Project Cost Control Techniques and Performance of Water Projects in Kericho County, Kenya
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Date
2024-06
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Publisher
Kenyatta University
Abstract
Projects are developed to carter for needs of the people and for socio-economic development of the population and communities. The project implementation phase incurs huge costs and hence the need to incorporate measures in the project plan that will manage costs and lead to successful projects. Many projects experience cost and time overrun, abandonment, stalling, incomplete and under-performing and delivery of poor-quality projects. The same applies to water projects and thus denies the general population and chance to enjoy benefits of the resource and improve their livelihood. As a means to improve project performance, this study focused on project cost control. The main objective was to investigate on project cost control techniques on performance of water projects in Kericho County, Kenya. Cost estimation, budgeting, monitoring and evaluation and expenditure control of projects were the specific objectives. The study variables were anchored on the organizational control theory and supported by the transaction cost theory and the theory of project management. The study applied the descriptive research design and targeted 16 completed water projects as the unit of analysis. Census of all the water projects and respondents were placed in strata hence stratified sampling was employed. There was use of semi-structured questionnaires that was first pilot tested and found to be valid and reliable in collecting primary data. The collected quantitative data was then analyzed using descriptive, multiple regression and Pearson correlation methods and content analysis was done on the qualitative data. Diagnostic test was done using multicollinearity, normality test and autocorrelation revealing the data set and model fit. The findings showed that improvements in performance of the water projects was due to cost estimation using different models, price variations and forecast that helped in reducing cost overruns. Findings showed project budgeting significantly influenced performance of the water projects based on the budget guidelines, reducing risks, budgets informing project decisions and maximum utilization of resources. The monitoring and evaluation function helped improve performance by regular checks on progress of implementation of project plans, improving transparency, accountability and mechanisms. The results showed that project expenditure controls enhanced performance of the water projects setting limits, authorization process to access resources, monitoring costs and implementing cash flow management systems. The study concluded that project cost control techniques of cost estimation, budgeting, monitoring and evaluation and expenditure controls had positive and significant effects on performance of the water projects in Kericho County. The performance improved in terms of quality and sustainability of the project, keeping to the budget lines and completion on time. The study recommended project managers and team to implement cost control techniques for improvement in performance of projects. It also recommended that county governments to train contractors and project managers on budgeting, expenditure control, cost estimation and monitoring and evaluating project activities. It was recommended that the policy makers should formulate regulations and laws that support control of costs for delivery of quality projects.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Project Management Option) of Kenyatta University, June 2024.
Supervisor
Gladys Kimutai