International Journal of Strategic Management and

Procurement (IJSMP) ISSN: 2664-049x 1 (1) 63-79,

May, 2019 www.oircjournals.org

Effect of Supplier Assessment on

Performance of Road Construction
Projects in Kenya Urban Roads
Authority
1
Caroline Jemutai Kosgei 2Yusuf Kibet
1Msc. Student, Jomo Kenyatta University of Agriculture and
Technology
2Lecturer, Jomo Kenyatta University of Agriculture and

Technology

Type of the Paper: Research Paper.

Type of Review: Peer Reviewed.
Indexed in: worldwide web.
Google Scholar Citation: IJSMP
How to Cite this Paper:

Kosgei J. C. and Kibet, Y. (2019). Effect of Supplier Assessment on

Performance of Road Construction Projects in Kenya Urban Roads
Authority. International Journal of Strategic Management and Procurement (IJSMP), 1
(1) 63-79.

International Journal of Strategic Management and Procurement (IJSMP)

A Refereed International Journal of OIRC JOURNALS.
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Kosgei and Kibet (2019) www.oircjournals.org

 International Journal of Strategic Management and
Procurement (IJSMP) ISSN: 2664-049x 1 (1) 63-79,
May, 2019 www.oircjournals.org

Effect of Supplier Assessment on Performance of

Road Construction Projects in Kenya Urban
Roads Authority
1
Caroline Jemutai Kosgei 2Yusuf Kibet
1
Msc. Student, Jomo Kenyatta University of Agriculture
and Technology
2
Lecturer, Jomo Kenyatta University of Agriculture and
Technology

ARTICLE INFO Abstract

The infrastructure has been given the highest
Received 7th May, 2019 priority to ensure that the main road projects
under the economic pillar are implemented.
Received in Revised Form 15th May, 2019 KURA has been faced by challenges of supplier
Accepted on 17th May, 2019 assessment regulations emanating, inadequate
funding and inadequate capacities to implement
Published online 19th May, 2019 the projects. The study sought to establish effect
Key Words: Supplier Assessment, Road of supplier assessment on performance of road
construction projects in Kenya urban roads
Construction, Projects Performance, KURA
authority. The study was grounded on Project
Management Competency Theory. The study
adopted a descriptive survey design. The target population was the employees in Kenya Urban Roads Authority as
well as the beneficiaries of KURA projects. Accordingly, the total sample was 296 respondents. The study utilized a
structured questionnaire for data collection. The data collected was analyzed using descriptive statistics; frequency
and percentages and inferential statistics generated using the SPSS. The study found that supplier assessment affects
performance of road construction projects in KURA. Inferential statistics showed that there was a positive correlation
between performance of road construction projects and supplier assessment with a correlation figure of 0.526
(p<0.05). Also the data findings analyzed showed that taking all other independent variables at zero, a unit increase
in supplier assessment will lead to a 0.755 increase in Performance of road construction projects of KURA. The study
recommended that the management of KURA should integrate their human resources and capabilities efficiently to
enhance material control and also adopt the material control models developed to align with their operations and
beneficiaries’ expectations.
project’s objectives and seizes the chances of the risky
1.0 Background of the Study events from arising (Dobos & Vörösmarty, 2012).
The ultimate importance of project performance is According to Jeptepkeny (2015), supplier assessment
achieved through avoiding the project’s failure to keep practice is a function that includes all stages of the
within cost budget, failure to keep within time process of acquiring property, works and services,
stipulated for approvals, design, occupancy and failure involving the use of public funds to accomplish
to meet the required technical standards for quality, specified public goals. Supplier evaluation stretches
functionality, fitness for purpose, safety and from procurement planning, budget allocation, bid
environment protection (Brown & Hyer, 2010). invitation, bid evaluation, contract award, and contract
Project performance ensures that enterprises maximize management. Supplier assessment has economic and
on profitability, minimize the consequences of risky social benefits which are reflected in the legal
and uncertain events in terms of achieving the framework of procurement functions and it has a

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crucial role of integrating social and economic
sustainable benefits to stimulate employment strategy.
Supplier evaluation is a management activity whose
primary aim is acquiring information to analyze and to
manage supplier relationships and supply situations.
The process entails the simultaneous consideration of
a number of critical supplier performance features that
include price, delivery lead-times, and quality. The
importance of supplier assessment is evident from its
impact on firm performance and more specifically on
final product attributes such as cost, design,
manufacturability, quality, and so forth. Supplier’s
financial condition need to be evaluated at the earliest
stages of supplier appraisal. Some purchasers view the
processes as a prescreening exercise that a supplier
must pass before a detailed evaluation process can
begin (McDonnell, 2016).
In Malaysia The supplier assessment has a tremendous
impact on the economic, social, political and legal
environment (CIPS, 2012). Supplier assessment of
services, goods and works on average, accounts to an
estimate of 15 per cent of the gross domestic product
(GDP) worldwide. McDonnell (2016) in their study on
organizational factors and their impact on project
performance reported that the new era of project
management has tendency to move away from the
linear and predictable practice in projects to one that
embrace the complex nature and role of the human
element and interrelations. This tendency makes
projects to be complex nonlinear systems.
In the European Union (EU), supplier assessment legal
framework set out the rules under which contracts
must be awarded. It has its roots in principles set out
in the Treaty of Rome of 1957. Under this treaty
primary provisions as well as secondary provisions
(directives and regulations) rule supplier assessment.
According to EU rules, public sector procurement
must follow transparent open procedures ensure fair
conditions of competition for suppliers (Menoka,
2014). Though projects incorporate other elements
such as technology, tools, methods and models, the
human element can be characterized as the most
important element in projects. All organizational
factors can be seen as various manifestations of the
human element.
In South Africa, procurement functions were
mentioned as one of the weakness that contributed to
the impasse to employment as a strategic tool (Pooe,
Mafini & Makhubele, 2015). There are deviations of
human behavior in relation to compliance. However
Grimm, Hofstetter and Sarkis (2016) contended that
Kosgei and Kibet (2019)
very little research has so far been conducted on
organizational misbehaviors and non- compliance in
purchasing and supply management. Supplier
assessment functions are employed as a vital
instrument for achieving economic, social and other
objectives. However, it is regrettably an area
vulnerable to mismanagement and corruption.
In Kenya, supplier assessment practice accounts for
60% of its budget expenditure (Aketch, 2005).
Supplier assessment plays a critical role in the Kenyan
economy and is an important factor in economic
growth. The Kenyan economy at the moment is
experiencing growth with the public as well as the
private sectors being engaged in numerous
development building and construction projects with
expected socio-economic and governance impacts
(Ministry of Roads, 2013). Since the supplier
assessment of projects contributes a significant
proportion of a country’s economic growth in terms of
jobs creation and provision of infrastructure services,
non-performance in terms of cost, time and quality to
completion results in delayed economic growth
(Baradyna, 2008).
Studies conducted in Kenya indicate that public
construction projects face myriad of challenges; Afred
(2008) affirmed that supplier assessment of works
suffers from irregularities in the selection process of
contractor that could be linked to, stalled projects,
delay in project completion, cost overrun, and poor
quality of work. Odhiambo and Kamau (2003) asserts
,the root cause for these inefficiencies over many years
is persistent lack of compliance with procurement
procedures that ensure competition, fairness, cost
effectiveness, and transparency in the procuring
process.
The Kenya Urban Roads Authority (KURA) is a State
Corporation established under the Kenya Roads Act,
2007, with the responsibility for the Development,
Maintenance, rehabilitation and management of urban
roads in Kenya. KURA manages and maintains all
road works on urban roads in cities and major
municipalities. KURA’s Functions include
constructing, upgrading, rehabilitating and
maintaining Roads under its control; controlling urban
road reserves and access to roadside developments;
implementing roads policies in relation to urban roads;
Ensuring adherence by motorists to the rules and
guidelines on axle load control prescribed under the
Traffic Act and under any regulations under this Act;
and performing such other functions related to the
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implementation of the Roads Act as may be directed
by the Minister.
Statement of the Problem
Road projects by KURA have been facing various
challenges, which include delay in completion, cost
overruns, demolition of residential and businesses
houses and abortive works (Maina, 2013). The
purpose procurement functions in public institutions is
to ensure that in a harmonized procedure, all goods and
services purchased by public institutions are done in a
way that ensures a careful, economic and efficient use
of public resources (McDonnell, 2016). The
infrastructure has been given the highest priority to
ensure that the main road projects under the economic
pillar are implemented. According to the Ministry of
Roads- MOR (2013) road transport, which carries
about 80% of all cargoes and passengers in the Kenya,
is a necessity for improving the living conditions of
communities, for improving security and contribute
significantly to the reduction of cost of doing business.
However, KURA has been faced by challenges of
supplier assessment regulations emanating,
inadequate funding and inadequate capacities to
implement the projects (MOR, 2013). Afred (2008)
affirmed that supplier assessment of works suffers
from irregularities in the selection process of
contractor that could be linked to, stalled projects,
delay in project completion, cost overrun, and poor
quality of work. For instance, in the construction of
Thika Super Highway, the cost escalated from 26.44
billion to 34.45 billion (World Bank, 2014). Malala
(2011) found out that, 88 % of projects were behind
schedule for which there was expression by the
respondents that, the procurement process derailed
projects performance. Onyinkwa (2013) study on
factors influencing compliance to procurement
regulations in public secondary schools and found that
CDF projects fail because the procurement is not
transparently done. Wanjau and Omwenga (2015) in a
study of the procurement practices affecting
implementation of projects by international NGOs in
Kenya found that some organizations lack
documented policies on how to carry out procurement
planning, vendor selection, contract monitoring and
control, as well as procurement negotiations. Despite
the evident nature of problems in supplier assessment,
there still existed a gap regarding effect of supplier
assessment practices on performance of KURA
projects. This study sought to establish specific
Kosgei and Kibet (2019)
supplier assessment practices that affect performance
of roads construction projects with a focus on KURA.
General Objective
The main objective of the study was to establish the
effect of supplier assessment on performance of road
construction projects in KURA, Kenya.
Research Hypothesis
H01: Supplier assessment has no significant
effect on performance of road
construction projects in KURA.
2.0 Literature Review
Theoretical Review
The study was guided by Project Management
Competency Theory.
Project Management Competency Theory
This theory was proposed by McClelland and McBer
in the 1980s. The theory states that professional
competence in project management is attained by
combination of knowledge acquired from training and
its subsequent application and other skills developed
in the course of work. The authors defined competency
as the underlying characteristic of an individual that is
causally related to criterion-referenced effective
and/or superior performance in a job or situation.
Since then a number of competency frameworks have
been developed by different project management
institutes. Spencer and Spencer (1993) puts a model of
competence that integrates knowledge, skills,
demonstrable performance, and core personality
characteristics, noting the last, personality
characteristics, as challenging to develop and assess
through training.
Spencer and Spencer (1993) argue that two of the most
influential project management standards, the
PMBOK, address only the knowledge aspect of
competence while a third, Australia’s National
Competency Standards, draws from knowledge but
focuses only on demonstrable performance. Crawford,
(2010) study found out that project managers “do not
necessarily have the required competence or perform
the full activities required to promote and implement
the changes that they are leading as part of their
projects. Interest in project management competence
stems from the very reasonable and widely held
assumption that if people who manage and work on
projects are competent, they will perform effectively
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and that this will lead to successful projects and
successful organizations (Smith, 1976).
Competence is generally accepted, however, as
encompassing knowledge, skills, attitudes and
behaviors that are causally related to superior job
performance. Spencer and Spencer (1993) stated that
professional competence in project management is
attained by combination of knowledge acquired from
training and its subsequent application and other skills
developed in the course of work. Previous
management studies have investigated the impact of
competency on performance. Dainty (2004) argued
that for a competency based performance model for
construction project managers where managerial
behavior input is appraised and nine performance
indicators for PM competency are developed to
comprise team building and leadership.
Dainty (2004) added that performance indicators for
PM competency comprise decision-making, mutuality
and approachability, honesty and integrity,
communication, learning, understanding and
application, self-efficacy, and maintenance of external
relations. In the context of road infrastructure project
management; it is assumed that if the project manager
and the project team have all the required competence
for the work then the project implementation will be
successful.
Supplier Assessment and Performance of
Construction Project
According to JalaliNaini et al., (2012), suppliers are
one of the major players in the supply chain and the
services they render are critical to the quality of the
end product as well as meeting cost and time targets.
A good supplier is expected to supply on time, within
budgeted cost and to the desired level of quality. This
is because the quality of a product to a large extent
depends on the skills and experience as well as the
competence of the producing agents. Thus, in the
construction industry where many players are
involved, the procedure and process of determining
participants most especially the suppliers must be such
that emphasize their skills (Omanga, 2017).
According to the Chartered Institute of Purchasing and
Supplies (2012) financial status and stability are
measured by factors such as profitability, cash flows
management, assets owned, debts owed among other
factors. The financial criterion is important since
selection of a supplier with poor financial conditions
presents a number of dangers to the purchaser. To start
with, is the danger that the supplier will go out of
Kosgei and Kibet (2019)
business. Then suppliers with poor financial health
will not have resources to invest in plant, equipment,
or research necessary for long-term performance
improvements. Thirdly, the supplier may become so
financially dependent on purchaser. Lastly, financial
weakness seems to be an indication of underlying
problems (McDonnell, 2016).
PPOA (2010) equitably refers supplier appraisal to
prequalification of suppliers where prequalification
should be done against a pre-set criteria and in various
ways; bidders first bid to prove their qualification and
are then short-listed for tendering; Qualification as
part of the bidding; where bidders are presenting
documentary evidence in their bids but in such cases,
the evaluation of the qualification of the bidders is
done separately (technical and financial evaluations);
Post-Qualification: where bidders presents statements,
of qualification as required by the bidding documents
on their qualification and these statements are verified
by the procuring entity after evaluation and
recommendation of the contract award but before the
contract is awarded.
Procuring entity has a responsibility to clearly state
any qualification criteria in the pre-qualification to
ensure that bidders provide documentary evidence to
certify their qualifications (PPOA, 2010). Mamavi,
Nagati, Pache, and Wehrle (2015), submit that it is
generally accepted that the major goals in any supply
are budget, schedule and quality. The overall success
of a supply includes meeting goals related to cost,
schedule, quality and safety. Therefore, the objective
of taking all the required precaution and due process
in the selection of supplier to execute a supply tender
is to ensure performance of the supply in relation to
the above-mentioned variables. The financial stability
will equally reflect on the ability of suppliers to meet
the current contract with the purchaser and to ensure a
secure future flow of supplies. The financial records
may also indicate the risk of delivery or quality
problems and more disruptions to supply and more
complex legal issues if a supplier becomes insolvent.
According to Berjis (2012) the assessment of tenderers
is carried out on the basis of ten key pre-selection
criteria. They are finance, human resources,
organization and management, project specific
requirements, past experience, past performance,
technology, quality system, health and safety system,
and equipment. Weightings are assigned to represent
the importance of these criteria and different scores are
assessed for each criterion. The sum of the products of
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the weight and the score for each criterion form the
multi-criteria scoring model for suppliers’ selection.
According to Ratanya (2013), prequalification process
provides suppliers with the opportunity to differentiate
themselves from their competitors and to impress
clients and consultants to have a place in their tender
list. Considerable goals that could be achieved by
effective suppliers’ selection through prequalification
process include economic cost and value for money.
Kipkorir (2013) asserts that huge proportion of
national resources could be salvaged through effective
suppliers’ selection especially using modalities of
prequalification. Mwichigi and Waiganjo (2015) also
opine that with the emergence of modern approaches
in suppliers’ selection through prequalification, there
has been a trend away from a lowest price wins
principle to a multi criteria selection approach.
Kiruri (2013) in her study concluded that, supplier
appraisal is a practice highly adopted in the
procurement of goods and services for which the
criterion used in supplier appraisal varied depending
on the nature of goods and services being procured. In
Kiruri’s (2013) findings 100% of the respondents
strongly agreed that financial and technical capability
appraisals were given highest priority in all
Supplier assessment
 Standard values & guidelines
 Procurement principles
 Bidding process
Independent Variables
Figure 1 Conceptual Framework
3.0 Research Methodology
Research Design
According to Green and Tull (2009), a research design
is the specification of methods and procedures for
acquiring the information needed. It is the over-all
operational pattern or framework of the project that
stipulates what information is to be collected from
which source by what procedures. Research design is
important as it prepares proper framework within
which the research work/activity was actually carried
out. The study applied descriptive correlational
research design. The descriptive design was used since
the study sought to gather quantitative and qualitative
data that describes effect of supplier assessment
Kosgei and Kibet (2019)
procurement exercises. Quality appraisals and cost of
product/services were considered as supported by
84.9% of the respondents. Production capacity
assessment was considered as supported by 80.8% of
the respondents. Human resource assessment, 63.0%,
organizational structure appraisal 61.6%,
organizational past performance, was less considered.
The findings also supported that supplier appraisal
enabled the organization to effectively manage
supplier assessment.
Mungai (2014) established that site visits and use of
reference checks were the most common ways of
appraising suppliers. He also established that the
supplier appraisal practices determine how the
supplier performs in the supply of goods and
services. The results indicated that there was a strong
positive relationship (r=0.673) between supplier
appraisal criteria and procurement performance.
Weighted model was the most popular model used to
appraise suppliers and further acknowledged that
good supplier appraisal model should provide
structures and discipline to the evaluation process,
in-order to avoid selection of unqualified suppliers
and reduce subjectivity during the evaluation.
Performance
 Project quality
 Project cost
 Timely completion of
projects
Dependent Variable
practice on performance of road construction projects
in Kenya Urban Roads Authority.
Target Population
Population is the entire set of units for which the study
data are to be used to make inferences (Kothari, 2008).
Target population defines those units for which the
findings of the study are meant to be generalized from
(Dempsey, 2003). According to Mugenda and
Mugenda (2012), target population is the members of
a real or hypothetical set of people, events or objects
the researcher wishes to generalize the results of the
research. The target population should have some
observable characteristics, to which the study intends
to generalize the results of the study.
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The study targeted KURA employees and
beneficiaries of KURA projects in the 11 regions. The
study was conducted in Kenya Urban Roads Authority
(K.U.R.A). K.U.R.A was established under the Kenya
Roads Act, 2007 and is a state corporation responsible
for the management, development, rehabilitation and
maintenance or urban arterials (Class UA) urban
collectors including primary distributors, district
distributors (Class UC) and urban local roads
including minor distributors, local streets, residential
stand access, commercial and industrial stand access,
shopping streets (Class UL) as well as other related
infrastructure development within road reserves in
cities and municipalities such as Bus Rapid Transit
Systems. KURA has ten regions; North rift, South rift,
Nyanza, Western, Lower Eastern, Upper Eastern,
Upper eastern, Coast, North Eastern, Central, Nairobi
(headquarters).
The study was conducted at the headquarters office;
the headquarters was purposively selected since all the
procurement for KURA is centralized at the
headquarters. There were 362 employees in the KURA
regional offices and numerous beneficiaries including
motorists who will form the target population for the
study. The focus on the aforesaid population is based
on their notable project management practices as
manifested in the procurement and implementation of
various road infrastructures across the Country. They
ensure development, rehabilitation and maintenance
of the road network consistent with the economy and
set standards; that its operations are conducted
efficiently, economically and with due regard to
safety; and financial administration. Studying this
target population therefore, enhanced the value of the
study by giving an overall inference of the above
characteristics and functions of KURA.
Sample Size and Sampling Technique
The sampling frame for this study will be the list of the
employees in the KURA regional offices and
numerous beneficiaries including motorists in the 11
KURA regions. A set of information used to identify a
sample population for statistical treatment.
A sampling frame includes a numerical identifier for
each individual, plus other identifying information
about characteristics of the individuals, to aid in
analysis and allow for division into further frames for
more in-depth analysis. The sampling frame for this
study consisted of the staff working in the regional
offices of KURA and motorists plying the roads
constructed by the Agency. The study employed the
use of Krejcie and Morgan sampling methods to select
employees and beneficiaries of KURA projects and
purposive sampling to select managers in the various
department that participate in the procurement process
in all the 11 regions in the country. The sample size
for the study was 186 respondents.

Table 3.1 Sample Size

Department Designations Target Sample
Procurement Manager 11 6
Chief procurement officer 11 6
Senior procurement officers 100 51
Procurement assistance 110 57
Finance General manager 10 5
Chief officer Corporate 10 5
Chief officer legal 10 5
Chief officer Human resource and Administration 10 5
Senior Auditor 10 5
Senior ICT officer 10 5
Designs and General manager 10 5
Construction
Senior engineer 10 5
Assistant Engineer 10 5
Planning 40 21
Total 362 186

In addition, owing to the undocumented number of
beneficiaries of KURA projects, the study sampled
approximately 10 motorists in each of the 11 regions.
Kosgei and Kibet (2019)
The researcher systematically selected every 10th
motorist using the busiest roads in the regions and
request them to participate in the answering the data
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collection instrument. The researcher did not coerce
the respondents to participate and whenever the
respondents decline to participate the immediate next
motorist was requested to participate and the process
of picking every 10th motorist resumed until 10
beneficiaries are achieved in every region. As such the
study sampled 110 beneficiaries of KURA projects in
the 11 regions. Accordingly the total sample size was
296.
Data Collection Instruments
Data collection instrument is a tool that specifies and
objectifies the data collecting process, instruments are
usually written and may be given directly to the
subject to collect data or may provide objective
description of the collection of certain types of data.
According to Mugenda and Mugenda (2012), a
researcher needs to develop instruments with which to
collect data. The most commonly used instruments
are: questionnaires, interview schedules, observational
forms and standardized tests. This study utilized a
research questionnaire and secondary data collection
sheet as the main primary data collection research
instruments. Questionnaires are a series of written
questions on a topic about which the respondents’
opinions are sought. The main purpose of the
questionnaire is to communicate to the respondents
what is intended and to elicit desired responses in
order to achieve the research objectives.
The questionnaire composed of both open-ended and
closed-ended questions with the close ended section of
the instrument utilizing an ordinal scale format. The
ordinal format was used because according to Kiess
and Bloomquist (2009) this format yields equal-
interval data, a fact that allows for the use of more
powerful statistical tools to test research variables.
Questionnaires are preferred because according to
Dempsey (2003) they are effective data collection
instruments that allow respondents to give much of
their opinions pertaining to the researched problem.
According to Kothari (2008) the information obtained
from questionnaires is free from bias and researchers
influence and thus accurate and valid data were
gathered.
Pilot Study
According to Dempsey (2003) pilot study is the
process of conducting preliminary test of data
collection instruments in order to eliminate data
collection problems that may led to low data validity
and reliability. Pilot study was thus conducted to help
Kosgei and Kibet (2019)
in identification of errors in data collection
instruments and make necessary adjustment in order to
ensure valid and reliable data was collected. Pilot
study was conducted among Kenya Rural Roads
Authority employees to test the reliability and validity
of the questionnaire. This was undertaken to test the
reliability and validity of data collection instruments
(Sekeran, 2003).
Validity refers to the extent to which an instrument
measures what is supposed to measure. Data need not
only to be reliable but also true and accurate. If a
measurement is valid, it is also reliable (Joppe, 2000).
The content of validity of the data collection
instrument was determined through discussing the
research instrument with the research experts in the
University. The valuable comments, corrections,
suggestions given by the research experts assisted in
the validation of the instrument. The content of the
responses given by the respondents were checked
against the study objectives. Evidence of content
relevance, representativeness and relevance to the
research variables indicated that the research
instruments are valid (Joppe, 2000).
Reliability refers to the consistence, stability, or
dependability of the data. Whenever an investigator
measures a variable, he or she wants to be sure that the
measurement provides dependable and consistent
results (Cooper & Schindler, 2011). A reliable
measurement is one that if repeated a second time
gives the same results as it did the first time. If the
results are different, then the measurement is
unreliable (Mugenda & Mugenda, 2012).
Pilot study was conducted in KERRA and KeNHA
headquarters. To measure the reliability of the data
collection instruments, an internal consistency
technique using Cronbach's alpha was applied
(Mugenda & Mugenda, 2012). Cronbach's alpha is a
coefficient of reliability that gives an unbiased
estimate of data generalizability (Zinbarg, Revelle,
Yovel & Li, 2005). An alpha coefficient of 0.70 or
higher indicated that the gathered data are reliable as
they have a relatively high internal consistency and
can be generalized to reflect opinions of all
respondents in the target population (Zinbarg et al.,
2005).
Data Processing and Analysis
The raw primary data collected was coded prior to
being input into SPSS statistical analysis software.
Once coded, the data was then cleaned to ensure
accuracy and completeness of the information
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obtained. The data collected was purely quantitative
and it was analyzed by descriptive analysis. The use of
structured questionnaires contributed towards
gathering of both quantitative and qualitative data.
Descriptive statistics method was applied to analyze
quantitative data where data was scored by calculating
the frequencies and percentages. This was done using
Statistical Package for Social Sciences (SPSS)
computer software version 21.0. SPSS is considered
appropriate since it allowed the researcher to follow
clear set of quantitative data analysis procedures that
leads to increased data validity and reliability and
demonstrates the relationship between the research
variables. SPSS also assisted in producing frequency
tables for descriptive analysis.
Inferential statistics was applied through use of chi
square tests and multiple regression analysis. The
calculated Chi-square was computed and then
compared with the critical points of the theoretical
Chi-square distribution to produce an estimate of how
likely or unlikely this calculated value was if the two
variables were in fact independent. Any decision to
reject the null hypothesis was based on the probability
or the observed significance level. If the analysis finds
that the null hypothesis (i.e. that the coefficient of
interest does not in fact equal zero), then that variable
had a significant effect on the dependent variable (Y).
The regression model adopted was;
y = α + β1X1 + έ……………..equation 3.1
Where;
y represents project performance
Variables Cronbach's Alpha
Supplier assessment 0.740
Project performance 0.722
Gender of the Respondents
The research sought to find out the gender of the
respondents. The subject of gender is considered
fundamental in this study largely because it could help
the researcher get a balanced view from both genders.
Table 4.2 Gender of the Respondents
Gender Frequency Percentage
Male 150 56.4
Female 116 43.6
Total 266 100.0
From the results depicted in Table 4.2, 150 of the
respondents that participated in the study were male
Kosgei and Kibet (2019)
α represents constant term
β, β1,
x1 represents supplier assessment
έ represents error term
4.0 Findings and Discussions
Response Rate
A sample of 296 respondents was selected to
participate in the study and the response rate obtained
was 266 respondents which translated to a response
rate of 89.9%.
Pilot Test Results
The study conducted a pretest among Kenya Rural
Roads Authority (KeRRA) employees in Nairobi to
test the reliability and validity of the questionnaire.
Table 4.1 shows the results. From the pretest, all the
alpha values were more than 0.7 as indicated in Table
4.1. Supplier assessment had Cronbach’s alpha value
of 0.740 while project performance in KURA had
Cronbach’s alpha value of 0.722. Accordingly, all the
Cronbach alpha values were found to be above 0.7 and
therefore the construct was found to be acceptable.
Based on results in Table 4.1 it is clear that the
research instrument was reliable with Cronbach’s
alpha value of above 0.7.
Table 4.1 Reliability Analysis Results
Number of Items Comments
5 Accepted
4 Accepted
while 116 of them were female. The findings imply
that the views expressed in these findings are gender
sensitive and can be taken as representative of the
opinions of both genders since gender plays a crucial
role in understanding the effect of supplier assessment
practices on project performance with a focus on
Kenya Urban Roads Authority. These results are in
accordance with Atiibo (2012) who argued that gender
plays a critical part in formulation and execution of
supplier assessment practices in the current
environment due to changing dynamics influencing
project performance in organizations.
Age Brackets
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The study also ensures that the age bracket of the years old and hence they were experienced to give
participants was distributed evenly. The results are as accurate data sought in the study. Eighty five of the
depicted in Table 4.3. respondents indicated that their ages were above 55
years, 67 of them were aged between 36 and 45 years.
Table 4.3 Age Brackets of the Respondents In addition, 13 of the responses comprised of
Age Bracket Frequency Percent respondents whose ages were between 26 and 35 years
while a minute proportion (3) of the respondents were
18-25 years 3 1.1
between 18 and 25 years. The results demonstrated
26-35 years 13 4.9 that the respondents are well distributed in terms of
36- 45 years 67 25.2 age hence different views across varying ages are
46-55 years 98 36.8 accounted. This is in accordance with Patel and Vyas
Above 55 85 32.0 (2011) who pointed that age of the employees is an
years important factor in an organization as it gives an
Total 266 100.0 implication that employees who have advanced ages
in an organization are likely to have relevant
From the study, 98 of the respondents (making up knowledge of the procurement and project
36.8%) indicated that they were between 46 and 55 performance aspects that are considered in an
organization.

Distribution of the Respondents

The study was interested in establishing the distribution of the respondents in various categories. The responses are as
shown in Table 4.4.

Table 4.4 Distribution of the Respondents by Category

Category Frequency Percentage
Procurement manager 5 1.9
General Manager Finance 4 1.5
General manager Designs and Construction 3 1.1
Senior engineer 4 1.5
Assistant Engineer 4 1.5
Planning 18 6.8
Chief procurement officer 5 1.9
Senior procurement officers 47 17.7
Procurement assistance 53 19.9
Chief officer Corporate 4 1.5
Chief officer legal 4 1.5
Chief officer Human resource and Administration 4 1.5
Senior Auditor 3 1.1
Senior ICT officer 4 1.5
Beneficiary 104 39.1
Total 266 100.0

respondents working as senior procurement officers

The study established that 104 of the respondents were
beneficiaries of KURA projects in the 11 regions. In
addition, 53 (19.9%) of the responses comprised of
views drawn from the procurement assistance
personnel in KURA offices, 47 of them were
and 18 of them were staffs working in the planning
section of designs and construction department. Other
respondents occupied less than 2% of the population
studied. They included procurement managers, chief
procurement officers, general manager finance, senior

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engineers, assistant engineers, chief officers’ Supplier assessment
corporate, chief officers’ legal, chief officers’ human The study sought to establish the effect of supplier
resource and administration, senior ICT officers and assessment on performance of road construction
senior auditors. This implies that all categories that projects in KURA. In this regard the respondents were
were targeted by the study were involved and that the asked to show their level of agreement with various
findings are not biased hence representative of the statements regarding supplier assessment and road
various departments’ views sought by the study. construction performance. The results are presented in
Descriptive Statistics Table 4.5.
This section analyzes the descriptive data gathered by
the study on supplier assessment and performance of
road construction.

Table 4.5 Supplier assessment and Performance of Road Construction

Statements on supplier assessment SD D U A SA Mean Std.
1. Supplier assessment provide possible F 0 31 62 96 77 3.823 1.43
source of suppliers
% 0.0 11.7 23.3 36.1 28.9
2. Due diligence is conducted to F 10 31 80 101 44 3.801 1.652
prospective successful bidder prior to
award of tender % 3.8 11.7 30.1 38 16.5
3. Evaluation report are based on criteria F 15 20 81 103 47 3.553 1.439
stipulated in the bidding document
% 5.6 7.5 30.5 38.7 17.7
4. Preparation of purchase order form and F 0 22 70 113 61 3.519 1.387
the appropriate order documents
% 0.0 8.3 26.3 42.5 22.9
5. Successful bidder's price verified against F 8 17 154 62 25 3.297 2.255
market prices prior to award
% 3.0 6.4 57.9 23.3 9.4
Valid N= 266
From the study findings on supplier assessment, the Tender bids are awarded to the most economically
highest ranking mean score was 3.823 and Std.Dev of advantageous tender proposal. The criteria that are
1.430 implying that majority of the responses agreed specified in the invitation to tender document are the
that supplier assessment provides possible source of basis for the buying decision. The study views cross-
suppliers for KURA. The selection process plays an referencing bids should be used extensively, as well as
important role in reducing the cost and time to market references to pertinent clauses in the bidding
and also improves the quality of the products. Supplier documents. In addition preparation of purchase orders
assessment increases chances of choosing the best form and the appropriate order documents
supplier from the existing bidders. Most of the (mean=3.519, Std.Dev=1.387). The solicitation
respondents agreed that due diligence is conducted to documents are prepared in a way to reflect the
prospective successful bidder prior to award of tender approved procurement strategy. Contracting officers
(mean=3.801, Std.Dev=1.652). are encouraged to obtain a review of the solicitation
documents prior to release. Conversely, there was
Guidelines on way of selecting bidders to be awarded neutrality on that successful bidder's price verified
tenders are followed as per the requirements and the against market prices prior to award (mean=3.297,
standards set. The capital, technical, competence and Std.Dev=2.255).
relevant skill merits are used to select bidders. The
evaluation reports are based on criteria stipulated in Biding tender price is acceptable at the basis of the
the bidding document (mean=3.553, Std.Dev=1.439). standardized market rates that compete favorably.

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These findings indicated that supplier assessment
process helps determine the potential suppliers,
establish the successful bidder of the given tender and
preparation of purchase order forms and documents
for efficiency in road construction. The main purpose
of bid evaluation is to determine the best responsive
bid, in accordance with the evaluation and selection
methodology specified in the solicitation document,
among the bids submitted before the bid closing time
on the date specified in the bid solicitation. In their
study, JalaliNaini et al., (2012) also established that
suppliers are one of the major players in the supply
chain and the services they render are critical to the
quality of the end product as well as meeting cost and
time targets.
Dobos and Vörösmarty (2012) argued that supplier
evaluation is a management activity whose primary
aim is acquiring information to analyze and to manage
supplier relationships and supply situations. The
process entails the simultaneous consideration of a
number of critical supplier performance features that
include price, delivery lead-times, and quality. The
importance of supplier assessment is evident from its
impact on firm performance and more specifically on
final product attributes such as cost, design,
manufacturability, quality, and so forth.
Performance of Road Construction
This section presents the findings and discussion on
dependent variable, performance of road construction.
Accordingly, the respondents were provided with
various aspects of performance of road construction
and asked to rate their levels of agreement.

Table 4.6 Procurement Practices and Performance of Road Construction

Statements on performance of road SD D U A SA Mean Std.
construction

1. Contractors provide correct documentation F 8 17 154 62 25

and invoices % 3.0 6.4 57.9 23.3 9.4 3.65 1.735
2. Contractors spend funds in excess of F 10 80 73 55 48
budgeted amounts % 3.8 30.1 27.4 20.7 18.0 3.553 1.439
3. Contractors use high quality materials in F 20 75 71 60 40
construction % 7.5 28.2 26.7 22.6 15.0 3.534 1.407
4. customers’ needs & expectations are F 15 20 81 103 47
realized to greater extent % 5.6 7.5 30.5 38.7 17.7 3.519 1.387
5. Contractors provide adequate training to F 8 17 154 62 25
their staff % 3.0 6.4 57.9 23.3 9.4 3.38 1.088
6. Problems are identified and corrections F 7 9 104 96 50
made % 2.6 3.4 39.1 36.1 18.8 3.353 1.144
7. Contractors always ask for contract F 18 41 72 92 43
extension % 6.8 15.4 27.1 34.6 16.2 3.297 2.255
8. There is efficient use of materials F 16 22 78 104 46
% 6.0 8.3 29.3 39.1 17.3 3.297 2.255
9. Contractors complete construction work in F 17 40 73 94 40
planned time schedule % 6.4 15.0 27.4 35.3 15.0 3.192 1.029
10. The road is ready for use according to the F 10 31 80 101 44
planned time schedule % 3.8 11.7 30.1 38.0 16.5 3.094 0.866
Valid N= 266
Majority of the respondents agreed that contractors (mean=3.650, Std.Dev=1.735). This was followed
provide correct documentation and invoices closely by majority of the respondents who affirmed
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that contractors spend funds in excess of budgeted
amounts (mean=3.553, Std.Dev=1.439), contractors
use high quality materials in construction
(mean=3.534, Std.Dev=1.407) and customers’ needs
and expectations are realized to greater extent
(mean=3.519, Std.Dev=1.387). Respondents also at
(mean=3.38, Std.Dev=1.088) accepted that
contractors provide adequate training to their staff.
This implies that employees are equipped with
relevant training skills to facilitate effective service
delivery and meet standard requirements in
construction of roads.
Respondents also at (mean=3.353, Std.Dev=1.144
accepted that problems are identified and corrections
made within time. Work coordination to identify
freaks is super active because workers work in unison
and they are motivated to deliver the best at their work
place. Problems that are identified and solved earlier
ensure job security is professionally guarded.
Respondents to greater extent (mean=3.297,
Std.Dev=2.255) accepted that contractors always ask
for contract extension. When timelines are meet and
work progress is incompletion contractors seeks
extension period to allow smooth completion of the
projects. Respondents realized to greater extent
(mean=3.297, Std.Dev=2.255) that there is efficient
use of materials. Construction materials are utilized to
enable maximum productivity (mean=3.192,
Std.Dev=1.029) of the respondents accepted that
contractors complete construction work in planned
time schedule. As discussed earlier contractors utilize
their time allocation to ensure that construction
process is completed. To greater extent respondents
(mean=3.094, Std.Dev=0.866) accepted that road is
ready for use according to the planned time schedule.
Timely completion of the projects is the mandate
priority to contractors. Competence of the contractors
is proved when tender given is completed within
specified time as well as quality is observed. In
addition, majority of the respondents showed
Table 4.7 Correlations between Supplier assessment and Project
Kosgei and Kibet (2019)
neutrality on that contractors provide adequate
training to their staff, problems are identified and
corrections made, contractors always ask for contract
extension.
There is efficient use of materials, contractors
complete construction work in planned time schedule
and the roads are ready for use according to the
planned time schedule. According to these results, the
performance of road construction is largely
determined by contractors’ actions and customers’
needs and expectations which affect timely
completion of projects, project quality and project
cost. Previously Shebob, Dawood, Shah and Xu
(2012) found that external environment, project
manager, team members, organization and project
characteristics are critical to project implementation.
Inferential Statistics
This section describes the results of correlation
analysis and regression analysis to show the
relationship between the independent and dependent
variable.
Correlation Analysis Results
The study used Pearson’s coefficient of correlation to
check direction and strength of relationship between
study variables. Direction in that to check if there is
positive or negative relationship. While the strength to
know if the relationship was weak, moderate or strong.
Pearson’s coefficient of correlation values lies
between -1 and +1 where; r=+1 shows perfect positive
correlation. r=-1, shows perfect negative correlation.
r=0 show no correlation. The results in table 4.7 show
that there was a significant relationship between the
two variables (project performance and supplier
assessment. From the findings, there was a positive
strong correlation between project performance and
supplier assessment with a correlation (r=0.526;
p<0.05). This implies that supplier assessment can
positively contribute to project performance.
Performance
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Variables Correlations

of
Performa

assessme
Supplier
projects
road
nce

nt
Performance of road construction Pearson Correlation 1
projects
Sig. (2-tailed) .
Supplier assessment Pearson Correlation .526 1
Sig. (2-tailed) .032 .

Regression Analysis Authority. The researcher extracted the model

The study conducted a regression analysis to establish summary which portrays the coefficient of
the effect of supplier assessment on project determination. Table 4.9 shows the results of the
performance with a focus on Kenya Urban Roads model summary.

Table 4.8 Model Summary

Aspect Value
Model 1
R 0.872
R Square 0.766
Adjusted R Square 0.751
Std. Error of the Estimate 0.573

Coefficient of determination explains the extent to
which changes in the dependent variable can be
explained by the change in the independent variables
or the percentage of variation in the dependent
variable (performance of road construction projects)
that is explained by all the independent variables
(supplier assessment). The independent variables that
were studied, explain 76.6% of the performance of
road construction projects of KURA as represented by
the R2. This therefore means that other factors not
studied in this research contribute 23.4% of the
performance of road construction projects of KURA.
The Analysis of variance (ANOVA) was used to
determine whether there was a regression relationship
between the study variables. The F-ratio in the
ANOVA table tested whether the overall regression
model was good and fit for the data. The results
obtained are presented in Table 4.9.

Table 4.9 ANOVA

Model Sum of Squares Df Mean Square F Sig.
Regression 0.239 4 0.060
2.895 .0480
Residual 6.029 261 0.023
Total 6.268 265

significance was 2.895. Since F calculated is greater

From the ANOVA statistics in Table 4.9, the
processed data had a significance level of 0.0480
which shows that the model is fit to predict the
relationship between the independent and the
dependent variables. The F calculated at 5% Level of
Kosgei and Kibet (2019)
than the F critical (at 4 28, F critical= 1.96), this shows
that the overall model was significant, that is, there is
a significant relationship between supplier assessment
and performance of road construction projects of
KURA. Statistical tests of ANOVA reveal that the
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supplier assessment is crucial for performance of road
construction projects of KURA.
Table 4.10 Regression Coefficients
Model Unstandardized
Coefficients
B Std. Error
1. (Constant) 4.778 0.453
2. Supplier assessment 0.755 0.126
The coefficients in Table 4.10 answer the regression
equation relating the dependent and the independent
variables. The table indicates that all the variables had
a significance value less than 0.05 thus confirming the
significance of the results. Also, from the table, all the
variables indicated a positive coefficient indicating a
positive relationship between the dependent and
independent variable. The analysis gave rise to the
following model:
Y=4.778+0.755X1 ………...…equation 4.1
The results shown in Equation 4.1 reveal that, holding
the predictor variables constant, the performance of
road construction projects of KURA would be 4.778
Table 4.11 Chi Square Test Results
Variables Value
1. Supplier assessment and performance of
37.344
road construction projects
The null hypothesis for supplier assessment was that
‘supplier assessment has no significant effect on
performance of road construction projects in KURA’
the chi-square test was used to determine whether
there is a significant difference between the expected
frequencies and the observed frequencies in one or
more categories. According to the chi-square tests, the
chi -square analysis showed a value of 37.344 at 3
degrees of freedom. This value was more than P value
of 0.007. Therefore, the null hypothesis was rejected.
From the chi- square results above, a Pearson Chi-
square value of 37.344 was established at p=0.001.
The chi-square value was less than the p-value
(p<0.05) hence the study rejected the null hypothesis.
This depicts a significant relationship between
supplier assessment and performance of road
construction projects by KURA.
5. Summary, Conclusions and Recommendations
Supplier assessment
Kosgei and Kibet (2019)
Standardized T Sig.
Coefficients
Beta
10.5475 0.0429
0.054 5.9921 0.0210
units. The data findings analyzed also shows that
taking all other independent variables at zero, a unit
increase in supplier assessment will lead to a 0.755
increase in performance of road construction projects
of KURA.
Chi Square Tests
The study used Chi-square statistics to identify the
relationship that is derived from supplier assessment
practices and performance of road construction
projects by KURA. The Chi Square Test results are
shown in Table 4.115.
Degree of Asymp. Sig. (2-sided)
freedom
3 0.001
The study found that supplier assessment affects
performance of road construction projects in KURA.
From the results, supplier assessment provides
possible source of suppliers for KURA, due diligence
is conducted to prospective successful bidder prior to
award of tender, evaluation report are based on criteria
stipulated in the bidding document and preparation of
purchase order form and the appropriate order
documents. In addition, there was neutrality on that
successful bidder's price verified against market prices
prior to award. The regression analysis revealed that a
unit increase in supplier assessment will lead to a
proportional increase in performance of road
construction projects of KURA.
Conclusions
The study deduces that supplier assessment process
helps determine the potential suppliers, establish the
successful bidder of the given tender and preparation
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of purchase order forms and documents for efficiency
in road construction. From the findings, it is clear that
suppliers are one of the major players in the supply
chain and the services they render are critical to the
quality of the end product as well as meeting cost and
time targets.
Recommendation
The study recommends that the management of
KURA should integrate their human resources and
capabilities efficiently to enhance material control and
also adopt the material control models developed to
align with their operations and beneficiaries’
expectations, since ssupplier assessment is a critical
function that helps to improve project performance in
KURA.
Suggestions for Further Studies
This study suggests that another similar study could be
carried out to investigate influence of supplier
assessment and performance of public projects in
Kenya.
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