ASSESSMENT OF PROJECT PERFORMANCE: CASE OF 40/60 SAVING HOUSE DEVELOPMENT ENTERPRISE IN ADDIS ABABA BOLE AYAT LOT II

Abstract

Construction industry has complexity in its nature because it contains large number of parties as clients, contractors, consultants and other stakeholders. Construction projects suffer from many problems and complex issues in performance such as cost, time and quality. The aim of this thesis is to identify and evaluate the main factors affecting the performance of construction projects in the case of Bole Ayat 40/60 condominium. Literature reviews about performance were sited to identify the factors affecting the performance of construction projects. The methodology/research design followed was descriptive research. A questionnaire survey was conducted and 44 factors were identified, categorized, evaluated and ranked from small and micro enterprises, client, consultants and contractors perspectives. The results were analyzed and discussed to obtain the most performance indicators. The relative importance index (RII) method was used here to determine perceptions of the relative importance of the performance indicators in construction projects. The extremely significant factors affecting time performance were shortage of material, financial problem and poor communication and coordination with RII 0.75, 0.74 and 0.71 respectively. Whereas the factors affecting cost performance were fluctuation in the cost of material, lack of cost planning and design change with RII 0.77, 0.693 and 0.691 respectively and factors affecting quality performance were educated and experienced personnel, quality of materials and equipment used in the project with RII 0.81, 0.72 and 0.69 respectively. Recommendations were formulated to improve performance of construction projects. It was concluded that every party participating on the project should have good communication and coordination to avoid design discrepancies and disputes to improve performance; they should have to hire qualified personnel to overcome any technical and managerial problems