ASSESSMENT OF CAUSES OF CONSTRUCTION PROJECT DELAY IN DIRE

DAWA:

A Thesis Research Submitted to the School of post Graduate Studies of Addis

Ababa Medical and Business College in Partial Fulfillment of the Requirements
for the Master of Business Administration (MBA) Degree.

ADDIS ABABA MEDICAL AND BUSINESS COLLEGE

SCHOOL OF POST GRADUATE STUDIES

By

ALEM FELEKE

ADVISOR: MINGIZE BIRHANU (ASSISTANCE PROFESSAR)

August, 2020

DIRE DAWA, ETHIOPIA

 APPROVAL SHEET

SCHOOL OF GRADUATE STUDIES

ADDIS ABABA MEDICAL AND BUSINESS COLLEGE

As Thesis Research Advisors, we hereby certify that we have read and evaluated this Thesis prepared,
under our guidance; by Alem Feleke entitled “Assessment of causes of construction project delay
in Dire Dawa” We recommend that it be submitted as fulfilling the thesis requirement.
Mingize Birhanu (Ass. Prof)
Major Advisor Signature Date
______ ___________
Co-Advisor Signature Date
As member of the Board of Examiners of the M.Sc. Thesis Open Defense Examination, We certify that we
have read, evaluated the Thesis prepared by Alem Feleke examined the candidate. We recommended that
the Thesis be accepted as fulfilling the Thesis requirement for the Degree of Master of Business
Administrative (MBA).

Chairperson Signature Date

Internal Examiner Signature Date

External Examiner Signature Date

Final approval and acceptance of the Thesis is contingent upon the submission of its final copy to the
Council of Graduate Studies (CGS) through the candidate School Graduate Committee (SGC).

Declaration
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My signature below, I declare and affirm that this Thesis is my own work. I have followed all ethical and
technical principles of scholarship in the preparation, data collection, data analysis and compilation of the
Thesis. Any scholarly matter that is included in the Thesis has been given recognition through citation.
This Thesis is submitted in partial fulfillment of the requirements for a Master of Business Administrative at
the AAMBC. The Thesis is deposed in the AAMBC Library and is made available to borrowers under the
rules of the Library. I solemnly declare that this Thesis has not been submitted to any other institution
anywhere for the award of any academic degree, diploma or certificate.
Brief quotations from this Thesis may be made without special permission provided that accurate and
complete acknowledgment of the source is made. Requests for permission for extended quotations from or
reproduction of this Thesis in whole or in part may be granted by the Head of the School or Department when
in his or her judgment the proposed use of the material is in the interests of scholarship. In all other instances,
however, permission must be obtained from the author of the Thesis.
Name: Alem Feleke Signature: _____

Date: August, 2020

School/Department: School of Management

ACKNOWLEDGEMENTS

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These acknowledgements attempt to thank people who in some way supported, guided and
encouraged me along the way to completing this thesis. I would like to express my sincere gratitude
to the following people. Without their assistance, encouragement, suggestion and commitment this
work would not have been a reality.
Firstly, I wish to express my sincere thanks to my advisor to Mingize Birhanu (assistance professor)
for his kindness and professional guidance and encouragement for the completion of this thesis work.
Sincere gratitude and appreciation goes to all professionals, engineers, client, contractors and
consultants who participated in the questionnaire, interview and case study. Special thanks to the Dire
Dawa constriction administration office.
Finally, my deepest thanks goes to my wife w/ro Helen Abdi for her unreserved support,
encouragement, prayers and my close friends for supporting data collecting and analysis.

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 ACRONYMS AND ABBREVIATION
AACE: Association for the Advancement of Cost Engineering

ATWS: Actual Time of the work Scheduled BCWS: Budget Cost Work Schedule

CPM: Critical path method

MOWUD: Ministry of Works and Urban Development MS: Mean Score

SD: Standard Deviation

SPI: Schedule performance Index

SPSS: Statistical Package for Social Science UN: United Nations

UNDP: United Nation Development Program

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 Table of Contents
ACKNOWLEDGEMENTS.........................................................................................................................................................iii
ACRONYMS AND ABBREVIATION..........................................................................................................................................iv
List of Tables.......................................................................................................................................................................... v
ABSTRACT.............................................................................................................................................................................vi
CHAPTER ONE....................................................................................................................................................................... 1
1. INTRODUCTION.............................................................................................................................................................1
1.1 Background of the Study.............................................................................................................................................1
1.2 Statement of the Problem............................................................................................................................................2
1.3 Objective of the Study.................................................................................................................................................3
1.3.1 General Objective.................................................................................................................................................3
1.3.2 Specific Objectives...............................................................................................................................................3
1.3.3 Research Questions..............................................................................................................................................4
1.4 Significance of the Study.............................................................................................................................................4
1.5 Scope of the Study.......................................................................................................................................................4
1.6. Organization of the Study...........................................................................................................................................4
CHAPTER TWO...................................................................................................................................................................... 5
REVIEW OF THE RELATED LITERATURE..................................................................................................................................5
2. Concepts on Construction Project Delays...............................................................................................5
2.1 Project Time................................................................................................................................................................5
2.2 Project Time Management..........................................................................................................................................6
2.3 Scheduling Techniques................................................................................................................................................6
2.4 Measurement of Project Performance..........................................................................................................................7
2.5 Causes of Delay Due to Events during Pre-construction Stage...................................................................................8
2.6. Causes of Delays during Construction Stage..............................................................................................................9
2.6.1. General................................................................................................................................................................9
2.7. Types of Construction Delays....................................................................................................................................9
2.7.1. Critical versus Noncritical Delays.....................................................................................................................10
2.7.2. Excusable versus Non-excusable Delays...........................................................................................................10
2.7.3. Compensable versus Non-compensable Delays.................................................................................................10

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 2.7.4. Concurrent Delays.............................................................................................................................................11
2.8. Occurrence of Construction Delay...........................................................................................................................11
2.8.1 Identification of Causes of Delay...........................................................................................................................11
2.9. Effect of delay..........................................................................................................................................................17
CHAPTER THREE.................................................................................................................................................................. 19
RESEARCH METHDOLOGY...................................................................................................................................................19
3.1. Research Design.......................................................................................................................................................19
3.2. Research Techniques................................................................................................................................................19
3.2.1. Sampling Technique..........................................................................................................................................19
3.2.2. Sample Size Determination...............................................................................................................................20
3.2.3. Data Gathering Instrument................................................................................................................................20
3.2.4. Measurement of the Data...................................................................................................................................21
3.2.5. Data Analysis and Interpretation.......................................................................................................................21
3.2.6. Data Presentation...............................................................................................................................................21
2.2.7. Ethical Consideration........................................................................................................................................22
3.2.8. Validity and Reliability Test..............................................................................................................................22
CHAPTER FOUR................................................................................................................................................................... 23
4. RESULT AND ANALYSIS....................................................................................................................................................23
4.1. Introduction..............................................................................................................................................................23
4.2. The importance and ranking of delay causes by respondents.......................................................................................24
4.3. The Importance and Ranking of Effects of Delay by respondents............................................................................28
CHAPTER FIVE...................................................................................................................................................................... 31
5. CONCULUSION AND RECCOMANDATION....................................................................................................................31
5.1 Conclusions...............................................................................................................................................................31
5.2. Recommendations....................................................................................................................................................31
REFERENCES........................................................................................................................................................................ 34
Appendix:............................................................................................................................................................................ 37
Questioners......................................................................................................................................................................... 37

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 List of Tables
Table 4.1 Respondents designation and rate of response 22

Table 4.2 Respondents experience in construction 22

Table 4.3 Importance and ranking of Client related delay causes 23

Table 4.4 Importance and ranking of Contractor related delay causes 23

Table 4.5 Importance and ranking of Consultant related delay causes 24

Table 4.6 Importance and ranking of Material related delay causes 24

Table 4.7 Importance and ranking of equipment related delay causes 25

Table 4.8 Importance and ranking of labor related delay causes 25

Table 4.9 Importance and ranking of External delay causes 25

Table 4.10 Top ten delay causing factors 26

Table 4.11 Importance and ranking of effects of delay 26

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 ABSTRACT
The construction industry is one of the main sectors that provide important ingredients for the
development of an economy. Construction is a tool through which a society achieves its goals of
urban and rural development. However it is becoming more complex because of the
sophistication of the construction process itself and the large number of parties involved in the
construction process, i.e., clients, contractors, consultants, users, designers, subcontractors,
regulators, and suppliers. Delay in construction project completion is a global phenomenon that
occurs in the construction industry and considered as one of the most common problems causing
a multitude of negative effects on the project and its participating parties especially where the
government projects are concerned and in the construction industry of Ethiopia is no exception.
The objective of this study is to identify the major causes and factors of construction delays, their
effects on the successful completion of projects, and provide suggestions to minimize delays in the
construction of Dire Dawa Administrative. This study uses a comprehensive literature review to
design and conduct a survey to investigate delay causes and then filtered based on
appropriateness to the Ethiopian Construction Industry as well as the Educational Building
Projects in Dire Dawa. A specific survey was conducted through case study for selected projects
to examine the most critical delay factors and their effects. A general survey was distributed thru
questionnaire to examine the correlation of the most critical factors of delay and its relative effect
on the project with respect to time, cost and quality. Data was collected and analyzed using the
‘Relative Importance Index (RII)’ whereby the score with the highest RII is one that mostly
influences the delay. The researcher Recommended more research on construction delays should
be done in order to develop guidelines, or methods of minimizing the effects of construction
delays in Ethiopia.

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 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Construction industry has played a significant role in the economy of both in developed and
developing nations (Takim, 2005). Olawale (2010) stated that construction industry contributes to the
gross domestic product (GDP) and employment rate of many nations and so it is considered as very
important for the economic development of any nation. Moreover, the author also noted that
construction activities have become a significant market place due to the fact that this industry requires
different products and material from other businesses sectors (Susana, 2012).
According to Saleh (2008) and Suzan (2012) stated that many construction industry both in developed
and developing nations suffers from many problems and complex issues because of poor performance
and delay in construction. These were happened due to client, consultant and contractors related
issues. In addition to these, the authors confirmed that there were different reasons affecting
construction projects performance in the in the construction industry such as poor management and
leadership; inappropriate participants; poor relations and coordination; absence of motivation, control,
monitor or decision making systems; inadequate infrastructure, political problems; cultural problems
and economic conditions (Saleh, 2008).
Ethiopian Economic Association (2008:14) reported that, since 2003/2004, the economy of Ethiopia
has undergone rapid growth. Hussen Seid (2015) stated that, the construction industry is one of the key
areas that the government of Ethiopia gives focus as one of the cornerstones of development and every
years significant amount of money is budgeted. It is found that construction industry constitutes an
important element of Ethiopian economy and it is the main motivating force particularly in Addis
Ababa city. But, it suffers from a number of problems that affect time, cost and quality performances.
Successful management of construction projects is based on three major factors i.e. time, cost and
quality. Time and cost are the lifelines of any and every project (Salim, 2015). The success or failure
of any project largely depends on these two factors apart from its quality. They are important, but still
they are neglected.

Delays in construction projects are considered one of the most common problems causing a multitude
of negative effects on the project and its participating parties. Along with delay, the frequently faced

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consequences are project failure, reduction of profit margin, and loss of belief of citizen in government
funded projects, etc. When delays do occur, they are either accelerated or have their duration extended
beyond the scheduled completion date. These are not without some cost consequences. Delays also
give rise to disruption of work and loss of productivity, late completion of project increased time
related costs, third party claims, abandonment and termination of contract (Abdul-Rahman 2006)

Previous researches similar to this show that the main causes of delay and cost overrun in building
construction is improper project management and claim administration. Due to unforeseen incidences
and contract management problems, construction projects experience delays which directly impacts all

Parties involved. Home buyer who give their trust on the real estate companies are the one who are
suffering most and have no control on the matter.

Trauner et al. (2009) defines that construction delays make something happened later than expected, to
cause something to be performed later than planned, or to not act timely. Construction delays result in
claim by contractors. Claims related to construction projects are inevitable and there is no way of
eliminating all project risks, as some are unforeseeable. However, if scope of the project is well
thought and transferred in the design, duties of all parties clearly defined and played, most
uncertainties will be eliminated.

This thesis examines causes of delay in an integrated manner and determines how critical delay causes
are most influential in project performance. This provide owners, consultants and construction
companies involved in construction projects with the foundation on which such strategies – on how to
avoid delays - can be developed in the future. This thesis focuses on Government construction projects
in Dire Dawa, which were assessed for delay causes and examines the corresponding effects,
identified and provide recommendation based on the findings to improve project performance within
the general public construction projects.

1.2 Statement of the Problem

The property market of the country is full of complains and uncertainty. Failing to complete the
project on time is of course not the single most serious problem in the general public construction
projects in Ethiopia, though; it’s a common feature in the multibillion birr industry.

The general public construction projects development is one of the booming industries of the country
in recent years. Although the number of developers is increasing recently, the gap between demand
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and supply of property market remain the same with all its negative images and complaints

In Ethiopian construction practice, it is very rare that construction projects are completed on the time
specified or agreed upon. Ismeal (1996) reported that delays are endemic to construction projects in
Ethiopian. His study indicates, most of the projects experience delay from 100% to 460% of the
original contract time. The study shows how important it is to investigate and study on delay causing
factors in construction projects of Ethiopia and find solutions to reduce the effect.

Shewa ferahu (2016), in his study on construction of educational projects found that none of the case
study projects completed within the contract period and consultant and contractor caused delay factors
are the two most responsible factors for most delays. The total delay ranges from 200% to 329% of
the initial contract times excluding the time required to complete the projects. This study is conducted
on educational building of Addis Ababa University which is government run. The method of
contractor and consultant selection in government project is conducted by the rules and regulation of
PPA. Whereas, in case of the general public construction administrative projects contractor and
consultant selection procedures are different and the client conduct selected companies on closed bid.
Apart from this, in general public construction administrative projects certain construction material
like cement; brick, reinforcement bar and subcontract are provided and supplied by small and medium
Business enterprise to empower them. Hence, it is important to research on the delay causing factors
and effects in the general public construction administrative projects run construction because the
modalities of contractor selection and procurement. Therefore, this research duly investigate delay
causing factors in the general public construction projects in Dire Dawa to forward visible and
scientific solution to improve project performance.

1.3 Objective of the Study

1.3.1 General Objective
The general objective of this research is to assessment of causes and Effect of construction project
delay in Dire Dawa.

1.3.2 Specific Objectives

1. To identify the major causes of in construction project delay in Dire dawa.
2. To investigate the effect of delay in construction of projects.

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1.3.3 Research Questions
The following basic questions are raised in this study.
1. What are the major causes of in construction project delay in Dire dawa?
2. What are the effects of delay in construction of projects?
1.4 Significance of the Study
There are several valuable benefits expected by implementing of this study. The significance of
establishing the issues related to general public construction projects delays to provide a greater
insight and understanding on the causes of delays particularly among the main project players:
contractors, client and consultants. This can be achieved by applying theoretical concepts discussed in
many literatures into practice in general public construction projects. It hope that, the findings guide
efforts to improve the performance of the construction industry and useful to the construction players.
Therefore, the findings encouraging the practitioner to focus on delay problem that might have existed
in their present or future projects. Other than that, this study expect to provide a better ways and
methods in delivering construction projects by minimize the major causes of delays.
1.5 Scope of the Study
The research will be focused on the following matter:
i. This research comprise in Dire Dawa Administration.

ii. The group of respondents for this research involves client, consultant and contractor companies
that are involved in general public construction projects development and building construction
projects.
iii. We consider general public construction projects which involve independent external consultant
and contractors. It is a common practice among general public construction projects involved in
construction and consultancy in which this research incorporate.
1.6. Organization of the Study
These papers organize in to five chapters. The first chapter presents about the introduction: back
ground of the study, statement of the problem, general &specific objectives the significance
definition key terms, scope and limitation of the study. The second chapter dealt about the literature
review which includes theoretical and empirical study related to experience of various countries on

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the same topic .Chapter three focuses on the research methodology, data collection and procedures
sample &sampling technique. The fourth chapter presents interpretation of data, summary analysis
and discussions. The fifth chapter presents conclusions recommendations.

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 CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
This chapter presents the theoretical, empirical studies and conceptual framework of the study. In
addition to these it presents the major factors which cause delay in construction projects.
2. Concepts on Construction Project Delays
Delay has been defined by different authors at different times.
The basic concept of a construction delay is the time wasted before submitting the construction
deliverables on the scheduled date. This delay can be caused mainly by the following reasons as
outlined by many researchers (A.M. Odeh, H.T. Battaineh, International Journal of Project
Management, 2002, 67-73)
Another definition of delay by Najat defines delay as a situation where the contractor and the project
owner jointly or severally contribute to the non-completion of the project within the agreed contract
period. Likewise, Sanders and Eagles also define delay as an event that causes extended time to
complete all or part of a project (Najat, 2013).

2.1 Project Time

According to (Clough et. al., 2000) Project time has been defined as duration of the project on the date
stated in the contract, or provisional completion dates required for phases of the work. It is also
defined by (Sunny and Kim Baker, 2003) as the duration that is needed to finish the work starting from
site hand over until finished. “Duration” is the time, usually in days, taken to complete the entire
project, from starting the first task to finishing the last one estimating the duration of duties is the most
important. This is like trying to forecast the future. It is only a guess, but there are better ways to guess
than others. It can be concluded that project time is the period or time schedule that needed to
complete all the project work. The project time objective explains the project completion time. Time
delays in improvement of damages while early completion might earn rewards. Practically housing
construction project were not completed as planned .There may be many reason both predictable and
unforeseeable, for non-completion of housing project on time .In order to finish a project within the
required time and budget it is necessary that each phase of its preparation and execution, starting with
the assessment of feasibility and terminating with the handing over of the completed project by the
contractor to the client, be formulated with accuracy in order to limit delays, disputes and unexpected

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additional costs (FIDIC, 1997)
2.2 Project Time Management
According to PMBOK‟s (2004) Project time management explained as the effective and efficient
utilization of time to aid the execution of project, which begins from planning, scheduling and
controlling to accomplish the project time objectives. Degoff and Friedman (1999).Also defines
project time management as the development of a project time schedule, to manage that schedule, and
to ensure the project completes within the approved time schedule. Therefore, schedule is essential to
manage time, which occupies defining project activities, ordering the activities, intensifying the
schedule, executing the schedule and controlling the plans during project implementation. Project time
management includes the processes required to ensure timely completion of the project (Duncan,
1990).Overviews of the major processes in project time management are Activity definition; classifies
the specific activities that must be carry out to produce the different project deliverables, Activity
sequencing; identifying and documenting inter activity need, Activity duration estimating; estimating
the number of works duration which will be needed to finish individual activities, Schedule
development; analyzing activity order, activity period, and resources requirements to form the project
schedule, Schedule control; controlling changes to the project timetable. Techniques that are
frequently used in managing project duration are as follow:
2.3 Scheduling Techniques
a) Critical Path Methods (CPM)
(Clough, et. Al., 2000) equated a single, deterministic early and late start and end date for each activity
based on specified, sequential network logic and a single duration estimate. The focus of CPM is on
calculating float in order to establish which activities have the slightest scheduling flexibility
a) Program Evaluation and Review Technique (PERT);
Uses sequential network logic and weighted average duration estimate to calculate project duration.
Although there are surface differences, PERT varies from CPM primarily in that uses the distributions
mean (expected value) as an alternative of money likely estimate originally used in CPM,(PMBOK,
2004)
a) Bar Chart;
It‟s the simplest project management method for planning, scheduling and controlling. It shows in
tabular form or graphically the daily costs and accumulated costs over a specified duration. In projects
of normal delivery or constant performance, the general contractor form the bar chart formerly an
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award is made and each bar represents the beginning, duration and completion of some assigned
segment of total project. Together, the bars create a time schedule for the whole activities, Ritz, (1994)
and Degoff& Friedman, (1999).
2.4 Measurement of Project Performance
Tangen (2004) explained that performance measurement is difficult issues that normally integrate at
least three different disciplines: economics, management and accounting. Measurement of
performance has acquired significant interest recently among both practitioners and academics.
Tangen (2004) remarked the preference of a right measurement system based on a number of factors,
including the purpose of the measurement; the level of detail required; the time presented for the
measurement; the existence of obtainable predetermined data; and the cost of measurement. Navon
(2005) defined performance measurement as a comparison between the desired and the actual
performances. For example, when a deviation is detected, the construction management analyzes the
reasons for it. The reasons for deviation can be schematically divided into two groups: (a) unrealistic
target setting (i.e., planning) or

(b) causes originating from the actual construction (in many cases the causes for deviation originate
from both sources).Navon (2005) stated that performance measurement is needed not only to control
current projects but also to update the historic database. Such updates enable better planning of future
projects in terms of costs, schedules, labor allocation, etc. Pheng and Chuan (2006) stated that the
measurement of project performance can no longer be restricted to the traditional criteria, which
consist of time, cost and quality. There are other measurement criteria such as project management and
products.
Iyer and Jha (2005) stated that measuring the performance of any construction project is a very
complex process because modern construction projects are generally multi- disciplinary in nature and
they involve participation of designers, contractors, subcontractors, specialists, construction managers,
and consultants. With the increasing size of the project, number of participants in the project also
increases. The objectives or goals of all participants need not be same even in a given project. Hence
to measure performance of a project without specifying the participant and without specifying the
criteria for judging the performance holds no meaning. Past researchers have employed different
criteria such as compliance to schedule, cost and quality to judge the project performance.
Samson and Lema (2002) proposed performance measurement system. The system comprises of
construction business perspective including innovation and learning, processes, project, stakeholders,
8
and financial perspective. The indicators developed from perspectives are categorized into three main
groups which are drivers' indicators, process indicators and results indicators. The key to the success
or failure of the measurement system are leadership commitment; employees' involvement and
empowerment; and information coordination and management. Shen et al (2005) presented a method
for measuring the environmental performance of construction activities committed by a contractor
through calculating the contractor‟s environmental performance score (EPS). The level of EPS serves
as a simple indicator for measuring and communicating the level of a contractor‟s environmental
performance. Cost performance can be measured through a cost performance index (CPI) computed as
(Kuprenas, 2003):
CPI=BCWP/ACWP
Where:

BCWP = budgeted cost of the work performed ACWP = actual cost of the work performed.
From previous equation:
If CPI value of one means, the cost was as planned (at the budget Value)

If CPI value above one means, the project was below its budget if CPI of less than one means, the
project exceeded its budget.
Based on previous equation, time performance is measured through a schedule Performance index
(SPI) computed as:
SPI=BCWP/BCWS
Where:
BCWP = budgeted cost of the work performed BCWS = budgeted cost of the work scheduled.
From previous equation:
If SPI value of one means, the time was as planned (at the time Value)
If SPI value above one means, the project was ahead of schedule
If SPI of less than one means, the project was behind schedule

2.5 Causes of Delay Due to Events during Pre-construction Stage

Pre-construction stage is defined as all activities required taking a project from nomination through to
advertisement for construction contract letting (Montana, 2000).The pre-construction process includes
all the activities required to develop a project in to the detailed plan specifications and estimates that
are used by contractors as their construction plan(Montana, 2000). This is a very complex process that
9
is performed by several management unities. For large projects, the process from start to finish can
take over 10 years. The process involves many different engineering disciplines and functional areas
of expertise that include: project management, high way design, structural engineering, hydraulics,
environmental engineering, traffic engineering, right-of-way, utilities, environmental analysis and
others (Montana, 2000).
The causes of delay and cost over runs arising from pre-construction stage that lead to claims and
disputes are resulted due to the existence of high uncertainty during the early phase of a project, which
possess the most probable influencing power on the project (Wubshet 2006).
The major events that may result in delay arising from pre-construction stage are: (Construction
Change Management, 2003) are Contract document preparation, Design preparation, Tender document
preparation, Process of tendering and Contract negotiation process
2.6. Causes of Delays during Construction Stage
2.6.1. General
Factors that cause delay during implementation stage may result in additional cost to both the client
and the contractor. The loss of benefit that could have been gained if the project was completed on
time, consultant fees which ,cost associated with head office support of the project are among the costs
to be cited as the major ones incurred by the employer. Similarly, the additional cost to be incurred by
the contractor s include: additional overhead costs, costs of extension of various bonds such as
performance bond and bank guarantee, operational and maintenance cost of facilities. (Girmay, 2003).
2.7. Types of Construction Delays
General types of construction delays should be obviously examined before schedule delay analysis
begins. Schedule construction delays are grouping in many ways.
According to Trauner et al. (2009), the four main groups of construction delays are: Critical or
noncritical, Excusable or non-compensable, Concurrent or non-concurrent. Delays classified by their
timing: These are concurrent delays (CD) and non- concurrent delays (NCD).

2.7.1. Critical versus Noncritical Delays

Trauner et al. (2009) further assert that the issues of critical delay appear from the Critical Path
Method (CPM) scheduling. All projects have a critical path and if these critical activities on the path
are delayed than the completion date of the project will be extended.
The criteria determining the project completion date are as follows (Trauner et al., 2009): The project

10
itself the contractor’s plan and schedule (particularly the critical path), the requirements of the contract
for sequence and phasing, the physical constraints of the project- how to build the job from a practical
perspective.

2.7.2. Excusable versus Non-excusable Delays

According to Trauneret al. (2009) an excusable delay, in broad, is owing to an unforeseeable incident
beyond the contractor‟s or the subcontractor‟s power. The authors further clarify that delays resulting
from the following matter are known as excusable: Floods, Unusually severe weather, Intervention by
outside agencies, Errors and omissions in the plans and specifications, Differing site conditions or
concealed conditions, Lack of action by government bodies, such as building
Levy (2006) adds two more excusable delays in another study to the above list as: Transportation
delays over which the contractor has no control, Illness or death of one or more of the contractors,
Moreover, Kelleher (2005) supply the above list with two more delays as, Epidemics, Quarantine
restrictions.

2.7.3. Compensable versus Non-compensable Delays

According Callahan et al. (1992), Kartam (1999) and Mubarak (2005)an excusable delay can be
grouped as “excusable compensable” and “excusable non-compensable”. As Mubarak (2005)
explained compensable delays are caused by the owner or the designer (engineer or architect). The
contractor is typically permitted to a time extension or recovery of the costs related with the delay, or
both. Factors which are explained in the contract resulting in delays such as differing site conditions,
access to the site, changes in the work, are some examples of compensable delays. According to
Trauner et al. (2009) only excusable delays may be compensable.
Trauner et al. (2009) stress that if a delay is compensable or non- compensable basically depends on
the issue of the contract. The contract determines the types of delays in detail and for which delay the
contractor is allowed to time extension or monetary compensation.

2.7.4. Concurrent Delays

According to Mubarak (2005) concurrent delay includes a combination of two or more independent
causes of delay happening within the same time frame. According to the author, a concurrent delay
frequently includes an excusable delay and a non-excusable delay.
According to Trauner et al. (2009) concurrent delays are defined as “separate delays to the critical path
that happen at the same time”. Levy (2006) names this type of delays as overlapping delays. Nguyen
11
(2007) also explained that simultaneous delays, intertwined delays and commingled delays are other
names used for concurrent delays.
Levy (2006) further showed that concurrent delays may be generated by the contractor or by the client,
but if it happens that both parties are responsible, and these delays overlap then neither party can be
able to recover damages.
2.8. Occurrence of Construction Delay
According to Jonathan JingshengShi,S.O.Cheung and David Ardit a project consists of collections of
activities . An activity‟s completion may be delayed due to a delayed start or extended activity
duration. An activity‟s start may be delayed due to certain reasons; its duration may be extended due to
some other reasons. An activity‟s delayed completion may cause delays in the succeeding activities,
which in turn can cause a delay in the project completion (Jonathan Jingsheng Shi, 2001).
2.8.1 Identification of Causes of Delay
According to Syed M Ahmed and Salman Azhar, there are two kinds of causes of delays in
construction projects: internal and external causes. Internal causes of delays consist of the causes,
which come from four parties involved in the project: client, designer, consultant and contractors.
Other delays, which do not come from these four parties, are based on external causes for instance
from the government, weather, material suppliers,(Aftuck,1999)They explained that causes of delays
that the construction industry is facing nowadays during implementation stage are: Possessive
decision-making mechanism, Financial difficulties, In experienced personnel, Deficiency in project
coordination, In adequate and old equipment, Insufficient number of stuff, Highly bureaucratic
organization, Improper inspection approach, Different attitude between the consultant and contract
Lack of high technology equipment and Harvest time

Concerns regarding financial issues; contractors regarded contractual relationships as the most
important; and consultants considered project management issues to be the most important causes of
delays. ( Chan and Kumaraswamy, 1996).Surveyed the causes of construction delays in Hong Kong as
seen by contractors, clients, and consultants and examined the factors affecting productivity. The
results of their research specify that the five principal and common causes of delays are unforeseen
ground conditions slow decision making involving all project teams, poor site management and
supervision, client-initiated variations and necessary variation of the work. These causes were
categorized into the following eight groups Project-related factors include communication among the
various parties, project characteristics, necessary variations, speed of decision making involving all
12
project teams and ground conditions, Client-related factors contain those concerned with client
character, project financing, their variations and requirements and interim payments to contractors,
Design team-related factors consist of project design complexity and mistakes, design team
experience, and delays in producing design documents, Contractor-related factors consist of site
management and supervisions, contractor experience in planning and controlling the project, degree of
subcontracting and their cash- flow, Materials-related factors consist of shortages, materials changes,
and procurement programming and proportion of off-site prefabrication, Labor-related factors include
labor shortages, weak motivation low skill levels, and low productivity, Plant/Equipment-related
factors consist of low efficiencies, incorrect selections and breakdowns and External factors consist of
waiting times for approval of drawings and environmental concerns and test samples of materials and
restriction.
Ogunlana et al. (1996) have showed the problems of the construction industry in developing
economies are distinctive problems that cause delays in construction. They have classified them into
three groups: (a) problems of shortage or inadequacies in industry infrastructure (mainly supply of
resources), (b) problems caused by clients and consultants, and (c) problems caused by contractor
incompetence/inadequacies.
Al-Momani(2000) identified the records of 130 public building projects constructed in Jordan during
the period of 1990 to 1997. The researcher summarized that the main causes of delay in construction
projects relate to designers, late deliveries, economic conditions, user changes, weather, site conditions
and increase in quantities
Odeh and Battaineh, (2002) found that contractors and consultants agreed that owner interference,
inadequate, financing and payments, labor productivity, slow decision making, improper planning,
important causes of construction delay in Jordan.
Frimpong and Oluwoye, (2003) , identified the significant factors that cause delay and cost overruns in
the construction of ground water projects in Ghana. The results of the survey showed that all three
groups indicate that project financing, economic and natural conditions and materials are the four
major causes of delay and cost overrun. It was shown that consultants, owners and contractors agree
substantially on the ranking of the categories of delay and cost overrun factors. It was also shown that
all three groups surveyed ranked the project financing category of delay and cost overrun factors
highest, while the labor category was ranked lowest.
Assaf and AlHejji (2006) identified a time performance survey of different types of construction
13
projects in Saudi Arabia to determine the causes of delay and their importance according to each
project participant (owner, consultant, and contractor). They conducted seventy three (73) causes of
delay during the research. The most common cause of delay identified by all three parties was “change
order.”About a decade earlier, Assaf et al. (1995) studied the causes of delay in large building projects
Sambasvian and Soon (2007) identified the delay factors and their impact on project completion in the
Malaysian construction industry. The results indicated that the ten from a list of 28 different causes of
delay were: (1) contractor‟s improper planning, (2) contractor‟s poor site management, (3) inadequate
contractor experience, (4) client‟s inadequate financial resources and payments for completed work, (5)
problems with subcontractors, (6) shortage in material, (7) labour supply, (8) equipment availability
and failure, (9) lack of communication between parties, and (10) mistakes during the construction
stage.
Sweis et al. (2008) studied the causes of delay in residential projects in Jordan and concluded that
financial difficulties faced by the contractor and too many change orders by the owner are the leading
causes of construction delay.
Abd El-Razek et al. (2008) in a similar study in Egypt found that the most important causes of delay
are financing by contractor during construction, delays in contractor‟s payment by owner, design
changes by owner or his agent during construction, partial payments during construction, and non-
utilization of professional construction/contractual Management.
Han,Sungmin,Kim,Young,Park and Lee,(2009) studied that the causes of delay in Korean mega
projects are classified into five categories: insufficient planning; difficulties in acquiring right of way;
in efficiency of project management and monitoring system; conflicts between organizations; and
strong public resistance. All of the direct or indirect participants tend to maintain different interests in
the same project, making it extremely difficult to properly align them for project success. The sheer
size and complexity of the project can easily lead to in efficiency and low productivity .Even though
these causes, normally found in Korean mega projects, can be repetitive in any construction project;
they tend to bring poorer results than those of smaller projects in both size and complexity.
Asnaashari,(2009). Presented the result of an investigation in to the main factors which cause
construction delay in Iran .The results reveal that most of construction projects in Iran are subject to
delay. Cash constraints, shortage of resources, high inflation rate, delay in payments, and disputes in
the supply chain are the top causes of delay in the Iranian construction industry.

According to FIDIC87, delays in construction work mainly occurring during late

14
approval of payment certificates, Changing the scope of the work, Low contractor‟s financial and
technical capacity, Delay of drawings or instruction and Unforeseeable physical condition.
Trench Frics classified the above causes of delays as: ( Frics, 1995), Delays caused by the Contractor
Delays caused by the Client Delays caused by the Consultant and Delays caused by outside the control
of either party to the contract
Delays Caused by the Contractor

According to (Chitkar, 1998) the contractor‟s default results in due to lack of proper project
management during execution .Projects like road, buildings, bridge comprise various interrelated
constituents such as:-Resources, tasks and technology along with the people working in the project,
which combine together to achieve the common objectives. In appropriate way of managing all these
constituents may lead to delay of the project.
The following causes of delay can be recognized under lack of proper project management.
a) Planning failure (failure to hold realist and updated work plan and schedule) this is due to
Planning of unworkable plans, problem in identification of critical items during planning, lack of
understanding of operating procedures, reluctance to take timely decision, and ignorance of
appropriate planning tools and techniques ( Eshetu, 2005).
b) Organization failure
According to (Chitkar, 1998).Organizational failure happens due to incorrect organization structure,
which leads to argument among members of the staff, higher management intrusion, and insufficient
designation of authority at various levels.
c) Scarcity of resources.
According to (Wubshet, 2006) lack of competent project manager (contract Administrator),
inexperienced professionals, and failure to procure and mobilize resources as per the planned schedule
d) Controlling failure
It is due to unclear targets, in competence in adopting appropriate monitoring techniques, in adequate
information flow, and an absence of timely corrective measures (Chitkar, 1998).
e) Coordination failure
This failure happens due to communication gap at various levels, lack of day- to- day decision s to fill
procedural gaps, and absence of cooperation among staff members
(Brought, 1993)
f) Lack of qualified engineers
15
This cause happens due to Lack of knowledge about construction method, in ability to visualize is
create works, and failure of recording labor productivity rate (Eshetu, 2005).
g) Failure to hold cash flow fore cast
Since most projects‟ self-financing date lies near to the completion date of the contract period, they
often trapped with cash shortage during their construction phase, such that the progress of the work
may lag behind due to lack of finance. Therefore, the project manager should forecast the cash flow
in order to find short-term capital from other finance securities (Eshetu, 2005).

Delays Caused by the Client

The client/owner delays completion of the work in different ways .Among these, the following are the
main ones are port published by the construction industry council of (UK, 1994) Rigid budgets, Delay
to provide the right of way, Differing site condition, Changes of mind during construction Ordering
extra which delay the work and Suspension
These all are fairly common issues in construction works as a result most condition of contracts
contain provisions to permit an extension to the contract time to cover reasons where the client has
affected the completion of the works (Frics, 1995).
Delays Caused by the Consultant
According to Edward RFisk, the major causes of delays that are caused by the consultant side include
the following (Ibrhim, 2006) (Fisk, 2000), Late approval of laboratory tests, Design changes, Late
approval of payment, Poor briefing of document (i.e. specification, bill of quantity.) andPostponement
of work.
Late approval of shop drawings can be major causes of delay on construction projects which require a
clause in the contract stating the timing required for submission and approval of drawings (Ibrhim,
2006)
Delays Caused by Outside the Control of Either Party to the Contract
Because of the way construction works are carried out there will be many occasions, which are beyond
the control of either party that may lead to delay. Most contraction contracts including FIDIC red
book (1987) incorporate provision to grant extension to the completion date to cover these situation.
According to (Frics, 1995) Events which considered as outside the control of either party to the
contract are:- Force majeure, Exceptional adverse weather condition, Civil commotions or strikes use
of fuel or labor, Material market instability, Government legislation change and Government statutes

16
that restricts use of fuel or labor

2.9. Effect of delay

According to Aibinu and Jagboro (2002) the effects of construction delays on project delivery in
Nigerian construction industry identified by the following five delay effects are Cost overrun, Dispute;
Arbitration, Total abandonment, and Litigation
The studies further established that delay of construction project for whatever reasons mostly lead to
time extension. These extensions of time may lead to cost overrun where it involves extra financial
disbursement. Dispute is another effect of delay, mostly between contractor and client for either
extension of time or financial claims for under budget or variation. In construction most times,
arbitration resolution is chosen to solve the dispute between contracting parties. The authors further
explained that, if the issues are not resolve at the arbitration level then, litigation is the preceding step
for the contracting parties.

In the study by Alzan et al. (2011) also identified six (6) effects of delay as per the analysis of the
variables. They include: cost overrun and extension of time (EOT), rescheduling, affect company
reputation, loss production and efficiency as the most common effects of delay in construction
projects.
Sambasivan and Soon (2007) study revealed that the occurrence of disputes is another common effect
of construction delay. This dispute is normally between contractors and clients and it significantly
affects the progress of construction projects.
In the study of Manavazhia and Adhikarib (2002), delays in the delivery of materials and equipment to
construction sites are often a contributory cause to cost overruns in construction projects in developing
countries. The actual impact of these delays on project costs was found to be on average, only about
0.5 per cent of the total budgeted cost of the projects.

17
 CHAPTER THREE
RESEARCH METHDOLOGY
The research was designed to get opinion from consultants and construction companies in regard to the
factor causing delays and effects of delays. The possible causes and effects of delays were identified
from the literature reviews. A total of 34 delay causing factors and seven effects of projects were
identified after thoroughly reviewing the literatures and questions were designed according to these
factors to get the opinion from stake holders of Dire Dawa Adminstrative construction.
This research was intended to assessment of causes of construction project delay in Dire Dawa, city.
The chapter will presents the research design and methodology, target population, sample size
determination formula, data sources, data collection instruments and measurements and analysis
methods used in the study.
3.1. Research Design
The researcher was used both quantitative& qualitative research approaches for this study.
Quantitative and qualitative methods refers to the type of data being collected (quantitative data
involve numeric scores, metrics, and so on, while qualitative data includes interviews, observations,
and so forth) and analyzed (i.e., using quantitative techniques such as regression or qualitative
techniques such as coding) Bhattacherjee (2012)
Therefore, the researcher was used descriptive Design and quantitative and qualitative research
approach for the study.
3.2. Research Techniques
This research was used structured close ended research questionnaire to collect relevant data
information.
3.2.1. Sampling Technique
According to Singh and Masuku (2014) Stratified random sampling is useful method for data
collection if the population is heterogeneous. In this method, the entire heterogeneous population is
divided in to a number of homogeneous groups, usually known as Strata, each of these groups is
homogeneous within itself, and then units are sampled at random from each of these stratums. The
sample size in each stratum varies according to the relative importance of the stratum in the
population. Sampling conducted separately in each stratum.

18
Therefore, this research was used both stratified sampling and simple random sampling technique to
select the appropriate sample size among the target population of the study.
3.2.2. Sample Size Determination
Since the primary focus of this study is the delay in the construction of the construction project at Dire
Dawa City, the researcher will determined the sample size based on the formula from Akanni et al.
(2008) cited in Saleh(2014,p 43) which was adopted in the calculation of the sample size as follows:

η= 100
(1+ n'/ N)
n' = sample size from infinite population = S²/V²
N = total estimated population;
The V = standard error of the sampling distribution = 0.05,
S2 is the variance of the population elements and V is a standard error of sampling population.
(Usually S = 0.5 and V = 0.05)
Hence, the sample size for 30 contractors,

η = 100 /[1 + (100 / 105)] = 23 samples

This means that the questionnaire should be distributed to 23 contractor organizations in order to
achieve 95% confidence level

The sample size for 6consultants,

η = 100 /[1 + (100 / 6)] = 6 consultants engineers.

The sample size for 24clients

η = 100 /[1 + (100 /24)] = 19 sample

Therefore, according to the above calculation a total of 48 questionnaires will distributed to collect
relevant data with regard to the research purpose.
3.2.3. Data Gathering Instrument
The primary data refers to the first-hand information gathered by the researcher. The information was
collecting in the survey by making use of questionnaires. The questionnaires were hand delivered to
respondents and collected same wise after being filled.

The secondary data used in this research are information’s gathered through a literature review
19
regarding delays in construction project. Literature reviews was carried out to enhance the
understanding of theory regarding the research problem. The materials for literature reviews are such as
books, articles, magazines, internet, journals, documents and other’s research papers. The information,
which is relevant, was used as a benchmark against primary data collected to support the research.
3.2.4. Measurement of the Data
The questionnaires were analyzed based on likert scale of five ordinal measures regarding the relative
importance of each variable towards each statement. The questionnaires rated using a number scale
from 1-5.The numbers indicate the degree of agreement of each variables of the respondents to each of
the specific questions. The degree of agreements or disagreements of the respondents are outlined as
follows.
1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly Agree.
The main reason of selecting this simple scale is first, to make the respondent feel comfortable and
simple in answering those questions and second, for easy evaluation of the collected answers.

3.2.5. Data Analysis and Interpretation

Since the objective of this study was to assessment of causes of construction project delay, the
gathered data was analyzed and interpreted through contextual analysis, summarization and by using
Statistical Package for Social Science (SPSS) version 20.

In the analysis the mean score (average of the respondents answer for a specific question) method was
adopted. Likert‟s scales of five ordinal measures of agreement towards each statement will use to
calculate the mean score (average).
3.2.6. Data Presentation
The data analysis is determined to establish the relative importance of various factors that contribute to
causes and effects of construction delays. Analysis of data consists of calculating the Relative
Importance Index (RII) and Ranking of factors in each category based on the Relative Importance Index
(RII).

RII = 1 n1+ 2n2 +3n3+4n4+5n5...............................................................................Equation 3.1.

A*N
Where,
RII = Relative Importance Index,
n1, n2, n3, n4, n5 = Number of respondents answer each factor
20
1, 2, 3, 4, 5 = weight given for each factor (ranging from 1 to 5), A = highest weight
(i.e. 5 in our case),
N = total number of respondents.
The importance indices were calculated for all delay causes and the delay causes were ranked
accordingly. In order to identify how project delay can be mitigated, it is important to identify the
responsible party. Therefore, the responsibility of the delay causes is illustrated in the factor or category
column.
2.2.7. Ethical Consideration
The informed consent of all participants was obtained before starting the study. Respondents were give
a clear explanation about the nature of the study and to participate voluntarily. In addition participants
were informing about data collecting procedure and techniques. The anonymity of the subjects was
protect and guaranteed by preventing to write their names and providing clear instruction.
Furthermore, the information obtained through the questionnaire was only used for the research
purpose and the confidentiality is maintained. It is also informed that if any harm was occurred on
respondents due to their participation, the researcher was liable. Therefore, any information obtained
from the survey was treated with strict confidentiality.
3.2.8. Validity and Reliability Test
Ensuring validity in behavioral research is very important but it is a complicated and challenging
exercise. Measuring and evaluating the questionnaire consider some specifications for measuring
tools, such as the validity of questionnaire. The validity of a measuring tool means that it can measure
the relevant specification not any other variable. Content validity will used for measuring the validity
of the questionnaires of this research. For this purpose, the content of the questionnaire was prepared
by referring to scientific texts, theories and the model relevant to the subject and the questions of the
research. After doing amendments by advisor the content validity and face, validity of the
questionnaire was approved.
Reliability refers to a condition in which similar results was achieved when an instrument designed for
measuring variable is used in different places or at different time under similar conditions. The
reliability of the questionnaires was statistically calculated using Cronbach's Alpha.

21
 CHAPTER FOUR
4. RESULT AND ANALYSIS
4.1. Introduction
The results and discussion below is devised in three parts corresponding to the research questions and
also the sections of the questionnaire. These divisions can help tackle one question at a time. The first
part of the results and discussion contains the findings of the questions directed towards demographic of
respondent and identifying the importance of delay causes and raking in the level of their severity. A
total of 34 potential delay causes were selected from previous studies and grouped in seven categories:
client related factors, contractor related factors, and consultant related factors, material related factors,
labor, equipment factors, and external factors.

Thus, respondents were asked to rank delay causes factors in a five-point scale range from 1 to 5 based
on frequency of occurrence from rarely to greatly often. In the second part respondents were asked to
identify the most important and frequent effect of construction delay. Similar to delay causes, six
potential effects were selected from previous studies. These effects of delay had also a five-point scale
ranged from 1 to 5 and the results of both questions are presented and discussed accordingly.

A total of 48 questionnaires were distributed among the respondents of different backgrounds working on
construction and 46 responded fully to the questionnaire, giving 93.75% percent responds rate. One is
rejected making only 45 respondents usable in the analysis.

Table 1-Respondents designation and rate of response

Group of Frequency Percentage of total Percentage of usable

respondents

Contractor 21 43.75 46.67

Consultant 6 12.5 13.33

Client 18 37.5 40
Not returned 2 4.17 ------
Rejected 1 2.08 ------
Total 48 100 100

The experience possess by the respondents may help in providing a better understanding of this matter

22
and in better position in giving much precise answer required to the questionnaires form.

Table2 Respondents experience in construction

Construction party Percentage

Frequency
Less than 1 years 0 0%
1-5 years 6 13.33%
5-10 year 30 66.66%
More than 10 years 9 20%
Total 45 100%

Regarding number of years involved in construction, 13.33 percent of respondents have 1-5 years, 66.66
percent of those have between 5 to 10 years and 20 percent of those have 10 years or more.

4.2. The importance and ranking of delay causes by respondents

The construction delay is universally evident reality and is counted as a common problem in
construction projects. Delays in construction projects happen because of various factors and causes. A
total of 34 delay causing factors were identified and classified in to seven factor groups: client related
factors, contractor related factors, and consultant related factors, material related factors, labor,
equipment factors, and external factors.
In this respect the respondents were asked to rank the importance of delay causes using five points’
scales. Resulted by the research methodology of questionnaire survey and evaluated by statistical
formula for each factor group are shown below.
Table 4-3 Importance and ranking of Client related delay causes
Importance and ranking of Client related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Rankin
g
Progress on payments
3 0 10 11 21 0.809 1
Delivering the site to the contractor on time 0 4 4 26 10 0.773 3
Communication and coordination 0 3 8 30 4 0.756 5
Orders by owner during construction
3 0 8 24 10 0.769 4
Revising and approving design documents 0 4 10 12 19 0.804 2

23
 Incapability of Client’s representative 7 6 13 14 4 0.596 6
From Table 4.3 the results show that the respondent ranked the most important client related delay
causes in the construction of Dire Daw Administration construction projects were Progress on
payments (RII=0.809), Revising and approving design documents (RII=0.804), Orders by owner
during construction (RII=0.769), Delivering the site to the contractor on time (RII=0.773) and
Communication and coordination (RII=0.756)

Table 4-4 Importance and ranking of Contractor related delay causes

Importance and ranking of Contractor related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Ranking
Rework due to construction 0 4 9 14 18 0.804 1
Communication and coordination 0 4 26 14 1 0.653
3
Planning and scheduling of project 5 4 10 18 8 0.689 2
Qualification of contractor’s 3 16 11 8 7 0.600 5
technical staff
Subcontractor’s work 0 9 20 16 0 0.631 4
As shown on the above table, the most important and highly ranked contractor related delay causes
in the construction of DDA projects, are Rework due to construction (RII=0.804), Planning and
scheduling of project (RII=0.689), Communication and coordination (RII=0.653), poor site
management (RII=0.686), poor coordination and communication (RII=0.686), Subcontractor’s work
(RII=0.631) and Qualification of contractor’s technical staff (RII=0.600).

Table 4-5. Importance and ranking of Consultant related delay causes

Importance and ranking of Consultant related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Ranking
Experience of consultant 0 12 10 9 14 0.711 4
Communication and coordination 0 3 27 8 7 0.684 5
In design documents 0 0 4 22 19 0.867 1
Details data in drawings 0 4 7 6 28 0.858 2
Advanced engineering design software 0 0 14 21 10 0.782 3
The results of the questionnaire survey showed that, the most important and highly ranked Consultant
related delay causes in the construction of DDA projects, are In design documents (RII=0.867), Details
data in drawings (0.858), Advanced engineering design software (RII=0.782), Experience of consultant
(RII=0.711) and Communication and coordination (RII=0.684).

Table 4-6 Importance and ranking of Material related delay causes

24
 Importance and ranking of Material related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Rank
ing
Shortage of construction materials 4 7 0 14 24 0.862 1
Delay in material delivery 0 0 7 17 21 0.862 1
Change in material type during construction 0 4 10 13 18 0.800 3
Late procurement of materials 0 3 9 11 20 0.787 4
Rise in material price 0 7 10 18 10 0.738 5

The most important and highly ranked material related delay causes in the construction of DDA projects,
are Delay in material delivery (RII=0.862), Shortage of construction materials (RII=0.862), Change in
material type during construction (RII=0.800), Late procurement of materials (RII=0.787) and Rise in
material price (RII=0.738).

Table 4-7 Importance and ranking of equipment related delay causes

Importance and ranking of Equipment related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Ranking
Shortage of construction Equipment 3 0 17 19 6 0.711 1
Equipment breakdown 3 10 14 11 7 0.640 2
Low level of operator’s skill 10 3 21 7 4 0.564 4
Low productivity and efficiency of equipment 7 6 17 14 1 0.582 3
Shortage of equipment parts 10 7 14 10 4 0.560 5

The most important and highly ranked equipment related delay causes in the construction of DDA
projects, are Shortage of construction Equipment (RII=0.711), Equipment breakdown (RII=0.640), Low
productivity and efficiency of equipment (RII=0.582), and Shortage of equipment parts (RII=0.560).

Table 4-8 Importance and ranking of labor related delay causes

Importance and ranking of Labor related delay causes by RII value
Delay Causes 1 2 3 4 5 RII Ranking
Labors 0 4 23 11 7 0.693 2
Skill of labors 10 27 7 1 0 0.396 3
Personal relations among labors 0 0 26 7 12 0.738 1
The most important and highly ranked labor related delay causes in the construction of DDA projects,
are Personal relations among labors (RII=0.738), Shortage of labor (RII=0.693) and Skill of labors is
(RII=0.393).

Table 4-9 Importance and ranking of External delay causes

25
 Importance and ranking of External delay causes by RII value
Delay Causes 1 2 3 4 5 RII Ranki
ng
Delay in obtaining permit 7 14 6 17 1 0.560 3
Rise in price of material 4 3 17 7 14 0.706 1
Weather condition 10 13 15 6 1 0.489 4
Regulatory changes 9 19 8 8 1 0.480 5
Unforeseen site condition 3 6 15 18 3 0.653 2

As shown on Table 4.9 above, the most important and highly ranked external factor of delay causes in
the construction of DDA projects, are Rise in price of material (RII=0.706), Unforeseen site condition
(RII=0.653), Delay in obtaining permit (RII=0.560), Weather condition (RII=0.489), and Regulatory
changes (RII=0.480).

Table 4-10 Top ten delay causing factors

Rank Delay Causes RII Factor (Category)
1 In design documents 0.867 Consultant
2 Delay in material delivery 0.862 Material
3 Shortage of construction materials 0.862 Material
4 Details data in drawings 0.858 Consultant
5 Progress on payments 0.809 Client
6 Revising and approving design documents 0.804 Client
7 Rework due to construction 0.804 Contractor
8 Change in material type during construction 0.800 Material
9 Advanced engineering design software 0.782 Consultant
10 Orders by owner during construction 0.769 Client

As shown on Table 4.10, from the overall results obtained from the questionnaire response, delay causes
that hamper the performance as well as timely delivery of the project are presented in the level of their
severity.
Top Delay Causes

In Table 4.10 above, as ranked by the respondent, 10 most important factors causing delay in construction
project are summarized and presented. Consultant In design documents with RII=0.867 is suggested as
the most important factor causing delay on building construction projects. This is closely followed by

26
Delay in material delivery and Shortage of construction materials with RII=0.862. Consultant Details data
in drawings RII=0.858 comes third followed by Shortage Progress on payments RII=0.809. Revising and
approving design documents client involved in the project with RII=0.804 ranked 6th. Rework due to
construction and Change in material type during construction ranked 7th and 8th with value of RII=0.804
and 0.800 respectively. Advanced engineering design software ranked 9th with RII=0.782 followed by
Orders by owner during construction with RII=0.769
4.3. The Importance and Ranking of Effects of Delay by respondents
The desire to finish a project on time, under the planned budget, and with the highest quality is common
goals for all contracting parties, including the Owner, Contractor and Consultant. Delay usually result in
losses of one form or another for everyone. The causes lead to the effects of delay on construction
projects. The Five effects of delay identified were:
1) Time overrun
2) Cost overrun
3) Abandonment of the project
4) Dispute between parties
5) Arbitration
6) Litigation and court case
In this respect the respondents asked to rate their agreement on the effect of delay by correlating to delay
causes using five points scale (Strongly disagree, disagree, slightly disagree, agree and strongly agree)
having a score from 1 to 5 respectively. Participants were also asked to correlate the effects with causes
of delay and space is provided to give their comment. The importance and ranking of effects of delay
resulted by the research methodology of questionnaire survey and evaluated by statistical formula for
each factor group are shown below.

The Importance and Ranking of effects of Delay by respondents

Table 4-11 Importance and ranking of effects of delay

27
 Importance and ranking of effects of delay by RII value
Str. Sligh. Str.
Effects Disagre Agre RII Ranking
Disagre e Disagre e Agree
e e
Time overrun (Failure to 0 0 0 11 32 0.906 1
complete a project within
the estimate time)
Cost overrun (Additional cost) 0 0 0 24 21 0.893 2

Dispute (Disagreement) 0 0 13 17 14 0.787 3

Arbitration 0 4 11 23 7 0.747 5
(Negotiation or mediation
Total abandonment (As 6 8 17 11 3 0.587 6
putting a stop or an end)
Litigation (Court case) 0 6 3 27 9 0.773 4

Results from Table 4.11 shows that Time overrun ranked the highest with RII of 0.906, while cost overrun or
increase in final cost of the project is ranked second with RII of 0.893. Time in every phase of project life is
really essential, when a contract is done and the date is given, the effect of delay really affects time and
money. Dispute among parties involved is ranked tthird with RII value of 0.787. Time affects every other
factor, the increase in final cost; more money has to be spent. Arbitration and litigation were ranked five with
RII values of 0.747. Abandonment of the project was ranked sixth with RII values and 0.587. Dispute among
parties involved can induce litigation and arbitration and if the decision of the arbitration panel is not
acceptable to either of the parties involved, this can lead to big time legal battle which can truncate the
progress of the work..
The correlation between the causes and effects of delay shows that the time overrun refers to late completion
or late delivery, from the time specified or agreed by all parties, of construction project. The main causes for
the time overrun are financial problems, late payments for the completed work and ongoing work, change
orders, inefficient planning and scheduling, poor site management, delay in material delivery, etc.

Summary of Findings
The outcome of analysis from this study can be said to be of great relevance to the construction
industry. Just like any other construction industries, the Ethiopian construction is also prone and liable
to delay. The factors that cause delay in construction industry varies across different countries based on
28
the political and socio economical condition of a particular country. In addition, the environment
condition of a country significantly influences the extent to which construction projects are delayed and
the effects are pronounced.

There are many factors that induce delay on construction projects; however in this study the factors are
limited to 34 factors. These delays causing factors are grouped in eight categories and they were ranked
according to the Relative Importance Index. The factors: owner interference, delay caused by
subcontractors, long waiting for approval of test and inspection, shortage of construction materials,
labor supply and productivity, frequent change order inappropriate organizational structure linking all
parties involved and problems with neighbors are found to be the most important from each category.
The result shows that the real estate industry of the country has a different character in its construction
stage than other constructions. The involvement of the client is highly pronounced to extent that it is

ranked 1st in being a delay causing factor. Thus, showing importance level of delay causing factors may
vary from based on the construction nature like real estate development.

Analysis was also carried out on the effect of delay on the project work. Time overrun, cost overrun and
dispute among parties involved were ranked highest. Time is factor that is very essential in all activities
that has to be carried out, in the contract document. A specific time phase is given for delivery of
project and if the time is being exceeded more money is often spent which could lead to increase in final
cost of project leading to cost overrun and finally to dispute.

29
 CHAPTER FIVE
1. CONCULUSION AND RECCOMANDATION
This chapter includes the conclusions and recommendations that would help in solving the occurrence
of delay and its effects in the construction of real estate projects in Ethiopia. The first question of this
study was to determine the real delay causing factor in real estate construction projects. The second
question was to identify the effects of construction delays in the projects. The final and third question
was discussing how delays can be minimized in construction.

5.1 Conclusions
One of the most important problems that may arise in the construction project is delays and the
magnitude of these delays varies considerably from project to project. Some projects are only a few
days behind the schedule: some are delayed over a year. So, it is essential to define the actual causes of
delays in order to minimize and avoid the delays in any construction projects.
Based on the literature reviews and the results of questionnaire responses the following conclusions are
drawn.
The following causes are identified as a potential delay causes on real estate construction projects.
Owner interference which results in design change, material change is the most influential delay causing
factor in real estate construction.
 Frequent change orders, mistakes in design documents, mistakes and discrepancies in design
documents and discrepancies in contract documents are found as real causes of delay in the real
estate construction projects. Shortage of construction material, delay by sub contracts and lack
of communication between these parties are also found as delay causing factors.
 Time overruns cost overrun, dispute, arbitration, litigation and, abandonment are the effects of
the delay encountered so far.
Besides all, other non-quantifiable delay damages that cannot be stated in terms of money such as
inferior quality end product, inability to provide service and/or loss of client opportunities.

5.2. Recommendations

The purpose of the following recommendation is not to deeply address areas that need improvement.
The intention is only to point out some major issues that need consideration to enhance the current
project management of real estate construction projects. The analysis of the questionnaires has

30
suggested the client, the contractors and the consultants have contributed their own share in causing
delay to the project. Hence the following recommendations are focused towards improvements to be
made on these causes.
Reducing Owner interference
 Owners should be informed about their role and the effect scope changes. The culture of
thinking to change while the construction is on process must be avoided by effectively utilizing
the design stage to eliminate future changes. Preparation of 3D models must be encouraged to
clearly see the design out puts and to accommodate change if necessary.
Eliminating mistakes and discrepancies in contract design and documents by
 Conducting proper investigation and giving adequate time in the design and preparation of
documents.
 Conducting design reviews by highly qualified and experienced group of professionals.
Constructability reviews and value engineering studies on the final design must be conducted
before going to tendering. These review tasks can also be given to the design review consultant
if there is lack of qualified in-house staffs.
 Making sure that the contract documentation is free of ambiguous terms of contract; errors
and omissions; plans and specifications are adequately referenced and coincide with the
terms of references before entering in to contract. Design consultants’ liability has to include
fitness for the purpose of the design work.
Improving the performance of consultant
 A standard checklist has to be prepared with all necessary details for reviewing the
completeness of designs, plans, specifications and tender documentations. Accordingly,
documentations have to be checked before floating the tender. The contract documentation
problem areas encountered or design deficiencies on projects undertaken previously can be
used to develop the checklist;
 Design consultants have to cover (indemnity) the additional costs that the client incurs due to
incorrect designs or insufficient data supplied by them and this has to be clearly included in
the service contract agreement.
 Consultants, although they are directly hired by the client, their specific position is to hand
the contract in neutral position. For the sake of granting their business with the client. They
shouldn’t lose their neutrality and professionalism in administering the contract.
31
Improving the communication between all parties
 Standard reporting systems must be followed in reporting progress report
 Periodical meetings must be organized to facilitate the communication between all parties
involved.
Improving the performance and capacity of contractor
 Contractors should prepare proper plan and achievable schedule using the appropriate scheduling
techniques and revise as appropriate. Contractors should apply effective site management system for
different activities of the project so as to avoid rework of activities and low labor productivity that
will result time and cost overruns.
 Contractors should involve qualified and responsible subcontractors. The subcontractors must be
involved with a proper contractual agreement with a contractor that can transfer risk from contractor
to sub- contractors.
Recommendations for future studies
 More research on construction delays should be done in order to develop guidelines, or methods of
minimizing the effects of construction delays in Ethiopia. Furthermore, similar research should be
performed in various provinces or cities. In order to providing more reliable data, it is required to
carry out studies for each specific type of construction projects, including highways, dam
construction projects, utilities and etc.

32
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Appendix:
Questioners
ADDIS ABABA MEDICAL BUSINESS COLLEGE
Dear Sir/Madam Dear Sir/Madam
This study is designed to gather information on “Assessment of causes of construction project
delay in Dire Dawa administration”. In the completion of Masters of Business Administrative at
Addis Ababa Medical and Business College. Your genuine voluntary response has significant
value for the completion of this thesis. The information you provide will be only used for the
purpose academic study and will be kept strictly confidential. You do not need to write your name
or personal related issues. Finally, I would like to thank you for your cooperation.
Appendix 1: General Information:
Please add (√) in the box below as appropriate:

1. Type of Organization:

Contractor Consultants Client

2. Gender: Female Male
3. Age : less than 30 years 31---40 years
:
41--- 50 years greater than 50 years
4. Educational background:
BA degree Masters Degree and above
5. Job title of the respondent:
Project Manager Site Engineer/ office engineer
Staffs
6. Years of experience of the respondent in construction site
Less than 1 year 1 to 5 years
5 to 10 years Greater than 10 years
36
 Appendix 2:

The following statements are considered as the major causes of delay in construction projects.
Below are numbers of causes of delay in the construction projects. From your experience,
please express your opinion on the importance of the following factors as major causes of
construction delay in the Dire Dawa city. (Please tick (√) the appropriate column according
to their degree of rank). Rank of your response: 1= Strongly Disagree, 2= Disagree, 3=
Uncertain, 4= Agree and 5= Strongly Agree
Category Causes of delay Strongly Uncert Agree Strongly
Disagree Disa ain (4) Agree
(1) gree (3) (5)
(2)
Progress on payments
Delivering the site to the contractor on time

Communication and coordination

Owner Orders by owner during construction
related
Incapability of Client’s representative
Revising and approving design documents

Contractor Rework due to construction

Related Communication and coordination
Planning and scheduling of project
Qualification of contractor‟s
technical staff

Subcontractor‟s work
Category Causes of delay
Stron Disa Uncert Agre Strongly
gly g ree ain e Agree
Disag (2) (3) (4) (5)
ree
(1)
Consult Experience of consultant
ant Communication and coordination

37
related In design documents
Details data in drawings
Advanced engineering design software
Material Shortage of construction materials
related Delay in material delivery
Change in material type during construction
Late procurement of materials
Equipme Shortage of construction Equipment
nt related Equipment breakdown
Low level of operator’s skill

Low productivity and efficiency of

equipment
Shortage of equipment parts

Labor – related Labors

Skill of labors
Personal relations among
labors
External l Delay in obtaining permit
factors Rise in price of material
Weather condition
Regulatory changes
Unforeseen site condition

38
Effects of Construction Delays

Appendix 3: The following statements are identifying the effect of construction

delay in Dire Dawa City.
Please tick and fill in the blanks if you select others. Each scale
represents the following rating:

(1)Never (2)Seldom 3)Sometime

(4)Mostly (5)Always
Question:

What is the effect of construction project delays at Bole Arabssa site?

EFFECT 1 2 3 5
4

1 Time overrun (Failure to complete

a project within the estimate time)
2 Cost overrun (Additional cost)

3 Dispute (Disagreement)

4 Arbitration (Negotiation or
mediation
5 Total abandonment (As putting a
stop or an end)
6 Litigation (Court case)

If you have any suggestion with the study area please specify here