Determinants of Completion of Government Funded Urban ...€¦ · 20 Determinants of Completion of...

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Determinants of Completion of Government Funded

Urban Construction Projects In Nairobi City County,

Kenya

Hawa Ibrahim HASSAN1 & Dr. Wario GUYO

2

1M.Sc Scholar Project Management, Jomo Kenyatta University of Agriculture and Technology,

Kenya 2Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

`

ABSTRACT

In Kenya like other countries construction industry is one of major industry contributing significantly

to the socio-economic development growth. The general objective of this study was to examine the

determinants influencing project completion of government funded projects in Nairobi, Kenya. The

specific objectives of this study were to examine; project cost; project procurement procedures;

project Kenya designs and specifications and project contractors‟ experience on project completion of

the government funded urban projects. The study adopted descriptive survey and study population and

sample of 68 was considered for this study. A census sampling technique method was used and data

collected through the use of questionnaires. On the other hand, secondary data was obtained from

published documents such as journals, periodicals, magazines and reports to supplement the primary

data. The study variables were regressed at 5% level of significance and 95% confidence level to

determine strength and direction of the their relationship. The analysis showed that project

procurement procedures had the strongest positive (Pearson correlation coefficient =.703) influence

on project completion of government funded projects. In addition, project design specifications,

project contractors experience and project cost are positively correlated to project completion of

government funded urban projects (Pearson correlation coefficient =.644, .493 and .532) The study

recommends that that training on project contractors experience is crucial for project completion of

government funded urban construction projects. There is need to enhance project design specification

and project procurement procedures through the tendering systems, and monitoring and evaluation to

reduce the project cost especially on the material cost, labour cost, equipment cost, control cost

overruns and deficiencies on cost estimates on implementation of projects to enhance performance of

the projects. Additionally, very little has been undertaken to explore the determinants studied on

completion of government urban funded projects thus the researcher call for further studies to be

undertaken on other factors and areas also in Kenya for generalization of the findings of this study.

Keywords: project procurement, urban funded projects, project contractors experience

INTRODUCTION

Construction has become an important player in the economy of many countries, especially developed

countries. As mentioned by Olawale (2010), this industry contributes to the GDP and employment

rate of many nations and for this reason it is considered vital for the economic development of any

nation. The role the construction industry plays in socio-economic development is significant. It

provides the basis upon which other sectors can grow by constructing the physical facilities required

for the production and distribution of goods and services. The construction industry has a significant

multiplier effect on the economy as a whole (Morris, 2008).

Delays and cost overruns in construction sector investments can raise the capital-output ratio in the

sector and elsewhere bringing down the efficacy of investments (Morris, 2008). Thus, successful

management of processes employed in acquisition of these assets is to a large extent, determined by

the amount of resources expended, time taken and quality when compared to similar projects.

International Journal of Innovative Development & Policy Studies 5(1):20-42, Jan.-Mar., 2017

© SEAHI PUBLICATIONS, 2017 www.seahipaj.org ISSN: 2354-2926

http://www.seahipaj.org/

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Infrastructure includes the capital required to produce economic services from utilities (like

electricity, telecommunication, and water) and transport (roads, bridges, seaport, and airports) and is

central to promoting economic activity (Chan, Scott & Chan, 2004). Individuals, private firms or

public entities are continually engaging in acquisition of physical assets in various forms such as,

residential, commercial buildings, hospital, schools/institutions, and development infrastructure like

water, roads, electricity and telecommunication. These assets represent major capital investment

motivated by market demands or perceived needs. To remain competitive in profit or non-profit

engagements, these entities focus on processes and procedures that offer value and competitive

advantage. Understanding the customer needs and appropriately deploying the available resources in

meeting customer expectations offer competitive edge over competitors in product and service

provision. Thus, efficient and effective resource management through appropriate use of tools and

techniques in asset acquisition is critical. Customers are demanding for better quality product through

efficient and timely deliveries at low price. It is therefore important, that time, cost, and quality of

constructed facilities are efficiently managed in the entire project life cycle for effective service or

product delivery.

Lin-lin et al., (2014) conducted a study on understanding of government funded projects in China's

infrastructure and construction projects. They established that the development of public projects

practices in China remains relatively slow despite the urgent need to promote this mechanism for

solving socio-economic and environmental disputes in PIC projects. Thus, a four-step strategic plan is

suggested to be established to overcome main barriers for the implementation of public participation

and promote its development in China.

Ektewan and Ogunlana (2006) did a study on public hearings in Thailand's infrastructure projects.

They found that the projects had moderate to low effectiveness primarily because the participation

and management performance aspects did not meet the participants' expectations. The relationships of

evaluation and satisfaction indices were examined. The hearing participants focus both on the process

and outcome of hearings

In Kenya like other countries construction industry is one of major industry contributing significantly

to the socio-economic development growth. Achieving project completion on time, within budget, at

specified quality standards, and most importantly without unprecedented cost escalations is major

criterion of success of project. Generally, a project is considered successful if the project is completed

within a stated cost or budget and time. Although the government of Kenya sets aside huge sums of

money to be spent in construction sector, the industry is facing a lot of challenges such as the

expenditure exceeding the budget, delay to complete the project in time, the building defects and

over-reliance on foreign workers (RoK,2012).

The construction infrastructure has been given the highest priority to ensure that the main projects

under the economic pillar are implemented, for example according to the Ministry of Roads Service

Charter (2008), there is a need for improvement of roads to a motorable condition because the road

transport (mode of transport) carries about 80% of all cargoes and passengers in the country. Due to

the importance of roads in socio-economic development of the country, the government has in the

recent past steadily increased budget allocation to the road sub-sector. However, road projects in

Kenya have been facing various challenges, which include delay in completion, cost overruns,

demolition of residential and businesses houses and abortive works (Maina, 2013).

Statement of the Problem

The construction industry in Kenya is plays a very major role in the country„s economic development

through its contribution to gross domestic product (GDP), gross domestic capital formation (GDCF),

creation of employment and production of capital facilities and assets required for production in other

sectors, as creating demand for their products (UNCHS, 2006). According to Ahmed et al., (2012), the

urban construction project is bound to fail due to slow rate in completion. This according to UNCHS,

(2006), can result to losses of over 19.82%. Construction sector is purely a project based work and in

management of project, the most critical thing is in time completion.

The delays in project completion are a common problem in the construction industry not only with an

immeasurable cost to society but also with debilitating effects on the contracting parties. The concept

of delay in the substantial completion of construction projects is a global phenomenon. For instance,

while evaluating the progress and reports of 28 highway projects constructed during the period 1996-

1999 in Jordan, Battaineh (2006) observed that the average ratio of actual completion time to the

Hassan & Guyo…..Int. J. Innovative Development & Policy Studies 5(1):20-42, 2016

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planned contract duration is 160.5% for road works. Seboru (2006), further citing other scholars also

states that the time frame for major road projects worldwide to reach construction start stage have

been observed to range from 10-30 years.Similarly, a study by United Nations Commission for Trade

and Development (UNCTAD), (2001) on African construction industry‟s turmoils and their

implications for New Partnership for Africa‟s Development (NEPAD) identified costly project delays

as a major problem and identifies poor project time, quality and cost performance as a major issue.

There is, therefore, a need to address the unpredictability of the successful completion of construction

projects in terms of delivery time, cost and to the standard of quality expected. While several studies

(Musa, 2009: Karimi, 2008;Tulakhaba 2008, Mwandali, 2006) have been done focusing on different

aspects of project completions and further appreciating the crisis in every project in terms of

completion, all empirical evidences are in short of the actual factors that influences the completion

itself. Hence this study seeks to investigate the determinants of completion of government funded

urban construction projects in Nairobi City County, Kenya.

Objectives of the Study

The general objective of the study was to establish the determinants influencing completion of

government funded urban construction projects in Nairobi City County, Kenya.

The specific objectives of the study were to;

i. Establish the influence of project cost on completion of government funded urban

construction projects in Nairobi City County, Kenya.

ii. Assess the influence of project design specifications on completion of government funded

urban construction projects in Nairobi City County, Kenya.

iii. Determine the influence of project procurement procedures on completion of government

funded urban construction projects in Nairobi City County, Kenya.

iv. Establish the project contractors experience on completion of government funded urban

construction projects in Nairobi City County, Kenya.

Research Questions

The study sought to answer the following questions;

i. How does project cost affect completion of government funded urban construction projects in

Nairobi City County, Kenya?

ii. Do project design specifications affect completion of government funded urban construction

projects in Nairobi City County, Kenya?

iii. To what extent does project procurement procedures affect completion of government funded

urban construction projects in Nairobi City County, Kenya?

iv. Dow does project contractors experience on completion of government funded urban

construction projects in Nairobi City County, Kenya?

LITERATURE REVIEW Theoretical Review

The Study will be guided by the theory of constraints, complexity theory, knowledge based theory and

resource based theory.

Knowledge-based Theory

Knowledge-based Theory of Project Management states that there is no explicit theory of project

management and as a result there is a general theory to underpin the discipline and is found in theories

of management, planning, control and projects (Koskela & Ballard, 2002). There is „embryonic‟

theory contained in literature, particularly his books (Turner, 2006). In response, it is noted that

explicit theory is lacking (Sauer & Reich, 2007). Knowledge-based project management is the

systematic and optimal arrangement and coordination of knowledge and knowledge configurations

over a period of time to achieve specific objectives within certain constraints. This includes but not

limited to include but not limited to project cost management, project risk management, and project

integration management (Onions, 2007). The above theory instigated the first research question; To

what extent does project cost affect completion of government funded urban construction projects in

Kenya?


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Complexity Theory

The second theory is the Complexity Theory. A prominent author in the field of complexity is Terry

Williams who shares the view of other scholars on complexity but extends it by one additional

dimension of cost estimates. In addition to the two components of complexity, vis-à-vis the number of

factors and the interdependency of these factors, he introduces the third factor which is uncertainty.

Since uncertainty adds to the complexity of a project, cost estimates therefore can be viewed as a

constituent dimension of project complexity that can be as a result of various factors (Williams,

2008The above theory instigated the second research question; Does project design specifications

affect completion of government funded urban construction projects in Kenya?

Resource Based Theory

Resource-based theory has been developed to understand how organizations achieve sustainable

competitive advantages (Barney, 1986). The theory focuses on the idea of costly-to-copy attributes of

the firm as sources of business returns and the means to achieve superior performance and

competitive advantage (Conner, 1991; Hamel & Prahalad, 1996). One of the objectives of the theory

is to help managers to appreciate why competences can be perceived as a firms‟ most valuable asset

and, at the same time, to understand how those assets can be used to improve business performance. A

resource-based view of the firm accepts that attributes related to past experiences, organizational

culture and competences are critical for the success of the firm (Hamel and Prahalad, 1996). The core

premise of the resource-based view is that organizational resources and capabilities can vary

significantly across firms, and that these differences can be stable (Barney, 1986). The above theory

instigated the third research question; How does project procurement procedures affect completion of

government funded urban construction projects in Kenya?

Theory of Constraints

Goldratt Eliyah (1984) started the Theory of Constraints (TOC), and based this management theory

that every system has at least one constraint limiting it from getting more of what it strives for. If this

were not true, then the system would produce infinite output. These constraints determine the output

of a system whether they are acknowledged or not. Therefore, it is in a manager's best interest to

identify and reduce the system constraints within the organization. The TOC is both descriptive and

prescriptive in nature; it not only describes the cause of system constraints, but also provides guidance

on how to resolve them. This theory refers to systems in organizations as chains. The above theory

instigated the fourth research question: To what extent does project contractor‟s experience affect

completion of government funded urban construction projects in Kenya?


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Conceptual Framework

In the study, the conceptual framework will look at the determinants influencing completion of

government funded urban construction projects in Kenya. The conceptual framework for the study is

shown in figure 1;

Independent Variables Dependent Variable

Figure 1: Conceptual Framework

Project Completion In Government

Funded Urban Construction

Projects

Finish in time

Within Budget

As per specifications

Sustainable

Project Cost

Investment cost

Material cost

Equipment cost

Labour cost

Project Design Specifications

Design information

Use of computer aided designs

Revision of designs

Timely issuance of designs

Quality assurance

Project Procurement Procedures

Bidding documents

Procurement drawings

Approval of procurement stages

Tendering systems

Procurement standardization

Project Contractors’ Experience

Knowledge & cognitive skills

Technical skills

Management skills

Training


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RESEARCH METHODOLOGY The study was descriptive in nature as it is deemed appropriate because it involved use of written

questionnaires administered to respondents. Yin (2003) recommends descriptive design as it allows

the researcher to describe, record, analyze and report conditions that exit or existed. Since this study

sought to establish the determinants influencing project completion in government funded urban

construction projects in Kenya, descriptive research design was the best design.

The target population comprised of the personnel implementing the government funded urban

construction projects in Nairobi area.

According to the records available in Nairobi county Council (2014), the major construction projects

in the last 10 years implemented in Nairobi area can be divided into roads, housing and water projects.

To get in depth analysis for the study, the research used the project team who comprised of client of

the project, work contractor, design consultant and project manager for each project as unit of

analysis. Since the unit of analysis in each project is 4, the total study population was 17 x 4 = 68. The

major construction projects in the last 10 years in the categories were as follows;

Sample and Sampling Technique

The sample of the study was 17 x 4 = 68. According to NCC (2014), there are 17 projects that are

being implemented. In every project, there will be 4 members of project team that is client of the

project, work contractor, design consultant and project manager. The sample size is manageable and

small enough for data collection, therefore study will adopt census sampling technique. It is also

supported by Neuman (2006) who argue that taking a census of the population is applicable if it

provides enough information and sufficient for the study. Census sampling technique is procedure of

gathering information about the entire population if it is small and reasonable and manageable

(Babbie, 2009).

Data collection Method

The study will collect both primary and secondary data during the study. Primary data will be

collected using questionnaires to be given to the project teams (clients, contactors, project managers

and design consultants).These respondents will be specifically targeted for their ability to provide

pertinent information to the study. The questionnaire will contain both structured and unstructured

questions. This is because of their simplicity in the administration and scoring of items as well as data

analysis (Babbie, 2009). From the data collected, out of the 68 questionnaires administered, 41

questionnaires were fully completed and returned making a response percent of 60.29%. Secondary data was be gathered from existing credible and recognized source. The secondary data

will comprise of materials that are desirable, current, accurate, sufficient and relevant and will be

collected from library text books, internet and magazines and personnel file in the projects.

Pilot Study

A pilot study was undertaken on at least 7 respondents to test the reliability and validity of the

questionnaire. Reliability is the extents to which a research instrument yields findings that are

consistent each time it is administered to same subjects (Mugenda and Mugenda, 2003).The

measurement of reliability provides consistency in the measurement variables(Kumar,2000)). Internal

consistency reliability is the most commonly used psychometric measure assessing survey instruments

and scales (Zhang, 2000 The Cronbach‟s alpha results ranged between 0. 709 and 0.778 and

therefore the construct were acceptable.

Data Analysis and Presentation

Quantitative data will be analyzed by employing descriptive statistics and inferential analysis using

statistical package for social science (SPSS) version 22. This technique gives simple summaries about

the sample data and present quantitative descriptions in a manageable form, (Orodho, 2003). Together

with simple graphics analysis, descriptive statistics form the basis of virtually every quantitative

analysis to data, (Kothari, 2005).

The researcher further adopted multiple regression model at 5% level of significance to establish the

strength and direction of the relationship between the independent variables (project cost, project

design specifications, project procurement procedures and project contractors‟ experience) and the

dependent variable (Completion of government funded urban construction projects). The project

completion of government funded urban construction projects was regressed against four variables


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namely project cost, project design specifications, project procurement procedures and project

contractors‟ experience. The equation was expressed as follows:

Y = β0+ β1X1+ β2X2+ β3X3+ β4X4 + ε,

Where;

Y= Completion of government funded urban construction projects, β0= constant (coefficient of

intercept),

X1= Project cost; X2= Project design specifications; X3= Project procurement procedures;

X4= Project contractors‟ experience; ε = error term; β1…β4= regression coefficient of four variables.

The findings were also presented using tables, charts and graphs for further analysis and to facilitate

comparison. This generated quantitative reports through tabulations, percentages, and measure of

central tendency. Descriptive statistics such as measures of central tendency and dispersion along with

percentages were used to organize and summarize numerical data whose results are presented in

tables, pie charts, column and bar graphs for easy interpretation of the findings.

FINDINGS AND DISCUSSIONS Table 1: Pearson Correlations on determinants of project completion in government funded urban

construction projects in Kenya

Dimensions Project

contractors

experience

Project design

specifications

Project procurement

procedure

Project

cost

Project

contractors

experience

1 .722** .333** .453**

Project design

specifications

- 1 .676** .564**

Project

procurement

procedure

- - 1 .654**

Project cost - - - 1

* Correlation is significant at the 0.05 level (2-tailed)

Project Contractors Experience

Project Contractors Experience Measure On Project Success

The research sought out to establish whether the project contractors experience influence project

success of the government funded urban construction projects in Kenya. The findings as indicated in

Figure 2, a simple majority (58.54%) of the respondents agreed that project contractors experience

influence project completion in government funded urban construction projects whereas 41.46%

posited that were of contrary opinion. This implies that project contractors experience is an important

factor which influence project completion in government funded urban construction project. The

findings of the study are in agreement with literature review by Manchweka (2006) who observed that

project contractors experience plays an important role on completion of urban projects in the

developing countries. Thus lack of contractors experience affected completion of projects in Nairobi

County.

Figure 2: Project Contractors Experience Measure A Project Success

Contractors Knowledge and Cognitive Skills On Project Completion

The study sought out to establish whether the project contractors skills could enhance completion of

government funded urban construction projects in the study area. The findings as indicated in Figure


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3, a simple majority (63.41%) of the respondents agreed that project contractors experience influence

project completion in government funded urban construction projects whereas 36.58% posited that

were of contrary opinion. This reveals that project contractor‟s skill is an important factor which

influence project completion in government funded urban construction project in Nairobi county.

Lack of contractors knowledge and cognitive skills in many projects established within the county

hinder the decision making and it is of crucial importance that the project organization and project

management are meticulously set up and operated in ways that minimize the risk of cost estimates.

The findings of the study are in line with Flyvbjerg et al, (2008) who observed that many projects fail

to be completed in time due lack of enough skills from the contractors. Thus lack of contractors‟

skills prolonged completion of urban construction projects in Nairobi County.

Figure 3: Contractors Knowledge and Cognitive Skills On Project Completion

Contractors Technical Skills On Project Completion

The study sought out to find out whether the project contractor‟s technical skills influence project

completion of the government funded urban construction projects in Kenya. The findings as indicated

in Figure 3 a simple majority (73.17%) of the respondents agreed that project contractors technical

skills influence project completion in government funded urban construction projects whereas 26.83%

of the respondents were of contrary opinion. It can be deduced that project contractor‟s technical

skills enhance project completion in government funded urban construction projects in the study area.

The contractors responsible for the projects do not have adequate technical skills thus affecting

project completion. The findings of the study corroborates with literature review by Chan &

Kumararswamy (2007) who observed that may government funded projects fail to be completed in

time and within budget as a result of lack of adequate technical skills in the creation of long

implementation phases.

Figure 4: Contractors Technical Skills On Project Completion Continuous Training On Projection Completion

The study sought out to establish whether the project contractors received continuous training as they

implemented various project in the study area. The study results as indicated in Figure 5, majority

(78.08%) of the respondents disagreed that they were receiving continuous training as they


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implemented the projects whereas 21.92% of the respondents were of contrary opinion. It can be

deduced from the study findings that project contractors did not receive continuous training thus it

hindered project completion of government funded projects in the study area. Continuous training

especially on project management and new technology was not available hindering effective

completion of government funded urban construction projects. The findings of the study are in

agreement with the findings of Karimi (2008) who observed that continuous training especially on

adequate planning at the early stages of a project is crucial for minimizing delays and cost overruns.

Variations in designs and contract documents usually lead to a change in contract price or contract

schedule thus affecting project completion.

Figure 5: Contractors Technical Skills On Project Completion

Cost Escalations On Project Completion

The research sought out to establish whether due to lack of the project contractor‟s experience led to

project cost escalations therefore hindering project completion of government funded urban

constructions projects in the study area. The findings as indicated in Figure 6, a simple majority

(53.66%) of the respondents agreed that lack of the project contractor‟s experience led to project cost

escalations therefore hindering project completion of government funded urban constructions projects

in the study area whereas 46.34% of the respondents were of contrary opinion. This implies that

project contractors experience on project costing influenced completion of government funded

projects in the study area. Cost escalations resulted from inadequate experience in many of the

government funded projects. He findings of the study are in tandem with literature review by Muller

& Jugdev (2012) who states that cost escalations are common in projects when contractors do not

enough experience in the construction process.

Figure 6: Project Cost Escalations On Project Completion Project Design Specifications

Project Design On Project Completion

The research sought out to establish whether project design influenced project completion of

government funded urban constructions projects in the study area. The findings as indicated in Table

2, majority (78.05%) of the respondents agreed Project design influenced project completion of

government funded urban constructions projects in the study area whereas 21.95% of the respondents

were of contrary opinion. This implies that project design has an effect on the completion of

government funded projects in the study area. Project designs adversely impact on project completion


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of the established projects in the study. The findings of the study are in agreement with literature

review by Aiyetan et al (2008) who observed that project completion is dependent on the performance

of the design team. The designers are the key players in the construction industry whose services are

needed from the conception stage of the project to its completion. The performance of the designers is

therefore important because any decision made at the inception of the project will affect project

completion.

Table 2: Project Design on Project Completion

Opinion Frequency Percentage

Yes 32 78.05

No 9 21.95

Total 41 100

Use Of Computer Aided Sign On Project Completion

The research sought out to establish whether use of computer aided sign influenced project

completion of government funded urban constructions projects in the study area. The findings as

indicated in Table 3, a simple majority (73.17%) of the respondents agreed use of computer aided sign

influenced project completion of government funded urban constructions projects in the study area

whereas 26.83% of the respondents were of contrary opinion. This can be deduced that use of

computer aided sign influenced project completion of government funded urban constructions projects

in the study area. Lack of technology especially on the usage of computer aided design adversely

impact on project completion of the established projects in the study. The findings of the study are in

agreement with literature review by Aiyetan et al (2008) who observed that project completion is

dependent on the usage of computer aided design to a great extent. The designers are the key players

in the construction industry whose services are needed from the conception stage of the project to its

completion.

Table 3: Use of computer aided sign on project completion


Used 30 73.17

Not used 11 26.83

Total 41 100

Revision Of Designs On Project Completion

The research sought out to establish whether there revision of designs influenced completion of

ongoing projects in the study area. The study results as indicated in Figure 7, a simple majority

(53.66%) of the respondents agreed there was a common tendency of revising designs of the ongoing

projects and affected their completion whereas 46.34% of the respondents were of contrary opinion.

This can be deduced that revision of the designs of the ongoing projects was common thus hindering

completion of government funded urban constructions projects in the study area. The study results are

in agreement with literature review by Karimi (2008) who states that adequate planning at the early

stages of a project is crucial for minimizing delays and cost overruns.Variations in designs and

contract documents usually lead to a change in contract price or contract schedule. Typically, change

orders and variations present problems to all parties involved in the construction process. Usually,

these design changes require additional time and cost inputs which ultimately overruns hindering

project completion.


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Figure 6: Revision Of Designs On Project Completion

Timely issuance of designs on project completion

The research sought out to establish whether timely issuance of designs influenced completion of

government construction projects in the study area. The findings as indicated in Figure 7, a majority

(66.66%) of the respondents stated that there was delay of issuance of project designs thus affecting

their completion whereas 33.34% of the respondents were of contrary opinion. This implies that

project designs were delayed during the commencement of the projects thus affecting their completion

in the study area. There is a common tendency in many projects established to have a delay on

issuance of the project designs leading to untimely project completion. The study results are in

tandem with findings of Muller & Jugdev (2012) who observed that untimely issuance of designs that

are imposed when construction is underway, usually lead to reworks, overruns and delays in project

completion Rework and demolition are potential effects of changes in construction, depending on the

timing of the occurrence of the changes can ultimately lead to overruns.

Figure 7: Timely Issuance Of Designs On Project Completion Availability Of Expertise On Project Completion

The research sought out to establish availability of project designers‟ influenced completion of the

projects in the study area. The findings as indicated in Figure 8, a simple majority (56%) of the

respondents stated that there was a shortage of project designers and affected completion of the

projects in the study area whereas 44% of the respondents were of contrary opinion. This implies that

lack of availability of project designers was an impediment on completion of the projects in the study

area. The study findings conforms with literature review by Aridity et al (2002) who observed that

availability of expertise on project design specifications is a major problem in developing countries.

Some are not only hard to predict but also difficult to manage. The inherent contractors‟ expertise

during preparation, planning, authorization and evaluation procedures for large infrastructure projects

creates obstacles to the implementation of such projects (CEU, 2008).


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Figure 8: Availability Of Expertise On Project Completion

Design Changes On Project Completion

The research sought out to establish whether there was changes on design in the course of

implementation of the projects and if it affected completion of the projects. According to the study

results as illustrated in Table 4, a simple majority (70.73%) of the respondents stated that there a

common occurrence of changes being made on the agreed designs in the course of implementation of

the projects and it affected completion of the projects in the study area whereas 29.27% of the

respondents were of contrary opinion. This implies that design changes was an impediment on

completion of the projects in the study area. The study results are in agreement with literature review

by Karimi (2008) who states that adequate planning at the early stages of a project is crucial for

minimizing delays and cost overruns. Variations in designs and contract documents usually lead to a

change in contract price or contract schedule. Typically, change orders and variations present

problems to all parties involved in the construction process. Usually, these design changes require

additional time and cost an input which ultimately overruns hindering project completion.

Table 4: Design Changes On Project Completion


Yes 29 70.73

No 12 29.27

Total 41 100

Project Procurement Procedures

Project Procurement Procedures On Project Completion

The research sought out to establish whether project procurement procedures influenced project

completion of government funded urban constructions projects in the study area. The findings as

indicated in Figure 9, a simple majority (80.49%) of the respondents agreed project procurement

pprocedures influenced project completion of government funded urban constructions projects in the

study area whereas 19.51% of the respondents were of contrary opinion. This implies that pproject

pprocurements pprocedures has influence on the completion of government funded projects in the

study area. The bureaucracies in the procurement process leads to delay of projects implementation in

the study area. The findings are in line with findings of to Kagiri &Wainaina (2007) who observed

that procurement procedures for many projects delay completion of projects

Figure 9: Project Procurement Procedures On Project Completion

Procurement Guidelines and Standardization On Project Completion

The research sought out to establish whether procurement guidelines and standardization influenced

project completion of government funded urban constructions projects in the study area. The findings

as indicated in Figure 10, a simple majority (73.17%) of the respondents agreed procurement


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guidelines and standardization affected project completion of government funded urban constructions

projects in the study area whereas 26.83% of the respondents were of contrary opinion. This can be

deduced that procurement guidelines and standardization play an important role on completion of

government funded urban constructions projects in the study area. The findings of the study conforms

with Kagiri & Wainaina (2007) who states that financiers require the recipient to follow specific rules

(i.e., procurement guidelines) for identifying the contractor who constructs the road and to set up

specific financial management systems to oversee the use of funds. These specific rules and

guidelines are meant to ensure that resources are used efficiently and economically, but at the same

time can lead to fragmentation and complexity

Figure 10: Procurement Guidelines and Standardization On Project Completion

Procurement Delays On Project Completion

The research sought out to establish whether procurement delays affected completion of ongoing

projects in the study area. The findings as indicated in Table 5, simple majority (53.66%) of the

respondents agreed there were common procurement delays and it affected project completion

whereas 46.34% of the respondents were of contrary opinion. This implies that projects were not

completed as expected due recurring procurement delays. The study findings are in agreement with

literature review by Rundquist (2008) who states that procurement as the acquisition of goods,

services and/or infrastructure at the best possible total cost of ownership in the right quantity and

quality, at the right time, in the right place for the direct benefit or use of governments, corporations

or individuals, generally via a contract greatly influence project completion. It is evident from the

discussions above that procurement is an important aspect of the project implementation and has

many parties involved namely development partners, government, implementing agencies and

contractors. Procurement delays can therefore arise on the projects from various parties involved. The

contractors are responsible for the procurement of materials and equipment in all the contracts. For

multi-contract projects, where the engineer had dual role of designer and supervisor on the civil

contracts, many factors interplay leading to delays. On some contracts, there are delays by contractors

in releasing of procurement drawings, delays in provision of design information from supply

contractors to the engineer‟s designers to prepare procurement drawings. Delays are also experienced

in the tendering system, preparation of the bidding documents, and approval by the development

partners on the documentation submitted as it has to meet the set standards. The several approval

stages in procurement can also lead to delays especially in high-value contracts as they have to go the

highest levels for approval.

Table 5: Procurement Delays on Project Completion


Yes 22 53.66

No 19 46.34

Total 41 100

Tendering Systems On Project Completion

The research sought out to establish effectiveness of tendering systems affected completion of the

projects in the study area. The findings as indicated in Table 5, majority (82.93%) of the respondents

stated that there was ineffectiveness of tendering systems thus affecting project completion whereas


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17.07% of the respondents were of contrary opinion. This implies that ineffectiveness of tendering

systems is an impediment on completion of the projects. It is evident from the discussions above that

tendering systems are important aspect of the project implementation and has many parties involved

namely development partners, government, implementing agencies and contractors thus affecting

project completion in the study area. The study conforms with findings of Rundquist (2008) who

observed that the tendering systems delays are also experienced in the preparation of the bidding

documents, approval by the development partners on the documentation submitted as it has to meet

the set standards. The several approval stages in procurement can also lead to delays especially in

high-value contracts as they have to go the highest levels for approval thus affecting project

completion.

Table 6: Tendering Systems On Project Completion


Yes 7 17.07

No 34 82.93

Total 41 100

Procurement Stages On Project Completion

The research sought out to whether procurement stages influenced completion of the projects in the

study area. The findings as indicated in Figure 11, majority (87.81%) of the respondents stated that

there was bureaucracy on every procurement stage and affected completion of the projects in time

whereas 12.19% of the respondents were of contrary opinion. This reveals that bureaucracy on

procurement stages had effects on completion of the projects in the study area. The study findings are

in agreement with literature review by Rundquist (2008) who states that procurement stages as the

acquisition of goods, services and/or infrastructure at the best possible total cost of ownership in the

right quantity and quality, at the right time, in the right place for the direct benefit or use of

governments, corporations or individuals, generally via a contract greatly influence project

completion.

Figure 11: Procurement Stages On Project Completion

Procurement Policy On Project Completion

The research sought out to establish whether procurement policy influenced completion of the

projects. According to the study results as illustrated in Figure 12, a simple majority (68.29%) of the

respondents stated that procurement policy facilitated completion of government urban construction

projects in the study area whereas 31.71% of the respondents were of contrary opinion. This implies

that government procurement policy plays an important role towards completion of the projects in the

study area. The study findings are in agreement with literature review by Rundquist (2008) who states

that procurement policy on the acquisition of goods, services and/or infrastructure at the best possible

total cost of ownership in the right quantity and quality, at the right time, in the right place for the

direct benefit or use of governments, corporations or individuals, generally via a contract greatly

influence project completion. For multi-contract projects, where the engineer had dual role of designer

and supervisor on the civil contracts, many factors interplay leading to delays. On some contracts,

there are delays by contractors in releasing of procurement drawings, delays in provision of design

information from supply contractors to the engineer‟s designers to prepare procurement drawings

which require a proper procurement policy.


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Figure 12: Procurement Policy On Project Completion

Procurement Feedback System and Reporting On Project Completion

The research sought out to establish whether effective procurement system and reporting influenced

completion of the projects. According to the study results as illustrated in Figure 4.17, a simple

majority (71.29%) of the respondents stated that there were ineffective Procurement feedback system

and reporting which hindered completion of government urban construction projects in the study area

whereas 28.71% of the respondents were of contrary opinion. This implies that ineffective

procurement feedback system and reporting did affect completion of urban government funded

projects in the study area. The study findings are in agreement with literature review by Rundquist

(2008) who states that procurement feedback systems are necessary for procurement purposes.

Figure 13: Procurement Feedback System and Reporting On Project Completion

Project Cost

Project Cost On Project Completion

The research sought out to establish whether project cost influenced project completion of

government funded urban constructions projects in the study area. The findings as indicated in Figure

14, a simple majority (92.68%) of the respondents agreed project cost influenced project completion

of government funded urban constructions projects in the study area whereas 7.32% of the

respondents were of contrary opinion. This implies that project cost has an effect on the completion of

government funded projects in the study area. The study established that many projects had issues

with cost estimation. The study findings corroborates with the Kuen, Zailani and Fernando (2009)

who stated that cost is one of the primary measures of a project‟s success. This is true, especially for

public projects in developing countries like Kenya, because public construction projects in these

countries are executed with lack of proper cost projections on most government funded projects.


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.

Figure 14: Project Cost On Project Completion

Material Cost On Project Completion

The research sought out to establish whether material cost influenced project completion of

government funded urban constructions projects in the study area. The findings as indicated in Table

7, a simple majority (73.17%) of the respondents agreed material cost influenced project completion

of government funded urban constructions projects in the study area whereas 26.83% of the

respondents were of contrary opinion. This can be deduced that material cost played a major role on

project completion of government funded urban constructions projects in the study area. The study

findings are in line with a study made in Turkey by Arditi, et al, (2005), the important sources for cost

overruns were found to be inflationary pressures, increases in material prices difficulties in obtaining

construction materials, construction delays, deficiencies in material cost estimates prepared by public

agencies and unexpected sub soil conditions were the most important sources for cost overruns that

affected successful completion of projects.

Table 7: Material Cost On Project Completion


Yes 30 73.17

No 11 26.83

Total 41 100

Labour Cost On Project Completion

The research sought out to establish whether labour cost influenced completion of projects in the

study area. The findings as indicated in Figure 15, simple majority (51.21%) of the respondents

agreed there was a common tendency of revising designs of the ongoing projects and affected their

completion whereas 48.79% of the respondents were of contrary opinion. This can be deduced that

labour cost can hinder completion of government funded urban constructions projects in the study

area. The study findings are in line with a study made in Turkey by Arditi, et al, (2005), the important

sources for cost overruns were found to be inflationary pressures, increases in workmen wages

difficulties in obtaining construction expert wages, deficiencies in labour cost estimates prepared by

public agencies and unexpected sub soil conditions were the most important sources for cost overruns

that affected successful completion of projects.


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Figure 15: Labour Cost On Project Completion

Equipment Cost On Project Completion

The research sought out to establish whether equipment cost affect completion of the projects in the

study area. The findings as indicated in Table 16, majority (58.54%) of the respondents stated that

equipment cost affect completion thus affecting their completion whereas 41.46% of the respondents

were of contrary opinion. This implies that equipment costs were delayed during the commencement

of the projects thus affecting their completion in the study area. The study findings are in line with a

study by Mono, (2013) who observed that the important sources for cost overruns were found to be

inflationary pressures, increases in material prices difficulties in obtaining construction materials,

construction delays, deficiencies in material and equipment cost estimates prepared by public agencies

were the most important sources for cost overruns that affected successful completion of projects.

Table 8: Equipment Cost On Project Completion


Yes 24 58.54

No 17 41.46

Total 41 100

Project Completion

Project Completion In Time

The research sought out to establish whether the government funded urban constructions projects

were completed in the study area. The findings as indicated in Figure 16, a simple majority (92.68%)

of the respondents stated completion of government funded urban constructions projects in the study

area was not on time whereas 7.32% of the respondents were of contrary opinion. This implies that

most of government funded projects in the study area were not completed in time

Figure 16: Project Completion In Time

Project Completion As Per Specification


were completed as per the specification in the study area. The findings as indicated in Table 9,

majority (80.49%) of the respondents stated completion of government funded urban constructions

projects in the study area were not completed as per the specification whereas 19.51% of the


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respondents were of contrary opinion. This implies that most of government funded projects in the

study area were completed as per the specification.

Table 9: Project Completion In Time


Yes 8 19.51

No 33 80.49

Total 41 100

Project Completion Within The Budget


were completed as per the specified budget in the study area. The findings as indicated in Figure 17,

majority (95.12%) of the respondents stated completion of government funded urban constructions

projects in the study area were not completed within the specified budget whereas 4.88% of the

respondents were of contrary opinion. This implies that most of government funded projects in the

study area were not completed within the allocated budget.

Figure 17: Project Completion Within The Budget

Multiple Regression Analysis

According to Green & Salkind (2003) regression analysis is a statistics process of estimating the

relationship between variables. Regression analysis helps in generating equation that describes the

statistics relationship between one or more predictor variables and the response variable. Since there

are four variables against one dependent variable, multiple regression analysis was used to establish

their relationship at 5% level of significance. Further, the multiple regression analysis is

mathematically expressed as shown below: a multivariate regression model was applied to determine

the relative importance of each of the four variables with respect to the project completion of

government urban funded projects .The results are shown in Table 9.

Table 9: Model summary

Model R R2 Adjusted R

2 Std. Error of

the Estimate

1 .811a .642 .618 .876

a. Predictors: (Constant), project contractors experience, project cost, project design specifications and project

procurement procedures

R is the correlation coefficient which shows the relationship between the study variables, from the

findings shown in the Table 9 is notable that there extists strong positive relationship between the

study variables as shown by 0.811. The coefficient of determination (R2 ) explains the extent to which

changes in the dependent variable can be explained by the change in the independent variables or the

percentage of variation in the dependent variable (project completion of government urban funded

projects) that is explained by all four independent variables (project contractors experience, project cost,

project design specifications and project procurement procedures).According to the four independent

variables studied, they explain only 64.20% of the project completion of government urban funded

projects. This implies that these variables are very significant therefore need to be considered in any

effort to enhance project completion of government urban funded projects in Kenya. The study

therefore identifies variables as critical determinants of project completion of government urban funded


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projects. Further, it means that other factors not studied in this research contribute 35.80% of project

completion of government urban funded projects. Therefore, a further study should be conducted to

investigate the other factors that contribute 35.80% which influence project completion of government

urban funded projects.

Analysis of Variance (ANOVA)

Table 10: Analysis of Variancea

Model Sum of

Squares

Df Mean Square F Sig.

1 Regression 86.880 4 21.720 32.2494 .001b

Residual 24.247 36 .6735

Total 109.901 40

a. Dependent Variable: Project completion of government urban funded projects

b. Predictors: (Constant), project contractors experience, project cost, project design

specifications and project procurement procedures

c. Critical value = 17.673

From the Table 10, the study established the regression model had a significance of 0.001 which is an

indication that the data was ideal for making a conclusion on the population parameters as the value of

significance (p-value) was less than 5%. The F-calculated value was greater than the critical value

(32.2494 > 17.673) an indication that project contractors experience, project cost, project design

specifications and project procurement procedures and all enhance Project completion of government

urban funded projects and this shows that the overall model was significant

Regression Coefficients

Table 11: Regression Coefficientsa

Model Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

B Std.

Error

Beta

1 (Constant) 65.008 2.065 2.309 .001

Project contractors experience .644 .885 .502 2.455 .013

Project design specifications .493 .556 .555 3.266 .037

Project procurement

procedures

.703 .487 .405 2.011 .011

Project cost .532 .356 .609 2.069 .019

a. Dependent Variable: Project completion of government urban funded projects

The general form of the equation was to predict project completion of government urban funded

projects from project contractors experience, project cost, project design specifications and project

procurement procedures is: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε Where Y= Project completion

of government urban funded projects; β0 = Constant Term; β1, β2, and β3 = Beta coefficients; X1=

project contractors experience; X2= project design specifications ; X3= project procurement

procedures; X4 = project cost and ε = Error term. The model equation would be; Y=65.008 + 0.644X1

+ 0.493X2 + 0.703X3 + 0.532X4. The Project completion of government urban funded projects =

65.008 + (0.644 x project contractors experience) + (0.493 x project design specifications) + (0.703 x

project procurement procedures) + (0.532 x project cost). From above regression equation; the study

found out that when all independent variables (project contractors‟ experience, project cost, project

design specification and project procurement procedures) are kept constant at zero the Project

completion of government urban funded projects will be at 65.008. At one unit change in project

contractors experience will lead to 0.644 increases in Project completion of government urban funded

projects. Also a one unit change in project design specifications will lead to 0.493 increases in the

Project completion of government urban funded projects. Further, a one unit change in project

procurement procedures will lead to 0.703 increases in the new Project completion of government


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urban funded projects and one unit change in project cost will lead to 0.532 increases in Project

completion of government urban funded projects.

This concludes that knowledge application contributes more to Project completion of government

urban funded projects. To test for the statistical significance of each of the independent variables, it

was necessary to test at 5% level of significance and 95% level of confidence of the p-values and

from the Table 4.10 the project contractors experience had a 0.013; project procurement procedures

showed a 0.011 level of significance, project design specification showed a 0.037 level of

significance and project cost had a 0.019 level of significance. Therefore, the most significant factor

was project procurement procedures.

CONCLUSIONS

The study established that project cost affects completion of the government funded urban

construction projects. The study revealed that inadequate funds on investment materials, equipment

and labour adversely affected completion of the projects. Further, the study revealed that the variable

statistically, moderately, positively and significantly correlated to project completion of the

government funded projects in the county

Additionally, the study found out project designs such as inadequate design information, use of

computer aided designs, revision of designs, timely issuance of designs and lack of quality assurance

in designs to some extent affect completion of the projects. The study revealed that the variable

statistically, strongly and significantly correlated to project completion of the government funded

projects in the county

Further, the study revealed that project procurement procedures influenced completion of the urban

construction projects. The lack of bidding documents, procurement drawings, approval of

procurement stages, tendering systems and procurement standardization affected completion of the

projects. The Pearson correlation coefficient statistically, strongly and significantly correlated to

project completion of the government funded projects in the county

Finally, project contractors experience in terms of technical skills, management skills due to lack of

enough trainings was found out to be a major impediment towards completion of the projects. The

Pearson correlation coefficient statistically, strongly and significantly correlated to project completion

of the government funded projects in the county

RECOMMENDATIONS

The study recommends that that project contractors experience is crucial for project completion of

government funded urban construction projects. There is need to enhance the contractor‟s knowledge

and a cognitive skill through the contractor‟s continuous training. The cost escalations due to

contractors experience and bankruptcy of the contractor during implementation period should be

established. The contractors experience during preparation, planning, authorization and evaluation

procedures influenced completion of the government funded urban projects should also be established

to avoid delays of the projects.

The project design specification should be enhanced to improve project completion in government

funded urban construction projects. The timing of issuance of designs, availability of expertise on

designing, the design efficiencies reduce to redesign and rework or poor quality of products thus

improving completion of the government funded urban projects in Nairobi county

The project procurement procedures through the tendering systems, approval of procurement stages,

the government procurement policy on implementation of projects and monitoring of the procurement

system and reporting should be monitored and evaluated to reduce the project cost especially on the

material cost, labour cost, equipment cost, control cost overruns and deficiencies on cost estimates,

financial management of project funds and monitoring and evaluation of funds, government capital

investment cost on implementation of projects to enhance performance of the projects.

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