http://etd.aau.edu.et:80/dspace/handle/123456789/492 Search the Channel search http://etd.aau.edu.et:80/dspace/simple-search http://etd.aau.edu.et:80/dspace/handle/123456789/4608 Title: PERFORMANCE STUDY OF LOWEST BIDDER BID AWARDING SYSTEM IN PUBLIC CONSTRUCTION PROJECTS <br/> <br/>Authors: Laychluh, Mechegiaw <br/> <br/>Abstract: Ethiopian construction industry participants have long recognized that accepting the lowest price bid does not guarantee maximum value. Achieving a value-based procurement approach is a challenge, particularly for the Ethiopian public sector clients who are limited in their ability to evaluate the competitive bids based solely on the low-bid award system. In the current economic climate it is increasingly likely that construction organizations will submit abnormally low tenders to win new work. Persisting problems of inferior quality of constructed facilities, high incidence of claims and litigation, and frequent cost and schedule overruns have become the main features of Ethiopian public construction works contracts. This research was undertaken to assess the performance of public owned construction projects awarded on a least bidder bid awarding system and to seek construction professionals’ opinions about the current traditional bidding procedure and other alternative systems for evaluation of bids and awarding contracts. An extensive literature search was carried out to identify different practices, a questionnaire survey was conducted among the different groups that make up the construction industry in Ethiopia, and projects data were collected from selected federal government clients and consultants administering public construction works. A number of alternative bid evaluation and contract award procedures are presented and discussed in this research; some of these alternatives are in use in other countries and industries, and some are emerging. Federal government regulations are reviewed to examine the objectives and intent of the law on this issue. The research showed that least responsive bid evaluation and contract award procedure (awarding contracts to the contractor who offers the least price) have been the main method of awarding public constructions works contract. Only in rare situations other factors, basically the contractors past record on projects owned by that particular public client, has been taken in to account in awarding contracts. Competitive low bid method has been highly criticized for its negative impact on disputes/claims, coordination, quality control and project duration. Most of the projects have been suffering in material and equipment shortages. Manpower shortage was also encountered in many projects. On the other hand, other alternative bidding procedures included in the study were highly appreciated by respondents for their positive effects on these attributes. Particularly, the researcher shared the idea of adopting the average bid method of awarding contracts among responsive bidders which are supported by many construction professionals included in the study. http://etd.aau.edu.et:80/dspace/handle/123456789/4593 Title: STUDY OF THE PROBLEMS OF CONSTRUCTION CONDITIONS OF CONTRACT FOR PUBLIC WORKS IN ETHIOPIA <br/> <br/>Authors: KASIEM, SEID <br/> <br/>Abstract: Construction industry in developing countries is reported to be insufficiently developed to meet the national development objectives and demands. Literatures show that construction projects are often subjected to long delays and increased costs. In these countries, the public sector is the main employer of the sector and most formally constituted contractors and consultants rely on the public sector for work. From the many other inter-related problems, use of inappropriate and inequitable contract conditions is one of the problems of the industry for lack of any appreciable development. The objective of this study is to identify drawbacks and shortcomings of the local construction conditions of contract adopted for public works in Ethiopia and to find out provisions that have negative implication for the development of the sector. The study focuses on provisions related to finance, risk allocation, claim substantiation & dispute settlement procedures, and the practice of contract administration. Questionnaire and interview survey together with desk study provide the main strategy for data collection methods. Samples for the study have been randomly selected from public employers, domestic consultants, and domestic contractors who are actively participating on public construction works. In this thesis, a descriptive statistical method has been used for the analysis of the data that provides a general overview of the results in that some kind of interpretations and discussions are made on the results. The study has determined the potential contract provisions that hinder the development of the sector and the findings of the study reveal that: the financial provisions adopted for public works are not suitable and need much further improvement; the risk allocation between public employers and domestic contractors need to address price escalation and unforeseeable shortage of materials fairly; the claim substantiation & dispute settlement procedure should adopt modern methods and practices; and contract administration practices & attitudes should be improved. This study further provides recommendations on how to improve the existing situations. http://etd.aau.edu.et:80/dspace/handle/123456789/4587 Title: Improving Cost Management Practices of National Contractors Focused On Building Construction Projects <br/> <br/>Authors: Abeselom, Abraham <br/> <br/>Abstract: Construction firms, being project based organizations, have to develop their project management capacity in order to accomplish firm and project objectives successfully. Copare (1990) stated that, the number of business failures in the construction industry is high and the high failure rate is not because contractors do not know the techniques of construction but rather they have not developed their management skills. Among such skills one is the project cost management. This research work presents several issues related to current project cost management practices of national contractors. The practice of 34 general and building contractors is investigated via questionnaires. Existing practices related with estimating and tendering, budgeting and cost controlling were assessed in view of identifying shortcomings and limitations associated with each functions. The research findings indicated that the success rate of tender offers is below 50% for 80% of the surveyed contractors and 67% among these, have a success rate less than 25%. The highest ranking responsible factor is tough competition, which is also aggravated by absence or lack of bidding strategy by the contractors. The results moreover indicated that most of the surveyed contractors are unable to obtain the profit they anticipate from their projects. 86% of the contractors have obtained below 75% of the amount they expected from most of the projects they have undertaken so far. Among these, 48% obtained less than 50% of the anticipated amount. The major contributing factors, in the order of their influence are price escalation, delays caused by owners and/or consultants, inadequate financial planning practices, lack of cost controlling system and inaccuracy of the estimates prepared during the tendering stage. According to the results of the research, factors contributing to the inaccuracy of cost estimates are unfamiliarity with different estimating methods, lack of up to date estimating manuals or standards on resources consumptions and productivity, inadequate search for information on project specific and contextual cost and non cost items, improper estimation of overhead costs, failures to evaluate and incorporate and/or difficulties in forecasting and quantifying risk allowances and inadequate assessment of factors while determining mark up amount or profit margin. Bill of quantity/ admeasurements and lump sum contracts types which are different versions of the fixed price contract, which place the economic risks on contractors, are the most widely used contract types in Ethiopia. The standard or traditional estimating method is the sole method used by the contractors for pricing construction contracts. None of the contractors adapt recent estimating techniques, such as the range estimating and parametric estimating methods, which consider risks and uncertainties, primarily or in addition to the standard method. Lack of standard estimating manuals by the construction industry, and absence of a system which maintain records of actual on-site costs and productivities with in the contractors are the major causes for errors in estimating direct costs. Regarding overhead costs, even though the average ratio of over head costs to the total direct costs is as high as 25% majority of the contractors do not identify and estimate them properly. 52% of the contractors add on allowance arbitrarily to account for these costs. Only 38% of the contractors consider risks during tender pricing. Qualitative items like project type, size, complexity, contract period, statuary regulations and so on, which can affect the quality and accuracy of estimates negatively, receive little attention from the contractors, during estimation and pricing. The results revealed that contractors’ cost controlling process is not integrated with the budget prepared for the project. Budgetary control is not popular among the contractors. The process focuses mainly on revealing the amount of profit and fails to indicate/identify activities or operations which are being carried out uneconomically together with the underlying reasons. Moreover, it is not carried out in a way which provides feedback to the estimating process. The survey results further revealed the very limited application of project works classification /breakdown and works coding system for facilitating the cost management process. http://etd.aau.edu.et:80/dspace/handle/123456789/4368 Title: The Role of Construction Management Professional in minimizing wastage of material in building construction ;The Case of Addis Ababa <br/> <br/>Authors: Mulualem Merid, Negatu Abera; Tedla Belachew <br/> <br/>Abstract: The thesis is aimed at the role of Construction Management Professional to minimizing material wastage in building construction projects in the case of Addis Ababa. The main focuses of the paper is to identify the existence of building materials wastage and vividly comprehend the extent of material wastage in building construction sites. It is also the intent of the thesis to show the causes and effects of the material wastage in building construction and come up with conclusion and recommendation to minimize wastage with regard to the role of construction management professional. The methods employed for the thesis were; literature review, questionnaire followed by interview for further clarification, site visits to take measurement and observation. Various literatures locally available were reviewed and several web sites searched. Qualitative data collection techniques are used. The thesis affirmed the existence of material waste in the building construction. 86.96% of the respondents have agreed the existence of material wastage in the respective projects. The observation on sties and assessment of archives reiterates the existence of material wastage. The thesis ascertained; design, procurement, material handling, operation, residual and sub-contract types are sources to cause material waste. It also depicted the extent of material wastage is significant. The economic impacts of material wastage are found to be very high that greatly contribute to the expensiveness of building cost which currently observed. Finally; the thesis clearly defined the role of the Construction Management Professional to minimize material waste. The role is explained dividing in to two stages; the role of construction management professional at pre- construction and construction stage. In the final analysis in the case of Addis Ababa; Construction Management Professionals are expected to play the great role to minimize material waste in building construction project staring from inception to execution.