Factors Affecting the Performance of Construction Projects in Kenya: A Survey of Low-Rise Buildings in Nairobi Central Business District

Abstract

There is evidence that the performance of the construction in Kenya is poor as time and cost performance of projects are to the extent that the majority of the projects initiated are likely to escalate with time, with a magnitude of over 50% and over 50% of the projects likely to escalate in cost with a magnitude of over 20%. The main objective of this study was to investigate the factors affecting the performance of construction projects in Kenya.

The literature identifies numerous potential factors that could be affecting the performance of construction projects in Kenya. Although this significant body of knowledge exists, extant review of the literature suggested that there is a lack of rigorous theoretical and empirical examination to establish the major factors that are likely to affect the performance of construction projects. Given the very strategic importance of construction sector in Kenya, especially in respect to its contribution to the development of local government areas of the economy, its evaluation of the knowledge of the underlying factors affecting performance in the industry could be useful in developing a framework towards effective performance management and improvement in the sector.

Simple random sampling was used to sample the respondents. Questionnaires were used to collect data that were used to in the processing and analysis of findings. The data was analyzed by use of SPSS toolset and was presented in tables and charts. The result shows that the majority of projects executed had a higher percentage of cost overrun, were delayed in time and client were sometimes satisfied with the project. Higher percentage of respondents agreed that the cost of equipment and materials, cost of variation orders, cost of rework and escalation of material prices are the cost factors that affect the performance of construction project. Percentage of orders delivered late, delay in claim approval and delay of payment from client to contractor are time factors that affect the performance of construction project. Qualification and experience of staffs, quality of equipment and materials, conformance to specification are quality factors while leadership factors are staff training and leader's professional qualification are factors that affect the performance of construction projects. From these findings, performance of construction project is influenced by the cost of materials, time management, quality management and the leadership style adopted on site. Therefore, the contractors should take precautions on all matters that might affect the project performance.