Assessment on Ethiopian Roads Administration Cost Estimate Validation System and its Impact on the Procurement of Road Projects
| dc.contributor.advisor | Abraham Assefa (PhD) | |
| dc.contributor.author | Biruk Yersaw | |
| dc.date.accessioned | 2025-10-07T09:13:43Z | |
| dc.date.available | 2025-10-07T09:13:43Z | |
| dc.date.issued | 2025-07 | |
| dc.description.abstract | The validation of engineering cost estimates is fundamental to transparent and efficient procurement in public infrastructure. This study examines the key deficiencies and challenges in the review and validation of engineering cost estimates of Ethiopian Roads Administration (ERA) and the impact of the identified gaps on the procurement of road projects. The research employed a mixed-methods design to provide a robust analysis adopting both descriptive and explanatory designs, using a quantitative and qualitative research approach. Primary data were collected through structured questionnaires, semi-structured interviews and focus group discussions from key management personnel directly involved in estimate validation. An in-depth study was conducted on a selected federal road project to assess and evaluate the capacity of the cost estimate validation system (ERAMS) using the collected secondary data such as Consultant‟s cost estimate, ERAMS validation report and Contractor‟s offer. Data analysis and presentation including coding, frequency analysis and presentation of questionnaire responses was carried out using relevant tools. Questionnaire data reveals key shortcomings which includes the absence of standardized review checklists and up-to-date guidelines, inadequate documentation practices, and limited traceability in the basis of estimate, with nearly 60% of respondents expressing dissatisfaction with the existing review and quality control processes. Further, the in-depth study quantified the technical limitations of ERAMS, showing that 56% of the 159 bill items in the sample project were not validated by the system's rate build-up due to its inability to validate non-standard (custom) items. This validation failure contributed directly to procurement challenges with variances on major individual items exceeding 300% due to the poor integration with market prices. Hence, discrepancies between consultants estimates and contractors bids remain significant, often due to inconsistencies in assumptions, lack of standardization, and differing approaches to risk assessment. The findings conclude that ERA's current cost validation system is inadequate, creating procurement risks and inefficiencies that needs urgent systemic reform focusing on updating technical guidelines, enhancing the functionality of ERAMS to validate all bill items, standardizing estimation procedures, building institutional capacity through training of dedicated estimation validation units, and improving data-sharing protocols to bridge the gap between estimates and market realities. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7457 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Cost Estimate Review | |
| dc.subject | ERA | |
| dc.subject | Procurement | |
| dc.subject | Road Projects | |
| dc.subject | Design Consultants | |
| dc.subject | Estimate Validation | |
| dc.subject | ERAMS | |
| dc.subject | Contractor offers | |
| dc.title | Assessment on Ethiopian Roads Administration Cost Estimate Validation System and its Impact on the Procurement of Road Projects | |
| dc.type | Thesis |