Cost Management and Performance Impact Analysis in Large Real Estate Construction Projects: Take Mogadi Real Estate Company as An Example

Abstract

Construction projects in Mogadishu, in particular, confront difficulties in terms of overall implementation. This study investigated the effect of project management abilities on the performance of building projects in Mogadishu, Somalia. The study's particular goals were to analyse how project planning, communication, risk management, and project monitoring and control skills affected the performance of construction projects in Mogadishu, Somalia. Competency theory underpinned the study. A descriptive and cross-sectional survey research design was used in this study. The respondents were three important members of management from each firm's managing director, senior management, or operational managers, and the study addressed 127 construction enterprises in Mogadishu. A population of 659 construction workers in Mogadishu working for 127 companies was taken. The study has 179 participants. In order to estimate the total number of people in each respondent category, proportionate stratified random sampling was used, and basic random sampling was used to choose respondents for each category. A semi-structured questionnaire was utilized to collect the data. Descriptive and inferential statistics were used to analyze data. The study found that performance of construction enterprises in Mogadishu, Somalia, was influenced by their ability to plan projects; nevertheless, project communication, risk management, and monitoring and control were shown to be advantageous. Research indicated that construction firms in Mogadishu that have managers and workers with adequate project management abilities, such as effective communication, risk management, and project monitoring, performed better in project management. Construction companies in Mogadishu that lack project management skills must ensure that their key experts in the construction industry undergo on-the-job training to learn project management skills such as communication, risk management, and project monitoring and control.