Effectiveness of regulatory and institutional frameworks governing public construction projects' contract management in Lesotho

Abstract

Introduction: Effective contract management is crucial for the successful delivery of public construction projects. In Lesotho, despite the enactment of the Public Procurement Act (2023), public sector construction continues to suffer from inefficiencies, contract disputes, and weak regulatory enforcement. This study investigates the effectiveness of Lesotho’s regulatory and institutional frameworks governing contract management in the public construction sector.

Objectives: The study aims to (1) evaluate the enforcement of procurement and contract management regulations, (2) assess the institutional capacity of regulatory bodies and professionals, and (3) analyze the application of key performance indicators (KPIs) in public construction contract governance in Lesotho

Methods: A mixed-methods approach was employed. Quantitative data were collected through surveys of 136 professionals involved in public construction, while qualitative insights were obtained via structured interviews and document analysis. Stratified and purposive sampling techniques ensured broad stakeholder representation. The study is grounded in institutional theory and assesses formal regulations, enforcement mechanisms, and governance capacity.

Results: Findings reveal that over 63% of stakeholders perceive regulatory enforcement as ineffective or minimal. Audit practices are inconsistent, with 60% reporting rare or nonexistent audits. Around 30% of participants lack formal training in contract regulations. Cost and time remain the dominant KPIs, while quality and dispute resolution are underemphasized. Political interference, limited digital tools, and low institutional autonomy further weaken governance effectiveness.

Conclusions: Lesotho’s contract management challenges stem not from a lack of legal frameworks but from their weak implementation. The study recommends institutional reforms, including the establishment of an autonomous Contract Management Authority, mandatory digital procurement systems, continuous professional training, and broader KPIs encompassing quality and dispute resolution. These reforms are vital for enhancing transparency, efficiency, and accountability in Lesotho’s public infrastructure projects.