Employees perceptions of the effectiveness of variance analysis as a cost control tool in the construction industry: a case of KW Blasting Company in Bindura

Abstract

Variance analysis as a cost control tool in construction industry in a case study KW Blasting Bindura was the study area to test the effectiveness of variance analysis as a cost control tool in the construction industry. The study's objective was to identify the implementation of variance analysis and its role in cost control, evaluate various challenges that affect the implementation, as well as proposed ways to improve its implementation. The method and technique employed was the case study research design which used the quantitative approach. The data for this was gathered by questionnaires from workers in the finance area, procurement, operations and project management. The respondents responsible for the information on variance analysis and cost control practices in the company were selected using purposive sampling technique. The Statistical Package for Social Sciences (SPSS) version 26 was used in analyzing the data. Data were presented as descriptive statistics including frequencies, percentages, tables and the relationships between variables were analyzed by the Analysis of Variance (ANOVA). Finally, the study found that the effective implementation of variance analysis enhanced the cost control and operational efficiency in construction companies. The study had some recommendations for the enhancement of cost control practices. KW Blasting should improve and strengthen its budgeting systems, increase continuous cost monitoring and implement modern accounting systems.