THE EFFECT OF PROJECT COST MANAGEMENT PRACTICES ON PERFORMANCE OF NON-GOVERNMENTAL ORGANIZATIONS FUNDED CONSTRUCTION PROJECTS IN KENYA

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Date

2025-10

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THE CATHOLIC UNIVERSITY OF EASTERN AFRICA

Abstract

The study investigated the success of NGO-funded projects in Kenya with a focus on construction projects. With the help of the theories, the study investigated the aspects of performance motivation, system coordination, resource utilization, and stakeholder accountability. Kenya with 110 tier I registered non-governmental organizations and a rich environment set the pace to evaluate donor-funded projects. The objectives of the study were to ascertain the effect of cost estimation practices on the performance of NGOs funded construction projects, to assess effect of cost control measures on the performance of NGO funded projects, to evaluate the effectiveness of project cost budgeting and to explore the effect of resource planning on practices on the performance of NGO funded construction projects in Kenya. The questionnaires were submitted to fifty project managers, project coordinators, finance managers and M&E officers who represented ten NGOs. A mixed method approach was used in conducting the interviews. The choice was made in terms of geographic representation, diversity within the sectors, donor-dependence, and availability of data. The results indicated that resource planning was the best predictor of the project performance followed by budgeting, cost estimation and cost control. The model accounted to 74 percent of the variability in performance. The main problems were donor dependency, low technical skills and manual financial tracking systems. The respondents suggested the use of ERP systems and the introduction of regular capacity building initiatives that could aid in increasing cost management practices. The analysis shows that cost management particularly in resource planning and budgeting is the key to enhancing performance of NGO projects, making them sustainable and building confidence of donors. The study further suggested further research on NGOs Comparative studies. The study recommended that NGOs must consider a holistic method of project performance improvement and future organizational sustainability through the strengthening of cost management practices.

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Keywords

Project cost management, project performance, non-governmental organizations (NGOs), construction projects, cost control.

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