Weak contract management, poor tendering processes, and inadequate follow-up are the leading causes of disputes in public procurement, according to officials. The concerns were raised during a capacity-building workshop on contract management convened on February 13 by the Ministry of Justice at the National Institute of Statistics of Rwanda (NISR). The workshop brought together public contract managers and procurement officers from various government institutions to strengthen their skills and improve coordination in managing public contracts. Theophile Mbonera, the Permanent Secretary at the Ministry of Justice, said effective contract management has never been more critical, particularly as Rwanda advances its development ambitions under the second National Strategy for Transformation (NST2). ALSO READ: Delays, inflated costs 'hit public projects' under new system “Contracts are the backbone of how public institutions translate policies, plans, and budgets into real results,” Mbonera said. “Whether we are talking about infrastructure projects, procurement of goods and services, or public-private partnerships, contracts are the instruments through which commitments are made and obligations enforced.” However, he noted, signing a contract is only the beginning. Many challenges arise not necessarily because contracts are poorly drafted or negotiated, but because they are poorly managed after signature. According to Mbonera, reports from the Auditor General, deliberations of Parliament’s Public Accounts Committee, and cases brought before courts and arbitral tribunals continue to highlight weaknesses in government contract management. Visits conducted by the ministry’s contract management team revealed persistent procedural gaps and weak coordination among actors involved in contract implementation. “In today’s environment, contracts are becoming more complex, more technical and more interconnected with legal, financial and operational risks,” he said. “This requires institutions to move beyond ad hoc approaches and invest in professional, systematic contract management capacity.” Statistics shared during the workshop underscored the magnitude of the challenge. David Furaha, the Director General for Legal Advisory Services in the Ministry of Justice, said that an assessment of 849 cases involving the government between 2020 and 2023 showed that 228 cases, equivalent to 28.85 per cent, were related to contract management. While the government won 201 of those cases, it lost 27, representing 9.3 per cent. Furaha also cited the Auditor General’s report for the year ended June 30, 2024, which pointed to 17 delayed contracts worth about Rwf130.77 billion, 23 stalled construction projects valued at Rwf19.02 billion, and 491 idle assets in 45 public institutions worth Rwf7.90 billion. The figures reflect inefficiencies in contract and asset management. “Most government spending is through public procurement contracts, with few exceptions,” Furaha said. “Negotiating a contract is only part of the relationship. Institutions’ commitment to adequately manage negotiated contracts determines whether intended objectives are achieved.” He said poor contract management contributes to project abandonment, unnecessary delays, delivery of substandard goods and services, and loss of public funds, issues that should not be tolerated by public office holders. Furaha also highlighted recurring challenges in both the pre-contractual and post-contractual phases. In the pre-contractual phase, common issues include poor tendering processes, awarding contracts to bidders without the required technical or financial capacity, and in some cases to blacklisted companies. He also cited awarding tenders to bidders offering unreasonably low prices without proper due diligence or verification of submitted information. Weak contract negotiation and drafting were also identified as root causes of future disputes. Providence Tumukunde, a contract management specialist at EDCL, said contractors often commit to delivering within a specific timeframe but later face execution challenges. She noted that institutions are sometimes poorly prepared or inadequately plan projects before launching tenders. She said the workshop would help participants strengthen their ability to handle disputes that may arise between institutions and contractors and ensure delivery of what is expected under the contract. In the implementation phase, poor communication between contracting parties, unclear roles and responsibilities, inadequate documentation, and failure to follow contractual procedures were cited as key triggers of disputes. Furaha noted that many problems escalate because institutions fail to conduct daily follow-ups, only reacting when it is too late to correct course. The workshop aimed to address these gaps by helping participants better understand their roles and responsibilities, embrace proactive interventions and improve record-keeping practices. Proper documentation, officials emphasized, is essential in building strong evidence in case of litigation and ensuring accountability. Participants were encouraged to institutionalize routine review meetings with relevant stakeholders to share updates, resolve emerging challenges, and enforce best practices. Mbonera urged contract managers to change their mindset and view contract management not as a routine administrative task but as a strategic function requiring competence, coordination, and professionalism. “The successful implementation of national strategies depends in large part on how well public contracts are planned, executed, and monitored,” he said. “Every poorly managed contract undermines efficiency, delays progress, and diverts scarce resources from priority needs.” Effective contract management also enhances investor confidence by ensuring that contractual commitments are honoured and disputes are managed professionally, he added.
