Effect of Project Cost Management Practices on the Performance of Construction Projects in Kigali City, Rwanda: A Case Study of Nyarutarama Property Developers (NPD) Ltd
Karungi Milira Charity & Sam Bazimya
University of Kigali, Rwanda
Email: kmchario@gmail.com
Abstract: This study examined the effect of project cost management practices on the performance of construction projects in Kigali City, Rwanda, using Nyarutarama Property Developers (NPD) Ltd as a case. Rwandan construction projects frequently close over budget, behind schedule, or below the specified quality standard, and the study established how far cost benefits management, cost management strategies, and cost control practices explain variation in project performance. A mixed-method correlational design was used. From 335 project staff, a proportionate stratified sample of 182 was drawn using the Slovin formula. Data from a semi-structured questionnaire, key-informant interviews, and documentary review were analysed in SPSS version 25.0 using descriptive statistics, Pearson correlation, and multiple linear regression. All questionnaires were returned (100 per cent response rate) and Cronbach’s alpha exceeded 0.7. Every construct recorded a very high mean: cost benefits management 4.59, cost management strategies 4.51, cost control practices 4.41, and project performance 4.63. Each predictor correlated significantly with performance (r = 0.901, 0.790, and 0.860 respectively, p < 0.01). The regression model was significant (F = 267.307, p < 0.001) and explained 81.8 per cent of the variance in performance (R² = 0.818). Only cost benefits management was a positive significant predictor (β = 1.489, p < 0.001); cost management strategies was not significant, and the negative coefficient on cost control practices reflects multicollinearity rather than a real adverse effect. The study concludes that benefits realisation is the decisive lever and recommends that firms institutionalise cost-benefit realisation frameworks and strengthen estimation capability.
