thesis november 2008

UNIVERSITY OF CAPE TOWN

FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT DEPARTMENT OF CONSTRUCTION ECONOMICS & MANAGEMENT

Master of Science in Project Management

An Critical Review of the Effectiveness of the Procurement Systems Used on Donor-Funded Construction Projects in Zambia

Keeta L. S. Shisholeka

Field of Interest: Procurement Process Management

November, 2008

A research report submitted in partial fulfillment of the requirements for the degree of Master of Science in Project Management

Master Thesis in Project Management University of Cape Town

Acknowledgements

It is with great honour that I take this rare opportunity to extend my sincere gratitude to my

supervisor, Professor Paul Andrew Bowen, head of the Department of Construction

Economics & Management, for guiding and supporting me selflessly, let alone dragging me,

through the years until the accomplishment of my studies.

I am especially indebted to Mrs. Mareldia Fagodien, who has tolerated me over the years and

assisted whenever she could in order to make it as manageable as possible to study at UCT.

I extend my best wishes to my dear elder brother Collins Sitali who escorted me all the way

through the thickets of Cape Town.

To my lectures Mark Massyn, Dr. David Root and Ian Jay who assisted whenever I beckoned

them, I respectfully offer thanks.

To the team at the Disaster Management & Mitigation Unit, I am thankful for the time allowed

for me to travel to UCT so frequently.


Dedication

I dedicate this dissertation to you my dear wife Mweembe and my son Tende who

invoked the willpower in me to complete my Master Thesis, each time I reflected upon

you...

I love you both!


Table of Contents SECTION PAGE CHAPTER 1. BACKGROUND TO THE STUDY ................................................................................................... 1

1.1 Introduction ......................................................................................................... 1 1.1.1 Procurement Management ...........................................................................1 1.1.2 Donor-Funded Procurement in Zambia .......................................................3 1.1.3 Procurement Systems ...................................................................................4 1.1.4 World Bank Guidelines & Procedures .........................................................4 1.1.5 Procurement Performance and Effectiveness ..............................................7

1.2 Statement of the Problem .................................................................................. 11 1.3 The Research Questions .................................................................................... 11 1.4 Hypothesis of the Study .................................................................................... 12 1.5 Research Objectives .......................................................................................... 12 1.6 Overall Aim of the Study .................................................................................. 12 1.7 Limitations of the Study.................................................................................... 13 1.8 Research Methodology ..................................................................................... 13 1.9 Structure of the Thesis ...................................................................................... 14

CHAPTER 2. PUBLIC PROCUREMENT ............................................................................................................. 16

2.1 Introduction ....................................................................................................... 16 2.2 Procurement Management on Donor-Funded Projects ..................................... 17 2.3 Use of Country Systems and Local Ownership ................................................ 19 2.4 Performance of Donor-Funded Projects ........................................................... 20 2.5 Project Management Factors ............................................................................. 24 2.6 Summary & Conclusions .................................................................................. 25

CHAPTER 3. GUIDELINES FOR PUBLIC PROCUREMENT IN ZAMBIA .................................................. 26

3.1 Introduction ....................................................................................................... 26 3.2 Guidelines for Donor-Funded Procurement ...................................................... 27

3.2.1 World Bank Guidelines ..............................................................................27 3.2.2 European Development Fund Procurement Regulations ...........................29 3.2.3 AfDB Procurement Regulations ................................................................32 3.2.4 KfW Procurement Guidelines ....................................................................32 3.2.5 NDF General Procurement Guidelines ......................................................33

3.3 Sector Wide Approaches ................................................................................... 34 3.4 Summary & Conclusions .................................................................................. 36


CHAPTER 4. RESEARCH METHOD ................................................................................................................... 37

4.1 Introduction ....................................................................................................... 37 4.2 Critical Review of a Survey-Based Approach .................................................. 38

4.2.1 The Surveys ...............................................................................................38 4.2.2 Limitations of the Survey-Based Approach ...............................................43 4.2.3 Justification of Survey-Based Approach ...................................................45

4.3 Design of the Survey Instrument ...................................................................... 48 4.3.1 Design Considerations ...............................................................................48 4.3.2 Justification of the Survey Questions ........................................................49 4.3.3 Structure of the Questionnaire ...................................................................51

4.4 Conclusions ....................................................................................................... 52 CHAPTER 5. OPINION SURVEY ADMINISTRATION, DATA ANALYSIS & INTERPRETATION . 53

5.1 Introduction ....................................................................................................... 53 5.2 Survey Administration ...................................................................................... 53

5.2.1 Sample Targeting .......................................................................................53 5.2.2 The Actual Sample .....................................................................................54 5.2.3 Challenges Encountered.............................................................................55

5.3 Data Presentation & Analysis ........................................................................... 56 5.3.1 Demographics ............................................................................................57

5.4 Findings............................................................................................................. 60 5.4.1 General Presentation ..................................................................................60 5.4.2 Occupational Details ..................................................................................60 5.4.3 Views on Donor-Funded Procurement ......................................................62 5.4.4 Tenets of Public Procurement ....................................................................68

5.5 Conclusions ....................................................................................................... 69 CHAPTER 6. CONCLUSIONS AND RECOMMENDATIONS .................................................................... 71

6.1 Introduction ....................................................................................................... 71 6.2 Findings of the Research Questions .................................................................. 72 6.3 Conclusions ....................................................................................................... 74 6.4 Recommendations ............................................................................................. 74 6.5 Achievement of the Research Aims and Objectives ......................................... 75


Keeta L. S. Shisholeka Page 1 of 90

CHAPTER 1. BACKGROUND TO THE STUDY

1.1 INTRODUCTION

1.1.1 Procurement Management

Project Management is defined in the Guide to the Project Management Body of

Knowledge (PMBoK) as “…the application of knowledge, skills, tools and techniques to

project activities in order to meet stakeholder’s needs and expectations from a project”

(PMI, 2000:6). In this case, a project manager should do whatever it takes within his or

her means, resources and constraints to meet the needs and expectations of the

stakeholders. One of the knowledge areas covered in the PMBoK perceived as being

key to project management success is Project Procurement Management. From the

perspective of Burke (1999), project procurement management deals with the

acquisition of goods and services required to perform the project’s scope of work. This

implies that procurement managers are dealing with an already defined scope of work

and therefore the assumption is that the major project deliverables have at some stage

already been sub-divided into smaller parts that are more manageable. The PMBoK

goes further to state that project procurement management “…includes the processes

required to acquire goods and services, to attain project scope, from outside the

performing organisation” (PMI, 2000:147). The PMI (2000) refers to the term

processes and includes the phrase from outside to emphasise the fact that processes are

involved and whatever goods and services are procured they are not already under the

umbrella and control of the performing organisation. The goods and services are

sourced through various activities and processes from outside the organisation that is

carrying out the project.

According to Pooler and Pooler (1997), a number of historic factors have created new

interest in purchasing and supply management which has evolved from either

manufacturing or management, and has gained its independence as an expanded

financial contributor to organisational success. In the quest to derive better value from

available funds, public projects are governed by strict statutory and regulatory

provisions that are intended to reduce the risk of favouritism and undue influence and to



reassure taxpayers that there is accountability in the way public funds are disbursed

(Heisse, 2002). Pooler and Pooler (1997) advocate that for any function to succeed, it

must establish clear measurable objectives and work diligently to achieve these

objectives, while Heisse (2002) argues that historically public projects used traditional

design-bid-build procurement methods that required separate contracts awarded to the

lowest responsive bidders, which did not allow the government to evaluate contractor

bids based on factors other than price. Because purchasing takes up a large share of an

organisation’s revenue, to maximise its contribution to an organisations overall

performance, purchasing must establish two overarching objectives (Pooler and Pooler,

1997):

1. to ensure economy in the procurement of goods, supplies and services; and

2. to contribute to overall performance by efficiently controlling the flow of funds

passing through the organisation.

Construction procurement involving public funds can deliver considerable gains in

efficiency through the effective delivery of best-value procurement

(http://www.ccinw.com/procurement), because best-value procurement generally permits

flexibility not offered by traditional competitive bidding (Heisse, 2002). According to

the U.S. Environmental Protection Agency (1999) best-value procurement is defined as

competitive, negotiated procurement in which the purchaser reserves the right to select

the most advantageous offer by evaluating and comparing other factors considered

relevant in addition to cost or price enabling the purchaser to purchase technical

superiority even if it means paying a premium price (http://www.doi.gov/pam/diapr1999-

5.pdf). A premium is the difference between the price of the lowest priced proposal and

the one which offers the best value. Pooler and Pooler (1997) have underpinned the

above overarching objectives of purchasing with some specific goals, such as, getting

the best buy in terms of suitable quality at minimal cost; paying reasonably low prices

through negotiating and executing all organisational commitments; developing

satisfactory sources of supply and maintaining good relationships with them; securing

optimal supplier performance; locating new and better materials and products; keeping

inventories as low as is consistent with organisational needs; carrying out programmes

to continually reduce costs of purchases; developing effective controls and procedures;

and, keeping acquisition costs at a minimum compatible with optimal performance.



1.1.2 Donor-Funded Procurement in Zambia

The Government of the Republic of Zambia relies heavily on foreign donor support to

finance its annual budgets. Capital expenditure continues to be largely financed from

external resources through grants and loans, accounting for 69.6% of total capital

expenditure in the 2006 national budget (Ministry of Finance and National Planning,

2006-2008 Medium Term Expenditure Framework and the 2006 National Budget). It is

clear from the 2006 national budget address, that most of the donor support is

channelled towards capital expenditure such as road construction and rehabilitation,

construction of schools and health centres, rural electrification and land development.

In the 2003 national budget, 83% of capital expenditure was financed by external donor

support. Of the total capital expenditure, 7% went towards financial restructuring,

contingent liabilities, fertiliser price support and imports of maize reserves. This meant

that 93% of the capital expenditure budget actually went to infrastructure projects, of

which 89% was donor-funded. In 2004 external donor support to capital programmes

rose to 88%. Of the total capital expenditure in 2004, 6% went towards financial

restructuring, contingent liabilities, fertiliser price support and imports of maize

reserves, meaning that only 94% of the capital expenditure budget actually went to

infrastructure projects. Of this 94% was donor-funded (Zambia National Budget

Address, 2004).

External donor support in the 2005 national budget was 78% of total capital

expenditure. Of this 15% went towards financial restructuring, contingent liabilities,

fertiliser price support and imports of maize reserves, leaving only 85% of the capital

expenditure budget actually going towards the financing of infrastructure projects.

Despite this drop in financing of infrastructure projects, the donor-funded portion

remained quite high at 92% (Zambia National Budget Address, 2005). These figures

reflect an average of 92% over the last five years, which is a very significant portion of

total capital expenditure on infrastructure projects.



1.1.3 Procurement Systems

This study centres around procurement systems used on donor-funded construction

projects in Zambia. An overview of procurement management systems used generally is

given below to provide an understanding of some schools of thought in procurement

management. It is imperative to note that most of these schools of thought have looked

at the same processes from different perspectives and seem to have merely classified the

same processes differently. The overall processes from initiation of the procurement

management functions to finalisation of the contracts basically remain the same (Baily,

1978).

Baily (1978) explains that purchasing and supply planning is part of the responsibility of

purchasing management, although it is sometimes assisted by full-time research or

personnel in other departments who provide supporting technical information.

According to Baily (1978), this information may be solicited through two approaches.

Firstly, through the individual approach, by giving a project to an individual buyer who

is expected to complete an investigation and put forward recommendations by a specific

date. Secondly, this may be done through a collective approach, which focuses the

attention of all buyers on one problem at a time. In this case particular aspects may be

assigned to individuals, but the whole department is expected to concentrate on the

general problem. Information obtained in both ways is used as an input to the

procurement planning.

Considering that several systems are used during procurement management, some

scholars have described the various processes involved in relation to the area of

application and the applicable stage during the overall procurement function (Chapman,

1997). Chapman (1997) emphasizes acquisition management and contract

administration, both functions of the procurement manager, as methods for reducing

project cost, schedule, and quality risks.

1.1.4 World Bank Guidelines & Procedures

The World Bank has well-established guidelines and procedures which are followed to

enable implementing agencies to carry out any procurement funded by the World Bank



(Bank-Financed Procurement Manual, May 2004). Other donors use similar guidelines

and procedures for procurement and it is easy to note that some of them seem to have

adopted the World Bank guidelines and procedures with some modifications meant to

address particular unique circumstances within their own organisations or economic

groupings. It can be observed from projects funded by several bilateral donors and/or

multi-lateral agencies, that if the World Bank is involved to a significant extent the

partners will most probably apply World Bank guidelines and procedures, so that they

can exploit the systems the Bank already has in place locally and internationally

(PEMFA Secretariat, Public Expenditure Management and Financial Accountability

Reform Programme, Procurement Guidelines; March 2005:8).

According to the World Bank’s Operational Manual, OP.11.00 (July 2001, Revised

December 2004:4), the Articles of Agreement, which are an integral part of all World

Bank Loan Agreements, “…establish the Bank's fiduciary responsibility to ensure that

the proceeds of its loans are used only for specified purposes, with due attention to

economy and efficiency and without regard to political and other non-economic

influences or considerations”. Due to these requirements, the Bank has established

procurement rules to be followed by borrowers for the procurement of goods, works and

services required for the projects financed by the World Bank, and the World Bank has

gone further by putting in place procedures for review of the procurement decisions

made by borrowers, before and after these decisions have been made. Note here that

whether the decision is reviewed before or after it has been made depends on the

estimated value of the contract to be entered into as a result of the procurement decision.

The rules that apply to the procurement of all goods, works, and services on World

Bank funded projects are detailed in the Bank’s Procurement Guidelines; and those that

apply to the selection and employment of consultant services are detailed in the Bank’s

Consultant Guidelines. According to the World Bank’s Operational Manual, these

Guidelines have been endorsed by the Bank's Executive Directors and are incorporated

by reference in the particular Loan Agreement in the manner specified in the Project

Appraisal Document (PAD) for a particular project. These are the guidelines that are

binding on the borrower in respect of all procurements performed under a particular

project.



Additional instructions and guidance material on procurement are provided in the Bank-

Financed Procurement Manual (July, 2001) and the Consulting Services Manual

(March, 2002), which are revised from time to time. The World Bank considers the

underlying principles of donor-funded procurement as being: ensuring economy and

efficiency in the procurement of goods, works, and services; giving eligible bidders

from developed and developing countries a fair opportunity to compete for award of

contracts; encouraging the development of domestic industries in developing countries,

i.e. contracting, manufacturing, and consulting industries; and providing for

transparency in the procurement process (World Bank, 2001).

The World Bank’s Procurement Manual constitutes the Bank’s policies on procurement

and is intended to provide advice and assist both Bank staff and implementing agencies

in borrower countries to carry out their procurement responsibilities (World Bank,

2001). This manual also helps Bank staff to advise implementing agencies on how to

handle their responsibilities when carrying out procurement using Bank financing and

explains in more detail how specific aspects of procurement should be handled

consistent with Bank Guidelines and Bank procedures.

The Bank-Financed Procurement Manual begins with a review of some policy and

institutional aspects of procurement that have broad applicability and about which

questions arise most frequently, while subsequent chapters deal with specific

procurement topics, taking them generally and in the chronological order in which they

occur, from the initial analysis of a Borrower’s procurement systems and capacity,

through the procurement planning stages and into project implementation and contract

administration (http://wbln0018.worldbank.org/institutional/manuals/opmanual.nsf). The

implications of different financing arrangements, particular kinds of procurement, i.e.

textbooks, pharmaceuticals, pesticides, commodities, information technology, etc are

covered as a variety of special situational examples in the final chapter of the

Procurement Manual. Where necessary, topics are cross-referenced to other relevant

sections of the Operational Manual and the Procurement Guidelines to enable a clearer

understanding of the topics in issue

(http://wbln0018.worldbank.org/institutional/manuals/opmanual.nsf). In a quest to keep this

Manual relevant and useful to its users, the World Bank continues to review and update

this document on a regular basis.



With an average of 83% of capital expenditure over the last five years having been

funded by the donor community and 70% of the 2006 capital expenditure budget being

funded by the donor community (Ministry of Finance and National Planning, 2006-2008

Medium Term Expenditure Framework and the 2006 National Budget), it follows that

the significance of how efficient and effective the procurement systems used are, is

cardinal to ensuring value-for-money. As noted by Chapman (1997), effectively and

efficiently applied, acquisition management and contract administration, which are both

functions of a procurement manager and his or her team, are proven methods for

reducing project cost, schedule, and quality risks, thereby obviously increasing value-

for-money obtained from limited resources.

1.1.5 Procurement Performance and Effectiveness

Performance in general is defined as the degree to which the outputs or outcomes of a

set of activities meet specified standards or goals (Knevett, 1998). Erridge (1995)

observes that value-for-money is often identified as the overriding goal in the public

sector. Value-for-money in this case is further described as the delivery of public

services of the requisite standard at the lowest cost to the taxpayer, while ensuring

minimum quality requirements are met. Therefore, as emphasised by Knevett (1998),

public sector procurement must be measured against established standards to ensure

continuous improvement in the performance of delivery of public services. Erridge

(1995) further identifies purchasing goals as the five ‘rights’: the Right Material, of the

Right Quality, to the Right Place, at the Right Time, and for the Right Cost. These are

the parameters that can be measured to determine the effectiveness of purchasing

systems and activities (Erridge, 1995).

There are various methods of measuring procurement performance. Van Weele (1994)

quotes Hayes and Renard (1962), who suggested that management’s expectations of the

purchasing operations have a significant influence on the methods and techniques that

are used in its assessment. This hinges on how management looks upon the role and

importance of the purchasing function. Erridge (1995) notes that, whilst levels of

professionalism in purchasing have improved considerably in recent years, and its



contribution to overall organisational performance is increasingly being recognised, a

problem still remains with the way purchasing is viewed both inside and outside

organisations. Therefore, it is vital to continue marketing the purchasing function both

inside and outside the organisation.

Companies that invest in performance management out-perform other companies in

multiple financial measures – total shareholder return, return on equity, return on assets,

and cash flow return on investment, and multiple productivity measures – sales per

employee, income per employee and real growth in sales (Stimson, 2002). According to

Stimson (2002), considering that a large percentage of Cost of Goods Sold (COGS) is

purchased materials, procurement can have a large impact on overall performence. For

example, for a company with 55% COGS in purchased materials, a 1% reduction in

COGS delivers the same margin lift as 12-18% sales growth

(http://www.ism.ws/ResourceArticles/Proceedings/2002/StimsonGB.pdf.). This highlights the

importance with which procurement performance should be addressed and how

effective good procurement practices can be in adding value to the delivery of public

services.

Erridge (1995) emphasises that it is, however, critical to ensure that the right parameter

is being measured in the right manner. This involves identifying criteria against which

performance can be assessed and monitored, which most often involves: economy,

which relates purely to inputs; efficiency, which is the ratio of inputs or processes to

outputs, i.e. profitability and productivity; and effectiveness, which is the achievement

of overall goals, and could therefore have sub-criteria such as excellence, quality,

ethicality and innovation (Erridge, 1995).

Scott (2005) notes that legislative requirements in most states in the United States of

America require that highway construction contracts be awarded using a low-bid

system. Under a similar system in Zambia, contractors submit bids based on plans and

specifications prepared by engineering firms hired by Government agencies and usually

the contractor submitting the lowest evaluated bid is awarded the construction contract.

Walker and Hampson (2003) argue that open or pre-qualified tender competition almost

always results in the acceptance of the ‘cheapest’ fixed price for specified work. In most

cases, experience levels of the contractor, quality issues, and other criteria are not taken



into consideration in awarding these contracts using these systems (Scott, 2005). The

low-bid system makes no allowances for awarding construction contracts to the best-

performing contractors who deliver the highest quality projects. Objective elements,

including contractor experience with similar projects, completion within schedule,

compliance with material and workmanship requirements, timeliness and accuracy of

submittals, and record of safety are not factored into the procurement process (Scott,

2005).

A major disadvantage of the competitive tendering process is that the contractor is

removed from the design development stage and thus much management and

constructability information is lost (Walker and Hampson, 2003; McGeorge and Palmer,

1997; Francis and Sidwell, 1996). These elements not only affect the ultimate

performance and overall cost of the completed facility, but also contribute to the

efficient execution of the work. Efficiency is very important to contracting authorities

that are interested in a high level of public acceptance (Scott 2005). According to the

World Bank (Bank-Financed Procurement Manual, July 2001), the best public

procurement is simple and swift and should aim at producing positive results without

protracted delays. In addition, efficiency implies practicality, especially in terms of

compatibility with the administrative resources and professional capabilities of the

purchasing entity and its procurement personnel (Bank-Financed Procurement Manual,

July 2001-Edited January 29, 2003: Foreword). Scott (2005) concurs by recognising

that, because of constrained staffing and budgets, it is not possible for state agencies to

"inspect" quality into the work, therefore, a procurement process is needed that

considers value-related elements in awarding contracts.

Many procurement specialists on donor-funded projects in Zambia today are faced with

the task of advising implementing agencies on matters that affect the number of bidders

who participate in the tendering process. Carr (2005) suggests that an appropriate

question may be whether restriction of bidder participation actually negatively impacts

on project costs through limited competition, and to what degree? The World Bank

allows Limited International Bidding through direct invitation as an option generally

where there is a limited number of possible suppliers or where contract values are very

small (Bank-Financed Procurement Manual, July 2001-Edited January 29, 2003:109).

In most circumstances a prequalification process aimed at screening potential bidders



has to be used to ensure that only contractors and suppliers who have the required

experience, technical expertise and financial resources bid for a contract, This process is

commonly used only for large civil works, turnkey plants, build operate and transfer

contracts, some special goods and complex information technology systems (Bank-

Financed Procurement Manual, July 2001-Edited January 29, 2003:120). On the other

hand, Carr (2005) argues that there is little published evidence and analysis on bid

competition impacting on cost-effectiveness, although there are numerous reports that

argue on assumptions and bias that the impact of reduced competition on project bid

prices is a rise in bid prices.

Scott (2005) proposes that under a "best-value" selection process, the low-bid concept

can be modified by adding quality issues to the bid evaluation process. The low-bid

concept would still be a part of this selection process, but it would be weighted with

other elements to determine a best-value that reflects quality, as well as cost issues.

Best-value should include a full analysis of existing performance, and take into

stakeholders’ views and lessons learnt from other public services providers about

alternative approaches to traditional procurement methods

(http://www.scotland.gov.uk/pages/copyright.aspx). While it is argued that removing the

contractor from the design development stage is a major disadvantage of the traditional

competitive tendering process (Walker and Hampson, 2003), more recent developments

suggest that public-private partnerships (PPPs) are a form of procurement that makes all

stakeholders become partners in the success of public projects, hence creating a sense of

ownership (Her Majesty’s Stationery Office, 2000).

The Institute for Public-Private Partnerships (2007) defines PPP as a partnership

between government and an appropriately qualified private sector entity/group of

entities, entered into for the purpose of financing, designing, constructing and/or

operating infrastructure or services that would normally have been provided through

traditional public channels. In a similar vein, PPPs are defined by the World Bank

(2004) as the combination of public needs with private capability and resources to create

a market opportunity through which the public benefits by their needs being met and the

private sector benefits by making a profit. According to Smith (2004), growing

dissatisfaction with the traditional delivery process of public infrastructure and services

in the late 80’s gave rise to alternative delivery systems such as Build-Operate-Transfer



(BOT), Build-Own-Operate-Transfer (BOOT) and Design-Build-Finance-Own-Operate-

Transfer (DBFOOT). These are some forms of project financing, where a private entity

receives a franchise from the public sector to finance, design, construct, and operate a

facility for a specified period, after which ownership is transferred back to the public

sector, enabling the private entity to recover its investment, and operating and

maintenance expenses (http://en.wikipedia.org/wiki/Build-Operate-Transfer). Such delivery

systems are options of private financing initiatives (PFIs) that should be available to

public sector decision-makers as they decide how best to procure infrastructure projects

and provide public services (Smith, 2004).

This study looks at procurement management in general and therefore incorporates how

economy and efficiency are taken into consideration, but it focuses on the effectiveness

of the procurement systems and selection criteria used in particular.

1.2 STATEMENT OF THE PROBLEM

The problem to be addressed may be stated as:

There is growing concern that donor-funded construction projects in Zambia do not

achieve project objectives in an economic and efficient manner. In addition, measures

that have been taken to improve the performance of these projects in the recent past

through the use of more effective procurement systems do not seem to have delivered

any tangible results.

1.3 THE RESEARCH QUESTIONS

An examination of the project procurement management systems employed on donor-

funded construction projects raises questions about whether the procurement systems

that are put in place by the donors and have to be used by the project implementing

agencies, adequately respond to the requirements of performance and effectiveness. This

raises the following questions:

i. Do the procurement systems used on donor-funded construction projects in

Zambia deliver best value-for-money in terms of meeting quality requirements,

as well as adhering to time and cost constraints?;



ii. Should the procurement systems used be agreed upon mutually from the onset of

the projects or be agreed upon as the project is being implemented?; and

iii. Do the procurement systems used create any unintended consequences that have

a negative impact on overall project performance?

1.4 HYPOTHESIS OF THE STUDY

The hypothesis to be tested in this study may be stated as:

The procurement systems used on donor-funded construction projects in Zambia do not

deliver best value-for-money in terms of meeting quality requirements, as well as

adhering to time and cost constraints, mainly because they are not agreed upon mutually

at the onset of the projects and amending or changing the systems during project

implementation is almost impossible, thereby causing unintended consequences that

have a negative impact on overall project performance.

1.5 RESEARCH OBJECTIVES

The objectives of the study are to:

a. Determine whether procurement systems on donor-funded construction projects

contribute to failure in economic and efficient attainment of project deliverables;

b. Determine the underlying reasons why procurement systems on donor-funded

construction projects continue to contribute to such failure; and

c. Provide insight on the areas surrounding procurement systems that need to be

focused on to improve overall project performance on the donor-funded project

portfolio in Zambia and see whether a “best-value” selection process can be

incorporated.

1.6 OVERALL AIM OF THE STUDY

The aim of this study is to highlight the shortcomings and areas of concern relating to

donor-funded procurement of public infrastructure in Zambia that can be addressed

locally by implementing government agencies and central government, and provide

insight to the donor community about the reasons for some of the inefficiencies and

ineffectiveness of current procurement systems used and emphasise the need for



continued and consistent improvement of procurement performance in a bid to

contribute to improvement in overall project performance.

1.7 LIMITATIONS OF THE STUDY

The study will be restricted to projects that have been implemented and completed over

the last ten to twelve years and will focus on large scale projects that had performed

several procurement activities mainly involving the procurement of infrastructure and

related services.

The reasons for this are that since 1991 when a multi-party political system was re-

introduced in Zambia, a lot of donors began to support the Zambian economy.

Following the planning stages, and signing of bilateral and multi-lateral agreements, the

implementation of infrastructure projects commenced two to three years later. In

addition, the need to make an assessment of overall project performance requires that

only completed projects are included in the study. Furthermore, it is prudent to compare

performance on donor-funded projects that have been implemented under similar

economic, social and political conditions.

1.8 RESEARCH METHODOLOGY

This research is in the form of a study that will employ an investigative approach. It

shall rely on qualitative research methods by gathering information from projects that

have already been completed and analysing this information. The research will also

employ a cross sectional approach by assessing performance on projects implemented in

different sectors of the economy over the same period, rather than assessing projects in

the same sector over an extended period. There will be a review of relevant literature on

overall performance of projects within the limitations outlined herein. Having reviewed

the overall performance from internal completion reports (ICRs), an investigation into

the performance of procurement management and the systems used shall be conducted.

In addition, a questionnaire targeted at procurement personnel, from both the public and

private sectors, who were involved in the implementation of projects, shall be designed

and used to capture information on what specific problems may have impact on

efficiency and effectiveness in procurement management as well as overall project



performance. This information shall provide a basis for further analysis of the

environment within which the projects are implemented and the relationship between

procurement systems put in place, procurement regulations and guidelines used, and

overall project performance shall be highlighted.

The study will entail:

a. Conducting a detailed literature review of public sector procurement systems

generally and how current trends compare and contrast with traditional systems;

b. Providing an overview of the procurement systems put in place and the

procurement regulations and guidelines used on donor-funded projects;

c. Analysing the questionnaire results and views of procurement practitioners and

other professionals involved in the implementation of donor-funded projects;

and

d. Determining the relationship between the procurement systems in place,

regulations and guidelines used, and the effectiveness of the procurement

management in achievement of overall project objectives.

1.9 STRUCTURE OF THE THESIS

This thesis comprises five chapters.

Chapter 1 will provide background information to the study followed by brief sections

pertaining to the research problem, research questions, hypothesis, objectives of the

research, the overarching, limitations and the methodology.

Chapter 2 will give a review of literature on public procurement systems in general,

procurement regulations and guidelines, and performance of donor-funded projects from

the perspective of procurement management. It will examine their intended purpose and

the rationale on how they ought to impact on project performance and achievement of

overall project objectives.

Chapter 3 will discuss the salient areas of procurement guidelines and/or regulations of

five donor institutions/countries that provide most of the funding for infrastructure



development and rehabilitation in Zambia with a focus on the application of their

procedures and the management systems put in place to administer procurement.

Chapter 4 will outline the research methodology in detail and the research procedures in

line with questionnaire administration ethics and practices. The research questions will

be explored further with a direct focus on the questionnaire results. The data collected

shall be analysed and interpreted in relation to the respondents’ actual views on project

performance and achievement of project objectives.

Chapter 5 will comprise the conclusion for the study and suggestions and

recommendations for more economic and efficient procurement management, focused

on project performance. It will highlight the underlying reasons why procurement

systems in place and regulations and guidelines used on donor-funded projects continue

to contribute to failure to meet project objectives. The chapter will also provide insight

on the areas that need to be focused upon to improve the effectiveness of procurement

systems used on donor-funded projects in Zambia.



CHAPTER 2. PUBLIC PROCUREMENT

2.1 INTRODUCTION

It is evident that, for rapidly growing urban populations, central governments in most

developing countries are unable to undertake infrastructure development whose "cost-

to-carry" initially will exceed tax revenues generated by new residents and businesses

(Utt, 1999), using financing generated from domestic resources. This has led to the

unavoidable reliance on donor aid obtained through bilateral and multilateral

agreements, in order to try and keep up with the ever growing demand for public

infrastructure and social services (Hansen, 2004). The Law Encyclopedia (2008) defines

public as the whole body politic, or the aggregate of the citizens of a nation, state, or

municipality; the community at large; the people (http://www.answers.com/public). Barrons

Business Forum (2007) defines procurement as the acquisition of goods, services and/or

infrastructure at the best possible total cost of ownership in the right quantity and

quality, at the right time, in the right place for the direct benefit or use of governments,

corporations or individuals, generally via a contract (http://www.answers.com/procurement). In

this context public procurement can therefore be defined as the acquisition of goods,

services and/or infrastructure by national, state, provincial or municipal governments on

behalf of the whole body politic or all citizens.

This chapter provides a critical review of literature on public procurement management

and the effectiveness of using country systems in procurement procedures for donor-

funded construction projects. It also reviews literature on the performance of donor-

funded projects from the perspective of procurement management. In addition, the

chapter provides an insight into recent developments in the management strategies and

interventions applied by multilateral and bilateral donors and whether or not these

strategies and interventions actually have an impact on value-for-money realised from

the use of limited donor resources. According to Lancaster (1999) the organisation and

management of donor aid and the dependence of developing countries on that aid is

particularly important in analysing the issue of the effectiveness of donor aid in

developing countries. Good overall programme management, realised by effective

project management, is also said to be essential to successful and sustained development

programmes in developing countries (White, 1996).



This literature review draws on studies and reviews carried out by some scholars and

stakeholders interested in the implementation of donor-funded projects and the

organisations involved in implementation and monitoring of donor-funded projects. The

purpose of this review is to bring to the fore the similarities and differences between the

experiences in different countries in order to highlight the notable shortcomings and

areas of concern related to the implementation of donor-funded construction projects in

developing countries.

2.2 PROCUREMENT MANAGEMENT ON DONOR-FUNDED PROJECTS

The overall objective of a public sector employer or client when planning and initiating

a construction project is to provide a sound finished project at a minimum price and

with low maintenance requirements (Ogunlana and Sysavath, 2003). Some of the

pitfalls in trying to manage projects effectively and maximise project performance are

problems associated with the misunderstanding of contract documents, especially

general and special conditions that have an impact on performance during project

implementation. Enshassi (1999) emphasises that cultural variations and differences in

value systems present problems to foreign professionals working away from home on

donor-funded projects. It is quite evident that conditions of contract affect expeditious

implementation, and levels of economy and efficiency in the construction industry.

Tutesigensi and Moodley (1999) found that the positive contribution of conditions of

contract to expeditious implementation, and economy and efficiency in the industry, can

degenerate into a dysfunctional situation when there is either lack of considerable

understanding of the conditions of contract by at least one of the parties to the contract,

or lack of trust and confidence in the conditions of contract by one or both of the parties.

Many standard contracts used on donor-funded projects are drawn from ‘imported’

templates and they originate from a variety of sources, designed for different social,

cultural, political, legal and economic backgrounds. Tutesigensi and Moodley (1999)

argue that the use of these ‘imported’ conditions of contract leaves several parts of the

overall contract agreement clearly missing and other parts not applicable, resulting in a

less than optimal achievement in project implementation. These are issues that can only

be effectively addressed during the early stages in the procurement process, i.e. during

project design and procurement planning.



Rwelamila (2000) observes that the dominant traditional construction procurement

system used in the Southern African Development Community (SADC) public

construction sector is used as a ‘default system’, which is now considered inappropriate

as a construction procurement system. The default traditional construction procurement

system is said to provide a poor and adversarial relationship management basis that is

incapable of dealing with sustainability parameters, making it difficult to deliver any

substantial cost and quality benefits (Walker et al, 2000). Rwelamila (2000) further

concludes that the construction procurement systems purported to be used in the SADC

public construction sector differs significantly from that recommended in the theory,

resulting in insignificant focus on the main stakeholders, construction environment and

its sustainability. The traditional construction procurement system management

structure and its respective contract arrangements are used merely because clients and

their consultants do not consider it beneficial to select an appropriate procurement

system for each project (http://www.ogc.gov.uk/sdtoolkit/reference).

The five management activities that contribute to improving the management capacities

of developing country institutions and individual managers are leadership, project and

programme design, organizational and institutional structures, management support

systems, and relations within the project environment (White, 1996). From the previous

chapter it has been acknowledged that project procurement management has evolved

over the years to be recognised as one of the key project management functions that

contribute to the successful delivery of projects. Project success is focused on the

acquisition and delivery of services, goods and works where and when they are most

required at an optimum price and this is the core function of a procurement management

team. On donor-funded construction projects studies have shown that contractual

practices and procurement management are key elements that lead to disputes, contract

termination, completion delays and cost overruns (Ogunlana and Sysavath, 2003;

Kumaraswamy, 1997). Inappropriate work packaging has also contributed considerably

to problems that emerge during the post contract period on large construction projects

(Kumaraswamy, 1997). These are all tenets of procurement management and the

consequence of lack of due consideration during the preparation of tender documents in

the early stages of the procurement process.



Many problems arise in the course of project implementation due to unclear roles and

responsibilities within contract management teams (http://www.ogc.gov.uk/sdtoolkit/reference).

Lines of communication are not usually defined properly

(http://www.ogc.gov.uk/sdtoolkit/reference) and the design teams are usually not aware of the

strengths and weaknesses of the contractors who shall undertake the works (Materu,

2002). Public procurement systems in developing countries and subsequent contracting

procedures often fail to ensure fair, competitive business practices that take into account

the social and economic background in the contractual arrangement (Ogunlana and

Sysavath, 2003), hence they do not exploit the specialized expertise and experience of

the domestic contractors available in the economy. Contracts are often awarded much

later than planned, are one-sided, expressing the rights of the employer and the

obligations of the contractor without adequate compensation to the latter if the employer

defaults (Department for International Development [DFID], 2006). Such procedures and

rules lead to delayed payments and fail to compensate the contractor for escalation in

costs due to delay on the part of the employer. Contractual difficulties, as well as cost

and time overruns, can frequently be traced to the procurement systems and procedures

followed. According to Ogunlana and Sysavath (2003), contract documents are often

excessively complex for the works to be carried out and sometimes inhibit participation

in tenders by domestic contractors.

2.3 USE OF COUNTRY SYSTEMS AND LOCAL OWNERSHIP

Materu (2002) cited stringent conditions for pre-qualification and tendering, lack of

transparency in the procurement of public works, and lack of affirmative policies for the

promotion of local contractors as contributing factors to the lack of effectiveness and

mediocre performance of donor-funded projects, even resulting in unfair competition

and corruption. For donor-funded projects in the construction sector that are normally

focused on infrastructure development and maintenance, procurement management is

essential to timely completion, which may sometimes involve several procurement

processes in order to deliver complex construction projects

(http://www4.trb.org/trb/crp.nsf/All+Projects/NCHRP). Construction delay has become quite

endemic in Nigeria, where client-related delay is significant and it has been established

that acceleration of site activities coupled with improved clients' project management



procedures should moderate the adverse effect of construction delays (Aibinu and

Jagboro, 2002). The project management procedures alluded to here are mainly the

procurement guidelines and systems, including standard contract documentation

imposed by bilateral and multilateral donor agencies. The Paris Declaration on aid

effectiveness lends favour to the Nigerian situation from another angle by amplifying

the need for the use of reliable country systems for procurement and financial

management (DFID, 2006) in order to achieve more effectiveness on donor-funded

projects. DFID (2006), Crown Agents (1998), and World Bank (1996) all emphasise

that strengthening capacity by preferably using both government owned and led

initiatives through programmes coordinated with other donors, using common

arrangements and procedures, would lead to improvements in effectiveness. This would

definitely require harmonised procurement management systems and procedures with

enhanced local ownership (Dickinson et al, 2007).

A question needs to be addressed: Is embracing the issue of ‘partnership’ and ‘local

ownership’ at policy level, as propagated over the last thirty odd years, adding any value

to the performance of donor-funded projects? Despite much donor rhetoric, for quite a

while now, on the need for recipient ownership of development programmes and the

building of new forms of donor-recipient partnership, aid-supported programmes are

still basically donor-driven (Helleiner, 2000). The concept of a genuine partnership in

development lacks credibility, because there has never been a real sense of equality

between donors and recipients (Patel, 1971) and if donors believed in local ownership

participation they would seek channels and methods of cooperation that avoid stifling or

attempting to substitute local initiative (OCED, 1996). Aid relationships have been

difficult to change in low-income countries and focusing on other factors that contribute

to the effectiveness and overall performance of donor-funded projects may be the key to

successful implementation in future.

2.4 PERFORMANCE OF DONOR-FUNDED PROJECTS

Over the last thirty years or so African leaders have been concerned about the visible

stagnation in economic growth across the continent and through the Organisation for

African Unity, the Economic Commission for Africa and the World Bank, the leaders



instigated a rollout of analyses and reports that addressed what measures should be

taken in order to try and address what was coined the African problem (Browne, 1988).

By the mid-nineties these reports brought many analysts and policymakers to the

realisation that a new kind of partnership between rich nations and poor countries was

required in aid relationships, which were characterised by donor-driven aid programmes

and had limited local ownership (Helleiner, 2000). This, he suggested, was in order to

ensure that donor aid programmes were more effective in delivering accelerated

development. Browne (1988) points out that policy reform, which had been the keynote

of the initial analysis of the Organisation of African Unity, remained the focus

throughout the series of reports. Despite these reports and the reform programmes that

have since been implemented and continue to be implemented in developing countries

through the New Aid Partnerships and Local Ownership, little has been realised in terms

of improved performance of the programmes on the ground (DFID, 2006). The African

problem, characteristics of which are also evident in other developing countries around

the world, still continues to haunt the international community and adversely affects

global economic development (Browne, 1988). It has been argued by Helleiner (2000)

that, if the overall policies of how donor aid works are inappropriate, it is unlikely to

have much positive effect on the economies of developing countries and that unless

sound policies are domestically supported, they are unlikely to be sustainable.

Some scholars propagate that the effectiveness of donor aid programmes is hampered

more by lack of well articulated, coherent and coordinated support programmes that

exploit the comparative advantages of the various multilateral and bilateral donors

(Flaming et al., 2005) than by parameters surrounding project management factors.

Dochtermann (2007) highlights the critical need for a common language and

terminologies across institutions to help provide a common understanding of the

procedures that are to be followed while managing individual projects. This is quite

evident when the procurement regulations, guidelines and procedures used by the

bilateral and multilateral donors are discussed as a factor that affects the effectiveness of

interventions and overall project performance. In Nicaragua, for example, lack of focus

on monitoring operational efficiency and insufficient internal technical capacities in the

local donor agencies was cited as an impediment to aid effectiveness (Flaming et al.,

2005). In the Zambian case, this has become so prevalent that some implementing

agencies have advanced to a level of erudition that surpasses the technical capacity of



many in-country donor agencies that are supervising the implementing agencies.

According to Helleiner (2000) expatriate expertise is frequently ill-informed, insensitive

to local realities, typically generates little domestic capacity-building and sometimes

serves donor rather than development interests, which is contrary to the overall

objectives of aid programmes. Delivery of best value-for-money does not necessarily

have to do with the lowest cost, but rather, the best balance of quality and whole-life

cost in order to meet specific user requirements

(http://www.ogc.gov.uk/sdtoolkit/reference/ogc_lirary).

Another negative donor performance indicator could be the percentage of its aid which

is spent upon donor-country tied technical assistance/financial cooperation. Although

there are a lot of “useful” expatriates and consultants working in developing countries,

the presumption must be that this is not generally now a wise use of limited donor

funds, particularly when the issue of technical assistance has not been initiated and

requested by the recipient country (Rwelamila 2000). Helleiner (2000) propagates that

good donor performance can be illustrated by a low percentage of donor funds devoted

to tied technical assistance. Therefore, one could consider a high percentage of donor

funds devoted to long-term capacity-building as a complement to this somewhat

“negative” indicator and thus is more of a positive indicator, although somewhat

subjective, hence more difficult to illustrate, quantify and determine.

Helleiner (2000) states that there are strong indications to suggest that one of the major

causes of poor performance of African construction industries in terms of cost, quality,

schedule and utility could be questionable procurement strategies, which by their nature

do not take on board all relevant factors, and lead to inconsistent and unpredictable

outcomes (http://www.ogc.gov.uk/sdtoolkit/reference). The emergence of ‘new’ approaches in

procurement are often proclaimed as the universal remedy for all previous problems and

the construction industries intelligentsia in African countries have a tendency of

accepting them without questioning the appropriateness of the procurement systems in

relation to their main stakeholders, environment and sustainability (Rwelamila, 1999).

To achieve the dramatic increases in efficiency and quality that are both possible and

necessary the public procurement fraternity needs to start questioning current and

emerging procurement approaches (Carr, 2005). Above all, the intelligentsia should

accept the reality that African construction industries problems need African solutions



(Rwelamila, 1999) and not the ‘imported’ templates that originate from a variety of

sources designed for different social, cultural, political, legal and economic

backgrounds.

There is also the contributing factor of the continuing imbalance in aid relationships

between donor and recipient that manifests in many ways. According to White (1996),

an important and previously neglected dimension of the problem is the imbalance in

performance monitoring and evaluation between donors and recipients. Whereas the

behaviour and performance of recipient countries is measured and assessed in ever

increasing detail within the international community, the behaviour and performance of

their donor “partners” only seems to receive cosmetic attention, except at an aggregate

level which is of little operational usefulness to individual recipient countries (White,

1996). When it comes to performance monitoring and evaluation, as in so many other

spheres of international and/or global interaction, the powerful donors and other

international financial institutions, still call all the shots (Ngulube, 2004).

In a similar vein Helleiner (2000) raises the issue of tying of procurement to

conditionalities specified by the donors and stresses that this has long been recognised

as costly to recipients particularly when it relates both to procedures and procurement

sources. The extent to which donors are willing to coordinate their support and follow

national procurement systems, through contributions to sectoral or cross-sector basket

funds, wholly administered by recipients in accordance with objectives and priorities

agreed with the contributing donors (Helleiner, 2000), is a manifestation of how much

the donors are willing to integrate into national plans and priorities.

It is apparent that the effectiveness of donor aid can be addressed through the

procurement procedures and systems used during implementation of donor-funded

projects by ensuring that big public projects are packaged into lots which can be

managed by local contractors, procurement procedures are streamlined to make them

more transparent, and donors are persuaded to relax conditions to enable local

contractors to participate in their projects (Materu, 2002). Issues like local contractors

inability to fully understand contract documents, laxity in enforcement of contract

conditions by implementing agencies and misunderstanding of the roles of consultants



(Ogunlana and Sysavath, 2003) should also be taken into account and addressed more

objectively.

2.5 PROJECT MANAGEMENT FACTORS

Based on lessons learnt during a study conducted in Kenya, Lesotho, Liberia, Niger,

Senegal, and Zaire1, White (1996) revealed that parameters surrounding project

management factors were key to successful development programmes. These included:

leadership and management style vis-à-vis, relating to others, energising staff

and mobilising support both internally and externally;

programme and project design encompassing policy mandates, project

objectives, discretion among managers and implementation;

organizational and institutional structure, how the structure contributes to

service delivery and performance of activities both internally and externally;

management procedures and support systems, considering whether the design of

internal procedures, financial management, information, monitoring and

evaluation, and personnel systems enhance efficiency and effectiveness; and

relating to the environment or context, in order to understand both resources and

constraints, and take into account cultural sensitivity, local support and linkages

with beneficiaries.

Problems of poor management are often cited as responsible for programme failure

(White, 1996). The management factor in development programmes is, however, less

well appreciated and understood as are the project interventions that serve to strengthen

management capabilities. Donor aid programmes are implemented through specific

projects, which form the overall project portfolio under any aid programme. It follows,

therefore, that the successful implementation of the projects under the aid programme

should ensure overall achievement of programme objectives. This report refers to the

management factors concerning procedures, support systems and the environment in the

context of procurement management. Findings have shown that the efficiency and

effectiveness of procurement management systems used during the implementation of

1 Now known as the Democratic Republic of Congo.



donor-funded projects is usually linked to performance levels, as long as the

procurement management systems are geared towards the overall priorities of the

project (Kumaraswamy and Dissanayaka, 1998).

2.6 SUMMARY & CONCLUSIONS

Procurement management systems for donor-funded construction projects in developing

countries are clearly issues that need to be addressed collectively by all stakeholders.

The traditional ‘default system’ clearly does not deliver the intended sound finished

project at minimum cost with low maintenance requirements. In trying to improve the

performance of donor-funded projects through the use of more rigorous ‘imported’

templates designed for different social, cultural, political, legal and economic

backgrounds, other challenges have been created, such as, lack of understanding of

tender and contract documents, and lack of appreciation of the different roles and

responsibilities in contract management.

There are comprehensible suggestions that using country systems in procurement

procedures for donor-funded construction projects can be an effective way of improving

performance, as long as this is enhanced by tackling issues relating to local ownership

and untying of procurement from conditionalities specified by donors. However, it

should be noted that local ownership can only be adequately addressed if capacity is

built by revisiting the project management factors that are key to successful

development programmes and ensuring that local capacity is enhanced in relation to

these factors.

This chapter has reviewed literature relating to donor-funded procurement systems and

procedures used on construction projects in developing countries and their

consequences. However, in order to provide an appreciation of the background to these

procurement systems and procedures the next chapter focuses on the guidelines laid

down and issued by donors.



CHAPTER 3. GUIDELINES FOR PUBLIC PROCUREMENT IN ZAMBIA

3.1 INTRODUCTION

Public procurement in Zambia is governed by an Act of Parliament, which establishes

the Zambia National Tender Board (ZNTB). In accordance with the ZNTB Act No 30 of

1982, ZNTB was established to regulate and control the procurement of goods and

services for the Government and parastatal bodies and to consolidate the law relating to

tenders generally, while providing for matters connected with or incidental to public

procurement. ZNTB regulates all public procurement in Zambia through the Central

Tender Committee and its subsidiary committees established within the Ministries,

Provinces and Spending Agencies (MPSAs)2.

This chapter gives an overview of the various guidelines, procedures and regulations

used in Zambian public sector construction procurement. Emphasis is put on guidelines,

procedures and regulations of donor institutions because of the fact that, on average,

92% of the procurement of public sector construction projects is funded by donor

institutions. Along with the national procurement legislation, which is governed by the

ZNTB Act No. 30 of 1982, MPSAs in the public sector are required to follow the

guidelines, procedures and/or regulations of the bilateral or multilateral donor

institutions that fund construction projects. The purpose of this chapter is to provide

insight into how donor-funded public procurement is governed, regulated and carried

out in Zambia. In addition, the chapter provides an understanding of the underlying

principles of multilateral and bilateral donors and how the guidelines and procedures

prescribed by different donors are meant to impact on value-for-money in the use of

scarce public resources. The salient areas of the procurement guidelines and/or

regulations of some main donors that provide funding for infrastructure development

and rehabilitation in Zambia are briefly outlined.

2 Taken from Statutory Instrument No. 116 of 1995 of the Laws of Zambia.



3.2 GUIDELINES FOR DONOR-FUNDED PROCUREMENT

There are a number of bilateral and multilateral donor institutions that provide funding

for construction projects in Zambia, who are usually referred to as Cooperating Partners

(CPs) as a group. Notable CPs that contribute to construction projects, other

infrastructure development and rehabilitation are the World Bank through the

International Development Association (IDA), the European Union through the

European Development Fund (EDF), the African Development Bank through the

African Development Fund (ADF), the Federal Government of Germany through the

Kreditanstalt für Wiederaufbau (KfW) Development Bank, and the Nordic countries

through the Nordic Development Fund (NDF).

3.2.1 World Bank Guidelines

The Bank’s Operations Policy, Bank Procedures and Procurement Guidelines constitute

the Bank’s policies on procurement (Bank-Financed Procurement Manual, July 2001-Edited

January 29, 2003:ix). According to the World Bank (2001), the principal hallmarks of

proficient public procurement are meant to give the purchaser best value-for-money,

simply and swiftly by producing positive results without protracted delays. Consistent

with the Bank’s Procurement Guidelines (2004), the responsibility for the

implementation of projects through the award and administration of contracts rests with

the Recipient, while the Bank’s role is to ensure that the proceeds of any loan are used

only for the purposes for which the loan was granted, with due attention to the need for

economy and efficiency, giving all eligible bidders equal opportunity, encouraging the

development of domestic contracting and transparency in the procurement process. This

transfer of responsibility is in conflict with the Bank’s prior review requirements

contained in Appendix 1 of the same procurement guidelines. Prior review requirements

such as furnishing draft bidding documents before bids are invited, submitting draft

evaluation reports before contracts are awarded and seeking prior authority before

amending contracts, adds to protracted delays in signing and administering contracts,

thereby reducing the value-for-money obtained. Anvuur and Kumaraswamy (2006)

emphasized that the poor performance of construction in Ghana was due to the public

sector’s lack of commercial edge in the exercise of its procurement function. They



mainly attributed the causes of delays to extensive post-award negotiations, delays in

evaluation, and an extensive system of controls, reviews and approvals required by

funding institutions. This meant that project implementation was characterised by

additional cost, time overruns and hence poor quality (Crown Agents, 1998: Westring,

1997).

The Bank’s Procurement Manual (2001) further advocates that public procurement

should be impartial, consistent, and reliable, which rather contradicts the position taken

by the Procurement Guidelines (2004), that in practice the specific procurement rules

and procedures to be followed in the implementation of a project depend on the

circumstances of the particular case. The two documents may be in agreement on the

issue of impartiality, but contradict each other on the issues of consistency and

reliability. The latter document, which is provided for use of the implementing agencies,

states that public procurement practitioners should address issues on a case-by-case

basis, while the former document provided for use of Bank staff as they advise the

implementing agencies, states that procurement decisions should be consistent and

therefore reliable, not case-by-case.

The Procurement Guidelines (2004) maintain that procurement under a Bank loan is the

Borrower’s responsibility, but the Procurement Manual (2001) provides that, through its

staff, the World Bank renders support in helping Borrowers implement procurement

properly, by performing their role “persuasively and effectively” (World Bank 2005:…).

This echoes the point that ‘country ownership’ is still not respected in practice by the

World Bank (Oxfam, 2005). Oxfam also cited recent evidence from the Bank itself that

"…there is no one right way to achieve development" (World Bank 2005:…), implying

that they are not consistent and therefore their procurement decisions cannot be

considered as reliable as to be embraced without challenge.

The World Bank has developed detailed guidelines for procurement of goods, works

and services for all contracts financed in whole or in part by the World Bank. These

guidelines are split into the Procurement Guidelines (World Bank, 2004) applicable to

the procurement of goods, works and non-consulting services and the Consultant

Guidelines (World Bank, 2004) applicable to the procurement of consulting services.



Both sets of guidelines are structured into distinct sections and generally follow the

same structure.

The Guidelines include a requirement for procurement planning and monitoring. As

prescribed by the World Bank (2004), the procurement plan is prepared and agreed upon

during the preparation of the project, as a pre-requisite to loan negotiations, meaning

that since it can take up to six months or more before the project actually becomes

effective, the Recipient shall be bound to implement what was agreed in the eighteen-

month procurement plan in the manner in which it had been approved by the Bank for

up to two years. This requirement hinders flexibility in terms of adapting the

procurement arrangements/activities to changes during the two year period. This is

despite a provision that allows for updating of the procurement plan annually, because

of “…the extensive system of controls, reviews and approvals” (Anvuur and

Kumaraswamy, 2006:3) under World Bank procedures. In Ghana, the World Bank

(1996) found that fiscal constraints and restrictive procurement practices had led to

insecurity of funding for construction projects and created delayed payments and

payment arrears to contractors and consultants, thereby contributing to reduction in

value-for-money through inadequate contract management systems.

Open competition is considered to be the basis for efficient public procurement and

according to the World Bank (2004) in most cases International Competitive Bidding

(ICB), if properly administered and implemented is the most appropriate method of

procurement. The KfW Development Bank (2003), also prescribes that, in principle,

supplies and services for projects are to be procured on the basis of ICB. This is not

necessarily reflected as such in the procurement guidelines of other multilateral donor-

funding agencies, such as the EDF (2006) and the ADF (2000), which simply provide

ICB as one of the optional procedures to be used depending on the circumstances.

3.2.2 European Development Fund Procurement Regulations

The European Union (EU) provides funding for development programmes through an

aid package composed of two parts – the external actions element of the General Budget

of the EU and the five-yearly allocations of funds known as the EDF under a partnership

agreement with African, Caribbean and Pacific (ACP) States (European Commission,



2004). Member states of the European Union contribute to the EDF separately from

their contributions to the General Budget despite the fact that the EDF is administered

by the European Commission (Dearden, 2006) as is the General Budget. The EU-ACP

Partnership is currently implementing the 9th EDF which is known as the Cotonou

Agreement. The general objectives of the 9th EDF are " ... to promote and expedite the

economic, cultural and social development of the ACP States with a view to contributing

to peace and security and to promoting a stable and democratic political environment.”

(http://www.eubusiness.com/funding/europaid). The EU-ACP Partnership is focused on the

objective of reducing and eventually eradicating poverty consistent with the aim of

bringing about sustainable development and eventually facilitating the gradual

integration of the ACP countries into the world economy.

The ACP countries and the EU are jointly responsible for ensuring the proper, prompt

and efficient execution of projects and programmes that help achieve the development

objectives of the EDF (European Commission, 2004). The Guide to Financial

Procedures of the EDF, issued by the EuropeAid Cooperation Office of the European

Commission, constitutes the overall structure for project preparation and

implementation. It includes a section that covers public contracts/procurement in

general with reference to works contracts, supply contracts and service contracts.

According to the European Commission (2004), the preparation and award of public

contracts is governed by the General Regulations Applicable to Works, Supply and

Service Contracts financed by the EDF3, while the specific procedures to be followed

are described in detail in the Practical Guide to contract procedures for EC external

actions (European Commission, 2004).

The Practical Guide is the sole working tool, which explains the contracting procedures

applying to all EC external aid contracts financed from the EU’s general budget and the

EDF. The purpose of this working tool is to provide users with all the information

necessary to undertake procurement from the very first steps to the award of contracts

(Practical Guide to Contract Procedures for EC External Actions, August 2006:6). Despite the fact

that the Practical Guide is applicable to both the EU’s General Budget and the EDF,

certain specific procurement procedures are restricted to procurement with funding from

3 These are contained in Annex IV of the Cotonou Agreement.



the general budget and others are imposed only on funding from the EDF. These are

highlighted throughout the Practical Guide and a closer look shows the weaknesses of

these provisions. For example the competitive negotiated procedure is restricted to

General Budget funding, while the simplified procedure is imposed under EDF funding

for use under similar circumstances (European Commission, 2006). It is clear that this

makes procurement under the general budget less onerous because some requirements in

the procedures are circumvented. Note that beneficiaries of EU funding do not

participate in the procurement process under General Budget funding since it is a

dispensation of the European Commission and the result is that procurement

practitioners using general budget funding appear to perform more efficiently and

effectively than procurement practitioners using EDF funding. The integration of the

EDF into the General Budget would lead to greater cost effectiveness and harmonised

procurement procedures would improve the value-for-money derived from EDF

funding. This is emphasised by the European Commission (2007) who stated that the

unification of administrative and legal rules, decision-making structures, and

commitment and payment procedures would remove a certain amount of duplication.

The Commission also stated that this would help simplify reporting requirements,

reduce the administrative burden on beneficiary countries and respond in a more

efficient manner to the challenges faced by developing countries

(http://europa.eu.int/scadplus/leg/en/lvb/r12110.htm). Overall it would add to obtaining more

value-for-money in the quest to reducing and eventually eradicating poverty.

In addition, standard tender documents are provided in two distinct sets, which

respectively apply to the EU’s general budget and to the EDF (European Commission

2007). Again this stresses the differences in the input required from procurement

practitioners using the general budget funding and those using EDF funding.

The Practical Guide is composed of a brief introduction that highlights its purpose and

its application, and five detailed sections covering the basic rules for contracting, then

specific rules for service, supply and works contracts, and contracts financed through

grants. The Practical Guide does not apply to contracts for which the EC acts as the

Contracting Authority (CA) on its own account, but it applies to contracts where entities

of the country benefiting from the EDF acts as the Contracting Authority.



3.2.3 AfDB Procurement Regulations

Procurement under AfDB-financed contracts is carried out in accordance with the

requirements stipulated in the Rules and Procedure for Procurement of Goods and

Works, and the Rules and Procedures for the Use of Consultants.

The procurement policy of the AfDB is guided by economy & efficiency in the

implementation of projects, fairness in that procedures must give member countries

adequate, fair and equal opportunity to compete, development & participation of

contractors and supplies from member countries, and transparency in the procurement

process in order to combat fraud and corruption

(http://www.newportalgolive.strategydocs\aboutus\howwework).

The AfDB has issued separate documents outlining the laid down Rules of Procedure

for procurement of goods and works for contracts financed in whole or in part by a loan

from the ADB and the use of consultants on projects financed in whole or in part by a

loan from the ADB. The purpose of these Rules is to inform those carrying out a project

of the arrangements to be made for procuring the goods and works required for a project

and selection and use of consultants on the project (Rules of Procedure for Procurement of

Goods and Works, January 2000:2).

3.2.4 KfW Procurement Guidelines

Procurement under the KfW is regulated by the Procedures Followed in the Financial

Cooperation of the Federal Republic of Germany4, a document issued by the KfW

Development Bank. The development policy of the Federal Republic of Germany aims

at improving economic and social living conditions in developing countries through

bilateral, government-to-government cooperation (Procedures Followed in the Financial

Cooperation of the Federal Republic of Germany, 2006:2). This policy document outlines the

purpose of financial cooperation, the forms of financing and assistance provided, and

gives the terms and conditions of financial cooperation with the Federal Government.

4 Available online, at www.kfw.de/



The Procedures include a section on project implementation that gives a brief outline of

how consultants should be engaged and how the tendering procedure for goods and

services should be executed. This section includes the use of public tenders and

minimum advertising requirements, KfW approval requirements and general

requirements pertaining to drafting of contract documents.

KfW has developed a set of detailed guidelines for procurement of supply and work

contracts and another set for assignment of consultants. The guidelines are structured

such that they are all-inclusive in that they outline all the minimum requirements for the

award of contracts, including draft standard bidding and contract documentation in one

volume. This is unlike the World Bank, EDF and AfDB guidelines and documentation,

which have separate volumes for the guidelines, bidding documents and contract

documents.

3.2.5 NDF General Procurement Guidelines

Through it’s mission and strategy, the Nordic Investment Bank (NIB), established by

Denmark, Finland, Sweden, Iceland and Norway, promotes sustainable growth of its

member countries by providing long-term complementary financing to projects that

strengthen competitiveness and enhance the environment, by promoting competitiveness

and providing financing in the form of loans and guarantees for activities in which NIB

can add value and complement other financing sources

(http://www.nib.int/news/news_1.html).

NIB puts particular emphasis on projects involving:

• investments in infrastructure;

• investments improving the environment;

• large investments by the corporate sector; and

• small and medium-sized enterprises, targeted in cooperation with financial

intermediaries.

Procurement of contracts financed by the NIB is regulated by the "General Guidelines

for Procurement" issued and published by the NIB (www.ndf.fi/page3be.shtml/). These

guidelines are intended to provide contractors, suppliers and promoters with information



on the procedures relating to tendering and briefing of potential tenderers, while placing

emphasis on transparency and accountability in procurement (NIB General Guidelines for

Procurement, February 1999: Foreword). The NIB Guidelines are issued in form of a brief

brochure meant to serve as a general guide rather than a detailed manual, whereas

further or more detailed information is available from the lending departments of the

Bank, which provide finding to the NDF.

Somewhat like the KfW guidelines, the NDF Guidelines are in form of a brief brochure,

comprising a general section that clearly states that the rights and obligations of the

parties to NDF financed contracts are governed by the contracts signed by the Recipient

or implementing agency and the providers of goods, works and services and not by the

NDF Guidelines or the agreement between Nordic countries and the Recipient of

funding. This general section also underscores the point that NDF principles follow

internationally recognised practice used by the World Bank and other regional

development banks, referred to as Lead Agencies, by including clauses in NDF-financed

contracts that are in accordance with procurement guidelines of the Lead Agencies (NDF

General Procurement Guidelines, June 2000:1). Unlike the World Bank, EDF and AfDB, the

NDF does not issue detailed procurement guidelines of its own, but relies on those of

Lead Agencies.

3.3 SECTOR WIDE APPROACHES

According to Dickinson et al (2007) and Garner et al (2000), the sector-wide approach

(SWAp) is a relatively new way of working between governments and donors. It is one

which a large number of donors are starting to favour, though it also has its opponents

(Cambodian Development and Rehabilitation Board, 2002). SWAps are a new

development in the organisation of aid to developing countries where donors and

lenders collectively contribute to funding the entire economic sector to ensure that the

aid given makes the most impact (Garner et al, 2000). SWAps work differently in

different countries, but they are all designed to focus on the whole of a particular

economic sector with the following features (http://www.eldis.org/go/topics/resource-guides):

• All significant government and donor-funding for the sector supports a single

sector policy and expenditure programme.

• Government leads the process and its implementation.



• Common approaches are adopted across the sector by all parties.

• There is deliberate progress towards relying on government procedures to

disburse and account for all funding under the SWAp.

SWAp programmes under government leadership ensure the adoption of common

approaches to planning and implementation, as the Mozambique experience has shown

that the alignment of global programme activities with national development strategies

is essential for effective implementation (Dickinson et al, 2007). SWAp mechanisms

should strive for inclusiveness if aid is to be made more effective through more

efficient, effective and consistent donor support, where all significant sector investments

are channeled towards the same objectives, following a consistent strategy that is guided

by a consolidated investment plan (Hansen 2004). As indicated by Garner (2000),

donors are embracing SWAps enthusiastically, and they have been introduced in several

countries, including Zambia, Ghana, and Bangladesh, but the realities of their impact

have not been tested much. As explained by Sangowawa (2000), the recipient country

and the donor community negotiate and agree policies and plans for development in the

sector, including resource allocation, and the potential benefit is that money is spent on

priorities set by the country, not external agencies, adding efficiency to management

through the country's existing structures. For poorer countries, with many donors

contributing to the sector, SWAps could dramatically improve the effectiveness of donor

aid (Rashid, 2000).

The Council for the Development of Cambodia (2003) emphasizes that a key

component of the SWAp process is Aid Coordination. In the Education Sector Donor

Report 2002, the Council added that all significant funding in the sector supported a

single sector policy and expenditure program, under Government leadership, adopting

common approaches across the sector, relying on government procedures to disburse

and account for all funds (http://www.cdc-crdb.gov.kh/cdc/practices_chapter6.htm). This paved

way for a shift from donorship to partnership, and eventually to ownership since SWAp

was launched in education sector and government ownership had definitely been

enhanced (Council for the Development of Cambodia, 2003).



3.4 SUMMARY & CONCLUSIONS

Bilateral and multilateral donor institutions that provide funding for construction

projects in Zambia have different procurement guidelines and procedures. Clearly there

are some similarities and differences in the guidelines and procedures for managing

procurement and how they are applied. KfW and NDF guidelines tend to favour the use

of country systems and enhance local ownership, while those of IDA, EDF and ADB are

more conservative in relinquishing overall responsibility and control over procurement

functions and decisions making.

However, the introduction and use of SWAp mechanisms and processes is forcing

bilateral and multilateral donor institutions to relinquish the overall responsibility and

control over procurement management functions and decisions making to recipient

governments in order to shift from donor driven programmes to partnerships, and

eventually this should lead locally led project implementation. This has been seen to be

able to improve the effectiveness of donor aid in some countries.

The next chapter documents the rationale, methodology, findings and analysis of the

research carried out by the author on the role and effect of procurement management on

economic and efficient delivery of outputs and outcomes on donor-funded construction

projects.



CHAPTER 4. RESEARCH METHOD

4.1 INTRODUCTION

Chapters 1 through 3 have examined procurement management in relation to overall

project management and in particular donor-funded procurement systems, regulations

and guidelines. Chapter 2 focuses on how others consider the effect of traditional

procurement systems on the efficient and effective delivery of project outputs and

achievement of project objectives. This chapter covers the development and justification

for the selection of an opinion-based survey as against other types of research methods.

The aim of this study is to highlight the shortcomings and areas of concern relating to

donor-funded procurement that can be addressed locally, while providing insight to the

donor community about some of the inefficiencies and ineffectiveness of current

procurement systems, by answering the research questions raised in chapter 1, which

are:

i. Do the procurement systems used on donor-funded construction projects in


as well as adhering to time and cost constraints?;

ii. Should the procurement systems used be agreed upon mutually from the onset of

the projects or be agreed upon as the project is being implemented?; and

iii. Do the procurement systems used create any unintended consequences that have

a negative impact on overall project performance?

This chapter starts out with a review of the work of others and explaining the main

factors that influenced the selection of the opinion-based survey as an appropriate

technique for this study. It follows through with a justification of the use of a survey-

based approach. Having made this justification, the research questionnaire is developed

by first focusing on the factors of the working environment that may influence the

opinion of the respondents, before directing the probe towards the actual opinion of the

respondents. The research instrument (in this case a questionnaire), was structured with

closed-format questions after due consideration of the type and nature of the data

sought.



4.2 CRITICAL REVIEW OF A SURVEY-BASED APPROACH

4.2.1 The Surveys

The following critique is based upon a review of survey-based research into

procurement management arrangements published in various forms during the period

from 1998 through to 2008.

Using a questionnaire survey Love et al (1998), carried out a research to determine the

influence of different project types and procurement methods on rework costs in

construction projects. It was widely recognized that additional costs due to rework can

have an adverse effect on project performance, although limited empirical research had

been done to investigate the influencing factors. Data was obtained from 161 Australian

construction projects in order to analyse the direct and indirect consequences of rework.

The findings showed that, much to the contradiction of the researchers’ expectations,

rework costs do not differ relative to project type or procurement method. In addition, it

was found that rework contributed an average of 52% of a project's cost overrun and

26% of the variance in cost overrun was attributable to changes due to direct rework.

The researchers observed that since project type or procurement method did not affect

rework costs, in order to reduce rework costs and improve project performance,

construction organisations should begin to measure them, understand their magnitude

and root causes, and then put in place effective prevention strategies.

Through a national questionnaire survey administered to clients, architects, quantity

surveyors, engineers, project managers and general contractors in South Africa, Bowen

et al (1999) carried out an empirical study into the nature and effectiveness of the

project briefing process, and the selection and effectiveness of procurement methods in

the attainment of client objectives. The study revealed that an effective client briefing

process and the selection of an appropriate construction procurement system both

contribute to the attainment of client objectives with respect to time, cost and quality for

construction projects. The results showed that room for improvement exists in the



manner in which project briefing is conducted and subsequently, the manner in which

procurement methods are selected.

Omar et al (2001), used a questionnaire survey, in the Philippines and Uganda, in order

to analyse the conditions for effective procurement strategies and ascertain what

conditions were suitable for decentralised procurement strategies to prove most

effective. Data collected showed that both of these countries undertook ambitious and

well-documented decentralisation programs in the 1980s and 1990s. Some difficulties

arose due to the sheer variances between the two countries’ systems and social

dynamics. Some questions could not be asked the same way in both countries. For

reasons of precision and resource constraints, some of the methods used in Uganda had

to be adjusted in the Philippines, although there were a lot of circumstances where

questions and data were comparable. The survey covered 20 provinces, 81

municipalities and 301 neighborhoods 1120 households in the Philippines. Where

households were selected provincial and municipal administrators, health officers and

education officers were also interviewed in order to provide supplementary data.

Similarly, in Uganda, where data was collected in 75 sub-counties, chosen randomly

from 10 selected districts, officials were interviewed in each district as well. Findings of

the research showed that hierarchical constraints were quite prevalent, where local

officials reported substantial restrictions on their ability to adjust funding and service

delivery to local demand, while officials at the district level reported significantly more

discretion, let alone those at provincial level.

The survey revealed some problems of data quality and comparability, although there

was more difficulty in collecting complete and reliable data in Uganda. This was

attributed to the variances between the systems and social dynamics and the questions

that could not be asked in the same way. The research team performed several reliability

tests that proved that the data collected in Uganda was less reliable than the data

collected in the Philippines. Also, the researchers could not collect time-series data to

enable them compare the conditions before and after decentralisation.

Chege and Rwelamila (2002), reviewed the relationship between risk management and

the choice of procurement systems by using a research project that had been carried out

in Botswana in 1992 and a follow-up study of projects in five other Southern African



Development Community (SADC) countries as case studies. These case studies assisted

in emphasising the importance of employing the appropriate procurement selection

criteria and the implications on risk management if that was not done. The paper

discussed the link between risk management and the choice of procurement systems in

the construction industry. According to Chege and Rwelamila (2002), research had been

done on the use of various procurement systems in construction, but not enough

emphasis had been placed on the link between the systems and risk management. One of

the main objectives of using systems other than the traditional procurement system is to

transfer risk to the party that is more capable of dealing with it. Some projects involve a

higher level of risk than others; hence a client needs to choose the procurement system

that is best suited for a particular project after analysing the risks involved. The

principal aim of this review was to highlight the link between risk management and the

client’s choice of procurement system. By looking at the several different types of

procurement systems that had evolved over the years (with the aim of achieving project

objectives), the findings showed that procurement systems can be viewed as an

important tool for risk management. The construction industries in Africa and other

continents face a similar problem and need to improve their risk allocation methods and

procurement strategies. Chege and Rwelamila (2002) recommended that awareness of

the link between the different procurement systems and risk management should be

increased through the efficient dissemination of literature on various risk management

and procurement approaches to project stakeholders.

Luu et al (2003) carried out an empirical survey-based study in Australia with clients

and project managers to uncover the importance and interrelationships of identified

procurement selection parameters. The results indicated that the perception of clients

and project managers on the importance of procurement selection parameters was

generally consistent and that underlying relationships exist among the parameters. The

results also brought to the fore the fact that there was a need for clients to ensure that

interrelated procurement selection parameters are not overlooked when assessing the

suitability of construction procurement systems. The lack of structured procedures,

based on all-embracing and reliable information, for the selection of construction

procurement systems sometimes inhibits the opportunity for clients to choose a

procurement option in a fully informed manner. The researchers revealed that selection

and use of an unsuitable procurement approaches could eventually lead to project



failure. To formalise the procurement selection procedures, clients should establish a set

of appropriate procurement selection parameters based on their distinctive

characteristics and project objectives, specific requirements, and the external

environment. In the paper prepared for this study, a list of 34 procurement selection

parameters were drawn up according to the findings of researchers in procurement

selection.

Ogunlana and Sysavath (2003) derived primary data from questionnaires and interviews

conducted through government departments in Lao. The respondents were mainly

professionals in the construction industry such as donor representatives, contractors,

government officers and engineers. Secondary data were obtained from various

ministries in the form of documents, reports, rules and regulations, guidelines and

procedures prepared by the government institutions and consultants. The questionnaires

comprised both open-ended and close-ended questions. 40 questionnaires were sent to

government ministries managing infrastructure projects and 9 government engineers

were also interviewed. A total of 21 samples were returned (52.5 % return rate). 40

questionnaires were also sent to large companies, of which 15 were returned (37.5%

response rate). Data analysis and interpretation basically used statistical methods.

The findings showed that the problems associated with contract management in Lao

need urgent attention and the shortcomings of owners in contract monitoring and

contract administration lead to many delays, poor quality and cost overruns. Although

there were foreign consultants engaged to carry out construction supervision, problems

still existed. Even where there were guidelines and standard bidding documents

developed by consultants they were not effectively utilized for project implementation.

Various problems were found, such as:

1. Contractors were not able to comprehend and interpret contract documents.

2. Many local contractors had no financial capability.

3. Some contractor’s equipment were not sufficient to carry out the projects.

4. Contract conditions were not strictly enforced especially the defects liability clause.

5. Roles and functions of consultants and the engineers were not clear.

6. Various contract clauses were neither fair nor conforming to the local circumstances.



Finally, Ogunlana and Sysavath (2003) noted that evidence from other previous

researches showed that the contract related problems identified in their study were not

unique to the Lao situation. Rather they were common problems in developing countries

where foreign contract practices were introduced without adequate consideration of the

local customs and practices.

Heath and Stewart (2003), used a survey-based approach to directly compare online and

postal data collection methods with the same survey instrument on two samples drawn

from the same population of football club subscribers. The findings showed that the

widespread acceptance of the use of online techniques in market research necessitates an

appreciation of the relative advantages and disadvantages of these techniques over more

traditional research methods. The results confirmed that the online and postal

respondents are demographically different. The researchers revealed that online data

collection is shown to be less expensive per respondent and that data collection is faster,

however, an overall lower response level is achieved relative to the postal data

collection method. Of greater importance, though, were the findings that respondents

seemed to answer questions differently online than they do via postal methods. The

conclusion there was that online data collection should not be treated as a direct

substitute for postal data collection in every instance, but must be used where cost and

time constraints justify it.

By employing a survey-based approach, Kong and Gray (2006), reported on an

exploratory interview survey of construction project participants aimed at identifying

the reasons for the reduced prevalence in use of the traditional procurement system in

Malaysia. The results showed that primarily most people believed the traditional

procurement system was too slow. This appeared to be in part due to the contiguous

nature of the various phases and stages of the process and especially the separation of

the design and construction phases. The report also disclosed that delays caused by

disputes between the various parties were also seen as a contributory factor to lack of

effective project delivery and the frequency of variations was the most prominent cause

of cost and time overruns. Design and scope changes during the construction phase were

a particular source of discontent to contractors and clients alike. It was concluded that

an improvement of the whole of the time related reward/penalty system might be the



most appropriate measure for the effectiveness of the procurement system used in

future.

Ndandiko (2006) revealed that the performance of PPPs in developing countries

especially Sub-Saharan Africa does not seem to reflect the optimism of their success,

especially in the context of local governments. The traditional procurement system of

delivering public infrastructure and services through fiscal budgets is increasingly

becoming unviable in developing economies due to budget deficits. According to Chege

(2001) macroeconomic instability and growing investment requirements have shown

that public financing is limited, volatile and often inefficient. This has necessitated the

consideration of PPPs and studies have suggested that they constitute a viable option

and may even dominate infrastructure and service delivery in developing countries.

However, Ndandiko (2006) argued that in the absence of strong public and/or private

sector institutions, and an adequate legal framework, an unsystematic introduction of

PPPs in local governments could worsen infrastructure and service delivery and are

unlikely to benefit the public client. In conclusion, he attempted to highlight the flaws

and constraints in extending the PPP approach to local governments in developing

countries. The major constraint the revelations purported was the lack of PPP

prerequisites, such as, policy guidelines, regulatory frameworks and strong public and

private sector institutions.

4.2.2 Limitations of the Survey-Based Approach

The survey-based research cases presented in the last section have raised some areas of

concerns mainly regarding the demographics and reliability of the data captured. Once a

questionnaire is administered, control over the environment is limited and this

sometimes manifests into low response rates. This can be seen in cases like Omar et al

(2001), and Ogunlana and Sysavath (2003), where researchers had to use supplementary

questionnaires or interviews to improve the response rates. Problems of comparability of

data obtained from two different sample groups also arose in the case of Uganda and the

Philippines, although these were mitigated by adjusting some of the questions in the

questionnaire to suit the local environment. This still raised issues of data quality, since

there was more difficulty in collecting complete and reliable data in Uganda.



Variances between the procurement systems and social dynamics of the respondents

when a questionnaire survey is used may affect the reliability and validity of the

responses in terms of differing comprehension levels. Where interviews are used the

interviewer can provide clarifications immediately and issues of comprehension do not

arise with case studies which are concerned with particular events on a particular case.

More elaborate questionnaire design or administration may provide slightly better data,

but the cost of such a questionnaire can be much higher and offset their economic

advantage. However, as seen in the Uganda sample reliability tests on the data collected

can be used to check against this concern.

The inability to collect time-series data when using the questionnaire survey-based

method is another limitation of this approach. For example, it makes it difficult to

investigate how the several different types of procurement systems that have evolved

over the years, have impacted on achieving overall project objectives. Most of the

respondents to a questionnaire survey are not likely to have experienced the evolution of

procurement systems in similar social and economic environments over a period of

time.

The results of Heath and Stewart (2003) that confirmed that the overall response level

achieved is lower with online data collection relative to the postal data collection

method and the different manner in which questions are answered also raises concerns

that require some attention. These concerns can be mitigated by the increased number of

the target sample size achievable when the internet is used and the average amount of

time required to carryout the survey. However, it should be noted that even though the

administration of a questionnaire through the internet reduces the amount of time

required to respond and also conquers the issue of geographic diversity of the sample

group, there is no guarantee that responses will be received in good time, if at all.

Needless to say that, although the review carried out indicated that procurement systems

are increasingly being used as tools for risk management in order to improve project

performance, it also brought to the fore a lack of adequate evidence of research on

procurement systems used specifically in developing countries to enhance value-for-



money realised from donor-funded construction projects. The review showed that more

research seems to have been done on procurement strategies used during project

implementation to enhance value-for-money on construction projects.

4.2.3 Justification of Survey-Based Approach

Gable (1994) proposes that integrating case study and survey research methods and

more specifically that for combining qualitative and quantitative methods, is appropriate

where a hybrid form of information is the objective of the research. The emphasis here

is on the qualitative case study method being able to compliment more quantitative

survey research and can be applied to answer the research questions. The question that

arises here is “would a case study approach justifiably add valuable information to the

results of the survey, in order to meet the objectives of the study?” In order to get a non-

biased assessment using the case study approach, the reality is that several case studies,

funded by different donors, would have to be considered in order to get meaningful

information that can be used to address the objectives of the study.

There are several methods of conducting research, such as, carrying out experiments,

interviews, case studies or surveys. The difference in research method applicable to the

circumstances here can be illustrated through a hypothetical example.

Suppose that the objective of the study is to assess whether the current procurement

systems in place under World Bank funding have any impact on time and cost overruns

on construction projects. In the first instance those who come to mind are those most

familiar with World Bank procurement systems; i.e. procurement professionals either

with the World Bank or working on World Bank funded projects and engineers working

in government departments, such as, roads and buildings department. Ideally, these are

the people who should form the sample to either be interviewed or answer a structured

questionnaire. The question that arises is whether these respondents are likely to be

impartial in providing responses. To some extent their responses may be impartial.

However, considering that all on them are key participants in the project delivery

process, the procurement professionals may not be keen to accept that the systems they

put in place or use without questioning, create unintended consequences that lead to



time and cost overruns. In a similar vein, the engineers working in government

departments may not be keen to agree that the time and cost overruns are caused by their

lack of comprehension of contract documentation or lack of adequate project

management skills.

To take this illustration further, in order to have some level of impartiality in the

responses, other key participants in the project delivery process must be included in the

sample. These may be project managers and financial management personnel in the

same institutions as the procurement personnel referred to earlier. This brings us to the

issue of other stakeholders such as the consultants and contractors. Do they form a

reliable source of information? Do they play a role in mitigating or can they contribute

to reductions in time and cost overruns? Let’s assume that they are also included in the

sample group.

The next step would be to come up with a suitable approach to gathering the required

data and information from the sample group. Interviews are an option and they may be

either personal interviews, telephone interviews or online interviews. Personal

interviews require face-to-face meetings with the participants either formally, such as in

an office, or informally, on site or at home. Telephone interviews are very costly

requiring that you spend quite some time on the phone with each respondent and it can

be quite difficult to get the sort of participants that can provide the information required.

Online interviews require the participants to be available real-time and they must have

the technological support to participate. With the interview method, subjective

information is obtained from the participants (Chikasa, 2006) and this usually generates

a wide range of responses that are qualitative in nature and cannot easily be analysed.

Going back to our hypothetical situation, we should note that, although a large

proportion of it is in the capital city, the sample group we have is essentially spread

around the country and may not be easily accessible considering constraints such as the

amount of time and funds available for the survey.

Other options, like case studies would provide the opportunity to focus on contemporary

events, particular projects or organisational behaviour in real situations (Yin, 1994) and

the researcher would basically be an observer. In the hypothetical situation the objective

is to collect current data from individuals currently involved in the implementation of



construction projects funded by the World Bank. Those currently supervising or

implementing projects are involved in different projects, with different circumstances

and in different organisational environments. This is in direct contradiction with the

contemporary events and particular projects referred to by Yin (1994). In addition,

according to Edwards (2008), case studies are mostly applied to answer research

questions that ask why and how a situation occurred, in order to explain the why and

how. In the example presented, there is no particular situation to observe. In fact, there

may be a range of situations attributable to the variances between institutions and

project environments. The only homogeneous platform in the example would be the

procurement systems currently in use under World Bank funded projects. The example

asks the question whether, not why. The case study approach would therefore be

unsuitable for the kind of study for the example.

The survey-based approach is justified by several factors that surround the environment

within which this study has been undertaken and the very nature of the data required to

answer the research questions. The survey instrument is designed to address the issues

raised in chapter 2 and 3, while taking into account the limitations of the approach. Love

et al (1998) emphasised that where there has been limited empirical research, often

questionnaires are the only feasible way to reach a number of reviewers large enough to

allow statistical analysis of the results. The approach adopted for the study, allowed for

a structured questionnaire to be administered through the internet. This approach

provided an inexpensive way to gather data from a potentially large number of

respondents spread over a large geographic area. By administering the the survey-based

structured questionnaire through email, the marginal cost of surveying was also reduced,

making the larger sample possible.

The amount of time it would have taken to use any of the other options discussed herein

would have made it virtually impossible for the study to be completed within the time

constraints. Assuming that only the data gathered within the time constraints through

either interviews or case studies were to be used, there is every reason to doubt that the

sample could be considered representative of the overall population enough to lend

validity to the findings. This further justified the use of a survey-based questionnaire

administered through email.



In summary, basically 3 likely approaches available for collecting data on this subject

have been discussed. Out of the 3, only the survey-based approach has been considered

suitable considering all the constraints surrounding the study and therefore this approach

has been selected. On the whole, this approach shall be used to collect qualitative rather

than quantitative data.

4.3 DESIGN OF THE SURVEY INSTRUMENT

4.3.1 Design Considerations

According to Creative Research Systems (2008), there is no all encompassing rule for

when to use a questionnaire. The choice will be made based on a variety of factors

including the type of information to be gathered and the available resources for the

experiment. A questionnaire may be considered in the following circumstances:

i. When resources and money are limited in terms of funding and time available;

ii. When the issue of confidentiality on the part of the respondents is paramount;

and

iii. When just corroborating other findings, such as confirmation of findings of a

scientific experiment.

In this case the rationale was the constraints of cost at time available to the author. The

questionnaire was designed as an opinion-survey questionnaire with closed format

questions the solicited answered from a specific range of options provided by the author.

A well-designed questionnaire that is used effectively can gather information on both

the overall performance of a system as well as information on specific components of

the system (http://www.cc.gatech.edu/Topics/quest-design/). Open format questions are those

that ask for unprompted opinions, with no predetermined set of responses. Open format

questions are good for soliciting subjective data with an obvious advantage of a variety

of responses more truly reflecting the opinions of the respondents

(http://www.cc.gatech.edu/Topics/quest-design/). By restricting the answer set, the intention was

to gain an advantage in less time spent responding to the questions and it made it easy to

calculate percentages and other hard statistical data over the whole group or over any



subgroup of participants (O’neill, 2004). Responses to closed format questions are easy

to tabulate or perform statistical analysis on them. This was obviously less costly in

terms of both time and money, and was practical for a low budget and time sensitive

analysis. Open format questions require more thought and time on the part of the

respondent and these issues were be eliminated by using closed format questions.

4.3.2 Justification of the Survey Questions

The study explored a number of issues relating to procurement systems, regulations and

guidelines that affect overall project performance. Another area explored was explored

is the perception of the respondents in terms of the relative importance of various tenets

of public sector procurement. Due to the nature of the study these issues, as presented in

chapter 5, are also based on the different experiences and perceptions of the respondents

with due regard to:

i. General occupational background;

ii. Procurement management and operational environment; and

iii. Appreciation of donor-funded procurement.

General occupational background may influence the opinions of the respondents in

terms of what nature of organisation they belonged to, what level or position they hold

in the organisation, their geographic location (i.e. whether urban or rural area), whether

they are procurement practitioners or not and how regularly they are involved in the

implementation of donor-funded construction projects. For instance a procurement

practitioner who is in a strategic decision making level located in the capital city would

have more regular engagement with donor institutions than one located in a provincial

town. Similarly, a procurement practitioner at senior officer level may have a different

perception of the restrictions posed by regulations and guidelines than someone at

director level, simply because of their different roles in the organisation. The

questionnaire addresses these issues in section A and a few of the questions in section B.

The procurement management systems in a workplace obviously differ depending on

the nature of the organisation, its organisation structure and whether it is public sector

institution or private sector institution. Other areas regarding operational environment



are affected by the value of contracts and, the category and type of procurements usually

undertaken. Donor institutions are more regularly involved in high value procurements

that are more risk averse and the systems imposed on the different category and type of

procurement also differ. It should be appreciated that procurement practices in public

sector organisations also have to be in compliance with the national legal instruments

that govern the use of public resources, unlike private sector organisations. In order to

try and appreciate the likely inclinations of the respondents the questionnaire posed

several questions that delve into theses issues.

In order to appreciate what extent the respondents were knowledgeable of the subject

matter of the study, it was necessary to explore the level of involvement in donor-funded

procurement in terms of whether or not they were involved in the recent past, how

regularly they were involved and whether they were actually involved in construction

projects. For instance a procurement practitioner who is regularly involved in the

implementation of donor-funded construction projects would have more appreciation of

the day-to-day bottlenecks the procurement regulations and guidelines present than one

who is rarely is involved in donor funded projects, let alone someone who is not even a

procurement practitioner. The questionnaire also queried this was in order to gauge what

proportion of the respondents actually was involved in donor-funded projects and

whether the inferences taken from the sample group can be considered valid.

It cannot go without saying that, as with any other profession or discipline, the tenets of

public sector procurement are the hallmarks around which the “systems” (institutional,

reporting and oversight arrangements) and the “regulations and guidelines”

(procurement documentation outlining procedures), are designed. Hence, the final

section of the questionnaire was devoted to the tenets of public sector procurement.

The results of the survey are set forth in detail in the next chapter that also presents the

analysis and interpretation of the findings.



4.3.3 Structure of the Questionnaire

The basic structure of the questionnaire was designed to address the research questions

and solicit answers that could be used to test the hypothesis. Due consideration was

taken to incorporate the different peripheral experiences and circumstances of the

respondents considering occupational background, varying organisational systems and

arrangements in workplaces and the contrasts in application of procurement regulations

and guidelines in the various economic sectors.

The questionnaire was structured into four sections. Section A covered the general

background information of the respondent. Section B followed through with questions

that drew the occupational details of the respondents, while section C solicited for the

specific views of the respondents on donor-funded procurement in relation with their

personal experiences over the past four years. Finally, section D dealt with the

perceptions of the respondents of the relative importance of the various tenets of public

sector procurement.

Section A brought out background information, such as, the country of residence of the

respondent, the current organisation they are employed in, what level or position they

are in the organisation and their geographic location in terms of capital city, other city,

provincial town, peri-urban area or rural district.

Section B looked into the occupational details, which relate to whether the respondent is

a procurement practitioner, whether their day-to-day operations involve donor-funded

construction works projects and what the value of the projects they have been involved

in are. In addition, the section digs into what method of procurements are usually used

and why the particular methods of procurement are selected. The section also addresses

what the effect of modifying the general procurement norm of open tendering is and

whether the respondents are of the opinion that the systems and regulations used on

donor-funded projects help deliver value-for-money.

Section C addressed the specific views of the respondents in terms of whether current

procurement systems, regulations and guidelines being used help meet quality

requirements, regarding time and cost constraints. The section also explores whether the



procurement systems, regulations and guidelines should be subject to mutual agreement

and also be flexible during project implementation, or not. Another point investigated

here is whether the procurement systems used create unintended consequences that

actually have a negative impact on project performance and what areas should be

focused on and modified in order to improve overall project performance.

Section D then focused on the tenets of public sector procurement in terms of whether

they are considered of utmost importance, very important, only desirable or not

important at all. Some of the tenets found to be considered most important are

transparency/accountability, professionalism/integrity and value for money. Others that

were considered in the survey are efficiency, competitiveness, capacity building,

creativity/innovativeness and the use of local inputs on construction projects.

4.4 CONCLUSIONS

This Chapter has presented a critical review of the extant of the survey-based

procurement research with a bias towards donor-funded procurement in developing

countries. The chapter has justified the use of an opinion survey-based approach for

collecting data in order to answer the research questions raised and test the hypothesis

developed in Chapter 1. The development of the survey instrument has been described,

after providing a synopsis of the considerations made when designing the questionnaire

and a justification of the survey questions. In the next chapter the detailed results of the

survey are presented together with an analysis of the data and an appropriate

interpretation of the findings of the study.



CHAPTER 5. OPINION SURVEY ADMINISTRATION, DATA ANALYSIS & INTERPRETATION

5.1 INTRODUCTION

This chapter reports on the administration of the survey, presents the results of the

survey and furnishes an analysis of the data collected. It also provides an interpretation

of the findings. In addition, the chapter covers the issue of whether a “best-value”

selection process should be incorporated into public procurement systems in Zambia.

The objectives of the study were to determine whether procurement systems on donor-

funded construction projects contribute to failure in economic and efficient attainment

of project deliverables, determine the underlying reasons why procurement systems on

donor-funded construction projects continue to contribute to such failure, and provide

insight on the areas surrounding procurement systems that need to be focused on to

improve overall project performance on the donor-funded project portfolio in Zambia.

The chapter underscores the issue of whether procurement systems, regulations and

guidelines used on donor-funded projects contribute to uneconomic and inefficient

delivery of project outputs and goes further to shed light on whether procurement

systems, regulations and guidelines used on donor-funded projects negatively contribute

to quality requirements in terms of time and cost constraints. It also provides some

insight on what the public procurement fraternity recommends as the areas of public

procurement that need to be focused on to improve overall project performance.

Whether a “best-value” selection process can and should be incorporated into public

procurement systems in Zambia is mentioned in this chapter, but shall be covered in

further detail in the following chapter that draws on the conclusions and

recommendations of the study.

5.2 SURVEY ADMINISTRATION

5.2.1 Sample Targeting

The sample for the research was taken by targeting the principal participants in public

procurement, with emphasis on those that participate in the implementation of donor-



funded construction projects. The specific target group was procurement and financial

management personnel in both the public and private sectors directly involved in the

implementation of donor-funded projects in central government ministries and

departments, including local government departments. Through the general membership

of the Zambia Institute of Purchasing and Supply, a mix of respondents from parastatal

organisations, quasi-government institutions, non-governmental organisations and some

large private sector corporations that benefit from investment funding from multilateral

and bilateral donor institutions were also targeted.

The procurement process on donor-funded projects starts early on in the project cycle

during the project appraisal stage. This is after the Loan Agreement has been signed

between donor and recipient and decisions are being made on which regulations and

guidelines are to be used during project implementation, what types of items should be

procured and what different methods of procurement should be used. At this stage the

procurement personnel work closely with the financial management personnel, the

project managers and the project sponsors, in order to ensure that a broad spectrum of

issues that may affect project implementation are considered and taken into account

before decisions are reached between donor and recipient. It was in this light that the

author decided to collect data from the participants in the project appraisal process.

Later in the project cycle, after the project has been commissioned and implementation

begins, in addition to those mentioned in the previous chapter, there are other

participants in the procurement process. These are the user departments who need to

give input on requirements, specifications and terms of reference, and the beneficiaries

of project outputs who may be both from the public and private sectors. The key

participants, in this case, come from central government ministries and departments,

local government departments, parastatal organisations, quasi-government institutions,

non-governmental organisations and some large private sector corporations. Hence, it

was considered appropriate to target respondents from these institutions as well.

5.2.2 The Actual Sample

Apart from 24 relevant email addresses that the author already had, 62 email addresses

for project staff were obtained from the World Bank country office in Zambia. A further



154 email addresses were obtained from the Zambia Institute of Purchasing and

Supply’s database and 5 projects funded by USAID, AfDB and the EU. However, it was

noted that some of the addresses for project staff who were also procurement

practitioners were listed the Zambia Institute of Purchasing and Supply’s database.

These had to be sieved in order to ensure that there was no duplication in the total

sample size. The total sample size was difficult to ascertain, considering that the use of

the internet hinders verification of how many questionnaires were actually delivered.

However, some questionnaires were delivered by hand to key institutions.

The response rate was as follows:

Method Administered Received Response Rate

Email 240 51 21%

By Hand 14 7 50%

Total 254 58 23%

The questionnaire was initially sent to the general membership of the Zambia Institute

of Purchasing and Supply, the procurement cadre of the World Bank project portfolio

and their project managers and finance managers. It was then sent to personnel involved

in the implementation of projects financed by other multilateral donor institutions.

Most of the responses were received through the internet and the data was entered into a

spreadsheet. It was inevitable for the author to make physical follow-ups on some

respondents who did not respond by email, but were considered critical in terms of the

involvement of the Ministries they represented in implementation of donor-funded

construction projects. For this reason, 7 responses were received by hand and the actual

sample size came to 58.

5.2.3 Challenges Encountered

Some of the challenges encountered during data collection were the following:

i. The author found it difficult to ensure that all the email addresses obtained for

key procurement and financial management staff involved in the implementation



of donor-funded projects were current and active. This was highlighted by the

number of undelivered emails returned to the author, although the response rate

was acceptable;

ii. Although a strategy of contacting some key respondents in advance and alerting

them to expect the questionnaire was adopted in order to enhance the response

rate from key institutions, this strategy proved to be quite difficult to implement.

It was very difficult to get the relevant people to respond in time as some of

them were reported to be frequently out of office;

iii. Control over the environment of administering the questionnaire, that is, the

services provided by internet service providers, was somewhat limited. This

meant that some responses from the recipients of the questionnaire may not have

been received due to circumstances beyond the control of both the author and the

respondent; and

iv. Despite the fact that the respondents were given two weeks to answer and return

the questionnaires, few of them responded within that period. This led to an

extension of the deadline for receipt of responses and a continuous amendment

of the statistics presented in the following section as some late responses were

being incorporated.

5.3 DATA PRESENTATION & ANALYSIS

The analysis of the data was carried out using Microsoft Excel after taking due

consideration of the presentation and phrasing of the questions in the questionnaire, and

the nature of responses provided for the survey questions. A statistical method of

analysis was chosen as the most appropriate. Using Microsoft Excel made it possible to

tabulate and perform preliminary analyses on the data collected. This technique

provided a clear presentation of the results and allowed for ease in the analysis of the

findings over the whole group of respondents and sub-groups.

This approach was adopted in order to ensure that, despite the fact that the questionnaire

had a total of 34 questions, some of the questions covered background information of

the respondents that shall be presented in the demographics of the actual sample. The



findings and analyses are presented under relevant sub-headings bringing forth the

information required to address the objectives of the study.

5.3.1 Demographics

In order to mitigate the subjectivity of the data collected for this study, the author sent

the questionnaire to as many email addresses as possible to people from different

professions, at different levels within there organisations and from different sectors of

the economy. The sector distribution of the sample is shown in figure 5.1 below.

3%

47%24%

5%

21%

Cabinet Government Parastatal NGO Private

Figure 5.1 Sector Distribution

The respondents were well spread in terms of sector distribution, with 47% from the

public sector, 24% from parastatal organisations and 21% from the private sector. Less

significant representation was 5% from non-governmental organisations and only 3%

from high level political office including office of the vice president and cabinet office.

Taking into account the level of involvement of public and private sector institutions in

the implementation of donor-funded projects, the responses were representative of the

target group. In chapter 1, the statistics presented on donor financing showed that 85%

of the capital expenditure budget actually going towards the financing of infrastructure

projects, which are to a large extent the premise of government ministries and

departments, along with parastatal organisations.



Figure 5.2 below shows that the dominant level within the organisations for the sample

was middle management at 48% with heads of department and senior officers at 19%

and 16%, respectively. Respondents at director level represented only 12% while the

other 5% were those below senior officer level. This largely reflected the level of

personnel in the hierarchy of any typical public or private sector organisation actually

involved in procurement activities. Normally most day-to-day procurement activities are

undertaken by personnel in middle management and senior officer level.

12%

19%48%

16% 5%

Director Head Dept Middle Mgt Sen Officer Other

Figure 5.2 Level in Organisation



81%

10% 9% 0%0%

Capital Other City Prov Tow n Peri Urban Rural District

Figure 5.3 Location of Respondents

In order to incorporate the factor of geographic location of the respondents, the

questionnaire addressed the issue by classifying the respondents by capital city, other

city, provincial town, peri-urban area and rural district. It was found that 81% of the

respondents were located in capital cities, with the other 19% in other cities and

provincial towns. There were no responses from peri-urban areas or rural districts and

this could be attributed to the fact that the use of the internet in peri-urban areas and

rural districts is still very low in developing countries such as Zambia. Of the

respondents 64% were procurement practitioners with at least 64% of them having also

been involved in implementing donor-funded construction projects over the last four

years. The average annual value of procurement processed by the respondents over the

last four years was between U$5m to US$10m, which is considered quite considerable

in Zambia, seeing that only road construction projects are usually valued at more than

US$10m.

The results revealed that 91% of the respondents were from capital and other cities, and

79% were at middle management level and above in their organisations. The location of

the respondents brought to the fore the proximity to where the donor agencies are

situated. The level in the organisations shows how knowledgeable the respondents may



be and their familiarity with the subject matter. It was found that in both cases the

proportions were high, thereby giving a high level of validity to the findings.

5.4 FINDINGS

5.4.1 General Presentation

The results and findings of the research are presented in this section as statistical and

descriptive information followed by an analysis of these findings. The findings are

classified in three relevant sections. Firstly, the occupational details that establish the

respondents’ working environment and level of experience in relation the subject matter.

Then the views of the respondents on public sector procurement, inclined towards

systems, regulations and guidelines used on donor-funded construction projects. Finally,

the core tenets of public procurement in terms of their relative importance.

5.4.2 Occupational Details

Director8%

Head Dept16%

Middle Mgt54%

Sen Officer19%

Other3%

Figure 5.4 Position of Procurement Practitioners

As shown in Figure 5.2, of the 58 respondents personnel in middle management

positions accounted for 49% of the responses received. Similarly, Figure 5.4 above

shows that of the procurement practitioners who responded to the questionnaire 54%

were in middle management. The heads of department, combined with the senior

officers, represented another 35% of the procurement practitioners. Only 8% of



procurement practitioners amongst the respondents had reached director level, lending

credence to the inference that the procurement practitioners would not have much

strategic influence on procurement systems, regulations and guidelines used in

government, parastatals and NGOs. This means that procurement practitioners from the

side of the recipient of the donor funding are often not involved in the project appraisal

stage, when the critical decisions are being made on which procurement systems,

regulations and guidelines should be used during project implementation.

The results showed that 64% of the respondents were procurement practitioners and

72% of them were involved in the implementation of donor-funded projects on a regular

basis. It follows then that the sample group was quite familiar with the subject matter of

the study and this lends reliability to the findings.

It was noted that 71% of the respondents said that the basis of selection of the method of

procurement was the applicable regulations and guidelines. However, most of them also

said that the method of procurement used was usually not the most economic or most

effective. This showed that, despite such high reliance on the regulations and guidelines

for selection of the method of procurement, procurement practitioners involved in the

implementation of the projects are not usually involved in deciding which procurement

systems, regulations and guidelines are to be used. The results also revealed that 21% of

the respondents actually thought that the method of procurement they usually used was

not the most appropriate considering the type and value of the contracts.

However, looking at general involvement in donor-funded projects at any stage in the

project cycle, 71% of the respondents stated that had been involved in the

implementation of donor-funded projects within the last four years. 38% had been

involved very often, 17% were involved quite often, while only 9% said rarely. What is

notable here is that the target group is generally actively involved in the implementation

of donor-funded projects and can be relied on in terms of the validity of the information

provided. The results showed that 78% of the respondents were involved in the

procurement of a combination of goods, equipment, consultancy services and/or

construction works, showing that they should have a broad understanding of the

application of the regulations and guidelines.



5.4.3 Views on Donor-Funded Procurement

A significant part of the research focussed on what the respondents’ personal views on

various areas of interest in public sector procurement and how they considered donor-

funded procurement systems, regulations and procedures in relation to these areas. This

section outlines the findings of the research in relation to value-for-money, meeting

quality requirements, mutual agreement between the donor and the recipient, and

whether there are unintended consequences of the regulations and guidelines followed,

inter alia.

i. Value-for-Money

In the background to this research, the issue of value-for-money was considered

cardinal in the quest to derive more from available limited resources hence

public projects are governed by strict statutory and regulatory provisions

(Heisse, 2002). However, the findings of the study showed that a significant

proportion of the respondents did not agree that the procurement systems used

on donor-funded projects delivered best value. Considering that fact that the

major thrust of the procurement systems, regulations and guidelines used for

donor-funded procurement is to enhance value-for-money, the fact that only

42% of the respondents actually agree to this is quite notable.

Out of the 58 respondents, 48% stated that the practice of short-listing

contractors and suppliers did not have a negative effect on prices, while 19%

thought that factors other than mere short listing contributed to higher costs.

That meant that only 33% of the respondents actually considered that short-

listing has a negative effect on costs and contributes to reduction in overall

value-for-money. This is in contradiction to the use of open tendering as the

default procurement method on donor-funded projects and concurs with the

observations that the dominant traditional construction procurement system used

in the public construction sector is now considered inappropriate as a

construction procurement system (Rwelamila, 2000). Since open tendering

requires that more time is allocated to the tender floatation period than is the

case when a shortlist is used, the fact that more than 50% of the respondents did

not agree that the method of procurement usually used was not the most



economic or effective, lends credence to the statement that the procurement

methods make it difficult to deliver any substantial cost and quality benefits

(Walker et al., 2000). It is important to note that 96% of the respondents stated

that they actually consider other factors rather than technical and financial issues

during the evaluation of bids. In addition, 98% stated that the "best-value"

selection process, which advocates for the formal inclusion of quality issues in

the bid evaluation process, should be applied in public sector procurement.

These are significantly high proportions considering that the sample group was

knowledgeable and familiar with the subject matter.

ii. Time and Cost Constraints

The most significant finding is the revelation that 58% do not agree on delivery

of best value, and yet when the issues of meeting time and cost constraints are

observed the findings show that a larger proportion of the respondents agree that

the systems, regulations and guidelines help meet time and cost constraints.

29

20

9

0

5

10

15

20

25

30

Num

ber o

f Res

pond

ents

Agree Disagree Neither

40

810

0

5

10

15

20

25

30

35

40

Num

ber o

f Res

pond

ents


Figure 5.5 Help Meet Time Constraints Figure 5.6 Help Meet Cost Constraints

Out of the 58 respondents, 29 agreed that the systems, regulations and guidelines

used help meet quality in terms of ‘time’ constraints. This represented 50% of

the respondents compared to 69% who agreed that the systems, regulations and

guidelines used help meet quality in terms of ‘cost’ constraints. Significant

factors identified through quantitative models developed during a study by



Dissanayaka and Kumaraswamy (2006), indicated that time overrun levels were

mainly influenced by non-procurement related factors, such as, project

characteristics and client/contractor representative characteristics. On the other

hand, cost overrun levels were significantly influenced by procurement related

factors, such as contractual payment modalities. This concurs with the shift in

the results of this study that show that procurement factors affect cost

implications more than they affect project duration.

iii. Project Appraisal Stage

The rules that apply to the procurement of construction contracts on donor-

funded projects are agreed during the project appraisal stage early on in the

project life-cycle. This means that the systems, regulations and guidelines that

are binding during project implementation are not subject to negotiation and are

not flexible over the life of the project. The results indicate that 56 of the

respondents agreed that the systems, regulations and guidelines should be

subject to mutual agreement between the donor and the recipient. This

represented 97% of the sample group, while a much lower proportion of 60%

agreed that the systems, regulations and guidelines should also be flexible during

project implementation. Table 5.1 below shows the distribution of the responses

received and notable is the fact that there were no undecided respondents on the

issue of mutual agreement and the flexibility of the terms during

implementation.

Table 5.1 Systems Regulations & Guidelines

Mutual Agreement Counts Flexible Terms Counts Agree 56 97% Agree 35 60% Disagree 2 3% Disagree 23 40% Neither 0 0% Neither 0 0%

These findings imply that, as long as the procurement systems, regulations and

guidelines are subject to mutual agreement and personnel from the recipient of

the donor funding are actively involved in the decision making process at project

appraisal stage, the need for flexibility is reduced drastically.



iv. Impact on Overall Project Performance

Part of the hypothesis formulated for the study was that the procurement

systems, regulations and guidelines used on donor-funded projects create

unintended consequences that have a negative impact on overall project

performance. The questionnaire covered this issue through a collection of

questions focused on unintended consequences and the effect the systems,

regulations and guidelines may have on the economic and efficient attainment of

project deliverables.

40%

34% 26%


Figure 5.7 Unintended Negative Consequences

40% of the respondents agreed that the procurement systems used create

unintended consequences that have a negative impact on overall project

performance, while another 26% neither agreed nor disagreed. Only 34%

disagreed with this supposition, showing the low level of confidence that the

respondents had on the impact of the procurement systems, regulations and

guidelines used on donor-funded projects. However, the respondents have a

higher level of confidence on the effect of the systems, regulations and

guidelines on economic and efficient attainment of project deliverables.



16%

40%

44%


Figure 5.8 Systems Reduce Economy & Efficiency

22%

49%

29%


Figure 5.9 Systems Reduce Economy & Efficiency

Compared with the 40% of the respondents who agreed that procurement

systems used create unintended consequences that have a negative impact on

overall project performance, only 16% agreed that procurement systems used

reduce the economic and efficient attainment of project deliverables. In a similar

vein, only 22% agreed that procurement regulations and guidelines used reduce

the economic and efficient attainment of project deliverables. The implication of

these findings is that, the procurement systems used create unintended

consequences that have a negative impact on overall project performance.

However, these negative consequences so created may not necessarily reduce the



economic and efficient attainment of project deliverables. The unintended

negative consequences may therefore have little to do with economy and

efficiency, but nevertheless, they are caused.

By observing the systems against the regulations and guidelines in terms of how

they affect economy and efficiency, the findings show that almost twice the

proportion of the respondents were not decided on the issue of the effect of the

systems on economy and efficiency. This may be because the systems, that is,

institutional, reporting and oversight arrangements are much less tangible than

the regulations and guidelines, which are laid down procurement documentation.

v. Focus Area

As discussed in earlier chapters, public procurement is subject to an extensive

system of stringent controls, reviews and approvals required by funding

institutions (Anvuur and Kumaraswamy, 2006). It was also stated that fiscal

constraints and restrictive procurement practices had led to insecurity of funding

for construction projects and created delays, thereby contributing to reduction in

value-for-money (World Bank, 1996). Accordingly, this meant that project

implementation was characterised by additional cost, time overruns and hence

poor quality (Crown Agents, 1998: Westring, 1997). With this background it

became necessary to get some insight on the areas of public sector procurement

management that may need to be focused on in order to improve overall project

performance on donor-funded projects.

Table 5.2 Public Procurement Management

Focus Area Counts Reporting & Oversight Arrangements 19 33% Approval Requirements & Procedures 23 40% Regulations & Guidelines 16 28%

The areas contiguous to public procurement systems that directly affect

implementation of donor-funded projects are the regulations and guidelines

followed, the approval requierments and procedures, and the reporting and

oversight arrangements. Table 5.2 shows that regarding the areas of focus that



may require modification in order to improve overall project performance, the

most impact would be by focussing on approval requierments and procedures.

In agreement with Anvuur and Kumaraswamy (2006), 40% of the respondents

consider the stringent approval requirements and lengthy procedures quite

unnecessary. The findings showed that more of the respondents would focus on

modifying approval requirements and procedures in order to improve overall

project performance, rather than the regulations and guidelines that can merely

be read, understood and applied as they are.

5.4.4 Tenets of Public Procurement

Economy and efficiency, transparency and accountability, professionalism and integrity,

competitiveness and value-for-money are some of the tenets of public sector

procurement that the World Bank and other multilateral and bilateral emphasise. The

study analyses these tenets in order to determine how procurement practitioners and

others involved in the implementation of donor-funded projects consider them. The

research also analyses other less emphasised tenets that often come to the fore when

applying public procurement regulations and guidelines. These are the use of local

materials and supplies, training and skills transfer, capacity building for domestic

contractors and, creativity and innovativeness.

Table 5.3a Tenets of Public Procurement - 1

Efficiency Competition Transparency & Accountability

Creativity & Innovativeness

Professionalism & Integrity

Utmost Importance 57% 40% 81% 28% 74%Very Important 33% 52% 19% 34% 22%Desirable 10% 9% 0% 29% 3%Not Important 0% 0% 0% 9% 0%

Table 5.3b Tenets of Public Procurement - 2

Local Materials

& Supplies Training and

Skills Transfer Capacity Building Value-for-Money Utmost Importance 9% 34% 38% 74%Very Important 36% 57% 48% 22%Desirable 53% 9% 10% 3%Not Important 2% 0% 3% 0%



It is not surprising to note that the findings showed that transparency and accountability,

professionalism and integrity, and value-for-money are considered the most important

tenets of public sector procurement. These are considered by most of the respondents to

be of utmost importance. This may be so because these are also the tenets that the

multilateral and bilateral donors promulgate as being the most critical to public sector

procurement and the use of public resources.

Tenets such as competitiveness, training and skills transfer and capacity building are

considered by most of the respondents to be very important, but not of utmost

importance. Creativity and innovativeness, and the use of local materials are only

desirable according to most of the responses received. They may only be desirable due

to the fact that the regulations and guidelines used on donor-funded projects are so

stringent that they do not provide the opportunity for creativity and innovation to

flourish. In addition, the use of local materials and supplies is usually hampered by the

lack of well developed local industries in most developing countries such as Zambia,

hence procurement practitioners rely heavily on imported materials and supplies.

5.5 CONCLUSIONS

This chapter has revealed that, by and large, procurement practitioners do not have

much strategic influence on procurement systems, regulations and guidelines used in

implementing donor-funded projects due to the fact that most of them are not in top

management positions. They are not strategic decision makers and merely implement

what has already been agreed upon. However, they are quite substantially involved in

the implementation of donor-funded projects and therefore they have leverage on

overall project performance.

The findings clearly suggest that procurement systems, regulations and guidelines

should be subject to mutual agreement and the “best-value” selection process should be

incorporated into public procurement systems. It is also suggested that there is need to

focus on how a “best-value” selection process can be incorporated into public

procurement systems in developing countries. In addition, contrary to the notion that

open tendering leads to competitive tender prices, short-listing contractors does not



necessarily have a negative effect on prices, but rather other factors contribute more to

higher prices. This contradiction concurs with the observations that the dominant

traditional construction procurement system used in the public construction sector is no

longer the most appropriate.

The issue of value-for-money is considered cardinal in the quest to derive better value

from available resources and the fact that procurement systems used on donor-funded

projects usually do not deliver best value, shows that there are areas of improvement.

A more concise discussion directed towards answering the research questions and

testing the hypothesis formulated for this study is presented in the next chapter. The

chapter also addresses the objectives of the study and finally forms the conclusions and

recommendations of this report.



CHAPTER 6. CONCLUSIONS AND RECOMMENDATIONS

6.1 INTRODUCTION

This research has explored public sector procurement management systems used on

donor-funded construction projects, focussing upon the how procurement systems,

regulations and guidelines impact on overall project performance. The research problem

was stated in Chapter 1 as follows:

There is growing concern that donor-funded construction projects in Zambia

do not achieve project objectives in an economic and efficient manner. In

addition, measures that have been taken to improve the performance of these

projects in the recent past through the use of more effective procurement

systems do not seem to have delivered any tangible results.

The research questions framed in order to provide a focus for investigating the problem

were:

iv. Do the procurement systems used on donor-funded construction projects

in Zambia deliver best value-for-money in terms of meeting quality

requirements, as well as adhering to time and cost constraints?;

v. Should the procurement systems used be agreed upon mutually from the

onset of the projects or be agreed upon as the project is being

implemented?; and

vi. Do the procurement systems used create any unintended consequences

that have a negative impact on overall project performance?

The hypothesis tested by the study is:

The procurement systems used on donor-funded construction projects in

Zambia do not deliver best value-for-money in terms of meeting quality

requirements, as well as adhering to time and cost constraints, mainly

because they are not agreed upon mutually at the onset of the projects

and amending or changing the systems during project implementation is

almost impossible, thereby causing unintended consequences that have a

negative impact on overall project performance.



The methodology chosen for the research was an opinion survey-based approach

comprising a critical review of appropriate literature and a questionnaire survey of a

targeted sample, using a qualitative approach.

In this chapter, the findings of the research questions are presented, followed by a

review of the hypothesis developed for the research. Conclusions are drawn from the

research findings and recommendations are made for future research. Finally, the

achievement of the research aims and objectives is discussed.

6.2 FINDINGS OF THE RESEARCH QUESTIONS

Chapters 4 and 5 report the investigation into the research questions.

An opinion survey instrument was designed as outlined in Chapter 4 and administered

by email to explore whether procurement systems used on donor-funded construction

projects in Zambia do not deliver best value-for-money. The survey aimed to highlight

the shortcomings and areas of concern relating to donor-funded procurement that can be

addressed locally, while providing insight to the donor community about some of the

inefficiencies and ineffectiveness of current procurement systems.

Qn 1.

Do the procurement systems used on donor-funded construction projects in


as well as adhering to time and cost constraints?

The findings of the survey presented in Chapter 5 indicate that the procurement systems used

on donor-funded construction projects in Zambia do not deliver value-for-money in

terms of meeting quality requirements. However, in terms of adhering to time and cost

constraints, the procurement systems actually assist.



Qn 2.

Should the procurement systems used be agreed upon mutually from the onset

of the projects or be agreed upon as the project is being implemented?

The findings of the survey indicate that the procurement systems used should be agreed

upon mutually between donor and recipient at the onset of the projects. Nevertheless,

the procurement systems need not be flexible during the implementation of the projects.

Qn 3.

Do the procurement systems used create any unintended consequences that

have a negative impact on overall project performance?

The findings of the survey showed that the procurement systems used create unintended

consequences, but since these consequences do not impact on economy and efficiency, they do

not necessarily have a negative impact on overall project performance.

The Hypothesis

The study has tested the hypothesis and found in the affirmative that procurement

systems used on donor-funded construction projects in Zambia do not deliver best

value-for-money in terms of meeting quality requirements. However, the systems do not

affect adherence to time and cost constraints. As regards time and cost constraints, as

well as, reductions in efficiency and effectiveness, other factors are attributed to this as

they impact more than the procurement systems.

The fact that procurement systems are not agreed upon mutually at the onset of the

projects is not mainly to blame for the failure to deliver value-for-money, but there is

overwhelming agreement that there should be mutual agreement at the onset in order to

enhance overall project performance. The issue of amending or changing the systems

during project implementation is favoured, but the findings show that this is not

cardinal.



Lastly, the procurement systems used cause unintended consequences that have a

negative impact on overall project performance, but the findings show that they do not

necessarily reduce efficiency and effectiveness.

The hypothesis has been proven to be correct in most of its constructs.

6.3 CONCLUSIONS

The study has shown that the procurement systems, regulations and guidelines do not

meet the level of the expectations of those using them to implement construction

projects in terms of delivery of value-for-money. The donor community needs to revisit

their approach to issues like local ownership and the use of local country systems in

order to allow more input from the recipients of donor aid in terms of how the

procurement systems are structured and applied.

The issue of value-for-money is considered cardinal by both donors and recipients and

the study has shown that there are areas of improvement. What stands out quite clearly

is that the areas of focus that need to be addressed are all the 3 areas that the survey

questions addressed. The relative weighting attached to the need to revisit reporting and

oversight arrangements, approval requirements and procedures, and regulations and

guidelines are close.

There is need to review the procurement management systems being used on donor-

funded projects in an all embracing manner in order to recommend meaningful

modifications.

6.4 RECOMMENDATIONS

Future research effort should be directed towards the incorporation of a “best-value” selection

process into the public sector procurement management systems for donor-funded projects.

It is also recommended that procurement management systems should be subject to mutual

agreement at the onset of projects.



6.5 ACHIEVEMENT OF THE RESEARCH AIMS AND OBJECTIVES

The aim of this study was to highlight the shortcomings and areas of concern relating to

donor-funded procurement that can be addressed locally, while providing insight to the

donor community about some of the inefficiencies and ineffectiveness of current

procurement systems. The study has achieved these aims by providing insight into areas

of concern, such as:

i. procurement systems used do not deliver value-for-money;

ii. procurement practitioners do not have adequate influence on procurement

systems used;

iii. short-listing does not actually increase pricing;

iv. cost overrun levels are significantly influenced by procurement; and

v. procurement systems used actually cause unintended consequences.

The objectives of the study were to:

a. Determine whether procurement systems on donor-funded construction projects

contribute to failure in economic and efficient attainment of project deliverables;

b. Determine the underlying reasons why procurement systems on donor-funded

construction projects continue to contribute to such failure; and

c. Provide insight on the areas surrounding procurement systems that need to be

focused on to improve overall project performance on the donor-funded project

portfolio in Zambia and see whether a “best-value” selection process can be

incorporated.

The first objective has been achieved through the findings presented in chapter 5, which show

that procurement systems on donor-funded construction projects contribute to failure in

economic and efficient attainment of project deliverables by causing unintended

consequences. In addition, procurement related factors, such as contractual payment

modalities, significantly influence cost overrun levels. However, the findings show that

other factors contribute more to time overrun levels.



The second objective has not been achieved since the study has not determined the

underlying reasons why procurement systems on donor-funded construction projects

continue to contribute to failure. The fact that the findings show that the procurement

systems contribute to failure does not mean that they have determined why.

The third objective has been achieved in that the study has provided insight on the areas

that need to be focused on to improve overall project performance and it has determined

that a best-value selection process can be incorporated. This is shown by the findings

that 72% of the sample group already considers parameters other than financial and

technical criteria during evaluation of bids and 98% of the sample group agreed that a

best-value selection process should be incorporated.



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Appendix

Research Questionnaire



RESEARCH QUESTIONNAIRE

This questionnaire is part of a research being carried out by Keeta L. S. Shisholeka for a Masters in Project Management degree at the Department of Construction Economics & Management, University of Cape Town. The research aims to determine how public procurement systems, regulations and guidelines used on donor-funded construction projects affect delivery of best-value and provide insight on the areas surrounding public procurement systems, regulations and guidelines that need to be focussed on in order to improve overall project performance. Information provided in response to this questionnaire will be treated with the strictest confidence. No details of the respondents or their respective organisations will be published in any public domain nor used for anything other than academic purposes. This questionnaire should take not more than 20 minutes of your valuable time. Kindly complete the questionnaire by answering the questions in sections A, B, C and D. Your valuable time in completing this questionnaire is much appreciated. Instructions: Please click in the text boxes provided to the right, insert your answers and save. Then return by email to [email protected]. All questions must be answered in relation to your particular current and overall experience with procurement. The answers for questions A1 and A2 are provided as an example only and may be altered to reflect your particulars. Section A: Background Information A1. What is your country of residence? A2. Which of the following best describes your current employment/organisation?

a. Office of the President/Vice President/Cabinet Office/Parliament b. Government Ministry/Department c. Parastatal Organisation/Quasi Government/Local Government d. Non-Governmental Organisation e. Private Sector f. Other (please specify):

A3. What level or position are you at in the organisation?

a. Director/Deputy Director/Chief Executive Officer b. Head of Department/Senior Management c. Middle Management d. Senior Officer e. Other (please specify):

A4. What best represents your current geographic location?

a. Capital City b. Other City c. Provincial Town d. Peri Urban Area e. Rural District

B

Tanzania



Section B: Occupational Information B1. Are you a procurement practitioner?

a. Yes b. No

B2. To what extent does your work involve donor-funded procurement?

a. Very often b. Often c. Sometimes d. Rarely e. Never

B3. Has your work involved any donor-funded construction works projects over the last four years?

a. Yes b. No

B4. What is the average total value of projects you have been involved in over the last four years?

a. Above US$ 15 million b. Between US$ 10 million and US$ 15 million c. Between US$ 5 million and US$ 10 million d. Between US$ 1 million and US$ 5 million e. Below US$ 1 million

B5. What category of procurement are you involved in?

a. Project related procurement b. Non-project/operational procurement c. Both a & b

B6. What type of items/services do you usually procure?

a. Goods b. Equipment c. Consultancy services d. Construction works e. A combination of any two or more of the above

B7. What method of procurement do you usually use?

a. Open tendering b. Restricted tendering c. Single-sourcing d. Request for quotations

B8. Why is the selected method of procurement usually used?

a. Simply based on value of procurement b. Most effective according to you c. Most economic according to you d. Prescribed by regulations and guidelines e. Dictated by others/other factors

B9. Is the method used the most appropriate considering the type and value of the procurement?

a. Yes. b. No.

B10. Do you think restriction of bidder/supplier participation through short-listing negatively impacts on project costs because of limited competition?

a. Yes b. No c. Other factors contribute



B11. Other than technical and financial issues, do you consider quality issues in the bid/quotation

evaluation process? a. Usually b. Sometimes c. Never.

B12. The "best-value" selection process advocates for the addition of quality issues in the

bid/quotation evaluation process. Do you think quality issues should be considered? a. Yes b. No

Section C: Specific Views on Donor-Funded Procurement Note: The term “procurement systems” is used in reference to institutional, reporting and oversight arrangements, while the term “procurement regulations and guidelines” refers to the laid down procurement documentation outlining procedures to be followed. C1. Procurement systems used usually deliver best value for money.

a. Agree b. Neither agree nor disagree c. Disagree

C2. Procurement regulations and guidelines used help meet quality requirements, as regards

“time” constraints. a. Agree b. Disagree c. Neither agree nor disagree

C3. Procurement systems used help meet quality requirements, as regards “cost” constraints.

a. Agree b. Disagree c. Neither agree nor disagree

C4. Procurement regulations and guidelines used should be subject to mutual agreement between

the donor and the recipient. a. Agree b. Disagree

C5. Procurement regulations and guidelines used should be flexible during project

implementation. a. Agree b. Disagree

C6. Procurement systems used create unintended consequences that have a negative impact on

overall project performance. a. Agree b. Disagree c. Neither agree nor disagree

C7. Procurement systems usually reduce economic and efficient attainment of project deliverables.

a. Agree b. Neither agree nor disagree c. Disagree

C8. Procurement regulations and guidelines usually reduce economic and efficient attainment of

project deliverables. a. Agree b. Neither agree nor disagree c. Disagree



C9. What area should be focussed on and modified in order to improve overall project performance?

a. Reporting and oversight arrangements b. Approval requierments and procedures c. Regulations and guidelines d. Other (please state).

Section D: Please rate each of the following public procurement tenets. D1. Efficiency

a. Utmost importance b. Very Important c. Desirable d. Not important

D2. Competitiveness


D3. Transparency & Accountability


D4. Creativity & Innovativeness


D5. Professionalism & Integrity


D6. Use of Local Materials & Supplies


D7. Training & Skills Transfer


D8. Capacity Building for Domestic Contractors




D9. Value for Money a. Utmost importance b. Very Important c. Desirable d. Not important

Thank you very much for your time and efforts. Should you have any queries kindly contact the researcher at the following address or on the mobile numbers. Keeta L. S. Shisholeka Procurement Specialist PEMFA Programme Ministry of Finance & National Planning Cnr Independence Avenue/Government Road Lusaka, ZAMBIA Office: +260 211 256227 Mobile: + 260 955 717171 or + 260 977 207505 Email: [email protected]

To respond, simply hold Ctrl key on keyboard, click on email address, attach completed document and send. Thank you!