued by the procurement entity, the

information provided should be reliable and free of uncertainty or predisposition.

When reviewing solicitation documents, prospective bidders should be able to

determine their interest and qualifications for the assignment. (Respondent F).

The above quotation implies that integrity was practiced in local authorities, tight supervision

accompanied with close monitoring, and use of punishments has been implemented and this

reduces the risks acquiring poor quality products which are often associated with corruption

41
and bribery. Procurement performance was achieved by getting good quality products

continuously with zero error defects.

Additionally, government and private sector procurement suffers from fraud and similar

issues; not often, but it does happen. Suppliers have been known to operate cartels (to restrict

competition or drive up prices), and some suppliers and staff have, on occasion, committed

fraud. That may include; falsifying invoices; business awarded unfairly in return for bribes or

suppliers inflating prices in collusion with staff and/or competitors. Senior officials should be

aware of these issues; strong processes and governance are the best routes to guard against

most potential problem areas

Relatedly, another key informant indicated that:

The integrity of competitive procurement hinges on maintaining appropriate

confidentiality that will protect information and give offerors the confidence to do

business with Government. Confidentiality has many dimensions and confidentiality

of submissions is particularly important prior to the awarding of the contract with

information shared only on a ‘need to know’ basis. Confidential information may

include designated or defined (and as agreed) elements of the supplier’s proposal,

specific intellectual property and offeror’s pricing structures. (Respondent D).

The findings of this study also shows that integrity in procurement promotes fair and equal

treatment of bidders leading to selection of the most competitive supplier who meets quality,

less lead time at reasonable prices, thus enhancing procurement performance .

Moral principals

This was highly practiced by employee at National Water and Sewerage Corporation.

According to the findings of the study, the majority noted that agreed that National Water and

Sewerage Corporation had its ethics and norms followed by all workers. This was in line with

key informant who pointed out that;

42
In order to ensure effectiveness and productivity, some certain ethics (morals or

conducts) have been employed and this has helped employees guide their behavior

while at the office

43
 CHAPTER FIVE

SUMMARY OF FINDINGS, DISCUSSION OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Introduction

This chapter presents the summary of findings, discussion, conclusion and recommendations

in line the objectives of the study which included; to explore how confidentiality influences

contract management at National Water and Sewerage Cooperation, to assess how the value

for money influences contract management at National Water and Sewerage Cooperation and

to explore how integrity influences contract management at National Water and Sewerage

Cooperation. It also presents the demographic information of study participants.

5.2 Summary of findings

5.2.1 Confidentiality and contract management

It also emerged that National Water And Sewerage Corporation showed the confidence of

bidders in the complaints handling mechanism to address complaints related to corruption.

These findings were also in agreement with the 3 rd National Integrity Survey report (2009)

which indicated that National Water and Sewerage Corporation adhered to the recommended

procurement methods in accordance with the PPDA Law and it maintained proper record

keeping of the procurement process and contract performance.

The study revealed that supplier confidentiality should be safe-guarded, and unsuccessful

suppliers should be debriefed with as much transparency about the procurement process as

can be provided, for example, on the weaker aspects of their tender to build trust and strategic

relationships.

It also emerged that National Water and Sewerage Corporation showed the confidence of

bidders in the complaints handling mechanism to address complaints related to corruption.

The report noted that 121 Entities audited revealed that in over 95% of the value of
44
procurements conducted, the Procurement and Disposal Units (PDUs) adhered to the

recommended procurement methods in accordance with the PPDA Law and maintained

proper record keeping of the procurement process and contract performance

5.2.2 Value for money and contract management

From the findings of the study, it was reported that that National Water And Sewerage

Corporation completed and implemented most planned contracts the contracts within the time

required. It was also identified that the rate of delays experienced in contract performance

had reduced completely in National Water And Sewerage Corporation and the organization

obtained all approvals required during contract performance.

It was also revealed that in National Water And Sewerage Corporation, all contracts were

performed within the budget, the organization had a monitoring unit to monitor quality of

roads constructed and more to that all officials were committed to achieve value for money.

From the study findings, it was agreed and strongly agreed that cases of administrative

review and bureaucracy in contract performance had reduced.

It was also deduced that the value for money was the most core principle underpinning

National Water And Sewerage Corporation and. In line with the study findings, it was also

reported that National Water And Sewerage Corporation adhered to the recommended

procurement methods in accordance with the PPDA Law and it maintained proper record

keeping of the procurement process and contract performance.

5.2.3 Integrity and contract management

From the study findings it was revealed that National Water And Sewerage Corporation had

its ethics, norms and all workers emphasized confidentiality. It was also reported that

National Water And Sewerage Corporation workers did not discriminate contractors which

clarified that transparency, accountability and fairness was ensured during contract

performance.

45
It was also indicated that integrity must be considered highly as it aids procurement process

by reducing the potential chances for fraud and corruption. Accountability also help in

reducing lead times and attaining successful quality of products in public sector procurement

of local authorities.

5.3 Discussion of findings

5.3.1 Confidentiality and contract management

The research findings affirmed the position by Sidwell, (2016) that without proper

confidentiality practices, corruption can occur in the procurement process ranging from

awarding contracts on the basis of bribes, or awarding a firm belonging to one’s friends,

family or business colleagues to officials colluding with bidders for payments for non-

existent work, Han, Wilson and Dant (2010) asserted that suppliers' confidential information

must not be revealed to any other party or used in any way without supplier’s consent.

Entities should consider whether the nature of the procurement may raise confidentiality

issues for potential suppliers.

The study finding are supported by Crossman and Ashley, (2018) who notes that in today’s

increasingly litigious and highly competitive workplace, confidentiality is important for a

host of reasons and failure to properly secure and protect confidential business information

can lead to the loss of business clients and contract termination. Hamutenya and Mensah,

(2015) also urges that in the wrong hands, confidential information can be misused to commit

illegal activity (for example, fraud or discrimination), which can in turn result in costly

lawsuits for the contractor. The disclosure of sensitive contract information can lead to a loss

of trust, confidence and loyalty which leads to termination of contracts.

The study findings above concur with Wins (2018) who asserts that confidential information

should be shared only when needed and with the persons who are liable to get the same as

part of their profession. Thus, confidential information should be carefully shared with the

46
internal and external world otherwise it can hamper the business adversely in terms of

discrediting the institution and termination of contract. Wins 2018 further notes that

maintaining confidentiality in a procurement process ensures success of the whole procuring

procedures thus confidentiality is a fundamental arm of ethical procurement practice.

The findings of a study carried out by Simiyu et al. (2018) showed that there existed a

significant relationship between confidentiality ethical practice and contract management

performance among G4s firms in Western Kenya. The researchers concluded that

confidentiality practices enhance contract management (Simiyu et al., 2018). In addition,

Syengo (2015) found out that ethical practices affect contract management to a great extent.

Disclosing of company information remains a big challenge to procurement functions due the

sensitivity if not well handled it may create a competitive advantage to competitors and

ineffectiveness in contracting.

Furthermore, Sengbeh (2015) researched about ethical procurement practices and supply

chain performance of the Kenyan energy sector. The study adopted a descriptive research

design. Findings of the study established that transparency; accountability and confidentiality

procurement practices had a significant influence on the firms’ supply chain performance in

the energy sector. It was thus clear from the descriptive analysis that integrity practices in

procurement had a significant influence on the performance of firms in the energy sector. The

study findings will be used by management to maintain the integrity of a brand, ensure

business continuity and manage operational costs. The study will adopt transparency

procurement practices, accountability practices in procurement, integrity practices in

procurement, confidentiality practices in procurement and procurement professionalism

practices so as to effectively and efficiently improve their supply chain performance.

47
5.3.2 Value for money and contract management

This was the second research question. The objective here was to identify the Value for

money on contract management. In summary, the value for money looked efficiency and

effectiveness as given below;

The study findings are in agreement with Kutonsi and Eya, (2015) in their study investigated

the effect of procurement packaging on value for money in selected manufacturing

companies in Ghana. The study used descriptive survey design and a sample size of 346

respondents among whom were technical and supervisory staff. The study used regression

analysis and found a significant effect of procurement packaging on value for money. The

study found a significant effect when procurement requirements are grouped within a

procurement category for the purpose of acquiring them under a single contract, on value for

money; however there was no significant effect of dividing procurement requirements into

multiple lots on value for money. However, Amade et al., (2016) in his study on the

importance of procurement packaging on value for money in the hospitality sector in Nigeria

revealed that there was no significant effect. The study used survey design and a population

size of 208 respondents who were mostly employees of the selected companies. Data analysis

was done using regression analysis. The study established that procurement packaging using

multiple contractors was more important in achieving value for money than using a single

contractor. This was because multiple contractors were found to reduce unnecessary resource

waste compared to single contractor.

Furthermore, Chegugu and Yusuf (2017) carried out a study on the effect of procurement

methods on value for money in manufacturing companies in South Africa using descriptive

survey and a study population of 384 respondents. The procurement methods commonly used

by the selected manufacturing companies included open tendering, restricted tendering,

request for proposal and two-stage tendering. The study found that only open tendering, and

48
request for proposal had significant effect on value for money. However, restricted tendering

and two-stage tendering had no significant effect on value for money. The study concluded

that selection of appropriate procurement methods leads to achievement of value for money.

The study findings are supported by Nshimyumuremyi, (2018) who investigated the effect of

procurement planning on value for money Among Selected Districts in Southern Province,

Rwanda. The study used descriptive survey design. The study revealed that procurement

packaging significantly affects the value for money. Furthermore, the study revealed that

procurement method significantly affects value for money. Similarly, the study revealed that

procurement scheduling significantly affect value for money. The study concluded

procurement planning affects value for money. The study made the following

recommendations: the need for procurement officers to use good procurement packaging

where they allow bidders to submit bids for one or multiple lots; the need for procurement

officers to embrace all procurement methods depending on the circumstance and the nature of

the project so as to be as comprehensive as possible since each procurement method has its

own advantage; the need for procurement officers to involve stakeholders and superiors in

project scheduling so as to streamline any inconsistency.

5.3.3 Integrity and contract management

This was the third objective of the study. The objective here was to identify the Experiences

of children with dyslexia in using ICT during learning.

The study findings are supported by Ayoyi and Mukoswa (2015), who indicated that integrity

leads to trust, which leads to lasting and profitable relationships and organizations that have

integrity get repeat business and favorable supplier contract terms. Conversely, without

integrity, a person or company won’t be able to build the sustainable business relationships

that are essential to long-term success. The researchers concluded that integrity in contract

management is critical to building long-term, profitable relationships with partners and

49
employees. The findings of a survey among procurement practitioners in central governments

confirmed that transparency and accountability are key for enhancing integrity throughout the

whole procurement cycle, including in needs assessment and contract management

Integrity in terms of transparency such as public disclosure of information around public

procurement processes contributes to identifying and decreasing cases of contract

mismanagement in form of fraud and corruption. The find are in agreement with win (2018)

who asserts that any compromise on the integrity has a negative impact on the overall

contract management process. Failing to abide to ethical practices can lead to immoral and

illegal practices such as bribery, favoritism and illegal sourcing. The World Bank (2010) also

indicated that many countries are yet to develop procedural frameworks to tackle the integrity

issues in procurement process hence affecting contract compliance in most developing

countries.

The study findings are supported by Robert, (2018) who revealed that integrity in the context

of public procurement implies that procurement procedures are transparent and promote fair

and equal treatment for bidders. Public resources linked to public procurement are used in

accordance with intended purposes. UNCITRAL rules on request for proposals also provide

for use of the kind of two-envelope procedure found also in the principal method for

procurement of services in the selection procedure with simultaneous negotiations (Article 43

of the Model Law). Thus, for the purpose of evaluating the final proposals, Article 48(3)

provides that the effectiveness of the proposal is to be evaluated separately from the price,

and that the price is to be considered only after the completion of the evaluation. The reasons

for such a two-envelope procedure are the same as with the principal method for procurement

of services, namely to ensure that appropriate weight is given to the different criteria and to

prevent the deliberate abuse of discretion. A very important objective of many public

procurement systems and of public procurement regulation is to ensure integrity in the

50
system. This refers, first, to the idea that procurement should be carried out without any

influence of corruption. Corruption can cover various types of practice.

These findings are in line with Kizito and Khomba (2013) who asserts that procurement

should be characterized by honesty, zero corruption activities and be open to scrutiny. This

indicates that integrity in the procurement process bears an immediate cost both for local

authorities, government and the bidders. The former is certain to prevent corruption from

fraudulent procurement officials. Public procurement is increasingly regarded as a core

element of integrity and accountability of the government to the public on how public funds

are managed. In a manner of enhancing integrity all procurement stakeholders are required to

undertake their duties as required by the Procurement Act and the Urban Councils Act in

local authorities. Tukamuhabwa (2012) agrees that integrity has promoted transparency and

minimized the processes that encouraged malpractices.

5.4 Conclusion

5.4.1 Confidentiality and contract management

The study concluded that supplier confidentiality should be safe-guarded, and unsuccessful

suppliers should be debriefed with as much transparency about the procurement process as

can be provided, for example, on the weaker aspects of their tender to build trust and strategic

relationships.

5.4.2 Value for money and contract management

On the basis of the study findings, it is concluded that for there to be effective procurement

performance in local authorities, there has to be effective transparency practices in

procurement. All suppliers should be treated fairly and even-handedly at all stages of the

procurement process. This means being open with all those involved, so that everyone,

especially suppliers, understands the elements of the process, that is, the procedures,

timescales, expectations, requirements, criteria for selection and so on.

51
It was also deduced that the value for money was the most core principle underpinning

National Water And Sewerage Corporation and. In line with the study findings, it was also

reported that National Water And Sewerage Corporation adhered to the recommended

procurement methods in accordance with the PPDA Law and it maintained proper record

keeping of the procurement process and contract performance.

5.4.3 Integrity and contract management

Conclusively, ethical provisions that stipulate ethics have an effect on contract performance

management in the public sector. Organizations like National Water And Sewerage

Corporation applies public procurement and disposal Act, 2003 amended 2014 in contract

performance and in addition to that ethical code of conduct was signed by employees and

providers. Value for money is the most core principle underpinning National Water And

Sewerage Corporation.

It is also concluded that integrity must be considered highly as it aids procurement process by

reducing the potential chances for fraud and corruption. Accountability also help in reducing

lead times and attaining successful quality of products in public sector procurement of local

authorities.

5.4 Recommendations

National Water And Sewerage Corporation as a government entity should emphasize and

abide by code of ethics that its employees or members are supposed to follow and more to

that breaking the code of ethics should be subjected to termination or dismissal from the

organization.

The management should designate career senior procurement executives as deputies to chief

acquisition officers to ensure full coordination of agency-wide acquisition functions. More to

that, the organization should put in place a robust human capital strategic planning process

52
that provides a full picture of all federal and contractor resources likely to be needed to

accomplish organization missions.

The study recommended that procuring entities should develop their own internal ethical

control mechanism other than depending on the broad legal framework which may not cater

for the interest and context of the specific procuring entity. These may include strengthened

internal procurement manual, ethical committee or department, enhanced independence of

internal pre – audit and audit committee, as well as an effective reward and punishment

system. Also, in order to continue improving the professional practices, there is a need for the

procuring entity to maintain hiring of qualified and professional procurement staffs.

Procurement teams in local authorities should adopt transparency procurement practices,

accountability practices in procurement, integrity practices in procurement, confidentiality

practices in procurement and procurement professionalism practices so as to effectively and

efficiently improve on the procurement performance.

Ethical levels of behavior of procurement staff in local authorities must be ensured as it

influences the procurement performance in a positive way in local authorities.

Resources in local authorities need to be dedicated to the practices that enhance the

functioning of best procurement practices for development and enhancing service delivery.

Procurement officials in local authorities in all provinces should be accountable enough by

ensuring that suppliers/ contractors and service providers are paid immediately after

delivery/completion of contract. Early payment will maintain good relationship with

suppliers and avoid inflation of prices done by the suppliers.

Local authorities should also provide seminars/workshops to suppliers, contractors and

service providers to provide knowledge on the Procurement Act on the main objective of

value for money of purchased products.

53
Accountability and transparency should be upheld in the entire process of procurement in

local authorities.

5.5 Contribution of the study to body of knowledge

This study is an addition to the exiting body of knowledge about procurement ethics and

contract performance in organizations in developing countries. The government and other

bodies can use the study findings to identify areas of intervention to meet their contract

performance targets so as to be able to achieve the goals of the entities.

Another way students can add great significance to existing knowledge is by methodology

adopted. By reviewing empirical studies on procurement ethics and effectiveness in contract

performance, a new method or approach in tackling the same problem identified in prior

research studies can be discovered. For example, data collection method, sample size, data

analysis can be changed to tackle the same problem in-order to bring out a unique study.

5.6 Areas for further research

A number of key issues were identified during the course of the study but they were not

sufficiently investigated or discussed. These issues require further investigation: Relationship

between ethical codes of conduct and contract performance, Strategies to improve ethical

code of conduct among employees and also the Model for contractor performance evaluation

in construction

54
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 APPENDENCES

APPENDIX 1: INTERVIEW GUIDE FOR KEY INFORMANTS

Dear respondent

This interview guide is intended to seek your view on the study on Ethical behaviors and

contract management; a case of National Water and Sewerage Cooperation. The research is

being undertaken as part of the requirement for the award of a Master’s degree in public

procurement at Uganda management institute. You are kindly requested to spare some of

your valuable time and indicate your opinion on each question and statement. The

information provided will only be used for academic purposes and will therefore be treated as

confidential.

Thank you

SECTION A: DEMOGRAPHIC CHARACTERISTICS

1) Gender: Male  Female 

2) Age: ………………

3) What is your level of education?

4) What is your academic background?

5) What is your working Experience in procurement?

6) State your current job position in the organization

7) What could be some of the effect of confidentiality on contract management at

National Water and Sewerage Corporation?

8) Prob how confidentiality of commercially sensitive information in a procurement

process is highly recognized as being important

9) What is the effect of value for money in contract management in National Water and

Sewerage Corporation?

i
10) Prob how effectiveness affects contract management at National Water and Sewerage

Corporation?

11) Prob how efficiency affects contract management at National Water and Sewerage

Corporation?

12) What is the effect of integrity in contract management at National Water and

Sewerage Corporation?

13) Prob how integrity allows for a free exchange of useful information which aids in

improving the procurement performance

THANK FOR YOUR TIME AND RESPONSES

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 APPENDIX II: DOCUMENT CHECKLIST

1) Annual performance reports

2) Quarterly performance reports

3) Minutes of departmental meetings

iii