THE EFFECT OF CONTRACT MANAGEMENT ON ROAD CONSTRUCTION PROJECT PERFORMANCE IN THE WERABE TOWN MUNICIPALITY

Abstract This research investigates the effect of Effect of contract management on road construction project performance Within Werabe Town Municipality. The study examines five key factors: planning, monitoring, compliance, communication, and risk management, which are believed to influence project performance. The primary objectives include determining the relationship between effective contract management and project performance, analyzing the current performance levels of road construction projects and assessing how these factors affect project outcomes in the municipality. The researcher utilized a structured questionnaire to gather data and employed descriptive and inferential statistical methods for analysis. A sample was drawn from stakeholders involved in road construction project using the Yamane formula. The findings indicate that all independent variables, except communication, positively and significantly influence project performance. The hypothesis regarding planning, monitoring compliance, and risk management were accepted, while the hypothesis for communication was projected. Although a positive correlation exists, it is essential for the Werabe Town Municipality to enhance the contract management environment, particularly focusing on improving communication practices to bolster project performance.