Proposal For Submission Raghavacharya
Proposal For Submission Raghavacharya
Proposal For Submission Raghavacharya
MSc PROPOSAL
BY
TAMARU ASEFA
December, 2023
BY
TAMARU ASEFA
DECEMBER, 2023
ARBA MINCH, ETHIOPIA
Table content
List of figures ................................................................................................................................... i
List of Table .................................................................................................................................... ii
List of Acronyms ........................................................................................................................... iii
Executive summary ........................................................................Error! Bookmark not defined.
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background study ............................................................................................................. 1
1.2 Statement of the problem ................................................Error! Bookmark not defined.
1.3 Research questions ..........................................................Error! Bookmark not defined.
1.4 Objectives ........................................................................Error! Bookmark not defined.
1.4.1. General Objective ....................................................Error! Bookmark not defined.
1.4.2. Specific objective .....................................................Error! Bookmark not defined.
1.5 Significance of the study .................................................Error! Bookmark not defined.
1.5 Scope of the study ...........................................................Error! Bookmark not defined.
1.6 Limitation of the study ....................................................Error! Bookmark not defined.
CHAPTER TWO ............................................................................................................................ 2
LITRATURE REVIEW .................................................................................................................. 2
2.1 Introduction ...................................................................................................................... 2
2.2 Causes of Time overrun ................................................................................................... 5
2.3 Causes of cost overrun ..................................................................................................... 5
2.4 Research Literature Summary: ......................................................................................... 6
CHAPTER THREE .......................................................................Error! Bookmark not defined.
RESEARCH METHODOLOGY...................................................Error! Bookmark not defined.
3.1 Background of research study area .................................Error! Bookmark not defined.
3.2 Research Design ..............................................................Error! Bookmark not defined.
3.3 Target Population and sample size ..................................Error! Bookmark not defined.
3.3.1. Sample Size Determination: ..................................................................................... 6
3.4 Source of Data .................................................................................................................. 7
3.4.1 Primary Data ............................................................Error! Bookmark not defined.
3.4.2 Secondary Data ........................................................Error! Bookmark not defined.
List of figures
Figure 1, Arba Minch Map, Southern Ethiopians Region, Ethiopia……………………………..11
Figure 2, Designed Research methodologies…………………………………………………….12
List of Table
Table 4.1 Time table for various activities………………………………………………………17
Table 4.2 proposed budget breaks down…………………………………………………………18
List of Acronyms
AA………………………………………………Addis Ababa
AC………………………………………………Arbaminch City
ACBCPs…………………………………….......Arba Minch City Building Construction Projects
CHAPTER ONE
INTRODUCTION
1.1 Background study
Ethiopian construction industry (ECI) has become vast in recent years to follow up the growing
economy of Ethiopia. Because of these reasons the recent ECI projects are very complex and
technology in world is also modern. To come up the demand of new construction projects,
Ethiopia needs multinational construction companies and good numbers of national construction
organizations also. To realize the dreams of Ethiopia, Ethiopia has invited multinational
companies like china communication construction companies and some companies from
Netherland. Ethiopian construction industry (ECI) is big; it is involving multibillion investments
which are major portion of Ethiopian economy. But it is also true from bellow mentioned some
researchers that time and cost overrun is happening which is major drawback in construction
industry and wants to study carefully to progress and top up with Ethiopian growth.
Construction industry (CI) is an imperative industry that plays a dynamic role in the socio-
economic progression of a country. Economically, it contributes a major improvement in the
overall GDP of a country. It also improves the quality of life by providing the necessary
infrastructure such as roads, hospitals, schools and other basic and enhanced facilities. Hence, it
is fundamentally crucial to make construction projects completed successfully within time,
budget and expected quality (Negalign Nigatu, 2020), However, being a complex, fragmented
and schedule driven industry. It always faces chronic problems such as low quality and
productivity, cost overrun, time overrun, construction waste and others. Of these, cost and time
overrun is a severe problem (Olawale and Sun, 2010) because it affects the overall development
of any country. According to Chitkara, (2009) some of the developing countries, the growth rate
of construction activity outstrips that of population and of GDP. In ECI percentage of GDP
amounts to 3%, considerably lower than the sub-Saharan average of 6% (MoWUD, 2006).
According to Fetene Nega (2008), the development of the construction industry in Ethiopia is
slow; it plays a key role in the development of the national economy. The critical problems are
inability to complete the projects on schedule, low quality work and cost overrun. Most (if not
all), construction projects experience time overrun and cost overruns during their execution
phase. Tadele Mulgeta (2018), studied Cost, time, and quality are used to measure the project
performance and success that means the Success of a project is defined by accomplishing it
within specified cost, time and quality.
CI always faces chronic problems such as low quality and productivity, cost overrun, time
overrun, construction waste and others. Of these, cost and time overrun is a severe problem
because it affects the overall development of any country.
But all constructions found in the town faced time and cost overrun problems up to now. These
problems affect growth and development of the city for many years ago. Various researches done
to solve this problem from CI of the city but it need further recent studies to give the correct
remedial measures.
TER TWO
LITRATURE REVIEW
2.1 Introduction
Cost overrun can be defined as when the project objectives are not achieved within estimated
budget (Avots, 1983). Cost overrun is the excess of actual cost over budget. Cost overrun is the
ratio of contract amount to the original contract award amount. In construction, delay could be
defined as the time over run either beyond completion date specified in a contract, or beyond the
date that the parties agreed upon for delivery of a project (Tadele Mulgeta, 2018).
Construction cost overrun is defined as the difference between forecasted and actual construction
costs. Every construction company can be affected by cost overrun (Lee, 2008). In construction,
delay can be defined as the time over run, slipping over its planned schedule either beyond the
date that the parties agreed upon for delivery of a project, or beyond completion date specified in
a contract and it usual problem in construction projects (M. Abubeker J., 2015).
The study by Tadele Mulgeta (2018), was tried to assess the effects of some dominant time and
cost overrun factors in Addis Ababa Univesity Building Projects. The researcher reviewed six
project documents to assess their cost and find if there were variations between the planned and
actual costs. According to this actual project document showed that there were average 46% of
time overrun and 25% of cost overrun within the projects. The findings indicate that the major
causes for project Time overrun were improper planning and poor scope definition, poor
communication in project stakeholders, owner’s interference and slow decision, the contractors’
and consultants’ experiences and poor contract management and quality assurance or control and
the major causes for the project cost overrun were Change in foreign rate, contractual claims,
additional work at owner’s request, design change, quality of materials, cost under estimation
and insufficient funds were very significant factors that increase the project cost.. This study is
done only on public building construction projects found in Addis Ababa at Addis Ababa
University and it did not study interrelationship between different factors studied in the research
with success of the project.
According to W. Engidawork (2021) in his study ‘Cost and time performance analysis on
construction projects in Addis Ababa: A comparative study on selected local and foreign Real
Estate Developers’ most of foreign contractors have showed a better construction cost and time
performance on their last two to three real estate developing projects. They compare projects
completed within a range of budgeted cost and planed time to a 50% of cost and time increment,
78.6% of foreign and 74.3% of local contractors have finished their projects with in this range of
cost increment. And 92.9% of foreign and 56.4% of local contractors have finished their projects
with in the mentioned range of time increase than planned. Engidawork study scope
encompasses comparison of local and foreign contractors on building construction projects found
in Addis Ababa city.
Study by Fetene Nega (2008), identifies causes and effects of cost overrun on public building
construction projects in Ethiopia. From the results it was found that 67 out of 70 public building
construction projects suffered cost overrun. The research states that the rate of cost overrun
ranges from a minimum of 0% to the maximum of 126% of the contract amount for individual
projects. In this research it was found that the rate of cost overrun decreases with the increase in
contract amount. But it does not compare these results with private building construction
projects. The Fetene Nega study concentrates only on public building construction projects found
in Ethiopia and that too deals with only cost overrun.
Study by Nesru Serani and Tadele Wodaje (2020) identifies The Causes and Effects of Delay of
Building Construction in Ethiopia, Southern Nation Nationalities of People Region in Gurage
Zone (Case of Wolkite Town). The research analysis result showed that the top 10 (ten) causes
of delay of BCP by relative importance index (RII%) were economic condition (inflation,
currency), fluctuation in price of material, time overrun of the project, slow decision making,
improper planning, lack of finance to fund the project completion, preparing incomplete bill of
quantity, delay in approval of payment, shortage of material, and change in drawing and design
respectively. But it does not investigate the effect of cost overrun on time performance of the
project.
Studies by Talukhaba A.A (1988) on time and cost performance of construction projects in
Nairobi have been found Methods of tendering, variations and delayed payments to be
significant factors cause cost and time overrun in construction project performance. The study
further has demonstrated that time and cost performance is influenced by conditions associated
with different types of clients. The factors which are significant in time and cost overruns are
found to be associated with different types of clients in varying magnitudes such that in a
situation where the time and cost performance is poorest, the factors are dominant. The
government has been found to be the poorest in project management, followed by the private
sector. But the research did not address the adverse impact of some newly emerging challenges
and causes of construction projects’ delay as a result of rapid change in the dynamics of the
population growth in recent years. For instance, he did not consider the material, labor-,
equipment, financial, government authorities, and social and economic-related factors despite
their adverse impact on influencing projects’ time performance.
Study on Quantification of the Influence of Factors Causing Time and Cost Overruns in
Tanzanian Construction Projects by Daniela D.Ndunguru et al. (2020) identified that Tanzania
suffers problems of cost and time overruns in the construction business. Many factors are
contributing to the cost and time overruns in Tanzania construction projects. The results from the
research explained that unexpected inflation/material escalation, adverse effect of weather, lack
of proper communication and coordination between parties, inadequate production of raw
material, late in certification and payment of completed work, technical incompetence and poor
organization structure and additional works/changes by the client are the most predominant
causes of time and cost overrun of Tanzanian construction project. But the research did not
address the adverse impact of some newly emerging challenges and causes of construction
projects’ delay as a result of rapid change in the dynamics of the population growth in recent
years like Talukhaba A.A (1988) and also it did not study interrelationship between different
factors studied in the research.
According to Oboirien M. Ohiomah (2019) study in Nigeria found that the significant cost
influencing factors in Nigerian construction industry were the inexperience of the contract
manager, payment delays to main contractors, unstable foreign exchange, variations to works,
and corrupt practices and time influencing factors were include design errors, cash flow
problems, payment delays to main contractors, contractors’ improper contract knowledge, and
delay in building plans and approval. The research results show that these factors are between
50.56% - 55.00% of factors in both cost and time constructs in Tanzanian construction industry.
Like Talukhaba A.A (1988) and Daniela D.Ndunguru et al. (2020) this study also did not
address the adverse impact of some newly emerging challenges and causes of construction
projects’ delay as a result of rapid change in the dynamics of the population growth in recent
years.
Where:-
n= desired sample size (for the population>10,000)
Z=standard normal deviate; usually set at 1.96(or a~2), which correspond to 95% confidence
level. Here are the z-scores for the most common confidence levels:
90% – Z score = 1.645
95% – Z score = 1.96
99% – Z score = 2.576
p=proportion in the target population estimated to have a particular characteristics. If there is no
reasonable estimate, use 50% (i.e 0.5)
q=1-p (proportion in the target population not having the particular characteristics)
d= degree of accuracy required, usually set at 0.05 level ( occasionally at 2.0) also called margin
of error.
The t-test can be used to determine if the means of two groups are significantly different
from one another.
References
1) Arba Minch town, Ethiopia: driving forces and challenges
2) Arba Minch Town Administration (AMTA). (2014). Town wide short report written in its
50th year’s anniversary. Arba Minch, unpublished document
3) Avots I. (1983). Cost-relevance analysis for overrun control. International Journal of
Project Management, 1, 142-148
4) Chitkara, K. K. (2009). Construction project management–Planning, scheduling and
controlling. New Delhi: Tata McGraw-Hill Publishing Company Limited.
5) FetenNega, F., (2008), Causes and Effects of Cost Overrun on Public Building
Construction Projects in Ethiopia. Master Thesis, Addis Ababa University, Civil
Engineering Department, Addis Ababa, Ethiopia
6) Lee J K, 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
7) Ministry of Work and Urban Development (MoWUD).(2006).Urban development policy.
Addis Ababa
8) Ndunguru, D. D., Niyonyungu, F., & Yang, X. F. (2020). Quantification of the Influence
of Factors Causing Time and Cost Overruns in Tanzanian Construction Projects, Open
Journal of Business and Management, 8, 2133-2147.
https://doi.org/10.4236/ojbm.2020.85130