A Research Report Submitted in Partial / Fulfillment of the Requirements for Award of Master Degree in Procurement and Supply Chain Management (MSc. PSCM) by Mzumbe University Dar es Salaam Campus
The overall objective of this study was to assess the role of strategic procurement in promoting value for money in construction industry. Specifically the study aimed to examine the procurement cost management techniques that promotes value for money in construction industry, to examine how utilization of resources promote value for money in construction industry and to determine procurement quality management approaches that promotes value for money in construction industry. The study used a descriptive research design to describe the situation of the problem.
The researcher used the purposive sampling in which the researcher selected seventy nine (79) employees as a sample size of the Tanzania Building Agency (TBA). Questionnaire and interview methods were adopted in collecting the data from the respondent and were analyzed quantitatively with the aid of Statistical Package for Social Science (SPSS).
The findings of the study shows that procurement costs management techniques in general promotes value for money through cost planning and controlling, forecasting and value management. On the side of utilization of resources, it was found a challenge of inadequacy of resources especially machinery and equipment resource and lastly, procurement quality management approaches pointed out the benchmarking as rarely method in supporting quality.
The study concluded that cost planning and forecasting are implemented well and helps the management of TBA to attain value for money effectively. On the side of resource utilization it was concluded that machinery and financial resources should be added in order to support the project activities. Finally, the quality audit helps the quality assurance section in attaining value for money.
Therefore the study recommends, procurement costs management techniques should be strengthen more to ensure best value for money, resources in terms of machinery and equipment should be added in terms of purchasing the equipment or entering into framework hiring contract and quality approach especially bench marking should be conducted in order to provide further project reports in a detailed manner.