Assessment of Distressed Project Management Practices: the Case of Eotc Aroge Kera Projects

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Addis Ababa University


The study seeks to assess the factors of distress, the impact of the occurred distress and to identify the strategies to be implemented for dealing with the negative impacts of the distress in two Ethiopian Orthodox Tewahedo church (EOTC) building construction projects, the so called Aroge kera 1000m2 and 480m2 projects. The study uses both quantitative and qualitative data analysis. The quantitative data obtained from the questionnaire survey were analyzed using Relative Important Index (RII) and the qualitative data gathered using interviews were analyzed using Narrative analysis. The research found out that, five significant factors contributed to the distress of the two Aroge kera projects. This are: Economic downturns (inflation), Price escalation of construction material in the market, Unrealistic estimation of cost, Ineffective planning and scheduling and Delays in approval of contractual claims, such as an extension of time and cost. Consequently, the findings of the study disclosed 8 major impacts of distress. This are Cost overruns, Time overruns, Bad Reputation, Negative social impact, Stress, Financial Loss (Bankruptcy), Greater overhead cost due to rework and Delays in getting profit



Cost overrun, Time overrun