The Influence of Contract Administration in the Performance of Grade One Contractors Building Project Within Addis Ababa, Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
Contract administration practice has been explored by many studies. However, the researchers did not consider the consequence of contract administration problems on project performance. This research, therefore, aims to examine the influence of contract administration problems on the performance of the 43 building projects within Addis Ababa being executed by GC-1 contractors. The research used descriptive and explanatory research design besides a combination of qualitative and quantitative research approaches were adopted. Census sampling was employed whereas the primary data was collected using a questionnaire having a four-level Likert scale and the collected data were analyzed using STATA 14 software to come up with regression and correlation results. To confirm that the data satisfies the basic assumptions of linear regression model diagnostics tests such as normality test, autocorrelation, multicollinearity, and heteroscedasticity test were conducted. Besides to this, the study used cost performance index(CPI) and schedule performance index (SPI) to measure the dependent variable project performance and considered delay (DE), subcontractor issues (SC), the definition of acceptance (DOA), change order (CO), the unclear scope of work (USW), increased cost (IC), dispute resolution (DR), and risk of failure (ROF) as independent variables. The regression result shows that unclear scope of work, the definition of acceptance, change order, delay, and increased cost have a statistically significant and negative influence on cost and schedule performance of grade one contractor's building project in Addis Ababa. The findings revealed that these contract administration problems have a statistically significant influence on the performance of grade one contractor's building project in Addis Ababa. Finally, the study recommended evaluating the performance of the projects starting from the contract agreement signing to every milestone of the construction projects and closely monitoring project contracts during projects implementation also inspection of deliverables to take prompt corrective measures before the contract administration problems escalated to high failure risk and to decide whether the project is suffering too much to consider termination before it is toolate.
Key Words: Grade one contractors, contract administration, project performance