The Effect of Birr Devaluation on Project Timely Completion: The Case of 40/60 Housing Project in Addis Ababa
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Date
2023-06
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Addis Ababa University
Abstract
In Ethiopia, the rapid depreciation of the Ethiopian Birr in recent years has had a variety of practical effects on the timeliness of housing developments. During devaluation times, the costs of imported building supplies such as cement, steel, and equipment rise in local currency, making it difficult for projects to stay within budget. The study's major goal is to evaluate the factors influencing the project time delay of 40/60 housing projects in Addis Ababa. The forms of research used in this study are exploratory, descriptive, and correlational. By evaluating the relationship between variables, quantitative approaches were utilized to evaluate objective hypotheses. This study's target demographic is employees at Addis Ababa Saving Houses Development Enterprise's headquarters in Addis Ababa. There are 192 employees in the company who are directly involved with housing projects. All aspects closely relevant to housing projects were chosen for this study. Questionnaires were the primary mode of data collection. The regression analysis results show that project scope change, reduced budget, rescheduling procurements, cost overruns, and delayed payment account for 87.4% of the adjusted R square value, implying that variation in these five predictors alone can explain 87.4% of project time delay. The study suggests, the company could explore employing local materials and equipment, negotiating better pricing with suppliers, and establishing a contingency fund to cover any unforeseen expenditures. Furthermore, the company should establish clear payment schedules and make sure that all parties involved understand the payment terms. Furthermore, by using local materials and equipment, negotiating better prices with suppliers, investigating alternative procurement methods such as local sourcing and leasing, and establishing clear project objectives and deliverables from the start, the enterprise can mitigate the impact of factors contributing to project time delays
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Developments