Examining Effectiveness of Project Cost Control Mechanism in Enhancing Project Performance: A Case Study of the Lusaka City Road Rehabilitation Construction Projects

The main objective of the study is to examine effectiveness of project cost control mechanism in enhancing project performance. This is a case study of the Lusaka city road rehabilitation construction projects. Specific Objectives were; To establish types of budgetary cost control mechanisms employed in projects; To examine effectiveness of budgetary cost control mechanisms employed in projects; To evaluate relationship between project cost mechanisms and completion and to ascertain limitations in budgetary cost control mechanisms employed in projects. This is case study design. The study used primary data which was collected through questionnaire and interview to get perception on causes of time overrun. The data collected was analyzed using both descriptive l methods. Information obtained from interviews was used to reinforce the implication of the questionnaire result. For this study, the population consisted of all the key employees from road construction companies in Lusaka. This study covered the project execution department. The project execution department is responsible for the execution of all the projects in the province, that is, the creation of new assets and the maintenance of the existing ones. The participants in this study were therefore the various employees from the project execution department, as well as the departments that work hand in hand with the project execution department. The participants had diverse knowledge and experience in working with projects. The ANOVA table shows that the model is highly significant (F = 71.474, p < .000), indicating that the predictors collectively explain a substantial portion of the variance in effectiveness ratings. Among the predictors, budget deviation (%) has the strongest impact, with a significant negative coefficient (β = -.695, p < .000), indicating that higher budget deviations are associated with lower effectiveness ratings. Experience (years) has a positive but non-significant effect (β = .105, p = .157), suggesting a minor influence on effectiveness ratings. Project completion time (months) also shows a negative but non-significant effect (β = -.114, p = .375). Overall, these results suggest that minimizing budget deviations is crucial for enhancing the perceived effectiveness of budgetary control mechanisms, while the roles of experience and project completion time are less pronounced. In providing recommendation, the examined cost control strategies offer multifaceted approaches to managing project expenditures and preventing cost overruns in construction projects. The synergy between budget adherence, value engineering, EVM, and change management equips project managers with a comprehensive toolkit to navigate the complexities of construction project management, ensuring financial stability, project success, and stakeholder satisfaction. Effective cost control measures are imperative for the successful management of construction projects.