Assessment of the Identified Critical Success Factors in Real Estate Projects: a case of the selected real estate company projects
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Date
2020-06
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Addis Ababa University
Abstract
Major critical success factors in the real estate construction industry are inputs which will
lead directly or indirectly to project success. The real estate sector has been one of the
fastest-growing segments of the Ethiopian economy and the rapidly changing real estate
landscape in Addis Ababa is one of the more noticeable aspects of the growth recently
experienced in Ethiopia. This paper is aimed to identify and study the critical success factors
which lead to the success of a project and show the extent of the relationship between CSFs
and project performance. The study has used Saqib. M et al's (2008) seven critical success
factors of construction projects, namely Project Management related critical success factors,
Procurement System-related critical success factors, Clients related critical success factors,
Design Team related critical success factors, Contractor related critical success factors,
Project Manager related critical success factors, and Environment related critical success
factors, as independent variables where project success is measured in terms of time, cost,
and quality which are used as dependent variables. A conceptual framework was also
developed using the identified variables for project success. A descriptive research design
was used to assess the critical success factors in the selected real estate development
projects. Primary and secondary data were also used for the achievement of the study.
Primary data was collected using a questionnaire. A total of 37 out of 42 questionnaires were
filled by different members of the projects from both Noah and Sunrise real estate companies.
Descriptive statistics were used to analyse and interpret the data found from the respondents.
Correlation technique was also used to indicate the relationship between the independent and
dependent variables. The findings show that the assessment of the practice level of the
identified factors within the real estate companies resulted in a high level of mean score
values. Moreover, a moderate but positive relationship was observed between project
manager related success factors, project management related success factors, clients related
success factors, and environment-related success factors with project success.
Communication system, a timely decision by the owner, and project manager’s competence
are some of the factors found to be highly practiced and managed within the companies. Yet
some items were given lower ratings as well. Developing an appropriate organizational
structure and training the HR in the skill demanded by the project, project design complexity,
and delays in producing design documents were among the factors to be rated lower than the
rest of the items. Developing a suitable structure which follows the company's strategy and
objectives, hire and train the human resources to the required skill demanded by the project
so that employees improve their performance, and carefully monitoring, having regular
meetings with the design team, and also having a full commitment to the project by both
parties were recommended to improve the weak areas that are displayed in the study for
better performance.
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Keywords
Critical Success Factors of projects, project success,, fastest-growing segments