Cost-Related Risks and Completion of Commercial Building Construction Projects in Kisumu County, Kenya

Abstract

For any country to succeed in the 21st century, infrastructure development is critical. Its objective is to create a significant number of employment and accelerate economic growth. Therefore, there is a need for heavy financial investment in projects involved in infrastructure development. However, one needs to consider the waste of resources a country could incur if the project is not managed properly. These losses result from a variety of risks connected to these sorts of development initiatives. These risks have a significant influence. For a project to be completed successfully, it has to be within the schedule and allocated budget. The objective of the study was to determine the influence of cost-related risks on completion of commercial building construction projects in Kisumu County. This research was guided by theory of constraints. The research used a descriptive survey research design. The research was conducted in Kisumu County and the target population constituted of structural engineers, civil engineers, construction project managers, mechanical engineers and electrical engineers making a total of 400 respondents. Yamane formula was applied in determining the sample size which was 234 respondents. Stratified sampling method was applied in selecting a sample size. Questionnaires were used to obtain primary data while contract documents, journals and progress reports from the identified projects were utilized to collect secondary data. With the assistance of a computer software, Statistical package for Social Sciences, descriptive statistics was applied in analyzing quantitative data for statistics. Inferential statistics was done through Pearson Correlation Coefficient and Regression Analysis was utilized. It was established that cost related risks with r=0.430, r2=0.185, β=0.004, t=7.151 and the F (1, 173) = 47.79 at p=0.000<0.05, concluded that the variable had a positive significant completion of commercial building construction projects. The research recommended that there is need to consider cost of the project intensely in the start period to prevent problems that bring construction delays. The research suggested that research should be done on how to create a predictive model for the execution of commercial construction building.