Project Cost Management Processes and Successful Implementation of Construction Projects in Kiambu County, Kenya

Abstract

The construction industry in Kiambu County, Kenya, faces challenges such as cost overruns, delays, and poor-quality outcomes. The purpose of this study was to establish the moderating effect of regulatory environment on the relationship between project cost management processes and successful implementation of construction projects in Kiambu County, Kenya. Specifically, the study sought to: determine the effect of cost estimation, budgeting, cost control and cost monitoring on successful implementation of construction projects in Kiambu County. It also sought to determine the moderating effect of regulatory environment on the relationship between project cost management processes and successful implementation of construction projects in Kiambu County. The study was underpinned by triple constraint, project life cycle costing and stakeholder theories as each offer unique lenses for examining cost management in construction projects. This study was grounded in the positivism research philosophy and employed a descriptive correlational research design. The total population consisted of 320 professionals involved in public construction projects in Kiambu County. Out of the total population of 320, the study targeted 256 individuals. Yamane’s (1967) formula was used to get the sample size of 156 respondents. This study employs stratified random sampling, appropriate for heterogeneous populations segmented by role or expertise. To enhance instrument validity, the questionnaire underwent expert review for content validity and was pilot-tested on a sample of 15 respondents in Nairobi County. Construct validity was evaluated using Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test of Sphericity. Reliability test was done using Cronbach’s alpha. Data was analyzed using descriptive statistics, correlation analysis, and significance testing through t-tests and F-tests in SPSS. The study’s findings were expected to provide empirical insights that support policy formulation, promote efficient cost management processes, and improve construction project outcomes across Kenya’s devolved units. The regression model (R² = 0.777, F = 76.104, p < 0.001) showed that 77.7% of variations in successful implementation of projects was explained by project cost management processes and regulatory environment. Cost estimation (β = 0.441, p = 0.000), budgeting (β = 0.336, p = 0.000) and cost monitoring (β = 0.079, p = 0.038) had positive and significant effects on successful implementation of construction projects. Cost control (β = -0.029, p = 0.394) had an insignificant negative effect. The regulatory environment had a significant negative moderating effect (β = -0.223, p = 0.041). The study found that project cost management processes have a positive effect on successful implementation of construction projects in Kiambu county. However, cost control has no significant effect on successful implementation of the construction projects in Kiambu county. The study recommends strengthening estimation and budgeting frameworks, enhancing digital monitoring systems, and streamlining regulatory communication. Further research should consider other project types, counties, private-sector projects, alternative analytical models, and secondary data to validate and expand these findings.