Effect of Project Cost Planning Practices on the Performance of Road Construction Projects in Meru County, Kenya
DOI:
https://doi.org/10.53819/81018102t5448Abstract
Road construction plays a critical role in economic growth, accessibility, and regional integration. However, despite its importance, road construction projects globally continue to face persistent challenges including cost overruns, project delays, and compromised quality standards. A key contributing factor to these challenges is ineffective project cost planning. In Kenya, road construction projects at the county level have particularly struggled with inconsistent budgeting, inaccurate cost estimation, and weak monitoring frameworks, resulting in stalled projects, public dissatisfaction, and wasted public resources. Meru County exemplifies these challenges, with a significant proportion of road construction projects experiencing cost escalations, delays, and substandard delivery outcomes that undermine rural transformation and economic development goals. The study examined the effect of project cost planning practices on the performance of road construction projects in Meru County, Kenya, with a focus on cost estimating, cost budgeting techniques, contingency cost planning, and cost monitoring. Project performance was assessed in terms of cost efficiency, timeliness, and client satisfaction. The study was grounded in four theoretical frameworks: the Theory of Constraints, Resource-Based View Theory, Transaction Cost Economics, and Systems Theory. A descriptive research design combining quantitative and qualitative methods was adopted. The target population comprised 572 stakeholders involved in ongoing and completed road construction projects in Meru County, from which a sample of 236 respondents was drawn using Yamane's formula and proportionate stratified sampling. Data were collected using semi-structured questionnaires and analyzed using IBM SPSS Statistics Version 28 through descriptive statistics, Pearson correlation, and multiple regression analysis. Qualitative data from open-ended questions were analyzed thematically to contextualize quantitative findings. The study established that all four cost planning practices positively and significantly influence road construction project performance, collectively explaining a substantial proportion of variance in performance outcomes. Contingency cost planning emerged as the strongest individual predictor, followed by cost estimating, cost budgeting techniques, and cost monitoring respectively. The study concludes that effective project cost planning significantly enhances road construction project performance by improving cost efficiency, ensuring timely completion, and increasing client satisfaction. It recommends institutionalizing evidence-based cost estimation, adopting structured budgeting systems, allocating adequate risk-based contingency provisions, strengthening integrated cost monitoring mechanisms, investing in stakeholder capacity building, and improving coordination among project governance structures in Meru County.
Keywords: Project cost planning practices, performance, road construction projects, Meru County, Kenya
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