Management of Project Alliancing and Performance of Building Construction Projects in Nairobi City County, Kenya
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Date
2024-07
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Kenyatta University
Abstract
Project alliancing is a delivery approach where all parties involved in the contract share joint accountability for the project's conception, execution, and completion. Project alliancing is important and is particularly relevant in the context of modern construction projects, which often involve complex, uncertain conditions, tight budgets, and stringent schedule constraints. In the construction sector, project alliancing has emerged as a promising approach to address persistent contractual issues. This study's objective was to assess the performance of building construction projects in Nairobi City County, Kenya, with a focus on application of project alliancing. Specifically, it examined the mutual impact of stakeholders' project performance, communication, responsibility, and risk management techniques in building projects. The theoretical frameworks guiding this study included principal-agent theory, framing theory, team role theory, and theory of performance. A descriptive survey design was employed, targeting 6760 stakeholders (clients, consultants, and contractors) involved in current building construction projects in Nairobi City, County. Stratified random sampling technique was employed to select 320 respondents, including clients, consultants, contractors, and subcontractors. Data was collected using semi-structured questionnaires and interviews, and analyzed using SPSS version 29, a statistical software for social sciences. Descriptive statistics such as frequencies, means, and standard deviations were generated, while inferential statistics were derived from regression analysis and correlation coefficients. Diagnostic tests, including multicollinearity and autocorrelation, were also conducted. Qualitative data was categorized according to themes. Reliability and validity tests were carried out during pilot test. The results revealed a weak correlation between stakeholder communication and project performance, attributed to insufficient information flow, infrequent meetings, and inadequate information infrastructure. However, accountability showed a significant positive influence on performance by enhancing transparency, reliability, and internal control measures. Additionally, there was a statistically significant association between risk management and performance, due to the presence of technical expertise, equitable resource allocation, and effective conflict resolution strategies. The study also demonstrated a substantial impact of mutual project objectives on performance, stemming from clear and quality project purposes. The researcher concluded that the decline in project communication and risk management might be due to some staff members' skills not aligning with performance requirements in Nairobi City's building construction projects. Although employees might have the educational background to handle other issues, they may lack expertise in these two critical areas. The study recommends the importance of effective communication in executing building projects. Construction industry should adopt robust risk management solutions to ensure project success, influencing both completion time and cost. Achieving common project objectives is also crucial for enhancing the performance of construction projects across various operational sectors.
Description
A Research Project Submitted to the Schoool of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree in Master of Business Administration (Project Management) of Kenyatta University, July 2024.
Supervisor
Gladys Kimutai