THE EFFECTS OF PROJECT PROCUREMENT PRACTICES ON CONSTRUTION PROJECT PERFORMANCE: THE CASES OF ETIHOPIA CONSTRUCTION WORKS CORPORATION

Abstract

The purpose of this paper is to investigate the effects of project procurement practices on construction projects in the case of Ethiopian construction Works Corporation. It followed a quantitative research approach and the research design was both descriptive and explanatory research. A structured questionnaire was adopted. A quantitative research approach was implemented, and the hypotheses were also tested on a sample of 44 employees out of 48 distributed, giving a valid response rate of 91.7%. The questionnaire was analyzed using Statistical Package for Social Sciences (SPSS) V.24 to compute Cronbach Alpha, descriptive statistics, correlation & regression. From the descriptive statistics project procurement monitoring and controlling has the highest mean score 4.116(0.586) which implicates continuous improvement, achieving value for money, improve quality, improve, reduce risk, and number of projects completed on time as an important determinant in project procurement monitoring and controlling. Correlation analysis was conducted to analyze the relationships between variables; the correlation matrix revealed that all coefficient of correlation independent variables were positive and strongly correlates with the dependent variable. In addition to correlation analysis, Further regression analysis was also conducted and results revealed that the four independent variables (project procurement management, planning, project conducting process and monitoring) contribute to statistically significant level at (p-value = 0.001). Based on hypothesis testing the p- value of project procurement practice, planning, conducting and monitoring is less than 0.05, thus the researcher can accept the hypothesis and all the physical distribution service dimensions. Finally, the results are useful in identifying project procurement practices focus areas to help ECWC project procurement practice. As evidence from the finding section that, ECWC is recommended to fully implement project procurement practices effectively improve project performances.