“The Effect Of Procurement Practices On Project Cost In Ethio Telecom Central West Region‟

Abstract

The objective of the study was to assess the effect of procurement practices on project cost at Ethio Telecom Central West Region. The study was used a quantitative research approach in addition to explanatory research design approaches. The censes method was used to select a sample of 50 respondents from the total population of 340. The respondents were members of Procurement, Supply Chain, management and Finance team of Ethio telecom central west region was used. Primary and secondary data were used. Through well-organized questionnaires and interview data were collected. The collected data were processed, analyzed by SPSS 25 Edition software and presented in the table, charts and words. This research has discovered that there is a very high dependency of effective procurement practices on project cost on suppliers’ compliance with terms and conditions, suppliers’ technical capability and close monitoring of suppliers during project implementation. Therefore, procurement cost management is essential for effect of procurement practices on project cost. Furthermore, the study recommends, since the effect of procurement is not simple matter, it is advisable to exist clear and open procurement bid transparency, communication among suppliers, workers and departments for better performance and to achieve the goal of Ethio telecom central west region.