PROJECT SCOPE MANAGEMENT AND PERFORMANCE OF REAL ESTATE DEVELOPERS’ PROJECTS IN MACHAKOS COUNTY, KENYA
Abstract
The estimated housing demand in urban areas is approximately 150,000 units per year yet the current supply is about 30,000 units. According to KNBS (2014), the sector recorded a growth of 4.8 per cent in 2012 while cement consumption rose by 1.7 per cent (from 3,870.9 thousand tonnes in 2011 to 3,937.3 thousand tonnes in 2012). This study therefore sought to establish the effect of project scope management on performance of real estate developers’ projects in Machakos County, Kenya. Specifically, the study sought to assess the effect of scope definition on performance of real estate developers’ projects in Machakos County, Kenya and to examine the effect of scope change management on performance of real estate developers’ projects in Machakos County, Kenya. The study was based on two theories namely; Resource Based View Theory (RBV) and theory of constraints. This study used a descriptive research design. The target population comprised of 414 employees working in 46 commercial real estate companies that are engaged in Commercial Real Estates development in Machakos County and regulated by the National Construction Authority. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 199 respondents were chosen with the help of stratified random sampling technique. This study used structured questionnaires to collect primary data. The collected data was analysed through use of descriptive and inferential statistics with the help of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study results were presented through use of tables and figures. The study concluded that there is a significant direct correlation between scope definition and performance of real estate developers’ projects in Machakos County, Kenya. The study found that scope change management had a positive and significant relationship with project performance. The study therefore concludes that applying the assessment tool in the course of a project life cycle can assist a project management team to determine whether or not change dynamics are being adequately addressed. To deal with the challenge of changing scope, project managers should develop a clear schedule, determine project goals, ensure everyone is in the same page, make realistic assumptions regarding availability of resources, and deadlines to achieve quality results
Key Words: Scope Definition, Scope Change Management, Performance Of Real Estate Developers’ Projects, Project Scope Management
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