Contractors Capacity and Performance of Road Construction Projects in Nairobi City County, Kenya
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Date
2025-10
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Kenyatta University
Abstract
Research on project performance emphasizes adherence to cost and schedule, which is crucial for achieving objectives and maintaining quality. In Kenya, 56% of road construction projects experience cost overruns, delays, and poor outcomes. This study addresses gaps in understanding contractor capacity specifically financial, technical, managerial, and regulatory compliance to improve road construction performance in Nairobi. It assesses contractors' capacity and its effect on the outcomes of road construction initiatives. The main aim was to investigate how the competence of contractors affects the execution of specific road projects within the county. The specific objectives included evaluating the effects of contractors' financial capacity, regulatory compliance, technical expertise, and organizational capabilities on project performance. The study aimed to benefit government stakeholders, as well as private and public contractors specializing in road development. It drew insights from the Cost-Benefit Analysis Model, Stakeholder Theory, Theory of Constraints, and the RBV. A descriptive research design was employed, targeting five road projects within Nairobi City County. Respondents included engineers from the Ministry of Roads, technical auditors, contractor consultants, and engineers from the KURA, totaling 75 individuals responsible for overseeing road construction in the county. Data collection was conducted using questionnaires, while analysis involved quantitative methods, including descriptive and inferential analyses. Descriptive analysis provided key statistical insights such as mean, standard deviation, and percentages for data summarization, while inferential analysis employed correlation and multiple linear regression to explore relationships between the study variables. The findings revealed an R-square value of 0.727, indicating that 72.7% of variations in road construction project performance in Nairobi City County were explained by contractors' capacities technical, financial, organizational, and regulatory compliance while 27.3% were attributed to other factors. To enhance road construction project performance, contractors should improve technical capacity through training, modern technology adoption, and skilled personnel. Strengthening financial capacity, enhancing organizational structures, and ensuring regulatory compliance are also crucial. Future research should explore technological advancements, financial models, leadership roles, regulatory impacts, and broader geographic comparisons
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Degree of Masters of Business Administration (Project Management) of Kenyatta University, October, 2025
Supervisor:
1.Lucy Ngugi