Abstract
Construction of roads in Kenya, particularly done by local contractors, has adversely been faced with serious issues to do with cost overruns, longer periods in completion and above all poor quality upon completion. However, performance of roads in the post-delivery or post construction stage has not keenly been assessed or studied despite poor workmanship. Although financial aspect has been associated with completion road construction projects, studies have not used this predictor variable to study performance. The aim of the study was to establish the influence of financial ability of contractors and performance of road construction infrastructural projects in Nairobi County, Kenya. Both descriptive survey research and correlation research designs were adopted in this study. A target population of 460 comprising all public service vehicle drivers plying Eastern Bypass, and Outer-ring roads in Nairobi, as well as the contractors and engineers from the construction firms in Nairobi County. A sample of 210 was drawn from both categories of respondents and served with interview schedules out of which 153 were returned representing 72.8%. Results from the simple linear regression model revealed that contractors’ financial ability, explains 44.7% total variation in the performance of road construction infrastructural projects. This relationship was established to be lineally positive and strong (r=0.669) and also significant (P=0.000<0.05). The study findings play a vital role in construction project management during evaluation process of selecting effective contractors for better road performance.
Highlights
Large-scale construction is likely to be affected by finances and poor performance. Berman and Bianchi (2005) found that banks could facilitate the acquisition of other loans because of contractor’s quality image and good reputation in the financial markets
This comprised of 106 contractors and 104 Public Service Vehicles (PSVs) matatu drivers
It is important to note that the significant relationship between financial ability of contractors and performance of road construction infrastructural projects is because such projects are normally finance-intensive
Summary
Large-scale construction is likely to be affected by finances and poor performance. Berman and Bianchi (2005) found that banks could facilitate the acquisition of other loans because of contractor’s quality image and good reputation in the financial markets. Awards of major construction contracts in developing countries are skewed in favor of foreign counterparts against local contractors since the foreign firms are considered more technically and managerially advanced and well-organized in funds mobilization including competence. Local contractors have over the years had challenges related to inadequate working capital, mediocre project performance in light of adhering to the deadlines for completion, substandard quality of work as well as management of capital which has in many cases caused bankruptcy and even mid-term project abandonment. Asinza, Kanda, Muchelule and Mbithi (2016) wrote that inadequate funds have a relationship with other factors such as machinery, labour and material acquisition. Inadequate funds hinder the contractor from employing skilled labour and acquire materials of the right quality and quantity. If funds are unavailable, contractors might not procure good quality machinery
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