The practice of performance-based contracting in developing countries’ public procurement: The case of Ethiopia

Baynesagn Asfaw Ambaw, Jan Telgen

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    Abstract

    Performance-Based Contracting (PBC) is widely accepted as a useful tool. It is believed that the use of PBC can assist the efficient utilization of the public resources. The objective of this research is to assess the extent of PBC application and the obstacles to applying it in the public procurement systems of developing countries. Interviews and factual analysis of procurement guidelines and contracts are used to collect data for this research. The analysis results indicate that the majority of public organizations have not yet used PBC even though it is allowed by the law. This is due partly to lack of clarity in the procurement laws and lack of capacity to use PBC.

    Original languageEnglish
    Pages (from-to)402-431
    Number of pages30
    JournalJournal of public procurement
    Volume17
    Issue number3
    Publication statusPublished - 1 Sep 2017

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