CHAPTER TWO

LITERATURE REVIEW

2.1. Project Plan

Construction planning is a fundamental and challenging activity in the management and
execution of construction projects. It involves the choice of technology, the definition of work
tasks, the estimation of the required resources and durations for individual tasks, and the
identification of any interactions among the different work tasks. A good construction plan is the
basis for developing the budget and the schedule for work. Developing the construction plan is a
critical task in the management of construction, even if the plan is not written or otherwise
formally recorded. In addition to these technical aspects of construction planning, it may also be
necessary to make organizational decisions about the relationships between project participants
and even which organizations to include in a project. For example, the extent to which sub-
contractors will be used on a project is often determined during construction planning. (Tekalign
Lema,2014)

In developing a construction plan, it is common to adopt a primary emphasis on either cost

control or on schedule control. Some projects are primarily divided into expense categories with
associated costs. In these cases, construction planning is cost or expense oriented. Within the
categories of expenditure, a distinction is made between costs incurred directly in the
performance of an activity and indirectly for the accomplishment of the project. For example,
borrowing expenses for project financing and overhead items are commonly treated as indirect
costs. For other projects, scheduling of work activities over time is critical and is emphasized in
the planning process. In this case, the planner insures that the proper precedence’s among
activities are maintained and that efficient scheduling of the available resources prevails.
Traditional scheduling procedures emphasize the maintenance of task precedence’s (resulting in
critical path scheduling procedures) or efficient use of resources over time (resulting in job shop
scheduling procedures). Finally, most complex projects require consideration of cost and
scheduling over time, so that planning, monitoring and record keeping must consider both
dimensions. In these cases, the integration of schedule and budget information is a major
concern.(fiasal Ahmed, 2015)

By summarizing different definitions given by different authors Tekalign lemma gives his
definition for project planning as follows;

The extent to which timetables, milestones, workforce, equipment, and budget are specified or
estimating the effort, time, cost and staff resources needed to execute the project (Slevin and
Pinto, 1986).
It is the systematic arrangement of project resources in the best way to achieve project objective
(Faniran et al. 2000). It is described by Naoum et al. (2004) “as one of the key tools that
stakeholders use to ensure that projects are successful” describe it as the process of determining
the appropriate strategies for the achievement of predefined project objectives. It can also be
described as the process of defining project objectives, determining the framework, methods,
strategies, tactics, targets and deadlines to achieve the objectives and communicating them to
project stakeholders. PMI (2008) has a similar definition for the planning. “The Planning Process
consists of those processes performed to establish the total scope of the effort, define and refine
the objectives, and develop the course of action required to attain those objectives.”

The clients of the construction industry are primarily concerned with quality, time and cost and
yet the majority of construction projects are procured on the basis of only two of these
parameters, namely time and cost( bennet and grice, 1990). This is understandable since the
majority of project management control systems highlight time and cost, and overlook the
relative importance of quality ( huges and Williams, 1991). It is argued by Herbsman and
ellis(1991) that the major failings in traditional approaches to project delivery have been in
extensive delays in the planned schedules, and an increase in the number of claims and litigation
associated with construction projects.

In order to plan and manage a successful project, the three parameters of time, cost and quality
should be considered. Hughes and Williams (1991), in arguing for the consideration of these
three factors are the three factors in attaining the client’s objectives, propose that these factors
are the three points of a triangle and that neglecting one factor will have a corresponding
detrimental effect upon the other two. Lansely (1993) argued strongly for the importance of
studying the behavioral aspects of management in attempting to address the problems facing the
construction industry, i.e., that it is the issue of the ‘human factor’ involved in construction
projects that needs to be addressed. Rwelamila and Hall (1995) further argue that little evidence
exists of successful projects where these three factors have been balanced and there is a need to
embrace time, cost and quality management as a human activity system. (chitkara, 2009)

2.1.1 project time planning knowledge area

Project time planning knowledge area includes all planning processes that are required to ensure
a timely completion of the project The planning processes in time knowledge area are activity
definition, activity sequencing, activity resource estimating, activity duration estimating and
schedule development (PMBOK, 2004).
The time schedule is one of the most important plans in a project. The development of time
schedules should be based on the previously developed WBS. According to (Antvik & Sjöholm,
2007) in order to develop realistic and achievable schedules, it is important that activities are
sequenced accurately. The activity sequencing involves identifying logical relationships and
dependencies between the project activities (Guoli, 2010).
The scheduling of work element is the most important in planning because it is a basis for
allocating resources, estimating costs, and identifying performance and also shows the timing for
work elements and denote when specific events and milestones takes place. scheduling is Putting
the plan on calendar basis or addition of time dimension to the planning process. (Terek, 2002)

It is a timetable of work that outlines the projects work program (K.KChitkara, 2004)
Realistic construction scheduling has the following benefits (M. Peter, 1997)

 It fulfills the time objectives.

 It simplifies the project plan.
 It optimizes the resources employed.
 Construction schedules can also serve as evidence in case of construction claims
 It helps for controlling of progress.
 It helps for the implementers as a guideline for project execution

Based on (K.KChitkara, 2004)the scheduling of a project plan has to take into consideration
many variables like time, resources, and financial constraints. It is better to consider the
following factors, when developing the schedule of a project work;

 Time-The availability of time is a limiting factor in project. There are factors which have
to be considered during scheduling of working time: The schedule must account for
holidays, bad weather and the non-working periods. Most of the projects carry time
constraints so that a schedule must meet the project time constraints, in such a way that
project duration is not exceeded.
 Manpower-the non-availability of suitable labor is the main factor, which affects the
successful execution of projects. Therefore, it is very essential to consider the working
hours, overtime and other incentive while deciding the manpower schedule
 Materials-No project can ever be started without materials. However, construction
material might not be obtained at the required time. Therefore, the schedule may have to
be based on availability of such constraints.
 Machinery-The availability of machinery is normally a limiting factor. For example, in
an activity involving excavation, the schedule may specify a requirement of two dozers,
but one may actually be available. This makes the schedule not to meet the required
targets. The aim of machinery and equipment scheduling should be to find out the
minimum duration schedule in which the employment of equipment and machinery is
systematically and uniformly distributed based on its availability.
 Capital-is the core of all project activities.
The process of activity resource estimation involves determining what resources and what
quantity of each resource that will be used in the project. Required resources can be personnel,
equipment and material. This process also includes determining when each resource will be
available to the project (PMBOK, 2004).
There are in general two methods of resource estimation; top-down and bottom-up. If the project
has limited detailed information, the top down method is often used. It is carried out by the
higher management of the project and is based on experience from similar projects. The bottom-
up method is also called qualitative based estimations and involves each specific work category
in the process.

The bottom-up method is more time consuming to perform, but often generates a more accurate
result (Guoli, 2010).
The activity duration estimation should be based on the project scope, required types of
resources, estimated resource quantities and the availability of resources. The result of the
process is later used to develop schedules. To get an accurate estimation of duration it should be
carried out by a person or group who is familiar with the specific activity (Antvik & Sjöholm,
2007). The development of schedules is often carried out through the use of project management
software. If the previous estimations are made correctly the schedule development mostly
consists of aggregating the information into one document (Antvik & Sjöholm, 2007). To
develop an efficient schedule it is important that the critical chain is identified and that the lags
in the schedule is used to allocate the projects resources effectively (PMBOK, 2004).

A time schedule without control is fairly useless to the project organization. The control must be
carried out regularly and relatively often in order to detect deviations early. This makes it
possible for the project team to take necessary actions to avoid longer delays (Antvik & Sjöholm,
2007).
The schedule control and development must be an iterative process in order for the project team
to have updated schedules throughout the project (Guo-li, 2010). Estimating schedule activity
durations uses information on scope of work, required resource types, estimated resource
quantities, and resource calendars with resource availabilities. Inputs originate from the person or
group on the project team who is most familiar with the nature of the work content in the specific
schedule activity. Duration estimates are progressively elaborated, and the process considers the
quality and availability of input data.(chitkara, 2009)

2.1.2 Project Cost planning knowledge areas

Project cost planning knowledge area includes the processes of cost estimating and cost
budgeting. The main objective of cost planning knowledge area is to complete the project within
the approved budget (PMBOK, 2004).
The project budget is very important and influences all areas in both planning and execution of a
project. It is important to keep track of total costs as well as costs for different work packages in
a project (Guoli, 2010).
A professional developed budget does not only control the project costs, but also creates good
conditions for development of a well functioning cash flow in the project. The consequence of
insufficient cash flow in a project is often connected to large extra costs and delays, as there is a
high risk for a temporary stop of the whole project (Antvik & Sjöholm, 2007).
The cost estimation should be based on the project scope, the WBS and be connected to the
project plan. To reach a correct estimation it is important that each activity is estimated based on
the conditions of the execution of the specific activity. Since there often are several factors that
are uncertain in a project, a reserve cost can be assigned to activities with a low level of detailed
information or work packages with potential high financial risks (Adisa Olawale & Sun, 2010).
Cost budgeting involves aggregating the estimated costs of individual schedule activities or work
packages to establish a total cost baseline for measuring project performance. The project scope
statement provides a summary budget. However, schedule activity or work package cost
estimates are prepared prior to detailed budget requests and work authorizations. Management
contingency reserves are budgets reserved for unplanned, but potentially required, changes to
project scope and cost.(chitkara, 2009)

2.1.3 Project Quality planning knowledge areas

Project quality planning knowledge area involves all processes and activities in the project
organization to determine quality policies and control that the performed work is of a satisfying
quality. The major processes in quality management are quality planning, quality assurance and
quality control (PMBOK, 2004).
The project team must identify which quality standards those are relevant in the project in order
to perform quality control. The identified standards should be considered the baseline in the
development of a quality plan. It is important that the quality plan not only consist of required
levels of quality in different activities, but also methods to achieve the requested quality (Wei &
Yang, 2010).

2.2 Project Management

The concept of managing construction projects is deeply embedded in the traditional building
procurement system. Ireland (1983) argues that time, cost and quality are the principal feasible
objectives of the client in any construction project. Although it is claimed that time, cost and
quality are incorporated in the management of construction projects, research has shown that in
fact a time-cost bias exists.

According to Tekalign lemma on his study of ‘The role of project planning on project
performance in Ethiopia’ project management is defined as;

The application and integration of modern management and project management knowledge,
skills, tools and techniques to the overall planning, directing, coordinating, monitoring and
control of all dimensions of a project from its inception to completion, and the motivation of all
those involved to produce the product, service or result of the project on time, within authorized
cost, and to the required quality and requirement, and to the satisfaction of participants.
[(Atkinson R, 1999), (Kerzner, 2003)]
Project management deals mainly with coordinating resources and managing people and change.
Generally “Managing a project includes: Identifying requirements, Establishing clear and
achievable objectives, Balancing the competing demands for quality, scope, time and cost;
Adapting specifications, plans, and approach to the different concerns and expectations of the
various stakeholders” (Project Management Institute (PMI), 2004).
The functions of project management include defining the requirements, establishing the extent
of work, allocating the resources required, planning the execution of the work, monitoring the
progress and adjusting deviations from the plan (Munns and Bjeimi,1996). As described in
Project Management Body of knowledge there are five types of management processes:
initiating, planning, executing, controlling and closing (PMI, 2000).
These processes are described below.

 Initiating processes include defining and authorizing a project or project phase. To

initiate a project or just the concept phase of a project, someone must define the business
need for the project, must sponsor the project and take on the role of project manager.
Initiating processes take place during each phase of a project. Therefore, you cannot
equate process groups with project phases. Recall that there can be different project
phases, but all projects will include all five process groups.

 Planning processes include devising and maintaining a workable scheme to ensure that
the project addresses the organization’s needs. There normally is no single “project
plan.” There are several plans, such as the scope management plan, schedule
management plan, cost management plan, procurement management plan, and so on,
defining each knowledge area as it relates to the project at that point.

 Executing processes include coordinating people and other resources to carry out the
various plans and produce the products, services, or results of the project or phase.

 Monitoring and controlling processes include regularly measuring and monitoring

progress to ensure that the project team meets the project objectives. The project
manager and staff monitor and measure progress against the plans and take corrective
action when necessary. A common monitoring and controlling process is performance
reporting, where project stakeholders can identify any necessary changes that may be
required to keep the project on track.

 Closing processes include formalizing acceptance of the project or project phase and
ending it efficiently. Administrative activities are often involved in this process group,
such as archiving project files, closing out contracts.
In addition to planning the project effectively managing the progress is essential to achieve the
project objectives. Par karlsson writes about project time, cost and quality management as
follows;

2.2.1 Project Time Management

Project time management includes all processes that are required to ensure a timely completion
of the project. Major processes in time management are
 Activity definition
 Activity sequencing,
 Activity resource estimating,
 Activity duration estimating,
 Schedule development and
 Schedule control (PMBOK, 2004).

The time schedule is one of the most important plans in a project. The development of time
schedules should be based on the previously developed WBS. The level of work in planning,
monitoring and controlling schedules in a project is often directly reflected in the execution and
outcome of the project (Antvik & Sjöholm, 2007). In order to develop realistic and achievable
schedules, it is important that activities are sequenced accurately. The activity sequencing
involves identifying logical relationships and dependencies between the project activities (Guo-
li, 2010).
The process of activity resource estimation involves determining what resources and what
quantity of each resource that will be used in the project. Required resources can be personnel,
equipment and material. This process also includes determining when each resource will be
available to the project (PMBOK, 2004). There are in general two methods of resource
estimation; top-down and bottom-up. If the project has limited detailed information, the top-
down method is often used. It is carried out by the higher management of the project and is based
on experience from similar projects. The bottom-up method is also called qualitative based
estimations and involves each specific work category in the process. The bottom-up method is
more time consuming to perform, but often generates a more accurate result (Guo-li, 2010).
The activity duration estimation should be based on the project scope, required types of
resources, estimated resource quantities and the availability of resources. The result of the
process is later used to develop schedules. To get an accurate estimation of duration it should be
carried out by a person or group who is familiar with the specific activity (Antvik & Sjöholm,
2007).
The development of schedules is often carried out through the use of project management
software. If the previous estimations are made correctly the schedule development mostly
consists of aggregating the information into one document (Antvik & Sjöholm, 2007). To
develop an efficient schedule it is important that the critical chain is identified and that the lags
in the schedule is used to allocate the projects resources effectively (PMBOK, 2004).
A time schedule without control is fairly useless to the project organization. The control must be
carried out regularly and relatively often in order to detect deviations early. This makes it
possible for the project team to take necessary actions to avoid longer delays (Antvik & Sjöholm,
2007). The schedule control and development must be an iterative process in order for the project
team to have updated schedules throughout the project (Guo-li, 2010).
According to (PMI, 2013), “project time management is the processes required to manage timely
completion of the project”. Indeed, time management is a process that records and controls time
spent to finish each activity .

2.2.2 Project Cost Management

Project cost management includes the processes of cost estimating, cost budgeting and cost c
ontrol. The main objective of cost management is to complete the project within the approved
budget (PMBOK, 2004).
The project budget is very important and influences all areas in both planning and execution of a
project. It is important to keep track of total costs as well as costs for different work packages in
a project (Guo-li, 2010). A professional developed budget does not only control the project costs,
but also creates good conditions for development of a well functioning cash flow in the project.
The consequence of insufficient cash flow in a project is often connected to large extra costs and
delays as there is a high risk for a temporary stop of the whole project (Antvik & Sjöholm,
2007).
The cost estimation should be based on the project scope, the WBS and be connected to the
project plan. To reach a correct estimation it is important that each activity is estimated based on
the conditions of the execution of the specific activity. Since there often are several factors that
are uncertain in a project, a reserve cost can be assigned to activities with a low level of detailed
information or work packages with potential high financial risks (Adisa Olawale & Sun, 2010).
To gain financial control of the project it is important to carry out proper cost control. The pre-
calculated budget is the baseline of the financial aspects in the project but it is only with an
updated and accurate control of the costs that the budget can be used effectively in a project .
Cost control should include comparison of planned value and actual cost of each work package,
but also include analysis of the earned value for the costs spent in the project. A correct perfor
med analysis of the current financial status is necessary in order to develop forecasts of future,
and final, costs of the project (Guo-li, 2010).

2.2.3 Project Quality Management

Project quality management is the process for ensuring that all project activities necessary to
design, plan and implement a project are effective and efficient with respect to the purpose of the
objective and its performance.
Project quality management is not an event - it is a process, a consistently high quality product or
service cannot be produced by a defective process. Quality management is a repetitive cycle of
measuring quality, updating processes, measuring, updating processes until the
desired quality is achieved.
Project quality management involves all processes and activities in the project organization to
determine quality policies and control that the performed work is of a satisfying quality. The
major processes in quality management are quality planning, quality assurance and quality
control (PMBOK, 2004).
The project team must identify which quality standards that are relevant in the project in order to
perform quality control. The identified standards should be considered the baseline in the
development of a quality plan. It is important that the quality plan not only consist of required
levels of quality in different activities, but also methods to achieve the requested quality (Wei &
Yang, 2010).
The objective with quality control is to ensure that the quality plan is implemented in the
execution of the project and that established standards are met. In order to perform quality
control the project team must develop methods to monitor and control specific activities of the
project. It is important that the implementation and control of the quality plan is carried out
thoroughly, since the quality plan otherwise will be of no use to the project organization
(PMBOK, 2004).

2.2.3.1 The purpose of Project Quality Management

The main principle of project quality management is to ensure the project will meet or exceed
stakeholder’s needs and expectations. The project team must develop a good relationship with
key stakeholders, specially the donor and the beneficiaries of the project, to understand
what quality means to them. One of the causes for poor project evaluations is the project focuses
only in meeting the written requirements for the main outputs and ignores other stakeholder
needs and expectations for the project. Quality must be viewed on an equal level with scope,
schedule and budget. If a project donor is not satisfied with the quality of how the project is
delivering the outcomes, the project team will need to make adjustments to scope, schedule and
budget to satisfy the donor’s needs and expectations. To deliver the project scope on time and on
budget is not enough, to achieve stakeholder satisfaction the project must develop a good
working relationship with all stakeholders and understand their stated or implied needs.

2.2.3.2 Project Quality characteristics

All material or services have characteristics that facilitate the identification of its quality. The
characteristics are part of the conditions of how the material, equipment and services are able to
meet the requirements of the project and are fit for use by the beneficiaries. Quality
characteristics relate to the attributes, measures and methods attached to that particular product
or service.
 Functionality is the degree, by which equipment performs its intended function, this is
important especially for clinical equipment, that the operation should be behave as
expected.
 Performance, its how well a product or service performs the beneficiaries intended use.
A water system should be designed to support extreme conditions and require little
maintenance to reduce the cost to the community and increase its sustainability.
  Reliability, it’s the ability of the service or product to perform as intended under normal
conditions without unacceptable failures. Material used for blood testing should be able
to provide the information in a consistent and dependable manner that will help identify
critical diseases. The trust of the beneficiaries depend on the quality of the tests

 Relevance, it’s the characteristic of how a product or service meets the actual needs of
the beneficiaries, it should be pertinent, applicable, and appropriate to its intended use or
application
 Timeliness, how the product or service is delivered in time to solve the problems when
its needed and not after, this is a crucial characteristic for health and emergency relief
work
 Suitability, defines the fitness of its use, it appropriateness and correctness, the
agriculture equipment must be designed to operate on the soul conditions the
beneficiaries will use it on.
 Completeness, the quality that the service is complete and includes all the entire scope
of services. Training sessions should be complete and include all the material needed to
build a desired skill or knowledge
 Consistency, services are delivered in the same way for every beneficiary. Clinical tests
need to be done using the same procedure for every patient.

2.3 Project Performance

Success of construction project depends on its performance .A construction project is considered

successful when it completed on time, without cost overruns with required quality and
customers satisfaction. (A. Omran.2012)
2.3.1 Factors Affect Project Performance

There are many factors affects performance of construction project the most common factors
affecting project performance are: Wuellner (1990),
 Improper planning
 Improper designing
 Site management
 Decision making
 Construction methods
 Shortage of labor and technical personnel
 Quality and shortage of materials
 Construction mistakes and defective work
 Productivity

2.3.2 Performance Measurement

Sandanayake, Y. G. and Thurairajah, N. described project performance as;

Performance measurement (PM) is an integral part of management and defined as a process of

quantifying both the efficiency and effectiveness of an action (Neely et al., 2005). Some of the major
concerns of performance measurement include
 “What to measure?”,
 “Which measures are used?”,
 “How to measure?” and
 “How to interpret results?” (Sandanayake and Oduoza, 2007).
Traditionally performance has mainly been measured from the financial perspective. Therefore
traditional management accounting systems were highly criticized due to their dysfunctional
behavior (Ridgway, 1956). This dissatisfaction led to the development of “balanced” or “multi-
dimensional” PM frameworks in the late 1970s (Bourne et al., 2000) stated organizations that
rely on financial measures alone, can identify their past performance but not what contributed to
achieve that performance. Further, Kagioglou et al. (2001, pp 86) emphasized “in addition to
measuring „what‟ the performance of an organization was, „how‟ that performance was
achieved should also be identified on an on-going basis”. This made aligning the leading
indicators for PM concurrently with the lagging indicators.

Cain (2004) identified PM as the first stage in any improvement process that benefits the end
users as well as the organizations. Therefore Kulatunga et al. (2007) emphasized that PM is
important for organizations to evaluate its actual objectives against the predefined goals and to
make certain that they are doing well in the competitive environment. Traditionally, PM in
construction is approached in two ways: in relation to the product as a facility and in relation to
the creation of the product as a process (Kagioglou et al., 2001). Although a similar set of
process stages is involved in every project, the construction industry is a project-oriented
industry where each project is unique and can considered as a prototype (Wegelius-Lehtonen,
2001). Therefore, measuring construction performance focuses more on projects rather than the
construction organizations (Kagioglou et al., 2001). The researchers and the industrial experts
agree that the lack of appropriate performance measurements have become one of the principle
barricades to promote improvements in the construction industry (Alarcon and Serpell, 2001).

Tekalign lemma put criteria for evaluating successes or failure of project by summarizing
different studies as;
There are different criteria for evaluating project performance. Project success was measured on
the bases of time, cost and quality (Navarre and Schaan, 1990). (Atkinson, 1997) identified
these three criteria as the ‘Iron Triangle’. He further suggests that while some different
definitions about project management have been made, t he criteria for success, namely cost,
time and quality remain and are included in the actual description. Apart from these three basic
criteria (Pinto and Pinto, 1991) supported that measures for project success should also include
project psychosocial outcomes, the satisfaction of interpersonal relations with project team
members. The inclusion of satisfaction as a success measure can also be found earlier in the
work of Wuellner (1990), Kumaraswamy and Thorpe, (1996) included a variety of criteria in
their study. These include meeting budget, schedule, and quality of workmanship, client and
project manager’s satisfaction, transfer of technology, friendliness of environment, health and
safety. Different literature suggests that different criteria were hypothesized (offered) by
different researchers.
Therefore, this study chooses project time, cost, quality, and customer satisfaction as the criteria
for project evaluation. This is principally due to that the cost, time, and quality metrics are
objective (unbiased) in nature, allowing a direct comparison of projects with different types,
scopes, and sizes across different industries.

2.3.3 progress Monitoring and Control

In the project planning stage, a means of monitoring and controlling the progress of the projects
must be established. Serious thought about how to track the projects evolution and keep the work
flow on schedule is fundamental to this phase. Project monitoring is the gathering of information
to determine the current state and progress of the project in relation to its expected state and
progress (Navon and Goldschmidt, 2003).
We track a project to make sure that it’s following our plan that it meeting its schedule, cost, and
quality targets. This helps to detect problems early, when there still time to do something about
them. If we don’t track our project, we can’t control it. And, if a project isn’t being controlled,
it’s out of control.

For cost control on a project, the construction plan and the associated cash flow estimates can
provide the baseline reference for subsequent project monitoring and control. For schedules,
progress on individual activities and the achievement of milestone completions can be compared
with the project schedule to monitor the progress of activities. Contract and job specifications
provide the criteria by which to assess and assure the required quality of construction. The final
or detailed cost estimate provides a baseline for the assessment of financial performance during
the project. To the extent that costs are within the detailed cost estimate, then the project is
thought to be under financial control. Overruns in particular cost categories signal the possibility
of problems and give an indication of exactly what problems are being encountered. Expense
oriented construction planning and control focuses upon the categories included in the final cost
estimation. This focus is particular relevant for projects with few activities and considerable
repetition such as grading and paving roadways.
For control and monitoring purposes, the original detailed cost estimate is typically converted to
a project budget, and the project budget is used subsequently as a guide for management.
Specific items in the detailed cost estimate become job cost elements.
Expenses incurred during the course of a project are recorded in specific job cost accounts to be
compared with the original cost estimates in each category. Thus, individual job cost accounts
generally represent the basic unit for cost control. Alternatively, job cost accounts may be
disaggregated or divided into work elements which are related both to particular scheduled activities
and to particular cost accounts. ( faisal ahmed, 2015)

2.4 Project Failure And Success

It is not uncommon to see a project falling to achieve its mission of creating a facility within the
specified cost and time hardly few projects get completed in time and within original costs. The
importance of project planning on project success and failure is discussed on Tekalign lemma’s
study as follows;

2.4.1 Causes For Project Failure

There are different causes for project failure or to fall short of realizing its full potential. It is
major and most common problem faced by many projects and become abundant on some stage
of its completion.( Jeffery k. pinto & Samuel j. mantel JR)
 Unclear or shifting goals

Each project must meet a specific objective and if this objective isn’t clearly defined or changes
along the way, the team will have difficulty achieving it. For example, if a ship does not know its
destination, it risks getting lost at sea and using all of its resources just to stay afloat.

So, start by establishing precisely what the objective of your project is by using the SMART
method (Specific, Measurable, Acceptable, Realistic and Time-bound). The team will then know
in which direction to go and will be able to do everything to achieve the goal set on time. Your
employees will also be more motivated and more involved in the project by knowing where they
are going.
  A communication problem

Lack of communication is a recurring problem when it comes to project failure. If team members
do not communicate with each other, how do you know who is doing what or who needs help to
complete their task on time? Communication and information sharing are essential elements in
the success of a project. In addition, working together facilitates teamwork and develops
creativity, building strong links and developing trust between employees. In the end, your team
works in a good atmosphere and becomes more productive. What a bonus!

 A lack of planning

Without basic planning, you run the risk of seeing your project fall behind schedule. In addition
to missing the deadline, you will experience budget overruns, and if your project doesn’t reach
the market on time, the business can miss opportunities, lose customers, and see sales decline.

It is not necessary to plan your project in great detail, it can actually be counterproductive, but it
is essential to define the key dates for when each stage of the project should be completed.
Systematically provide room for flexibility in the event of unforeseen events, it is better to plan
longer and finish early than the other way around.

 Lack of risk management

In project management, zero risk does not exist, and few projects go smoothly. Bankruptcy of a
supplier, shortage of raw materials, resignation of a team member, various breakdowns, etc., if
you have not thought about a solution upstream, such a situation can quickly turn into disaster

and precipitate the project towards failure. Hence the need to be prepared to face any problems
that may arise during the course of the project. For this, it is essential to set up risk management
from the start of the project. Identify all the potential risks to better prevent, limit or even
eliminate them by considering the preventive and corrective actions that can be implemented if
they arise.

 A lack of follow-up

The project manager must follow the completion of his project and the execution of the tasks
closely in order to make sure that everything takes place in the best possible conditions. If a
problem arises, they are therefore able to intervene immediately. The success of the project
depends on it, as does their reputation and career. It is therefore essential to check that:

 The project is progressing towards the final objective.

 All intermediate objectives have been achieved.

 No task is delayed.

 The budget and deadlines are respected.

 Resources are used correctly and efficiently.

 Do not hesitate to use the various monitoring tools that exist and

update them daily.

 Too many or unsuitable tools

There are a wide variety of tools to help you manage a project effectively, however, some tools
are not flexible enough or are too complex, and instead of helping you, they slow you down. As
a result, you waste time and money on software that you don’t or little use.

Project management software such as Wimi is the ideal tool. It allows you to easily follow the
progress of the project, promote collaboration between team members, centralize all your
documents, and much more. Best of all, you can try it out for free to see if it’s right for yo

 Context and timing issues

If everything went well during the course of your project, it sometimes may be due to the context
in which the project is complete that is the main cause of failure. A project can fail because now
is just not the right time. For example, this was the case of the Renault Vel Satis (2002), a car
with an overly modern design that did not appeal to customers, or even the Google Glass (2013),
its high-tech glasses that were to transform the way we use technology. A product that is too
innovative, a competitor with a head start, or a sudden crisis in the target market, and your
project may fall apart.
Mostly, such problems result from a lack of planning. Annie, I. Anton (2003) said, “If you don’t
know where you are going, you will probably end up somewhere else.” A complex project will
likely fail without a plan. Annie, I. Anton (2003) again stated that for who wants to satisfy
customers’ needs, that plan is a complete, consistent, and correct expression of the stakeholders’
requirements. Planning can be a good way to achieve a goal, because without planning, we do
not have a specific path to follow and our efforts can leads us towards undesired objectives or
results. Without adequate planning, it is difficult to really understand what it will take to
complete a project successfully.
Planning is used to put the project back on track if it deviated from the plan and also it is used to
control a project and establishing a baseline with which to gauge progress. Without planning,
there is no control. (Guru.Prakash.P) Bigelow (2001:1) claims that planning is the most
important yet most undervalued element of project management. It is perceived as being the map
that sets the direction for a project. It is critical to the project management process because it
forms the basis for the project scope, schedule, resources, quality, risk and integration. Griffith
and Gibson (1995) and Griffith et al. (1998) in their research have shown that greater project
planning efforts lead to improved performance on projects in the areas of cost, schedule, and
operational characteristics.

The study by (Milis & Mercken, 2002) provides much evidence that a well-set project plan plays
a vital role in project success. For any project, Keider’s research indicated that the lack of good
project planning is ranked as the most likely single cause of project failure (Keider, 1984).
Effective planning is more than just setting up an elaborate plan at the start of a project.
According to Kerzner (2006) the primary driver behind project planning is uncertainty reduction
which was supported by Zwikael and Sadeh (2007).Planning allows the project team to address
different factors such as quality, cost, schedule, performance and supportability that determine
project success or failure (Akinsola, 1997).

Jeffery k. pinto & Samuel j. mantel JR writes about project failures on their study of ‘The cause
of project failure’ as
Even though it is difficult to define exactly what constitutes a failed project, in examining a
variety of failed projects, there appear to be some common aspects that suggest certain
characteristics are strongly related to perceived project failure.
Based on an examination of the literature and interviews with experienced project managers,
three distinct aspects of project performance (outcome) were identified as benchmarks against
which to assess the success or failure of a project. These aspects are:
 The implementation process itself;
 The perceived value of the project; and
 Client satisfaction with the delivered project. The first of these aspects is primarily
concerned with the internal efficiency of the project implementation process. The
second and third aspects of project performance are concerned with the project’s
external effectiveness.

The success or failure of the implementation process itself is an internally-oriented measure of

the performance of the project team, including such criteria as staying on schedule, on budget,
meeting the technical goals of the project, and maintaining smooth working relationships within
the team and parent organization. The key issue for the implementation process is efficiency.
The second aspect of the assessment of project success or failure is the perceived quality of the
project and includes the project team’s perceptions of the value and usefulness of the project’s
deliverables. This assessment places emphasis on the project’s potential impact on users. This is
the project team’s judgment about how good a job they did for the client.

The project team’s assessment of the project may or may not agree with the client’s assessment.
Client satisfaction, the third aspect of project performance, is an external measure of
effectiveness, made by the client. Note that all three of the performance measures are biased; that
the underlying criteria on which they are based almost certainly contain conflicting elements
(and probably will not be consistent across time); and that the precedence among the measures
will shift as the team, parent firm, and client respond to internal or external pressures. Also note
that this welter of confusion and uncertainty reflects the reality in which assessment of project
performance exists. ( Zwikael and Sadeh (2007).
2.5 Impacts of mismatching of project performance with plan
 The client looses the benefit which gained from the project if it were performed as per the
plan. The benefit is determined by the project cost, time and quality. The extension of
time incurs additional cost over the budgeted and it also decreases the quality of the
product. The inferior quality building will not live long up to the design year.
 The contractor will incur extra cost for the extra time he/she take to perform the work
which he/she is responsible for.
 Claims and disputes arise between the parties(contractor, consultant and client) when the
performance of the project is poor because of un acceptance of responsibility for poor
work.
 The poor performance of building projects in sodo town leads not to contribute its
allotment to the development of construction industry.
REFERENCE
1. Determining the needs of planning and budgeting management for construction projects,
FAISAL AHMED ABDULLA 2015

2. project management for construction, CHITKARA 2009

3. Erfan Hoseini Project Time Planning, 2015
4. The role of project planning on project performance in Ethiopia, Tekalign Lemma March
2014
5. Project management in Sweden & Ethiopia (potential improvements in project
management methods) (par karlsson 2011)
6. Building project performance evaluation model (Wadugodapitiya, R. R. M. M. K.,
Sandanayake, Y. G. and Thurairajah, N.)
7. The causes of project failure (Jeffery k. pinto & Samuel j. mantel JR)
8. Construction management process systems (CMPS)

9. Cost management focus on cost controlling in cost efficient housing projects