Comparisons of Factors Affecting Performance of Local and International Contractors in Building Projects in Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


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.



Construction Industry, Contractors performance, International construction, Project performance factors