Wubshet Jekale (PhD)Zemenu Mersha Mihret2024-03-292024-03-292020-12-01https://etd.aau.edu.et/handle/123456789/2640A competitive contractor is the guarantee of a project’s success with enough capacity and performance on the industry. Therefore, how to choose a competitive contractor is crucial for the clients in the sector. The Federal Democratic Republic of Ethiopia has given an emphasis on improving the quality and size of the road network and infrastructure. Concerning this, the Ethiopian Roads Authority (ERA) is one of the assigned institutions by the FDRE as an implementing agency to award and follow up the implementation of the federal road construction projects to be timely and cost-effective as well as to improve the road sector through competent indigenous contractors. However, different literatures and reports shows that the indigenous contractors are not competitive enough in ERA projects. Thus, the road sector of Ethiopia is being dependent on foreign contractors. Consequently, the country faced lack of foreign currency, lack of local job opportunities, lack of competitive local contractors, and the increment of construction cost & time and quality decrement. Therefore, the study assessed the extent of competitiveness and identified critical affecting factors. Finally, it indicates the improvement mechanisms of competitiveness for indigenous contractors which participate in ERA projects. To achieve this, the research used survey and case study research strategy with mixed approach analysis method. The source of data used for the analysis were collected from respondent documents through questionnaire survey and document review from G-1 contractor’s and ERA. Thus, 97 ICB during tender and 104 projects during actual implementation were used for analyzing the competitiveness extent of indigenous contractors. Therefore, the average competitiveness extent of indigenous contractors was 46.07% in terms of value of projects awarded whereas in terms of actual performance were 52.4%. To select the most critical indigenous contractor competitiveness affecting factors, 37 factors were identified. Among these, the identified and prioritized 12 factors are cash flow management, experience, annual turn over, shortage of finance, time planning & management, capacity of human resource, plant and equipment, price increment, crew productivity, project scope, inappropriate price offer and material availability. And also, to find competitiveness improvement mechanisms, 21 factors were identified. From these, the identified 9 improvement mechanisms are continuous capacity building, suitable government policy, efficient use of advance payment, adequate funding, utilizing foreign contractors’ best practice, competent project manager, well-defined work plan, utilizing latest technology and utilizing joint venture approach. The research further provides recommendations under what circumstances the competitiveness of indigenous contractor’s will be sustainably to Federal road construction projects. Keyword: Competitiveness, Indigenous Contractor’s, ERA, Road ConstructionenThesis