INFLUENCE OF PROJECT COST CONTROL INFLUENCES PERFORMANCE OF CONSTRUCTION PROJECTS IN RWANDA: CASE OF BAXONS CONSTRUCTION LIMITED
Abstract
Construction projects are complex endeavors that demand meticulous planning, execution, and monitoring to ensure their successful completion. This study explores the critical relationship between effective project cost control and project performance, with a specific focus on Baxons Construction Limited in Rwanda. Baxons Construction Limited is a prominent construction company in Rwanda, and understanding the impact of cost control on its projects is essential for its continued success. The study drew upon various theoretical frameworks, including Resource-Based Theory, Programme Theory, Risk Management and Uncertainty Theory, and Theory of Constraints. The research employed a descriptive survey methodology. The sample size for this study comprised 143 employees who are actively engaged in project management within Baxons Construction Limited. The main participants in this study comprised senior managers, project managers, project teams, and stakeholders. A total of 106 questionnaires were disseminated among the participants. The stratified sampling approach was employed to pick the sample. The acquisition of primary data was expedited through the administration of questionnaires. A preliminary investigation was conducted in order to evaluate the accuracy and consistency of the research tools. In this study, a total of 11 questionnaires were administered to the employees of Eagle Innovation Limited. The assessment of reliability was performed using Cronbach's Alpha. The evaluation of instrument validity was carried out through the utilization of expert opinion. After the data has been collected and cleaned, it was subjected to descriptive analysis and multiple regression analysis. The examination of data was carried out using a combination of qualitative and quantitative approaches, and the statistical programme SPSS version 21. The model demonstrated a high coefficient of determination (R Square = 0.811), indicating that approximately 81.1% of the variability in project cost control can be accounted for by the predictors included in the model. The adjusted R Square value (0.810) confirms the model's robustness. The F-statistic of 477.125 (p < .001) indicates the model's overall statistical significance. Project cost control shows a highly significant positive association with project performance (t = 21.843, p < 0.001), with a standardized beta coefficient of 0.901, indicating a strong positive effect. In conclusion, the research underscores the pivotal role of effective project cost control in ensuring the timely delivery, quality, and financial viability of construction projects, with specific insights drawn from the case of Baxons Construction Limited in Rwanda, offering valuable lessons for the construction industry's sustainable growth and success. By adopting modern technology and incorporating best practices in project cost control, construction companies can optimize resource utilization, reduce budget overruns, and enhance overall project performance. This recommendation aligns with the evolving demands of the construction industry in Rwanda, emphasizing efficiency, sustainability, and competitiveness. For further studies in this area, it was recommended to explore the implementation of advanced cost control methodologies, such as Earned Value Management (EVM) or Building Information Modeling (BIM), and their specific impact on construction project performance in the Rwandan context.
Keywords: Project Cost Control, Construction Projects, Performance, Rwanda, Baxons Construction Limited
CITATION: Baributsa, O., & Njenga, G. (2023). Influence of project cost control influences performance of construction projects in Rwanda: case of Baxons Construction Limited. The Strategic Journal of Business & Change Management, 10 (4), 902 – 915. http://dx.doi.org/10.61426/sjbcm.v10i4.2795
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i4.2795
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