CHAPTER 4

DATA ANALAYSIS AND PRESENTETION

4. Introduction

This study introduces and discusses Factors affecting project success in building construction in
Holeta town, West Shoa Zone, Oromia Regional State, Ethiopia. The fourth chapter presents the
project success in building construction performed by public in the study area. This chapter has
two most important sections. The first part describes the socio-demographic characteristics of
respondents using descriptive statistics. The second component of the chapter is about the
econometric model. Descriptive analysis was undertaken using SPSS 20 while econometric
analysis was undertaken by using both SPSS 24 and STATA software package version 14.

4.1. Response Rate

As stated in the chapter three with regard to the methodologies; 249 questionnaires were
distributed and 229 were returned for analysis. Meanwhile, when the data were checked for its
completeness and practical response pattern, only 220 valid responses were found. So, this
means 9 responses were invalid and canceled from the analysis. Among the rejected responses 5
of them were incomplete and 4 of them have extreme patterns. Therefore, 220 valid responses
were used for data analysis.

Table 4.1: Response Rate of Survey questionnaire

Participants Questionnaire Administered Questionnaire Retrieved Perc.

Client 15 10 66%

Contractor 91 80 88%

Consultant 158 129 81%

Project manger 1 1 1%

Total 249 220 88.5%

Source: Author’s Computation from own survey data, 2024

The above table 4.1: shows that among the respondents of 249 only 220 (88%) valid responses
were found this indicate that significant amount of responses were gained from these
respondents.

4.2 Demographic Characteristics of Respondents

4.2.1 Demographic Information of the Respondents

The general information of the respondents from whom the data analyzed in this chapter were
includes gender, age, work experience, educational backgrounds and marital relations. The
information on this demographic information had contributed to reliability of the main data have
been analyzed to attain the main research objectives. It was categorized into three parts. One part
presents the sex, age and educational level of the participants. The second part presented work
experiences and organization of the individuals who provided data for the study the third party is
occupational level of respondents. The demographic information of the respondents enabled the
researcher to know the indirect and direct contributions to the findings of the study. Hence, the
topic begins with describing the numbers of questionnaires distributed and collected as in table 1
below.

4.2.1.1 Sex, Age and Educational level of the Respondents

This topic contains three background profiles of the informants it describes the number of female
and male informants, their age gap and level of education.

Table 4.2 Sex, Age and educational level of respondents

Variables Category Frequency Percentage

Sex Female 54 24.5

Male 166 75.5

Total 220 100

Age 20-29 147 66.8

30-39 56 25.5

40-49 12 5.5

>50 5 2.3

Total 220 100

Level of education Certificate 102 46.4

As shown
Diploma 94 42.7 in table
4.2, the
Degree 17 7.7
numbers of
Masters 7 3.2 male

Total 220 100

respondents who have been participated in responding to questionnaires were greater than that of
female respondents. This covers 166 (75.5%) and 54 (25.5%) respectively. This shows the
organization has to give more focuses on employing female. In terms of age of respondents, most
of the respondents fall in the range of 20-40 years which covers 203 (90.3%) of the total
respondents to the administered questionnaires to them. In significant number of respondents i.e.,
17(9.7%) have been participated in filling the questionnaires distributed to them are between 40-
50 and above 50 years old. This implies that most of the respondents were young and few of
them were old. The result vies had the direct implication with experience of the respondents too.
Moreover, the result implies that, the more the respondents are matured enough, the better they
have experiences. The table 4.2 also adds, about the educational level of respondents.
Accordingly, 102 (46.4%) of respondents had certificate and the remaining were diploma and
above academic ranks. This implies that the organization have significant number of skilled staff.

4.2.1.2 Work Experiences and Organization of Respondents

Figure 4.1: Work experience of respondents

Source: Author’s sketch from own survey data, 2024

Most of the respondents from the construction building falling below five years’ experience,
which contains 60% of the respondents. Whereas, 20.9% are falling between 6-10 years.
Additionally, 13.6% of respondents were falling between 11- 15-year experience and the left are
more than fifty-year experiences.

Figure 4.2: Organization of Respondents

Source: Author’s sketch from own survey data, 2024

As it can be explained in the above table 4.4 and pie charts the majority of respondents was exist
in different organization. Among them only 25 (11.4%), 16(7.3%), 12(5.5%) respondents are
consultant, contractor and client respectively. The left respondents 167 (75.9%) are exist in other
organization. So the organization has to give the emphasis to client, contractor and consultants.

4.2.1.3 Occupation level of respondents

Informants responded to the questionnaires administered to them have different occupation in the
construction building. Their occupation or jobs are mentioned in the table below.

Table 4.3: Occupation level of respondents

Frequenc Percen Valid Cumulativ

y t Percen e%
t

Project manager 1 .5 .5 .5

Human resource manager 18 8.2 8.2 8.6

project Engineer 39 17.7 17.7 26.4

site engineer 10 4.5 4.5 30.9

supportive staff 12 5.5 5.5 36.4

office engineer 13 5.9 5.9 42.3

 other project personnel 32 14.5 14.5 56.8

leader staff at the 13 5.9 5.9 62.7

sector/corporation

engineering staff at the 17 7.7 7.7 70.5

sector/corporation

supportive staff at the 21 9.5 9.5 80.0

sector/corporation

Others 44 20.0 20.0 100.0

Total 220 100.0 100.0

Source: Author’s from own survey data, 2024

According to the information from Table 4.3, as much as possible, individuals from different
responsibilities have been included to respond to the questionnaires so as to ensure genuinely and
reliability of the data. That is, individuals from both administration and who have participated in
construction building have been as data sources for this study. However, the majority of the
respondents were project engineers (17.7%) and others (20%) whereas; few respondents were
managing bodies of project. So the organization has to give more focuses to project manage.

4.3. Descriptive Analysis of project implementation determinants and performance

of construction Building.
According to the interview result,

The interview data collected from the key informants involved in the study consolidate that
project control, project fund, project integration and external stakeholder are implementation
determinants which affect performance of construction building .The project managers reported
that construction building are performed within a given time at appropriate quality and at
initially approved cost. This performance is the result of appropriate project control, which
means there are well monitoring, well evaluation and feed back in construction building. Also
due to well schedule project finance, sufficient availability and adequacy of project fund project
success in building construction in Holeta town has been apropos. The managers also identifies
there is well negotiate among internal stakeholder such as within clients, consultants and
contractors. This is the result of well communication among project manager, client and
consultant in study area. Also the systematic problem solving methods there is more interaction
on project. However the managers mentioned that there is less negotiate among external
stakeholder. Most of the time the government cannot follow up provide fund at a time. There is
also less interaction among media, competitors, banks, insurance companies, and media. This
results in decrease in project success in building construction.

The informants also stated that construction building has an advantage in increasing GDP of
country, improve societal life and create Job opportunities for unemployment. Project
implementation determinants have a positive relationship within performance of construction
building. This means argumentative project control, project fund, project integration can result in
groovy project success in building construction.

The quantitative data obtained from key informants through questionnaires shows that project
success in building construction and the level of construction building performance which can be
provided through Likert scale questionnaire have different level of answers which can be
explained in terms of strongly disagree, Disagree, neutral, Agree and strongly agree. The studies
examine the effects of project implementation determinants project success in building
construction in Holeta town. Through descriptive analysis the result of two items were
explicated. Those were project implementation determinants that affect project success in
building construction on the one hand and level of construction building performance which
could be described in terms of time quality and cost on the other hand. Thus, two important
questions were answered in this major analysis of the study . According to Williams et al.
(2019),Project performance is measured in terms of completion time, the quality and adherence
to budgetary provisions and estimates. It is highly reliant on project managers able to monitor
(Hailemarkos, 2020) as well as control (Ronoh, 2020) the activities in projects. Study conducted
by Hailemarkos (2020) also said that availability of sufficient funds and effective financial
management are very important aspects in any project. Involving stakeholders and other end
users like the community members in projects is one way of increasing acceptance of the project
in the final stage of completion. Other stakeholders like the donors play the role of availing the
required funds to run the activities of the project and thus should be involved in all the stages of
the project (Zarei et al., 2018). Study of (Mpofu et al., 2018) also argues that Most projects start
off well but end up failing because of failure to involve stakeholders in the activities that are
undertaken. The following table and figure presents descriptive result of project implementation
determinants and project success in building construction in Holeta town. In order to analysis
descriptive result of selected variables, the Mean is used to understand the average rating, while
standard deviation is to tell how measurements are spread out from the mean (average). In this
particular study analysis frequency and percentage was also used Their correlation and effects
of project implementation determinants with performance of construction building can be
analyze at the end of these chapters now, Descriptive analysis of project implementation
determinants and performance of construction building are described below in the following
table.

4.3.1 Project control (PC)

Table 4.4: Mean and Standard Deviation of project control

Descriptive Statistics

Project managers can take feedback from N Min Maxi Mean Std. Dev
the environment that are directly or in
directly affect the project (PC7).

There is a regular monitoring of progress in 220 2.00 5.00 3.7091 .68707

the project (PC1).

The project activities are implemented 220 1.00 5.00 3.6636 .91937
according to planned (PC2).

Any activity’s in the project are 220 1.00 5.00 3.5955 .85740
systematically gathered (PC3).

Feedback can be taken from employee not 220 1.00 5.00 3.5636 .90182
only based on availability, also considering
scarcity of any project resources (PC8).
Decisions are made in terms of design 220 2.00 5.00 3.5591 .83920
evaluation (PC5)

Corporation gives periodic feedback on 220 1.00 5.00 3.5136 .95793

project performance & takes corrective
action (PC6).

A team of stakeholder are knowledgeable 220 1.00 5.00 3.4864 .95315

evaluating their own performance (PC4).

220 1.00 5.00 3.4682 .85682

Project managers can take feedback from
the environment that are directly or in
directly affect the project (PC7).

Average 3.57 0.827

According to for (Tsedania, 2020) for liker t type scale starting from 1 and ends at 5, the
resulting mean score can be interpreted as Low when it is from 1.00 to 2.33, Moderate when the
value is ranging from 2.34 to 3.64 and its said High when it is from 3.68 to 5.00. In the above
table 4.4, the highest mean is 3.7091 and the lowest mean is (3.4682). As it is indicated in the
above Table 4.4, it shows that the mean values of the Project control variables are ranged
“between”, 3.4682 to 3.7091 with standard deviation of .85682 to .68707. It means that there is
more ideal or high agreement among respondents with regard of the Project control statements.
The average mean value of Project control variables is 3.57 with standard deviation 0.827, which
also means there is a high agreement with Project control statements. For all variables, the
maximum response is Strongly Agree and the minimum is strongly Disagree for all variable
except PC7 and PC8. The result shows that the level of project control is high and among the
listed variables the PC7 has high mean value. As per the result, all the listed project control
dimensions are equally important that the respondents consider the importance and highly agree
to the points raised. Also, the deviation from average mean value is not that much far by
significant.
4.3.2 Project Fund (PF)
Table 4.5: Frequency and percentage of project fund

Stron Disagree Neutral Agree Strongly

gly
Project Fund F % F % f % F % f %
Fund which can be needed to 1 5 35 15.9 67 30.5 88 40 29 13.2
%
undertake project are available
on time through government
(PF1)
The employee can take their 2 9 26 11.8 64 29.1 112 50.9 16 7.3
salary and wage timely (PF2)
The fund which can be released 0 0 32 14.5 56 25.5 118 53.8 14 6.4
are sufficient to complete the
project(PF3)
The practice of overtime 1 5 22 10 57 25.9 125 56.8 25 6.8
payment with other benefit
package is attractive (PF4)
Project manager are control the 0 0 36 16.4 76 34.5 86 39.1 22 10
fund which is from external
rather than internal(PF5)
Fund managers manage equity 0 0 33 15 73 33.2 95 43.2 19 8.6
funds on behalf of clients who
are looking for greatest possible
return on their investment (PF6)
Fund managers are educated 0 0 33 15 69 31.4 93 42.3 19 11.4
professional who has appropriate
investment management
experience (PF7)
Source: Author’s from own survey data, 2024

As it can be vividly indicated in the Table 4.5 Project fund is the second variable which can be
described by respondents. This variable is also the important project implementation
determinants which have major effect on construction building performance. Regarding project
fund statement majority of the respondents agree and strongly agree to the choices. Such as PF1
among 220 respondents 1(5%) respondents strongly disagreed, 35(15.9 %) disagreed,
67(30.5.0%) stayed neutral, 88(40%) agreed and 29(13.2%) strongly agree. This implies that the
most respondents are agreeing that government can provide the fund which can be needed to
undertake project on time.

The other category also shows respondents agree and strongly agree to the choices presented to
them. Among those statements respondents agree to factors such as PF2, 2(9%) respondents
strongly disagreed, 35(15.9 %) disagreed, 64(29.1%) stayed neutral, 112(50.9%) agreed and
16(7.3%) strongly agree. Regarding PF3 statement 0(0.0%) respondents strongly disagreed,
32(14 %) disagreed, 56(25.5%) stayed neutral, 118(53. 6%) agreed and 14(6.4%) strongly agree.
PF4 statement 1(5%) respondents strongly disagreed, 22(10 %) disagreed, 57(25.9.0%) stayed
neutral, 125 (56.8%) agreed and 25(6.8%) strongly agree.

A number of respondents are also strongly agreed to these factors. For instance, statement of PF5
49.1% (39.1+10%) are agree and strongly agree, 34.6% stayed neutral,16.4 and also (16%+ 0)
are disagree and strongly disagree respectively about the statement. Other statement also PF6
51.8% (43.2+8.6), agree and disagree respectively, 33.2% respondents are stayed neutral, 15%
(15%+ 0.0 %) disagree and strongly disagree about the statement. Regarding statement of PF7,
0(0%) respondents strongly disagreed, 33(15%) disagreed, 69(31.4.0%) stayed neutral,
93(42.3%) agreed and 25(11.4%) strongly agree. The mean value of project fund was 3.50 and
standard deviation was 0.853 this result indicates that high level of It means that there is more
agreement among respondent about importance of the Project fund variable.

4.3.3 Project Integration (PI)

Table 4.6: Mean and std. Deviation of project integration

Descriptive Statistics

Project Integration N Min Max Mean Std. Dev.

i
Consultant Solve not only design 220 2.00 5.00 3.622 .87504
also any other consultant related 7
problems on time

There is effective communication 220 2.00 5.00 3.577 .70123

between project stakeholders team 3

Client support the project by 220 2.00 5.00 3.536 .74854

assigning representative at the 4
project site

The communication plan is in place 220 2.00 5.00 3.500 .76152

in the project 0

Consultant estimate of contract 220 2.00 5.00 3.495 .87323

schedule work volume is realistic 5

There is effective communication 220 2.00 5.00 3.440 .82825

between project stakeholders, team 9

Turnover of key personnel is low in 220 2.00 5.00 3.381 .88087

the project due to problems solved 8

Average 3.50 0.80

As it is indicated in the above Table (4.6), it shows that the mean values of the Project control
variables are ranged “between” 3.3818 to 3.622 with standard deviation ranges between.88087 to
.87504 It means that there is high agreement among respondents about statements of the Project
integration variables. The average mean value of Project integration variables is 3.50 with
standard deviation 0.80, which also means there is a high agreement for Project integration. For
all variables, the maximum response is Strongly Agree and the minimum is disagreed. The result
shows that from the level of project integration has high mean value. As per the result, all the
listed project integration dimensions are equally that the respondents highly agree to the points
raised. Also, the deviation from average mean value is not that much far by significant.
4.3.4 External stakeholder (ESH)
Table 4.7: Frequency and percentage of External stakeholder

Item related to training strongly disagree Neutral Agree strongly

need assessment disagree agree

F % F % f % F % f %
The involvement of 3 1.4 30 13.6 61 27.7 104 47.3 22 10
external stakeholder
make the project effective
External
(ESH1) stakeholder was 0 0 19 8.6 50 22.7 139 63.2 12 5.5
the main concern while
planning to do the
External stakeholder are
project(ESH2) 0 0 21 9.5 55 25 132 60 12 5.5
accepted properly when
the project is started
The project design was 0 0 22 10 75 34.1 113 51.4 10 4.5
under taken with the
concern of societal norms
and culture (ESH4)

Source: Author’s own survey data, 2024, (%) =percent f=frequency

As the result clearly indicated in table 4.7, external stakeholder is the third variable which can be
described by respondents. This variable is also the important project implementation
determinants which have major effect on construction building success. Regarding external
stakeholder statement majority of the respondents strongly agree and agree to the choices. Such
as ESH1 among 220 respondents 3(1.4%) respondents strongly disagreed, 30(13.6 %) disagreed,
61(27.7%) stayed neutral, 104 (47.3%) agreed and 22(10%) strongly agree. This implies that the
most respondents are agrees that the involvement of external stakeholder make the project
effective. The other responses also show respondents agree and strongly agree to the choices
presented to them. Among those statements respondents agree to statement such as ESH2,
0(0.0%) respondents strongly disagreed, 19(8.6%) disagreed, 50(22.7%) stayed neutral,
113(63.2%) agreed and 12(5.5%) strongly agree. Statement of ESH3, 65.5% (60%+5.5%) are
agree and strongly agree respectively 25%% stayed neutral, 9.5% (0%+ 9.5) are strongly
disagree and disagree respectively about the statement. The mean value external stakeholder was
3.57% and standard deviation was 0.77 this result indicates that high level of the value the more
agreement between respondent about importance of the importance of external stakeholder.

4.3.5 Performance of construction building (PP)

Table 4.8: Mean and std. Deviation of construction building performance

Success of building construction N Min Ma Mean Std.

x Devi

The project is completed within the 220 2.00 5.00 3.7227 .64845
initially approved budget

The project deliverable always fulfill 220 2.00 5.00 3.5364 .80724
the customer requirements

Due to variation of work Additional 220 2.00 5.00 3.5364 .87248

cost is needed

Lack of cost planning/monitoring 220 2.00 5.00 3.5091 .90403

during pre and post-contract stage

The enterprise do not provides 220 2.00 5.00 3.5045 .88363

adequate training to enhance the
quality of project performance.

The project is completed 220 2.00 5.00 3.5000 .76749

successfully before the planned time.

The project quality objectives are 220 2.00 5.00 3.4864 .88869
met.

Shortage of equipment during 220 2.00 5.00 3.4727 .74281

construction cause delay the time of
project completion.

The project is completed on schedule 220 2.00 5.00 3.4364 .85504

Average 220 3.52 0.81

Computed by SPSS 20, Source: Author’s Computation from own survey data, 2024

As it is indicated in the above Table (4.8), it shows that the mean values of the construction
building performance (pp) variables are ranged between. “3.4364 to 3.7227” with standard
deviation ranges between “.85504 to .64845”. This means that there is more agreement among
respondents about the project success in building construction. Which means the construction
building was performed during a given time, within an initial approved budget or cost and its
quality are satisfying the respondents. The average mean value of construction building
performance is 3.52 with standard deviation 0.81, which also means there is a high project
success in building construction. For all variables, the maximum response is strongly Agree and
the minimum is Disagree. The result shows that among the statement of construction building the
project is completed within the initially approved budget high mean value among the listed
statements. As per the result, all the listed construction building dimensions are equally
performed that the respondents highly agreed to the points raised.

4.4. Hypotheses Testing and Interpretation

4.4.1 The relationship between project implementation determinants and performance of
construction building
Pearson correlation Analysis

Pearson product moment correlation is applied to test how much project implementation
determinants and performance of construction building is correlated which cannot be statistically
tested. Correlation analysis studies the joint variation of two or more variables for determining
the strength and direction of the relationship among the variables(Tsedania, 2020). Accordingly,
in order to identify whether the dependent variable & independent variables have a joint
variation, Pearson’s correlation was computed. Pearson correlation results range between 1
(perfectly linear positive correlation) to -1 (perfectly linear negative correlation). When the
correlation value is 0, no relationship exists between the variables understudy and when the
correlation value is lies in the middle between 1 & -1 (excluding 0) the below interpretation
guide (Table 4.10) developed by (Nigatu et al., 2019)becomes handy. Accordingly, this guide
has been used to interpret the results which are summarized in the coming sections. Pearson
product moment correlation is applied to test how much Project implementation determinants
and performance of construction building is correlated.

Table 4.9: Correlation result guide

Interpretation Correlation value in range Interpretation

0.00 to 0.19 Weak/ very low correlation

0.20 to 0.39 Low correlation

0.40 to 0.59 Moderate correlation

0.60 to 0.79 High correlation

0.8 to 1.0 Very high correlation

Source: (Nigatu et al., 2019)

Table 4.10: Correlation result

Variable Success of construction building (Sbc)

Pearson correlations Sig. 2-tailed) N Value

Project control(PC) .703** .000 220 High correlation

Project fund(PF) .634** .000 220 High correlation

Project integration .778** .000 220 High correlation

(PI)

External .312* .000 220 Low correlation

stakeholder(ESH)

Source: Computed by SPSS, Source: Author’s Computation from own survey data, 2024
As it is briefly indicted in table 4.10: the correlation between project control and
performance of construction building is .703 this implies high correlation between
SBC and PC. The correlation between project fund with construction building and
project integration are .634 and .778 respectively this also indicate that high
correlation between both PF with SBC and PI with SBC. The end correlation is
external stakeholder with performance of construction building. The result is .312
this shows low correlation between SBC and ESH

4.5. Regression Diagnostics

Before speeding up to econometric estimation and result demonstrate, the different econometric
assumption was tested. Variance inflation factor (VIF) was employed to test Normality to check
weather data are normally distributed or not, the presence or absence of multicollinearity among
independent variables. Secondly, the heteroscedasticity problem was tested by using Breush-
pagen test (hettest), unfortunately, the unequal variance was detected; as a remedy, therefore,
robust standard error calculation was used. Thirdly, the inclusion and exclusion of irrelevant and
relevant variables respectively were tested by link and OV (omitted) tests. All relevant tests for
the OLS regression model can be seen in the following page.

4.5.1 Normality

In conducting multiple regression analysis using regression equation, as suggested by (Kihoro,

n.d.2015) key assumptions should be met. Consequently, to perform the regression analysis
involving multiple independent variables, the researcher must check for the variables have,
homogeneity of variances, normality of both predictor and predicted variables; and there is no
collinearity between independent variables (to determine the separate effect of project success
factors). In this regard, the assumptions for required statistics and their result are presented as
follows.

Figure 4.3: Normality of dependent and Independent Variable

Source: Computed by SPSS, Source: Author’s Computation from own survey data, 2024

As (Thomas, 2018) and (Tsedania, 2020) noted, normal distribution takes the form of a
symmetric bell-shaped curve. Accordingly, as we observed from the above figure (figure 1), the
histogram look like a normal distribution (bell-shaped curve) and the distribution is roughly
normal. Moreover, the histogram (the curve) is perfectly skewed (symmetrical). Therefore, the
researcher concluded that the researcher has good model for the data; and possibly, the
researcher can infer to the population

Normally distributed errors

The normal probability plot also shows up deviations from normality. The straight line in this
plot represents a normal distribution, and the points represent the observed residuals. Therefore,
in a perfectly normally distributed data set, all points will lie on the line (Oynaka, 2020)
Likewise, as we seen in the above figure (figure 4.34), the dots are closely plotted to the straight
line, which indicate a small or no deviation from normality and there are no extreme cases
observed. Therefore, the assumption of linear regression has been met and we can possibly
assume that the model is accurate and can probably generalize to the population.
Fig 4.4 normally distributed errors
Source: Computed by SPSS, Source: Author’s Computation from own survey data.

4.5.2 Multicollinearity
The multicollinearity statistics result for both project success factors constituents were performed
on SPSS and presented as follows.

Table 4.11: Multicollinearity result

Variable VIF 1/VIF

PF 2.26 0.443281

PI 1.97 0.507486

PC 1.97 0.507594

ESH 1.17 0.855035

Mean VIF 1.84

Source: Author’s Computation from own survey data, 2024 Computed by STATA 14

The term multicollinearity is the existence of a “perfect,” or exact, linear relationship among
some or all explanatory variables of a regression model and also refers to the case in which two
or more explanatory variables in the regression model are highly correlated and also an
indication for a linear relationship between independent variable is called multicollinearity. So,
multicollinearity occurs when the independent variables are not independent of each other. The
presence of multicollinearity affects the least-squares estimators and renders them inefficient.
The problem of multicollinearity must therefore be regarded as a ‘block mark’ that reduces the
confidence in the conventional tests of least squares estimators. The method that is commonly
used to discover the existence or absence of multicollinearity is the variance inflation factor.
Based on this the researcher used the variance inflation factor test to check the presence or
absence of multicollinearity in the data.

A decision rule for the multicollinearity test for the model stated is a variable whose VIF value is
greater than 10 indicates the existence of a multicollinearity problem. As it is observed in the
table above there is no VIF value greater than 10. The researcher concluded that there is no
problem of multicollinearity between the explanatory variables.

4.5.3. Test for Heteroscedasticity

Table 4.12: Heteroscedasticity result

Robust

P Coef. Std. Err. T P>t [95% Interval

Conf.

PC .201433 .0847302 2.38 0.018 .3684414 .0344248

PF .274645 .0744502 3.69 0.000 .1278993 .4213908

PI .4915846 .0765627 6.42 0.000 .3406749 .6424943

ESH .0164683 .0528144 0.31 0.755 -.087632 .1205687

 1

CONS .0588437 .2033632 0.29 0.773 -.341997 .4596845

2

Computed by STATA 14, Source: Author’s Computation from own survey data, 2024

Under classical regression model once at the basic assumption that the probability distribution
term remains same overall observations of explanatory Var (ui) =S 2= constant variance. The
condition of non-constant variance or non-homoscedasticity of variance is known as
heteroscedasticity. This type of test is used to examine the pattern of the error terms variance are
constant or to test the assumption of homoscedasticity. Heteroscedasticity is present if the
variance of the error term is not constant or different variance for different segments of the
population or sample size.

Heteroscedasticity is present if the variance of the error term is not constant or different variance
for different segments of the population or sample size. Heteroscedasticity is more likely to exist
in cross-sectional than time-series data. To check this researcher used testing method developed
by Breuschpegan. The decision rule is if the p-value of the Breuschpegan test is less than any of
the chosen significance levels i.e., 10%, 5%, and 1% which indicates that there is the probable
problem of heteroscedasticity. Thus, the result indicates that Prop chi-square 74.93 of 0.0000
less than any significance levels and the study conclude these shows unfortunately unequal
variance was detected; as a remedy, therefore, robust standard error calculation was used.

4.5.4. Test for model specification

Table 4.13: Test for Omitted Variables

Ho: model has no omitted variables

F (3, 212) = 5.18

Prob > F = 0.0018

Source: own survey 2024, Computed by STATA 14,

The model specification refers to the description of the process by which the dependent variables
is generated independent variable. Thus, it encompasses the choice of independent and
independent variables, as well as the functional form connecting the independent variable to the
dependent. The specification of a regression model should be based primarily on theoretical
considerations rather than empirical or methodological ones. Testing the model specification is
very important to check out whether one or more relevant variables are omitted from the model
or one or more irrelevant variables are included in the model. There are different methods to
check the specification error of the model. The Ramsey reset test for omitted variables is
commonly used in the test.

The Ramsey reset test for omitted variables (ovtest) was tested. As depicted in the table above, it
tests the null hypothesis that Ho model has no omitted variables, as a decision rule according to
Ramsey reset test, a model specification is fit for regression analysis if the p-values stated in P>F
is greater than the chosen level of significances i.e., 1%, 5% and 10%. According to this taste
indicates the model has no relevant omitted variable since the test was failed to reject the null
hypothesis. Prop> F is 1% which is greater than any of the significance levels of the specified
model of the study.

4.6. Regression Analysis

Under this, the researcher tried to analyze Factors affecting project success in building
construction in Holeta town using multiple linear regression models. The Ordinary Least Square
regression analysis was employed for estimation purposes for multiple linear regression models.
Regression analysis used to explain variability in dependent variable by means of one or more of
independent or control variables and to analyze relationships among variables to answer; the
question of how much dependent variable changes with changes in each of the independent's
variables, and to forecast or predict the value of dependent variable based on the values of the
independent's variables. The primary objective of regression is to develop a linear relationship
between a response variable and explanatory variables for the purposes of prediction, assumes
that a functional linear relationship exists.

Multiple linear regressions are an extension of simple linear regression. It is used when we want
to predict the value of a dependent variable (target or criterion variable) based on the value of
two or more independent variables (predictor or explanatory variables). Multiple linear
regressions allow you to determine the overall fit (variance explained) of the model and the
relative contribution of each of the predictors to the total variance explained.

Table 4.14: Result of Multiple Linear Regression Analysis

SS df MS Number of obs = 220

F(4, 215) = 129.20

Model 39.4232992 4 9.85582479 Prob > F = 0.0000

Residual 16.4013361 215 .076285284 R-squared = 0.7062

R-squared = 0.7007

Total 55.8246352 219 .25490701 Root MSE = .2762

PP Coef. Std. Err. T P>t [95% Conf. Interval]

PC .201433 .0504955 3.99 0.000 .1019034 .3009628

1

PF .274645 .0559788 4.91 0.000 .1643075 .3849825

PI .491584 .0542975 9.05 0.000 .384561 .5986083

6

ESH .016468 .0481185 0.34 0.733 -.0783762 .1113127

3

_cons .058843 .1889527 0.31 0.756 -.3135933 .4312807

7

*** ** and * refers to significant at 1% 5% and 10% significance level,

Scb refers to success of building construction in the study area.

Source: Author’s Computation from own survey data, 2024; STATA version 14
The result of the Multiple Linear Regression model in the table 4.14 revealed that the overall
significance and fitness of the model can be checked with the value of Prop>F=0.0000 shows
that the model result is statistically significant at less than the percent significance level. This
suggests that the model has strong explanatory power. The result of R-squared is equal to 0.7062
which implies that 70.6% of changes in success of building construction are explained by the
explanatory variables included in the model. Among the 4 explanatory variables hypothesized in
the Multiple Linear Regression model, three (3) explanatory variables namely: project control,
project fund and project integration were found to be significantly affecting the construction
building preformed in the study area at appropriate significance level.

Project control (PC). The coefficient of project control to success of building construction was
positive and statistically significant at. The positive coefficient suggests an increase in project
control variable when other explanatory variables are held constant or not changed a unit change
of project control or an increase the practice of project control can result .2014 (20.1 %) increase
in success of construction building. It also shows that alternative hypothesis (Ha) is accepted.
Project controlling is the most important process in the whole process of project management
because with the help of project control, it is possible to determine where the project standing on
and show how to achieve the project goals. It is always important to find out and evaluate the
progress of the ongoing project, because it gives a true picture about the progress of the project.

In addition to the above results, project control is used to measure project performance against
project plan, so that the project objective is achieved when project control can be takes place in
the construction building. There are factors having a potential impact on time, quality and cost
during project delivery. In the construction industry, these factors impose uncertainties that
necessitate the need for effective management control. This indicate that if there is project
control practice in the industry the success of building construction can be delivered within a
given time, quality and at approved cost. Project control is highlighted as important
implementation determinants which affect project success in building construction. This finding
and the answer of interview are similar. Interview answer also states an increase in regular
monitoring, feedback evaluation can result in an increase in performance of construction
building. This finding is also corroborate with the findings of Ronoh (2020), A. Windapo (2015)
Chandra (2017) and Doreen & Kule (2016). When control practice is taken place the entire
outcomes of the project is improved. Most prevalent control practices applied to manage time
and cost by most construction firms in the study area are project control practices on planning

Project Fund (PF) The coefficient of project fund effect on the performance of construction
building was positive and significant. The positive coefficient the number of project fund
suggests a unit increase in the variable of project fund increasing the performance of construction
building in 27. 4%. It shows that the alternative hypothesis (Ha) is accepted. An increase in the
number of project fund will lead to increases in project success in building construction.

In developing country project fund is the major problem. For this reason, the project is always
delay in time of complete the quality is also not satisfy the users. But in order to perform a
project within a given time, quality and cost project fund can play a major role. To ensure
successful project performance there must be adequate financial capacity. Monetary strength of
contractors and sufficient cash flow is critical in keeping construction progress as planned.
Inadequate funds lead to time overrun and sufficient funding guarantees reasonable cash flow.
Fund that late payment of one or several certificates, underpayment or paying intermittently and
nonpayment have led to cash flow hardships to contractors. This has led to late completion of
projects, disputes in construction and even bankruptcy. Therefore, project fund is playing a vital
role in increasing performance of construction building. This result is related with the interview
answer. The well scheduled, adequacy and sufficient availability of project fund can result in
timely, at qualified and initially approved cost project success in building construction This
finding is also related with the findings of Al-Hajj (2018), Akali & Sakaja (2018), (Oynaka,
2020) and (Heran, 2018). However it is in consistent with Aggor (2017). Management should
pay attention that all departments should work together for planning the future flow of fund.
Funds management is important expressive of the desired future activities of the project given
available resources and opportunities at project takes place.

Project integration (PI): The coefficient of project integration was positive and significant. The
positive coefficient the number of project integration suggests a unit increase in the variable for
project integration increasing the number of success of building construction by .49 (49%).
Alternative hypothesis (Ha) is accepted. An increase in the number of project integration will
lead to increases in success of building construction.
 Furthermore if the stakeholders can participate in the activities of the projects through
formulation of goals and objectives, decision making and general consultation the performance
of construction building can be performed within a given time, quality and at initially approved
cost. Project structure should allow for communication and cooperation among project
participants and this should include all stakeholders. Also, when the problem is solved
immediately the construction building can be performed at predetermined objectives. Project
integration can play a major role in performance of construction building. The interview answers
gained from the respondents also support this finding. The more integration with internal
stakeholder, this means good communication and systematic problem solving can increase
success of building construction. This finding is also consistent with the findings of Endalew et
al. (2020) and Mambwe et al. (2020). Stakeholder engagement during stages of project
scheduling was applied to a great degree. Project integration managers coordinate plans and help
ensure that all processes within a project run efficiently and that team members stay on track
toward their final goals. Integration Management is the practice of making certain every part of
the project is coordinated.

External stakeholder (ESH): The coefficient of project integration was positive and in
significant. The positive coefficient the number of project integration suggests a unit increase in
the variable of external stakeholder increasing the number of success of building construction by
.016 (16%). Alternative hypothesis (Ha) is rejected. This result is in consistent with an interview
answers. In an interview answers les involvement of construction building can result in UN
satisfactory success of building construction. This means that an increase involvement of
government, banks, and competitors can result in an increase performance of construction
buildings. Additionally the result of this finding is also contradict with the findings of (Curran et
al., 2018). Expectations of external stakeholders are comparatively more pressing and critical
than their internal counterparts, even though they have no contractual relationship with the
project

4.6.1 Summary of Hypothesis testing

Hypothesis testing is the methods of testing weather claims or hypothesis regarding a population
are likely to be true. There are two types of hypothesis. Null (H0), and alternative (Ha)
hypothesis. The significance (sign) value expresses a value to accept or reject the Null
hypothesis. It is called the P value. The P value is the probably that the correlation is one just by
chance. Therefore the smaller the P value the better would be. The general rule is to accept Ha if
p < 0.5 and reject Ha if P > 0.5 (Plant, 2016). Summary of hypothesis test result were explained
in Table 4.15 bellow

Table 4.15 Summary of hypothesis test

S\N Hypothesis Sign Result

Ha There is statically significant relationship between project 0.000 Accept

control and performance of construction building

Ha There is statically significant relationship between project 0.000 Accept

fund and performance of construction building

Ha There is statically significant relationship between project 0.000 Accept

integration and performance of construction building

Ha There is no statically significant relationship between external 0.756 Reject

stakeholder and performance of construction building

Source: Researcher own survey 2024

CHAPTER 5

SUMMARY CONCLUSION AND RECCOMENDATION

5. Introduction
In this section the main findings of the study are recapped, conclusions are drawn based on the
findings, and propose recommendations based on the finding of the study for the concerned
body.

5.1 Summary
This topic summarizes findings of the study. The study employed both qualitative and
quantitative data collected through questionnaires and individual interview. The analysis began
with describing qualitative data obtained through interview and then substantiated the results
with the quantitative data collected through questionnaires

 The study targeted a total of 249 respondents. However, only 220 respondents responded
and returned their questionnaires contributing to 88.5% response rate. Respondent from
different age group, educational background, and year of experience both in the company
and as a project manager are represented in the data collected
 The result of background of respondent’s shows that the numbers of male respondents who
have been participated in responding to questionnaires were greater than that of female
respondents. This covers, 166 (75.5%) and 54 (25.5%) male and female respectively. This
indicates, in the organization more male are employed than female. Therefore focus must be
given to female employees. In terms of age of respondents, most of the respondents fall in
the range of 20-40 years which covers 203 (90.3%) of the total respondents to the which is
an advantage for the construction building since young workforce is believed to be easily
adaptive to change and motivated in project.
 Regarding educational background 102 (46.4%) of respondents had certificate and the
remaining were diploma and above academic ranks. This implies that the organization have
significant number of skilled staff. Most of the respondents from the construction building
falling below five years’ experience, which contains 60% of the respondents. Whereas,
20.9% are falling between 6-10 years.

 Additionally, 13.6% of respondents were falling between 11- 15 year experience and the left
are more than fifty-year experience. This result shows the respondent in construction
buildings are experienced and help organization to do the work with less training.
 The answer for the first explanatory variable is related with the effect of project control (PC)
on project success in building construction.The descriptive statistical analysis, shows
average mean value of Project control variables is 3.57 with standard deviation 0.827 this
shows that high agreement on project control statements. The econometric result shows that
the relationship between project control and success of construction building is direct
relationship or positive relationship. A unit increase in project control can result .2014 (20.1
%) increase in project success in building construction. When the practice of project control
 is practiced properly the success of construction building is more effective. This result is
consistent with the finding of (Maendo et al., 2018) and study. Project manager must have
to conduct the norm of monitoring and evaluation on regular basis, allocating sufficient
finances for Monitoring and evaluation activities and employing of staff with required skills
for qualified performance of projects at right time within normal cost for satisfying the
beneficiary’s.
 The respondents also presented the question related to the effect of project fund (PF) on
project success in building construction. Descriptive analysis shows that regarding project
fund statement majority of the respondents agree and strongly agree to the statements.
Statement such as government can provide the fund which can be needed to undertake
project on time (PF1) among 220 respondents 1(5%) respondents strongly disagreed,
35(15.9 %) disagreed, 67(30.5.0%) stayed neutral, 88(40%) agreed and 29(13.2%) strongly
agree. The respondents show their agreement without project fund as any project cannot be
takes place. This indicates that the relationship between project fund and project control is
direct relationship or positive relationship. A unit increase in project fund can result in 27.
4% increase project success in building construction. This finding is similar with the finding
of (Doreen & Kule, 2016). Budgeting, fundraising, funds control and funds allocation plays
a vital for successful performance of the project. Management should pay attention that all
departments should work together for planning the future flow of fund. To ensure successful
project performance there must be adequate financial capacity. Monetary strength of
contractors and sufficient cash flow is critical in keeping construction progress as planned.
Inadequate funds lead to time overrun and sufficient funding guarantees reasonable cash
flow. Fund that late payment of one or several certificates, underpayment or paying
intermittently and nonpayment have led to cash flow hardships to contractors. This has led to
late completion of projects, disputes in construction and even bankruptcy.
 Descriptive analysis of project integration (PI) shows that project integration mean value is
3.50 with standard deviation 0.80, which also means there is a high agreement for Project
integration statements. The econometric result of multiple liner regression shows that project
integration has also positive relationship within project success in building construction. An
increase in construction result can increase by .49 (49%) of construction building
performance. This finding is similar with the findings of (Endalew et al., 2020) and
 (Mambwe et al., 2020). Project integration managers coordinate plans and help ensure that
all processes within a project run efficiently and that team members stay on track toward
their final goals. Integration Management is the practice of making certain every part of the
project is coordinated. In order to perform the construction building within a given time
quality and cost, project integration is the major implementation determinants. This can be
done when stakeholders can participate in the activities of the projects through formulation
of goals and objectives, decision making, general consultation, cooperation among project
participants and solving problem immediately when the project is arise
 The analysis also made for external stakeholder (ESH). The descriptive result concerning
external stakeholder statement such as involvement of external stakeholder make the project
effective (PI1) shows that among 220 respondents 3(1.4%) respondents strongly disagreed,
30(13.6 %) disagreed, 61(27.7%) stayed neutral, 104 (47.3%) agreed and 22(10%) strongly
agree. This implies that the most respondents are agrees. Other results related to ESH also
agree within the statement of external stakeholder statements. The econometric result of
multiple liner regression revealed that from explanatory variable the external stakeholder has
also in significant relationship within performance of construction building. This result is in
consistent with the findings of (Curran et al., 2018). The external stakeholders and strategies
identified are important in any type of construction project.

5.2 Conclusion of major findings

This section concludes the finding of the study. The conclusion in this section is based on the
research questions set in Chapter One of the study and answered by the analysis made in Chapter
Four. The summary given in 5.1 of this chapter also concentrates the description made in the
chapter to facilitate conclusion of the findings given below.

 The result of data shows that Project control has significant relationship with the
performance of construction building in Holeta town. This indicate that with more
monitoring, evaluation and feedback in project success in building construction also increase
 and with decrease in the activity of project control the success of construction building also
decrease.
 Project fund is the major affect the success of construction building positively. Fund raised
on time, adequate employee salary, and appropriate control of fund result performance of
construction building effective in the study area.
 In Holeta town project success in building construction, Project integration and performance
of construction building has significant relationship. Participation of stakeholder, effective
communication and problem-solving methods make the project success in building
construction at a given time, quality and appropriate cost.
 The regression result related to external stakeholder shows that External stake holder has
insignificant relationship with performance of construction building.

5.3 Recommendation

From the findings of this study, the pursuing relevant recommendations are recapped, to help
blueprint appropriate intervention strategies to improve the performance of construction building
in the study area.

 Holeta town has to give more emphasis to project control to perform the construction
building at a given time, appropriate quality and balanced cost
 To perform construction Building properly Holeta town has to give more focus for project
fund.
 Holeta town has to give attention to project Integration to perform construction Building
 Recommendation for other researchers: the researcher was focused only on few variables to
examine this study. So other researcher has to focus on the more project implementation
determinants which have effect on project success in building construction.
 In interview answer an external stakeholder has positive relationship with success of
construction building. But the result of regression result shows, external stakeholder and
performance of construction building has low correlation and in significant relationship.
Therefore other researcher has to study by taking this variable by other methods or analysis
to check whether it has an effect on construction building or not.