Key Determinants of Financial Decision Making: An Empirical Study

The determination of financial decision making in engineering projects is examined. It seeks to understand the role of risk management, cost estimation and stakeholder involvement in the decision making process. Primary data was procured from professionals involved in the financial decision making using a structured survey and a quantitative research method. The results indicate that risk management, cost estimating as well as engaging with stakeholders are crucial factors in financial decision making. Risk management helps decision makers prepare for possible adverse financial events and accurate cost estimates maintain supervision within budgetary constraints. Financial objectives and project requirements are made mutually inclusive through stakeholder participation in financial management. Therefore, this particular study helps fill in the existing knowledge on financial decision making as applied in project management because it presents a model that can be used in other engineering projects.