Steve Ogachi Ogega, Dr. Maurice Pedo


This study sought to evaluate the effect of cost management on performance of construction projects in public hospitals in NCC, Kenya. The specific objectives were to establish the effect of cost planning, cost monitoring and control on performance of construction projects. Performance of construction projects was measured using metrics of adherence to budget, quality and completion time. This study used a descriptive research design with a questionnaire as the instrument for data collection. The study targeted 200 technical personnel involved in Engineering Procurement and Construction (EPC) Projects in 57 healthcare facilities managed by NCCG. The unit of analysis was public healthcare projects managed by the NCCG. The unit of observation was project team members i.e. project managers, Contractors, Architects, Engineers, Quantity Surveyors, implementing infrastructural projects in the public hospitals. The study conducted a census survey on all construction projects in public hospitals in NCC. A pilot study was conducted to check the validity and reliability of the research instruments. A pretesting sample of 10% of the target population was studied. It involved projects in public hospitals within Nairobi County but managed by the National Government and from the private sector. Reliability was tested using the internal consistency method. A threshold value of 0.7 as suggested by the Cronbach Alpha coefficient was adopted for the study.  Also, the pilot study tested the validity of the research instruments. Aspects of content and face validity where the tools were checked by industry experts and the supervisors was used. Additionally, using the confirmatory test analysis, construct validity was used to test suitability of variables. A factor loading of at least 0.4 was set as the benchmark for this study. Data collected was analyzed using Statistical Package for Social Science (SPSS) version 25 to produce frequencies, descriptive and inferential statistics were used to derive conclusions. Quantitative data was analyzed through the use of descriptive statistics e.g. standard deviation, mean scores, significance, etc. The study conducted a multiple regression analysis, Pearson correlation, t-test and ANOVA to determine the relationship between cost management and performance of construction projects. The study presented findings in form of tables and figures. Correlation results revealed that cost planning influences the performance of construction projects positively. The results also indicated that there was a positive and significant relationship between cost control and performance of construction projects.

Key Words: Cost management, Cost planning, Cost monitoring and control, Performance, Construction projects

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