Assessment of the Adequacy of Value for Money Instrument used by Road Fund Board in Tanzania

Abstract

This research work deals with assessment of Value for Money practice in road construction in Tanzania. Value for Money practice could maximize performance and minimize costs so that we have maximum effectiveness, efficiency and economy for each project. Although assessment of Value for Money in roads construction projects has been done in Tanzania for number of years to date, still there is under performance scores for roads projects executed by Tanzania National Roads Agency. The specific objectives of this study were to assess the adequacy of the existing of Value for Money Instrument used in road construction in Tanzania, to identify challenges facing Value for Money Instrument in road construction in Tanzania, and to identify and recommend appropriate measures for improvement of Value for Money Instrument in road construction projects in Tanzania. For successfulness of this study, various research methods were adopted, which included case study, questionnaire and interviews as primary data collection methods. Also, various documents relevant to this study such as books, dissertations, journals, and reports posted to websites were reviewed so as to provide enough and relevant information in this study. This served as sources of secondary data. It was revealed that assessment of Value for Money in road construction in Tanzania is done using the Value for Money Instrument provided by Road Fund Board to projects executed by Tanzania National Roads Agency or Local Government Authorities. The barriers that are facing the practice include inadequate training and management support, lack of commitment to implement Value for Money practice , lack of expertise to thoroughly conduct Value for Money audits and lack of Value for Money qualified practitioners, also include time limit that has led projects activities to be rushed, difficulties in identifying and measuring outputs and outcomes, lack of awareness and involvement within stakeholders in project processes, inappropriate Value for Money assessment tool and wrong notion that Value for Money that it is a political issue. Upon mitigating revealed challenges, government should review Value for Money Instrument from time to time to improve its effectiveness, conduct more Value for Money training workshops and seminars in order to enlighten the stakeholders of the Value for Money practice in road construction, having sustainable Value for Money audit legal framework and coordination during auditing enables to realize value in project, therefore Value for Money audit should be conducted to assist in making the right decisions. Early decisions have major influence on future actions. The study recommends a study on the appropriate framework of Value for Money assessment in Tanzania as the area of further study. This study will come up with the common tools/instruments for VfM assessment in construction sector