MATERIAL MANAGEMENT AND PROJECT PERFORMANCE OF CONSTRUCTION COMPANIES IN NAIROBI CITY COUNTY, KENYA
MATERIAL MANAGEMENT AND PROJECT PERFORMANCE OF CONSTRUCTION COMPANIES IN NAIROBI CITY COUNTY, KENYA
Josephine N. Sila - School of Business, Kenyatta University, Kenya
Dr. Joyce Gakobo - School of Business, Kenyatta University, Kenya
ABSTRACT
Project failure is largely attributed to the poor material management that results into project bottlenecks limiting project success. The failure of project is attributed to poor material management techniques that can result into poor quality materials, damage to material, poor planning, late deliveries and high costs. Therefore, to prevent project failure proper material management is vital. Research shows that construction materials and equipment constitute more than 70 percent of the total construction project costs. Therefore, in a typical construction project the manager is expected to emphasize on the importance of managing the limited material resources so that the project is not affected in the long run. It has been established through research that poor material management contributes to project failure and abandonment of the projects when the budget is exceeded. The objectives of the study were to establish the effect of materials management on construction projects. The aim was to improve productivity of the project, enhance cost efficiency and also to ensure the project is completed in a timely manner. The study is anchored on agency theory, resource dependence theory, network theory and relational exchange theory both emphasizing the importance of effective management of resources to prevent project failure. The study also aimed at identification of the factors that influence the completion of projects with focus on factors such as the planning, storage, transportation, sourcing and purchasing of material and how they affected project completion. The study adopted quantitative research designing focusing on 40 participants obtained from various construction companies in Nairobi City County. Random sampling method was used in the selection of the participants from the Nairobi City County Construction Companies Database. Regression analysis between the four variables; planning, storage, transport and purchasing was carried out using SPSS software. The study concluded that inadequate management of material has resulted to poor level of material management attributes in construction companies. The problem was found to be more severe on smaller companies. The study recommends that a systematic and integrated approach is needed to manage materials and minimize the costs and effects associated with in adequate materials management.
