COST MANAGEMENT PRACTICES AND SUCCESSFUL IMPLEMENTATION OF SUBSTATION POWER PROJECTS WITHIN NAIROBI METROPOLITAN IN KENYA

Timothy Mbai Ngeta, Dr. Severina Nkirina

Abstract


Many projects face challenges of cost management leading to cost overruns and delays in project completion. Approximately 47% project failure rate was reported in Nairobi County which indicates challenges of project management and project performance. The purpose of the study was to examine cost management practices and successful implementation of substation power projects in Kenya. The specific objectives were to establish the effect of planning and budgeting on successful implementation of substation power projects. The theories that guided               this study are theory of constraints and theory of budgeting. This study used a descriptive design with questionnaire as the instrument for data collection. Reliability of the study instrument was established using Cronbach Alpha, internal consistency method. Validity of the research instrument was determined using content and construct validity. The target population was 54 substation power projects implemented by Kenya Power, Kenya Electricity Generating Company and Kenya Electricity Transmission Company. The unit of observation was one project manager. The study conducted a census on all projects. Data collected was analyzed using SPSS version 28 to produce frequencies, descriptive and inferential statistics was used to           derive conclusions. The study conducted a multiple regression analysis to determine the relationship between cost management and successful implementation of substation power projects. The study presented findings in form of tables and figures. The study concluded that planning has the most positive significant influence on successful implementation of substation power projects within Nairobi Metropolitan in Kenya. In addition, the study concluded that budgeting has a significant influence on successful implementation of substation power projects. Based on the findings, the study recommends that project managers, engineers and contractors involved in implementation of projects should use effective cost planning to enhance cost management and improve implementation. Since cost planning have the most significant effect on implementation, there is a need to implement effective cost planning techniques such as resource planning and cost scheduling to improve project implementation. The study recommends selection of competent project managers to conduct effective cost planning.

 

Key Words: Cost Management Practices, Planning, Budgeting, Successful Implementation of Substation Power Projects


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