THE EFFECTS OF CONTRACTUAL REQUIREMENTS ON FINANCIAL PERFORMANCE: A CASE STUDY OF MANDERA COUNTY HEAD OFFICE CONSTRUCTION PROJECT
Abstract
This study evaluated the effects of contractual requirements on financial performance: a case study of Mandera County Head Office. A project to build the head office of the Mandera County Government. Agency Theory, Strategic Choice Theory served as the study's guiding principles. For this study, a case study research design was adopted. The target population was 120 respondents. A stratified random sampling method was used in the study. The sample size was 92. Using surveys, secondary data, and annual reports, the data was acquired. Data analysis was done using quantitative techniques. Quantitative data was evaluated using the SPSS software, version 21, and descriptive statistics such the mean, percentages, and standard deviation. Multiple regression analysis and variance analysis were used to compare the dependent and independent variables in the study in order to ascertain their associations. Tables were used to show the analysis' findings. The research findings were important to Mandera County government institutions, the Kenyan government, other researchers, and county employees. The findings showed that, on average, respondents perceive the companies undertaking the projects to have some level of experience, but there was notable variability in these perceptions among respondents. Respondents believed that the companies participating in the bidding process had a relatively lower level of participation. Results showed that financial performance of projects was significantly influenced by procedures. The financial performance of projects was significantly influenced by procedures with relatively little variation in this perception among respondents. Respondents agreed that clear and well-defined contracts indicated project milestones, with relatively less variability in these perceptions. Respondents agreed that clear and well-defined contracts indicated project milestones, with relatively less variability in these perceptions. It was concluded that respondents generally perceived the companies undertaking the projects as having some level of experience, a reasonably good reputation, decent financial and managerial ability, and the necessary work permits. Respondents generally believed in the importance and effectiveness of pre-qualification practices in project management. Respondents generally believed in the importance and effectiveness of supervision practices in project management. Respondents generally agreed that clear and well-defined contracts, indicate project-associated penalties, and to some extent, the project scope of work. The study Recommended that companies involved in these projects should communicate their experience, reputation, financial stability, and compliance with regulations. Companies should work on promoting their participation in the bidding process to improve their perception among stakeholders. Companies should communicate their effective supervision practices more effectively to stakeholders, emphasizing the impact on financial performance and the avoidance of delays.
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