Analysis of local contractors’ performance in irrigation infrastructure construction projects in Tanzania.

Most irrigation infrastructure review reports indicate that there is a mismatch between the values accruing from the built infrastructures and the funds used to construct them. This situation is partly caused by poor construction capabilities of local contractors. This study sought to investigate factors responsible for underperformance of irrigation infrastructure projects in Tanzania particularly those that have been implemented by local contractors. The target population of the study is all District Irrigation Development Fund (DIDF) projects executed between July 2006 and June 2011. Data were collected by using questionnaire and interview which sought opinions from individual professionals working with contractors, consultants and clients in public irrigation sector. Also, documentary review provided the facts of information from project reports. The findings reveal that the main problem is the unrealistic budgeting of the infrastructure projects. Several clients favor the award to lowest bid price in lieu of the lowest evaluated bidder even if the bid is lower than the Clients cost estimates that may result into sub-standard work. Further analysis indicate that the general level performance of contractors in irrigation project is between sixty [60] and seventy [70] percent which is considered as a fair performance. As for the critical factors influencing contractors' performance in irrigation projects, it is revealed that the include cost/ financial management, contract management, time management and equipment management. The study recommends that contractors should form joint ventures with competent local contractors so as to improve their capabilities and capacities.