Assessment On The Effectiveness Of Mugher Cement Enterprise Coal Conversion Project

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Addis Ababa University


Many projects experience schedule and cost overrun and thereby exceed initial contract amount period and cost. It becomes difficult to complete projects in the allocated cost and time. Taking into account the scarce financial resources of the country, cost overrun is one of the major problems and need investigation. This study examines previous literature on construction projects cost and schedule overruns, with the specific aim of identifying the causes and effects of cost schedule overruns in Mugher Cement Enterprise Coal conversion project. This is because of the overriding importance of time for both the owner (in terms of performance) and the contractor (in terms of money), it is the source of frequent disputes and claims leading to lawsuits. The primary concern of these arguments is answering the question of the extent of each contracting party’s responsibility for the delayed projects and extra cost incurred. Consequently much has been done to avoid disputes related to delays. The thesis was initiated to investigate these issues by considering the case of Mugher Cement Enterprise Coal conversion project, towards developing a frame work for improving cost overrun and delay analysis. The methodology adopted in undertaking this research was the mixed approach involving a detailed review of the relevant literature, report produced followed by survey through structured interview to investigate the variables identified in depth. The study has revealed that the Mugher Cement Enterprise Coal conversion project is exposed to delay caused by delayed site handover, lack of coordination between main and subcontractors, delayed in delivery of equipment as scheduled, delay in initial payment, labour strike, civil unrest (uncontrolled problem). In addition it was found out in the literature that methodologies for analyzing delays are different in various ways leading to difficulties and disputes associated with delay analysis. Therefore, best practice recommendations for avoiding the causes of delays identified and a model for assisting the analyst in selecting an appropriate delay analysis methodology for any claim situation were provided



disputes associated, amount period, projects experience