PROJECT COST CONTROL TECHNIQUES AND PERFORMANCE OF WATER PROJECTS IN KERICHO COUNTY, KENYA
Abstract
This study investigated on project cost control techniques on performance of water projects in Kericho County, Kenya. The study variables were grounded on the organizational control theory, the transaction cost theory and the theory of project management. The study applied descriptive research design and targeted 16 completed water projects as the unit of analysis. There was use of semi-structured questionnaires that was first pilot tested and found to be valid and reliable in collecting primary data. The findings showed that improvements in performance of the water projects was due to cost estimation using different models, price variations and forecast that helped in reducing cost overruns. Findings showed project budgeting significantly influenced performance of the water projects based on the budget guidelines, reducing risks, budgets informing project decisions and maximum utilization of resources. The monitoring and evaluation function helped improve performance by regular checks on progress of implementation of project plans, improving transparency, accountability and mechanisms. The results showed that project expenditure controls enhanced performance of the water projects setting limits, authorization process to access resources, monitoring costs and implementing cash flow management systems. The study concluded that project cost control techniques of cost estimation, budgeting, monitoring and evaluation and expenditure controls had positive and significant effects on performance of the water projects in Kericho County. The performance improved in terms of quality and sustainability of the project, keeping to the budget lines and completion on time. The study recommended project managers and team to implement cost control techniques for improvement in performance of projects. It also recommended that county governments to train contractors and project managers on budgeting, expenditure control, cost estimation and monitoring and evaluating project activities. It was recommended that the policy makers should formulate regulations and laws that support control of costs for delivery of quality projects.
Key Words: Cost Estimation, Budgeting, Monitoring and Evaluation, Expenditure Control
CITATION: Bichang’a, L. C., & Kimutai, G. (2023). Project cost control techniques and performance of water projects in Kericho County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 569 – 592. http://dx.doi.org/10.61426/sjbcm.v10i4.2776.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i4.2776
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