Comparisons of Factors Affecting Performance of Local and International Contractors in Building Projects in Ethiopia
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Date
2018-06-03
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Addis Ababa University
Abstract
The Ethiopian construction industry has been busy with building roads and construction of
new buildings in the capital, Addis Ababa and across the country in the past decade or so, at a
large scale. These constructions are undertaken by both local and international contractors.
However, it has been observed that the performance of local contractors is by far at a lower
level than the international contractors. International contractors deliver the product in time,
at the given cost and at an acceptable quality way beyond comparison with those delivered by
the local contractors, posing the question: what are the factors that affect the performance of
local and international contractors resulting in such differences in there deliverables?
Based on review of literature, a total of 35 factors has been selected that influence both local
and international contractors and another 15 factors were also included which influence
international contractors in particular. The identified factors were categorized into groups
depending on types of performance process. Statistical analyses of their significance were
carried out based on the questionnaire survey with senior professionals from both groups of
contractors.
The results of the analyses have confirmed that all respondents agreed that their performance
was influenced by all the factors indicated in the questionnaire and also identified the top ten
factors which significantly affect performance.
Recommendations towards improvement of the current performance for local contractors
were forwarded: they need to ensure that they have enough capital base and proper cash flow,
adequate experience for a required assignment, proper planning and scheduling of the works
and ensure effective site management and supervision of the works and also to better control
cost, local contractors shall make use of earned value concept to calculate cost and schedule
variances as well as performance indices and forecasts of project cost and schedule duration.
On the other hand, International contractors were recommended to have project knowledge of
Ethiopia, its social norms, expectations and local preferences, cultural issues, approval
processes, operating law; material and labor quality, differences encountered in work
practices, cultural differences, design and construction standards and permit processes.
Understanding these differences and fine distinction in different countries help them reduce
the risks involved, thereby increasing the success of global projects.
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Keywords
Construction Industry, Contractors performance, International construction, Project performance factors