Cost overruns on infrastructure development projects during implementation continue to pose great challenges to developing countries. Research has found that, there are many factors that impede on successful completion of projects on time, budget, and quality. This study seeked to investigate on the factors that significantly contribute to inaccurate cost estimates on plant installation projects implemented by Richfield Engineering Limited and analyse their impact. The four variables were considered as significant in contributing to inaccurate cost estimates, namely; estimator knowledge and experience, scope assumptions, available time and cost models as significant contributors to cost variations.This study reviewed available literature and theories about project cost estimation thus theory of Learning Curve (LC), triple constraint theory, Complexity Theory and S-Curve theory. The descriptive research design was identified as the design of this study. The population of this study was 1000 REL employees and associates working in the area of projects operations and management. The study used a census sampling technique. Primary data was collected using interview and questionnaire and secondary data was collected by reviewing published materials. The data was presented in tables, charts and figures. The study lead to conclusions whether the identified variables and underlying factors contribute to inaccurate cost estimates in plant installation projects in Kenya. The results should enable planners to take stock of past performance and incorporate lessons learned on future projects planning and implementation.

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