The EFFECT OF COST MANAGEMENT ON PROJECT PERFORMANCE IN TANZANIA; EVIDENCE FROM NORTHERN ENGINEERING WORKS LTD (NEWL)

Abstract

This study investigated the effect of cost management on project performance at Northern Engineering Works Ltd (NEWL). Anchored on positivism and a deductive approach, a quantitative design was applied using survey data from 100 stratified stakeholders engaged in fibre-optic and tower construction projects executed between 2020 and 2025. Descriptive statistics, Pearson correlation and multiple linear regression (R² = 0.991; F = 1188.810; p < 0.001) indicated that cost management has a strong and statistically significant influence on project performance, with rigorous cost planning and budgetary control demonstrating the strongest predictive effect (β = 0.702; p < 0.001). Projects that instituted detailed cost baselines, conducted continuous variance analysis, and enforced disciplined change control achieved markedly better outcomes than those initiated with weak or reactive cost practices. The study concludes that strengthening cost governance through cost breakdown structures, earned value monitoring and strict budgetary gatekeeping is essential to reduce overruns, mitigate claims and improve delivery reliability in telecommunications projects at NEWL.

Keywords: Cost management; Project performance; Cost control; Budget governance; Telecommunications projects.