Examining the Effectiveness of Cost Management Techniques in Project Management: A Case Study of the Lusaka-Ndola Dual Carriageway Road Construction Project

Cost management is a critical component of project management, as it directly influences the ability of an organization to deliver projects within budget, on time, and to the required standards. Effective cost management techniques provide project managers with tools to estimate, allocate, control, and monitor financial resources throughout the project lifecycle. These techniques not only help prevent cost overruns but also support informed decision-making, resource optimization, and alignment of project objectives with organizational goals. In today’s competitive environment, where projects face increasing complexity and financial constraints, adopting structured cost management practices such as budgeting, forecasting, earned value management, and cost-benefit analysis is essential. This study focused on examining the effectiveness of cost management techniques in project management within road construction projects in Lusaka. Specifically, it sought to assess the cost management techniques currently in use, determine their effectiveness, analyze the relationship between these techniques and project performance, and identify the limitations that affect their application in practice. The study adopted a case study design and utilized a mixed-methods approach to collect primary data. Data entry and analysis were carried out using STATA, with descriptive statistics such as frequencies, percentages, and means applied to summarize the findings. Associations between variables were examined using the Chi-square test, while qualitative data was analyzed through thematic analysis. The study revealed that budget forecasting (78%), cost-benefit analysis (70%), and earned value management (62%) were the most commonly applied techniques, while value engineering (45%) and lifecycle costing (38%) were less frequent. Cost-benefit analysis was rated “Important” or “Very important” by 80% of respondents, and documentation practices were considered “Good” (35%) or “Excellent” (25%). Cost management techniques reduced overruns “to a large extent” for 42% of participants, with 80% reporting effectiveness in staying within budget and 65% rating forecasting ability as “Good” or “Excellent.” Digital tools were viewed as effective by 65%, and 68% confirmed responsiveness to unexpected changes. Cost management’s impact on project success was rated “High” (42%) or “Very high” (28%), with accurate budgeting influencing quality (70%) and stakeholder satisfaction (75%). Key challenges included bureaucratic delays (75%), limited real-time financial data (75%), inflation and fuel volatility (70%), resistance to new technologies (70%), and inaccurate initial estimates (70%). Based on the findings, the study recommends that road construction projects in Lusaka strengthen the use of structured cost management techniques such as budget forecasting, cost-benefit analysis, and earned value management, while also increasing the adoption of less-utilized methods like value engineering and lifecycle costing to enhance long-term financial efficiency. Project managers should integrate digital tools and real-time financial monitoring systems to improve responsiveness to unexpected changes and reduce the impact of inflation and market volatility. Training and capacity building should be prioritized to address resistance to new technologies and improve forecasting accuracy, while streamlining bureaucratic processes will minimize delays in financial approvals.