ADDIS ABABA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF PROJECT MANAGEMENT

ASSESSEMENT OF FACTORS CAUSING DELAY OF

CONSTRUCTION PROJECTS: EVIDENCE FROM
CONSTRUCTION PROJECT MANAGERS

A RESEARCH PROJECT WORK SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE DEGREE OF MASTER OF ART IN PROJECT MANAGEMENT

By: Netsanet Berhanu

Advisor: Dereje Teklemariam (Ph.D.)

Addis Ababa

June, 2018
 ADDIS ABABA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF PROJECT MANAGEMENT

ASSESSEMENT OF FACTORS CAUSING DELAY OF

CONSTRUCTION PROJECTS: EVIDENCE FROM
CONSTRUCTION PROJECT MANAGERS

BY: Netsanet Berhanu

APPROVED BY BOARD OF EXAMINERS

Dean graduate Studies Signature

Advisor Signature

External Examiner Signature

Internal Examiner Signature

 Declaration about the research

I, the undersigned, affirm that this research paper entitled: Assessment of factors causing
delay of construction projects: Evidence from construction project managers, is my original
work; prepared under the guidance of Mr. Dereje Teklemariam (Ph.D.) and all references are
acknowledged.

Finally, I also assure that this thesis has not been employed and submitted in any way to any
educational institutions for a requirement of getting a degree award.

Netsanet Berhanu

Name Signature

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 Endorsement

This research paper entitled “Assessment of factors causing delay of construction projects:
Evidence from construction project managers” is prepared by Netsanet Berhanu and shall
be submitted to Addis Ababa University, School of Graduate Studies for examination with
my approval as a university advisor.

Dereje Teklemariam, Ph.D.Signature

School of Commerce

June 2018

Acknowledgements

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I would like to express my gratitude to Dr. Dereje Teklemariam,my advisor, for his
comments and suggestions on this research paper. My wife Meseret Desta and my children
Efrata & Meklit deserver gratitude for understanding me in every regard during times of my
study. I am grateful for my brother Bekalu Tadesse for his help in editing the final document.
All respondents of the questionnaire who were promptly responding to my enquiry during
times of urgency, your cooperation had paramount value for realization of this project study.

Last but not list my thanks goes to the Lord Jesus Christ and his mother the Blessed Virgin
Mary for being by my side throughout my journey in life.

Table of Contents

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 CHAPTER ONE; INTRODUCTION..................................................................................1

1.1 Background of the Study........................................................................................1

1.2 Statement of the Problem........................................................................................4
1.3 Research Questions.................................................................................................5
1.4 Objective of the Study............................................................................................5
1.4.1 General Objective 5

1.4.2 Specific objective 5

1.5 Significance of the Study........................................................................................6

1.6 Scope of the Study..................................................................................................7
1.7 Limitations of the Study..........................................................................................7
1.8 Ethical Considerations............................................................................................7
1.9 Organization of the Research Report......................................................................8
CHAPTER TWO; LITERATURE REVIEW....................................................................9

2.1 Theoretical Review.................................................................................................9

2.1.1 Projects and Project Management-----------------------------------------------9

2.1.2 Project Management Knowledge Areas---------------------------------------12

2.1.3 Construction Projects 13

2.2 Empirical Review..................................................................................................17

2.3 Conceptual Framework.........................................................................................20
CHAPTER THREE; RESEARCH METHODOLOGY..................................................22

3.1 Introduction...........................................................................................................22
3.2 Description of the study area/Organization...........................................................22
3.3 Research Design....................................................................................................22
3.4 Data type and sources...........................................................................................23
3.4.1 Data Type 23

3.4.2 Data Sources 23

3.5 Target Population and Sample..............................................................................24

3.5.1 Target Population 24

3.5.2 Sample Size determination 24

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 3.5.3 Sample Selection 24

3.6 Data collection methods and tools........................................................................25

3.7 Data Analysis and Presentation.............................................................................25
3.7.1 Data Analysis 25

3.7.2 Data Presentation 26

CHAPTER FOUR; DATA RESULT AND DISCUSSION.............................................27

4.1 Questionnaire Response Rate...............................................................................27

4.2 Background information of respondents...............................................................27
4.3 Data analysis to explore prevalence of delay in construction projects.................28
4.4 Samples of major delay factors.............................................................................30
4.5 Analysis of Organizational contributions for delay factors..................................34
4.6 Further elaborative case studies............................................................................36
4.6.1 Summary of Key Implications of Case Studies------------------------------37

CHAPTER FIVE; CONCLUSTION & RECOMMENDATION...................................39

5.1 Conclusion............................................................................................................39
5.2 Recommendations.................................................................................................40
REFERENCES.......................................................................................................................41

APPENDIXES.........................................................................................................................44

ANNEX -1...............................................................................................................................44

ANNEX -2...............................................................................................................................45

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 LIST OF FIGURES

FIGURE 2.1 PROJECT TRIPLE CONSTRAINTS...........................................................10

FIGURE 2.2 PROJECT DELAY FACTORS......................................................................20

FIGURE 4.1 COMPARISON EXECUTED VS DELAYED PROJECTS........................29

FIGURE 4.2 RANK OF DELAY FACTORS......................................................................34

LIST OF TABLES

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TABLE 4.1 QUESTIONNAIRES RESPONSE...................................................................27

TABLE 4.2 RESPONDENT’S INFORMATION................................................................27

TABLE 4.3 RESPONDENT’S WORK EXPERIENCE.....................................................28

TABLE 4.4 PROJECTS EXECUTED VS DELAYED.......................................................30

TABLE 4.5 MAJOR DELAY FACTORS IN A RANK......................................................33

TABLE 4.6 CONTRIBUTION RANK OF ORGANIZATIONS......................................35

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 LIST OF EQUATIONS

EQUATION 4.1 FREQUENCY INDEX..............................................................................30

EQUATION 4.2 SEVERITY INDEX...................................................................................30

EQUATION 4.3 RELATIVE IMPORTANCE INDEX......................................................30

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 LIST OF ACRONYMS AND ABBRIVATIONS

FI Frequency Index

MWDC Ministry of Urban Development and Construction

PMBOK Project Management Body of Knowledge

PMI Project Management Institute

RII Relative Importance Index

SI Severity Index

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 Abstract

This study assessed major factors causing delay of construction projects implemented by
Ethiopian private local Grade-1 and Grade-2 contractors from project manager’s evidences.
Questionnaires were distributed to respondents who are purposively selected from project
manager’s population in Grade 1 and Grade-2 local private contractors. The respondents
were asked to rank the delay factors based on both frequency of occurrence and severity of
impact. The questionnaire also enquires respondent’s experiences and number of projects
executed vs delayed. Analysis of these data indicated that out of the total 108 projects
executed 48 projects are delayed, this is 46% of the executed projects. This reveals
prevalence of serious delay problems in the projects being executed .The top ranked delay
factors were; delay of payment, design problem, delay of designs, Increase in price of
materials and wage, limitation of considering contingency plans, limitations of leadership,
limitations of communication, delay in decision making and commitment problems. It has
recommended that future researches may study the issue in broader perspectives.

Key Words: Project, schedule, project manager, risk, delay, planning, stakeholder,
communication, sponsor, leadership, scope.

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 CHAPTERONE; INTRODUCTION

1.1 Background of the Study

A project is a temporary endeavor undertaken to create a unique product, service, or result
according to the description of PMI (2017). A project is distinguished from ongoing business
activities because it involves a single, definable purpose, product or result and it usually
works under defined constraints of cost, schedule (time), and performance quality. The
reason for organizing tasks as a project is to focus the responsibility and authority for the
attainment of goals on an individual or small group and accomplish specific goals. Project
management is the process of planning, organizing, directing and controlling of company
resources for a relatively short-term objective that has been established to complete specific
goals and objectives (Kerzner,2009).

Businesses regularly use project management to accomplish unique outcomes with limited
resources under critical time constraints. Therefore, managing project requires a specialized
management technique necessary for planning, organizing, and control of projects under one
strong point of responsibility with many challenges according to Othman (2015).

When a project is for construction and implementation of civil work physical infrastructures,
the extents of project management difficulties become even more complex to achieve project
success criteria factors of cost, schedule and performance quality according to the description
of Bentator.&Thumann (2003).The difficulties in construction project management arise
from the inherent nature of construction projects; such as complex and unique activities,
mobile workforce, ingrained work cultures, environmental conditions, project-based setup,
involvement of diverse sub-contractors and suppliers.

The work environment and culture of a construction project is unique compared to most
working conditions. A typical construction project consists of groups of people, normally
from several organizations, that are hired and assigned to a project to build the facility. Due
to the relatively short life of a construction project, these people may view the construction
project as accomplishing short-term tasks. Even small-sized construction projects involve a
large number of people hence organizing their efforts is complex, even if they all work for
the same organization.(Bentator&Thumann (2003).

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Sources of information, location, timing, and problem complexity change as people enter the
project, perform their assigned duties, and depart (Garold,.2000).

Construction project management functions to predict as many pitfalls as possible so that the
project is completed successfully, by planning, organizing and controlling activities in
advance, according to description of Okoye et al (2015)
The construction industry is a fundamental economic activity which permeates most of the
sectors of the economy. Since, it has a major role to play on the growth or stagnation of the
overall economy and in achieving social economic development objectives of any country;
local firms and professionals should be fully involved in the process (Tadesse,Dakhli. &
Lafha,2016).

According to description of World Bank Group (2016) report, the growth of Ethiopia’s GDP
in 2015/16 was attributed to construction and the services sectors. The report also states that
the rapid economic growth of Ethiopia since 2004 was driven by public infrastructure
investment supported by the conducive environment in the country. In addition, there is
shifting of labor from agriculture to services and construction sector and this explains per
capita growth over the past decade (World Bank Group 2016). A report of Ministry of Urban
Development and Construction (MUDC)(2012), stated that Ethiopian construction sector has
been registering remarkable growth during past years and its contribution to the GDP is
increasing at an average annual growth rate of 12.43%.The Public and private sectors are
investing huge amount of fund in construction industry of Ethiopia. It has contributed much
in reduction of poverty, in increasing employment, expansion of small and medium
enterprises and job creation (MUDC, 2012).

Despite the growth of Ethiopian construction sector and its high contribution to the overall
national economy, several challenges are being noticed in the sector and hence require
solutions to sustain and maintain the growth rate in the sector into the foreseeable future. One
of these significant problems, which need to be resolved, in the sector is delay of project
implementation which can hold back or impair planned economic development.

A research by Hailemeskel, (2013) states that the Ethiopian construction industry has several
challenges and limitations. These challenges have contributed to poor performance level of
the industry which is manifested by delay, cost overrun, poor quality delivery.

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Delay of project implementation can be defined here as late completion of work compared to
the originally planned time schedule. Hence delay can be expressed as indicator of problem
in project schedule management.

Various researches and observations reveal that there are prominent problems of delay in
implementation of construction projects undertaken by local contractors. Impacts of
construction delay, particularly those of social infrastructures like schools, hospitals, roads
and water projects affect not only the clients and the contractors. The society is also subjected
direct or indirect consequences of project delay due to lack of the services they could have
benefited in timely completion of these infrastructure projects.

Therefore, implementing effective project schedule management and minimizing incidences

of factors associated with project delay problems is of crucial concern. In order to find
mitigation measures of schedule overruns, first it is required to identify the causes and factors
of delay problem. There are several researches conducted on the topic of project delay.
However, researches conducted on different contexts, scopes and perspectives tend to reveal
varying findings. This is because projects are working in dynamically changing environments
Wysocki, (2014).

This study envisages the central position of project managers in project environments and
their frontline actor roles in implementing complex and challenging activities of construction
projects. The challenges become even more complex when it is in local private construction
companies where there are several interferences both from internal and external organizations
that would trouble project managers in exercising their responsibilities of making valid
leadership decisions. Othman (2015) describes this situation and states that lack of sound
project management by owners or contractors leads to delays and extra costs for both
contractors and client organizations. Project manager is the person responsible for leading a
project from its inception to execution which includes planning, execution and managing the
people, resources and scope of the project (www.techopedia.com). The project managers
described in this specific study are those working in the contractor company side.

Therefore, this study intends to assess and describe perspectives of project managers on
project delay factors and issues or challenges to implement effective project schedule
management practices.

1.2 Statement of the Problem

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The construction industry is contributing much for growth of Ethiopian national economy,
reduction of poverty, increasing employment, expansion of small and medium enterprises,
development and job creations (MUDC,2012).It is the major economic sector in Ethiopia
where public and private sectors are investing huge amount of fund. The sector has high role
on the growth or stagnation of the overall economy according to description of
(MUDC,2012).

Despite its growth and high share of contribution to the overall national economy of Ethiopia,
several challenges are being noticed in the construction sector that requires immediate
actions. Tadesse.,Dakhli&Lafha(2016)states that delay of implementation is one of the
significant problems in Ethiopian construction industry that needs immediate actions. A study
by Werku,&Jha.(2016) shows that in Ethiopia only 8.25% projects have been completed on
the original targeted completion date. The remaining 91.75% delayed 352% of its contractual
time. It also states that construction delays are common problems in Ethiopian construction
projects and major causes of project failure.

Delay of projects has many consequences and impacts on the economy, on the society and
project stakeholder organizations. The main stakeholder organizations in construction
projects as per description of Lutchman(2011)are the client, consultant and contractor
organizations. Extension of project time, cost overruns, loss of profit, disputes, poor quality
of work due to an action to expedite the project accomplishment, creating stress to the client,
losses due to acceleration of works, bad reputation of construction team, claims and delay in
using the project facility are identified as effects of a delayed project according to
descriptions of Mukuka,Aigbavboa&Thwala (2015). Therefore, to find mitigation measures
for project delay, it is important to identify factors causing the problem.

Several researches have been made on topics of project delay from different perspectives and
methodological approaches. This study intends to identify project delay factors from
perspectives of project managers.

The motivation for the research came from recognizing focal and central responsibilities of
project managers in project implementation.PMI (2017) stresses about crucial role of a
project manager by comparing it in analogy with role of a conductor for a large orchestra.

It states that the project manager and conductor are both responsible for what their teams
produce; the project outcome and the orchestra concert, respectively.

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 The focal responsibility position of project managers gives them the opportunity tobe
familiar with day to day project activities and identifying actual challenges facing in project
environments. Therefore, their feedbacks have paramount value as firsthand information to
identify causes of project delay factors and seek mitigation measures. In view of this, the
study aims to identify major project delay factors in construction projects implemented by
Ethiopian local private contractors, from perspective of project managers.

1.3 Research Questions

In conformity with the discussion of research problem, this study aims to answer the
following specific research questions:

▪What is the prevalence of delay in projects of Ethiopian private local contractors?

▪What are the top major factors contributing to delay of the construction projects?
▪What is the contribution of main stakeholder organizations to the project delay factors?

1.4 Objective of the Study

1.4.1 General Objective

The overall objective of this study is to identify the top major factors causing delay of
construction projects implemented by local private contractors, and to explore contribution of
main stakeholder organizations to these major delay factors.

1.4.2 Specific objective

The specific objectives of the study aim to address are:

▪ To explore prevalence of delay problem in projects of Ethiopian private local contractors.
▪ To identify the top major factors contributing to delay of the construction projects.
▪ To assess the contribution of main stakeholder organizations to the delay factors.

1.5 Significance of the Study

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As stated in statement of problem, this study aims to assess perspectives of project managers
about factors causing delay of construction projects in private local contractors.

This study has significance of contributing to efforts of minimizing the prevalence and
overall impacts of delays in Ethiopian construction projects thereby to improve performance
of the sector. This is because to set appropriate solutions for the delay problem, it is crucial
first of all to identify the factors causing the problem. The specific significances of the study
are listed as follows;

▪ Knowledge generation
Findings of the research can be taken as valuable material of lesson learnt for project
managers and project crews. It can be used to familiarize new project managers joining the
construction sector with challenges and issues encountering in their professional careers.

▪ To solve practical problems of project schedule management

Findings of the research can be used at project level to solve project delay problems by
giving special attentions to these major delay factors and implementing appropriate
contingency plans to minimize the incidence. Identifying and ranking project delay factors
helps project managers and stakeholder organizations to keep their eyes on these few but
serious factors and to give more attention to them. The ranking has considered both
frequency of occurrence and impact severity of the delay factors. This is because some
factors occur very frequently but their impact is less while others do not occur frequently but
once occurred, their impact is very high. Therefore, to include the overall effects of both
factors, the ranking pursued using relative importance index(RII) which it the product of
frequency index (FI) and severity index. (SI)

▪ To pave the way for further researches

Findings of this study can also be used as input for other researchers on topics of delay in
construction projects.

▪ To serve as input for policy or strategy development

Policy makers and strategy planners in the construction sector can use findings of this study
as an input and points of attention in their endeavors.

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1.6 Scope of the Study

Conceptual scope of the study is delimited to assess project delay or factors causing problems
in achieving project time schedule. It is to identify top major factors that cause delay of
construction projects implemented by private local contractors of Grade-1 and Grade-2
categories in Ethiopia, and to describe contribution of the project’s main stakeholder
organization for the delay factors. The time scope for the study is cases of projects started and
completed from 2008 to 2018. It includes only cases of projects that are completed on time,
ahead of time or delayed. Projects which are terminated or abandoned for one or other reason
are out of the scope. The methodology pursued for the study is by collecting and adopting
both qualitative and quantitative data by survey method and literature reviews. The data are
analyzed by descriptive analysis and presented in descriptive method.
1.7 Limitations of the Study

This project study has limitations of covering broader scopes of construction project’s delay
factors. The numbers of valid responses collected from respondents were fewer than what the
researcher had expected. This has reduced confidence level of the study findings to 67%
which is an implication of a limitation in the research findings. The data obtained from the
questionnaire can have some tendency of bias based on respondent’s personal experiences
and perceptions about the delay factors and tenure of stakeholder organizations. Where
different methods of data collection and analysis are used for a research, they enrich and
confirm the data or findings. This could also provide means of checking the findings from a
particular method as per Greener,S.(2008) description to the term triangulation. Accordingly,
for triangulation purpose and backing up limitations pertinent in survey tool used and thereby
to strengthen findings of the study, case studies of two actual projects that had history of
delay problem have been incorporated to this study.

1.8 Ethical Considerations

The study is undertaken inconformity with basic ethical issues of researches. According to
Greener, (2008)the main ethical considerations in researches are giving full information
about purpose of the study to participants, gaining informed consent of participants to
participate in the research, respecting participants right to withdraw from the research at all
stages of the

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research, not causing harm to anyone by action or omission of the research, respecting
participant’s wish for anonymity and confidentiality, honesty and avoiding deceptions.

1.9 Organization of the Research Report

The research is organized into five chapters. Chapter one is about introduction, Statement of
the problem, research objectives and research questions, significance of the study, scope of
the study and limitations of the study. Chapter Two is about literature reviews on topic of the
study. Chapter three is about research design and methodology, sources of data, and sampling
technique, tools of data collection and data analysis. Chapter four is about discussion of the
research. Chapter five is about summary of findings, conclusions and recommendations. The
last pages of the paper contain appendixes of questionnaires, references and other annexed
attachments of documents.

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 CHAPTERTWO; LITERATURE REVIEW

2.1 Theoretical Review

2.1.1 Projects and Project Management
Project is a sequence of unique, complex, and connected activities that have one goal or
purpose and that must be completed by a specific time, within budget, and according to
specification. (Wysocki,.2014). Project is combination of human and non-human resources
pulled together in a temporary organization to achieve a specified purpose PMI (2017).
Project possesses the following typical characteristics of a defined beginning and end
(specified time to completion), a specific, predefined goal or set of goals, a series of complex
or interrelated activities and a limited budget and implementation of a project is the step
where all the proper planned activities are put into action (Kerzner,2009).

The success of a project is measured in terms of three important criteria- time, cost and
scope. Quality refers to the quality standard of the deliverables or products from the project
and achieving customer satisfaction. Cost refers the financial resource approved to the
project, including all budgets and expenses to deliver the project. Time or schedule refers to a
time frame or deadline date within which the project must be completed. Time is an
interesting resource in that it can’t be inventoried. It is consumed whether it is used or not.
Therefore, the objective of the project manager is to use the future time allotted to the project
in the most effective and productive ways possible. Once a project has begun, the prime
resource available to the project manager to keep the project on schedule or get it back on
schedule is time(Wysocki,2014). The third constraint, scope is defined as what a project is
trying to achieve and accomplish. It includes all the works involved in delivering the project
outcome and the process used to produce. These three constraints are significant in every
project and they are described as project triple constraints (Brewer and Dittman, 2010).

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 SCOPE

QUALITY

TIME COST

Figure 2.1Project Triple Constraints

Source: Brewer and Dittman, 2010

Project triple constraint is the balance of project’s cost, time and scope; it is used to measure
whether the project’s objectives are being met or not. The triple constraints have their own
respective effect on the project’s performance. They are correlated with one other and each
constraint bears effect on the other two i.e. if a change happens on a constraint, another two
constraints also will be influenced by the changes. (Brewer and Dittman, 2010).

Generally, a project is said to be successful when is completed within a stated cost or budget,
on time and meeting the project objectives or the scope. When these scopes of a project are
completed to meet the project objectives then the project quality is said to have been
achieved (JIA, 2015).

Bentator&Thumann(2003) describes how construction projects differ from ongoing business

activities and also states about the traits accountable for its complexity. A project is typically
unique and specific as contrasted with ongoing business functions which are performed on a
day-in, day-out basis, ideally with increasing productivity. People assigned to a project may
come from any part of an organization or from outside the organization. The project manager
will be involved in some or all of these people functions of project management-selecting,
training, coordinating, leading, coaching, rewarding, disciplining, and supporting. A project
manager deals with people all the time.

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When the project is completed, these professionals will likely move on to other projects or
back into line functions within the organization.

According to Bentator&Thumann(2003) there is impact of weather condition on schedule

performance of construction projects which signifies these projects. Work interruption due to
unsuitable usually rainy weather conditions, incidence of machineries idle hours and down
times, the effects of decline in productivity of manpower and inefficiency of construction
machineries will be manifested in overrun of project schedule and project costs.

Michael,(2010) as cited in JIA(2015) states that construction project is not only the
construction work but also included all the planning, designing, management, executing or
other works until the end of the construction phase. A construction project can be considered
as successful if it satisfies all the requirements and completed on original budget, on
schedule, and on the agreed scope set within the project. The construction industry is unique
compared to other industries. Because each construction project is different: the workforce is
transient, multiple crafts are involved, projects are planned and worked in short time frames,
and there is a tremendous variety of material and equipment that must be installed. Also,
much of the work is exposed to weather and construction workers are continually working
themselves out of a job.

Kerzner,2009 states that research and development projects may have a fixed performance
level, whereas construction projects normally are constrained by a date of completion. The
duration set for a project is finite with a defined start and a planned completion dates, while
day-to-day business functions are typically in place before a project starts and will continue
after the project is concluded. Relationships or the people aspect of project management is a
crucial aspect of management. The project manager is responsible to manage relationships
associated with the project both internally and externally. Internally the relationship with the
people in the company who are members of the project team, the boss, the peers and
supporting departments., Externally with customer’s people associated with the project, as
well as any subcontractors and vendors who may be associated with the project. Regarding
budget, the project manager is responsible for managing his project budget to achieve on-time
and technically sound result within the budget as per descriptions of Michael,(2010) as cited
in JIA(2015). Due to these conditions the management of construction is challenging and
cooperation of participants is very imperative in effective implementation.

2.1.2 Project Management Knowledge Areas

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PMI (2017) defines project management as the application of knowledge, skills, tools, and
techniques to project activities to meet the project requirements. Project management is
accomplished through the appropriate application and integration of the project management
processes for the project. It enables organizations to execute projects effectively and
efficiently.

Delay of project implementation is defined as the late completion of work compared to the
planned schedule (Bentator&Thumann,2003).

Inline with this, among the ten knowledge areas described by PMI (2017), schedule
management knowledge area is relevant to the topic of processes involved in achieving on
schedule project completion. PMI (2017) describes project management knowledge area as
an identified area of project management defined by its knowledge requirements and
described in terms of its component processes, practices, inputs, tools and techniques.

The key concepts of project schedule management are discussed in PMI (2017) as follows;
project scheduling provides a detailed plan that represents how and when the project will
deliver the products, services and results defined in the project scope and serves as a tool for
communication, managing stakeholder’s expectations and as base for performance reporting.

PMI (2017) describes that, project management consists of ten areas of knowledge and that a
project has life cycle managed by executing a series of project management activities known
as project management processes. Every project management process produces one or more
outputs from one or more inputs by using appropriate project management tools and
techniques. The output can be a deliverable or an outcome. Outcomes are an end result of a
process. Project management processes apply globally across industries. Project management
processes are logically linked by the outputs they produce. Processes may contain
overlapping activities that occur throughout the project. The output of one process generally
results in either an input to another process, or a deliverable of the project or project phase.

The knowledge area of project schedule management consists of the following five process
groups according to PMI (2017):

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 i. Plan Schedule Management–The process of establishing the policies, procedures and
documentations.
ii. Define Activities-The process of identifying and documenting the specific actions to be
performed to the project deliverables.
iii. Sequence of Activities-The process of identifying and documenting relationships
among the project activities.
iv. Estimate Activity Duration-The process of estimating the number of work periods
needed to complete individual activities with the estimated resources.
v. Develop Schedule-the process of analyzing activity sequences, durations, resource
requirements and schedule constraints to create the project schedule model for the
project execution monitoring and controlling.
vi. Control Schedule-The process of monitoring the status of the project to update the
project schedule and manage changes to the schedule baseline.

2.1.3 Construction Projects

Construction projects are somewhat difficult to manage and meet success criteria
requirements due to the nature of the industry; such as complex and unique nature, mobile
workforce, ingrained culture, working conditions, and project-based setup, diverse sub-
contractors and suppliers according to Okoye et al. (2015).

Bentator.&Thumann(2003) state that construction projects require a wide range of planning

and contemplations for on schedule completion, due to its fast changing environmental
conditions and huge investments. Technical skill of construction project managers may tend
to drive them in favor of doing things like designing, coordinating, negotiating, installing,
solving problems, etc. Planning, on the other hand, requires a more contemplative, long-term
view of the project, and may encompass planning for activities that are not at hand in terms
of when they will occur. This requires more thinking than doing and often receives
insufficient attention because it’s not hands-on or immediate in its urgency. Yet, good
planning is a cornerstone of a good project.

Careful planning, along with good execution, almost always leads to a successful project.
Poor planning, on the other hand, even with good execution, may lead to a successful project,

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but often one that is fraught with crises, stress and loss of opportunities.
Bentator&Thumann(2003).

Project management is the planning, organizing, directing, and controlling of company

resources for a relatively short-term objective that has been established to complete specific
goals and objectives. Furthermore, it utilizes the systems approach to management by having
functional personnel (the vertical hierarchy) assigned to a specific project (the horizontal
hierarchy). Kerzner,2009.

Businesses regularly use project management to accomplish unique outcomes with limited
resources under critical time constraints. The basic purpose for initiating a project is to
accomplish specific goals Meredith&Mantel(2009). The reason for organizing the task as a
project is to focus the responsibility and authority for the attainment of the goals on an
individual or small group. In spite of the fact that the PM often lacks authority at a level
consistent with his or her responsibility, the manager is expected to coordinate and integrate
all activities needed to reach the project’s goals. In particular, the project form of
organization allows the manager to be responsive to: (1) the client and the environment, (2)
identify and correct problems at an early date, (3) make timely decisions about trade-offs
between conflicting project goals, and (4) ensure that managers of the separate tasks that
comprise the project do not optimize the performance of their individual tasks at the expense
of the total project Meredith&Mantel (2009).

Construction companies are organizations that work to deliver projects for an external client
or customer. Therefore, there are different projects under the organization. Since project
managers use resources assigned from functional managers there arises conflict for resources
between functional managers and project managers. Conflict for scarce resources also arises
among different projects themselves. The project sponsor acts as a moderator on any
potential conflict between the functional managers and the project managers. In order to do
this, the project sponsor must have executive authority over both project manager and the
functional managers. The Managing director or typically company owner takes this
responsibility. If the sponsor does have visible support for a project, the project will be in
trouble of failure.

Kerzner(2009) states that project management is a specialized management technique

necessary for the planning, organization and control of projects under one strong point of
responsibility. It is the application of knowledge, skills, tools, and techniques to project
activities in order to meet project requirements.
Page 14
On the contrary, lack of sound Project Management by owners or contractors on projects on
the other hand leads to construction delays and extra costs for both the contractor and the
client (Othman (2015).

Construction projects have a planned start and end dates. These dates are not determined by
the project manager but they are fixed by the consultant and project client in the contract
document. This date fixed for project completion must have to be achieved since its
unjustifiable failure will be followed by contractual penalty to the contractor amounting up to
20% of the project price as per the general condition of contract pertinent in Ethiopian
construction contracts stated in Ministry of works and urban development, (1994). The
contract article describes about penalty payment by the contractor due to project delay under
clause 47 Liquidated Damages for Delay “If the Contractor fails to achieve completion of the
Works within the time prescribed by Clause 43 hereof, then the Contractor shall pay to the
Employer 1/1000 of the contract price per day as liquidated damages for such default and not
as a penalty for every day or part of a day which shall elapse between the time prescribed by
Clause 43 hereof and the date of certified completion of the works. Depending on the nature
of the works, Liquidated damage higher than the minimum limit provided herein above may
be fixed in the contract. The Employer may, without prejudice to any other method of
recovery, deduct the amount of such damages from any monies in his hands, due or which
may become due to the Contractor. The payment or deduction of such damages shall not
relieve the Contractor from any other of his obligations and liabilities under the Contract.”
The maximum limit of the liquidated damage shall be 20% of the Contract.

Therefore, to achieve this contractual project completion date obligation and escape the
penalty due to project delay, a detailed schedule must be prepared; this schedule must list key
phases, tasks, and milestones. It should also list who is responsible for performing these tasks
or meeting the milestones and show dependency relationships among tasks
(Bentator.&Thumann, .2003).

The construction industry is a sector of the economy that transforms various resources into
constructed physical economic and social infrastructure necessary for socio-economic
development. It embraces the process by which the said physical infrastructures are planned,
designed, procured, constructed or produced, altered, repaired, maintained, and demolished
MUDC (2012).

Page 15
Construction sector is one of the main sectors creating employment opportunities for citizens.
For example, according to description of Ministry of Labor and Social Affairs (2009), one of
the strategies set to meet the objectives of generating employment for citizens is accelerating
productive employment in the formal private sector. With respect to this the main focus area
is to promote development of labor-intensive private construction. Developing guidelines for
foreign construction companies to utilize as much local labor as possible to transfer
knowledge and build local capacity, design a support program to establish and strengthen
small and community-based construction companies and undertaking a comprehensive study
and regularly update on the constraints of labor-intensive are set as strategies.

Problem of project implementation delay can be defined as the late completion of work
compared to the planned schedule. Project implementation delay can be minimized only
when their causes are identified. Delay is common in Ethiopian construction projects and it is
the time overrun beyond completion date specified in a contract of agreement. To the
contractor, project delay means higher overhead costs because of longer work period, higher
material costs through inflation, and due to labor cost increases.

According to description of Kerzner (2009) a project manager has responsibility of managing

all project resources and work activities. This requires deployment of huge resources of
equipment and manpower among others. However, the project manager has no direct power
of control over project resources. The resources are controlled by the line managers,
functional managers, or, as they are often called, resources managers.

Project managers must negotiate with line managers for all project resources. The project
manager’s job is not an easy one, Kerzner (2009) states. Project managers may have
increasing responsibility, but very little authority. This lack of authority can force them to
“negotiate” with upper-level management as well as functional management for control of
company resources. They may often be treated as outsiders by the formal organization. In the
project environment, everything seems to revolve about the project manager.

Bentator.&Thumann(2003)also describes that project manager works under resources which

are not under his direct control. He has to anticipate potential conflict for resources with other
projects of the organization and how to achieve support from functional managers who have
direct control over the resources. This implies that the project manager has to get support
from senior managements or project sponsor in the organization. If this expected support
from senior managements who have power over both functional and project managers goes in

Page 16
contrary the project will be in risk of failure to achieve the three critical success factors, one
of which is delay in schedule.

Furthermore, the support must be visible to all organizational positions. It is highly unlikely
that any line manager would actively support the implementation of project management
without first recognizing the same support coming from above.
Even minimal line management support will still cause project management to struggle.
Therefore, it is logical to consider that lack of support to project manager from senior
management/project sponsor for one or other reasons will be a big impediment leading to
project failure and delay. Project manager is not only responsible for cost and time
management but also for managing project quality. For example, Kerzner (2009) states that,
project manager has the ultimate responsibility for quality management on the project.
Quality management has equal priority with cost and schedule management.

The project manager is supposed to have detail information about challenges and issues of
the projects at micro level more than any other person in the project environment. Therefore,
they are the right persons to explore about issues of the project.

2.2 Empirical Review

Several researches have been under taken on the topic of delay of construction projects and
problems in managements of project schedules.
A research has recently been undertaken by Shambel&Patel (2018) to assess the existing
system of time and cost overrun and to identify factors that affect time and cost overruns in
Addis Ababa Road construction. The research was undertaken based on wide literature
review and historical data of completed road projects in Ethiopia. Findings of the research
revealed that none of the projects were completed as planned and within the estimated cost
and no considerable improvement had occurred over time to cope with problems of project
delay factors.
The research also identified factors that have caused delay of road projects as financial
problems, improper planning, land acquisition and construction delay, design changes, less
materials and equipment supply by contractors, incomplete design are the main sources of
delay and cost overrun.

Page 17
Another research conducted by Zinabu (2016) to assess the level of techniques and software
packages used for project time control, factors affecting delay in construction projects and to
recommend possible mitigation measures. The study adopted both quantitative and
qualitative data from primary sources and literature reviews. According to Zinabu (2016)
there is low level application of techniques and software packages for project planning and
time control among the contractors. Cash flow problem, mismanagement, improper planning,
slow decision making and late delivery of material and equipment were identified as vital
factors causing project delay.

A research was undertaken by Tadesse,Dakhli&,Lafha(2016) to assess performance and

challenges of Ethiopian construction industry by using both literature reviews and
questionnaire methods. The research also revealed that there are similarities of challenges of
construction projects delay in most of developing countries. The research demonstrated that
the level of construction project management practice in these countries in terms of adapting
general project management procedures, project management functions, tools & techniques
to be unsatisfactory. Particularly the level of practice in terms of safety, risk and time
management was found to be very low.

Regarding challenges, the study identified that time, cost and risk management as the most
challenging issues for professionals in managing their day to day’s activities. The assessment
of the extent of deviation from plan or predetermined requirements on these issues also
reinforced the research result. The amount of schedule slippage ranges between 61-80% and
that of planed costs and other variables such as risk, quality, resources utilization and safety
deviates in the range of 21-40% from predetermined requirements, planned or anticipated at
the beginning. Werku&Jha (2016) also carried out a research to investigate causes of delay in
Ethiopian construction industries and have stated that, delays in construction projects are the
major causes of project failure.

The study identified the factors of the findings show that the main critical factors that cause
construction delays in Ethiopia are: (1) Difficulties in financing project by a contractor; (2)
Escalation of the materials price;

(3) Ineffective project planning; (4) Problem in scheduling or resource management; (5)
Delay in progress payments for completed works, (6) Lack of skilled professionals in the
field of construction management (7) Fluctuating labor availability season to season
/Seasonal labors availability.

Page 18
Another study to identify management project control problems of construction industry in
Ethiopia was also undertaken by Hailemeskel(2013) and identified key challenges in the
sector as shortage of skilled and unskilled manpower, machineries and tools, absence of
appropriate standards and guidelines, lack of strong institutional capacity to oversee the
construction industry, lack of construction project management and control. These challenges
have contributed to poor performance level of the industry manifested by delay, cost overrun,
poor quality delivery. Corruption and unethical acts, between the key actors within the
industry, are the known constraints that emanates from low implementation capacity. Hence,
the main challenges are summarized as low implementation capacity with respect to
manpower, material and machinery supply, organizational and systemic issues. He
recommends policy makers in building the local domestic construction contractors and
consulting company’s capacity improve the performance of the public sector and the private
clients to implement management controls, ensuring the application of cost effective and
innovative technologies and practices to support socio economic development activities.
Improving the industry performance to export standard level, introduce institution in charge
of construction industry capacity building and prepare and implement national construction
industry framework.

Delay of construction projects has several consequences and impacts on stakeholders and
society. A study conducted by Mukuka,Aigbavboa&Thwala,(2015) to identify effects of
project schedule overrun in South Africa has identified the following effects: extension of
time, cost overruns, loss of profit, disputes, poor quality of work due to hurrying the project,
creates stress to the client, acceleration losses, bad reputation with contraction team, claims
and delay in getting profit by the client were the top ten identified effects of construction
projects.
JIA (2015) has also under taken a study to assess how factors that affect cost overrun of a
project are related to project delay. In conclusion the study revealed that cost overruns and
project delay are the most crucial problems that happen in the construction industry and cost
overrun factors are positively related to delay of construction projects.

2.3 Conceptual Framework

Page 19
 Project Delay Factors External Factors Factors

Internal Factors FFactors

Fa Fb Fc Fx Fy Fz

Project Delay

Figure 2.2Project Delay Factors

Adopted from PMI (2017)

As indicated in figure 2.2 there are internal and external factors contributing for project
delay. Internal factors emanate from internal stakeholder organization of the project while
external factors are out of the control of project internal stakeholders. The study categorized
internal delay factors based on contribution of the client, consultant and contractor
organizations to occurrence of the project delay.
The concept studied in this research is about project delay and project delay factors which are
have implications of problems in project time schedule management. Delay factors are
independent variables while time schedule is the dependent variable.

Occurrence of these factors, in the project environment; result in increasing of the time
schedule or delay of the project completion. Project delay can be defined here as the late
completion of work compared to the originally planned time schedule. Hence delay can be
expressed as indicator of problem in achieving effective project schedule management.

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 CHAPTERTHREE; RESEARCH METHODOLOGY

3.1 Introduction
Research methodology describes researcher’s understanding about the research and the
strategy used to answer the research question and the process used in collecting the research
data based on identified research objectives (Greener ,2008). The research design is followed
by target population and samples, data type, source, collection analysis and presentation
methods used.

3.2 Description of the study area/Organization

This study is about project cases in private local contractors of Grade-1 and Grade-2
category. Contractors are categorized from Grade-1 to Grade -10, based on the resource
requirement criteria set by the regulatory body or ministry of construction to get the
construction license. Grade-1 contractors are the biggest while Grade 10 contractors are the
smallest class contractors in this category. Project costs contractors are allowed to bid for are
based on their Grade. The Grade-1 contractors can undertake projects with cost above 20
Million Birr while Grade-2 contractors can undertake upto 20 Million Birr projects
(www.constructionproxy.com, assessed on May 17, 2018).The study focused on cases of
these two high class contractors by considering that they run big projects with higher
consequences in invent of delay.

3.3 Research Design

The study has adopted both qualitative and quantitative data by using questionnaire survey
method. A descriptive approach of research method is used to answer the research questions
and achieve objectives of the study. Sreevidya&Sunitha(2011) state that descriptive research
describes the state of affairs as it exists at present. Samples of the study are project managers
with work experiences in construction projects implemented by local private contractors of
Grade-1 & Grade-2.Factors causing delay of projects were collected from various literatures
and preliminary information from focus group of project managers. These factors were
developed in the form of questionnaire containing two parts to be answered by the samples
selected from the target population.

The questionnaire contains two parts. The first part is about respondent’s background
information and their experiences on project delays during the past ten years (2008 to 2018).

Page 21
The second part is for ranking project delay factors based on their frequency of prevalence
and severity of impacts on delay of construction projects. Contribution of main stakeholder
organizations for occurrence of each delay factor was also ranked in this part of the
questionnaire.

The data collected from the first part of the questionnaire is used to describe prevalence of
delay problems in construction projects. The qualitative data collected from second part of
the questionnaires used for ranking the major delay factors in construction projects and to
describe contribution of the three main stakeholder organizations (client, consultant and
contractor) to the identified delay factors. The data obtained from the questionnaire were
analyzed to explore the research findings. For the purpose of triangulation or strengthening
findings from questionnaire, case studies of two actual projects that had delay problems are
incorporated to the study for comparing with results from research with the case studies.
Finally, findings of the study are discussed and appropriate recommendations are forwarded

3.4 Data type and sources

3.4.1 Data Type
Both qualitative and quantitative data were collected from the questionnaire survey and from
review of literatures to identify delay factors in construction projects. The quantitative data
were used to describe prevalence of delay problem in construction projects. The qualitative
data were used to identify major factors contributing to delay of construction projects and to
assess the contribution of main stake holder organizations to the identified delay factors.

3.4.2 Data Sources

3.4.2.1 Data from Literature reviews
Review of literatures, books and findings of other relevant researches were used to identify
factors relevant to delay of construction projects. In addition to this, preliminary study was
conducted by interviewing a focus group of project managers inorder to collect information
about factors causing delay of construction projects and these are incorporated it in the
questionnaire.

3.4.2.2 Primary data sources

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The primary data were collected by survey method using structured and unstructured
questionnaires. Respondents of the questionnaires are 46 samples drawn purposively as
appropriate for the researcher, from target population of project managers. The sample size
determined to be minimum of 10% of total population.

Sample Size = 10% x 372 = 37

The sample size of 46 is more than the minimum size and hence acceptable.

3.5 Target Population and Sample

3.5.1 Target Population
Target population is population of project managers who have work experience in private
local Grade-1 & Grade-2 contractor companies. The number of registered Grade-1 and
Grade-2 contractors in Ethiopia for 2018 budget year are 133 and 53 respectively, total is 186
www.constructionproxy.com (assessed on May 17, 2018). With assumption that each of
these contractors has an average of two project managers in their projects, total population is
372.

3.5.2 Sample Size determination

The sample size taken for this research is 46. The assumption taken in determining sample
size of 46 was that, the population of project managers is homogenous with respect to the
parameter of interest i.e. identifying project delay factors and contribution of organizations
for these factors.

3.5.3 Sample Selection

Sreevidya.& Sunitha.(2011) states that sampling is concerned with the selection of a subset of
individuals from those within a target population to estimate characteristics of the whole
population. The study assumes that members of the target population are homogeneous with
respect to the type and content of data required from the research. Hence selection of the
samples will be purposive sampling. According to description of Greener S. (2008) in
purposive sampling method, the researcher uses his own judgment to select a sample.

Hence for this study46 samples were selected as appropriate and ease of availability by
judgment of the researcher.

3.6 Data collection methods and tools

Page 23
Primary data are those data which are collected for the first time and original in character
while Secondary data are those which have been collected by some other persons for his
purpose and published (Sreevidya.& Sunitha.2011).

Primary data for this study were collected by survey of structured and unstructured
questionnaires from sample respondents drawn of the population group. The respondents
have ranked the delay factors on five Likert scales for ordinal scale description purpose.

Literature review has helped in collecting list of factors that are claimed to have been causing
delay of construction projects. Besides this information about project delay factors were
gathered from preliminary study by interviewing a focus group of project managers.

3.7 Data Analysis and Presentation

3.7.1 Data Analysis
The quantitative data collected from the questionnaires, regarding experiences of respondents
about delay of projects implemented during the past ten years (2008 to 2018), were
summarized to describe the extent of prevalence of project delay problem. The qualitative
data regarding major delay factors and stakeholders were analyzed by descriptive analysis
using Microsoft Excel software. Sreevidya&Sunitha(2011) state that descriptive statistics are
used to describe the basic features of the data in a study. Accordingly, the study uses
descriptive statistics to answer the specific research questions. The study also includes
implications of case studies of two projects that were briefly described in narration form.
Findings of the research were then compared with implications from the case studies. This is
for purpose of finding out if there is consistency or contradiction of results between the
research and actual project cases, hence for triangulation of the research findings. Finally,
findings of the study are discussed and appropriate recommendations to minimize overall
impacts of project delay problems are forwarded.

3.7.2 Data Presentation

Page 24
After data analysis, the findings are presented in descriptive form by tables, charts, graphs,
indexes, percentages and descriptive narrations.

Page 25
 CHAPTER FOUR; DATARESULT AND DISCUSSION
This part of the research describes the results obtained from the survey tool and analysis of
the results and discussion of the findings. .

4.1 Questionnaire Response Rate

Out of the total 46 distributed questionnaires it was managed to collect 38 questionnaires on
time. Inturn from these 38 questionnaires 31 were complete and valid. The response rate
calculated vs total distributed questionnaires is 67%

Table 4.1Questionnaires Response

Respondent Questionnaires Questionnaires Valid Rate of

s Distributed Collected responses Responses

Project
Managers 46 38 31 67%

TOTAL 46 38 31 67%

Source: From survey 2018

4.2 Background information of respondents

The background information of respondents has been assessed for both their professional
back ground and their years of experiences as indicated in Table 4.1 and Table 4.2.

Table 4.2Respondent’s Information

Profession Level Frequency Percentage

Diploma 4 13%

1st degree 20 65%

Engineering
2nd degree 3 10%

PHD 0 0%

Page 26
 Diploma 2 6%
Management
1st degree 1 3%

Administration Diploma 1 3%

Total 31 100%

Source : From survey 2018

Table 4.3Respondent’s Work Experience

Years of Experience Frequency Percentage

1-to-5 6 19%

5-to-10 12 39%

10-to-15 7 23%

above 15 6 19%

Total 31 100%

Source : From survey 2018

As indicated in Table 4.2 the respondents have appropriate educational and professional
levels to identify and describe factors causing delay of construction projects as required to
answer the research questions.

Table 4.3also indicates that the respondents have sufficient work experiences ranging up to
15 years in the construction sector. Hence they are deemed to be well familiarized to project
issues and delay causing factors in the construction environment.

Page 27
4.3 Data analysis to explore prevalence of delay in construction projects
As indicated in the Chart 4.1 respondents who have executed each number of projects during
the past ten years (2008 to 2018) were plotted together with delayed project numbers for
comparison. The chart displays that there are delays in each cases of projects executed by the
respondents.

Comparison of executed vs delayed projects

120
Total No of Projects Executed in each case Total No of Projects Delayed in each case
104
100

80
Number of projects

60
48

40 33
28
25
18
20 12
10 11
6
2 1 3 3
0
1 2 3 4 5 6 Total
Executed and delayed projects in each of Cases

Figure 4.3Comparison executed vs delayed projects

Page 28
The display on chart 4.1 is summarized to Table 4.4 indicating the number of projects
executed vs delayed for each project cases are tabulated. The table summarizes that, out of
the total 104 executed projects, 48 projects had problem of schedule delay. This account to
46% of executed projects had problem of delay. Therefore, finding from analysis of the data
shows that there is serious concern about project delay problems since significant proportion
of executed projects had delays in their implementations.

Table 4.4Projects Executed Vs Delayed

Number of projects Number of

executed projects Percentage of delayed
delayed

2 1 50%

10 3 30%

33 18 55%

28 12 43%

25 11 44%

6 3 50%

104 48 46%

Source: Survey 2018

4.4 Samples of major delay factors

Page 29
The values in table 4.4 are obtained by calculating frequency index and impact index for each
of the sample delay factors, then relative importance index (RII) from the two indexes by
using the formula;

Equation 4.1 Frequency Index

5
w if ×n if
FI = ∑ ( ).................................Equation (0)
i=1
5 ×N

Equation 4.2Severity Index

5
w ii ×n ii
SI = ∑ ( )................................Equation (0)
i=1
5 ×N

Equation 4.3 Relative Importance Index

RII =FI × SI...........................................................................................Equation (0)

Page 30
Where;
FI is Index for Frequency of occurrence
SI is Index for Severity of impact
RII is relative importance index
wif and wii are the weight of ith frequency and ith impact severity ( Ranging 1 to 5)
nif and nii are the number of respondents who choose certain nth frequency and
nthimpact weights respectively.
N is the maximum number of respondents i.e 31, while the maximum value for weights
assigned to frequency and impact severity levels is 5. (Zinabu,2016).

The frequency and impacts values calculated for each of the thirty delay factors are different
as indicated in an annexed table Therefore, to consider both of the indexes in ranking the
delay factors, a third index is calculated i.e relative importance index.
From the ranked sample delay factors the top major factors are selected and presented in the
form of separate table and chart for ease of visualization. These identified major factors are
also used in relation to their prevalence in each stakeholder organization to give attention and
focus to the factors during courses of project planning and implementation.

Page 31
 RANK OF DELAY FACTORS BY IMPORTANCE INDEX

Rank Factor Description RII

Delay in Payment / Preparation, Checking, Approval and
1st F7 effecting/ 0.913

2nd F8 Problem of Financial Management 0.873

Design problems, incompleteness, not matching with Bill of
3rd F5 Quantities 0.843
Delay in Design Drawings / Contractor requests, Consultant
4th F3 Prepares Client Approves/ 0.808

5th F11 Increase in price of material and labor wages 0.794

6th F21 Limitations in preparing risk contingency plans. 0.766

7th F29 Limitations in Leadership Practices 0.761

8th F20 Limitations in communications among Stakeholder organizations 0.751

9th F1 Delays in decision making 0.738

10th F6 Commitment problem to achieve Project time schedule 0.726

11th F10 Shortage of Equipment 0.723

12th F13 Limitations in monitoring and controlling 0.716

13th F16 Scope change and variation works 0.695

14th F19 Change in design and Specifications 0.69

15th F18 Labor shortage after project work commenced 0.689

16th F27 Limitations in efficiency of equipment. 0.672

17th F14 Unsuitable Weather Conditions 0.67

18th F17 Reworks due to poor works quality 0.67

19th F24 Unethical practices among stakeholder organizations 0.658

20th F2 Internal administrative problems 0.651

21st F26 Limitations in involving important indirect stakeholders 0.651

22nd F15 Lack of budget after project work started 0.64

23rd F12 Limitations in thorough prior planning before bidding 0.628

24th F9 Shortage of Technically capable manpower 0.618

25th F28 Lack of Experience of the organization 0.617

26th F25 Unreliable subcontractors and suppliers 0.609

27th F22 Lack of sponsor support for the project 0.562

28th F30 Limitations in enforcing regulatory laws 0.520

29th F4 Delay in Test results and work orders 0.506

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 30th F23 Changes occurred in site conditions 0.319

Page 33
 Major delay factors in a rank
As indicated in the tables of project delay factor importance indexes the major factors causing
delay of projects are ranked in table. The top ten ranked major delay factors are: Delay in
Payment, Problem of financial management, Design problems, Delay of design, Increase in
price of material and labor, Limitations in preparing risk contingency plans, Limitations in
leadership, Limitations in communication, Delays of decisions and Commitment problem.

Table 4.5Major Delay Factors in a Rank

Rank Factor Description

1st F7 Delay in Payment / Preparation, Checking, Approval and effecting/

2nd F8 Problem of Financial Management

3rd F5 Design problems, incompleteness, not matching with Bill of Quantities

Delay in Design Drawings / Contractor requests, Consultant Prepares Client

th
F3 Approves/
4

5th F11 Increase in price of material and labor wages

6th F21 Limitations in preparing risk contingency plans.

7th F29 Limitations in Leadership Practices

8th F20 Limitations in communications among Stakeholder organizations

9th F1 Delays in decision making

10th F6 Commitment problem to achieve Project time schedule

Page 34
 Rank of project major delay factors
1.00
0.90
Relative Importance Index (RII)

0.80
0.70
0.60
0.50
RII
0.40
0.30
0.20
0.10
0.00
F7 F8 F5 F3 F11 F21 F29 F20 F1 F6

Delay Factors

Figure 4.4 Rank of Delay Factors

As indicated in Figure 4.2, the major delay factors are ranked by RII and presented in chart
form for ease of observation.

4.5 Analysis of Organizational contributions for delay factors

As indicated in the table 4.7 of organizational contribution for occurrence of project delay
factors, three of the main stakeholder organization in construction project (Client, Consultant
and Contractor) the organizations are ranked on the level of their contribution to the major
delay factors. The values are obtained by calculating weighed mean or importance index of
each stakeholder organization for respective factors. Delay of payment and Limitations in
communications among Stakeholder organizations are more attributable to the client
organization. Design problem, Delay in Design Drawings, Delays in decision making and
Commitment problem are more attributable to the consultant. Problem of financial
management, Limitations in preparing risk contingency plans and Limitations in Leadership
Practices are more attributable to the contractor organizations.

Page 35
Table 4.6 Contribution Rank of organizations

Rank Factor Description Client Consultant Contractor

Delay in Payment / Preparation, Checking,
1st F7 1st 2nd 3rd
Approval and effecting/

2nd F8 Problem of Financial Management 2nd 3rd 1st

Design problems, incompleteness, not

3rd F5 2nd 1st 3rd
matching with Bill of Quantities
Delay in Design Drawings / Contractor
4 th F3 requests, Consultant Prepares Client 2nd 1st 3rd
Approves/
5th F11 Increase in price of material and labor wages NA NA NA
Limitations in preparing risk contingency 1st
6th F21 plans. 3rd 2nd
7th F29 Limitations in Leadership Practices 3rd 2nd 1st
Limitations in communications among
8th F20 1st 2nd 3rd
Stakeholder organizations

9th F1 Delays in decision making 2nd 1st 3rd

Commitment problem to achieve Project
10th F6 2nd 1st 3rd
time schedule

4.6 Further elaborative case studies

Case studies of two projects which had history of schedule delay problem are incorporated to
this study. The two projects were implemented by local private Grade One contractors. Basic
Profiles of the two projects at initial start and the actual condition at completion were
assessed from documents of the project’s initial contract document and the completion

Page 36
reports. The discrepancies in project time schedules and claim issues raised during the project
period are compared and discussed.

Project – 1
Project Cost:Birr 28,568,265.00
Project duration: 12 Months
Project commencement date: May 25,2015
Project completion date as per the contract: May 25,2016
Actual contract completion date: December 13,2016
Major Time Claims issues:

- Claim for time due to delay of effecting advance payment.

- Claim for time due to work interruptions by rainy weather.
- Claim for time due to delayed work start because site was not handed over to contractor.
- Claim for time due to changed work design.
- Claim for time due to absence of supply materials in the local market and requesting
additional time for foreign purchase and shipping.
- Claim for time due to work interruption by right of way problem.
- Claim for time due to work interruption by interference of another contractor in the
working area.
- Claim for time due to delay of compensation payment for farmer’s land and crops.

Comparison of project on start and completion

- Planned project duration = 12 months

- Actual project duration = 19 months
- Increase in project time schedule = 58.30 % of planned project duration

Project – 2

Project Cost:Birr 84,652,946.00

Project duration: 30 Months
Project commencement date:January 9,2013
Contract completion date as per the contract: July 9,2015

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Actual contract completion date: June 30,2016
Major Time Claims Issues:

- Claim for time due to delay of site possession problems.

- Claim for time due to right of way problem.
- Claim for time due to delay of interim payment.
- Claim for time due to change of design
- Claim for time due to obstructions in the working area.
- Claim for time due to delay of determining specifications missing in the contract
document.

Comparison of project on start and completion

Planned project duration = 30 months

Actual project duration =41 months

Increase in project time schedule = 36.7 % of planned project duration

4.6.1 Summary of Key Implications of Case Studies:

The two project cases imply that there is significant schedule delay problem. The first project
had time schedule overrun for 58.3% of planned project duration while the second project
had 36.7% of the planned project duration. This is in similarity with the finding from the
research study that has revealed prevalence of significant delay problem in construction
projects implemented by private Grade-1 and Grade-2 local contractors.
In projects of the case studies, problem of delayed payment and delayed designs are raised as
issues for claiming additional project time.
These two factors are also among the major delay factors identified by the research study
even though their rank of importance is different in the research and in the case studies. In
summary finding from the research study has implication of relevance when compared with
the actual project case studies.

Page 38
 CHAPTERFIVE; CONCLUSTION&
RECOMMENDATION

5.1 Conclusion

i. The study has shown that there is significant incidence of delay occurring in construction
projects of private local construction companies.
ii. The study has shown that there are several factors which cause delay of construction
projects. These factors differ in level of their frequency of occurrences and severity of
impacts in causing project delays, which are both important in assessing problem of
project delay. Therefore, the study assessed project delay factors by taking overall effect
of both frequency and severity of impacts. Various delay factors are compared based on
these relative importance indexes and ranked out. The top major factors are ranked in
their order as: Delay in Payment, Problem of financial management, Design problems,
Delay of design, Increase in price of material and labor, Limitations in preparing risk
contingency plans, Limitations in leadership, Limitations in communication, Delays of
decisions and Commitment problem.
iii. The research has also revealed that three of the main stakeholder organization in
construction project (Client, Consultant and Contractor) have different levels of
contribution for occurrence of project delay factors. Accordingly, the organizations are
ranked on the level of their contribution to the major delay factors. Delay of payment is
more attributable to the client; Design problem is attributable to the consultant while
problem of financial management is more attributable to the contractor organizations.
Contribution for the other factors is also ranked accordingly.

5.2 Recommendations:

Page 39
Construction projects involve complex activates and several interlinked subcontractors and
supplier relations. Therefore, on-schedule implementation of these projects needs smooth
financial flow, resource supply, extra commitments and close cooperation among
stakeholders in discharging their responsibilities.

➢ The client organization has to take the initiative in setting foundation for collaboration
among all the parties besides resolving limitations observed in its own organization. This
is because; the client is prime owner of the project and employer of both the contractor
and the consultant

➢ Clients should attentively and indepth evaluate when employing consultants for the
project. Consultants who were partner in projects with serious delay problems should be
well assessed to ensure that they were not related to the delay problem.

➢ Besides government institutions, associations of private contractors have to sponsor and

financially support broad researches on project delay and other challenges encountering in
the construction sector since they have direct contractual obligation to achieve project
schedule or suffer the damage payment for project delay.

➢ Contractors have to efficiently manage financial resources allocated to the project besides
planning for alternative financial sources in cases of payment delay for one or other
reason.

➢ Consultants have to devote their time and energy in preliminary planning of the project
actual contexts and preparing complete and comprehensive designs ahead of project
commencement.

➢ Consultants have to be proactive looking forward to likely changes in the project scope
and take responsibility of alerting both the client and contractor. This will give them
reputation both as organization and professionals.

Page 40
 REFERENCES

A. A. E. Othman, “An international index for customer satisfaction in the construction

industry,” Int. J.Construction Manaement ., vol. 15, no. 1, pp. 33–58, Mar. 2015.

Bentator, B.&Thumann, A. (2003). Project management and leadership skills for engineering
and construction projects. USA: Fairmont Press

Fantina, R.(2015).Basic aspects of advanced construction project’s organization and

management:Bultest Standard LTD

Garold, D.(2000).Project Management for engineering and construction: (2nded). USA,

Oklahoma: McGraw -Hill.

Greener S. (2008). Business research methods: Dr.Sue Greener &Ventus Publishing ApS

Hailemeskel,T.(2013). Management control of projects in construction industry: Ethiopian

Context

Hassina,O.(2016). Analyzing the Planning and Scheduling of 40/60 Saving Houses

Development Enterprise

JIA,L. (2015). Impact of the cost overrun factors on the project delay in construction
industry: Malaysia,Pahang

Kerzner,H. (2009). Project management, a systems approach to planning, scheduling, and

controlling (10th ed). Hoboken, NJ: John Wiley &Sons,Inc

Kerzner,H. (2010). Project management, best practices (2nded). Hoboken, NJ:John Wiley
&Sons,Inc

Lutchman. C, (2011). Project Execution- Practical approach to industrial and commercial

project management.USA: CRC Press

Meredith,J&Mantel,S.(2009). Project management, a managerial approach (7thed).USA:John

Wiley &Sons,Inc

Ministry of Labor and Social Affairs (2009). National Employment Policy and Strategy of
Ethiopia National: Ethiopia, Addis Ababa.

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Ministry of Urban Development and Construction (2012). Construction Industry Policy.:
Ethiopia, AA

Ministry of works and urban development (1994). Standard conditions of contract for
construction of civil works. Ethiopia, AA

Mukuka M., Aigbavboa C.O. &ThwalaW.D.(2014). A theoretical review of the causes and
effects of construction projects cost and schedule overruns: International Conference on
Emerging Trends in Computer and Image Processing. (ICETCIP'2014)

Mukuka,M.,Aigbavboa,C&Thwala,W.(2015).Effects of construction projects schedule

overruns: A case of the Gauteng Province: South Africa : Elsevier B.V.

PMI (2017). A guide to the project management body of knowledge(6th ed). USA,Newtown
Square, PA: Project Management Institute.

P. U. Okoye, C. Ngwu, and S. Ugochukwu, “Evaluation of Management Challenges Facing

Construction Practice in Nigeria,” Int. J. Appl. or Innov. Eng. Manag., vol. 4, no. 1, pp. 19–
28, 2015

Shambel,G.&Patel,D.(2018).Factors influencing Time and Cost Overruns in Road

Construction Projects: Addis Ababa, Ethiopian Scenario.

Solomon S.(2015): The management of construction processes in developing countries: A

case study of Ethiopian roads authority

Sreevidya,S.&Sunitha,S.(2011).Business research methods. India:Calicut university

TadesseA.,Dakhli,Z&Lafha,Z.(2016). Assessment on performance and challenges of

Ethiopian construction industry. Journal of Architecture and Civil Engineering.

Werku,K.,&Jha,N.(2016).Investigating Causes of Construction Delay in Ethiopian

Construction Industries. Journal of Civil, Construction and Environmental Engineering.

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Wysocki, R. (2014). Effective project management: traditional, Agile, Extreme(7th ed.):

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Zinabu,T.(2016).Construction Projects delay and their antidotes: The Case of Ethiopian

Construction Sector. International Journal of Business and Economics Research.5(4),113-122

APPENDIXES

Page 43
 ANNEX -1

Table: Results of Data Analysis for FI, SI and RII of Construction delay factors

Factor Description FI SI RII

F1 Delays in decision making 0.865 0.853 0.738

F2 Internal administrative problems 0.846 0.769 0.651

Delay in Design Drawings / Contractor requests, Consultant

F3 Prepares Client Approves/ 0.892 0.905 0.808

F4 Delay in Test results and work orders 0.731 0.692 0.506

Design problems, incompleteness, not matching with Bill of

F5 Quantities 0.911 0.925 0.843

F6 Commitment problem to achieve Project time schedule 0.814 0.891 0.726

Delay in Payment / Preparation, Checking, Approval and

F7 effecting/ 0.962 0.949 0.913

F8 Problem of Financial Management 0.918 0.95 0.873

F9 Shortage of Technically capable manpower 0.678 0.911 0.618

F10 Shortage of Equipment 0.865 0.835 0.723

F11 Increase in price of material and labor wages 0.917 0.865 0.794

F12 Limitations in thorough prior planning before bidding 0.782 0.802 0.628

F13 Limitations in monitoring and controlling 0.802 0.892 0.716

F14 Unsuitable Weather Conditions 0.815 0.821 0.67

Page 44
 F15 Lack of budget after project work started 0.853 0.75 0.64

F16 Scope change and variation works 0.827 0.84 0.695

F17 Reworks due to poor works quality 0.821 0.815 0.67

F18 Labor shortage after project work commenced 0.833 0.827 0.689

F19 Change in design and Specifications 0.815 0.846 0.69

Limitations in communications among Stakeholder

F20 organizations 0.879 0.854 0.751

F21 Limitations in preparing risk contingency plans. 0.834 0.918 0.766

F22 Lack of sponsor support for the project 0.595 0.943 0.562

F23 Changes occurred in site conditions 0.46 0.692 0.319

F24 Unethical practices among stakeholder organizations 0.95 0.692 0.658

F25 Unreliable subcontractors and suppliers 0.879 0.692 0.609

F26 Limitations in involving important indirect stakeholders 0.84 0.775 0.651

F27 Limitations in efficiency of equipment. 0.776 0.865 0.672

F28 Lack of Experience of the organization 0.866 0.712 0.617

F29 Limitations in Leadership Practices 0.801 0.95 0.761

F30 Limitations in enforcing regulatory laws 0.795 0.653 0.520

ANNEX -2

Page 45
 Questionnaire

ADDIS ABABA UNIVERSITY

SCHOOL OF GRAGUATE STUDIES
DEPARTMENT OF PROJECT MANAGEMENT

Dear research participant;

Thank you for your consent to participate in answering this research questionnaire. My name
is Netsanet Berhanu. I am prospective graduate of 2018from Addis Ababa University,
Department of Project Management in MA degree. I am conducting this research as
requirement of partial fulfillment for award of the degree. The research title is “Assessment of
factors causing delay of construction projects: Evidence from construction project
managers”. It will have significant benefits in improving performance of Ethiopian
construction sector.
Pursuant to ethical considerations of researches, I would like to assure you that the
information you give will be used only for research purpose and your anonymity and
confidentiality will be respected. Hence don’t mention your name in the questionnaire. It
takes you only about 30minutes to complete the questionnaire. Your honest and genuine
answer for the question is of high value for the research result. If you need further
clarifications of any kind you well come to call me by Tel.No 0911-461086

Instruction

Page 46
How to answer the questionnaire?
The questionnaire is answered by marking ✓ in the spaces corresponding to your answer.
For questions about delay factors indicate by marking ✓on spaces corresponding to
frequency of occurrence, severity of impact, contribution of the client, consultant and
contractor organizations for occurrence of the factors.
General Definition:

- Level of frequency of occurrence-describes how frequently this factor is occurring in

construction projects.
- Level of severity of impact describes how severely this factor is impacting projects to
delay if once it occurs.
- Contribution by stakeholders describes the level of contribution of each stakeholder
organization for occurrence of the factor.

Page 47
 RESPONDENT’S GENERAL INFORMATION

1- Please Indicate your Professional Background by marking ( ✓ ) in the table

Engineering Management Other

Specify
PART I. Information about prevalence of project delay

2- Please
Please Indicate
mark ✓ totalyour Educational
number of majorBackground
projects youbyrun
marking ( ✓ manager
as project ) in the table
during (2008-2018)
1 2 3 4 5 6 7 8 9 10 Above
Diploma 1St Degree 2nd Degree PHD Other
10 specify
Specify
Please mark ✓ how many of the projects were completed on time or ahead of time
None
3- 1 your years
Please Indicate 2 of experience
3 as 4project manager
5 6
in Local 7 Grade 18 or 2 Contractor
Private 9 10
Company Above ( ✓ )
by marking

10
1to 5 years 5 to 10 years 10 to 15 Years Above 15 years
Specify

Please mark✓ how many of the projects were delayed

None 1 2 3 4 5 6 7 8 9 10 Above

10

Specify
Page 47
 No
Factor Contributio V.Hi Hi Medi L V.Lo Contributio
Factor No Level Frequency Impact
Description n By gh g um o w n
h w
V.High V.H V.H Client
High H H Consultant
Delays Mediu
F1 in m M M Contractor
decision Low L L
making V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Internal Mediu
F2 administrative m M M Contractor
problems Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Delay in Mediu
F3 Design m M M Contractor
Drawings Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Delay in Test Mediu
F4 results and m M M Contractor
work orders Low L L
V.Low V.L V.L
V.High V.H V.H Client
Design High H H Consultant
problems, Mediu
F5 m M M Contractor
incompleteness
Page 48 , not matching Low L L
V.Low V.L V.L
Page 49
 Factor No
No Factor Contributio V.Hig Hig Mediu Lo V.Lo
Level Frequency Impact Contributio
Description n By h h m w w
n
V.High V.H V.H Client
Commitment High H H Consultant
F6 problem to Mediu
achieve Project m M M Contractor
Factor time schedule poor Low L L HH H L ltant Contractor
No Factor worksV.LowLevel M L Cont Cont
V.L Frequen
V.L Impa
Description quality V.L H ri racto
Delay in V.High V.H cy V.H Client ct
V.H H b r Client Consultant
Payment / HighV.High
H H Consultant ut
Limitations in V M L V M Contractor
F12 Preparation, Mediu
High io
thorough prior V.L
F7 Medium . . n
planning before
Checking, m M M V.H H Contractor L Clie
Low V.Low H H B
Approval and
bidding Low L L M L nt
V.High H H y
effecting/ V.Low V.L V.L V Cons
High M M
V.High V.H V.H Client . Cl ultan
F13 Limitations in Medium L L
High
Mediu H H Consultant L ie t
Problemand
monitoring of Low V.Low V V
F8 Financial V nt Cont
.L .L
controlling m V.High M M Contractor . C racto
Management Low High L V L V
Medium
V.Low V.L . V.L . H on r
Unsuitable Low V.Low
V.High V.H H V.H Client H su
F14 H
Weather
Shortage of HighV.High
H H H H
Consultant lta
Technically
Conditions High
Mediu M M nt Clie
F9 capable m Medium M L M Contractor
L M C nt
manpower Low Low V.Low
L V L V on Cons
Lack of budget V.Low V.L
V.High .L V.L .L L tra ultan
F15 V.High t
after project High V.H V V.H Client V ct
work started High H
Medium . H Consultant
. V or Cont
Shortage of Mediu
Low V.Low H H . racto
F10 Equipment m M M Contractor
H H L r
Low V.High
L L V
Scope change High M M Cl
F16 V.Low V.L V.L .
and variation Medium L L ie
works Low V V H nt Clie
.L .L C nt
V V H on Cons
. . su ultan
Page 50Reworks due to
F17 M t
 No
V.High High Mediu Low V.Low Cont
m ributi
on
 No
Factor Factor Contributio V.Hi Hi Medi Lo V.Lo Contributio
Level Frequency Impact
No Description n By gh g um w w n
h
V.High V.H V.H Client
High H H Consultant
Labor shortage Mediu
F18 after project m M M Contractor
work commenced Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Change in design Mediu
F19 m M M Contractor
and Specifications
Low L L
V.Low V.L V.L
V.High V.H V.H Client
Limitations in High H H Consultant
communications Mediu
F20 among m M M Contractor
Stakeholder Low L L
organizations V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Limitations in Mediu
F21 preparing risk m M M Contractor
contingency Low L L
plans. V.Low V.L V.L
Page 51 V.High V.H V.H Client
High H H Consultant
 No
Factor Factor Contributio V.Hig Hi Medi L V.Lo Contributio
Level Frequency Impact
No Description n By h g um o w n
h w
V.High V.H V.H Client
High H H Consultant
Changes Mediu
F23 m M M Contractor
occurred in site
conditions Low L L
V.Low V.L V.L
V.High V.H V.H Client
Unethical High H H Consultant
practices Mediu
F24 m M M Contractor
among
stakeholder Low L L
organizations V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Unreliable Mediu
F25 subcontractors m M M Contractor
and suppliers Low L L
V.Low V.L V.L
V.High V.H V.H Client
Page 52 High H H Consultant
 Limitations Mediu
in involving
F26
Factor Contributio V.Hi Hi Mediu L V.Lo No
No Factor Description Level Frequency Impact n By gh g m o w Contribution
h w
V.High V.H V.H Client
High H H Consultant
Limitations Mediu
F27 in efficiency m M M Contractor
of equipment. Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Lack of Mediu
F28 Experience of the m M M Contractor
organization Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Limitations Mediu
F29 in Leadership m M M Contractor
Practices Low L L
V.Low V.L V.L
V.High V.H V.H Client
High H H Consultant
Limitations in Mediu
Page 53enforcing
F30 m M M Contractor
regulatory Low L L
laws
Page 54