Project Delivery Systems and Their Effects on Cost and Time Overrun On Ethiopian Road Authority Projects
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Date
2016-10
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Addis Ababa University
Abstract
Construction projects in Ethiopia are usually completed within a period longer than what is agreed upon by the contracting parties and with greater cost growth from contract amount. This is due to lots of claims, variations and change orders. A project is regarded as successful if the project is delivered at the right time, at the appropriate price and quality standards, and providing the client with a high level of satisfaction. There are lots reasons that lead to unsuccessful projects in Ethiopia and implementation of different delivery methods that fit best with a project can minimize the problem.
Projects can be delivered through traditional delivery method that is DBB or innovative delivery methods such as DB and CM@R. The performance of DB and DBB projects with regard to timely and on cost completion is analyzed in this thesis. Literatures in related topic were reviewed to address the structure and characteristic of different delivery method. The challenges and favorable conditions with local and international experiences for these delivery methods are discussed. In addition, professionalsā opinion and experience on different delivery methods were discussed through questionnaire analysis. Additionally, case studies were done on DB and DBB projects of ERA. Time and cost growth of each projects with its reasons are studied. Also challenges faced, variations and EOT on each project is studied, so that selection of appropriate delivery method that helps for better performance of a project can be done for future projects. This thesis mainly focuses on DB and DBB but in literature review CM@R is also included to give an overview about the method so that it can be considered for further study and in the future projects.
From the analysis and case study it is found that DB projects perform much better in cost and time than DBB projects. The only cost increase in DB projects are due to price adjustment so percentage increase in cost is lesser in DB than DBB. Some projects from the study show that there is greater probability for DB projects to be completed on time if capacity of local contractors is improved.
Keywords: Project delivery method, DB, DBB, CM@R, Delay, Variation
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Project delivery method, DB, DBB, CM@R, Delay, Variation