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Title: Alternative Project Delivery Methods for Public Constructions: Cases in Oromia Region
Authors: Lema, Mosissa
Advisors: Wubshet Jekale (Dr.-Eng.)
Copyright: 2006
Date Added: 13-Oct-2008
Publisher: Addis Ababa University
Abstract: This thesis work is undertaken to identify the existing project delivery methods in Oromia region, to evaluate alternative delivery methods and to assess opportunity for their applicability to the local situations. This is to provide a useful supplement to the existing methods so that all stakeholders in the construction industry will benefit. Accordingly, four project delivery methods based on their relevance to the local situation in Oromia region of Ethiopia have been evaluated; their merits, demerits, and requirements identified. These methods are: the design-bid-build (DBB), the construction management (CM), the design-build (DB), and the design-build-operate-transfer (BOT) methods. The criteria used for selecting (or evaluating) the appropriate method(s) among the alternative delivery methods were: project time certainty, controlling project cost, ensuring project quality, and reduction of owner’s administrative burden. These are sometimes called project objectives. These evaluation criteria (project objectives) have been decided based on the literature survey and test interviews made at the early phase of the thesis work. So as to draw reliable inference, data was collected from four clusters of stakeholders in the construction industry, namely; public owners, contractors, consultants, and reputed professionals. The research design was based on exploratory survey, desk study, and descriptive approaches. Besides, the research instruments used were questionnaires, interviews, discussions and document reviews. The participants include eight public owners, seventeen contractors, twenty consultants, and another twenty reputed professionals. The respondents were selected using random sampling, except public owners for which purposive sampling was used. Alternative Project Delivery Methods for Public Constructions: Cases in Oromia Region xii As one of the core responsibilities of the thesis work, assessment of the prioritization of these project objectives by the concerned bodies has been conducted. Accordingly, it is revealed that public owners in Ethiopia’s Oromia region wish to ensure project time certainty in the first place. Their second critical requirement is to attain project cost certainty. Thirdly, they want to reduce the administrative burden to them. Finally they indicate that they want to attain a quality project. This study, as one of its findings, reveals that the current construction projects delivery method in Oromia region is the traditional Design-Bid-Build (DBB) method. It is also noted the innovative project delivery methods have never been used. The DBB method has been short of meeting the above mentioned project requirements set by the public owners in the study area. Hence, there is a positive attitude towards the application of the innovative project delivery methods with the public offices. It has been thought that the local construction industry in Ethiopia is a cost-driven industry. Taking Oromia region as a study area this thesis work, however, shows that public owners wish the industry to be a time-driven one. This is because public owners have come to understand that when the project time is controlled, reduced or maintained the overhead costs and the consultancy fees can be dramatically reduced. They have also come to understand that if project time is maintained or reduced, the cost overrun due to price escalation and inflation can be minimized. Hence, the cost is issue is regarded as a second priority in selecting among different project delivery methods. It has been argued that the local contractors lack financial, managerial, and sometimes technical capabilities to run construction projects under innovative delivery methods. Based on the assessment of the local construction industry, however, the innovative methods DB, CM-at-Risk, and CM-at-Fee can be effectively applied in the study area. This could be accomplished by partnering between consultants and/or contractors and proper contractor and/or consultant selection. Alternative Project Delivery Methods for Public Constructions: Cases in Oromia Region xiii Partnering maximizes the effectiveness of each of the partner’s resources, and proper contractor/consultant selection avoids selection of a contractor/consultant that is not fit for the job to be undertaken. The traditional DBB method can also be employed in situations when the public owner wants to involve in several aspects of the project and when time is not a constraint. It can, however, be argued that the transition from the traditional method to the innovative methods needs time and involvement of everyone in the construction industry. And, this paradigm shift ought to be advocated through short trainings, tailor-made short courses, workshops, research and construction magazines, and any other relevant means.
Description: A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Science
URI: http://hdl.handle.net/123456789/1407
Appears in:Thesis - Civil Engineering

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