Proposal@etconp
Proposal@etconp
Proposal@etconp
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
Contents
Abstract .................................................................................................................................................. 2
1. Introduction ..................................................................................................................................... 3
1.1. Background of the study ......................................................................................................... 3
1.2. Statement of problem ............................................................................................................. 4
1.3. Research Objective ................................................................................................................ 5
1.4. Research Question ................................................................................................................. 5
1.5. Significance of the study ......................................................................................................... 6
1.6. Scope of study ........................................................................................................................ 6
1.7. Limitation................................................................................................................................. 7
1.8. Organization of the paper ....................................................................................................... 7
2. Literature review ............................................................................................................................. 8
2.1. Introduction ............................................................................................................................. 8
2.2. Definition of construction delay and type of construction delays ........................................... 8
2.3. Cause of construction delays ................................................................................................. 9
2.3. Definition of Cost overrun ....................................................................................................... 9
2.3.1. Cause of cost overrun ..................................................................................................... 9
2.4 Summary literature review ......................................................................................................... 10
3. RESEARCH METHODOLOGY .................................................................................................... 11
3.1. Introduction ........................................................................................................................... 11
3.1.1. Research and Research Methodology ......................................................................... 11
3.1.2. Research Philosophy .................................................................................................... 12
3.1.3. Research Approach ...................................................................................................... 12
3.1.4. Triangulation Research ................................................................................................. 13
3.1.5. Approaches in Construction Technology ...................................................................... 13
3.2. Research Methods Adopted ................................................................................................. 14
3.2.1. Technology and Literature Review ............................................................................... 14
3.2.2. Survey ........................................................................................................................... 14
3.3. Data collection ...................................................................................................................... 16
3.4. Interview Technique.............................................................................................................. 16
3.5. Data analysis ........................................................................................................................ 17
3.6. Summary............................................................................................................................... 17
Time schedule for the research ........................................................................................................... 18
Budgeted cost the research ................................................................................................................. 18
Bibliography ......................................................................................................................................... 19
1
join us on telegram:-@etconp
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
Abstract
Construction delays are occurring in every phase of a construction project and are
common problems in construction projects in Addis Ababa. Moreover, it is well known
that the delays in construction projects are the major causes of project failure. If the
delay is not identified and the corrective project management decision is not taken in
time a project may incur extra cost and extension of project time, which gives rise to
dissatisfaction to all the parties involved and nowadays it’s becoming a major
obstruction for their development for developing countries like Ethiopia. This research
first identified 88 key factors causing delay in Ethiopian construction industries, and then
the most common and critical causes of construction delay were evaluated by using
both the data collected in a survey of construction managers, resident engineers,
contractors, and clients, and interviews with senior professionals in the field.
In Addis Ababa, the number of public and private building construction projects is
increasing from time to time. However, it becomes difficult to complete projects in the
allocated cost and time. Taking into account the scarce financial resources of the
country, cost overrun is one of the major problems in Addis Ababa. Therefore, this
research will be carried out to dig-out information on the factors that cause cost overrun
and time delay during construction and their effects on public building construction
projects in Ethiopia.
2
join us on telegram:-@etconp
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
1. Introduction
1.1. Background of the study
Ethiopia is the fastest-growing, non-oil driven economy among African countries. The
country has showed a remarkable growth over the past ten years with average annual
growth GDP of 10.9%. Recently, the contribution of the industry sector (which is 21.2%)
and particularly that of the construction sector to the national economy is given high
prominence and is mainly driven by the energetic performance of the construction sub-
sector Despite the construction sector has high importance, several defects are being
noted in the sector that require immediate action One significant problem is significant
delay of infrastructure and construction projects which can hold back or impair planned
economic development
Addis Ababa is the most populous area in Ethiopia and it is the capital of Africa, so it is
touristic destination, besides that the number of populations is very large and is
estimated around 3.4 million in 527km2 area. There is high demand for housing and
construction so to satisfy this demand the schedule of the work has to be very fast and
resource allocation has to very adequate.
As a result, the demand, the construction industry is booming but the characteristics of
construction industry is also known for its delays and its frequent calamities between the
contractor and the client. In addition, the quality of the built structure (building,
pavement and other infrastructure) are very poor. Many construction projects are behind
the schedule and/or over budget. Though the range has dissimilarity within researchers,
many literatures have indicated that, in our country all (100%) public construction
projects are going through cost overrun problem ranging1% -300% from the estimated
cost. (Ashebir Shiferaw, 2017)
3
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
4
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
5
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
The contractors and projects sites which selected for this specific research are
6
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
1.7. Limitation
Regarding this title many researchers hasn’t made publication particularly about Addis
Ababa and there are very few publications related to our title so we couldn’t have
adequate information about our project tile and it needs another intensive investigation
regarding the project title which is not economically and time taking. The other limitation
is the data recording culture is very week in the industry
The sampling method that will be used for this research is non probabilistic sampling,
specifically Convenience Sampling and purposive sampling. Some of limitation that
come from using non probabilistic sampling are: -
It impossible to identify how well the population is represented
It is impossible to be confidence based on the sample collected in the research
But the research is going to improve the quality of the sample by in-depth interview and
involving parties that are directly or indirectly connected to the issues at hand.
7
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
2. Literature review
2.1. Introduction
A construction project is considered successful if it completes on the agreed budget,
schedule, quality and also considering the health and safety of the employees. Public
construction projects in Ethiopia are parts of the country’s development initiative. It
shares considerable amount of the country’s scarce financial resources. In Ethiopia, the
construction industry is the highest recipient government budget in terms of government
development program. Consequently, public construction projects consume an average
annual rate of nearly 60% of the government’s capital budge (Koshe, 2016).
Another issue in a construction project is cost overrun. Cost overrun is a common
phenomenon that almost associated with most of the projects in construction industry. It
is more severe in many developing countries where these overruns sometimes go
beyond 50% of the expected cost of the project. (bank, 1998)
Accordingly, (Gajare, 2015) defines critical delays that affect the milestones date and
critical activities. While non critical delays have no effect on the project completion date.
An excusable delay, in general, is a delay that is due to an unforeseeable event beyond
the Contractor’s or the Subcontractor’s control. Non-excusable delays are events that
are within the Contractor’s control or that are foreseeable. (Trauner, 2009)
A compensable delay is a delay where the Contractor is entitled to a time extension and
to additional compensation. A non-compensable delay means that although an
excusable delay may have occurred, the Contractor is not entitled to any added
compensation resulting from the excusable delay. Thus, the question of whether a delay
is compensable must be answered.
Concurrency delays are difficult to define as it is not mentioned in most contract
specifications, and further more how additional compensation for time extension or
responsibility that the contractor is entitled to is not defined. (Gajare, 2015)
8
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
(Nega, 2008) defines cost overrun as a, the difference between the final actual cost of a
construction project at completion and the contract amount, agreed by and between the
owner and the contractor during signing of the contract.
9
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
10
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
3. RESEARCH METHODOLOGY
3.1. Introduction
This chapter describes the methodology and methods we will adopt for our desertion. It
starts by providing an introduction to general research methodologies followed by
reviews of different approaches in and Construction time and cost researches. The
methodologies adopted for various stages of this research are then presented and
justified.
The contents of this chapter are as follows. Section 4.2 presents a general overview of
the research concept and methodology. The research philosophy and approach are
briefly discussed in sections 4.3 and 4.4 respectively. Techniques available for the
chosen research approach are also discussed. Section 4.8 explains the methodology
adopted for this research.
11
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
12
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
13
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
3.2.2. Survey
The survey method is going to be adopt to learn the magnitude of which time and cost
are used in the construction at Addis Ababa and investigate the construction industry’s
readiness to adopt new technology. This method was chosen because it provided an
opportunity to discuss key topics with the construction practitioners. It is an appropriate
method to discover the current the construction cost and time of construction in the city
and to gather the stakeholder’s opinions regarding the cost and time of construction in
our city.
The questionnaire will design objectively to investigate construction time and capital on
construction projects in Addis Ababa. Relevant questions relating to the waste, time
14
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
delay, construction logistics services and time management were developed utilizing
both closed questions and open-ended questions.
For close-ended questions, a five-point Likert scale is going to be used
(e.g. 1 – strongly disagree, 2 – disagree, 3 – neutral, 4 – agree, and 5 – strongly agree).
Closed-ended questions limit the respondents‟ answers to the survey and allow more
questions to be answered, while open-ended questions give freedom to respondents to
give recommendations for improvement and address certain issues.
15
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
16
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
Analysis of the collected data involved both single case and cross-case analysis. Single
case analysis produced individual case reports and cross-case analysis made a
comparison of the „embedded unit of analysis‟ across the cases. The results were used
to generate realistic scenarios to support the development of context-aware application
for managing capital and time
Content analysis was used to analyze the data which will gathered from personal
interviews. this is the type of research whereby data gathered is categorized in themes
and sub-themes, so as to be able to be comparable. A main advantage of content
analysis is that it helps in data collected being reduced and simplified, while at the same
time producing results that may then measure using quantitative techniques. Moreover,
content analysis gives the ability to researchers to structure the qualitative data
collected in a way that satisfies the accomplishment of research objectives. However,
human error is highly involved in content analysis, since there is the risk for researchers
to misinterpret the data gathered, thereby generating false and unreliable conclusions
3.6. Summary
This chapter has reviewed, described and presented the research philosophies,
methodologies and methods available to address the research objectives. The general
research methodologies have been presented in order to provide the background for the
methods that will be adopt in this research. The key research steps and tools used have
been presented. The methods adopted for each research task have also been
discussed.
17
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
18
join us on telegram:-@etconp
THE CAUSE OF CONSTRUCTION TIME DELAY AND COST OVERRUNS IN ADDIS ABABA
Bibliography
Ahbab, C. &. Ç. T., 2012. An Investigation on Delay, Cost Overrun, Quality, and Health and Safety
Problems in Construction Projects. s.l., s.n.
Ashebir Shiferaw, W. J. a. M. M., 2017. Causes of Cost Overrun in Federal Road Projects of Ethiopia in
Case of Southern District. American Journal of Civil Engineering, 2017(vol 5), pp. 27-40.
Bryman, 2012.
Gajare, Y. &. A. P. &. P. D., 2015. Assessment Of Significant Causes And Effects Of Delays On The Projects
Completion Period. International Journal of modern trends in Engineering and Research, Volume Vol.2,
pp. 88-93.
Greenfield, 1996.
Koshe, W., 2016. Investigating Causes of Construction Delay in Ethiopian. Journal of Civil, Construction
and Environmental Engineering, Volume Vol. 1.
Layder, 1993.
Lee, 1991.
Myers, 1997.
Naoum, 2007.
Naveenkumar.G.V, P., 2016. Factors Influencing Time and Cost Overruns in Construction Projects.
International Journal of Innovative Research in Science, Engineering and Technology,, Vol4(4).
Nega, F., 2008. CAUSES AND EFFECTS OF COST OVERRUN ON PUBLIC BUILDING CONSTRUCTION
PROJECTS IN ETHIOPIA. Master’s Thesis, Addis Ababa University, Addis Ababa.
Trauner, T., 2009. Construction Delays. Second Edition ed. London: Elsevier Inc..
19