Financial Resource Planning and Performance of Construction Projects. a Study of Buruuj Construction Company, Mogdishu, Somalia
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Date
2024-11
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Abstract
This study investigates the dynamics of financial resource planning and its impact on the performance of construction projects at Buruj Construction Company in Mogadishu, Somalia. The objectives were to examine the effects of financial planning processes and monitoring on project performance and to explore the relationship between financial resource allocation and project outcomes. Utilizing a cross-sectional study design, data were collected from a sample of 109 respondents selected from a population of 150 employees and beneficiaries using Slovin’s formula. Questionnaires and interview guides were employed for data collection, and the SPSS software was used for analysis. Findings revealed significant positive relationships between financial planning processes (r = 0.297, p < 0.01), financial monitoring (r = 0.412, p < 0.01), and financial resource allocation (r = 0.413, p < 0.01) with project performance. The study concludes that integrating financial planning and monitoring processes is crucial for enhancing the efficiency and effectiveness of construction projects. The theoretical framework is grounded in resource-based theory, emphasizing that strategic financial management can lead to improved organizational performance. The study recommends that the Somali government support construction organizations in understanding the benefits of financial resource planning. By enhancing knowledge of financial management, stakeholders can significantly improve project outcomes. Overall, effective financial resource management is vital for the successful execution of construction projects, highlighting the need for ongoing training and accurate performance forecasting to optimize resource utilization.