Factors Affecting the Performance of Public Construction Projects: The Case of Addis Ababa Roads and Condominium Projects
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Date
2020-07
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A.A.U
Abstract
Though huge amount of the public budget annually goes to public construction projects, it is very rare to see these projects contributing to the countries development within the planned schedule, cost and quality. This study aims to assess the performance status of public construction projects in terms of the three basic performance dimensions; schedule, cost, and quality, to investigate the relationship among the three project performance dimensions, and to identify critical factors that contribute to construction projects performance gap. Primary data was collected via questionnaire from the total of 122 respondents (48 project managers, 39 resident engineers, and 35 counter-part engineers). For the purpose of analysis, Relative importance index (RII) was used to identify critical factors contributing to the performance gap of public construction projects. ANOVA, correlation, and multiple regression model were the inferential statistics used to perform test of difference, association and cause and effect relationship respectively. The finding of the study indicated that the mean schedule, cost and quality variances for all types of sampled projects was found to be -117.84%, -32.37% and -17.95% respectively and the minimum and maximum performance variation ranges from-11.11% to -300.00% for schedule variation, from -16.37% to -127.27% for cost variation and from -2.00% to -50.00% for quality variation. The study finding also indicated that mean schedule, cost, and quality variance of the 3 types of sampled construction projects had statistically significant difference at 0.1%, 0.1% and 5% level of significance. The multiple regression result indicated that schedule variance had positive effect on cost variance, which was statistically significant at 0.1% level of significance and quality variance had positive effect on schedule variance, which was statistically significant at 0.1% level of significance. In addition, quality variance had statistically significant positive indirect effect on cost variance when the mediator variable, schedule variance introduced. Based on the RII result, among the top 15 factors that contribute for the construction projects performance variation; 5(33.33%) of them i.e. ineffective planning and scheduling, poor site management and supervision, difficulties in financing project, improper construction methods implemented, and insufficient control of subcontractors were from contractor related factors, 5(33.33%) of them i.e. delay in freeing the contractor financial payment, delay to deliver the site to the contractor, client reliance on low price bidding, delay in providing materials that the client agreed to provide, and slowness in decision making process were from client related factors, 3 (20%) of them i.e. late in reviewing and approving design documents, unclear and inadequate details in drawings, and delay in approving major changes in the scope of work were from consultant related factors, and finally, 2 (13.33%) of them i.e. price escalation for construction materials, and unavailability of utilities on site were from external related factors.
Description
A thesis submitted to the College of Business and Economics of Addis Ababa University in partial fulfillment of the requirements for the Degree of Master of Business Administration (MBA)
Keywords
project performance, cost variance, schedule variance, quality variance