Tilahun Deneke

The Assessment of Factors Affecting Performance of Construction Projects.
The Case of ECWC Construction Projects
Addis Ababa University School of Commerce
Assessment of Factors Affecting Effective Performance of

Construction Projects: The Case of Projects of Ethiopian
Construction Works Corporation.
By: Tilahun Deneke
A Research Project Work Submitted to the School of Graduate

Studies of AAU in Partial Fulfillment of the Requirement for the
Degree of Master of Arts in Project Management
Advisor: Adane Atara (PHD)
February 2020
Addis Ababa, Ethiopia
The Assessment of Factors Affecting Performance of Construction Projects. The Case of ECWC Construction Projects
DECLARATION OF CANDIDATE
I, Tilahun Deneke hereby declare that this research project work entitled
Assessment of Factors Affecting Effective Performance of Construction Projects:
The Case of Projects of Ethiopian Construction Works Corporation is my own
paper work and that it has not been submitted before anywhere either at Masters
level or Undergraduate for any award. Any information used from other works has
been acknowledged.
By: Tilahun Deneke
Date: --------------------------
Signature: -----------------------
TILAHUN I
STATEMENT OF CERTIFICATION
This is to certify that Tilahun Deneke has carried out this research project work on
the topic entitled “Assessment of Factors Affecting Effective Performance of
Construction Projects in The Case of Projects of Ethiopian Construction Works
Corporation’’ under my supervision. This work is original in nature and it is
sufficient for submission for the partial fulfillment for the award of Degree of
Masters of Art in Project Management.
Adane Atara (PHD)
Signature ____________________
Date ________________________
TILAHUN II
ASSESSEMENT OF FACTORS AFFECTING PERFORMANCE OF

CONSTRUCTION PROJECTS, IN THE CASE OF ETHIOPIAN
CONSTRUCTION WORKS CORPORATION.
By: Tilahun Deneke
Approved by Board of Examiners:
Examiner: -----------------------------------Signature___________ Date_________
Examiner: -----------------------------------Signature__________ Date__________
Examiner: -----------------------------------Signature___________ Date_________
TILAHUN III
ACKNOWLEDGMENTS
First and for most, I would like to give my praise to the Almighty God for his
invaluable care and support throughout the course of my life.
Next, I would like to express my sincere gratitude to my advisor Adane Atara
(PHD) for his constructive comments, corrections and suggestion from the
beginning of this project work to the end.
My sincere gratitude also goes to the participants in my survey especially to the
head of department, directorate directors at consultant and client organization,
project manager and management teams of the project under study, who have
willingly shared their precious time during the process of filling questionnaire and
interviewing.
At last I would like to thank my Wife Debritu, who has supported me throughout
entire process, both by encouraging and motivating me to accomplish this study,
without her effort and contribution my present success would be unthinkable .
Tilahun Deneke
TILAHUN IV
ABSTRACT
The problem of success factors on the construction industry which results in delays of project is
considered to be a global phenomenon and the construction industry in Ethiopia is not
exceptional. The goal of all concerned agents involved in the construction projects (owners,
contractors, engineers and consultants) in either of the public or private sector is to successfully
complete the project on time, within budget, with the highest quality and in the safest manner.
Construction projects are frequently influenced by either success factors that help projects reach
their goal as planned or delay factors that terminate or postpone project completion.
The methodology adopted in this project work was, first, to undertake a literature survey of the
area. Then a questionnaire survey and an interview survey were employed for data gathering and
finalizing factors affecting the projects.
This study is considered to be influential for improving the effectiveness of project performance.
Performance can be assured by assessing, identifying and eliminating the factors that cause or
yield poor project outcomes. Thus, project managers need better understanding of success/failure
factors in order to take appropriate action.
The researcher employed a descriptive design to analyze the data collected from sample
respondents. The findings of this study can be used as a guideline to successfully handle similar
construction projects in the country.
Key words: project, project management, Project success, success factor, construction project.
TILAHUN V
ACCRONOMIES AND ABBREVATIONS

BA: Bachelor of Art
CEO: Chief Executive Officer
CSFs: Critical Success Factors
DBST: Double Bituminous Surface Treatment
ECWC: Ethiopian Construction Works Corporation.
ERA: Ethiopian Road Authority
ERP: Enterprise Resource Management
GDP: Gross Domestic Product
IBM: Information Modeling Technology
MA: Master of Arts
NPD: Plan Commission Data
PL: Profit and Loss

PM: Project Manager
PMBOK: Project Management Guide
SPSS: Statistical Package for Social Science
TILAHUN VI
Contents
List of Tables .................................................................................................................................. 0
Chapter one ..................................................................................................................................... 1
1. Introduction ............................................................................................................................. 1
1.1. Back ground of the study .............................................................................................. 1

1.2. Statement of the problem.............................................................................................. 2
1.3. Research Questions ...................................................................................................... 3
1.4. Objectives of the Study ................................................................................................ 4
1.4.1. General Objective ..................................................................................................... 4
1.4.2. Specific Objectives ................................................................................................... 4
1.5. Significance of the study .............................................................................................. 4
1.6. Scope of the Study ........................................................................................................ 5
1.7. Outline of the Thesis .................................................................................................... 5
Chapter Two ................................................................................................................................... 6
2. Overview of Ethiopian Construction Industry ........................................................................ 6
2.1. Background of Ethiopian Construction Works Corporation ........................................ 6

2.2. Construction Sector Development and its Economic Contribution in Ethiopia ........... 7
Chapter Three ................................................................................................................................. 9
3. Literature Review .................................................................................................................... 9
3.1.1. Definition of project .................................................................................................. 9

3.1.2. Definition of Project management .......................................................................... 10
3.1.3. Construction Project................................................................................................ 13
3.2. Problem of Construction Project Failure .................................................................... 14
3.3. Factors that Cause Project Failure are Important for Success .................................... 14
3.4. Factors of Project Management and Project Success ................................................. 18
3.4.1. Key Factors of Project Management....................................................................... 18
3.4.2. Project Success Criteria .......................................................................................... 22
3.4.3. Success Factors Influencing Project Performance .................................................. 22

3.4.4. Cost and schedule overrun of projects .................................................................... 32
3.5. Conceptual Framework .............................................................................................. 33
3.6. Empirical Review ....................................................................................................... 35
Chapter Four ................................................................................................................................. 38
4. Research Methodology .......................................................................................................... 38
4.1. Introduction ................................................................................................................ 38

4.2. The Research Design .................................................................................................. 38
4.3. Sampling Design ........................................................................................................ 39
4.4. Process of data collection ........................................................................................... 40
4.5. Assessment Tools ....................................................................................................... 40
4.6. Methods of Data Analysis .......................................................................................... 41
4.7. Validity and Reliability of the Study .......................................................................... 42
4.8. Ethical Consideration ................................................................................................. 43
Chapter Five .................................................................................................................................. 44
5. Data Presentation, Analysis and Interpretation ..................................................................... 44
5.1. Introduction ................................................................................................................ 44

5.2. Characteristics of Sample Respondents...................................................................... 44
5.3. Demographic Profiles of Respondents ....................................................................... 44
5.4. Descriptive Analysis and Discussions ........................................................................ 46
5.5. Data analysis Approach .............................................................................................. 47
5.6. Scope Change Management ....................................................................................... 47
5.7. Factors affecting performance of construction projects ............................................. 51
5.8. Profit and loss trend in road projects. ......................................................................... 61
5.9. Profit and loss trend in Building projects. .................................................................. 63
5.10. Profit and loss trend in water projects. ....................................................................... 65
5.11. Resources management .............................................................................................. 69
5.12. Favorable working condition ...................................................................................... 70
5.13. Project Monitoring, evaluation and feedback ............................................................. 71
5.14. Communication management of projects ................................................................... 72
5.15. Client Support ............................................................................................................. 73

5.16. Consultant relationship ............................................................................................... 74
5.17. Project manager .......................................................................................................... 75
5.18. Team management...................................................................................................... 76
6. Summary Conclusion and Recommendation ........................................................................ 78
6.1. Conclusions and Recommendation. ........................................................................... 78

6.2. Recommendations ...................................................................................................... 84
7. References ............................................................................................................................. 85
Annex 1. Questioner.................................................................................................................. 91
Annex 2. Names of Projects in Each Sector. .............................................................................. 101
Annex 3. Interview Questions .................................................................................................... 102

List of Tables
Table 1 - Growth Rate of GDP by Construction Activity

Table 2 - Reliability analysis for success factors under study
Table 3 - Demographic Characteristics’ of Respondents
Table 4 - Contract Amendments in different Projects
Table 5 - Knowledge of overall Project goals (objectives)
Table 6 - Time Extension of Projects
Table 7 - Schedule performance of projects since 2009E.C
Table 8 - Customer (end users of the project) satisfaction
Table 9 - Safety and health management
Table 10 - Technical task (competency)
Table 11 - Initial cost estimate
Table 12 - Profit & Loss Statement
Table 13 - Top management support
Table 14 - Project planning and scheduling
Table 15 - Resources management
Table 16 - Favorable working condition
Table 17 - Monitoring, evaluation and feedback
Table 18 - Communication Management
Table 19 - Client support
Table 20 - Consultant
Table 21 - Project manager
Table 22 - Team
Table 23 - Turnover data of Employees
Chapter one
1. Introduction
1.1. Back ground of the study
Project is a complex, non-routine, one-time effort limited by time, budget and resource and
performance specifications designed to meet customer needs (Arslan, G. et al., 2009). A
construction project is completed through a combination of many events and interactions,
planned or unplanned, over the life of a facility, with changing participants and processes in a
constantly changing environment. An examination of the relevant recent literatures indicates that
construction projects are usually completed with large cost overruns, extended schedules and
quality concerns. Since the outcomes of the capital projects have strategic implications on the
success and profitability of the business, the ability to deliver based on pre-determined objectives
should be critical to the company's success. Project success can be defined as meeting the
required expectation of the stakeholders and achieving its intended purpose. Success criteria or a
person's definition of success as it relates to construction often changes from project to project
depending on participants, scope of services, project size, sophistication of the owner related to
the design of facilities, technological implications, and a variety of other factors [Arslan, G.,
Kivrak S, 2009].
Project success requires creating a well-planned project schedule as well as understanding of the
key success factors also. It helps the project manager and the stakeholders to take the right
decisions and act towards the project success. Most popular CSF’ accepted by research
community are-project mission, top management support, project schedule/plan, client
consultation, personnel, technology to support the project, client acceptance, monitoring and
feedback, channels of communication, troubleshooting expertise [Munns, A. K., and Bjeirmi, B.
F., 1996]. Quality can be assured by identifying and eliminating the factors that cause poor
project performance. The study of project success and critical success factors (CSFs) is often
considered as one of the vital ways to improve the effectiveness of project delivery. Successful
construction projects greatly depend on how the project has been managed and controlled. This
study is focuses on define project success criteria, clarify their difference with success factors,
TILAHUN DENEKE Page 1

analyze their importance in project management methodology and come up with a

comprehensive list of critical factors that might affect project outcome. The study of project
success/failure and critical success factors (CSFs) is a means of understanding and thereby
improving the effectiveness of construction projects.
Since the outcomes of the capital projects have strategic implications on the success and
profitability of the business, the ability to deliver based on pre-determined objectives should be
critical to the company's success. Project success can be defined as meeting the required
expectation of the stakeholders and achieving its intended purpose. Success criteria or a person's
definition of success as it relates to construction often changes from project to project depending
on participants, scope of services, project size, sophistication of the owner related to the design
of facilities, technological implications, and a variety of other factors.
The purpose of this study is therefore to systematically examine the success factors for the
performance of construction projects, the causes of project failure and how these can be
prevented, managed, or controlled.
1.2. Statement of the problem
According to Salleh, R. (2009), Preliminary study on Critical Success Factors (CSFs) and the
relationship between various attributes are essentially needed in identifying the project success.
The important critical success factors will have direct impact on a construction project. All
industries now a day are dynamic and the construction industry is not excluded. In fact,
construction projects involve in one of the most vibrant and complex environments. The
increasing of uncertainties in technology, budget and development process create a dynamic
construction industry.
In Ethiopian construction works corporation (ECWC) there is no clearly determined project

success factors that agreed among all influential stakeholders and internal staffs. And hence, for
every finished construction project in ECWC, a number of deficiencies or delays (time over run
and over budget is the norm in the performance of construction projects) occur, and continue to
occur. Occasionally, new problems develop and despite efforts to implement success factors,
these problems have persisted. These problems were observed in the status of high rate of

dissatisfaction among clients as well as internal staff in the performance of construction project.
There are many reasons mentioned which contributed to the above problems. Some of the
problems are lack of having common goals and objectives between the staff of the head office
and the project, shortage of cash flow, shortage of foreign currency resulted in delay of imported
materials, lack of quick response in terms of procurement and logistics’, poor project monitoring
and evaluation and etc. All these and other not mentioned problems emanated from lack of clear
success factors for the performance of projects. The practice of the project management of the
corporation showed that poor performance and poor integration management of projects.
While a body of research exists that identifies major causes of project delay and further literature
identifies a range of success factors, no research was found to exist which illustrated the success
factors for the performance of construction projects in Ethiopia, and how knowledge of this may
allow the delivery of more successful projects. This study is also the first to assess success
factors for the performance of construction projects based on the success factors considered
similar for most projects and agreed by many authors regardless of the type of the project and
organizational structure in order to help project parties minimize construction project problems.
Constructions projects are frequently influenced by success factors’ which can help project
parties reach their desired goals with greater efficiency. These gaps in the research have
motivated the current study. Therefore, this study is helpful to identify many success factors that
influence project success and to find out the factors that contribute a lot for successful
performance of projects in the projects of the corporation.
1.3. Research Questions
To operationalize the above-mentioned research problems and objectives, the following key
research questions are posed:
o What are the factors that affect the performance of construction projects in the
Ethiopian construction works corporation?
o How about the up to date performance of construction projects in terms of
cost and schedule?

o What are the problems or factors for cost and schedule over run of the
projects?
1.4. Objectives of the Study
1.4.1. General Objective

The main goal of this project work is to investigate and pinpoint critical factors for effective
performance of construction projects.
1.4.2. Specific Objectives

Specifically, this study tries to assess critical factors for the effective performance of
construction projects and find out which factors are most critical to the success of the project. In
addition, the study further
o Identifies the factors for performance of projects in the corporation.

o Reviews the performance of projects against already established success
criteria.
o Evaluate project monitoring, evaluation and feedback practice of the
corporation.
o Identifies the reasons for cost and schedule overrun of projects.
1.5. Significance of the study
This paper presents initial findings of a study designed to detail the relationships among the
factors in the construction project which relate to project effectiveness. In the paper, emphasis is
placed on delineating those factors which tend to improve and those which tend to impede
project effectiveness.
Moreover, the study is beneficial to project managers, consultants, personnel who may involve in
such construction project by identifying which factors determine the success or failure of the
project. Also, the results of the study will have great importance in assisting construction project
companies to identify which success factors are critical in construction projects. The findings of
the study also help the policy makers, planners, researcher, as an input for further investigation.

1.6. Scope of the Study
Hence, the scope of the study was limited and only confined to the assessment of factors for
performance of construction projects in the case of Ethiopian Construction Works Corporation
(ECWC). In this study the researcher only tries to examine factors that are considered common
regardless of the project type and organizational structure after reviewing the works of many
related literatures of the topic of interest.
1.7. Outline of the Thesis
In order to realize the above aims, the structure of this thesis paper is organized into the
following six chapters:
Chapter one discusses with the introduction part which includes background of the study,
statement of problems, objectives, key research questions, significance of the study and scope
and limitation of the study.
Chapter two gives a background on the Ethiopian Construction Works Corporation in general. It
reviews Construction Sector Development and its Economic Contribution in Ethiopia, and
identifies the characteristics of the construction industry. This chapter also outlines the practice
of project management in the Ethiopian construction industry.
Chapter three presents a review of related literatures by providing definitions and concepts of
terms, briefly reviews the theoretical literatures related to the topic, discusses on the empirical
issues on the effectiveness of projects from different perspectives and discusses on linkages in
the literature of previous studies.
Chapter four centers on the methodology of the study, discusses on the research design, data
sources, techniques of analysis employed.
Chapter five explains and discusses descriptive statistics, that is, and comparison of objectives
with the results of the study; and
Chapter six provides the conclusion, policy implications/recommendations, and suggestions for
further study

Chapter Two
2. Overview of Ethiopian Construction Industry
2.1. Background of Ethiopian Construction Works Corporation
Ethiopian Construction Works Corporation (ECWC) is a public enterprise which is established

on December 18/2015 based on Council of Ministers Regulation No. 366/2015 with the
authorized capital of Birr 20,313,608,143.90. The corporation is a result of the amalgamation of
three formerly independent public enterprises, namely the Ethiopian Road Construction
Corporation, the Ethiopian Water Works Construction Enterprise and the Ethiopian Prefabricated
Building Parts Production Enterprise.
ECWC is governed by the Public Enterprises Proclamation No.25/1992. Its supervising authority
has given to the then Ministry of Public Enterprises / currently and its policy-making body is the
Board of the Corporation whose members are appointed by the government selected from
different organizations.
Ethiopian Construction Works Corporation has six different sectors which take different
operational activities and responsibilities. The head office of the corporation is located in Addis
Ababa, around Gurd-shola. It is headed by a Chief Executive Officer (CEO) and six Deputy
Chief Executive Officers and department and project heads. Basically, the corporation
undertakes different types of construction projects in different regions of the country which
basically includes Water Infrastructure & Irrigation-Dams-Deep Water wells Construction,
Transport Infrastructure Construction and Building Infrastructure Construction. Its Core Services
are further elaborated as Surface and subsurface water supply development, Clean water supply
and sewerage infrastructure, Sewage and effluent treatment, Dam and irrigation construction,
River diversions, Deep water wells, Reclamations, Dry port construction and other civil works ,
Road construction, upgrading and maintenance, Bridges construction and maintenance, Rail
ways construction and maintenance, Construction of air fields and other civil works,
Conventional building construction, and finishing works, Pre-fabricated building construction
works, Production of Pre-fabricated building parts, PVC frames, precastbims, and stone and
other wood products.

2.2. Construction Sector Development and its Economic Contribution in Ethiopia
The Ethiopian construction sector has shown a remarkable growth and is given high prominence.
The role the construction industry plays in socioeconomic development is significant. It provides
the basis upon which other sectors can grow by constructing the physical facilities required for
the production and distribution of goods and services. The construction industry has a significant
multiplier effect on the economy as a whole.
The inter relationship between the construction industry and the broader economy largely
emanates from three of the industry’s characteristics namely:
1. The public sector is its major client;

2. It’s large size, ability to produce investment or capital goods which contribute
significantly to national GDP; and
3. It is a major source of employment, directly and indirectly by its multiplier effect.
Public construction projects in Ethiopia are parts of the country’s development initiative. It
shared considerable amount of the country’s scarce financial resources. In Ethiopia, the
construction industry is the highest recipient of government budget in terms of government
development program. It plays important role in contributing to economic growth of the country
and creation of employment opportunities. According to the GDP data obtained from the
Planning and Development Commission of Ethiopia, the contribution of the sector for economic
growth has been great and large. The ten years data showed that the sector contributed to
economic growth of the country with minimum of 10.9 % in the year 2009/10 and maximum of
38.7% in the year of 2012/13.

Table 1: Growth Rate of GDP by Construction Activity at Constant Prices

(2008 EFY Base year series)
Fiscal Year Contribution (%)
2008/09 11.7
2009/10 10.9
2010/11 12.8
2011/12 31.5
2012/13 38.7
2013/14 23.9
2014/15 31.6
2015/16 25.0
2016/17 20.7
2017/18 15.7
Source: Own Compilation from NPDC, 2019

Chapter Three
3. Literature Review
In this paper, I review some of the recent literatures on factors that lead to projects successful,
focusing on construction projects. First, I try to brief with definitions and concepts of terms,
review the problem of construction project failure, and then look at factors that cause project
failure and are therefore important for success, followed by a more in depth review of
areas/factors that contribute to success.
Definitions and Concepts of Terms
3.1.1. Definition of project

Many project management scholars define what a project is. However for this study I have very
interested with definition of projects given by Project Management Institute Guide of PMBOK.
A project, according to the PMBOK® Guide, defined as a temporary endeavor undertaken to
create a unique product, service, or result. Projects are undertaken to fulfill objectives by
producing deliverables. An objective is defined as an outcome toward which work is to be
directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a
product to be produced, or a service to be performed.
Projects are temporary, but their deliverables may exist beyond the end of the project. Projects
may produce deliverables of a social, economic, material, or environmental nature.
International Project Management Association define project as followed, “A project is a time
and cost constrained operation to realize a set of defined deliverables up to quality standards and
requirements.”(International Project Management Association, 2006).
A project is a unique, transient endeavor, undertaken to achieve planned objectives, which could
be defined in terms of outputs, outcomes or benefits. (Association for Project Management,
2012.)
A project is an endeavor in which human, financial, and material resources are organized in a
novel way to undertake a unique scope of work, of given specification, within constraints of cost
and time, so as to achieve beneficial change defined by quantitative and qualitative objectives. (J.
Rodney Turner, 1999.)

Projects are most often unique endeavors that have not been attempted before and might never be
attempted again. Projects have specific start and end dates. In some cases, projects may be very
similar or identical and repetitive in nature, but those situations would be an exception rather
than the norm. (Kerzener, 2010)
A project is any undertaking that has definite, final objectives that represent specified values to
satisfy some need or desire. It is normally characterized by limitations placed on time, cost, and
resources such as people, skills, equipment, and materials. A project is a cluster of activities that
is relatively separate and clear cut. It has a distinct mission and a clear termination point. A
project might be a part of a broader program, yet its main theme lies in identifying a nice, neat
work package within a bewildering array of objectives, alternatives, and activities. (Vijay K.
Verma, 1995)
3.1.2. Definition of Project management
Project management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements. Project management is accomplished through the
appropriate application and integration of the project management processes identified for the
project. Project management enables organizations to execute projects effectively and efficiently.
Effective project management helps individuals, groups, and public and private organizations to:
Meet business objectives; Satisfy stakeholder expectations; Be more predictable; Increase
chances of success; Deliver the right products at the right time; Resolve problems and issues;
Respond to risks in a timely manner; Optimize the use of organizational resources; Identify,
recover, or terminate failing projects; Manage constraints (e.g., scope, quality, schedule, costs,
resources); Balance the influence of constraints on the project (e.g., increased scope may
increase cost or schedule); and Manage change in a better manner. Poorly managed projects or
the absence of project management may result in: Missed deadlines, Cost overruns, Poor quality,
Rework, Uncontrolled expansion of the project, Loss of reputation for the organization,
unsatisfied stakeholders, and Failure in achieving the objectives for which the project was
undertaken. Effective and efficient project management should be considered a strategic
competency within organizations. It enables organizations to: Tie project results to business
goals, compete more effectively in their markets, Sustain the organization, and Respond to the

impact of business environment changes on projects by appropriately adjusting project

management plans (PMBOK® Guide, 2017.)
According to Turner (2019) the five core functions of project management can be explained as
follows:
1. The project entails work, and that scope of work must be managed.
2. We assemble the resources into a temporary organization which must be managed.
3. In order to deliver the desired benefit, the asset must function in certain ways, and at
required levels of performance. Therefore, the performance, or quality, of the asset must
be managed. But to deliver a quality asset the work of the project must also meet certain
quality standards. Quality needs to be managed.
4. In order for the project to be of value to both the client and contractor, it must cost less
than the value of the benefit. Thus, cost needs to be managed. This involves managing the
consumption of all resources, including people and material, not just money.
5. Time needs to be managed for several reasons. In order for the work of the project to take
place effectively and as efficiently as possible, the input of the various resources needs to
be coordinated. Also, there will be a time value associated with the benefit from the asset.
The later it is delivered, the less its value, so the timing of the work needs to be managed
to deliver the asset within a time frame that will give the desired benefit.
A Knowledge Area is an identified area of project management defined by its knowledge
requirements and described in terms of its component processes, practices, inputs, outputs, tools,
and techniques. Although the Knowledge Areas are interrelated, they are defined separately from
the project management perspective. The ten Knowledge Areas are:
1. Project Integration Management. Includes the processes and activities to identify,
define, combine, unify, and coordinate the various processes and project management
activities within the Project Management Process Groups.
2. Project Scope Management. Includes the processes required to ensure the project
includes all the work required, and only the work required, to complete the project
successfully.
3. Project Schedule Management. Includes the processes required to manage the timely
completion of the project.
4. Project Cost Management. Includes the processes involved in planning, estimating,

budgeting, financing, funding, managing, and controlling costs so the project can be
completed within the approved budget.
5. Project Quality Management. Includes the processes for incorporating the
organization’s quality policy regarding planning, managing, and controlling project and
product quality requirements, in order to meet stakeholders’ expectations.
6. Project Resource Management. Includes the processes to identify, acquire, and manage
the resources needed for the successful completion of the project.
7. Project Communications Management. Includes the processes required to ensure
timely and appropriate planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and ultimate disposition of project information.
8. Project Risk Management. Includes the processes of conducting risk management
planning, identification, analysis, response planning, response implementation, and
monitoring risk on a project.
9. Project Procurement Management. Includes the processes necessary to purchase or
acquire products, services, or results needed from outside the project team.
10. Project Stakeholder Management. Includes the processes required to identify the
people, groups, or organizations that could impact or be impacted by the project, to
analyze stakeholder expectations and their impact on the project, and to develop
appropriate management strategies for effectively engaging stakeholders in project
decisions and execution. The needs of a specific project may require one or more
additional Knowledge Areas, for example, construction may require financial
management or safety and health management. (PMBOK® Guide, 2017)
Successful project management can then be defined as achieving a continuous stream of project
objectives within time, within cost, at the desired performance/technology level, while utilizing
the assigned resources effectively and efficiently, and having the results accepted by the
customer and/or stakeholders. Because each project is inherently different and each customer can
have different requirements, the activities included within the process groups may change from
project to project. (Kerzner, 2017)

Projects are a key way to create value and benefits in organizations. In today’s business
environment, organizational leaders need to be able to manage with tighter budgets, shorter
timelines, scarcity of resources, and rapidly changing technology. The business environment is
dynamic with an accelerating rate of change. To remain competitive in the world economy,
companies are embracing project management to consistently deliver business value.
3.1.3. Construction Project
Construction is an act or a process of constructing. It consists of a series of actions to produce
either a new set of buildings and infrastructure or may involve alterations in the existing
buildings and infrastructure (Radosavljevic and Bennett 2012). A construction project is a part of
construction work that is being attempted or undertaken. A project involves a series of complex
or interrelated activities and tasks that consume resources to achieve some speciﬁc objectives. It
has to be completed within a set of speciﬁcations under a limited budget (Munns and Bjeirmi
1996; Pinto and Slevin 1988).
There are numerous challenges and problems facing the construction industry all over the world.
Construction projects are famous for being over budget, late and burdened with scope creep.
Many of the problems facing the construction industry are delays, over budgeting and poor
quality. The traditional construction management approach has been effective in solving some of
these problems. The Construction Management has been defined as the overall planning of a
project by allocating the appropriate resources to finish the project on time, at budget and at
targeted quality. “Scope triangle “which illustrates the relationship between the three tradeoffs
in a project cost, time & quality. Successful project management can be achieved by bringing
together the tasks and resources necessary to accomplish the project objectives and deliverables
within the specified time constraints and within the planned budget. (Marwa Gamal Swefie Fall,
2013).
Construction industry is complex in nature because it contains large number of project parties as
clients, consultants, contractors, stakeholders, shareholders and regulators. The complexity and
fragmented nature of the industry and its highly casual employment of labor makes it sensitive to
poor contract performance. (Helen, et, al, 2015).
The successful completion of a project results in the organization moving to the future state and
achieving the specific objective. A project is usually deemed to be a success if it achieves the

objectives according to their acceptance criteria, within an agreed timescale and budget”
(Association for Project Management, 2012). Projects are initiated to realize business
opportunities that are aligned with an organization’s strategic goals. Prior to initiating a project, a
business case is often developed to outline the project objectives, the required investment, and
financial and qualitative criteria for project success.
3.2. Problem of Construction Project Failure
A large percentage of construction projects fail. In the U.S., between 65% and 80% of
construction projects fail by either: (1) failing to meet their stated objectives, (2) running
significantly late, or (3) costing far more than planned, or some combination of these three issues
(Miller, 2013; Kaminsky, 2012). The definition of a failed project in that estimate – a project that
fails significantly in the areas of scope/purpose, time and/or cost – is a common one. Some other
definitions of failure that are sometimes used include failure to satisfy the customer and failure to
improve the business.
Failed construction projects are a problem because they drain resources. They can be a financial
burden that causes financial issues for companies.
There is a lot of interest in why some projects fail and others succeed, including the reasons or
drivers of project success. Many believe project management is most important since the role of
the project manager is overall management of the project, including management of the team so
that it functions appropriately and performs well. Some other factors that determine project
success are the skill of the project team, process followed on the project, and whether there are
established, tried-and-true ways or technology to accomplish the work (i.e. the level of difficulty
of the project).
3.3. Factors that Cause Project Failure are Important for Success
Some research looked at areas/factors that cause project failure, which provide insight into
factors that would contribute to project success. There is a lot of research on causes of
construction project failure.

Scope definition and control were major issues in the failed construction projects. I found a
recent journal article that looked at the significance of scope in project failure and success. The
article by Mirza, Pourzolfaghar, and Shahnazari (2013) reports that poor scope definition is a
very significant contributor to project failure and that proper scope definition is important for
project success. The scope outlines the work to be completed to meet objectives. The scope
directs the efforts of the team and is used when making decisions throughout the project. If the
scope is not well defined upfront (by failing to include the right stakeholders in scope
discussions, determine requirements, and prepare a clear, well-defined scope document), there
will be the need to adjust or add to the scope later to deliver a product/outcome that satisfies
stakeholders’ needs. In other cases, stakeholders may change their minds about what they want
or think of new things that they want during the project.
Anthopoulos, Reddick, Giannakidou, and Mavridis (2016) investigated the reasons for e-
government project failures using the highly publicized failure of the e-government Health care
government project in the United States as a case study. A literature review provided actual
reasons for past e-government project failures from which the researchers developed a
taxonomy. The literature indicated that failures were due to: design-reality gaps (concern hard-
soft gaps, private-public gaps, and country context gaps), missing focus (insufficient information
on business need or objectives), content issues (scope problems along with changing
requirements), skill issues (inadequate skills of project team), execution issues, regulatory issues,
external factors, and missing user satisfaction (projects do not meet users’ expectations and
products not useful for public use). In addition to the reasons for failure, the researchers
compiled failure factors: organizational power (organization structure and relations), politics,
education, project management issues, ambiguous business needs and unclear vision, security
and privacy, finance and operational cost estimates, and ICT and system development process
(data, infrastructure, compatibility, and information management). Five of the 8 reasons for
failure from the taxonomy applied to the Healthcare.gov project: design-reality gaps (overall
planning unrealistic), missing focus, content issues (requirements changed and there was
technical complexity), skill issues, and execution issues (unrealistic scheduling). Project
management failure was the issue or root cause for most of the failure reasons – project
definition was insufficient, there was unrealistic scheduling, and the complexities of the website
required more attention and skill. The top failure factor was also project management because of
ineffective project/scope definition. Four of the 8 factors from the taxonomy applied. The
researchers noted relationships between failure reasons and failure factors: execution (unrealistic
scheduling) and content issues (technical complexity) triggered the corresponding failure factor
ineffective project management, which impacted the establishment of realistic deadlines and
successful risk analysis during planning (Anthopoulos, Reddick, Giannakidou, & Mavridis,
2016, p. 157). The factor ineffective project management was accompanied by ICT reasons such
as data and complexity and by unsuccessful monitoring and measurement (falls under project
management issues).
One problem with available reasons for project failure is the inclusion of reasons/factors that are
symptoms of another (Arias et al. 2012; Stoica & Brouse, 2013). Arias et al. (2012) noted that
there are relationships between the reasons for the failure of software development projects
provided by the latest Standish Group report published in 1995 as well as items/causes in the list
that are symptoms of others.
Charles O’Neil, (2019) identified 35 common causes of project failure: 20 arising from actions
taken during the creation of a project, the tendering, bidding and pre-contract phase of projects;
and 15 post-contract ones arising during detailed design, construction, commissioning and
transition to operations. All these causes of failure are related to shortcomings in management in
one way or another and always involve human input. These shortcomings are mostly at senior
level: the principle stakeholders, including the client, the Bid team, design consultants, project
and construction managers and services contractors. The common element is invariably the
human input and not the technical processes. Generally, though, failure is referred to in terms of
cost over-runs and program blow-outs for various reasons and these causes of failure are
analyzed and explained to clients, owners and shareholders ad nauseam.
Finally, the researcher concluded by suggesting the remedies to overcome the project failure. By
stating that if control and reporting is efficient and up to scratch all the time then properly
informed decisions and mitigation should substantially reduce the risk of major failure.

The project manager’s definition might be just not meeting the competing constraints criteria.
Stakeholders, in contrast, might seem more interested in business value than the competing
constraints once the project actually begins. Here are some stakeholders’ perceptions of failure:
• The project has become too costly for the expected benefits or value.
• The project will be completed too late.
• The project will not achieve its targeted benefits or value.
• The project no longer satisfies the stakeholders’ needs
According to Harold Kerzner (2017), there are numerous causes of project failure. Some of the
causes are quite common in specific industries like in information technology, whereas others
can appear across all industries. As per his explanation the following once are mentioned as a
generic list of common causes of failure: end user stakeholders not involved throughout the
project, minimal or no stakeholder backing - lack of ownership, weak business case, corporate
goals not understood at lower organizational levels, plan asks for too much in too little time, poor
estimates and projections, especially financial, unclear stakeholder requirements, passive user
stakeholder involvement after handoff, unclear expectations, unrealistic assumptions, if they
exist at all, plans based on insufficient data, no systemization of the planning process, planning
performed by a planning group, inadequate or incomplete requirements, lack of resources,
assigned resources lack experience, staffing requirements not fully known, constantly changing
resources, poor overall project planning, changed enterprise environmental factors, causing
outdated scope, missed deadlines and no recovery plan, exceeded and out-of-control budgets,
lack of re-planning on a regular basis, lack of attention to the human and organizational aspects
of the project, best-guess project estimates not based on history or standards, not enough time
provided for proper estimating, ignorance of the exact major milestone dates or due dates for
reporting, team members working with conflicting requirements, people shuffled in and out of
the project with little regard for its schedule, poor or fragmented cost control, stakeholders use
different organizational process assets, (which may be incompatible with the assets of project
partners, weak project and stakeholder communications, poor assessment of risks if done at all,
wrong type of contract, poor project management; team members, especially virtual ones,

possess, a poor understanding of project management, technical objectives more important than
business objectives).
These causes of project failure can be sorted into three broad categories:
1. Management mistakes: These are the result of a failure in stakeholder management,

perhaps by allowing too many unnecessary scope changes, failing to provide proper
governance, refusing to make decisions in a timely manner, and ignoring the project
manager’s requests for help. These mistakes also can be the result of wanting to
gold-plate the project, which is the result of not performing project health checks.
2. Planning mistakes: These are the result of poor project management, perhaps not
following the principles stated in the PMBOK®Guide, not having a timely kill
switch in the plan, not planning for project audits or health checks, and not selecting
the proper tracking metrics.
3. External influences: These are normally failures in assessing the environmental
input factors correctly. Environmental input factors include the timing for getting
approvals and authorization from third parties and a poor understanding of the host
country’s culture and politics.
3.4. Factors of Project Management and Project Success
3.4.1. Key Factors of Project Management

According to Turner (2019) the five core functions of project management can be explained as
follows:
1. The project entails work, and that scope of work must be managed.
2. We assemble the resources into a temporary organization which must be managed.
3. In order to deliver the desired benefit, the asset must function in certain ways, and at
required levels of performance. Therefore, the performance, or quality, of the asset must
be managed. But to deliver a quality asset the work of the project must also meet certain
quality standards. Quality needs to be managed.

4. In order for the project to be of value to both the client and contractor, it must cost less
than the value of the benefit. Thus, cost needs to be managed. This involves managing the
consumption of all resources, including people and material, not just money.
5. Time needs to be managed for several reasons. In order for the work of the project to take
place effectively and as efficiently as possible, the input of the various resources needs to
be coordinated. Also, there will be a time value associated with the benefit from the asset.
The later it is delivered, the less its value, so the timing of the work needs to be managed
to deliver the asset within a time frame that will give the desired benefit.
A Knowledge Area is an identified area of project management defined by its knowledge
requirements and described in terms of its component processes, practices, inputs, outputs, tools,
and techniques. Although the Knowledge Areas are interrelated, they are defined separately from
the project management perspective. The ten Knowledge Areas identified are:
1. Project Integration Management. Includes the processes and activities to identify,

define, combine, unify, and coordinate the various processes and project management
activities within the Project Management Process Groups.
2. Project Scope Management. Includes the processes required to ensure the project
includes all the work required, and only the work required, to complete the project
successfully.
3. Project Schedule Management. Includes the processes required to manage the timely
completion of the project.
4. Project Cost Management. Includes the processes involved in planning, estimating,
budgeting, financing, funding, managing, and controlling costs so the project can be
completed within the approved budget.
5. Project Quality Management. Includes the processes for incorporating the organization’s
quality policy regarding planning, managing, and controlling project and product quality
requirements, in order to meet stakeholders’ expectations.
6. Project Resource Management. Includes the processes to identify, acquire, and manage
the resources needed for the successful completion of the project.

7. Project Communications Management. Includes the processes required to ensure timely

and appropriate planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and ultimate disposition of project information.
8. Project Risk Management. Includes the processes of conducting risk management
planning, identification, analysis, response planning, response implementation, and
monitoring risk on a project.
9. Project Procurement Management. Includes the processes necessary to purchase or
acquire products, services, or results needed from outside the project team.
10. Project Stakeholder Management. Includes the processes required to identify the
people, groups, or organizations that could impact or be impacted by the project, to
analyze stakeholder expectations and their impact on the project, and to develop
appropriate management strategies for effectively engaging stakeholders in project
decisions and execution.
The needs of a specific project may require one or more additional Knowledge Areas, for
example, construction may require financial management or safety and health management.
(PMBOK® Guide, 2017)
There has been a lot of research on the role of project leadership or project management (PM) on
project success. Successful project management can then be defined as achieving a continuous
stream of project objectives within time, within cost, at the desired performance/technology
level, while utilizing the assigned resources effectively and efficiently, and having the results
accepted by the customer and/or stakeholders. Because each project is inherently different and
each customer can have different requirements, the activities included within the process groups
may change from project to project (Kerzner, 2017).
Projects are a key way to create value and benefits in organizations. In today’s business
environment, organizational leaders need to be able to manage with tighter budgets, shorter
timelines, scarcity of resources, and rapidly changing technology. The business environment is
dynamic with an accelerating rate of change. To remain competitive in the world economy,
companies are embracing project management to consistently deliver business value.

Research by Mir and Pennington (2014) mentioned above found that Lifecycle Management
Processes, an enabler of high project management performance, explained around 30% of the
variation in project success and had a positive relationship with project success.
I selected Mir and Pennington (2014) because it is a recent paper that shows statistically that the
performance of the project manager is important for project success. The researchers developed
three propositions and seven hypotheses on the relationship between project management and
project success. These propositions and hypotheses all stated a positive relationship between
project management (performance of the project manager as well as five enablers of high project
manager performance from the Project Management Performance Assessment (PMPA): PM
Leadership, PM Staff, PM Policy and Strategy, PM Partnerships and Resources, and Project Life
Cycle Management Process, and one additional area in the PMPA: PM Key Performance
Indicators) and project success (overall project success and then the individual success elements:
project efficiency, impact on the customer, impact on the team, business success, and preparing
for the future). The study sample included professionals working in UAE organizations who
were asked to complete a questionnaire. Regression analysis found that project manager
performance explained 44.9% of the variation in project success with a positive relationship
between project manager performance and project success (indicated by a β of 0.672). Mir and
Pennington noted that this result was consistent with previous research, specifically Din et al
(2011), Stefanovic (2007), and Stefanovic and Shenhar (2007). The next significant explanatory
variable was management of Key Performance Indicators (KPIs), which explained 33.4% of the
variation in project success and had a positive relationship with project success. This result was
also consistent with project management literature, which advocates defining the targets and
using measures (performance indicators) to achieve desired results. Variables PM Staff, PM
Leadership, and PM Lifecycle Management Processes individually explained around 30% of the
variation in project success and each had a positive relationship with project success. The
research by Mir and Pennington corroborated findings of previous research on the contribution
of PM staff and their training as well as PM Leadership to project success. There were many
more significant findings. One more is: the PM performance variables explain more of the
variation in (the success element) Impact on Project Team more than any other success element.
This means that project performance (or the perception of project success) can have a major
impact on project teams, motivating the team and increasing commitment to the project.
Performance variables such as management of PKIs and PM Leadership influence the
engagement of teams.
3.4.2. Project Success Criteria

Project success factors are elements of the project or its management that can be influenced to
increase the chance of achieving a successful outcome. The reverse, pitfalls, are management
mistakes which increase the chance of failure (J. Rodney Turner, 1999).
Turner further stated that there are two components of project success:
1. Success criteria: The dependent variables by which we will judge the successful outcome
of the project.
2. Success factors: The independent variables which will influence the successful
achievement of the success criteria.
In order for a project to be successful, you must agree the success criteria with all the key
stakeholders before you start. This is a necessary condition for project success, not a sufficient
condition; unfortunately, there is nothing that will guarantee project success. To meet this
condition, you must make an attempt to identify who most of the key stakeholders are. There are
several reasons why it is important to agree the success criteria before you start, including:
• You want everybody to have the same vision of the end point of the project. If people
have been working towards different end points, even inadvertently, it is impossible to
pull them all together at the end.
• You want everybody to be applying the same success factors, following the same project
strategy, and following the same road to its successful achievement. You don’t want the
project team members all chasing off in different directions.
• Even quite small differences in interpretation of the success criteria can lead to quite
different outcomes, even down to whether you treat time, cost, or quality as more
important.
3.4.3. Success Factors Influencing Project Performance
Various project success factors have been identified in different projects around the world.
Community involvement, project objectives, technical innovation, uncertainty, politics, schedule

duration urgency, financial contract, legal factors and implementation process were established
as the critical success factors in projects (Morris and Hughes, 1987). Shamas-ur-Rehman and
Ogunlana (2009) studied in critical success factors in large scale construction projects in
Thailand. Their study emphasized that success factors vary across various projects. Their
findings revealed project planning and control, project personnel and involvement of client as
critical factors influencing project success. Ann et al. (2006) in their study, investigated on CSFs
in construction project briefing. Briefing process is prerequisite to achieving success in project
performance. This process involves the interpretation of clients’ actual views and requirements
to project participants. Their study considered open and effective communication, clear and
precise briefing documents, clear intention and objectives of client and clear project goal and
objectives as critical success factors. Ugwu et al. (2007) identified nine top critical success
factors that would act as enablers for successful implementation of ICT projects in construction
as cost of development, top management support, availability of appropriate tools, development
team knowledge and understanding of construction processes, ease applications, clear definition
and understanding end user, clear communication, standardization issues and change
management of organization level. Marterella (2007) reviewed over 50 business processes and
disclosed eight critical sales success factors influencing business performance as selection,
performance management, skills assessment, defined solution offerings, demand creation,
qualifying, proposal clarity and existing client expansion. Park (2009) investigated a set of ten
common factors and 188 individual factors influencing whole life performance of South Korean
projects.
The study was focused on identifying the most critical individual factor in each common factor.
The result identified the following individual factors in each common factor; clarity of contract,
fixed construction period, precise project budget estimate, material and quality, mutual and
trusting relationships, leadership and team management, then finally management of work safety
on site.
The study of project success and the critical success factors (CSFs) is considered to be a mean
for improving the effectiveness of project. Performance can be assured by identifying and
eliminating the factors that cause poor project outcomes. Thus, project managers need better

understanding of critical success/failure factors and how to measure them. Constructions projects
are frequently influenced by success factors’ which can help project parties reach their intended
goals with greater efficiency. Many critical success factors such as factors related to project
manager’s performance, factors related to organization, factors related to project, factors related
to external environment became apparent from this study. (Sumesh, et,al, 2015.)
Researches on project success show that it is impossible to generate a universal checklist of

project success criteria suitable for all projects. Success criteria will differ from project to project
depending on participants, scope of services, project size, and sophistication of the owner related
to the design of facilities, technological implications, and a variety of other factors. On the other
hand, common threads relating to success criteria often develop not only with an individual
project but across the industry as we relate success to the perceptions and expectations of the
owner, designer, or contractor (Sumesh, et al., 2015).
Cooke-Davies (2002) eliminates a conceptual difference between ‘success criteria’ and ‘success
factors. He stresses that success criteria belong to specific measurement which needs to be
formulated in order to conclude whether project succeeds or fails. However, success factors are
more about particular levers that can be used by project manager to increase a probability of
successful outcome of a project.
Project success means different things to different people. Each industry project team or
individual has a definition of success. Pariff and Sanvido (1993) consider success as an
intangible perceptive feeling, a measuring criterion that varies with management expectation and
varies among persons and with the phases of project. Actually, owners, designers, consultants,
contractors as well as sub-contractors have their own project objectives and criteria for
measuring success. Definition on project success may change according to project type, size, and
sophistication, project participants and experience of owners etc.
Project achieves success by meeting user requirements or delivering values to various

stakeholders such as project managers, project team members, project sponsors, client or end
users whom are indirectly or directly involved in the project or able to influence its result or
outcome. Different stakeholders associate success to different indicators. Project managers

associate success with meeting time and cost target within given scope, whilst users may
associate success with their perceived satisfaction and expectation (Stuckenbruck, 1986).
Success factors are those factors in the project most conducive to the project team and in the
project environment that will underpin the project and the likelihood for the project to be
successful. Typical success factors would be top management support, ability to coordinate and
synergy of team. Success factor are not related to the time, cost & quality elements used in the
success criteria. “Success factors are perceived as levers that can be operated by project
managers to increase chances of obtaining the desired outcomes” (Westerveld, 2003).
Baker, Murphy, and Fisher (2008) concluded that “project success is something much more
complex than simply meeting cost, schedule, and performance specifications. Although certain
criteria might be relevant in measuring the success of most projects, they should be adapted to
size, complexity, duration, project phases, type and stakeholders’ requirements”. They further
stated critical success factors of a project are ability to coordinate, application of project
management techniques, client acceptance, client consultation, communication, executive
acceptance, external environment, lesson learnt, monitor & control, organization structure,
organization adaptability, personnel, project manager leadership & competence, Project mission,
Project schedule & plan, quality management, risk management, Synergy of team, technical task
ability and top management support.
The paper by Miller (2013) reported that managers have more people/staff worries than technical
worries on human resources construction projects. The success implementation of project is not
predominantly affected by a particular group of factor but perhaps an interaction of a few factors
from different groups. A combination of factors determines the success or failure of a project.
(Savolainen, Ahonen, & Richardson, 2012)
Beleiu, Crisan, and Nistor (2015) developed an elaborated list of success factors that have the
highest influence on project success. They concluded that clearly defined goal and directions,
competent project team members, clearly defined roles and responsibilities, Communication and
consultation with stakeholders and Compliance with the planned budget, time frame and
performance criteria to be the five critical success factors that have the highest impact on project
success

Pinto and Slevin’s (1988) List 10 Success Factors as: -
• Project mission which includes clearly defined goals and direction

• Top management support which includes resources, authority, and power for
implementation
• Schedule and plans which focuses on detailed specification of implementation process
• Client consultation includes communication with and consultation of all stakeholders
• Personnel includes recruitment, selection, and training of competent personnel
• Technical tasks include ability of the required technology and expertise
• Client acceptance of selling of the final product to the end users
• Monitoring and feedback basically focus on timely and comprehensive control
• Communication includes provision of timely data to key players
• Troubleshooting means ability to handle unexpected problems
The first systematic classification of critical success factors in the area of project management is
provided by Schultz, Slevin and Pinto (1987). They identify two groups of factors – strategic and
tactical – which influence project performance at various stages of project life cycle. The
“strategic” group consists of factors as project mission, top management support, and project
scheduling. The “tactical” group includes factors as client consulting, human resource selection
and personnel training. Tactics is the deployment of wide variety of human, technical and
financial resources to achieve strategic plans.
Sumesh Babul, et al (2015) concluded that CSFs can be grouped under seven main categories.
These include: (1) Project Management Factors; (2) Procurement-related Factors; (3) Client-
related Factors; (4) Design team-related Factors; (5) Contractor-related factors; (6) Project
Manager-related Factors; and (7) Business and Work Environment related Factors.
Ling Keng Zheng (2017) identified Corporate understanding, Common understanding with
stakeholders on success criteria, Executive commitment, Organizational adaptability,
Communication, Project manager selection criteria, Project manager leadership, Environment,
Commitment to planning & control, Project mission /common goal/ direction, Top management

support, Client consultation / acceptance, Monitor performance and feedback, and Personnel /
teamwork as project success factors.
Turner (1999) identified success in to the following four stages of the management process:
1. Establishing the Project. These are factors in the way the project is set up within the parent
organization. Align Project Plans with Business Plans. Project plans must be derived from the
business plans. A mistake often made is to start with detail planning, and then finding it difficult
to link the project back to corporate plans. Start at the top and work down.
Define Procedures for Managing Projects. Projects use transient teams to undertake novel
assignments. The teams form quickly in order to undertake the task successfully. A properly
structured start-up process is therefore important. A consistent, companywide approach to
project management can also help. However, it is necessary to obtain a balance between the need
for a company-wide approach and the need to respect the individuality of project types.
Communicate Priorities to the Parties Involved. When priorities are not communicated, People
assign their own, usually different, priorities, with the result that there is no coordination, and no
work is done. Agree the success criteria with the stakeholders before you start.
2. Planning the Project. The following factors are among those that determine how the work is
defined and, the time and cost schedules calculated and communicated to the project team.
Develop Project Plans Developed on Multiple Levels. The use of breakdown structure is how we
ensure the work delivers the required benefit. The usual pitfall is to plan at a detailed level only;
computer software unfortunately encourages this. Sometimes work is planned only at a very high
level, and there is no coordination.
3. Organizing and Implementing the Project. These are factors in building the project
organization and assigning work to people.
Obtain Cooperation. It is not uncommon on projects to wonder if you all work for the same
organization, as covert objectives get in the way of the overt objectives. Cooperation is achieved
in two ways: by building a clear vision for the project; and by negotiating agreement to the plans.

Obtain Commitment of the Resource Providers. Project managers often use resources on
secondment from other managers. They will not willingly release their resources if they are not
committed to the project.
Ensure Resources are Available When Required. It is not adequate just to send the resource
providers a plan and expect their people to be available at some point. Even if they are
committed, you must ensure they understand the requirements. This is helped by using simple
plans, by discussing the requirements of the plan with the resource provider, and by negotiating
their release. They must also plan to release their resources at the required time.
Define Management Responsibility. When defining roles on projects, it is common to consider

only those people who do the work: cutting metal or writing code. However, people have other
roles which consume time or can delay the project. These tend to be management roles,
especially those which cause delay. These roles include taking decisions, managing information,
and managing progress.
Ensure Good Communication. Surprisingly, poor communication on projects is sometimes

caused by too much rather than too little. Communication out of a project is often achieved by
sending every piece of information to everyone involved. People soon learn only a few
documents are relevant to them, so all go straight in the bin. The project manager must define
those who need information, so that when people receive something, they know they ought to
read it. If some other person wishes to be included in the circulation, they must negotiate
inclusion on the responsibility chart. Similarly, committees are often used for communication
into a project. Once invited people tend to stay on the committee, even if they are no longer
required. Committees grow organically. Worse still, it is those people who have least to
contribute who do most of the talking at meetings, as they talk to justify their presence. Channels
of communication into a project must be clearly defined and limited, and any additions discussed
and negotiated.
Differentiate between Technical Management and Project Management. It is still common to

hear design managers refer to themselves as project managers, especially on information systems
projects. Often, these “project managers” are not good at delegating work. They believe, quite

rightly, they can do the work better than anyone else, and so surround themselves with idle
people while they work themselves into an early grave. It is my view that an industry has truly
matured in the management of projects when they stop calling design managers project
managers, and stop using design engineers as such. Project management is an integrative
function and design management is a specialist function.
4. Controlling the Project. Finally, factors in monitoring and controlling progress are: -
Understand the Purpose of Control. The purpose of control is not to hold meetings. It is also
not to punish people for failing to achieve the plan. If people believe that is the purpose of
control, they will withhold information. The purpose is to monitor progress, to compare progress
to the plan, and to take necessary action to achieve the project’s goals. That requires people to be
open and honest about progress on the project. If people know they are reporting progress
because it is time to report progress, and the information will be used to help and support them,
they will be more willing to give a true picture of progress.
Monitor Progress against the Plan. Control was lost because people were not reporting
progress against the plan. Control will only be effective if there is a common basis for control,
which means a common plan. This is achieved most effectively by reporting progress on a copy
of the plan.
Hold Effective Review Meetings. To be effective formal review meetings must be held, with
controlled attendance, fixed criteria for reporting, and at fixed intervals. Discussing progress at
the coffee machine may be part of good leadership, but it is not of good control. At the other
extreme, large meetings where most people are not interested in what others are saying waste
time. People must only be invited if they have something to contribute. Holding review meetings
at two or more levels of the planning hierarchy can aid this. The meetings must have a fixed
agenda, which means reporting against fixed criteria, including the plan. Without a structure
people will report progress in a way which puts them in the best light. Finally, people sometimes
hold meetings only when they have something to discuss. By then control is reduced to damage
limitation. Meetings must be held at fixed intervals, although the frequency may vary depending
on the risk and the point in the project life cycle.

Combine Responsibility with Authority. The manager had no direct authority over the
syndicates, and was not able to use other sources, including that obtained by negotiating
agreements. Without authority for control, the manager cannot take action to achieve the
project’s goals.
Kumar Neeraj Jha, 2013 in his book of “Determinants of Construction Project Success in India”,
identified project success and failure factors in terms of schedule, quality, cost, and non-dispute
criterion. A total of six factors were extracted are:-
1. Project Manager’s Competence

Project manager’s competence considered as a key to success of the project. A competent
manager has the technical capability and monitoring capabilities. He shows his trust in his
project team by way of delegating the authority to his team. He organizes resources through
constant persuasion with his higher ups, he takes active part in construction control meetings
held at site level, he acts as a catalyst in training his human resources in the skill demanded by
the project; he makes his people committed for the project through effective leadership and by
acting in nonpartisan ways. All these attributes can be thought of originating from Project
Manager’s competence, hence the name.
2. Top Management Support

Top management supports the project by taking appropriate action whenever the project faces
operational difficulties. Top management extends support to the project by selecting a project
manager of proven track record at an early stage and by keeping short and informal line of
communication. Also, a supportive top management backs up the project plan prepared by site
management team. Taking part in construction control meetings and making the resources
available for the planned duration also show support for the project.
3. Monitoring, Feedback and Coordination

Looking at the attributes under this factor it is difficult to give a common name. However, this
factor has the attributes mainly focusing on monitoring, feedback and coordination among
project participants. Monitoring, feedback and coordination are given importance by most of the

studies for the successful outcome of a project and identified as key factor responsible for
success of many projects.
4. Favorable Working Condition

This factor comprises of attributes like scope and nature of work well defined in the tender,
favorable social environment, favorable climatic condition at the site, monitoring and feedback
by client.
5. Commitment of All Project Participants

Project participants include internal and external participants. For the project to be successful not
only internal factors are needed but external factors like political and economic environment are
also needed. Delegating authority viz. top management delegating to project manager, which in
turn delegates down to other team members also show the team commitment.
6. Owners Competence
Taking timely decisions, and regular monitoring and feedback of the progress of the project are
some of the characteristics of a competent owner. The negative loading of attributes training the
human resources in the skill demanded by project under this factor is bothersome and no
meanings could be attached to this.
Sumesh, et,al, (2015) stated the significance of critical success factors as it can reduce
organizational ambiguity, reflect the implicit, collective drivers of key managers, are reflective
of what good managers do well to move the organization toward its mission, are the essential
areas of activity that must be performed well to achieve the mission, objectives or goals for
business or project, it is a common point of reference that direct and measure the success of
business or project, help everyone in the team to know exactly what's most important and helps
people perform their own work in the right context and pull together towards the same overall
aims, are likely to be more dynamic and to reflect current operating conditions because of the
many sources of CSFs, provide a key risk-management perspective for the organization to
consider, can be valuable for course correction, it takes into account the changing environment
with which organizations and managers must deal, give organization/company a competitive

edge and is the bottom line of success in fulfilling the responsibility of a project management
companies and make the project management company prosper.
The project implementation process is complex. It usually involves attention to a broad Variety
of human, budgetary, and technical variables. From a Project Management perspective, critical
success factors (CSFs) are characteristics, conditions, or variables that can have a significant
impact on the success of the project when properly sustained, maintained, or managed. There is a
very close link between the type and scope of projects and respective Critical Success Factors
(CSF).
3.4.4. Cost and schedule overrun of projects
Delays happen in most construction projects, whether simple or complex. In construction, delay
could be defined as the time overrun either beyond the contract date or beyond the extended date
of completion. Construction project delays have a debilitating effect on the parties to a contract
in terms of a growth in adversarial relationships, distrust, litigation, arbitration, cash flow
problems, and a general feeling of apprehension towards each other. Delays caused by the
employer, such as late issue of drawings and specifications, frequent change orders, and
incorrect/inadequate site information, generate claims from both the main contractor and
subcontractors which often entail lengthy court battles with huge financial repercussions. Delays
caused by contractors can generally be attributed to poor managerial skills, lack of planning and
a poor understanding of financial principles, all of which have led to the downfall of many a
contractor. Because of its overriding importance for the employer (in terms of performance) and
the contractor (in terms of money), time the source of frequent disputes and claims leading to
arbitration and litigation. To control this situation, a contract is formulated to identify potential
delay situations in advance and to define and fix obligations to preclude such controversies
(Roger Gibson, 2015).
Construction delays are occurring in every phase of a construction project and are common
problems in construction projects in Ethiopia. Moreover, it is well known that the delays in
construction projects are the major causes of project failure. As discussed by Worku Koshe et al.,
2016, if the delay is not identified and the corrective project management decision is not taken in
time a project may incur extra cost and extension of project time, which gives rise to

dissatisfaction to all the parties involved and nowadays it’s becoming a major obstruction for
their development for developing countries like Ethiopia.
The findings by Werku Koshe et al., 2016 also shows that the main critical factors that cause
construction delays in Ethiopian cases are: (1) Difficulties in financing project by a contractor;
(2) Escalation of the materials price; (3) Infective project planning; (4) Scheduling or resource
management; (5) Delay in progress payments for completed works, (6) Lack of skilled
professionals in the field of construction management in the organization, and (7) Fluctuating
labor availability season to season /seasonal labors availability.
Lee, Y. D,et,al, 2008 also clearly tried to identify the problems related to delays and cost
overruns during construction phases are poor site management and supervision, poor project
management assistance, financial difficulties of owner, financial difficulties of contractor and
design changes are the five most frequent, severe and important causes.
3.5. Conceptual Framework

This research work focuses on the assessment of factors for the performance of construction
projects. The following picture depicts the overall conceptual framework so as to demonstrate
the relationship between dependent and independent variables as well as how success or failure
will be verified.

Knowledge of
Project goals
(objectives)
Customer
involvement
Safety and
health
Management
Technical
task\competen
cy
Proper Initial
cost estimate
Top
management
support
Project
planning and
scheduling
Cost
Resources efficent
Management
Favorable
Project success
working
condition Quality
Regular Project
Monitoring,
evaluation and
feedback
Timely
Communicatio delivery
n Management
Client support
Customer
Contractual Satisfaction
Consultant
Relationship
Project
manager
Competency
Team
Management
Figure 1 conceptual framework

As can be illustrated in the above diagram there are two types of variables; dependent and
independent variables. The dependent variable (project success) can be influenced and affected
by the independent variables (Knowledge of Project goals (objectives), scope management,
customer satisfaction, safety and health management, technical task\competency, proper initial cost
estimate, top management support, project planning and scheduling, resources management, favorable
working condition, regular project monitoring, evaluation and feedback, communication management,
client support. contractual consultant relationship, project manager competency, and team management.
The success (failure) of projects can be measured by using four constraints of projects (timely
delivery, cost efficient, quality, and customer satisfaction.
3.6. Empirical Review
This part of literature review will discuss related articles and journals to the topic under study. In
2011 Ogwueleka defines the success factors are as inputs to management system which can lead
directly or indirectly to project success. It tries to investigate the critical success factors influencing
project performance in Nigeria. The purpose was to identify success factors existing in projects and
also to examine the important index of these success factors on project performance in Nigeria.
Twenty-two success factors were selected from the literature for the research with sample size of 188
professionals. The data obtained from the questionnaire are analyzed using frequency and severity.
The reliability test on the data using Cronbach’s alpha displays, sixteen success factors were
necessary for true satisfaction of successful project implementation in Nigerian Construction
Industry. Based on the result, objective management, management of design, technical factors, top
management support and risk management were selected as the most critical success factors in
project performance. The findings are focused to assist practitioners’ gain better understanding on the
key areas based on prioritized success factors in order to improve performance in project delivery.
According to Arslan and Kivrak (2008) achieving success is a highly critical issue for the companies
to survive in a competitive business environment. The construction industry is also an area where
there is strong competition due to a large number of construction contractors. There have been many
factors such as qualified employees, quality workmanship and financial management that can lead to
company success in the construction industry. The aim of their study was to investigate the critical
factors leading to construction company success. Within this context, a survey was carried out among
40 Turkish construction companies which are located in the Northwest region of Turkey. In the

survey, top-level managers and owners of the companies were interviewed. The interviews took
place over a five-month period between January and May 2007. Finally, the ranking of the critical
success factors has been determined by using the Simple Multi Attribute Rating Technique
(SMART). Based on the results, business management, financial conditions and owner/manager
characteristics were determined as the most important factors to company success.
Takim and Adnan (2008) provide an empirical analysis of measures of success in terms of
effective performance in the development of construction projects in Malaysia. A survey was
conducted in Malaysia among the four project stakeholders: The Government, private clients,
consultants, and contractors. In total 93 respondents completed the questionnaire. Lists of
effectiveness of success measures were identified for the respondents to identify their level of
success criticality to the Malaysian construction projects. The data were analyzed by means of
statistical analysis i.e. ranking of variables based on the mean values, Analysis of Variance and
factor analysis techniques. The first finding revealed that the level of success criticality with
regards to project efficiency performance in the development of construction projects is the
specific requirements and priorities of different project stakeholders. The second finding shows
the project ‘results’ achieved in the development of construction project. These are presented by
the five principal factors namely: Learning and Exploitation; Client Satisfaction; Stakeholder
Objectives; Operational Assurance and User Satisfaction. It is anticipated that the findings
reported in this paper could be important for future strategies and guidelines for the development
of projects in Malaysia.
Saif Ul Amin, et,al, (2016) stated that Projects of construction companies often experience poor
performance in terms of cost overruns, quality defects, delay and time. They analyzed and
examined the reasons of poor performances. Their prime objective was to determine the strength
of relationship between the different elements of project management performance indicators
and project success. They employed a survey questionnaire to investigate the specific
characteristics of project performance indicators in construction and their impact on project
success. The data was collected from professionals and managers of Construction Companies of
Pakistan. A collection of 193 completed questionnaires were analyzed using SPSS. Multiple
Regression analysis and correlation were applied and the outcomes depict that project
management performance indicators have positive association with project success. Their finding

shows that project management is one of the important factors which have strong influence on
success of project in construction industries of Pakistan. Their findings also prove that PM
leadership, PM staff and PM KPIs are the major factors which influence the project success. PM
leadership has the main responsibility to handle the project and all its resources efficiently and
effectively so that they project succeeds at the end. Their study is most beneficial for team
leaders and project managers in construction organizations to adjust their focus on key
components of project management that helps in the project success.
Finally from the above mentioned literatures it was tried to find out sixteen variables used to assess
the factors that can affect the performance of construction projects.

Chapter Four
4. Research Methodology
4.1. Introduction
This chapter presents the elements of methodology that were applied in the study. The chapter
covers research design, sampling procedure, data collection methods and instruments, and data
analysis.
4.2. The Research Design
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with in procedure. In fact, the
research design is the conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, investigation and analysis of data (Kothari 2004).
According to Kothari (2004) a good design is often characterized by adjectives like flexible,
appropriate, efficient, and economical. Generally, the design which minimizes bias and
maximizes the reliability of the data collected and analyzed is considered a good design. The
design which gives the smallest experimental error is supposed to be the best design in many
investigations. Similarly, a design which yields maximal information and provides an
opportunity for considering many different aspects of a problem is considered most appropriate
and efficient design in respect of many research problems.
This study adopted explanatory key-informant interview and descriptive survey research designs.
For the descriptive survey research design, the collected sample data were analyzed using
descriptive statistics. In this stage the questionnaire was coded and analyzed using MS-excel
computer program and used frequency, percentage, cross tabulation and figures to give a big
picture of the data and to show summary of the analysis and to facilitate interpretation of the
data. The results of explanatory key-informant interview were used to make informative, simple
to understand and hence to triangulate the entire results.

4.3. Sampling Design
Project success means different things to different people. Each industry project team or
individual has a definition of success. Project success is an abstract concept, and determining
whether a project is a success or a failure is highly complex (Chan et al, 2002a). However, the
concept of project success can be evaluated through performance measures that can be developed
from research literature where various success criteria can be identified.
For this study the critical factors that determine the successful performance of construction
projects will be identified from the projects undertaken by the Ethiopian construction works
corporation. All building, road and water infrastructure projects are the population of the study.
In the corporation there are 9, 12 and 9 building, water and road construction projects
respectively in different parts of the country. Out of the total 30 projects 6 water, 4 building and
4 road constructions projects are selected by using stratified sampling. Out of employees of
management team and engineering professionals of the project 6 respondents were selected by
using purposive sampling technique from each sampled project. Totally 84 sample respondents
were selected. (The name of projects in each sector attached in annex 3)
Purposive or judgmental sampling enables to use judgment to select cases that will best enable to
answer the research questions and to meet the research objectives. (Saunders,et al, 2009). The
researcher believed that taking the project management team and engineering professionals as a
respondent would provide the necessary information regarding project management practice,
success and failure story of the projects. In addition, the project management team and
engineering professional are on the front line of the project, knowledgeable about the project
activities, gave the researcher a chance to capture relevant data, easily evaluate the performance
of the project against its plan and identify the problems and suggest possible solution to
overcome the problem.
Once the samples were drawn, the questionnaires were distributed to the respondents in person
and through email at their respective project offices and collected in similar fashion.
Furthermore, the selected projects are currently fully operational and have a minimum of more
than two years since commencement.

4.4. Process of data collection
The data for this study were obtained from primary and secondary sources. Primary data was
collected through structured questionnaires prepared for this study and conducted (presented) for
each sample of respondents. Secondary data were obtained from the documents of ECWC,
Clients & consultant office, different related organization, other educational, financial institution
libraries and internet.
4.5. Assessment Tools
Project success factors are the elements of a project that can be influenced to increase the
likelihood of success; these are independent variable that makes success more likely. Project
success criteria are the measures by which judge the successful outcome of a project; these are
dependent variable which measure project success. Success factors are those inputs to the
management system that lead directly or indirectly to the success of the project or business.
(Sumesh Sudheer Babul, et,al. 2015)
The study approach involves both literature search and the use of structured questionnaire, which
was considered to be the most appropriate tool to reach the population of the study with limited
time and from a distance at a time. The questionnaire will be designed to assess the opinion of
employees and leaders of the project related with identifying the factors for successful
performance of projects. Interview questions also forwarded to clients, consultants and
contractors at the head office level in Addis Ababa to triangulate the information or data
obtained from the questioner.
The survey instruments include structured questionnaires that administered with the help of
personal and email communication. A discussion will be made with leaders of contractors,
consultants and clients who are directly related with the projects. Relevant documents of the
project will be used. The questionnaires were prepared in English and conducted personally.
The questionnaires designed to collect information on whether there is Common understanding

of Project Goals, Support of the head office Top management, Workable Project planning,
Availability of project Resources /timely delivery or supply of logistics, Competency of
Technical staff, Practice of project Monitoring and Evaluation, Communication, satisfaction of

internal staff, satisfaction of external customer, safety & health management, Feasibility study,
Scope change, Project Managers competency, Experience of project manager and Integrity
management.
In this research, the researcher chooses to use the semi-structured face-to-face interviews with
clients, contractors and consultant representatives in the respective organization. The motive of
the interview question is to make the finding of the research more concrete and to triangulate the
issues raised by three parties of the projects. It also helps to assess the practice of integration
management among three parties of the projects. In terms of consultant the interview questions
focuses on identifying the basic reasons for projects scope change, design change, how they
managed the cost and time overrun of projects, the relation among three parties at construction
site, how the consultant evaluate the project management practice of contractor, what can the
consultant suggest to contractors overcome the problem of time & cost overrun of projects.
It is also tried to assess the perception of clients by using the following interview questions -
Existence of project management office at the head office and project level, the office equipped
and facilitated with key and experienced personnel, the practice of Regular project monitoring
& evaluation and feedback, the reason for cost & time overrun of projects, how they manage
the performance of consultant, the practice of joint meeting at project site and head office level,
the problem of delay in making contractor payment and the problem of compensation payment
related to write off way.
The interview question forwarded to the contractor are to mention the problem associated with
cost and time overrun of projects, the reason for frequent contract amendments, the practice of
claim management for the time lost, the practice of project management, the management of
problems related to consultants, the reason for why project managers leave the project, the
practice of Project monitoring, evaluation, controlling and giving feedback to projects, and
problems related to timely delivery of resource to the project.
4.6. Methods of Data Analysis
The data collected through questionnaires, interviews as well as secondary data collection
methods were analyzed using qualitative methods. The data were mainly analyzed using
descriptive method of analysis. The analysis involved comparisons of data obtained from the

data collected from primary sources with the data available from secondary sources such as
reports of the project. Generalizations were also made based on the results of the study. The data
collected will be coded, and analyzed through SPSS (statistical package for social sciences).
4.7. Validity and Reliability of the Study
For the sake of increasing both the reliability and validity of data, triangulation method was used.
This is mainly because to cross check the responses obtained through different sources such as
questioner and reports. Generally, to ensure the quality of research and make it credible; the
researcher gave due care to both validity and reliability issues of the data. The questionnaires
reliability was checked by the Cronbach‘s alpha test coefficient using SPSS software. As
reliability measures gives greater confidence that the individual variables are consistent in their
measurement. The researcher calculated Cronbach‘s alpha with a commonly used value 0.70 to
measure the reliability of all variables addressed on the questioner. Out of fifteen variables 11
scores Cronbach‘s alpha 0.70 and more than 0.70 indicates that the instrument is reliable
Table 2: Reliability analysis for success factors under study.
S.No Success factors Cronbach ‘s alpha
1 Customer satisfaction 0.71
2 Safety and health 0.70
3 Initial cost estimate 0.83
4 Top management support 0.80
5 Project planning and scheduling 0.71
6 Favorable working condition 0.70
7 Communication 0.71
8 Client 0.77
9 Consultant 0.73
10 Project manager 0.83
11 Team 0.71

Thus, the score supports the presence of good internal consistency among the items and promise
the reliability and acceptability of the study items. To ensure the validity, the researcher made
use of different literature for both the questionnaire and the interview questions. The instruments
were developed after the researcher studied the literature on the research area.
4.8. Ethical Consideration
The study was conducted by considering ethical responsibility, and also the study was ethically
clear from department of Project Management, school of commerce of Addis Ababa University.
Since the researcher used the data from project management team and engineering professionals’
employees which was collected through questionnaire, permission was obtain from the
employees. To maintain the confidentiality of the information provided by the respondents, the
respondents were instructed not to write their names on the questionnaire and assure of that the
responses was used only for academic purpose and kept confidential. Brief description of the
central objectives or purpose of the study and the potential benefit of the research outcome to
respondents are clearly given in the introductory part of the questionnaire so as to motivate them
and participate in the study and provide pertinent information about the company under study.
Finally, respondents are included in the study based on their free will.

Chapter Five
5. Data Presentation, Analysis and Interpretation
5.1. Introduction
This chapter deals with presentation, analysis and interpretation of data obtained through
questionnaire, interview and document review. The results of the study are presented in the form
of figures and tables by using Statistical Package for Social Science Version 16 (SPSS-16). The
data was obtained from progress report of the projects, yearly financial reports of the
corporation, National bank of Ethiopia, National Planning and Development Commission, client
and consultant progress report of projects and from interview of clients, consultant and
contractor representatives.
The questionnaires were distributed for 84 participants and 3 (3.9%) of the participants did not
return the paper and 4(5.2%) participant response were incomplete and thus rejected. Similarly,
clients’ such as ERA, Ministry of Water, Irrigation and Energy and building construction clients
representatives as well as the main consultants of Dam and irrigation related projects is Ethiopian
construction design and supervision agency official is also interviewed. Finally, at ECWC head
office road, dam and irrigation and building sector leaders are also interviewed to consolidate the
findings.
5.2. Characteristics of Sample Respondents
Description of the characteristic of the target population gives some basic information about the
sample population involved in the study. Thus, the following tables contains about the general
and educational characteristics of respondents in the study area.
5.3. Demographic Profiles of Respondents
In this section the respondents’ profile is presented. It includes gender, age, level of education,
work experience and working positions.

Table 3: Demographic Characteristics’ of Respondents
MALE FEMALE TOTAL
GENDER 66 11 77
20 - 29 30 - 39 40 - 49 > 50
AGE 29 36 9 3 77
LEVEL OF DIPLOMA DEGREE MASTERS
EDUCATION 3 61 13 77
1-5 6 - 10 11 - 15
WORK YEARS YEARS YEARS > 15 YEARS
EXPERIENCE 21 28 15 13 77
PROJECT &
PROJECT SITE OFFICE MANAGEMENT
WORKING MANAGER ENGINEER ENGINEER TEAM
POSITION 14 31 14 18 77
As shown in the above table out of the total 77 respondents, 66 (85.7%) were male and 11
(14.3%) were female. This implies that the number of male respondents were greater than
females’ respondents who participated in the study. The basic cause of this is the participation or
involvement of females as of engineering professionals and in the management team of projects
is small as compared to males.
Regarding age of respondents out of the total 77 respondents, 29 (37.7%) are within 20-29 years
of age category, whereas 36 (46.8%) are in the range of 30-39 years of age and the rest 12
(15.6%) are within of the age greater than 40 years category. Majority of the respondents 65
(84.4%) were in the range of 20 - 39 years of age can easily understand their respective projects
failure and success.
With respect to educational level, respondents who have acquired degree are 61 (79.2%), at
master’s level are 13 (16.9%), and Diploma holder are 3(3.99%). This shows that the majority of
the respondents 96.1% have degree and master level of education. The academic qualification of
the respondents indicating that the respondents are well qualified to understand and respond to

the factors and issues under study. In addition this indicates the corporation obtains qualified
personnel. As a result, there shall be a good opportunity for the project to utilize the qualification
of its staff to the realization of its objectives.
In terms of work experience of respondents 21(27.3%) have below 5 years of experience.
However, the majority 56(72.3%) have a work experience more than 6 years. As a result, it can
be inferred that the projects have experienced staff that easily mention the problems of project
performance and suggest possible solutions to overcome the problems.
The current working positions of the respondents’ shows that the project manager, project
engineer and office engineer constitute equal number 14(18.2%) each. Out of total 77
respondents, this comprises the total of 42 (54.6%). The rest are site engineers and project
management team /leaders/ which comprises 17 (22.1%) and 18 (23.4%) respectively. This
shows that the sample respondents are from different occupational level can better understand
the performance of projects.
Key-Informant Interview Discussions and Descriptive Analysis of Key Factors
Explanatory Key-Informant Interview Discussions
The explanatory research was done by exploring and discussing the response of open-ended
questions with the person in charge of the construction projects in the study area. And hence put
purely and explored in a detailed manner the responses obtained from the opinion of the
individuals how he/she thought of the issues of interest in the following ways.
5.4. Descriptive Analysis and Discussions
The descriptive analysis was done by examining the responses of the sample respondents for the
issues of interest obtained from the view point of project success factors. To highlight the major
results of the survey, summary and brief descriptions on survey results/data are given in this
analysis as well as put in annex part. Thus, the detailed analysis and discussions on the factors
affecting project performance in the study area are presented below.

5.5. Data analysis Approach
In the research questioner it was tried to find out risk encountered in the projects, and scope
change management. In addition to these, respondents are requested to indicate the degree of
implementation (importance) and frequency of occurrence of success factors. The degree of
implementation is categorized into five scales. Before the start of the analysis, weightings have
been assigned to each of the categories. For degree of its occurrence the weightings assigned are
5 for strongly Agree, 4 for Agree, 3 for Neutral, 2 for Disagree, and 1 for strongly Disagree.
5.6. Scope Change Management
According to Harold Kerzner (2009) Very few projects are completed within the original scope
of the project. Scope changes are inevitable and have the potential to destroy not only the morale
on a project, but the entire project. Scope changes must be held to a minimum and those that are
required must be approved by both the project manager and the customer/user.
Scope change is one of the major problems that affect the timely completion of project. The
issues of scope change may be raised from three parties of the project, either from clients,
consultant or contractors. In all projects under the study contracts were amended more than four
times due to scope change. The following table shows how the problem of scope change is
serious in water infrastructure projects and the contracts were amended up to four times. This
made the final contract to exceed initial contract by 262% in Tendaho Dam and Irrigation
project.

Table 4: Contract Amendments in different Projects

Variation
Second Third Fourth
R.No Project Name Initial Contract First Amendment from Initial
Amendment Amendment Amendment
Contract
1 Tendaho Dam & Irrigation 840,254,274.70 1,726,172,145.26 2,272,435,130.37 2,760,033,815.68 3,042,070,072.21 262%
2 Megech Dam Construction 2,451,953,789.37 5,654,431,490.95 5,667,130,760.53 5,882,416,559.15 140%
3 Rib Dam & Irrigation 2,401,708,620.61 4,631,831,780.50 3,613,477,436.99 3,781,967,404.04 57%

4 Gidabo Dam Construction 599,848,305.00 874,072,825.00 1,063,858,326.00 992,198,408.00 1,075,313,282.00 79%
5 Kuraz River Diversion 461,657,833.12 723,745,763.07 57%

6 Kong Begondi R/ Project 592,720,176.00 1,544,757,865.00 1,309,639,361.00 121%
7 Dima Rad Road Project 684,508,886.00 725,620,303.00 616,777,258.00 -10%

Jinka Mendere Road
8 1,214,208,380.00 1,373,268,271.00 13%
project
9 Dulecha Awash R/Project 693,519,819.00 717,244,619.75 3.43%
10 Mazoria Hadero 288,252,845.00 400,446,580.00 39%
Meles Leadership
11 283,617,445.68 402,540,002.00 42%
Academy
12 Islamic 158,759,369.95 159,043,374.00 1%
13 Ict Building 191,678,183.00 219,862,340.00 15%
14 Ict Landscape 35,334,470.82 51,448,813.00 46%

15 Nigat 37,364,373.96 39,588,306.00 6%

In Gidabo project also the contract was amended up to four times the same too Tendaho. The
final contract amount inflated the original one by 79%. Megech Dam project due to scope change
the contract revised up to three times and the initial contract amount increased by 141% from the
original one. In Rib Dam project the original contract amount increased by 57%. Scope change
in water infrastructure project seems a culture and increases the project completion time and
budget of the project. I have tried to find out the main problems of scope change from interview
of client, consultant and contractor. The contractor mentioned problems are: -
• Most of the water infrastructure projects lack detailed feasibility study. This resulted in
lack of detailed design. There for the contractor is forced to stop the work until the new
or revised design is submitted by the consultant.
• In the initial contract document the work volume were small as compared to the actual
work performed. Until the contract is amended the contractor experienced problems of
delay Payment. Delay payment becomes the source of many problems for contractors.
Such as delay in resource supply, poor cash flow, delay payment for machinery rentals
and even salary delay for employees of the corporation and projects are some to mention.
• Political leader interference & lack of professional freedom of consultants is the main
source of problem for scope change. This is more explained as Political leaders forced
the consultants and contractors to undertake the project work without having full design.
Consultants were not given enough time to undertake feasibility study and prepare initial
contract document just as to begin the project work
• Lack of foreign currency hindered to get the specified material from the market forced
the contractor to request the material specification change based on the material available
in the market.
According to the interview made with the consultant’s representative of Design Corporation
(water related projects) the reasons for scope change are: -
• In our country all mega projects are undertaken by the initiation of government. The
government urged the consultant to prepare design and contract document without having
primary data for design preparation. Every dam and irrigation projects design demands
survey data, geotechnical investigation, geophysics study, hydrology, soil test, metrology
data and socio economical study of the project area. These all studies require enough time

to collect the necessary information from the project site. Therefore, the consultant
prepares initial design and contract document just to start the project work. Both the
contract and the design are subject to modification. In addition to this when the project
execution is going on the government also changes the initial idea of the project. The best
examples for this are the consultant representative mentioned are Wolenchiti and tendaho
project.
• The experience of these two projects shows after a long time taken design preparation
and when design is ready for implementation the corporation forced to change the design.
• Working without having detailed and deep planning and feasibility study leads to scope
change.
• The reasons for design change are political interference. Consultant has lacks
professional freedom and forced to prepare the initial design without having detailed
design inputs. This factor makes the design to be modified during the execution of
projects. There for the design was prepared by using superficial information of the project
site.
The client of dam and Irrigation projects is the Ministry of Water, Irrigation and Energy agrees
on the reason for scope change of projects mentioned by contractors and consultants. In the
interview with client representative the guiding force that made political leaders to speed up
projects work were to alleviate the countries poverty problem and to boost the national economy.
However, most of the fast track projects of the country experienced cost and time overrun as well
as still not functional as it was planned. To mention best example are sugar projects, and
fertilizer factory.
The problem of scope change is also exhibited in road infrastructure and building projects. In
road construction projects out of sampled projects the contract amendment made three times in
kong Begundi and Dima Rad projects. As shown on the table the final contract amount of Kong
project increased by 121%, from initial one. According the interview made with ERA
representative the main reason for this amendment was Scope change occurred due to change of
gravel road to DBST and to some extent the design problem. This also changed the length of the
road from 35 to 64 KM. In contrary as shown on the above table the contract amendment of one

project that is Dima Rad exhibits contract size decreased from the original contract. This shows
the design issues of road project better managed as compared to water infrastructure projects. In
selected sample building projects, the scope changes increased initial contract amount from 1%
up to 49%. The big change occurred in Meles leadership academy and ICT land scape project
where the change is 42% and 49% respectively. The respondents mentioned the problems
associated with scope change are: -
• Lack of detailed feasibility study from the very start.
• Supplementary or additional work that has not been included in the original contract.
• Lack of specified material on the market forced to change specification of the material
basically finishing material.
• Missing of specification & bill of quantity during the preparation of contract document.
• Failure of proper planning.
• Failure of design.
• Client interest/ financial constraint of clients.
• Demand from the local administration or local community to construct intercity road
which were not part of the main contract. This basically related to connecting additional
town section at the end of the project (adoption of town section and additional road
/Dulecha, Jinka, and Kong road projects). This is associated with late entertainment of
customer requirements.
• Lack of enough materials along the road.
These all factors made the projects to delay in its performance and increases the cost of project.
5.7. Factors affecting performance of construction projects
To get opinion of project staffs and concerned bodies of projects about the factors for effective
performance of construction projects sixteen factors are identified from different literature and
were forwarded to respondents. The analysis of response of respondents presented as follows.

Table 5: Knowledge of overall Project goals (objectives)

S. N Statements Mean SD
1 Overall Project goals and objectives are clear 4.17 0.750
2 Roles and responsibilities of stakeholders are clearly defined 3.79 0.978
3 Project goals were attainable with in the time frame 2.48 1.273
Grand mean and standard deviation 3.48 1.00
Source: Own Survey, 2020
As presented in the table 5 the mean and standard deviation scores of the respondents for most
items under knowledge of project goal ranges from (2.48 and 1.273) up to (4.17 and 0.750).
From which, for the first two variables the mean scores are more than the grand mean of 3.48,
showing agreement by more participants. The mean score for the variable Project goals were
attainable with in the time frame is 2.48 shows disagreement of the respondents. This implies the
time estimate during goal setting were unrealistic.
The response of the majority shows that the project goals are not attainable with in the time
frame. Most of sampled projects have not been accomplished according to their initial plan can
be a true witness for this agenda. According to the data collected from contractors’ office in each
sampled project contract schedules were revised in different times and time extensions were
allowed. There for the initial time allotted to attain the project goals was not enough to
accomplish the projects.

Table 6: Time Extension of Projects
S. No Project Name Project Type Contract Period in Calendar Days

Initial First Second Third Total Time
Contract Amend Amend Amend Elapsed
(%)
1 Tendaho Dam & 730 3000 3730 410
Irrigation
2 Gidabo >> 730 1825 2555 250
3 Rib >> 1460 1643 3103 112
4 Megech >> 1460 803 693 2956 102
5 Kuraz Dam & >>
Irrigatn
6 Kong Begundi Road 1095 876 1971 80
7 Dima Rad >> 985.5 584 1569.5 59
8 Jinka Mender >> 730 437 1459 100
9 Mazoria Hadero >> 438 547.5 985.5 125
10 Dulecha Awash >> 949 on progress
11 Meles Building 343 797 1140 232
12 Islamic >> 540 719 1259 133
13 ICT Village/IT Land Scape 120 1088 2004 1570
Park/ land scape
14 ICT building >> 540 1176 1716 218
15 Nigat >> 460 1017 1477 221

In all sample projects there is schedule variation. The variation in water infrastructure projects
ranges from the maximum of 410% Tendaho and minimum of 102% in megech. In road projects
the range is between 125% of mazoria and minimum of 59.3% in Dima. The building projects
shows maximum of 1570 % in ICT land scape project and minimum of 133% in Islamic building
project. In ICT land scape project, the initial work schedule estimate is 120 calendar days. But it
increased to 2004 days, 1570% increment. In the interview with the building contractor
representative the reason mentioned are design, poor client follow up, interest of client to change
the design, delay payment to contractor, initial estimate of time schedule was not realistic to the
actual work and absence of contract management office in client side made the consultant
negligent not to give attention to the project work and not timely solve the project issues related
to consultant.
Table 7: Schedule performance of projects since 2009E.C

PROGRESS1 PROGRESS1
difference difference b/n
PROJECT progress progress progress b/n 2010 2010 &2011
SN NAME of 2009 of 2010 of 2011 &2009
1 NIGAT 12.9 68.39 77.19 56.09 8.8
2 MELES 3 26.49 61.99 23.49 35.5
3 ISLAMIC 11.9 30.28 66.48 18.38 36.2
4 ICT BUILDING 3.72 18.26 24.42 14.54 6.16
5 ICTLANDSCAPE 58.81
6 GIDABO 82.3 94.09 100 11.79 5.91
7 RIB 99.8 99.84 100 0.04 0.16
8 MEGECH 19.7 34.84 44.22 15.14 9.38
9 KONG 49.6 59.4 63.55 9.8 4.15
10 DIMA 23.5 37.75 49.01 14.25 11.26
11 MAZORIYA 36.1 38.58 24 2.48 14.58
12 DULECHA 3.99 14.98 25.18 10.99 10.2
13 JINKA 9 17.74 23.67 8.74 5.93
I tried to analyze yearly progress performance of Projects by comparing three-year progress data
from yearly performance report of the corporation. In the above table as shown the good thing is
there is improvement from year to year. However, the problem that I observe is except three
projects Islamic, Meles and Mazoria the variation or difference of progress between years or

from 2010 to 2011 shows not progressive. This indicates the problem that mentioned in scope
change and others contribute a lot to the interrupted performance.
Table 8: Customer (end users of the project ) satisfaction

S. No Statements Mean SD
1 Customers were clearly defined 3.71 0.944
2 Customer were adequately involved throughout the project 3.17 1.197
3 Customers are satisfied in the performance of the project 2.73 1.242
4 The customer requirement clearly communicated before the project 2.43 1.141
began
To assess customer satisfaction four variables are included in the study. As presented on the table the
grand mean and standard deviation is 3.01 and 1.131 respectively. Most of respondents show agreement
in defining of customer. The response for Involvement of customers throughout the project shows
relatively agreement but needs improvement. However, satisfaction of customers on the performance of
the projects and communication of customer requirement before the project began response shows
disagreement. This is because the mean and standard deviation of both variables are below the grand
mean of 3.01. According to the interview with the clients of ERA and Ministry of Water,
Irrigation and Energy representatives, they blamed contractors for not jointly working with
customers of the project. This problem becomes source of cost for contractors in Megech dam
and Kong road projects. Involvement of customers enables contractor to have access to the local
materials, having access of local indigenous knowledge or learning, protect the project from any
security related issues are some of the benefits the project can obtain from the customers.

Table 9: Safety and health management

S. N Statements Mean SD
1 The project risks related to Safety and health are clearly identified 2.71 1.099
in the project plan
2 The identified project risk of Safety and health is clearly 2.60 1.115
communicated among all the project teams
3 Risk mitigation plan is prepared and communicated among project 2.56 1.070
staff
4 All the safety materials /personal protective equipment’s/ are fully 2.04 0.616
available for the concerned project staff
5 All safety policy, directives and other working procedures or 1.83 0.497
manuals are in place
6 Safety engineering department and experts are available on the 1.78 0.805
project

Health and safety processes play a vital role in minimizing the number of risks on a construction
site and, as such they should be implemented from the start. Having proper health and safety
measures in place and making sure the workforce is aware of these measures enables: -
• Risks associated with the working condition can be reduced significantly.
• If it is not properly managed business could lose a significant amount of man hours and
productivity, which can affect the profitability of the company.
• Significantly reduces the chances of risk occurrence and having effect on the business
productivity.
• At the same time keeping the working team happy and healthy.
• It also improves the productivity and quality of the product.
Therefore, Proper management of workers Safety and health plays important role for successful
performance of projects.
To assess the practice of proper safety and health management at projects six variables are
included in the questioner. The grand mean and standard deviations are 2.25 & 0.867
respectively. Out of six variables, three variables (the project risks related to safety and health
are clearly identified in the project plan, the identified project risk of safety and health is clearly
communicated among all the project teams, and risk mitigation plan is prepared and

communicated among project staffs) scores mean and standard deviation greater than the grand
mean. This shows relatively good practice. However, the mean score of the rest three variables
are below the grand mean. This indicates there is poor performance in making personal
protective equipment’s, poor or lack of legal documents, and not assigning of safety engineers at
project site. Since the corporation the largest public construction companies need to have the
legal documents of health and safety. According to the interview of the contractor representative
currently the corporation by appreciating the problem has issued the policy document and
directives of environmental, organizational health and safety of employees. It was in the process
to implement integrated management system.
According to Helen (2005). the law In relation to OHS exists to identify the responsibility of the
parties involved in industrial or commercial activities. It imposes responsibilities on employers
to protect the health and safety of their employees when they are at work and protects the right of
people to participate in the paid workforce without suffering injury or ill health as a result. As
such, the law should be of primary importance in providing a ‘level playing field’ and ensuring
that employers do not profit from failing to provide adequate protection for their employees.
OHS law also ensures that, if people do suffer a work-related injury or illness, there are
mechanisms by which they may obtain compensation and undergo rehabilitation to enable them
to resume participation in the workforce and the community at large.
It was tried to collect information in the questioner of risk occurred in the sampled projects.
Except from the building construction projects, in the two sectors the risk occurred were
basically associated with explosion of oxygen cylinder, traffic accident (Gidabo) , flood hazard
occurred during the project execution of the project that damaged 21 km main canal, blustering
(Megech), collusion of heavy tracks & damage of light vehicles by falling of big rock from high
level (Megech), failure of water tank, sliding of stone/rock and high ponding of water (Megech),
stone fall on quarry site( Mazoria), high speed wind having much amount of dust and including
heavy rain (Dulecha), because of not using of safety measures ( protective equipment) during
heavy crusher maintenance loss of life (Dulecha), slide of excavated soil and
thunderstorm(Kong), land slide, high flood and heavy rainfall.(Jinka).

Table 10: Technical task (competency)

S. Statements Mean SD
No
1 The required technology is available in the project/corporation 2.38 0.960
2 The project manager has sufficient experience, technical 3.81 0.904
knowledge and skill
3 The other project personnel’s have enough knowledge to operate 3.49 0.898
with the existing technology
To assess the practice of technical competency three variables are included in the study. n
technical competency. Grand mean and standard deviation are 3.23 and 0.921. The mean for
availability of the required technology in the project (corporation) is 2.38, which is below the grand mean
shows poor in possessing the required technology that is necessary for effective performance of projects.
Whereas the of the other two variables are greater than the grand mean shows better performance.
The majority response shows the corporation lacks the required technology in road, building and
water infrastructure projects. To fill this gap the corporation basically uses rental mechanism to
solve the shortage of construction machinery and equipment. The management of rental
machinery and equipment by itself a headache and is one of the sources of rental customers
dissatisfaction and hindering the better performance of projects.
Initial cost estimate
Initial cost estimate is one of the factors for proper execution and profitability of construction
projects. This requires detail understanding and information of projects site or area in terms of
availability of local materials, labor, distance from the main city to transport different factory
materials, etc. To assess this, two variables are included in the study are the initial project
estimate (cost & schedule) complete & realistic before performance began, and during project
execution the actual cost & time schedule are compatible with the initial estimate.

Table 11: Initial cost estimate

1 the initial project estimate (cost & schedule) complete & realistic 2.03 0.827
before performance began
2 During project execution the actual cost & time schedule are 1.96 0.768
compatible with the initial estimate
The grand mean and standard deviation for initial cost estimates are 2.00 and 0.798. The mean of
the two variables are below the grand mean. This implies disagreement and shows there is a
problem of initial cost and schedule estimate. According to road sector contractor most of road
projects are the victims of this problem. The financial report of consecutive years that shows
profit and loss statement of the corporation reveals that the road projects are in loss.

Table 12: Profit & Loss Statement

s.no Budget year Project Name
Kong Jinka Dima Mazoria Dulecha Awash
1 2007 52,092,048.44 29,127,082.83 (3,971,096.09)
2 2008 90,125,000.00 (3,575,364.98) 24,466,182.00 11,108,305.31
3 2009 54,606,743.00 25,087,145.68 58,098,196.00 (11,894,935.38) (46,865,418.54)
4 2010 (38,637,920.48) (19,587,832.30) 97,323,498.07 (33,155,056.80) (88,382,650.94)
5 2011 (68,017,379.55) (70,470,035.07) (13,277,308.78) (21,366,711.44) (35,023,509.40)
MELES ISLAMIC ICT land scape NIGAT ICT Village/ park/
2 2008 (616,127.67) (359,196.49)
3 2009 457,182.36 (2,140,476.12) (968,007.17) (544,621.16)
4 2010 7,942,181.27 (87,410.47) 10,082,163.62 1,249,211.58
5 2011 17,809,486.00 4,775,965.77 (1,074,231.54) (468,862.35)
Tendaho Dam Megech Dam Rib Dam Gidabo Dam Kuraz Dam
1997 (13,417,018.72)
1998 (23,164,486.49)
1999 (49,902,207.68) (2,738,751.46)
2000 (56,781,132.61) (2,520,747.98) (6,754,426.59)
2001 (209,748,889.03) (1,154,834.19) (4,085,691.32)
2002 175,209,979.71 (58,099.40) (12,808,530.15) 6,957,760.88
2003 102,684,232.37 (121,620.04) (7,397,161.49) 12,367,839.80 12,660,199.10
2004 (32,012,784.38) (1,294,157.81) (48,917,524.13) (20,625,451.38) 20,015,100.60 73,721,591.54
2005 206,052,956.69 (12,268,430.79) (226,791,051.59) 319,767.64 66,515,330.51 16,455,634.15
2006 458,256,046.41 (53,953,828.99) 85,704,902.34 (29,394,208.15) 72,087,479.37 74,163,005.91
2007 1,081,091,515.70 193,122,578.91 924,232,316.62 (17,334,306.36) 28,667,277.54 21,187,114.22
2008 44,343,031.45 117,549,411.05 153,599,902.24 (47,819,059.88) 27,934,837.02 (62,606,289.80)
2009 404,787.59 111,642,173.76 34,204,252.98 190,698,254.08 44,030,336.49 311,848,844.32
2010 110,130,937.55 (27,755,472.65) (228,256,499.32) (62,470,000.01) (189,882,050.38)

5.8. Profit and loss trend in road projects.
Kong
100,000,000
50,000,000
- Kong
2007 2008 2009 2010 2011
(50,000,000) 1 2 3 4 5
(100,000,000)
Jinka
40,000,000
20,000,000
-
(20,000,000) 1 2 3 4 5 Jinka
(40,000,000)
(60,000,000)
(80,000,000)

Dima
120,000,000
100,000,000
80,000,000
60,000,000
Dima
40,000,000
20,000,000
-
1 2 3 4 5
(20,000,000)
Mazoria
20,000,000
10,000,000
-
1 2 3 4 5
(10,000,000) Mazoria
(20,000,000)
(30,000,000)
(40,000,000)
Dulecha Awash
$-
1 2 3 4 5
$(20,000,000)
$(40,000,000)
Dulecha Awash
$(60,000,000)
$(80,000,000)
$(100,000,000)

5.9. Profit and loss trend in Building projects.
MELES
20000000
15000000
10000000
MELES
5000000
0
2007 2008 2009 2010 2011
1 2 3 4 5
ISLAMIC
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
ISLAMIC
1,000,000
-
(1,000,000) 1 2 3 4 5
(2,000,000)
(3,000,000)

ICT
12000000
10000000
8000000
6000000
ICT
4000000
2000000
0
-2000000 1 2 3 4 5
NIGAT
1,500,000
1,000,000
500,000
NIGAT
-
1 2 3 4 5
(500,000)
(1,000,000)

5.10. Profit and loss trend in water projects.
TENDAHO DAM
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000 TENDAHO DAM
200,000,000
-
(200,000,000)
(400,000,000)
MEGECH DAM
$250,000,000
$200,000,000
$150,000,000
$100,000,000
MEGECH DAM
$50,000,000
$-
1 2 3 4 5 6 7 8 9 10 11 12 13 14
$(50,000,000)
$(100,000,000)

RIB DAM
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
RIB DAM
$200,000,000
$-
1 2 3 4 5 6 7 8 9 10 11 12 13 14
$(200,000,000)
$(400,000,000)
GIDABO DAM
250000000
200000000
150000000
100000000
50000000
0 GIDABO DAM
-50000000 1 2 3 4 5 6 7 8 9 10 11
-1E+08
-1.5E+08
-2E+08
-2.5E+08

MODJO
100000000
50000000
0 MODJO
1 2 3 4 5 6 7 8 9 10 11 12 13 14
-50000000
-1E+08
KURAZ DAM
$400,000,000
$300,000,000
$200,000,000
$100,000,000
KURAZ Dam
$-
1 2 3 4 5 6 7 8 9 10 11 12 13 14
$(100,000,000)
$(200,000,000)
$(300,000,000)
The data of water projects in the above table shows profit and loss for maximum and minimum
of 13 & 7 years respectively. All the three-sector data of PL shows since commencement of
projects. In most of water projects large amount of profit occurred as a result of contract
amendment; which enables the contractor to get back payment in that particular year boosts the
amount of profit.

Table 13: Top management support
1 top management supports the project with commitment and 3.19 1.181
encouragement
2 The top management assigned strong, clearly identified the project 3.34 1.165
leadership
3 Strong Project Monitoring and feedback given by top management 2.65 1.010
4 Top management’s enthusiastic support to the project manager 2.90 1.131
(PM) and project team at site
5 Delegating authority to project manager by top management 3.25 1.137
To assess the support of top management to projects five variables are be part of the study. The
grand mean is 3.07. Out of five variables two variables score the mean value less than the grand
mean. This implies poor Project Monitoring and feedback giving practice & poor enthusiastic
support to the project manager (PM) and project team at site. However, the mean score of the
rest three variables are greater than the grand mean shows better top management support.
According to the interview especially with the road and water sector top management
representative assures that monitoring and evaluation of project is not satisfactory and not
regularly done. To undertake continuous and periodic project monitoring, the issues which were
raised by projects in the past monitoring time have to be solved before the next monitoring. But
solving of project problems’ (issues) was poor at the head office. This did not encourage to
regularly monitoring projects. The practice of giving feedback regularly is also poor. This is not
encouraging to monitor projects without solving the problems of projects. The supporting
problems of the head office basically were poor supplies of resource, and finance. The resources
are mainly factory materials, construction equipment’s, and machineries.

Table 14: Project planning and scheduling

1 The project plan consists of clear work item with budget 3 .48 1.008
2 The plan included methods and frequency of communication 2.90 1.046
among stakeholders and other personnel
3 The project plan incorporates monitoring and evaluation activity 2.84 1.113
4 The project has realistic time schedules that is achievable 2.23 0.902
Planning and scheduling practice of the construction projects were part of the study. The
assessment shows the grand mean is 2.86. The response for the practice of project plan consists
of clear work item with budget shows positive response. Two variables response (The plan
included methods and frequency of communication among stakeholders and other personnel, &
the project plan incorporates monitoring and evaluation activity) implies slightly good but
demands further improvement. Negative response revealed for the variable projects has realistic
time schedules that are achievable. The mean score for this variable is 2.23 below the grand
mean of 2.86.
5.11. Resources management
Project resource management is the processes of planning the resources necessary to meet the
objectives of the projects, and to satisfy the clients’ requirement. Without proper resource
management, projects can fail behind schedule, or can become unprofitable. The objective here
is to ensure the adequate and timely supply of resources and at the same time maximizing the
utilization of resources between projects. With regard to these four variables are included to
assess resource management practice of the corporation/projects.
The analysis shows the grand mean of 2.35 which shows poor performance of resource
management.
Out of four variables the mean score for the variable availability of skilled personnel is 3.38
which are greater than the grand mean of 2.35. The mean score of the two variables (all the
required resources are available on time & the procurement process is efficient to deliver the

material or service on time) are 1.84 and 1.78 below the grand mean shows very poor resource
management with these respects. The response for having sufficient resource planning to adequately
obtain resource for the job shows the mean score 2.38 which is slightly greater than the grand mean score
of 2.35. I have tried to find out the reasons for poor resource management by interviewing the
procurement and supply main department executive officer. The reasons mentioned were lack of
foreign currency, delay of payment for suppliers which demotivated them to participate for the
next bid, poor cash flow, lack of specified items on the market, unclear specification, and lack of
integration among procurement committee are some to mention.
Table 15: Resources management
1 All the required resources are available on time 1.84 0.488
2 There is availability of skilled personnel 3.38 0.932
3 The project deploys sufficient resource planning to obtain 2.38 0.932
adequately skilled resource for the job
4 The procurement process is efficient to deliver the material or 1.78 0.448
service on time
5.12. Favorable working condition
For the sake of this study four factors assessed are favorable climatic condition at the site,
favorable social environment, favorable political and economic environment and favorable
camping accommodation for employees. All road and water infrastructure projects are located
far away from the head office. Employees of these two types of projects live in a camp. It is
obvious that favorable camping accommodation increases the motivation of employees to work
hard in the project. This will increase the success of projects. As shown on the above table the
grand mean is 3.13. The mean score of two variables (climatic condition at the site & camping
accommodation) are slightly above the grand mean. However the mean score for favorable social,
political and economic environment (3.00 & 3.12) are below the grand mean.

Table 16: Favorable working condition

1 Favorable climatic condition at the site 3.16 1.268
2 Favorable social environment 3.00 1.246
3 Favorable political and economic environment 3.12 1.135
4 Favorable camping accommodation for employees 3.2 1.1
5.13. Project Monitoring, evaluation and feedback
Monitoring is the day-to-day management task of collecting and reviewing information that
reveals how an operation is proceeding and what aspects of it, if any, need correcting. It is a
continuing function that uses the systematic collection of data on specified indicators to inform
management and the main stakeholders of an ongoing projects operation of the extent of progress
and achievement of results in the use of allocated resources and budgets. Evaluation is the
systematic and objective assessment of an on-going or completed projects operation, its design,
implementation and results. The aim is to determine the relevance and fulfillment of objectives,
as well as efficiency, effectiveness, Impact (overall Goal) and sustainability. An evaluation
should provide information that is credible and useful, enabling the incorporation of lessons into
management decision-making.
Three variables are included to assess the practice of monitoring and evaluation. As shown on
the table below the grand mean is 2.72. Out of three variables the mean score of two variables
(regular and careful progress monitoring and review throughout the project & gives periodic
feedback) are 2.40 and 2.12 below the grand mean shows poor monitoring and evaluation
practice. But the reporting of project performance mean score is 3.64 above the grand mean
implies better reporting practice.

Table 17: Monitoring, evaluation and feedback

1 There is a regular and careful progress (time, scope, and cost) 2.40 0.936
monitoring and review throughout the project
2 There is a necessary report on the project performance relative to 3.64 0.958
established objectives (e.g., budgets, cost, and quality)
3 Corporation gives periodic feedback on project performance & 2.12 0.917
takes corrective action.
5.14. Communication management of projects
Project Communication Management Are the processes that are required to ensure timely and
appropriate planning, collection, creation, distribution, storage, retrieval, management, control,
monitoring, and the ultimate disposition of project information. Importance of Communications
Management are the project manager should effectively and efficiently communicate with
stakeholders, managing communications is very vital for any project and a failure in
communication can have a negative impact on the project. Project managers spend most of their
time (about 90%) communicating with team members and other project stakeholders internal or
external to the organization.
To assess management of communication three variables are included in the questioner. The
grand mean is 3.10. The mean score of existence of communication plan and communication
effectiveness (3.27 & 3.14) are greater than the grand mean. However, clear and easy line of
communication channel mean score is below the grand mean.

Table 18: Communication Management

1 The communication plan is in place in the project/corporation 3.27 1.059
2 There is effective communication between project stakeholders, 3.14 1.035
team, and personnel
3 There is a clear and easy channel of communication 2.90 1.033
5.15. Client Support
A client is anyone who has construction work carried out for them. A close relationship between
client and contractor is important for any construction project success. A good working
relationship should be based on trust and understanding between all parties and if managed
correctly beneficial to both parties. Client relationship not managed appropriately it can have a
detrimental effect on the relationship and costing both time and money.
The main clients of ECWC are ERA for road construction, Ministry of Water, Irrigation and
Energy for Dam and Irrigation projects and different Building projects clients.
Client’s project monitoring, evaluation and giving feedback to contractor initiate contractor to be
more focused on the project work. As shown on the table below the grand mean is 2.92.
Table 19: Client support
1 There is periodic project Monitoring, evaluation and feedback by 3.21 1.068
client
2 There is Understanding of operational difficulties by the client 2.91 1.114
engineer & taking appropriate decisions
3 Clients solved any compensation issues of the project 2.55 1.176
4 Client interference in the project work is supportive 2.99 1.282
Out of four factors in the client support, periodic project Monitoring, evaluation and feedback, &
interference in the project work (3.21 & 2.99) shows agreement whereas the mean score for the factor
solving of any compensation issues of the project below the grand mean shows the common problems of

clients in all projects under study. Compensation issue is the basic problem of all of the road, water
and building construction projects. This affects the successful performance projects and source
of cost overrun for contractors. All party of construction should act according to the contract.
The interference of client without contractual agreement has a negative effect for the successful
performance of projects. According to the interview with clients of water infrastructure projects
(Ministry of Water, Irrigation and Energy) assigned representative at each project site. In road
and building projects client representatives are consultants. This helps clients to have periodic
project monitoring and evaluation.
5.16. Consultant relationship

Feasibility studies are preliminary studies undertaken in the very early stage of project. The
purpose is to establish whether the project is viable, identify feasible option, etc. The assessment
carried by consultant companies and the client decide whether or not to proceed to the next stage.
Five consultants’ related factors are included in the study. The grand mean is 2.36, which is
below the average 2.5. All the factors such as feasibility study that is realistic to the project situation,
Submit complete design & specification, Solve any design & other consultant related problems on time,
estimate of contract schedule & work volume is realistic, Consultant staff is fully authorized to solve
problems on the project site shows poor performance that affects project success.
In the interview with the consultant of water project, the time given to undertake detailed
feasibility study was not enough and we were forced to prepare a feasibility study that was not
fully describe the project. This is the source of design problem also. However, in the road and
building projects the problem is minimal. The reason mentioned for this problem were initially
projects were initiated as a fast track projects by political leaders (water projects) and in building
projects the problem is basically clients and consultants own problem.
Making decision on time and solving of problems such as design, approval of material and,
payment and other consultant concerned issues at project site affects the prompt delivery of the
project.

Table 20: Consultant

S. No Consultant Mean SD
1 The project has detailed feasibility study that is realistic to the 2.35 1.109
project situation
2 Consultant Submit complete design & specification 2.55 1.130
3 Consultant Solve any design & other consultant related problems 2.31 0.921
on time
4 Consultant estimate of contract schedule & work volume is 2.40 0.877
realistic
5 Consultant staff is fully authorized to solve problems on the 2.2 1.1
project site
5.17. Project manager
The traits of project manager are: - PM has to be enthusiastic and optimistic about all his
projects, He had excellent relationships with all his client and project staff, He knew how to
work with people and showed his appreciation for good work on his project, He knew what was
expected from him and was dynamic in moving forward with the next series of tasks. The
following personal attributes demonstrate the profile of a good project manager: Self-confident,
Problem solver, Good listener, Able to gain the respect of the team, an effective communicator,
Capable of reacting dynamically and making decisions quickly, considered a professional, a team
player and Knowledgeable about project management. (Jason Charvat, 2002)
To assess the competency of project manager seven variables are included in this study. The
grand mean is 3.9. All the variables except delegation of authority and making financial
decisions have the mean score greater than the grand mean. This shows the corporation has
project managers with good competency.

Table 21: Project manager

S. No Project manager Mean SD
1 PM has strong Coordinating ability and mutual relationship with 3.97 0.668
his team members, client, consultants and sub-contractor
2 Project manager’s has authority to take financial decision, selecting 3.70 1.001
key team members, etc.
3 PM is Effective in monitoring and giving feedback 3.97 0.688
4 PM Coordinating ability and mutual relationship of with top 4.03 0.725
management is strong
5 Project manager’s has good technical capability 3.92 0.957
6 PM delegate authority to various members of his team 3.71 0.958
7 Developing and maintaining a short and informal line of 4.01 0.698
communication among project team
3.9 0.814
In my questioner I have tried to get information regarding the reasons why project manager
leaves a project. It is recommendable managing projects by one competent project manager from
initiation up to closing of project. Rather when one project manager leaves a project, the
replacement of the new project manager is costly for contractors. In terms of this the rotation or
leaving of project manager is common in road construction project. For example, in Jinka
Mender project it reaches 5 in number. This by itself is a factor to delay the performance of
projects.
5.18. Team management
What sets project teams apart is that a group of people, who may never have worked together
before, have to come together quickly and effectively in order to achieve a task which nobody
has done before. The novelty, uniqueness, risk, and transience are all inherent features of
projects. Because the team is novel, it has no perceived identity, and no set of values or norms to
work to. It takes time to develop the identity and norms, which delays achievement of the team’s
objective. (Turner, 2009). The assessments of team management in the projects were studied by
incorporating six factors related to team management. The grand mean is 2.73. out of six
variables four variables (regularly give feedback to each other, effective meetings which are well
facilitated, Turnover of key personnel is low, & overtime payment and other benefit package is attractive)

scores mean value less than the grand mean. The mean values of culture of team work and
understanding of strength and weakness of the teams have mean value greater than the grand
mean shows relatively better performance.
Table 22: Team
S. No Team Mean SD
1 There is a culture of team work in the project/corporation 3.00 1.192
2 team members understand the strength and weakness of the teams 3.25 1.028
3 team members regularly give feedback to each other 2.52 1.083
4 team members have effective meetings which are well facilitated 2.65 1.144
5 Turnover of key personnel is low in the project / organization 2.73 1.131
6 The practice of overtime payment and other benefit package is 2.22 0.955
attractive
2.73 1.089
Regarding turnover of key personnel, the response shows how the problem is chronic.
According to the report of human resource department the turnover data for the last 3 and half
years indicates the problem. As shown on the table below the total average employee turnover
rate of the corporation from 2009 to 2012(1/2years) is 8.35%.
Table 23: turnover data of Employees
Termination Budget Years

No Total number
reasons 2009 2010 2011 2012(1/2 year)
1 Retirement 156 108 146 122

532
Own
2 131 183 255 188 757
resignation
3 Dou to death 22 30 15 11 78
Total number 309 321 416 321 1367
Most of employees leaving the corporation are the professionals, sub-professionals and
equipment operators. These employees are highly skilled, seniors, more experienced, key and
core staffs of the company. They are not easily gain in the market.

Chapter Six
6. Summary Conclusion and Recommendation
This section forwards the conclusions of the research based on the major findings stated in the
previous chapter data analysis and discussion. Brief conclusions are summarized to the findings
and finally helpful recommendation for the research problems will also be forwarded.
6.1. Conclusions and Recommendation.
➢ The major finding of the analysis part of this research shows that the trend or tendency of
using construction project management in the project/ corporation is poor. Most of the
response indicates the application of project management science is lagging behind in the
organization. To be competent in this dynamic market the implementation of project
management for this company is not negotiable.
➢ Knowledge of Project goals /objective response shows positive for variables of overall
goals are clear and stakeholders’ roles and responsibilities clearly defined. However, the
problem observed is the time allotted to achieve the given goal was not enough. This
indicates goal setting in terms of allocating time and schedule has a problem. This should
be solved by applying realistic estimation of time. The project time estimation initially
done by consultant. As a contractor the time estimate of consultant should be verified by
using past experience and applying the new construction methodology that will help to
shorten the length of project duration. To have a good time estimate, the corporation has
to secure the final design of the project and the design has to be reviewed before
commencement of project execution.
➢ In terms of customer the variables included in the study are identification, involvement
and satisfaction. With regard to Identification and definition of customer the response is
positive. Involvement of customers throughout the project is slightly good but needs
more improvement to get more customer ownership of the project. Customer
requirement communication before the project began and Customer satisfaction in the
performance of project needs further work to improve. This is because of the fact that
almost all projects are lagging behind from its schedule in one hand and late

entertainment of customer requirement (common problem in Road project) is a source of

cost for the corporation. Late customer requirements are initially the problem of
consultant and client which emanated from failure in the design preparation from the very
start. In accommodating late customer requirement, the corporation should request the
current or up to date market price rather than the contract price already working on.
➢ The response of safety and health issue management shows poor performance. In all of
the variables included in the study the response shows negative which denies the
existence of the service. The corporation should work in Identification of Risks related to
safety and health, should communicate the identified risk with its employees, need to
have a mitigation plan, make available safety materials /PPE/ for all concerned staffs,
and should have its own safety related legal document such as safety policy, directives
and manuals as a working procedure. In addition, strengthening of existing un functional
health and safety working section is required. Appointment of safety engineer in all
construction project will help the company to take preventive actions there by saving the
extra costs incurred in the time of hazard management. These will help protect the loss of
life or damage of productive persons of the project which occurs in the execution of
projects, thereby decreases the wastage of time of the project and hence increases the
successful performance.
➢ With regard to technical competency assessment the availability of the required
technology response shows negative, while the response for the sufficiency of
experience, technical knowledge and skill of project manager and the other project
personnel’s knowledge to operate existing technology shows positive. There for
corporation hast to work to possess the required technology related to construction works
such as machinery and equipment, implementation of ERP (Enterprise Resource
Management), IBM / Information Modeling Technology /, project management System,
etc. to improve existing back ward processes.
➢ This study shows the initial project estimate (cost & schedule) is poor. The estimate and
the actual cost & time spent are not compatible. This problem is common in the road
projects where the corporation own the project by competing with other companies in the
biding processes of ERA. There for it is recommendable to have detail preliminary study

and project site information before estimating the project cost and schedule. This problem
currently made the corporation to pay a cost and leads the project in to loss.
➢ Top management support includes the head office management. The assessment is done
to check the support of top management in terms of showing commitment and
encouraging the project teams, assignment of strong project leadership, project
monitoring and giving feedback, enthusiastic support to the project manager (PM) and
project team at site, and delegation of authority to the project managers and down ward to
project management team. The response shows positive support with regard to
commitment and encouragement, assignment of strong project leadership and delegation
of authority to the project managers. However, the support of top management in relation
to project monitoring and giving feedback and giving enthusiastic support to the project
manager (PM) and project team at site needs further improvement.
➢ The problem related to planning identified are methods and frequency of communication
with stakeholder and other personnel, and monitoring and evaluation strategy of projects
are not considered part of planning. It is better to incorporate communication with
stakeholder and monitoring and evaluation activity part of planning enables the project to
provide to date information and to get the required support from stakeholders and to take
corrective actions when deviation against plan occurs.
➢ To assess resource management practice of projects five variables are included in the
study are timely delivery of resource, availability of skilled personnel, resource planning,
and efficiency of procurement process. The response for almost all variables shows poor
resource management except availability of skilled personnel. It is serious problems of
the corporation. All types of project included in the sample complain and blame the
resource delivery system of the corporation. Therefor corporation should work hard to
establish efficient and integrated resource management system, delegating more
procurement related authority to projects. The main problems mentioned for poor
resource management are lack of hard currency, and cash flow. To solve the problem of
foreign currency it is advisable to introduce the role of corporation and the consequence
of the problem to concerned government bodies. The problem resulted in making idle
labor and leading the company to more loss. Since the company is public enterprise the

government should give due attention to solve the scarcity of hard currency. On the other
hand, it is better to get the material from local market or from local supplier, because
local suppliers can have better access to import materials than Government Company.
The other remedy to solve the problem is to make long term credit supply agreement with
genuine suppliers. This requires strong credit management. These enable corporation to
ensure adequate and timely supply of resources at the same time maximizing the
utilization of resources between projects.
➢ In the study the assessment of the practice of regular monitoring and review of projects,
reporting of the project performance against budget, cost and quality, and Giving
feedback and taking corrective action was done. The result shows that positive response
for reporting of the project performance, however for the other two, regular monitoring
and review of projects and giving feedback and taking corrective action performance is
poor. Corporation has to work to improve its project monitoring and evaluation activities
(practices) of project.
➢ The assessment of communication management is done by incorporating variables of the
existence of communication plan in the project / corporation, effectiveness of
communication among project stakeholder, teams and personnel, and existence of clear
and easy channel of communication. The positive response showed in the above two
variables except existence of clear and easy channel of communication. This is basically
associated with water and road infrastructure projects. These projects are located in
remote areas of the country and far away from the capital city of Addis Ababa and
communication channel is a problem for them. Corporation has to solve this problem
closely working with Ethio telecome to make the projects accessible to different types of
communication channels.
➢ The study shows there is a problem associated with the consultant. The response for all
variables included in the study such as delivering of detailed feasibility study that is
realistic to the project situation, Submitting of complete design & specification, timely
solving of problems such as design, payment and other consultant concerned issues at
project site, consultant estimate of contract schedule and work volume is realistic, and
Consultant staff is fully authorized to solve problems on the project site are not

satisfactory or shows poor performance. The reason for poor performance is in one hand
the consultant its own problem on the other hand the push factor imposed from political
leaders.
➢ Consultants are recommended to facilitate and hasten orders delivered to contractors,
issue site instruction on time to obtain better time performance, timely approval of
payment and material according to the condition of contract. What I observed is the
contractor lacks capacity to present the claim related to consultant failure. This is because
of the problem of contractor more outweighs than the problem of consultant. To solve
such types of problems the clients need to have a project office which is equipped with
knowledgeable of contract management personnel. This staff helps to solve problems of
contractor and consultant at project site.
To mitigate the problems of political leaders / urgency of the project in design
preparation/ it is advisable for Consultant Company to solve the data collection by using
drone technology. This technology enables the consultant to have survey data of the
project site with in short period of time. The Ethiopian design corporation had experience
of drone technology when the corporation undertakes design works of two projects in
Nigeria. According to the interview with design corporation representative, in these two
projects the Algerian company undertaken surveying works by using drone technology.
The drone technology not only makes survey data collection easy but also solves the
problems of jungle site clearance. To make the site accessible for survey work the jungle
must be cleared by using labor works. The labor work is risky and time consuming
because most of irrigation and dam projects are found in lowland parts of the country and
are not accessible.
The contractor should work based on the contract document and have to exercise the
claim management for the failure of consultants. The corporation should establish joint
monthly meeting at the head office with the concerned clients and consultants of the
respective projects, since most of the head office of consultant and clients are found in
Addis Ababa.
➢ The variables used to assess the project manager project management practice are project
manager ability and relationship with project stakeholders, Project manager’s has

authority to take financial decision, selecting key team members, Project manager ability
of project monitoring and giving feedback, Project manager relationship with top
management, Project managers technical capacity, Delegation of authority down wards to
project management team, informal line of communication among project team. The
response of respondents for all variables shows positive response. But it has to be
supported in updating the project managers’ capacity by using different types of training.
➢ The practice of team management is assessed in terms of variables which includes
existence of team work culture in the corporation or projects, team members understand
the strength and weakness of their team, team members giving feedback to each other, the
effectiveness of meeting trend of project team, turnover of key personnel, and the
practice of attractiveness of overtime payment and other benefit package.
The response shows slightly positive response for existence of team work culture and
team members understand the strength and weakness of their team. However, the
response for other variables shows disagreement. This indicates poor team management
in the project /corporation/. This associated with lack of or poor project management in
the corporation in one hand and the poor performance management system of the
corporation; where employees are not evaluated against their performed output. No
systems established to manage the performance of employees. This requires due attention
of the corporation management to place the project management with its full package.
➢ The corporation has tough challenges from local private and foreign contractors. The
corporation has many resources of machinery and man power. As a huge public
construction company, it is unable to dominate and lead the construction market of the
country. Now a day the Chinese contractors dominate the countries construction market
in building, water and transport infrastructure construction. This is a very chronic threat
to the corporation unless it changes its methodology and equipped with the necessary
technology it is difficult to exist in the market. In the dynamic construction industry no
one wants inefficiency. The company has to be competitive. Therefore, what I
recommend is realistic implementation of project management and performance
management system in the corporation has to be the top agenda of the corporation
strategic management.

6.2. Recommendations
➢ To exist in this dynamic construction market and to compete with the local and foreign
contractors the corporation has to implement the project management in its all
construction sectors.
➢ The main problem observed in this study shows that in the corporation lack of proper
project management leads to poor implementation of the integration management and
poor alignment of different function.
➢ The main problem of projects or corporation is the lack or poor practice of project
management. Even the existing backward and more mechanical management system
lacks integration and alignment. No one is responsible for poor performance of projects
and there is no accountability system established in place. Construction project
performance relies on different dimensions of project management. Among those,
integration management is the most important since it starts with the integration of
processes and people within a construction project or corporation.
➢ The corporation has to differentiate its source of problems (internal and external). Most
of the problems contributed for unsuccessful performance of projects are internal to the
company such as lack of or poor project management, goals with unrealistic time
estimate, poor safety and health management (the existing systems more focused on
hazard management), poor initial cost estimate, poor project monitoring, evaluation and
giving feedback, poor project planning in terms of estimating time and cost, poor
resource management system, and poor team management. The external problems
perceived in the study are problems associated with consultants and clients. The problem
of client is delay payment, write off way problem, and entertainment of late customer
requirement in the project site (which should be done in the initial stage of the project).
The problem of consultant should be solved by really applying the contract document and
regular periodic progressive three-party joint meeting at project site with the project team
and at higher official levels at the head office level.

7. References
• Anu, A,et, al. (2006). Investigation of critical success factors in construction project
briefing of content analysis. Journal of Construction Engineering and Management,
132(11):1178–1186
• A Guide to Project Management Body of Knowledge, (PMBOK Guide), 6th Edition,
Project Management Institute, 2017.
• Arslan, G., Kivrak S., “Critical Factors to company success in the construction industry”,
International Journal of Human and Social Sciences, 4(8), 561-564, 2009
• Arslan, and S. Kivrak, Critical Factors to Company Success in the Construction Industry,
World Academy of Science, Engineering and Technology, Vol. 9, PP 43- 46, (2008).
• Association for Project Management. (2012). APM Body of Knowledge (6th ed.).
Buckinghamshire.
• Baker, N. B., Murphy, D. C., & Fisher, D. (2008). Factors Affecting Project Success. In
D. I. Cleland, & W. R. King (Eds.), Project Management Handbook (2nd ed., pp. 669-
685). New York: John Wiley & Sons, Inc.
• Beleiu, I., Crisan, E., & Nistor, R. (2015). Main Factors Influencing Project Success.
Interdisciplinary Management Research, 11, 59-72.
• Chan A P C., Scott, D., and Lam, E.W.M. (2002). Framework of success criteria for
design/build projects. ASCE Journal of Management in Engineering, July 2002a, 120-
128.
• Charles O’Neil, FCIArb (2019). Global Construction Success. Contract Dynamics
Consulting. With contributions from 17 industry leaders, John Wiley & Sons Ltd.

• Charvat Jason, (2002) Project Management Nation: Tools, Techniques, and Goals for the
New and Practicing IT Project Manager. Occupational Health and Safety in Construction
Project Management.
• Cooke-Davies (2002). The real success factors on projects. International Journal of
Project Management 2002.
• De Wit, A., (1988). Measurement of project success. International Journal of Project
Management 6 (3).
• Helen Lingard and Steve Rawlinson, (2005). Occupational Health and Safety in
Construction Project Management. London and New York.
• International Project Management Association. (2006). ICB - IPMA Competence
Baseline, Version 3.0 (ICB Version 3.0 ed.). Nijkerk.
• J. Rodney Turner (2009), the handbook of project-based management. Leading Strategic
Change in Organizations. Third Edition, New York.
• Kerzner H, (2017). A Guide to Measuring and Monitoring Project Performance. Third
Edition, the International Institute for Learning.
• Kerzner H, (2017). Project Management A Systems Approach to Planning, Scheduling,
and Controlling. Twelfth edition. John Wiley & Sons, Inc.
• Kerzner H, (2010). Managing complex projects. John Wiley & Sons, Inc.
Kothari C.R, (2004). Research Methodology, Methods and Techniques. Second Revised
Edition. New age international publisher.
• Kumar Neeraj Jha. (2013). Determinants of Construction Project Success in India. Indian
Institute of Technology, New Delhi. India.

• Le-Hoai, L., Lee, Y. D., & Lee, J. D. (2008). Delay and cost overruns in Vietnam large
construction projects: a comparison with Other Selected Countries. KSCE Journal of
Civil Engineering, 12(6), 367–377.
• Ling Keng Zheng, (2017). Comparing the project success factors perceived by the project
managers of different industries in Malaysia. A project report submitted in partial
fulfilment of the requirements for the award of Master of Project Management. Faculty of
Engineering and Science. University Tunku Abdul Rahman.
• Marteralla, J. (2007). The eight success factors of a high-performance sales and
marketing organization. A Chally Focus Article, Sales and Marketing: Executive
Strategies for Growth.
• Marwa Gamal Swefie Fall (2013). Improving Project Performance Using Lean
Construction in Egypt. The American University in Cairo School of Sciences and
Engineering Construction and Architectural Engineering.
• Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management:
linking project management performance and project success. International Journal of
Project Management, 32(2), 202-217.
• Morris and Hughes (1987). The anatomy of major projects: a study of the reality of
project management. Chichester: John Wiley and Sons.
• Munns, A. K., & Bjeirmi, B. F. (1996). The role of project management in achieving
project success. International Journal of Project Management.

• Ogwueleka, The Critical Success Factors Influencing Project Performance in Nigeria,
International Journal of Management Science and Engineering Management,
Proceedings, Vol.6, No. 5, April, PP 342-349, (2011).
• Park, S. (2009). Whole life performance assessment: Critical success factors.
• Pinto, J.K. and Slevin, D.P., “Critical success factors in effective project implementation,
“in Cleland, D.I. and King, W.R., (eds.), Project Management Handbook, 2d ed., New
York, N.Y. Van Nostrand Reinhold, 1988.
• Parfitt, M. K., & Sanvido, V. E. (1993). Checklist of critical success factors for building
projects. Journal of Management in Engineering, ASCE, 9(3), 243–249.
• Plan Commission of Ethiopia. (2019). Ten years GDP data. Addis Ababa, Ethiopia.
• Project Management Institute, Inc. (2013). A Guide to the Project Management Body of
Knowledge (PMBOK® Guide) (5th ed.). Newtown Square, Pennsylvania: Project
Management Institute, Inc.
• Roger Gibson. (2015). Disruption and Productivity Loss on Construction and
Engineering Projects. John Wiley & Sons, Ltd, the Atrium, Southern Gate, Chichester,
West Sussex, PO19 8SQ, United Kingdom.
• Radosavljevic, M., & Bennett, J. (2012). Construction management strategies: a theory of
construction management. London: Wiley-Blackwell.
• Salleh, R. (2009), Critical Success Factors of Project Management for Brunei
Construction Projects: Improving Project Performances.

• Saif Ul Amin, et,al, (2016). Influence of Project Management Performance Indicators on
Project Success in Construction Industry of Punjab, Pakistan International Research
Journal of Management Sciences. Vol., 4 (8), 511-520, 2016
• Savolainen, P., Ahonen, J. J., & Richardson, I. (2012). Software development project
success and failure from the supplier’s perspective: A systematic literature review.
International Journal of Project Management, 30, 458–469.
• Stefanovic, J., & Shenhar, A. J. (2007). Does Strategic Alignment Contribute to the
Business Success? Linking project Management to business strategy, PMI publication,
213-229.
• Stucken bruck, L. C. (1986). Who determines project success? Proceedings of the 18th
Annual Seminar/Symposium (Montreal/Canada) (pp. 85-93). Upper Darby, PA: Project
Management Institute.
• Sumesh, Sudheer Babul, Sudhakar (2015). Critical Success Factors Influencing
Performance of Construction Projects. International Journal of Innovative Research in
Science, Engineering and Technology. 4, Issue 5.
• Shamas-ur-Rahman (2009). The critical success factors influencing project performance
in Nigeria, journal of construction engineering and management,65(10):289-301.
• Tadesse Ayalew, Zakaria Dakhli, Zoubeir Lafhaj. (2016). Assessment on Performance
and Challenges of Ethiopian Construction Industry. Ethiopian Institute of Architecture,
Addis Ababa University, Ethiopia.

• Ugwu, O. and Kumaraswang, M. (2007). Critical success factor for construction ICT
projects — some empirical evidence and lessons for emerging economies. IT conference
paper, 12:231–249.
• Vijay K. Verma. (1995). the Human Aspects of Project Management. Organizing
Projects for Success. Project Management Institute, Inc. Four Campus Boulward
Newtown Square, Pennsylvania 19073-3299 USA.
• Werku Koshe, K. N. Jha. Investigating Causes of Construction Delay in Ethiopian
Construction Industries. Journal of Civil, Construction and Environmental Engineering.
Vol. 1, No. 1, 2016, pp. 18-29.
• Westerveld, E. (2003). The Project Excellence Model: linking success criteria and critical
success factors. International Journal of Project Management, 21, 411–418.

Annex 1. Questioner
ADDIS ABABA UNIVERSITY
SCHOOL OF COMMERCE
MASTERS OF PROJECT MANAGEMENT
Questioner prepared for respondents for the assessment of factors for successful
performance of construction projects. The case of Ethiopian Construction Works
Corporation / ECWC/.
Dear Respected Respondents,
My name is Tilahun Deneke and I am carrying out a project work to assess the factors for
successful performance of construction projects in the case of Ethiopian Construction Works
Corporation /ECWC/. The information you provide is used for research purpose only, and will be
kept confidential at all levels. Considering your experience in project works, your participation
in this survey will significantly contribute to the accuracy and usefulness of the research
outcome. I appreciate taking your time to complete the survey. I kindly request you to remember
that the quality of this work is completely dependent up on your frank opinions. Please consider
each statement carefully before you give it an evaluation. If you have any query, please do not
hesitate to contact me. I am available at your convenience through Tel. +251960369366
Instruction: -
No need to mention your name (anonymous)
Part I: Demographic data/ Respondent Profile/

Please put tick mark (√) on your choice(s).
1. Please indicate your gender: Male Female
2. Age of respondents (year): 20-29 30-39 40-49 50 and above
3. Level of education: Certificate Diploma BA/BSC MA/MSC
4. Job title..........................................................
5. Work Experience: Less than 5 6-10 years 11-15 years Over 15 years
6. Your area of experience A) more of building B) more of water infrastructure C) road
infrastructure D) design works E) others (please specify) ---------------------------------
7. Would you specify the project currently you worked on -------------------------------------------?

8. Occupational level
A) project manager G) other project personnel

B) human resource manager H) leader staff at the sector/corporation
C) project engineer I) engineering staff at the sector/corporation
D) site engineer J) supportive staff at the sector/corporation
E) supportive staff K) others (please specify
F) office engineer
10. Organization
• Ethiopian Construction works corporation/contractor/
• Consultant
• Client
• Other
General information
1. Are there any success criteria that established among three parties/contractor, client, and
consultant in the project? A) Yes B) No
2. For the above question if your answer is yes would you mention success criteria of the project
---------------------------------------------------------------------------------------------------------------------
-
3. How many project managers are involved in this project from the time of commencement? ----
----------------------------------------------------------------------------------------------
4. Is there any project managers who leave this project? A) Yes B) No
5. For the above question if your answer is yes would you mention the reason why project
manager leave the project--------------------------------------------------------------------------------------
6. Is there any hazard that occurred in the execution of the project? A) Yes B) No
7. For the above question if your answer is yes would you mention the fatalities by loss of life
and property damage in kind and monetary terms /the time period is up to the end of Ethiopian
fiscal year 2011 E.C/-------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------

8. Is there any scope change occurred in the execution of the project?

A) Yes B) No
9. For the above question if your answer is yes would you specify the scope change occurred?
________________________________________________________________________
________________________________________________________________________
10. Why the scope change occurred?
______________________________________________________________________
________________________________________________________________________
11. Is there any plan for scope change management?
A) Yes B) No
12. How can you manage the scope change?---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
13. What is the effect of scope change to three parties? Contractor, consultant & clients
________________________________________________________________________
________________________________________________________________________
Part II
The purpose of the following survey is to get opinion of project staffs and concerned bodies of
project about the factors for successful performance of construction projects. The survey is
completely anonymous. Please think of your project experience in relation to successful and
failed projects give answers for the following questions. Project success means the project
achieves all its objectives; failure means the project did not achieve its entire objective.
1. Please briefly tell us what in your understanding makes project successful
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. Please briefly describe a project which was a success in your organization
________________________________________________________________________
________________________________________________________________________

Part III: General Success Factors of Project Management

1. Do you know the goal of your project /organization/ you are currently working?
A) Yes B) No
2. For the above question if your answer is yes please specify the goal of the project. --------------
--------------------------- -----------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
3. How do you know the goal of the project?
a) From project charter
b) From contract document
c) From joint meeting of contractor, consultant and client
d) From media
e) From other sources ------------------------- (please specify the source)
Part IV
Based on literature review a list of critical success factors (CSFs) that could impact on the
successful performance of construction projects are summarized as follows. Please you are
expected to indicate your opinion on the degree of relevance /importance of each of the CSFs on
the scale 1 up to 5.
To what extend do you think the following factors are critical to successful Project completion.
(5= Strongly Agree, 4= Agree, 3= Neutral, 2= Disagree, 1=Strongly Disagree)
1) Over all Project goals/objectives

S. Project goals/objectives Strongly Agree Neutral Disagree Strongly
No Agree Disagree
1 Overall Project goals and objectives are
2 clear
Roles and responsibilities of stakeholders
are clearly defined
3 Project goals were attainable with in the
time frame

2) Customer /end users of the project / satisfaction

S. No Customer satisfaction Strongly Agree Neutral Disagree Strongly
Agree Disagree
4 Customers were clearly defined
5 Customer were adequately involved
throughout the project
6 Customers are satisfied in the
performance of the project
7 The customer requirement clearly
communicated before the project began
3) Safety and health
S. No Safety and health Strongly Agree Neutral Disagree Strongly

Agree Disagree
8 The project risks related to Safety and
health are clearly identified in the project
plan
9 The identified project risk of Safety and
health is clearly communicated among all
the project teams
10 Risk mitigation plan is prepared and
communicated among project staff
11 All the safety materials /personal
protective equipment’s/ are fully
12 All safety policy, directives and other
working procedures or manuals are in
place
13 Safety engineering department and
experts are available on the project

4) Technical task\competency
S. No Technical task/competency Strongly Agree Neutral Disagree Strongly

Agree Disagree
14 The required technology is available in
the project/corporation
15 The project manager has sufficient
experience, technical knowledge and
skill
16 The other project personnel’s have
enough knowledge to operate with the
existing technology
5) Initial cost estimate

S. No Initial cost estimate Strongly Agree Neutral Disagree Strongly
Agree Disagree
17 the initial project estimate (cost &
schedule) complete & realistic before
performance began
18 During project execution the actual cost
& time schedule are compatible with the
initial estimate
6) Top management support
S. No Top management Strongly Agree Neutral Disagree Strongly

Agree Disagree
19 top management supports the project
with commitment and encouragement
20 The top management assigned strong,
clearly identified the project leadership
21 Strong Project Monitoring and feedback
given by top management
22 Top management’s enthusiastic support
to the project manager (PM) and project
team at site
23 Delegating authority to project manager
by top management

7) Project planning and scheduling

S. No Project planning and scheduling Strongly Agree Neutral Disagree Strongly
Agree Disagree
24 The project plan consists of clear work
item with budget
25 The plan included methods and
frequency of communication among
stakeholders and other personnel
26 The project plan incorporates monitoring
and evaluation activity
27 The project has realistic time schedules
that is achievable
8) Resources
S. No Resources Strongly Agree Neutral Disagree Strongly
Agree Disagree
28 All the required resources are available
on time
29 There is availability of skilled personnel
30 The project deploys sufficient resource
planning to obtain adequately skilled
resource for the job
31 The procurement process is efficient to
deliver the material or service on time
9) Favorable working condition

S. No Favorable working condition Strongly Agree Neutral Disagree Strongly
Agree Disagree
32 Favorable climatic condition at the site
33 Favorable social environment
34 Favorable political and economic
environment
35 Favorable camping accommodation for
employees

10) Monitoring, evaluation and feedback

S. No Monitoring, evaluation and feedback Strongly Agree Neutral Disagree Strongly
Agree Disagree
36 There is a regular and careful progress
(time, scope, and cost) monitoring and
review throughout the project
37 There is a necessary report on the project
performance relative to established
objectives (e.g., budgets, cost, and
quality)
38 Corporation gives periodic feedback on
project performance & takes corrective
action.
11) Communication
S. Communication Strongly Agree Neutral Disagree Strongly

No Agree Disagree
39 The communication plan is in place in the
project/corporation
40 There is effective communication between
project stakeholders, team, and personnel
41 There is a clear and easy channel of
communication
12) Client Support

S. No Client Strongly Agree Neutral Disagree Strongly
Agree Disagree
42 There is periodic project Monitoring,
evaluation and feedback by client
43 Clients solved any compensation issues
of the project
44 Client support the project by assigning
representative at the project site
45 Client interference in the project work is
supportive

13) Consultant
S. No Consultant Strongly Agree Neutral Disagree Strongly
Agree Disagree
46 The project has detailed feasibility study
that is realistic to the project situation
47 Consultant Submit complete design &
specification
48 Consultant Solve any design & other
consultant related problems on time
49 Consultant estimate of contract schedule
& work volume is realistic
50 Consultant staff is fully authorized to
solve problems on the project site
14) Project manager competency

S. No Project manager Strongly Agree Neutral Disagree Strongly
Agree Disagree
51 PM has strong Coordinating ability and
mutual relationship with his team
members, client, consultants and sub-
contractor
52 Project manager’s has authority to take
financial decision, selecting key team
members, etc.
53 PM is Effective in monitoring and giving
feedback
54 PM Coordinating ability and mutual
relationship of with top management is
strong
55 Project manager’s has good technical
capability
56 PM delegate authority to various
members of his team
57 Developing and maintaining a short and
informal line of communication among
project team

15) Team Management

S. No Team Strongly Agree Neutral Disagree Strongly
Agree Disagree
58 There is a culture of team work in the
project/corporation
59 team members understand the strength
and weakness of the teams
60 team members regularly give feedback to
each other
61 team members have effective meetings
which are well facilitated
62 Turnover of key personnel is low in the
project / organization
63 The practice of overtime payment and
other benefit package is attractive
• Would you please mention any other success factors that are considered to be crucial
for the performance of your project that are not included in this questioner---------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------.
THANK YOU

Annex 2. Names of Projects in Each Sector.

Water infrastructure
S. no
Construction Projects
1 Rib Dam construction
2 Megech Dam Construction
3 Wolkait Dam and Irrigation
4 Gidabo Dam and Irrigation
5 Tendaho Dam Project
6 Kessem Dam Project
7 Kuraz Dam Project
8 Bole Bulbula water Supply
Semera university water
9
supply
10 Kuraz Canal construction
11 Modjo dry Port
12 Ardjo dedesa Canal
S.No Road Construction Projects

1 Kong Begundi
2 Dima Rad
3 Jinka Mender
4 Mazoria Hadero
5 Kuraz Access
6 Adama Awash Arba
7 Dulecha Awash
8 Kuraz Canal
9 Awash Bridge
S.No Building Construction Projects

1 Nigat Kirkos Building
2 Islamic Building
3 ICT Building
4 Meles Zenawi Leadership Academy
5 Bolosa Building
6 Prime Minister Office construction
7 ICT landscape
8 Micililand Building Project
9 Kotebe University Building

Annex 3. Interview Questions

SCHOOL OF COMMERCE
Interview Questioner prepared for respondents for the assessment of factors for successful
Dear Respected Respondents
The interview questions for consultants
• What are the basic reasons for projects scope and design change?
• How do you evaluate the cost and time overrun of projects?
• How about the relation among three parties at construction site?
• How can contractors overcome the problem of time & cost overrun of projects?
• How do you evaluate the project management practice of ECWC?


SCHOOL OF COMMERCE
The interview questions for clients
• Is there project management office at the head office and project level?
• How do you monitor & evaluate projects and the practice of giving feedback?
• Your project experienced the cost and schedule overrun. What are the reasons for cost &
time overrun of your project
• How do you manage the performance of consultant?
• Is there a regular joint meeting at project site and head office level?
• Most of the time there is a delay in making payment to contractor. This is creates a cash
flow problem for contractor. Why payments delay?
• The write-off way is the major problems of contractor. what is the problem to solve the
issue in concerned projects?


SCHOOL OF COMMERCE
performance of construction projects. The case of Ethiopian Construction Works Corporation /
ECWC/.
My name is Tilahun Deneke and I am carrying out a project work to assess the factors for successful
performance of construction projects in the case of Ethiopian Construction Works Corporation
/ECWC/. The information you provide is used for research purpose only, and will be kept confidential at
all levels. Considering your experience in project works, your participation in this survey will
significantly contribute to the accuracy and usefulness of the research outcome. I appreciate taking your
time to complete the survey. I kindly request you to remember that the quality of this work is completely
dependent up on your frank opinions. Please consider each statement carefully before you give it an
evaluation. If you have any query, please do not hesitate to contact me. I am available at your
convenience through Tel. +251960369366
For Contractors
• Your entire project exhibits time and cost overrun. What is the problem associated with this?
• All water projects exhibit contract amendments more than two times. What is the basic reason for
contract amendment? Whose problem is it among three parties?
• Is there the practice of claim management for the time lost?
• How about the practice of project management in your sector?
• How do you manage problems related to consultants?
• Why project managers leave the project?
• Project monitoring, evaluation, controlling and giving feedback practice of your sector is not
satisfactory. Would you mention the reason?
• Timely delivery of resource to the project is the main problem. What are the problems? How can
this problem be solved?
• Road projects are in loss. This loss is accumulated. Is there no mechanism to mitigate the loss
from the very start? Now how the problem will be solved?

ANNEX 4. FREQUENCIES
Knowledge of overall project Goals

Overall Project goals and objectives are clear
Frequency % Valid % Cumulative %
Strongly Disagree 1 1.3 1.3 1.3
Disagree 2 2.6 2.6 3.9
Neutral 4 5.2 5.2 9.1
Agree 46 59.7 59.7 68.8
Strongly Agree 24 31.2 31.2 100.0
Total 77 100 100.0
Roles and responsibilities of stakeholders are clearly defined

Disagree 13 16.9 16.9 16.9
Neutral 7 9.1 9.1 26.0
Agree 40 51.9 51.9 77.9
Strongly Agree 17 22.1 22.1 100.0
Total 77 100.0 100.0
Project goals were attainable with in the time frame

Disagree 40 51.9 51.9 70.1
Neutral 5 6.5 6.5 76.6
Agree 8 10.4 10.4 87.0
Strongly Agree 10 13.0 13.0 100.0
Total 77 100.0 100.0

2) Customer /end users of the project / satisfaction
Customers were clearly defined

Disagree 10 13.0 13.0 15.6
Neutral 6 7.8 7.8 23.4
Agree 49 63.6 63.6 87.0
Strongly Agree 10 13.0 13.0 100.0
Total 77 100.0 100.0
Customer were adequately involved throughout the project

Disagree 24 31.2 31.2 39.0
Neutral 5 6.5 6.5 45.5
Agree 35 45.5 45.5 90.9
Strongly Agree 7 9.1 9.1 100.0
Total 77 100.0 100.0
Customers are satisfied in the performance of the project

Strongly
11 14.3 14.3 14.3
Disagree
Disagree 34 44.2 44.2 58.4
Neutral 2 2.6 2.6 61.0
Agree 25 32.5 32.5 93.5
Total 77 100.0 100.0

The customer requirement clearly communicated before the

project began
Disagree 38 49.4 49.4 68.8
Neutral 1 1.3 1.3 70.1
Agree 22 28.6 28.6 98.7
Total 77 100.0 100.0
3) Safety and health Management
The project risks related to Safety and health are clearly identified
in the project plan
Disagree 40 51.9 51.9 59.7
Neutral 3 3.9 3.9 63.6
Agree 26 33.8 33.8 97.4
Total 77 100.0 100.0
The identified project risk of Safety and health is clearly

communicated among all the project teams
Disagree 40 51.9 51.9 63.6
Neutral 3 3.9 3.9 67.5
Agree 23 29.9 29.9 97.4
Total 77 100.0 100.0

Risk mitigation plan is prepared and communicated among project

staff
Disagree 34 44.2 44.2 58.4
Neutral 11 14.3 14.3 72.7
Agree 20 26.0 26.0 98.7
Total 77 100.0 100.0
All the safety materials /personal protective equipment’s/ are fully

Disagree 54 70.1 70.1 84.4
Neutral 10 13.0 13.0 97.4
Agree 2 2.6 2.6 100.0
Total 77 100.0 100.0
All safety policy, directives and other working procedures or

manuals are in place
Disagree 56 72.7 72.7 94.8
Neutral 4 5.2 5.2 100.0
Total 77 100.0 100.0
Safety engineering department and experts are available on the

project
Disagree 42 54.5 54.5 92.2
Agree 6 7.8 7.8 100.0
Total 77 100.0 100.0

4) Technical task\competency
The required technology is available in the project/corporation
Disagree 47 61.0 61.0 72.7
Neutral 4 5.2 5.2 77.9
Agree 17 22.1 22.1 100.0
Total 77 100.0 100.0
The project manager has sufficient experience, technical knowledge

and skill
Disagree 10 13.0 13.0 14.3
Neutral 4 5.2 5.2 19.5
Agree 50 64.9 64.9 84.4
Strongly Agree 12 15.6 15.6 100.0
Total 77 100.0 100.0
The other project personnel’s have enough knowledge to operate

with the existing technology
Cumulative
Frequency % Valid %
%
Disagree 16 20.8 20.8 22.1
Neutral 6 7.8 7.8 29.9
Agree 52 67.5 67.5 97.4
Total 77 100.0 100.0

5) Initial cost estimate
the initial project estimate (cost & schedule) complete & realistic
before performance began
Disagree 51 66.2 66.2 87.0
Neutral 3 3.9 3.9 90.9
Agree 6 7.8 7.8 98.7
Total 77 100.0 100.0
During project execution the actual cost & time schedule are
compatible with the initial estimate
Disagree 50 64.9 64.9 88.3
Neutral 3 3.9 3.9 92.2
Agree 6 7.8 7.8 100.0
Total 77 100.0 100.0
6) Top management support
top management supports the project in exhibiting commitment to

work and encouragement
Disagree 27 35.1 35.1 40.3
Neutral 4 5.2 5.2 45.5
Agree 34 44.2 44.2 89.6
Total 77 100.0 100.0

The top management assigned strong, clearly identified the project

leadership
Disagree 21 27.3 27.3 32.5
Neutral 7 9.1 9.1 41.6
Agree 35 45.5 45.5 87.0
Strongly Agree 10 13.0 13.0 100.0
Total 77 100.0 100.0
Strong Project Monitoring and feedback given by top management

Disagree 49 63.6 63.6 66.2
Neutral 2 2.6 2.6 68.8
Agree 22 28.6 28.6 97.4
Total 77 100.0 100.0
Top management’s enthusiastic support to the project manager (PM) and

project team at site
Disagree 35 45.5 45.5 51.9
Neutral 3 3.9 3.9 55.8
Agree 31 40.3 40.3 96.1
Total 77 100.0 100.0

Delegating authority to project manager by top management

Disagree 29 37.7 37.7 40.3
Neutral 1 1.3 1.3 41.6
Agree 38 49.4 49.4 90.9
Total 77 100.0 100.0
7) Project planning and scheduling
The project plan consists of clear budget and cost figures

Disagree 19 24.7 24.7 26.0
Neutral 6 7.8 7.8 33.8
Agree 44 57.1 57.1 90.9
Total 77 100.0 100.0
The plan included methods and frequency of communication

among stakeholders and other personnel
Cumulative
Frequency % Valid %
%
Disagree 43 58.8 58.8 61.0
Neutral 4 5.2 5.2 66.2
Agree 25 32.5 32.5 98.7
Total 77 100.0 100.0

The project plan has monitoring and evaluation strategy

Disagree 39 50.6 50.6 55.8
Neutral 2 2.6 2.6 58.4
Agree 29 37.7 37.7 96.1
Total 77 100.0 100.0
The project has realistic time schedules and assignments

Agree 52 67.5 67.5 80.5
Neutral 3 3.9 3.9 84.4
Agree 11 14.3 14.3 98.7
Total 77 100.0 100.0
8) Resources Management
All the required resources are available on time

Disagree 60 77.9 77.9 97.4
Neutral 1 1.3 1.3 98.7
Agree 1 1.3 1.3 100.0
Total 77 100.0 100.0
There is availability of skilled personnel

Disagree 20 26.0 26.0 27.3
Neutral 6 7.8 7.8 35.1
Agree 49 63.6 63.6 98.7
Total 77 100.0 100.0

The project deploys sufficient resource planning to adequately

obtain resource for the job
Disagree 51 66.2 66.2 75.3
Neutral 2 2.6 2.6 77.9
Agree 17 22.1 22.1 100.0
Total 77 100.0 100.0
The procurement process is efficient to deliver the material or

service on time
Disagree 58 75.3 75.3 98.7
Neutral 1 1.3 1.3 100.0
Total 77 100.0 100.0
9) Favorable working condition
Favorable climatic condition at the site

Disagree 20 26.0 26.0 39.0
Neutral 1 1.3 1.3 40.3
Agree 40 51.9 51.9 92.2
Total 77 100.0 100.0
Favorable social environment

Disagree 27 35.1 35.1 46.8
Neutral 1 1.3 1.3 48.1
Agree 35 45.5 45.5 93.5
Total 77 100.0 100.0

Favorable political and economic environment

Disagree 26 33.8 33.8 40.3
Neutral 5 6.5 6.5 46.8
Agree 37 48.1 48.1 94.8
Total 77 100.0 100.0
Favorable camping accommodation for employees

Disagree 16 20.8 20.8 29.9
Neutral 9 11.7 11.7 41.6
Agree 43 55.8 55.8 97.4
Total 77 100.0 100.0
10) Monitoring, evaluation and feedback
There is a regular and careful progress (time, scope, and cost)

monitoring and review throughout the project
Disagree 52 67.5 67.5 75.3
Neutral 1 1.3 1.3 76.6
Agree 18 23.4 23.4 100.0
Total 77 100.0 100.0

There is a necessary report on the project performance relative

to established objectives (e.g., budgets, cost, and quality)
Disagree 14 18.2 18.2 20.8
Agree 55 71.4 71.4 92.2
Total 77 100.0 100.0
Corporation gives periodic feedback on project performance &

takes corrective action.
Disagree 47 61.0 61.0 81.8
Neutral 4 5.2 5.2 87.0
Agree 9 11.7 11.7 98.7
Total 77 100.0 100.0
11) Communication
The communication plan is in place in the project/corporation
Disagree 24 31.2 31.2 35.1
Neutral 1 1.3 1.3 36.4
Agree 47 61.0 61.0 97.4
Total 77 100.0 100.0

There is effective communication between project stakeholders,

team, and personnel
Disagree 26 33.8 33.8 37.7
Neutral 6 7.8 7.8 45.5
Agree 41 53.2 53.2 98.7
Total 77 100.0 100.0
There is a clear and easy channel of communication

Disagree 38 49.4 49.4 51.9
Neutral 4 5.2 5.2 57.1
Agree 32 41.6 41.6 98.7
Total 77 100.0 100.0
12) Client support
There is periodic project Monitoring, evaluation and feedback

by client
Disagree 23 29.9 29.9 35.1
Neutral 5 6.5 6.5 41.6
Agree 43 55.8 55.8 97.4
Total 77 100.0 100.0

Clients solved any compensation issues of the project

Disagree 32 41.6 41.6 61.0
Neutral 4 5.2 5.2 66.2
Agree 25 32.5 32.5 98.7
Total 77 100.0 100.0
Client interference in the project work is supportive

Disagree 23 29.9 29.9 45.5
Agree 38 49.4 49.4 94.8
Total 77 100.0 100.0
13) Consultant
The project has detailed feasibility study that is realistic to the

project situation
Disagree 41 53.2 53.2 72.7
Neutral 2 2.6 2.6 75.3
Agree 17 22.1 22.1 97.4
Total 77 100.0 100.0
Consultant Submit complete design & specification

Disagree 34 44.2 44.2 61.0
Neutral 6 7.8 7.8 68.8
Agree 23 29.9 29.9 98.7
Total 77 100.0 100.0

Consultant Solve any design & other consultant related problems

on time
Disagree 55 71.4 71.4 80.5
Agree 14 18.2 18.2 98.7
Total 77 100.0 100.0
Consultant estimate of contract schedule & work volume is

realistic
Strongly
6 7.8 7.8 7.8
Disagree
Disagree 48 62.3 62.3 70.1
Neutral 9 11.7 11.7 81.8
Agree 14 18.2 18.2 100.0
Total 77 100.0 100.0
Consultant staff is fully authorized to solve problems on the project

site
Disagree 37 48.1 48.1 76.6
Neutral 2 2.6 2.6 79.2
Agree 15 19.5 19.5 98.7
Total 77 100.0 100.0

14) Project manager
PM has strong Coordinating ability and mutual relationship with his

team members, client, consultants and sub-contractor,
Disagree 2 2.6 2.6 2.6
Neutral 12 15.6 15.6 18.2
Agree 49 63.6 63.6 81.8
Strongly Agree 14 18.2 18.2 100.0
Total 77 100.0 100.0
Project manager’s has authority to take financial decision, selecting

key team members, etc.
Strongly
4 5.2 5.2 5.2
Disagree
Disagree 5 6.5 6.5 11.7
Neutral 14 18.2 18.2 29.9
Agree 41 53.2 53.2 83.1
Strongly Agree 13 16.9 16.9 100.0
Total 77 100.0 100.0
PM is Effective in monitoring and giving feedback

Disagree 5 6.5 6.5 6.5
Neutral 4 5.2 5.2 11.7
Agree 56 72.7 72.7 84.4
Strongly Agree 12 15.6 15.6 100.0
Total 77 100.0 100.0

PM Coordinating ability and mutual relationship of with top

management is strong
Disagree 4 5.2 5.2 5.2
Neutral 7 9.1 9.1 14.3
Agree 49 63.6 63.6 77.9
Strongly Agree 17 22.1 22.1 100.0
Total 77 100.0 100.0
Project manager’s has good technical capability

Disagree 10 13.0 13.0 14.3
Neutral 2 2.6 2.6 16.9
Agree 45 58.4 58.4 75.3
Strongly Agree 19 24.7 24.7 100.0
Total 77 100.0 100.0
PM delegate authority to various members of his team

Disagree 10 13.0 13.0 14.3
Neutral 13 16.9 16.9 31.2
Agree 39 50.6 50.6 81.8
Strongly Agree 14 18.2 18.2 100.0
Total 77 100.0 100.0
15) Team Management
There is a culture of team work in the project/corporation

Disagree 29 37.7 37.7 46.8
Neutral 2 2.6 2.6 49.4
Agree 35 45.5 45.5 94.8
Total 77 100.0 100.0

Team members understand the strength and weakness of the

teams
Disagree 25 32.5 32.5 35.1
Neutral 4 5.2 5.2 40.3
Agree 44 57.1 57.1 97.4
Total 77 100.0 100.0
Team members regularly give feedback to each other

Disagree 41 53.2 53.2 66.2
Neutral 3 3.9 3.9 70.1
Agree 22 28.6 28.6 98.7
Total 77 100.0 100.0
Team members have effective meetings which are well facilitated

Disagree 34 44.2 44.2 58.4
Neutral 4 5.2 5.2 63.6
Agree 27 35.1 35.1 98.7
Total 77 100.0 100.0

Turnover of key personnel is low in the project / organization

Disagree 41 53.2 53.2 61.0
Neutral 1 1.3 1.3 62.3
Agree 26 33.8 33.8 96.1
Total 77 100.0 100.0
The practice of overtime payment and other benefit package is

attractive
Disagree 50 64.9 64.9 80.5
Neutral 3 3.9 3.9 84.4
Agree 10 13.0 13.0 97.4
Total 77 100.0 100.0

Tilahun Deneke

Uploaded by

Copyright:

Available Formats

Tilahun Deneke

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tilahun Deneke

Uploaded by

Copyright:

Available Formats

The Assessment of Factors Affecting Performance of Construction Projects.

The Case of ECWC Construction Projects

Addis Ababa University School of Commerce

Assessment of Factors Affecting Effective Performance of

By: Tilahun Deneke

A Research Project Work Submitted to the School of Graduate

Advisor: Adane Atara (PHD)

ASSESSEMENT OF FACTORS AFFECTING PERFORMANCE OF

By: Tilahun Deneke

Approved by Board of Examiners:

Examiner: -----------------------------------Signature___________ Date_________

Examiner: -----------------------------------Signature__________ Date__________

Examiner: -----------------------------------Signature___________ Date_________

ACCRONOMIES AND ABBREVATIONS

PL: Profit and Loss

Chapter one ..................................................................................................................................... 1

1.1. Back ground of the study .............................................................................................. 1

2. Overview of Ethiopian Construction Industry ........................................................................ 6

2.1. Background of Ethiopian Construction Works Corporation ........................................ 6

3. Literature Review .................................................................................................................... 9

3.1.1. Definition of project .................................................................................................. 9

3.4.3. Success Factors Influencing Project Performance .................................................. 22

4. Research Methodology .......................................................................................................... 38

4.1. Introduction ................................................................................................................ 38

5. Data Presentation, Analysis and Interpretation ..................................................................... 44

5.1. Introduction ................................................................................................................ 44

5.15. Client Support ............................................................................................................. 73

6.1. Conclusions and Recommendation. ........................................................................... 78

Annex 3. Interview Questions .................................................................................................... 102

Table 1 - Growth Rate of GDP by Construction Activity

1.1. Back ground of the study

TILAHUN DENEKE Page 1

analyze their importance in project management methodology and come up with a

1.2. Statement of the problem

In Ethiopian construction works corporation (ECWC) there is no clearly determined project

TILAHUN DENEKE Page 2

1.3. Research Questions

TILAHUN DENEKE Page 3

1.4. Objectives of the Study

1.4.1. General Objective

1.4.2. Specific Objectives

o Identifies the factors for performance of projects in the corporation.

1.5. Significance of the study

TILAHUN DENEKE Page 4

1.6. Scope of the Study

1.7. Outline of the Thesis

TILAHUN DENEKE Page 5

2. Overview of Ethiopian Construction Industry

2.1. Background of Ethiopian Construction Works Corporation

Ethiopian Construction Works Corporation (ECWC) is a public enterprise which is established

TILAHUN DENEKE Page 6

2.2. Construction Sector Development and its Economic Contribution in Ethiopia

1. The public sector is its major client;

TILAHUN DENEKE Page 7

Table 1: Growth Rate of GDP by Construction Activity at Constant Prices

Fiscal Year Contribution (%)

Source: Own Compilation from NPDC, 2019

TILAHUN DENEKE Page 8

Definitions and Concepts of Terms

3.1.1. Definition of project

Examiner: -----------------------------------Signature___ Date_

Examiner: -----------------------------------Signature Date

Examiner: -----------------------------------Signature___ Date_