Procurement contract risks management and the performance of force account construction projects in Tanzania: does the regulatory framework matter?

Abstract

Purpose

The construction sector plays a vital role in the economic progress of every nation, including Tanzania. Notwithstanding its significance, the industry experiences poor performance. This study aims to assess the impact of procurement contract risk management on the performance of force account (FA) construction projects, using a regulatory framework as a moderator.

Design/methodology/approach

The cross-sectional research design was used, and data was collected by using a structured questionnaire. The study employed a sample size of 318 respondents to analyse data by using partial least square structural modelling (PLS-SEM).

Findings

The findings revealed that supply risk management, procurement internal control system and procurement contract administration influence the performance of FA construction projects. Additionally, the study confirms that the regulatory framework strengthens the relationship between the procurement internal control system and procurement contract administration with the performance of FA construction projects. Therefore, procurement contract risk management, as moderated by the regulatory framework, plays a significant role towards the performance of FA construction projects.

Practical implications

These findings have significant implications for practitioners and policymakers involved in FA construction projects in the public sector, as they highlight the importance of procurement contract risk management in achieving the successful performance of FA construction projects.

Originality/value

This study contributes to the ongoing discussion about the performance of construction projects, especially those under the FA procurement. It also contributes to the literature on public construction projects in developing countries.

Citation

Mwaiseje, S.S., Panga, F.P., Mchopa, A.D. and Nkuhi, M.S. (2024), "Procurement contract risks management and the performance of force account construction projects in Tanzania: does the regulatory framework matter?", SAM Advanced Management Journal, Vol. 89 No. 3, pp. 272-294. https://doi.org/10.1108/SAMAMJ-07-2024-0036