Assessment of Causes of Distressed Project in Addis Ababa Water and Sanitation Authority: A Case of Package Wastewater Treatment Plant Electromechanical Supply and Civil Work Construction (Lot II)
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Date
2020-06
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Addis Ababa University
Abstract
A distressed project is whenever the performance of a project falls outside nominal
values. Project distress can occur at any time during the life of a project, which could
make it difficult for the project to be completed successfully within project constraints.
The objective of this research is to assess the cause and prevention project of distress
management on wastewater treatment project in Addis Ababa Water Sanitation and
Authority. This paper used qualitative approach and case study strategy by means of
narrative qualitative analysis. The findings implied that the Package Wastewater
Treatment Plant Electromechanical Supply and Civil Work construction (Lot II) project
were distressed in its life time of the project. The main cause of distress was selection of
inappropriate technology, lack of cash flow and economical inflation; poor planning;
issue related with scope change management; issue related to resource management;
improper risk management and issue to stakeholder management. The prevention
management strategy used to avoid distress in the project was periodic reviews. Based on
the findings, recommendations are given. Before the selection of technology it is
necessary to conduct a feasibility study that incorporates the local condition of the city.
The project planning should also be conducted by gathering the necessary primary data
and secondary data to estimate the schedule according to the current market condition of
the resource. Rectifying the above causes of project distress will help in minimizing the
occurrence of distress however having an effective prevention management strategy will
play a significant role. The several tools and process to prevent project (i.e. dynamic risk
management; scope change management and others) must be in place which are the
finest way to detect early warning signs of distress. The prevention management
strategies is also important that the implementation of the tools and process to prevent
distress must be strictly followed deliberately.
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Keywords
Distress project, Early warning signs, Prevention management strategy