Influence of Project Scope Changes and Availability of Funds during Implementation Phase on Performance of Construction Projects at Mpesa Foundation Academy, Kenya

Bernard Mugo, Dr. Alice Simiyu

Abstract: Governments and private organizations in different parts of the world handle projects that are of different complexity and magnitude. These projects have been characterized by delays, substandard deliverables and way beyond the budget as they are likely to be influenced by various risks during their lifecycle. Consequently, project(s) manager should embrace best practices in risk management during implementation phase in order to ameliorate performance of construction projects. Construction projects generally in the world, region and Kenya in particular run a high risk of being well over budget and considerably behind schedule, but how construction projects are influenced on by risk management during implementation phase is a research gap that this study sought to fill. The overall objective of this research was to assess influence of risk management during implementation phase on performance of construction projects in Kenya, a case of Mpesa Foundation Academy Project. The specific objectives of the study were to determine influence of project scope changes, selection of the project team, availability of project funds and project site selection on performance of construction projects. Literatures were reviewed as views and opinions of various authors were sought in the area under study. The relationship between dependent and independent variables was presented in a conceptual framework. Based on a case study design methodology, the study had a target population of 240 employees and stratified random sampling was used to draw a sample size of 72 respondents. Both quantative and qualitative data was collected using questionnaires, interview and document analysis guides. Data analysis was accomplished by generation of frequencies, percentages, tables and figures. To describe the significance of the relationships between variables under research, Chi-Square analysis was used. Based on the objectives, findings show that project scope changes are inevitable, inadequate project funds and long approval procedure of project budget negatively influences project performance : in order to achieve intended results and necessity for all construction projects to be adapted to the reality of environment in which they are being implemented in and funds availability ensures acquisition of resources to accomplish project activities: therefore application of risk management is essential. There was statistically significant evidence on the relationship between independent variables and performance of construction projects, implying that there is significant influence on performance by the independent variables. However, this research identified ineffective level of risk management practices since majority of the practices were informal and most of the construction team members had not studied risk management or project management. The study therefore recommends that management of the Foundation should put in place sound, comprehensively structured and formal risk management practices with involvement of all construction professionals and end users during project implementation phase of construction projects. In order for employees to deliver as required, acquisiton of necessary skills needs to be done through regular trainings by management.

Keywords: Project Management, Project Scope, Project Risk Management, Project Team, Project Funding, Project Performance.

Title: Influence of Project Scope Changes and Availability of Funds during Implementation Phase on Performance of Construction Projects at Mpesa Foundation Academy, Kenya

Author: Bernard Mugo, Dr. Alice Simiyu

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Research Publish Journals

Vol. 6, Issue 1, April 2018 – September 2018

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Influence of Project Scope Changes and Availability of Funds during Implementation Phase on Performance of Construction Projects at Mpesa Foundation Academy, Kenya by Bernard Mugo, Dr. Alice Simiyu