THE ROLE OF CONTRACT ADMINISTRATION ON PROJECT PERFORMANCE: THE CASE OF PRIVATE CONSTRACTION CAMPANY IN ADDIS ABABA

Abstract

The purpose of this study is to examine the role of contract administration practice on project performance at private construction company in Addis Ababa. Source of data used was a close ended Likert Scale based Questionnaire and gathered from a sample of 88 employees that were selected using simple random sampling method. The data obtained from the survey were then analyzed with the use of SPSS. Data was collected through a questionnaire using statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. Results of this study indicate that contract administration practices dimensions such as (contract administration planning, timely monitoring, and inspection practice) have positive and significant relationship with project performance. This research concluded that contract administration practice had major influence on the performance of the project in private construction companies. Forwarded recommendations in general strong effort should be given on contract administration practice by improved communication and collaboration among project teams, regularly review and update contract documents, monitoring and inspection tool advancement, and effectively linked with technology, taking proactive corrective actions will improve the project effectively. Researcher also suggests further studies on contract administration practices specifically on private company and Ethiopia cases where we lack information that is practical to us.