Abstract
Cost overruns have provided a significant challenge in the construction industries of both developed and developing countries. Financial and Contract Management incorporate designs and approaches which take keen interest on issues associated to Negotiation Strategies which informed the basis of investigation of the concept of Construction Cost Overruns in Real Estate Projects in this study. The purpose of this study was to investigate the influence Negotiation Strategies on Construction Cost Overruns of real estate projects in Nairobi and Kisumu Counties. The study was guided by objectives to establish the extent to which Negotiation Strategies influence construction cost overruns in real estate projects. The study was based on pragmatic paradigm which provides for the use of both qualitative and quantitative research methodologies. The research adopted descriptive survey and correlational research designs. The study targeted a population of 4000 project professionals that are 7 from active real estates in Nairobi and Kisumu Counties and 10 key informants from the real estate industry. Using the Krejcie and Morgan table of sampling method, the sample size for this study was 351. The study then adopted stratified, simple random and purposive sampling methods to select appropriate sample sizes from the study population. Structured questionnaire was the main instrument for data collection, supported by interview guide. Hypothesis tested at α=0.05 level of significance and the results were: .H0: There is no significant relationship between Negotiation Strategies and Construction Cost Overruns in real estate projects was rejected since P=0.000<0.05. Therefore the study concluded that there is significant influence of all financial and contract management approaches as well as contracting on construction cost overruns in real estate projects.
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