ASSESSING FACTORS INFLUENCING BREACH OF CONTRACTUAL
OBLIGATIONS IN CONSTRUCTION PROJECTS IN TANZANIA: THE
CASE OF DEVELOPMENT CONSTRUCTION PROJECTS
IMPLEMENTED BY LOCAL GOVERNMENT AUTHORITIES IN DAR ES
SALAAM
ALMA WILFRED
1. Background of the Study
• Construction is vital for economic and social development (Musarat et al., 2020).
• LGAs in Tanzania outsource infrastructure projects (roads, schools, health
centers) to private firms.
• Contracts govern these partnerships, ensuring accountability and performance
(Charrett, 2021).
• Globally, 45% of construction disputes arise from contract breaches (ICC, 2024).
• In Tanzania, CAG reports highlight major breaches: delayed payments, lack of
contract vetting, and terminations due to non-compliance (CAG, 2021; 2022).
2. Statement of the Problem
• Contract breaches cause delays, loss of public funds, and poor service delivery.
• Example: TZS 3.1 billion in delayed payments (CAG, 2021); TZS 29.3 million lost
due to breach (CAG, 2022).
• Despite global insights (Amoah, 2023), the specific factors behind breaches in
Tanzanian LGAs have not been sufficiently investigated.
• Without identifying the root causes of contractual breaches, LGAs may continue
to lose significant public funds due to delays,
• Hence, this study will assess factors influencing breach of contracts in the
construction projects implemented by LGAs in Dar es Salaam Region.
3. Research Objectives
The general objective of this study is to assess the factors influencing breach of contractual obligations in
construction projects in local government authorities in Dar es Salaam, Tanzania. Specific objectives include:
(i) To identify key factors contributing to the breach of contract in construction projects among local
government authorities.
(ii) To analyze the effects of breach of contract on project performance, including delays, cost overruns, and
stakeholder trust.
(iii) To propose strategies for minimizing breaches of contract in the implementation of construction projects.
4. Literature Review
• This study will be guided by the principal-agent theory.
• Principal-agent theory assumes that contractual relationships exist between parties in a
contract.
• The principal is an individual or organization that hires the agent to act in their best interest.
• The theory is relevant to this study because it highlights factors that may cause a breach of
contract.
• Therefore, will inform the assessment of the factors influencing local government
authorities’ non-compliance with contractual obligations in Dar es Salaam, Tanzania.
5. Methodology
Study Area
• Location: Dar es Salaam Region, Eastern Tanzania.
• Coverage: Ilala, Kinondoni, Temeke, Ubungo, and Kigamboni Municipal
Councils.
• The area was selected due to documented cases of contract breaches.
Research Approach
• The study will apply a qualitative approach.
• Enables in-depth exploration of factors influencing breach of contract.
• Captures subjective experiences through interviews and document review.
5. Methodology
Research Design
• Multiple Case Study Design with aFocus on 5 LGAs: Ubungo, Kinondoni,
Temeke, Kigamboni, and Dar es Salaam City Council.
• The cases are selected based on CAG-documented contract breaches
Target Population & Sample Size
• Target population is 33 stakeholders (18 Procurement Officers, 10 Contractors, and
5 Legal Officers)
• Sample: All 33 were included due to their small, manageable size.
Sampling Strategy
• Purposive Sampling: Selects participants with direct experience in LGA contract
implementation.
5. Methodology
Data Collection Methods
• Interviews: Open-ended, structured guide for all 33 respondents.
• Document Review: CAG reports and related contract documents.
Data Analysis
Thematic Analysis (Four steps):
• Transcription of interviews
• Coding and identification of themes
• Interpretation and synthesis of findings
• Integration with document review for comprehensive insights
