The practice of project management in Ethiopian real estate industry and its contribution to project success: The case of selected company in Addis Ababa

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Addis Ababa University


The application of Project Management (PM) tools and techniques in public sector is gradually becoming an important issue in developing economies, especially in a country like Ethiopia where projects of different size and structures are undertaken. The paper examined the application of the project management practice in public sector in Ethiopia. There are different problems that are faced by Real Estate projects such as delay, nonperformance of projects, not meeting required specifications, and dissatisfaction of customers, etc. This study aims to assess the extent to which project management is applied in Ethiopian Real Estate projects and its contribution to success of these projects and to address the major causes of delay, cost escalation, and poor quality. Major data for the assessment are obtained from 24 Real Estate companies through questionnaire. Data are also gathered from 11 construction consultants, 3 instructors, and 44 Real Estate house owners for cross checking the information found from the Real Estate companies. Mean, standard deviation, correlation, regression, and other quantitative and qualitative analysis tools are used. IBM SPSS Statistics 20 computer applications is used to simplify long statistical computations. The findings reveal that Project integration, scope, time, HR, procurement, and claim are well managed in the Industry. In addition to this, Project initiation process groups and project closing process group are practiced well and consistently. On the contrary, the other knowledge areas and process groups are either poorly practiced or inconsistently applied or both throughout the Industry. It is also found that the practice of project management has significant contribution to success of Ethiopian Real Estate projects. Recommendations are forwarded for Real Estate companies to maintain their good project management practices that are mentioned above, to improve the other knowledge area and process group practices, to consider causes of delay, cost escalation, and poor quality while making project decisions, to continuously conduct customer satisfaction survey to cop up with the new dimension of project success, and to have project management Information Systems. It is advised to establish Real Estate Association at industry level and to set project management standards by government at national level. Finally, area for further study are indicated



Project, project management, project management knowledge areas