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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Date
2017-06
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Addis Ababa University
Abstract
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
Description
Keywords
Project, project management, project management knowledge areas