Assessment of Cause and Impacts of Local Contractors’ Time and Cost Performance in Ethiopian Roads Authority Projects
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Date
2016-12
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Addis Ababa University
Abstract
LIST OF FIGURES
Figure 2.1 KPIs throughout the life time of a project ................................................................... 17
Figure 4.1. Academic background of respondents........................................................................ 45
Figure 4.2. Local contractors‟ performance in road projects under ERA ..................................... 46
Figure 4.9. Summary of Projects time and cost overrun on the case study ................................. 69
MSc. Thesis on Assessment of Cause and Impacts of Local Contractors‟ Time and Cost Performance in
Ethiopian Roads Authority Projects
VII
ABSTRACT
Infrastructure projects, such as road constructions, are one of the most important projects in Ethiopia. Growth in this sector is critical for growth in national income as it is among the largest sectors that generates employment within the country as well as a key driver for economic development of Ethiopia. Ethiopian Roads Authority has administered many projects at the federal level involving local contractors on the projects. However, projects executed by contractors are facing critical problems with respect to time and cost performance. There are several factors that are contributing to these time and cost performance problems of local contractors.
Accordingly, this research attempts to identify the major causes of poor time and cost performance of local contractors, consequential impact in the Ethiopian road construction industry; which can serve as the way forward for future work in coping with this performance problem. A thorough literature review and desk study was done, through which a number of time and cost performance factors were identified in global and local construction industry scenarios.
To obtain expert opinions from the sector, in total forty nine (49) factors and 15 possible impacts were identified and made part of the survey questionnaire and the survey was conducted with stakeholders from contractors, client, and consultants. In addition, case study/desk study of 6 completed road construction projects at federal level were investigated.
As a result of the study, inadequate planning and scheduling, poor project management system by contractor and late possession of site by the client are identified as the most important factors causing poor time and cost performance of local contractors. Among the subsequent impact of these local contractor poor time and cost peformnace on the construction industry; it discourages investment on road construction projects by the public authorities and it creates adversarial relationship among the stakeholders are identified as the most likely.
It is also recommended that the client (ERA) gives due attention to grant contractors timely possession of site and local contractors to deploy experienced professionals in the area of project management.
Key Words: Time and Cost Performance, local Contractors, Client, Consultants, Construction.
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Keywords
Time and Cost Performance, local Contractors, Client, Consultants, Construction