Assessment on the Causes of Construction Project Failures and Abandonment: The Case of Ayat Real Estate Cmc Project

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Date

2022-01

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Addis Ababa University

Abstract

If we look at Ethiopia’s total project investments, it is evident that over one third of it belongs to construction projects. Construction projects have defined starting and ending dates. A program(schedule) is set for these projects, funding is devoted and there are also quality constraints that will be sent. There are goals and objectives that are expected to be attained as well. If a project fails to attain these, we can say that it has failed. project can fail or get abandoned for different reasons. There are different projects that fail in Ethiopia. The reasons could be economical, could be related to the lack of administrative policies, the working taskforce may not be devoted or well trained, there could be a communication gap, the project clients may not have proper consultation amongst themselves, They may not be able to work under strenuous circumstances and constraints. This project aims to employ questionnaires and semi structured interviews in order to determine the most common causes of failures and abandonments in construction projects. While doing so, it is mainly going to focus on the Ayat Real Estate CMC Project . In this particular research, we are mainly going to deal with causes like customer, consultant, contractor, external environment, time and budget as the main culprits. The failure and abandonment of the Ayat Real Estate CMC project in Addis Ababa has been identified to be a result of a total 34 sub factor. In order to obtain relevant data, this study used both qualitative and quantitative methods. The researcher employed surveys and semi-structured interviews. Totally, fifteen questionnaires were distributed to the selected participant consultant and the contractor’s experts participating in the building project and out of the total samples 20 responses were collected. The remaining 5 respondents provided data through interviews. These respondents were from the client’s side. Data was acquired through interviews with these 5 respondents. The researcher carried out the investigation in the hopes of possibly decreasing/getting rid of the construction abandonment and failure causes. In this regard governmental policies and regulations should be prepared by studying the effect of such failures and abandonments can have on ongoing projects. The clients should also be open to make the pertinent amendments and take into consideration the external factors. The client should also undertake the financial planning methods and should employ the same starting from the very beginning and there should be as reliable estimate provided by professionals and consultants. A risk management plan or legal mechanism shall also be devised in order to minimize the loss of the company and ensure the safe up keeping of the reputation. Keywords: Construction project failures, construction projects, Construction project abandonment, Construction project failure and abandonment

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