Influence of contractors’ evaluation criteria on procurement performance in the state department of roads in the upper eastern region, Kenya

Abstract

The success of road construction projects measured by quality, timeliness, and budget largely hinges on contractor performance. This study aimed examined how various contractor evaluation criteria affect procurement performance, specifically focusing on the financial capability, technical capacity, contractor experience and organizational capacity of contractors in the State Department of Roads in the Upper Eastern Region of Kenya. A descriptive research design was adopted, targeting 93 management-level employees from three parastatals: the Kenya Urban Roads Authority (KURA) with 23 employees, the Kenya Rural Roads Authority (KERRA) with 40 employees, and the Kenya National Highways Authority (KENHA) with 30 employees. Primary data was collected through questionnaires administered via a drop-and-pick-later method, allowing respondents one week to complete them before collection for analysis. The data collected were both quantitative and qualitative. Quantitative data were analyzed using descriptive and inferential statistics. SPSS (Version 22) was used for calculations, and a regression model assessed the relationship between the independent variables and procurement performance. The findings revealed that financial capability, including cash flow management and bonding capacity, significantly affects procurement performance. Technical capacity, particularly workforce competence (mean = 4.98), is also critical. Contractor experience has a strong correlation with performance (mean = 4.60), whereas the impact of organizational capacity is variable, highlighting the importance of scalability and flexibility (mean = 4.46). In conclusion, financial stability, technical skills, and experience are essential for improving procurement performance, while the effectiveness of organizational capacity varies. The State Department of Roads should focus on strengthening financial vetting processes, supporting technical training and technological advancements, prioritizing experienced contractors, and evaluating organizational flexibility. Future research could investigate the effects of regulatory policies on contractor performance and explore the role of emerging technologies such as AI and blockchain in enhancing procurement efficiency.