ADOPTING CRITICAL BUDGETING PROCEDURES AS A DIMENSION OF COST MANAGEMENT FOR SUCCESSFUL IMPLEMENTATION OF POWER SUBSTATION PROJECTS IN NAIROBI METROPOLITAN
Abstract
Project implementation more often than not meet management related issues among them being cost management challenges leading to cost overruns and delays in project completion. It has been argued that close to 47% of projects fail in Nairobi City County alone in Kenya. This failure is often attributed to poor cost management among other governance issues. This paper highlight some of the practices adopted in budgeting procedures as an aspect of cost management and its contribution to the successful implementation of substation power projects in Kenya. The paper aims to uncover the relationship between budgeting and successful implementation of substation power projects within Nairobi Metropolitan in Kenya. The key budget procedures of budget estimation, budget plans, budget schedules and adherence to budget activities as well as setting aside adequate budgetary allocation for projects. The data from 54 power substation projects in Nairobi metropolitan were used to bring out the findings discussed in this paper. From the findings, budgeting procedures contributes significantly to project implementation with a regression coefficient of 0.485. The paper concludes that budgets are critical aspect cost of management. The paper recommends more emphasis to be made in creating budget plans, adhering to budget allocations and creating budget baselines for cost management. Future researchers can include budget deficits and other resources in project implementation for a wide range of projects as well as increasing the scope.
Key Words: Budgeting, Cost management, Power Substations, Metropolitan
CITATION: Ngeta, T. M., & Nkirina S. P. (2025). Adopting critical budgeting procedures as a dimension of cost management for successful implementation of power substation projects in Nairobi Metropolitan. The Strategic Journal of Business & Change Management, 12 (2), 519 – 526. http://dx.doi.org/10.61426/sjbcm.v12i2.3225
Full Text:
PDFReferences
Amusan, L., Dolapo, D., & Joshua, O. (2021). Cost and Time Performance Information of Building Projects in Developing Economy. International Journal of Mechanical Engineering and Technology (IJMET, 8(10), 918–927.
Andreas, P., & Johansen, A. (2020). Managing Cost and Time in a Large Portfolio of Projects. Procedia Economics and Finance, 21, 502-509.
Flyvbjerg, B., Stewart, A., & Budzier, A. (2023). The Oxford Olympics Study 2016: Cost and cost overrun at the games. arXiv preprint arXiv:1607.04484.
Frimpong, Y., & Oluwoye, J. (2022). Project Management Practice in Groundwater Construction Project in Ghana. American Journal of Management Science and Engineering, 3(5), 60-68.
Munim, Z. H., & Schramm, H. J. (2022). The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade. Journal of Shipping and Trade, 3(1), 1-19.
Nor, M., Rahmat, M., Azmi, N., & Rahim, M. (2022). Challenges of cost management technique implementation during pre-tender in Klang valley construction project. Web of Conferences, 347.
Schönbeck, P., Löfsjögård, M., & Ansell, A. (2020). Framework for change control in healthcare construction projects compared to current practice. International Journal of Construction Management, 22(12), 2405-2412.
Solomon, B & Berhanu, M. (2021). The Impact of Project Cost Management on the Overall Success of Project Management: The Case of HEINEKEN Brewery Share Company. [ Unpublished Thesis]. Addis Ababa University.
Wauters, M., & Vanhoucke, M. (2016). A comparative study of Artificial Intelligence methods for project duration forecasting. Expert Systems with Applications, 46, 249–261.
Yeri, T. (2022). Determinants of Successful Implementation of Infrastructure Projects in Devolved Units in Kenya: A Case of Kilifi County, Kenya [Unpublished doctoral dissertation]. University of Nairobi.
DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3225
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.