Construction Procurement Practices and It’s Impacts on Ethiopian Road Construction Case Study: - Ethiopian Road Authority

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Addis Ababa University


In Ethiopia, road construction projects are playing the major role in the Ethiopian economic sector. The Ethiopian Roads Authority (ERA) is charged with the duties and responsibilities of providing adequate road infrastructure to support the socio-economic development of the country. To improve the Ethiopian economic somewhat appropriate and effective procurement approach is essential to reduce the impact in construction budget, completion time and performance in the road construction. The major aim of this research is to review, analyze and recommend construction procurement practice and its impact on Ethiopian road construction. Two major research methods are used to achieve the research objective, namely, primary and secondary data collection. To address the problems, a questionnaire was designed and distributed to contractors, consultants and employers participating in road construction sector. To supplement the questionnaire, a desk study was conducted on Ethiopian Road projects. A total of 91 questionnaires from client, consultants and contractors were collected and a desk study of 12 completed and ongoing road construction projects in Ethiopia were investigated. From the results it was found that most of the road construction projects suffered both time and cost overrun. The rate of time overrun ranges from a minimum of 25.75 % to the maximum of 79.86 % of the contract amount and cost overrun ranges from a minimum of 0% to the maximum of 26% of the contract amount, these results are based on the 12 projects. As a result, the findings show that the main factors that affects procurement practice in Ethiopian road construction projects are: improper planning, improper designing, construction methods, shortage of labor and technical personnel, quality and shortage of materials, construction mistakes and defective work, lack of training to project team in regard to procurement, lack of risk consideration, technical and financial capability and past experience of contractor and consultant are not verified in selecting contactor and consultant and poor monitoring and controlling, as well unclear process of closing a procurement have been found as the areas that needs improvement. Thus, provide training, seminars, workshop with regard to innovative project delivery system, establish other tender evaluation system other than low bid method to improve the cost overrun, time overrun and quality of the construction projects, and copy or modifying other country method may not be work full for our county are some of the recommendation made under this study on what actions should be taken in order to improve project procurement practice in the project.



Procurement, Procurement Approach, Contract, Planning, Road Construction