PROJECT COST MANAGEMENT PRACTICES AND PERFORMANCE OF SEWERAGE MANAGEMENT PROJECTS IN NAIROBI CITY COUNTY, KENYA

Wendy Kamathi Baariu, Dr. Mary Kamaara

Abstract


The performance of sewerage management projects funded by the National Government in Kenya has been a major concern, especially because of the huge benefits to be accrued by the beneficiaries and as well because of the huge investments made on these projects. The purpose of this study is to examine the influence of project cost management practices on performance of sewerage management projects in Nairobi city county, Kenya. Specifically, the study sought to assess the influence of cost budgeting and cost control on performance of sewerage management projects in Nairobi city county, Kenya. This study was guided by Theory of Constraints and The Control Theory. This study adopted a descriptive research design. There are a total of 167 employees involved in the projects 64 government representatives and 39 local authorities as at October 2021 (Ministry of Water and Sanitation, 2021). The unit of observation comprised these 270 respondents from the 18 sewerage management projects in Nairobi city county, Kenya. The study adopted census approach since the population under study is small and use questionnaires for data collection. The sample for piloting was 10% of the sample hence 27 respondents. This study used both construct validity and content validity. The Cronbach Alpha coefficient was used to measure the consistency of variables. Primary data was analyzed using both descriptive statistics (frequency, percentage, mean) inferential statistics that included Pearson correlation and regression. The study concludes that that cost budgeting has a significant effect on performance of sewerage management projects in Nairobi city county, Kenya. The study also concludes that cost control has a significant effect on performance of sewerage management projects in Nairobi city county, Kenya. This study recommends that project managers should conduct a thorough and accurate assessment of project requirements, considering all aspects such as materials, labor, equipment, and potential risks.

 

Key words: Cost control, Cost budgeting, Project cost management practices, Project performance


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