Root Causes of Poor Contractors’ Performance in Construction - A Case of Selected Public Building Projects in Addis Ababa
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Date
2024-08-01
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Addis Ababa University
Abstract
Building contractors play a pivotal role in construction projects, influencing their success or failure. This study investigates the underlying factors contributing to subpar performance among contractors involved in selected public building projects in Addis Ababa. A cross-sectional study was conducted, encompassing ongoing and recently completed projects, involving key stakeholders from Ethiopian building construction organizations. The research utilized a probability sampling technique—stratified, proportional, and random sampling—to select participants. Data collection employed a semi-structured questionnaire and interview checklist. The findings identify several root causes of contractors’ poor performance, including cost-related issues, human resources challenges, and management deficiencies. Delayed payments, variations in project scope, fraudulent practices, corruption, decreased labor productivity, and compliance issues with procurement laws emerged as significant concerns. The study underscores that under performing contractors jeopardize their profitability and sustainability within the local construction sector. In conclusion, the study recommends timely payment to contractors and swift resolution of payment-related disputes by clients. It also suggests that contractors consider securing bank financing to manage short-term cash flow challenges, with the expectation of repaying such loans promptly upon receipt of client payments. These measures are critical for improving contractors’ performance and ensuring the successful execution of public building projects in Addis Ababa.
Key Words: Contractor Performance, Public Building Projects, Addis Ababa