Effect of Financial Resource Management Practices on Road Construction Project Performance in Rwanda: A Case Study of the Kicukiro-Kagarama-Muyange Road Project

Wivine Nyirarukundo and Kabanda Richard
University of Kigali
Email: nwivine20@gmail.com

Abstract: This study examined the effect of budgeting practices on the successful completion of road construction projects in Rwanda, with specific reference to the Kicukiro–Kagarama–Muyange Road Project. The study adopted a quantitative approach using an explanatory and cross-sectional research design. The target population comprised 90 respondents, and a census approach was used. Data were collected through structured questionnaires and documentary review and analyzed using SPSS. Descriptive statistics, Pearson correlation, and simple linear regression were used for data analysis. The findings revealed that budgeting practices were positively associated with successful completion of road construction projects. Pearson correlation established a strong positive relationship between budgeting practices and successful completion of road construction projects (r = 0.779, p = 0.000). Regression analysis showed that budgeting practices significantly predicted successful completion of road construction projects, explaining 60.7% of the variation in project performance (R² = 0.607, F = 135.828, p = 0.000). The regression coefficient further indicated a positive and significant effect of budgeting practices on successful project completion (β = 0.779, p = 0.000). The study concluded that effective budgeting practices, including comprehensive budget preparation, periodic budget review, management approval, contingency provisions, and clear communication of budget information, contribute to successful road construction project completion. The study recommends strengthening budget preparation, regular budget reviews, communication of budget information, and contingency planning to improve project performance.