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Risk and contract management practices, and construction projects performance: A test of moderation by managerial
Waithaka Huria Karugu1, Kirema Nkanata Mburugu1, Duncan Mugambi Njeru1
1Department of Business Studies, University of Embu, Embu, Kenya.
Plos One
|July 7, 2026
Summary
Effective risk and contract management significantly boost construction project performance in Kenya. Project manager skills, however, showed no significant moderating effect on these crucial management practices.
Area of Science:
- Construction Management
- Project Performance Analysis
- Socioeconomic Development in Kenya
Background:
- Kenya's construction sector is vital for socioeconomic progress.
- Poor risk and contract management lead to project failures like cost overruns and delays.
- This study addresses the need to understand factors influencing building project success in the Nairobi Metropolitan Area.
Purpose of the Study:
- To examine the impact of risk management practices on building project performance.
- To assess the influence of contract management practices on project outcomes.
- To investigate the moderating role of project managers' skills in these relationships.
Main Methods:
- Descriptive and explanatory research design utilizing a standardized Likert-scale questionnaire.
- Stratified random sampling of 67 construction projects in the Nairobi Metropolitan Area.
- Inferential statistical analyses including regression and correlation, supported by descriptive statistics.
Main Results:
- Risk management practices (β=0.612, p<0.001) and contract management practices (β=0.239, p=0.020) significantly predict construction project performance.
- The combined management practices explained 60.6% of the variance in project outcomes (R²=0.606).
- Project manager skills did not significantly moderate the relationship or show an independent effect (p>0.05).
Conclusions:
- Robust risk and contract management are critical for successful construction projects in Kenya.
- While important, project manager skills have a modest, non-moderating additive value.
- Recommendations focus on industry-wide protocols and professional development to enhance systemic management practices.
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