Construction Project Management Knowlegde Area Experience in Ethiopian Defense Construction - 2
Construction Project Management Knowlegde Area Experience in Ethiopian Defense Construction - 2
ENTERPRISE
BY
construction management
June 2019
Declaration
I hereby declare that this thesis entitled “Construction Project Management: experience In
Ethiopian Defense Construction enterprise” was composed by myself, with the guidance of
my advisor that the work contained herein is my Owen except where explicitly stated otherwise
in the text, and that this work has not been submitted, in whole or in part for any other degree or
processional qualification.
ii
Certification
This is to certify that the thesis prepared by Tesfahun Gebremariam Gebreslassie entitled “
and submitted in fulfillment of the requirements for the degree of master of business
administration in construction management complies with the regulation of the university and
meets with the accepted standards with respect to originality and quality.
______________________ ___________________________
______________________ ___________________________
______________________ ___________________________
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ABSTRACT
The objectives of the study were to assess construction project management knowledge areas
experience in Ethiopia defense construction enterprise. To achieve the overall objective of the
study assess ten basic areas that can affect the enterprise construction project management
practice such as, construction process management,scope, cost management, time,quality, risk
area, communication management, procurement management, human resource and safety. To
achieve the relevant data the study collect data from several construction professionals that
accomplish project tasks of the enterprise using clustered sampling technique this is because to
include construction management professionals from several related departs. In this ways the
study take 119 professionals as a sample of the study and the collected data using questionnaire
and semi – structured interviewed analyzed using mixed approach of descriptive survey design.in
th Based on the methods the major finding of the study implied that, DCE as organization and its
project are introduced construction project management Knowledge areas implemented and the
actual performance from DCE 2010 and 2011 E.C annual project reports; accordingly, the
organization implied a god activities in some areas of construction project management section
such as, in a good performance of in using Construction Project management process, scope
management, procurement and human resources management however, the enterprise were
weak in implementing, Construction Project time management, cost management, time, quality
and risk managements. Based on the challenges of the findings of the study recommend that, in
order to enhance and improve time and cost performance of projects. Planned time for project
implementation should be more suitable for practice. Time needed to implement variation orders
and to rectify defects should be estimated and scheduled without affecting project time
completion. Having regular meeting among project participants can also enhance performance.
Construction organizations should have different incentive systems in order to improve overall
performance. In addition, they should have continuous safety training and meeting in order to
apply safety factors and achieve better performance.
Key terms: - projects process, scope, Cost, risk, procurement, quality, safety process
management,HRM and communication management.
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ACKNOWLEDGMENT
I owe many thanks to many people and a few institutions. Foremost forwarding of general thanks
for all those who have positively contributed to the work, I think it is appropriate to mention a
few by name: Employee of Defense Construction Enterprise, and my Advisor Dr.Deribsa Abate
in addition my parents and siblings for your significant imprints on who I am and unwavering
support throughout this thesis work.
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LIST OF ACROMYS
DCE = Defense Construction nterprise
CM=Construction management
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Table of contents
1. Declaration…………………………………………………………………………………..... ii
2. Certification…………………………………………………………………………….……. iii
3. Abstract……………………………………………………………………………………… iV
4. Aknowledgment……………………………………………………………………………......V
5. List of Acromys…………………………………………………...…………………………VI
Chapter One…………………………………………………………………….…………………1
1.1 Back ground of the study………………………………………………………………..……..1
1.2 Statements of the problem…………………………………………...………………………..4
1.3 Research question……………………………………………………………………………...5
1.4 Objective of the study………………………………………………………………...…..…....6
1.4.1 General objective……………………………………………………………...…...….6
1.4.2 Specific objective……………………………………………………….………...…..6
1.5 Scope of the study………………………………………………………..…………………....6
Chapter Two……………………………………………………………………………………….8
Chapter three……………………………………………………………………….…..………....47
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3.2 Data sources and instruments of data collection……………………………………………..48
3.3 Sample and sampling techniques……………………………………………………….…….48
3.4 Methods of data analysis………………………………………………………………….….49
3.5 Results of pilot test………………………………………………..………………………….50
3.6 Ethical consideration……………………………………………………..…………………..51
Chapter four……………………………………………………………………..………….…….52
4. Data analysis and Interpretation…………………………………………………………….…….52
4.1 Construction project management expression…………………………………………….….54
4.2 Construction project processes management……………………………………………..…..55
4.3 Construction project scope management……………………………………………...…...…57
4.4 Construction project time management…………………………………………………..…..59
4.5 Construction project cost management……………………………………………...…….…61
4.6 Construction project quality management……………………………………………………63
4.7 Construction project human resource management……………………………………….....64
4.8 Construction project communication management…………………………………………..66
4.9 Construction project risk management…………………………………………………….....68
4.10 Construction project procurement management…………………………………………70
4.11 Construction project safety management…………………………………………….......72
Chapter five………………………………………………………………………………………..74
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List of Figures
1. Figure One……………………………………………………………………………….55
2. Figure Two……………………………………………………………………………….57
3. Figure Three……………………………………………………………………………...59
4. Figure Four………………………………………………………………………………62
5. Figure Five……………………………………………………………………………….63
6. Figure Six………………………………………………………………………………..65
7. Figure Seven……………………………………………………………………………..67
8. Figure Eight…………………………………………………………………………..….69
9. Figure Nine…………………………………………………………………………..…..71
10. Figure Ten……………………………………………………………………..…………72
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List of Tables
1. Table one…………………………………………………………………………....26
2. Table two…….……………………………………………………………………...49
3. Table Three…………………………………………………………………………51
4. Table Four…………………………………………………………………………..52
5. Table Five……………………….………………………………………………….68
6. Table six…………………………………………………………………………….70
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CHAPTER ONE
The construction industry is an important part of any economy. Infrastructures delivered by the
Construction industry and its key allies affect economic growth. Construction, which has the
responsibility of creating, defining and maintaining the built environment within which most
other social and economic activities take place is one of the most important ways in which
societies create new values. The industry provides society with delivery mechanisms for many
aspects of economic, social, political, environmental needs making its products essential to
Though multifold its socio-economical contributions and its significance in affecting the
livelihood of many, generally, the delivery process of construction is accused for its inefficiency
and ineffectiveness. Studies in various countries show that, compared to other industries,
construction is known for non-optimal performance (Thomas 2003).These studies concluded that
the fragmented nature of the industry, the sequential delivery mechanisms often employed, the
often uncooperative and sometimes adversarial supply chain relationships, the industry’s
inability (slowness) to adopt new technologies and management styles are said to have inhibited
Though multifold its socio-economical contributions and its significance in affecting the
livelihood of many, generally, the delivery process of construction is accused for its inefficiency
and ineffectiveness. Studies in various countries show that, compared to other industries,
construction is known for non-optimal performance (Olatunji & Owoeye, 2014). Various
attempts have been made to combat construction’s inefficiencies and ineffectiveness For
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example, different delivery mechanisms such as the design-build, construction management have
been adopted as means of counteracting the problems of the sequential design-bid-build delivery
system; partnering form of supply chain relationships have been recommended and implemented
as a means of reducing the adversarial relations between the parties involved in construction
delivery. Nevertheless, though each of these strategies has attempted to address the challenges in
the industry, they have not taken a holistic process improvement approach (PMI, 2003) and the
According to Usman, And Sani, (2015) project is a temporary endeavor undertaken to create a
unique product, service, or result. The temporary nature of projects indicates that a project has a
definite beginning and end. The end is reached when the project’s objectives have been achieved
or when the project is terminated because its objectives will not or cannot be met, or when the
need for the project no longer exists. A project may also be terminated if the client (customer,
sponsor, or champion) wishes to terminate the project. Most projects are undertaken to create a
lasting outcome to the user or customers. For example, a project to build a national monument
will create a result expected to last for centuries. Projects can also have social, economic, and
environmental impacts that far outlive the projects themselves. Construction management and
industry.
Generally, performance dimensions may have one or more indicators, and could be influenced
by various project characteristics. For example, Dissanayaka and Kumaraswamy (1999) found
that project time and cost performances get influenced by project characteristics, procurement
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characteristics, design team characteristics, and external conditions. Similarly, Iyer and Jha
(2005) identified many factors as having influence on project cost performance, these include:
Project manager's competence, top management support, project manager's coordinating and
leadership skills, monitoring and feedback by the participants, decision- making, coordination
among project participants, owners' competence, social condition, and economic condition.
Currently construction industry become back bone of the country due to highly developed in
every corner of Ethiopia. The construction sector has created highly employment opportunity as
contractor, as consultancy and as labor. Therefore this sector has to manage and developed in
continue consistency of the sector. Defense Construction enterprise /DCE/ is one of the public
Enterprise participate in the construction sector as contractor by building road, dam, irrigation
and different buildings over all every corner of the country. Based on the Business Process Re-
engineering (BPR) that was conducted in 2010 Defense Construction Enterprise (DCE) has been
Enterprise (KC2MPE) as key activity to bring about organizational change at all level.
regulation NO 185/2010 as public enterprise and the Ministry of National Defense as supervising
Vision፡ Becoming the leading and most sought after company in our continent in the
standards
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Mission: Besides satisfying the infrastructural needs of National Defense with competent human
skill and modern construction technology, the enterprise strives to use its extra capacity in the
most sought after construction work performer at high level of quality, cost and time while
According to DCE report of 2018 and contract agreements of the projects with its clients
indicates strives to accomplished its objective and goals by considering its vision and Mission of
the enterprise by undertaking different 10 road projects and 17 building projects with the cost of
,irrigation and real estate projects with the cost of birr 5,481,596,110 .
In Ethiopia construction project management service has not got attention by Construction
sector and even by the government. Marketing studies has focused on classical management
theory more than modern construction management practice. Therefore there are faces Failure in
projects due to haven’t practice adequate modern construction project management knowledge
area strategy which are due to lack of awarnes in construction Project management knowledge
contractors and consultancy perspective, then various defects occurred in the construction
project sectors. Hence the statements of the problem of this study was assess DCE’s
construction project management knowledge areas are not practice in construction Project
administration strategy .in addition to this the study was concern on the role of construction
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project management member in implementing Project contract administration by practicing the
Project management knowledge areas whether to success or failure of DCE. This contractor
generates income by giving different services like constructing building, road, bridge, to its
construction management and contract administration activities would raise the questions to be
answered the reasons to delay almost all projects in DCE. for example according to report of
2010 E.C perfprmance report of DCE projects indicates the plan was to implemented birr
4,751,400,000 but for total 30 projects performance was only birr 3,438,000,000 the difference
was above 1billion birr, then it may be related construction project management knowledge
areas:
project management and contract administration planning for the long and short coming
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1.4 objective of the study
The objective of the study was to assess the awarnesof construction project management
To identify the knowledge area and skill of the DCE management and Professional
science.
To know the main reason of increasing extra construction project costs which were
management performances.
This research concerns on the construction industry especially which related to defense
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1. The study was limited to the construction project management and contract
2. All the stake holders in the construction sector which participate as contractors,
consultancy, t who works with Defense construction Enterprise would been considered
in the research; hence the construction project management and contract administration
of the industry from the clients, consultancy, and contractor organization perspective
could be totally different, Therefore the study was covered about 27 projects of by
distributing the same questioneries then 108 from 27 projects, 6 From head office
management,3 from consultancy resident engineers and 2 from board member of DCE
which are work as stake holder with DCE in different construction projects.
3. The study was covered only Ethiopian Grade -1 contractor (the highest level) Defense
design enterprise (D.C.D.E) in different Projects. Thus, the research result was taken as
construction Enterprise.
4. Some of the projects previously finished by DCE and transferred to client would been
covered in the research in order to assess its services in the users output of those projects.
5. Defense construction enterprise (DCE) as public enterprise were assesed in terms revenue
produce and expense occurred to create this income within the last 6 year and contribute
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CHAPTER TWO
2. Literature Review
Introduction
This chapter presents what other scholars have written about the issues of construction project
management effective practice and challenges. Therefore, the study tried to indicate some of the
relevant theories, models related to construction project management knowledge areas as well as
empirical studies.
On the theoretical part, the study provides theories and models of constriction Project
Project Risk Management, Project Procurement Management and project safety management.
coordination, and control of a project from beginning to completion. CPM is aimed at meeting a
client's requirement in order to produce a functionally and financially viable project. The
construction industry is composed of five sectors: residential, commercial, and heavy civil,
industrial, and environmental. A construction manager holds the same responsibilities and
completes the same processes in each sector. This may include different types of equipment,
materials, subcontractors and possibly locations. According to James p. Lewis (2007) project
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management is application of knowledge, skills, tools and techniques to project activities to
achieve project requirements. Project management is accomplished through the application and
and controlling, and closing” (PMBOK 2004, p. 8). According PMI(2003) in construction
extension states project management knowledge area which is considering construction project
management exceeding the nine knowledge areas are Project Integration Management processes,
Project Scope Management, Project Time Management, Project Cost Management, Project
Management, Project Risk Management, Project Procurement Management and project safety
management.
tools, and techniques to project activities to achieve project requirements. Project management is
accomplished through the application and integration of the project management processes of
In the same way Harold kerzener (2009) discuses about the Successful project management in
his book can then be defined as having achieved the project objectives in terms of within time,
within cost at the desired performance/technology level, while utilizing the assigned resources
effectively and efficiently as well as accepted by the customer. According to James P. Lewis
(2007) Project is a temporary endeavor undertaken to produce a unique product, service or result
This means that project is done only one times, because it has specific time, cost, a clearly
defined scope of work to be done. Dr Getachew T (20014) in his course module have stated
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project management in his course module as relatively modern approach and it is characterized
by new methods of restructuring management and adapting special management techniques with
the purpose of obtaining better control and use of existing resources. The project management
approach requires a departure from the traditional business organizational form which is
basically vertical and which emphasizes a strong superior subordinate relationship. There are a
lot of similarity between project management and general management, but there are enough
Projects are more schedule intensive than most of the activities that general managers handle.
Mostly the people in the project team do not report directly to project manager. Instead they do
According to PMBOK guide (2000) edition say, Project integration management includes the
processes required to ensure that the various elements of the project are properly coordinated. It
involves making tradeoffs among competing of objectives and alternatives to meet or exceed
stakeholders needs and expectations. It goes on to describe the processes required ensuring that
various elements of the project are properly coordinated and lists three major processes are
Project plan development, project plan execution and integrated change control. All of these
apply to projects in the construction industry with only slight additions or modifications. The
need to have all elements integrated and for them to quickly reflect changes in the project plan as
As John P.muldoon (2014) in his 5Th edition PMBOK summarized book says the project kicks
off with develop project charter. This is the processes that develop a document that formally
authorizes the project and gives the project manager authority to use organizational resources.
The key benefit is that we get a well defined project start, an official record and away for senior
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management to formally commit to the project. For external projects, a contract takes the place
developed and always before planning starts. The charter should be written by the sponsor.
Projects are initiated by those external to the project. Project Integration Management is the
practice of making certain every part of the project is coordinated. Project management is an
integrative undertaking requiring each project process to be appropriately aligned and connected
with the other processes to facilitate coordination. The project manager is responsible for this
coordination. Corporate supported project management tools must be used to prepare the project
plan, record, manage and report project information. The Project Management Plan includes
communication, stakeholders, risks and procurements. Once compiled the plan is placed under
control and forms the basis for monitoring project work. In project integration processes there
are five steps implemented from Initiating-planning- executing- monitoring and controlling-
closing in the project closure occurs at transition points, such as design accepted and processed
for bidding, or construction complete, final acceptance of product and all financial obligations
closed.
According to Kim Heldman (2009) scope is collectively the product, service, or results of the
project. The purpose of the project scope statement is to document the project objectives,
deliverables, and the work required to produce the deliverables so that it can be used to direct the
project team’s work and as a basis for future project decisions. The scope statement is an
agreement between the project and the project customer that states precisely what the work of the
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project will produce. Simply put, the scope statement tells everyone concerned with the project
Since the scope statement serves as a baseline for the project, if questions arise or changes are
proposed later in the project, they can be compared to what’s documented in the scope statement.
Making change decisions is easier when the original deliverables and requirements are well
documented. You’ll also know what is out of scope for the project simply because the work isn’t
documented in the scope statement (or conversely, deliverables or other elements are
documented and noted as being specifically out of scope). The criteria outlined in the scope
statement will also be used to determine whether the project was completed successfully.
Kim heldman(2009) sates that project scope statement have to include product scope description,
product acceptance criteria, project deliverables, project exclusions, project constraints and
project assumptions.
Product scope description: it describes the characteristics product, service, or results of the
project. If the product scope description is contained in the project charter, you can reference the
project charter in the project scope statement or you can copy and paste the information from the
project charter into the scope statement. It won’t hurt anything to have it in both places and will
Product acceptance criteria: It includes the process and criteria that will be used to determine
whether the deliverables and the final product, service, or results of the project are acceptable
and satisfactory. Product acceptance criteria help you describe project success because it defines
the specifications the deliverables must meet in order to be acceptable to the stakeholder.
Acceptance criteria might include any number of elements, such as quality criteria, fitness for
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use, and performance criteria. This component should also describe the process stakeholders will
items that must be produced to consider the project or project phase completed. Deliverables
should be specific and verifiable. For example, one of your deliverables might include widgets
with a three inch diameter that will in turn be assembled into the final product. This deliverable,
deliverables. As in this example, if you are assembling a new product with many parts, each of
Project exclusion: Project exclusions are, as you’d guess, anything that isn’t included as a
deliverable or work of the project. You’ll want to note the project exclusions in the project scope
statement so that you can continue to manage stakeholder expectations throughout the project.
Project constraints: are anything that either restricts the actions of the project team or dictates
the actions of the project team. Constraints put you in a box. (I hope you’re not claustrophobic.)
As a project manager, you have to manage to the project constraints, which sometimes require
creativity.
Project assumption: for the purposes of project management, are things you believe to be true.
For example, if you’re working on a large construction project, you might make assumptions
about the availability of materials. You might assume that concrete, lumber, drywall, and so on
are widely available and reasonably priced. You might also assume that finding contract labor is
either easy or difficult, depending on the economic times and the availability of labor in your
locale. Each project will have its own set of assumptions, and the assumptions should be
identified, documented, and updated throughout the project. It’s essential to understand and
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document the assumptions you’re making, and the assumptions your stakeholders are making,
about the project. It’s also important to find out as many of the assumptions as you can up front.
Projects can fail, sometimes after lots of progress has been made, because an important
The PMBOK( 2000) edition defines project scope management as the processes required to
ensure that the project includes all the work required, and only the work required ,to completed
the project successfully by describing five process are initiation, scope planning, scope
Initiation is the processes of formally recognizing that a new project exists or that an existing
project should continue in to its next phases and it is important that this processes is repeat for
each phase. on the other side typical reason for initiation project market demand, business need,
Project scope planning is the processes of progressively elaborating and documenting the project
work that produces the product of the project. Project scope planning starts with the initial inputs
of product description, the project charter and the initial definitions of constraint and
assumptions, For construction project to be successful scope planning should involve all the key
players at all levels, the owner, consultancy, the general contractor, sub contractors and
suppliers. Although each will only be involved in their respective areas, success increases with
interactive involvements.
The scope of the project is concerned with what exactly the project will deliver and the function
of the project scope management is to defined and control the work required producing these
deliverables through the processes six scope project managements plan scope management,
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collect requirement, define scope, create work break down structure, validate scope and control
scope.
James P.lewis (2007) defined to Project time management as a bad choice of terms, as time
management implies personal efforts to manage one’s time. For projects, it refers to developing a
schedule that can be met, then controlling work to ensure that this happens! It’s that simple.
Because everyone refers to this as scheduling, it should really be called schedule management.
On the other side project time management explain by Kim Heldman (2009) This Knowledge
Area is concerned with estimating the duration of the project plan activities, devising a project
schedule, and monitoring and controlling deviations from the schedule. Collectively, this
Knowledge Area deals with completing the project in a timely manner. Time management is an
important aspect of project management because it concerns keeping the project activities on
track and monitoring those activities against the project plan to ensure that the project is
completed on time. Although each process in this Knowledge Area occurs at least once in every
project (and sometimes more), in many cases, particularly on small projects, Sequence Activities,
Estimate Activity Durations, and Develop Schedule are completed as one activity. Only one
person is needed to complete these processes for small projects, and they’re all worked on at the
same time.
The PMBOK(2000) edition summarized stated to Project time management has evolved from
simple roots to the more complex computer aided processes it is today. The use CPM and the
predominant variation of the precedence diagramming method may tend to overshadow the value
of more simple and effective techniques inherent in the bar charting processes for many
applications. for simple projects and fragmented of more complex projects, a bar chart may be all
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that is needed to effectively manage the time processes. It is certainly a matter of judgment and
must be used carefully to avoid missing importance interdependencies. But there is nothing
According to PMBOK(2014) 6th edition project schedule provides a detail plan that represents
how and when the project will deliver the products, services and results defined in the project
scope and serves as a tool for communication, managing, stakeholders’ expectations, and as a
basic performance reporting. According to Harold karezene (2007) states project time
management includes the processes required to manage timely completion of the project which
are define activities, sequence activities, estimate activity resources, estimate activities duration,
develop schedule and control the schedules. According Thomas E Uhrs (2003) a time schedule is
prepared on the assumption that its activities will be given all the required resources when
needed. In other words, time scheduling assumes that resources are unlimited and available when
needed. This is an unrealistic assumption, however, since resources may simply be unavailable
when needed or available in limited quantity, size and type or technical specification.
resources and the likelihood of higher cost. Processes involved in the project time management
include define activities, sequence activities, estimate activities resource, estimate activities
These processes interact with each other and with the processes in the other knowledge areas as
well. Each process may involve effort from one or more individuals or groups of individuals
based on the needs of the project. Each process generally occurs at least once in every project
phase. Although the processes are presented here as discrete elements with well-defined
interfaces, in practice they may overlap and interact in ways not detailed here.
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2.5 Project Cost Management
The PMBOK Guide (2000) edition says, Project cost management includes the processes
required to ensure that the project completed within the approved budget” and provides an over
view of resource planning, cost estimating, cost budgeting and cost controlling. All these major
processes are used in construction projects. Life cycle costing together with value engineering
techniques and constructability analysis are used in construction projects to reduced cost and
time, improve quality and performance, and optimize the decision making.
The Cost Management includes the processes involved in estimating, budgeting, and controlling
costs so that the project can be completed within the approved budget. Project managers must
make sure that their projects are well defined, have accurate time and cost estimates, and have a
realistic budget that they were involved in approving. Costs are usually measured in monetary
units like dollars. Before going to this knowledge area we need to familiar with some of the
definitions or terms used in Cost management. Profit is the difference between revenue and cost
Activity definition involves identifying and documenting the specific activities that must be
performed in order to produce the deliverables and sub-deliverables identified in the work
breakdown structure. Implicit in this process is the need to define the activities such that the
must be sequenced accurately in order to support later development of a realistic and achievable
schedule. Sequencing can be performed with the aid of a computer (e.g., by using project
management software) or with manual techniques. Manual techniques are often more effective
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on smaller projects and in the early phases of larger ones when little detail is available. Manual
Project cost management knowledge area which comes in planning process group to establish the
policies, procedures, & documentation for planning, managing, expending, and controlling
project costs. It describes in detail how the project costs will be managed or how the rest of the
Project cost management is the processes involved planning, estimating, budgeting and
controlling costs so that the budget completed within the approved budget.
Project cost management has three processes in its implementation, these are estimate cost,
determine cost and controlling costs. Cost is a resource sacrificed or foregone to achieve a
specific objective or something given up in exchange. Project cost management includes the
processes required to ensure that the project is completed within an approved budget.
Eda Bucher (2015), “Project cost management” explains As Resource planning involves
determining what physical resources like people, equipment and material what quantities of each
should be used and when they would be needed to perform construction projects activities. It
must be closely coordinated with cost estimating. A construction project management team will
need to be familiar with local building codes such knowledge is often readily available from
local seller. However if the local labor lacks experience with usual or specialized construction
techniques, the additional cost for a consultant might be the most effective way to secure
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2.5.2 Cost estimating
The PMBOK@R Guide-2000 edition says “Cost estimates are quantitative assessments of the
likely costs of the resources required to complete project activities. They may be presented in
summary or detailed. Costs must be estimated for all resources that will be charged to the
project. Cost estimates are generally expressed in units of currency to facilitate comparisons both
within and across projects. In some cases, the estimator may use units of measures to estimate
costs, such as staff hours or staff days, along with their cost estimates to facilitate appropriate
management control.
Cost estimating involves developing an approximation of the cost of the resource needed to
complete project activities. In approximation the cost the estimator consider the causes of
variations of the final estimator for purposes of better managing the construction project. When a
project is performed under contract, care should be taken to distinguish cost estimating from
pricing. Cost estimating involves developing an assessment of the likely quantitative result how
much wills it cost the performing organization to provide the product? Pricing is a business
decision how much will the performing organization change for the product or services that uses
According to PMBOK (2000) edition Cost budgeting involves allocating the overall cost
estimate to individual activities or work packages to establish a cost baseline for measuring
construction project performance. Reality may dictate that estimates are done after budgetary
approval is provided, but estimates should be done prior to budget request wherever possible. In
preparing construction project cost estimation there are factors considering like inputs, tools and
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In the input perspective cost estimates, work breakdown structure, project schedules and risk
management plan will consider where as the tools and techniques for developing project costs
estimates are used to develop budget for activities or work packages as well. And out puts from
cost budgeting considers the cost base line which is a time phased budget that will be used to
measure and monitor cost performance on the project. It is developed by summing estimating
costs by period and many projects especially; larger ones may have multiple cost baselines to
measure different aspects of cost performance. For example a spending plan or cash flow
According to HARRISON NUJAMU (2004) cost control is the process of comparing actual
and taking appropriate corrective action as needed. As per the above definition, control is the
monitoring of performance, that is, what has been done, what is being done and what is yet to be
In construction project management cost control is concerned with influencing the factors that
crate changes to the cost base line to insure that changes are agreed upon and determining that
the cost base line has changed. In the same way measuring the actual changes when as they
occur. within cost control includes inputs (cost base line, performance reports, change requests
and cost management plan),tools and techniques (cost change control system, performance
measurement, earned value management, additional planning and computerized tools.), outputs(
revised cost estimate, budget updates, corrective action, estimate at completion, project close out
and lessons.
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2.6 Project Quality Management
According PMBOK Guide (2000) edition Project management is includes the processes required
to ensure that the project will satisfy the need for which it was undertaken. In the construction
industry this consists of ensuring that the project specification and processes are satisfied within
the agreed schedule and budget. It includes all activities of the overall management function that
determine the quality policy objectives and responsibilities and implements them by means such
as quality planning, assurance, control and improve, within the quality system.
FIDIC (2010) document states about quality within perspective of contractor in the project, the
Contractor shall institute a quality assurance system to demonstrate compliance with the
requirements of the Contract. The system shall be in accordance with the details stated in the
Contract. The Engineer shall be entitled to audit any aspect of the system. Details of all
procedures and compliance documents shall be submitted to the Engineer for information before
each design and execution stage is commenced. When any document of a technical nature is
issued to the Engineer, evidence of the prior approval by the Contractor himself shall be apparent
on the document itself. Compliance with the quality assurance system shall not relieve the
Harold k (2009) stated quality management during the past hundred years, the views of quality
have changed dramatically. Prior to World War I, quality was viewed predominantly as
inspection, sorting out the good items from the bad. Emphasis was on problem identification.
Following World War I and up to the early 1950s, emphasis was still on sorting good items from
bad. The project manager has the ultimate responsibility for quality management on the project.
Quality management has equal priority with cost and schedule management. However, the direct
measurement of quality may be the responsibility of the quality assurance department or the
21
assistant project manager for quality. For a labor-intensive project, management support (i.e., the
project office) is typically 12–15 percent of the total labor dollars of the project. Approximately
3–5 percent can be attributed to quality management. Therefore, as much as 20–30 percent of all
the labor in the project office could easily be attributed to quality management. From a project
manager’s perspective, there are six quality management concepts that should exist to support
each and every project. They include: Quality policy, Quality objectives, Quality assurance,
According to Rita M. (2009) stated that quality management includes creating and following
processes and procedures to ensure that a project meets the defined needs it was intended to meet
from the customer’s perspective. This means the same thing as completing the project with no
deviations from the project requirement. Quality management includes the processes of plan
John P. Muldoon (2014) states quality management applies to all projects and there are important
risks and trade –offs when it comes to quality. There is an important distinction between grade
and quality, quality is the degree to which fulfils requirements and grade is a design issue.
According to PMI (©2003), statement Quality planning involves identifying which quality
standards are relevant to the project and determining how to satisfy them. It is one of the
facilitating processes during project planning and should be performed regularly and in
parallel with other project planning processes. The changes in the product of the project
required to meet identified quality standards may require cost or schedule adjustment, or the
desired product quality may required a detailed risk analysis of identified problems.
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In quality planning there are considering inputs to quality planning which includes quality
policy, scope management, product description, standard and regulations and other output
processes. In the same way quality planning considering tools and techniques which include
benefit analysis, bench marking, flow charting, design of experiments and cost quality.
Finally quality planning considers output which includes quality management plan,
According to PMI (2003), statement Quality assurance is all the planned and systematic
activities implemented within the quality system to provide confidence that the project will
satisfy the relevant quality standard. In a construction project, quality assurance is every
body’s responsibility will be provided to the project management team and to the
management of the performing organization as well to the customer and others not actively
organizational unit, but it does not have to be. Assurance may be provided to the project
provided to the customer and others not actively involved in the work of the project. In
quality assurance there is considering inputs which include quality management plan, results
of quality control management, and operational definitions. In the same way quality
insurance considers tools and techniques which include quality planning tools and technique
and quality audits. Finally quality assurance considers output which includes quality
improvement.
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According to FIDIC (2010) quality insurance the contracture shall institute a quality
insurance system to demonstrate compliance with the requirements of the contract. The
system shall be entitled to audit any aspect of the system. Details of all procedures and
compliance documents shall be submitted to the Engineer for information before each design
and execution stage is commenced. When any document of a technical nature is issued to the
Engineer, evidence of the prior approval by the Contractor himself shall be apparent on the
document itself. Compliance with the quality assurance system shall not relieve the Contractor
According to Harold Kerzener (2009), Quality control is a collective term for activities and
techniques, within the process, that are intended to create specific quality characteristics. Such
activities include continually monitoring processes, identifying and eliminating problem causes,
use of statistical process control to reduce the variability and to increase the efficiency of
processes. Quality control certifies that the organization’s quality objectives are being met.
Quality control involves monitoring specific projects results to determine if they comply with
relevant quality standards, and identifying ways to eliminate causes of unsatisfactory results.
Project results include both product results such as deliverable, and project management results,
organizational unit, but it does not have to be. In quality control there are considering inputs
which include work results, quality management plan, and operational definitions and check
lists. In the same way quality control consider tools and techniques which include inspection,
control charts, pare to diagrams, statistical planning, and flow charting as well as trend analysis.
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Finally quality control considers outputs which include quality improvement, acceptance
According to JAMES P. LEWIS (2007) statement in his third edition managing human
resources is often overlooked in projects. It involves identifying the people needed to do the job,
defining their roles, responsibilities, and reporting relationships, acquiring those people, and then
managing them as the project is executed. Note that this topic does not refer to the actual day-to-
day managing of people. Even though by PMBOK (2008) in fourth edition states Project human
resource management includes the processes required to make the most the effective use of the
people involved with the project. It includes all the project stakeholders’ sponsors, customers,
partners, individual contributors, and others described in organization planning, staff acquisition
Kim Heldman (2009) fifth edition states that Project Human Resource Management involves all
aspects of people management and personal interaction, including leading, coaching, dealing
with conflict, conducting performance appraisals, and more. These processes ensure that the
human resources assigned to the project are used in the most effective way possible. Some of the
projects participants whom you’ll get to practice these skills on are stakeholders, team members,
and customers. Each requires the use of different communication styles, leadership skills, and
team-building skills. A good project manager knows when to enact certain skills and
Together based on the skills and resources needed to complete the activities of the project, and
many times project team members might not know one another. Because the makeup of each
team is different and the stakeholders involved in the various stages of the project might change,
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you’ll use different techniques at different times throughout the project to manage the processes
in this Knowledge Area. The project human resource management knowledge areas consists of
four processes develop human resource plan, acquire project team, develop project team and
manage project team through planning and executing in the following table.
Table 1
According to Rita M. (2009) states that project human resource management can be divided in to
administrative and behavioral management topics. Most of the answers to human resources
questions should from your every day knowledge and work experience.
William R. Duncan (1996) stated that project human resource management includes the
processes require to make the most effective use of the people involved with the project. It
includes all the project stakeholders’ sponsors, customers, individual contributor and others.
Project human resource management provides major processes includes organizational planning,
and assigning project roles, responsibilities, and reporting relationships may be assigned to
individual or to group. The individuals and groups may be part of the organizational performing
the project or they may be external to it. Internal groups are often associated with a specific
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functional department such as engineering, marketing, or accounting. On most projects, the
majority of organizational planning is done as part of earliest project phases. However, the
results of these processes should be reviewed regularly throughout the project to ensure
promptly. Organizational planning considers inputs which include project interface, staffing
requirements and constraints. In the same way organizational planning considers tools and
techniques which include template, human resource practice, organizational theory and
stakeholder analysis.
William R.Duncan (1996), states that Staff acquisition involves getting the humans resources
needed assigned to and working on the projects. In most environments the best resources may
not be available and the project management team must take to ensure that the resources which
The staff acquisitions consider input which includes staff management planning, staffing pooling
description and recruitments practices. Finally staff acquisition considers output which includes
According to William R.Duncan (1996), Team development includes both enhancing the ability
of stakeholders to contribute as individual as well as enhancing the ability the team to function as
a team. Individual development is the foundation necessary to develop the team. Development as
a team is critical to the projects ability to meet its objective. Team development on construction
project management is often complicated when individual team members are accountable to both
27
The team development consider inputs which include project staff, project plan, staffing
management plan, performance reports and external feed backs. In the same way team
development considers tools and techniques which include team building activities, general
management skills, reward and recognition system, collocation and training. Finally Team
performance appraisals.
PMBOK (2000) edition says Project communications management includes the processes
required to insure timely and appropriate generations, collection, and dissemination, storage, and
ultimate disposition of project information. It provides the critical links among people, ideas, and
information that are necessary for success. Everyone involved in the project must be prepared to
send and receive communications and must understand how the communication in which they
are involved as individuals affect the project as a whole. Perhaps no processes are more
important in the design and construction of a project because of the number and diversity of the
key players, and because it is vital processes to the success of the project that the communication
of information be timely and accurate. For the construction project the project team and
primarily the project manager are the focal point of project communication, not just for
disturbing project generated information, but also for gathering, analyzing, and responding to
James p. Lewis (2006) in his third edition states communication management involves planning,
executing, and controlling the acquisition and dissemination of all information relevant to the
needs of all project stakeholders. This information would include project status,
accomplishments, events that may affect other stakeholders or projects, and so on.
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To implement project communication there are procedures including communication planning,
According to Kim Heldman(2009), fifth edition The Plan Communications process concerns
defining and documenting the types of information you’re going to deliver, the format it will
take, to whom it will be delivered, and when. The process consists of two tools and techniques to
help determine these elements. Communication planning involves determining the information
and communications needs of the stake holders: who needs what information, when they will
need it, how it will be given to them, and by whom. While all projects share the need to
communicate project information, the information needs and the methods distribution vary
widely. Identified the information needs of the stakeholders and determining a suitable means of
meeting those needs are an important factor for project success. However the results of this
processes should be reviewed regularly throughout the project and revised as needed to ensure
continued applicability.
The major consideration in planning a communication system for construction projects how
requests for information are to be handled. These communications between the constructor and
designer can have a serious effect on the cost and schedule and can lead to claims. In
In the same way communication planning considers tools and techniques which include
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2.8.2 information distribution
Kim Heldman(2009) states that in the Distribute Information process, the communications
management plan that was defined during the Plan Communications process is put into
action. Remember that this plan is a subsidiary of the project management plan, which is
an input to this process. The other inputs include performance reports and organizational
process assets. Plan Communications and Distribute Information work together to report
project manager sends the draft project communication plan to the project stakeholders for
review and input. When reviewing the communication matrix, functional managers ensure
that a task manager is assigned to each WBS elements listed in the functional managers’
area of responsibility. The functional managers list all the assigned task managers on the
inputs which includes work results, communications management plan and project plan.
in the same way information distribution considers tools and techniques which include
.finally the information distribution consider output which include project records, project
In PMBOK (2000) states that Performance reporting involves collecting and disseminating
performance information to provide stakeholders with information about how resources are
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being used to achieve project objectives. Information distribution in a design or construction
project is important enough to warrant separate section for reporting. This process includes:
Performance reporting should generally provide information on scope, schedule, cost, and
quality. Many projects also require information on risk and procurement. Reports may be
which include project plan, work results and other project records. in the same way performance
report considers tools and techniques which includes performance reviews, variance analysis,
trend analysis, earned value analysis, information distribution tools and techniques. Finally
performance report considers outputs which include performance report and change requests.
an importance phase in the life of construction project is administrative closure, where it comes
after each achieving its objective closure, whether it comes after either achieving its objectives
or being terminated for other reasons. The PMBOK guide 2000 edition states,” administrative
closure consists of documenting project results to formalize acceptance of the product of the
project by the sponsor or customer. It includes collecting project records .it includes collecting,
insuring that they reflect final specifications, analyzing project success, effectiveness, and
lessons learned, and achieving such information for the future use.” Administrative closure
activities should not be delayed until project completion, this is a particularly important point in
connection with construction projects with their varied and large number of elements and typical
lack of funding and personnel to complete the closure processes. Each phase of the project
should be properly closed to ensure that important and useful information is not lost. Critical
among this information are as-built records of the construction record showing actual dimensions
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and elevations of the completed work, especially underground work that may need to be repaired
or modified later.
Kim Heldman(2009) says that Administrative closure procedures involve collecting all the
records associated with he project, analyzing the project success (or failure), documenting and
gathering lessons learned, and archiving project records. The administrative closure should
and other project records. In addition to this administrative closure consider tools and techniques
which include performance reporting tools and techniques, project report and project
presentations. Finally administrative closure considers output which include project achieves,
According to William R. Duncan (1996) stated that project risk management includes the
processes concerned with identifying, analyzing and responding to project risks. It includes
maximizing the results of positive events and minimizing the consequences of adverse events.
Project risk management provides major risk identification, risk quantification, risk response
development and risk response control. These processes interact with each other and with the
processes in the other knowledge areas as well. Each processes may be involve effort from one
According to James p. Lewis (2007) third edition states Risk management is the systematic
maximizing the probability and consequences of positive events and minimizing the probability
and consequences of adverse events to project objectives. This is an extremely important aspect
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Harold K (2009) states Risk management is the act or practice of dealing with risk. It includes
planning for risk, identifying risks, analyzing risks, developing risk response strategies, and
monitoring and controlling risks to determine how they have changed. Risk management is not a
separate project office activity assigned to a risk management department but rather is one aspect
of sound project management. Risk management should be closely coupled with key project
processes, including but not limited to: overall project management, systems engineering,
schedule, scope, and test. (Project management and systems engineering are typically the two
top-level project processes. While risk management can be linked to either of these processes, it
is typically associated with project management.) Proper risk management is proactive rather
than reactive, positive rather than negative, and seeks to increase the probability of project
success. As an example, an item in a network (e.g., router) requires that a new technology be
developed. The schedule indicates six months for this development, but project engineers think
that nine months is much more likely. If the project manager is proactive, he might develop a
risk response plan right now. If the project manager is reactive (e.g., a “problem solver”), then he
may do nothing until the problem actually occurs. At that time the project manager must react
rapidly to the crisis and may have lost valuable time during which contingencies could have been
developed, and at least some possible solutions may have been foreclosed
Great project risk management requires good planning. Begin with proven project management
practices: review organizational policies and guidance; initiate and align the project team; and
follow the steps provided in the Project Management Online Guide. Risk management must
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commence early in project development and proceed as the project evolves and project
According Harold K.(2007) Risk planning develops a risk management strategy, which includes
both the process and implementation approach for the project. Each of these two considerations
is of primary importance for achieving effective risk management. However, it is generally far
easier to improve a deficient process than remedy a problematic project environment that is
unsupportive or hostile toward risk management. Early efforts should establish the purpose and
objective, assign responsibilities for specific areas, identify additional technical expertise needed,
describe the assessment process and areas to consider, define a risk rating approach, delineate
procedures for consideration of response strategies, establish monitoring and control metrics
(where possible), and define the reporting, documentation, and communication needs. In risk
management planning the processes procedure considers inputs which include project charter,
organizations risk’s management policies, defined roles and responsibilities, stakeholder risk
tolerance, template for the organization’s risk management plan, work break down structure
(WBS) and contract provisions. In addition to this risk management planning considers tools and
techniques which include planning and meetings. Finally In risk management planning the
Bob Pieplow (2012), sates that Risk identification determines what might happen that could affect
the objectives of the project and how those things might happen. It produces a deliverable — the
project risk register – that documents the risks and their characteristics. The risk register is
subsequently amended by the qualitative or quantitative risk analysis, risk response, and risk
monitoring processes. Risk identification is an iterative process because new risks may become
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known as the project progresses through its life cycle, previously‐identified risks may drop out,
and other risks may be updated the second step in risk management is to identify risks (risk
identification). This may result from a survey of the project, customer, and users for potential
concerns. Some degree of risk always exists in the project, such as in technical, test, logistics,
production, engineering, and other areas. Project risks include business, contract relationship,
cost, funding, management, political, and schedule risks. (Cost and schedule risks are often so
fundamental to a project that they may be treated as stand-alone risk categories.) Technical risks,
such as related to engineering and technology, may involve the risk of meeting a technical
performance requirement, but may also involve risks in the feasibility of a design concept or the
risks associated with using state-of-the-art equipment or software. Production risk includes
concerns over packaging, manufacturing, lead times, and material availability. Support risks
include maintainability, operability, and trainability concerns. Threat risk includes a variety of
importance in the last few years.3 The understanding of risks in these and other areas evolves
over time. Consequently, risk identification must continue through all project phases. Project
risks should be examined and dissected to a level of detail that permits an evaluator to
understand the significance of the risk and its causes and to potentially examine the root cause(s).
This is a practical way of addressing the large and diverse number of potential risks that often
occur in moderate to large-scale programs. The methods for identifying risks are numerous.
Common practice is to classify project risk according to its source, which is typically either
objective or subjective.
According PMBO guide (2000 ) edition states for construction project all iterations suggested
in the performed, including a former iteration that is performed while in the biding processes
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to support pricing and contract negotiations decision. In risk identification processes
procedure consider input which include risk management plan, project planning output, risk
procedure consider tools and techniques which includes documentation reviews, information
gathering techniques, check lists, assumptions analysis and diagramming techniques. Finally
risk identification processes procedure considers output which includes risks, triggers, and
ccording to Bob Pieplow (2012), Qualitative risk analysis includes methods for prioritizing the
identified risks for further action, such as risk response. The PRMT can improve the project’s
performance effectively by focusing on high‐priority risks. Team members revisit qualitative risk
analysis during the project’s lifecycle. When the team repeats qualitative analysis for individual
risks, trends may emerge in the results. These trends can indicate the need for more or less risk
management action on particular risks or even show whether a risk mitigation plan is working.
Commonly used qualitative risk analysis methodology involves risk scales (templates) for
mapping matrix. The risk is evaluated using expert opinion against all relevant probability of
occurrence scales as well as the three consequences of occurrence scales (cost, technical
performance, and schedule), and the results are then transferred onto a risk mapping matrix to
The risk is included in a prioritized list based upon the risk level as well as other considerations.
Qualitative risk analysis processes procedure consider inputs which include risk management
plan, identification risk, project status, project type, data precision, scale of probability and
36
impact and assumptions. In addition to this Qualitative risk analysis processes procedure
consider tools and techniques which include risk probability and impact, probability/impact risk
rating matrix, project assumption testing and data precision ranking. Finally Qualitative risk
analysis processes procedure consider outputs which include overall risking for the project, list
of prioritized risks, list of risks for additional analysis and management and trends in qualitative
According to PMI (2003), the quantitative risk analysis process, although not very common in
methodologies are commonly used in quantitative risk analyses. These include, but are not
limited to, payoff matrices, decision analysis (typically decision trees), expected value, and a
Monte Carlo process. On the other hand if the states of nature cannot be represented by one or
more point values, then probability distributions should be used instead. A common
methodology that incorporates a model structure and probability distributions is a Monte Carlo
process (commonly called a Monte Carlo simulation). Two keys to producing accurate
quantitative risk analysis results include developing an accurate model structure and
insufficient attention paid to each of these items, and the outcome can be inaccurate results. The
model structure should be carefully developed and validated before any output is used for
decision-making purposes.
Quantitative risk analysis outputs can be used in a variety of ways, including but not limited to
developing: (1) prioritized risk lists (similar to that for calibrated ordinal scales), (2) probabilistic
cost estimates at completion per project phase and probabilistic schedule estimates for key
37
milestones to help the project manager allocate reserve accordingly, (3) probabilistic estimates of
meeting desired technical performance parameters (e.g., missile accuracy) and validating
technical performance of key components (e.g., real-time integrated circuit operation), and (4)
estimates of the probability of meeting cost, technical performance, and schedule objectives.
According to PMBOK guide 2000 edition the quantitative the quantitative risk analysis
processes, although not very common in construction projects is, very useful project
management decisions. Some of the determine the probability of achieving a specific project
objective, when bidding ,if the final project date is not determined by client, the project team can
decide what completion date to inform or offered base on the risk level they are willing to
accept. On the same time identify realistic and achievable cost, schedule or scope targets.
Acceleration plans are greatly benefited from this analysis and aggressive targets can be
negotiated in a lower degree of uncertainty. Quantitative risk analysis processes consider the
input which includes risk management plan, identified risks, list of prioritized risk, list of risks
for additional analysis and management, historical information, expert judgment and other
planning outputs. In addition to this quantitative risk analysis processes consider tools and
techniques which include interviewing, sensitivity analysis, decision tree analysis and
simulation. Finally Quantitative risk analysis processes consider output which includes
prioritized list of quantified risk, probabilistic analysis of the project, and probability of
achieving the cost and time objectives and trends in quantitative risk analysis results.
The PMBOK guide (2000), edition states that risk response planning is the processes of
developing options and determining actions to enhance opportunities and reduce threats to the
projects objectives. It includes the identification and assignment of individuals or parties to take
38
responsibility for each agreed risk responses. In construction projects where there is usually
involvement of sub contractors, risk response planning is a more complex processes, as risk
response may result in additional costs incurred by one party to influence outcomes of events
that will impact another party. Risk response planning processes consider input which include
risk management plan, list of prioritized plan, risk ranking of the project, prioritized list of
quantified risk, probabilistic analysis of the project, probability of achieving the cost and time
objectives. List of potential responses, risk thresh hold, risk owners, common risk causes, and
trend qualitative and quantity risk analysis results. In addition to this Risk response planning
considers tools and techniques which include avoidance, transference, mitigation and acceptance.
Finally risk response planning consider output which include risk response plan, Residential
risks, secondary risks, contractual agreements, contingency reserve amounts needed, inputs to
According to PMBOK guide (2000), edition risk monitoring and control is the processes of
keeping track of the identified risks, monitoring residual risks and identifying new risks,
ensuring the execution of risk plans, and evaluating their effectiveness in reducing risks. Risk
monitoring and control record metrics that are associated with implementing contingency plans.
Risk monitoring and control is an ongoing process for the life of the project. Good risk
monitoring and control processes provide information that assist with making effective decision
in advance of the risk’s occurring. Communication to all project stake holders is needed to assess
As we continue through project development, the project risk profile will change. Typically, as
we successfully respond to risks and our project knowledge increases, our risk exposure will
39
diminish. The Project Manager and project team apply their Project Management Plan through
project development and completion of their deliverables. Monitor the project status, looking for
trends that can indicate variations (good and bad) in the project execution. Results of the analysis
need to be communicated and adjustments made through a change management and/or issue
resolution process. The ability to describe the history of the project and how it evolved is
William R. Duncan (1996) stated that project procurement management includes the processes
required to acquire goods and services from outside the performing organization. For simplicity
goods and services consider as product provides by the major processes of Procurement
planning, solicitation planning, solicitation, source selection, contract administration and contract
close out.
According to PPA (2006) Federal Democratic Republic of Ethiopia Public Procurement and
Property Disposal Service Bidding Document for the Proclamation and Directives on Public
Procurement detail the full procurement processes, rules and procedures and the procurement
Even though the processes interact with each other and with the processes in the other
knowledge areas as well, Each process may involve effort from one or more individuals or
groups of individuals based on the needs of the project, the processes are presented here as
discrete elements with well defined interfaces, in practice they may be overlap and interacts in
James P. Lewis (2007) states that Procurement of necessary goods and services for the project is
the logistics aspect of managing a job It involves deciding what must be procured, issuing
40
requests for bids or quotations, selecting vendors, administering contracts, and closing them
According to Procurement of necessary goods and services for the project is the logistics aspect
of managing a job. It involves deciding what must be procured, issuing requests for bids or
quotations, selecting vendors, administering contracts, and closing them when the job is finished.
PMBOK guide (2000) edition states project management includes the processes required to
acquired goods and services from outside the organization, to attain project objectives, the
construct facilities. It involves capital project development where it is in the form of a new grass
PMI (2003) in construction extension states that safety management includes the processes
require assuring that the construction project is executed with appropriate care to prevent
accidents that cause or have the potential to cause personal injury or property damage. Accidents
and personal injuries and deaths that results, have been, and are still a major concern in the
construction industry both in terms of humanitarian losses and the direct and indirect costs to the
industry. As PMI (2003) stated in the United States alone construction accidents cost
construction project has the major three processes safety planning, safety plan execution and
41
PMI (2003), discusses Safety planning for a construction project involves a job site analysis of
the hazards inherent in the work and making decisions as to the measures to be taken to deal
effectively with them. This analysis includes the survey of a geographical and physical hazard of
the site, as well as a review of the normal hazards involved in the type of construction
anticipated.
Government laws and regulations, contract and owner requirements also must be considered in
developing the project safety plan which will be the guiding document for a safe project by
considering inputs which include laws and regulations, contract requirements, safety policy, site
location and management commitment. Secondly the safety planning considers tool and
techniques which include hazard analysis sub contractor selection and incentives. Finally safety
planning considers outputs which include project safety plan, authority and budget.
Execution of the project Safety plan involves the application and implementation of the safe
construction practices on site in accordance with the requirements of the plan. According to PMI
(2003) on a large construction project there may be a separate safety staff of several persons
Prevention of the accident is the most effective technique so that a well informed and trained
work force is the best way to assure a safety project by considering input which includes project
safety plan and contract requirements. Secondly safety execution consider tools and Techniques
review, safety communication, training and education, safety inspection, accident investigation,
medical facilities and drug testing. Finally safety execution considers output which include
reduced injures, lower insurance costs, enhanced reputation and improved productivity.
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2.11.3 Administration and reporting
PMI (2003) in construction extension states that along with governmental laws and regulations
that apply to safe construction practice, there are often requirements for record keeping and
reporting. The Insurance companies usually require periodic activity and accident reports.
Therefore the contractor needs additional records and reports. In safety administration and report
processes procedure consider inputs which include legal reporting requirements, insurance
administration and report processes consider tool and techniques which include inspection logs
and reports, training and meeting records, injury and illness logs, accident investigations and
photographs and video records. Finally administration and report processes procedure consider
output which include government logs and reports, accident reports, achievement of reports,
This part of the study summarizes various empirical studies conducted in different countries
related with the construction project management experience. Based on these relevant empirical
Previous, research works by (Long, 2004) and others have indicated poor managerial capability
countries. Thus, improving the managerial capability of contractors need be one of the priority
by (Dlungwana & Rwelamila, 2004), and others have also strongly emphasized the importance
43
Brown and Adams (2000) presented a new approach to the measurement of the effect of
Building Project Management (BPM) on cost, time and quality performance outputs using 15
cases' derived from UK data and by developing a path model in order to achieve that. Chan
(2001) studied the cost time relationships in public sectors in Malaysia. Time and cost data were
collected from 51 public sector projects. Regression analysis was used to identify the relations
between time and cost performance. Kuprenas (2003) studied over 270 completed municipal
facilities, storm water, sewer, and street projects within the city of Los Angeles as a case study in
order to assess the impact of the use of a project management based organizational structure,
project manager training, frequency of design meetings, and frequency of design reports on
Olawale and Sun, 2010, the top five factors inhibiting effective project time control in
complexity of works, risk and uncertainty associated with projects and ill-performance of
subcontractors and nominated suppliers. Likewise, Kasimu and Abubakar (2012) conducted
delay study in the Nigerian construction industry and identified the top five factors that influence
delay in ascending order as improper planning, lack of effective communication, design errors,
Iyer and Jha (2005) studied that the factors affecting cost performance by considering a
relationships by using project scope factors for 161 construction projects that were completed in
various Australian States and using multiple regression technique of weighted lest squares.
Ugwu and Haupt (2007) studied the key performance indicators and proposed an analytical
44
projects in a developing country like South Africa. The research was conducted using a
combination of structured interviews with industry professionals, case study project data,
construction environment, literature on sustainability research, and question naire based survey
for indicator validation. It is used the weighted sum model. Techniques in multi-criteria decision
analysis (MCDA) and the .additive utility model. In analytical hierarchical process (AHP) for
significant procurement sub-systems variables with non procurement variables based on time and
cost performance. The multiple regression technique was applied to analyze the data from 32
Hong-Kong building projects and the results were compared with reality. Lehtonen (2001)
proposed new framework for measuring construction logistics. Two-dimensional model are
grouped by the use of measures and by the focus of measures. The first dimension (use of
measures) contains two kinds of measures. One of them is called improvement measures and the
other kind is called monitoring measures. The second dimension of the framework is the focus of
Brown and Adams (2000) presented a new approach to the measurement of the effect of
Building Project Management (BPM) on cost, time and quality performance outputs using 15
cases' derived from UK data and by developing a path model in order to achieve that. Chan
(2001) studied the cost time relationships in public sectors in Malaysia. Time and cost data were
collected from 51 public sector projects. Regression analysis was used to identify the relations
between time and cost performance. Kuprenas (2003) studied over 270 completed municipal
facilities, storm water, sewer, and street projects within the city of Los Angeles as a case study in
45
order to assess the impact of the use of a project management based organizational structure,
project manager training, frequency of design meetings, and frequency of design reports on
In ERA’s case, studies (World Bank, 2012; Cost, 2011; Turkey, 2011) show that ERA’s projects
fail when measured against the project success criteria the Authority sets. Analysis by Turkey
(2011) indicates that out of the 30 upgrading and rehabilitation road projects investigated, 24
projects (80%) suffered cost overrun during the implementation phase. In addition, Turkey’s
(ibid) desk study revealed that the major causes of cost overrun are variations, right- of- way
problems, price adjustments (due escalation) and design problems. Furthermore, given that the
Authority’s projects are delivered through contracts, the Authority is vulnerable to Opportunism
and hold up problems by suppliers if the initial requirements are to change ex-postbcontract
basis. Further, changes, if they are not spotted on time and issued accordingly, may create
Mengistu (2010) showed that project controlling supportive techniques and software are not
applied well for the control of actual and planned activities in the Ethiopia construction sector
and recommends the significance of training requirement for the concerned project staff.
Similarly, Abadir (2011), found out that among the knowledge areas of project in Ethiopia,
project time management is considered the critical one with only 24% projects managed well.
46
CHAPTER THREE
3 RESEARCH METHODOLOGY
This chapter is a review of the various approaches to data collection and analysis adopted in
conducting this research; it explains the type of research strategy adopted the mode of data
collection and the methodology used in carrying out this research. It includes the research design,
Sample size and sampling technique, data source and collection method, procedure of data
collection, method of data analysis and questionnaire reliability test was presented.
The research employed descriptive method because the study intended to find out how the
enterprises plan, monitored and evaluate its construction projects .Kothari (2004) defines
descriptive research study as ―Descriptive research studies are those studies which are
to Saunders et al (2009), there are seven research strategies (experiment; survey; case study;
action research; grounded theory; ethnography and archival research). In this research the
researcher used survey research. Survey research is a popular and common strategy in business
and management research and is most frequently used to answer who, what, where, how much
and how many questions,and used for exploratory and descriptive research. Surveys research
allows the collection of a large amount of data from a sizeable population in a highly economical
way. Often obtained by using a questionnaire administered to a sample, these data are
authoritative by people in general and is both comparatively easy to explain and to understand.
The survey strategy allows you to collect quantitative data which you can analyze quantitatively
47
using descriptive statistics. In addition, the data collected using a survey strategy can be used to
suggest possible reasons for particular relationships between variables and to produce models of
these relationships.
The study had used both primary and secondary data sources. The secondary data were collected
Via detailed review of related literature i.e. books, articles, journals and many other relevant
written publications. The researcher used primary data that was collected via questionnaire and
interview. The decision to select the two instruments was arrived at after carefully considering
their advantages and disadvantages and the population size for each category. As the research
was intended to investigate the practice of planning, monitoring and evaluation of construction
projects in D.C.E, a set of 119 the same questionnaire was distributed to board member, head
professional engineers and managemnet of the enterprise. In addition, four purposively selected
management staff and two Professional engineers were interviewed to prepared back ground of
enterprise.
The target groups in this study were D.C.E Board member, management staff and Project
professionals and Consultancy resident engineers. According to DCE human resource of 2018 in
Projects and head office of the enterprise there are 169 professionals Project managers,office
Therefore, the sample size that was selected out of 169 total populations based up on sampling
technique of n=N/(1+Ne^2). The formula is large enough to allow for precision and confidence
at 5%. Based on the method formula for the calculation of sample size present as follow:
48
Where n = sample size
N= Number of population
Then according to the sample size the same from part one and parte two questionaries was
distributed to DCE Board member ,head office management, project managersan professionals
and consultancy residential Engineer were participating in questioaries and the distribution was
Table 2
The methods of analysis used in this research were selected due to the type of data available for
the analysis and the objectives of the research. The questions in the questionnaire were
49
qualitative; hence the descriptive method of analysis is best suited for the analysis. Such method
was applied for the presentation, interpretation and discussion parts on various dimensions of the
appropriate to analyze, interpret, figurative and present the result of the study. The data gathered
through questionnaires was coded, entered into computer and analyzed and presented in the form
of charts, and diagrams, by using SPSS Statics version 20 software. The results of the interview
questions were integrated to the responses of management and employees through questionnaires
and were analyzed accordingly. Finally, conclusions were made based on the results/findings of
the study and recommendations were forwarded on the basis of the data analyzed.
questionnaires. These questionnaires were distributed to team leaders, projects managers, and
office Engineers, construction engineers, site engineers and expert engineers at head office and
projects around Addis Ababa first to give their comment on the questions and then to fill the
questionnaire.
After making some amendments according to the comments questionnaires were distributed to
test the reliability of the questionnaire returned back. The reliability of an instrument according
to Saunders et al., (2009) is the degree of consistency which measures attribute, in particular,
whether or not it will produce consistent findings at different times and under different
conditions, such as with different samples. Internal consistency involves correlating the
responses to each question in the questionnaire with those to other questions in the questionnaire.
It therefore measures the consistency of responses across either all the questions or a sub-group
of the questions from the questionnaire. There are a variety of methods for calculating internal
consistency, of which one of the most frequently used is Cronbach‘s alpha. For the purpose of
50
this study, the Cronbach’s alpha coefficient was calculated by distributing questionnaires.
According to George and Mallery (2003) a Cronbach’s alpha coefficient greater than 0.9 implies
excellent, greater than 0.8 is good, greater than 0.6 is acceptable, greater than 0.5 is poor, and
less than 0.5 is unacceptable”. Based on the principle in order to establish the degree of
reliability, consistency, and accuracy of the instrument, a pilot study was conducted. Accordingly
Table 3
Reliability Statistics
0.862 16 119
The reliability scale result is 0.862 which indicates that there is a very high consistency.
According to Saunders et al., (2009, p.184) ―Research ethics therefore relates to questions
about how we formulate and clarify our research topic, design our research and gain access,
collect data, process and store our data, analyze data and write up our research findings in a
moral and responsible way. An attempt was made to ensure all respondents to keep their identity
and responses as confidential; so that all the information was given in full confidence. The
questionnaire was distributed based on willingness of each respondent. In addition, the purpose
of the questionnaire was clearly indicated in a cover letter along with the questionnaire
51
CHAPTER FOUR
As indicated in the methodology part the study basically conducted using questionnaires filled by
respondents. The study totally distribute 119 questionnaires however, the analysis were done
Background of respondents
management practice affected by staff academic qualification, employee work experience, and
respondents.
52
As implied from background information, 20.37% respondents have diploma, while, 66.2% of
them have first degree and the rest 15.74% have second degree. Regarding to educational status
of professionals, it can be analyzed that, though large proportion of them were first degree
holders, however, there are still professionals with low level of educational status that inferred by
diploma and there are small size of second degree holders this can affect construction project
management practice of the enterprises in several manner. Similarly the study were also assessed
professional work experience, in this regard majority of the respondents accounted for 41.66%
and 40.74% respectively engaged between the 2-5years and 5-9 years of work experience, on
the other hand, the rest 3.7% have low work experience which under one years, however 13.8%
of them were engaged above 10 years work experience. Regarding work experience of
profession the data dictate that, even their proportion is very low 3.7% professionals engaged in
managing project with little experience and this condition can affect the designed project in
terms of quality, cost, and other related challenges. The study were also assess the types of
organization engaged in the enterprise construction accordingly, 39.81% are local private
company, 31.48% are local public local companies, 20.37% foreign company and the rest 8.33%
joint venture company (local with foreign). Majority of the companies engaged in the enterprise
construction works were local public and private companies however, some of the heavy projects
are not efficiently managed by such as, in the dam construction those companies are engaged but
they are complained in accomplishing task. Similarly the study were assessed experience of the
organizations accordingly, 45.37% and 35.18% respectively have 2-5years and 5-9 years of work
experience while, the rest 19.44% have 10 and above 10 years of work experience. However
there is no one in the organization that has less than one year’s work experience. Finally, the
study were assessed weather the study organizations are ISO certified or not accordingly,
53
26.62% of the construction enterprises are ISO certified, while, 33.33% are on the process to get
certification of ISO, but the rest 37.03% of them are not certified from ISO.
This is the main part of the study which assess major challenges affecting project management,
and respondents concept of the area over all of the 27 projects depend on each questioners
The study provide four options for each of the provided questions, such as, Yes: If the
description approximates the condition in the assessed project they respond yes otherwise No.
However, they can choose not applicable (N/A), if the practice is not applicable in their
organization (projects) and I don’t know (I/DK) if they don’t have information knowledge on the
provided questions.
Even though the questionaries was distributed according to the sample size 119 among it 11
questionaries are not return back from different projects and head office. Then the total
responden are 108 persons evene from those participant some specific questions are missed as
you show in each discution some of respondents in specific question it shows less than108.
Then maximum 4 and less answers were missed From the total question.
Construction project management typically includes complicated task that can shift widely,
depending the work at hand and it requires strong skill in communication, deep knowledge of
building process and the ability to problem solving. In this regard the study were assessed the
54
selected sample respondents DCE that participate in the project at several department work
120
99
100 90
86
81 79 82
80 72
68
60
40
25 23
18
20 11 11 14
7 7 9 9 9
2 2 1 2 5 2 2 2 2 2 0
4 4
0
Need of DCE Office of Standard PM training Efficient Formal Average
CPM Support PM PM Knoldge of application
CMP methodes PM of PM
Yes No NA I/DK
As indicated from the above graph respondents have put their view regarding the provided
respondents accounted for 99 assure that, the enterprise have interest to be managed every
projects through the knowledge of project management. In this regard 86 respondent’s assure
majority of the management bodies support the development of project management practice,
however, the rest 18 implied the organization still didn’t use its full potential in supporting the
development of project management. In relation to this challenges the study were provide may
be lack of centralized office based project management challenge affect the knowledge
development of the area or not accordingly, respondents accounted for 68 assure the enterprise
55
tried to manage majority of the projects in centralized and organized office based practice,
however, the rest 39 respondents still implied some projects are not managed in centralized
system. Similarly, the study were assessed whether the organization applied standard
methodologies of PM for the designed projects or not; accordingly, the response by 81 implied
the enterprise more or less applied standard methods of PM for projects, however, the rest 15 of
the respondents ensured though attempts in applying standardized methodology but still the
training practice of PM 90 respondents engaged in the sector assured the organization provide
training, but the rest 13 found at several related filed have not received training. In this regard 72
of the respondents assured that, though employee have good experience and knowledge of
project management the rest 34 respondents indicated they have no full of confidence on the
solid knowledge of employee of the sectors. Finally, the study respondents accounted for 79
implied the enterprise applied project management procedure formally, while the rest 27 implied
the organization didn’t applied project management knowledge formally at every type of
projects.
Generally, from the above seven questioners about 82 of the respondent indicates yes then it
indicates the necessary knowledge and awareness of construction Project process management is
high in the project management members by experience, training and graduated from higher
education the management members in Project management knowledge areas. even though the
awareness’ to project management process knowledge area indicates about 82 the remaining 14,
4 and 4 does not come close to the condition in the project and not applicable in the project
respectively. Therefore it expects more attention to develop more of construction Project process
56
4.3 Construction Project scope management
Scope management plan should include the detailed process of scope determination, its
management and its control. To accomplished a projects under the construction projects
management need to have several requirements such as, awareness of the need of the areas,
effort to manage projects based on their scope, follow standard and formal procedures, use
computer management tools, provide defined scope management for projects, have effective
monitoring and controlling procedures and effective and provide effective inspection method. In
this regard the study was provided a related question to assess the enterprises activity on the area.
Below the fig No 2 implied respondents view regarding the provided questions:
100
90
90 86 86
80 76 75
72
70
59
60 56
50
40
29 27
30 23
20 16 17
14 14
9 11 9 11 11 10
10 5 5 7 5 5 5
2 2 3
0 0
0
Need of PM under computer Defined
Formal PMS monitoring Inspecstion Average
PMS their scop application Scope
Yes 86 76 59 56 86 90 72 75
No 9 9 29 27 11 11 23 17
NA 2 0 5 5 7 0 5 3
I/DK 11 14 14 16 2 5 5 10
57
As implied from fig 2 the study regarding the enterprise practice of project under the
requirements of project scopes, provide several types of questions. In this regards respondents
accounted 86 indicated that, the organization have a good awareness that the importance of
accomplishing project tasks of the enterprise under the scope of each projects, however, 21 of the
understanding the importance of scope management. Similarly, the study were assessed efforts
of the enterprise in accomplishing projects under their scope or not, respondents accounted for
76 assure there is an effort by the enterprise to accomplish projects under their scope, however,
the rest 23 of the respondents assure the enterprise effort in accomplishing projects based on the
scope management is weak. In this regard 59 of the respondents assure, though the organization
tried to set up formal procedures of scope management practice of projects, however, 47 of the
system application and lack of defined construction scope management affects the enterprise
from applying effective project management under their scopes. Though those challenges affect
the organization in Applying the methods, however, 90 and 72 respondents respectively assure,
the enterprises have well established monitoring and evaluation system of projects.
Generally from the organization construction project management under the scope implied that,
75 of the respondents indicate yes then it indicates the necessary knowledge and awareness of
experience, training and graduated from higher education in the management members by
Project management knowledge areas. Even though the awareness to project management scope
knowledge area indicates about 75 the remaining 17, 3 and 10 consecutively does not come
58
close to the condition in the project, not applicable in the project and they do not have
generally implied still there is a gap that expects more attention to develop the construction
Project time management concerned with estimating the duration of the project plan activities,
devising a project schedule, and monitoring and controlling deviations from the schedule.
Collectively, this Knowledge Area deals with completing the project in a timely manner. In this
regard the study provides relevant questions to assess the enterprise experience regarding time
Below the fig No 3 implied the respondents view regarding the enterprise time management of
the projects
120
108
100
88
80
63 66
60 54
48 50
40 42
40 34
28
24
20 16 14
9 12 12
5 5 7 5 5 7
0 0 0 2 0
0
Scheduled networked Time plan of Historical Effective updated Average
time plan Scheduling specific data monitoring schedule
activities
Yes No NA I/DK
59
Source Questionnaire (2018)
Regarding time management effectiveness of the enterprise the study had been assessed relavat
areas that can affect construction site project management practice. In this regard the study were
assessed whether the organization use scheduled time plan for the provided projects or not,
accordingly all of the respondent assure that, the organization use time Schulte in general,
however, as indicated by 50 respondents the organization are not effective in providing time plan
for each activities. In addition 54 and 52 respectively implied that, implied though the enterprise
tried to provided networked schedule, however the organization didn’t effectively provided
networked Schulte of projects. Regarding the enterprise accomplishments of temple plan using
computerized method respondents accounted for 54 implied that in major activities the study
provide schedule using computerized method, however, the rest 52 still implied the enterprise
didn’t use computerized scheduling system for all activities in detailed. Activities of
computerization respondents accounted for. Regarding using historical data before providing
time plan for projects the study were assessed respondents view, accordingly. 63 of the
respondents assure the enterprise use historical data, while, the rest 45 respondents contrary
indicate there are projects that the enterprise didn’t refer their historical backgrounds and the
result affect the projects time management effectiveness. Finally respondents accounted for 88
assure though the organization have effective monitoring and evaluation system of the provided
lack of schedule updating mechanisms of the enterprise affect effective time management
From the above data one can understand that 66 of the respondent indicates yes then it indicates
the necessary knowledge and awareness of construction Project time management is high in the
60
project management members by experience, training and graduated from higher education by
Project management knowledge areas. even though the awareness’ to project time management
knowledge area indicates about 66 but the remaining 28,5 and 7 does not come close to the
condition in the project , not applicable in the project and they do not have
Project cost management includes the processes required to ensure that the project completed
within the approved budget” and provides an over view of resource planning, cost estimating,
cost budgeting and cost controlling. All these major processes are used in construction projects.
Life cycle costing together with value engineering techniques and constructability analysis are
used in construction projects to reduced cost and time, improve quality and performance, and
optimize the decision making. In relation to this the study assesses relevant area that that can
affect the enterprise construction cost management practice. Below the fig implied respondents
61
Fig 4. Cost management practice of the enterprise
120
99
100 90
80 72 73
65
60
44
40 38
40
27 25
20 10 10
7 6
2 5 4 4 3 5 5 5
0
Cost Procedure Cost Cost by Updated Budget Averege
breakdown resource budget monitoring
category
Yes No NA I/DK
As implied from the above graph respondents accounted for 72implied the enterprises have
formal procedure of cost management practice of the projects, however respondents accounted
for 27 the enterprise didn’t applied formal procure of cost for projects. Respondents accounted
for 99 and 90 ensure that the organization use cost breakdown for the provided projects and
arranged them through resources category system. However, as implied by 60 respondents the
organization had not updated most projects cost. Regarding budget monitoring practice of the
organization, 65 of the respondents assure there is budget utilization monitoring practice in most
of the projects while, the rest 43 of the respondents implied there is no monitoring practice in
some projects.
From the above graph one can analyzed that, about 73 of the respondent indicates yes then it
indicates the necessary knowledge and awareness of construction Project cost management is
high in the project management members. even though the awareness’ to project cost
management knowledge area indicates about 73 the remaining 25, 5 and 5 does not come close
62
to the condition in the project , not applicable in the project and they do not have
Quality management includes creating and following processes and procedures to ensure that a
project meets the defined needs it was intended to meet from the customer’s perspective. This
means the same thing as completing the project with no deviations from the project requirement.
Quality management includes the processes of plan quality, perform quality assurance, and
60 56 56 57
52
50 47 47 46 44
38
40
32 32
29
30
20
11 11
10 7 5 7 5 5 7 7 9 7 7
0
QMGT Q assurance Q audit Total Quality Q mgt Averege
procedure Mgt department
Yes No NA I/DK
From the above quality management data the study analyzed that, though 56 of the respondents confirmed
the enterprise formal procedure use of quality management, the rest 44 replied in opposed to the majority
responders which implied, the enterprise didn’t strictly follow formal procedure for all construction
projects. Similarly 56 responders indicate the organization use quality assurance test in the projects,
however, the rest 29,7 and 5 responders respectively implied project quality assure are not applicable in
all projects and they do not have information on the practice. Regarding quality auditing practice of the
63
enterprise the majority of responders accounted for 47 implied no response which implied the
organization in majority of the projects have not exercised quality auditing practice. Regarding total
quality management practice of the organization, though 52 assure the organization practice on several
projects the rest 47 implied the enterprise didn’t also applied the practice in large proportion of
the project. Respondents accounted for 57 implied the organization quality management
Generally the above data implied that, 45 of the respondent indicates yes then it indicates the
necessary knowledge and awareness of construction Project quality management is near to half
in the project and organization management members knowledge by experience, training and
higher education graduated by Project management knowledge areas shows very low. even
though the awareness’ to project quality management knowledge area indicates about 46 but
above half the remaining 44,7 and 7 does not come close to the condition in the project , not
applicable in the project and they do not have information/knowledge about project quality
management respectively. Therefore about half of the project and organization management
members are not developed the construction Project quality management knowledge area.
Project Human Resource Management involves all aspects of people management and personal
appraisals, and more. These processes ensure that the human resources assigned to the project are
used in the most effective way possible. Some of the project participants whom you’ll get to
practice these skills on area stakeholders, team members, and customers. Each requires the use of
different communication styles, leadership skills, and team-building skills. A good project
manager knows when to enact certain skills and communication styles based on the situation. It
is based on this the study provide relevant question to assess human resources activities of the
64
enterprise in consternation project management. In this regard below the figure 6 implied
100 90
90 86
79 80
80
70 63
60
50
40
29
30
16 17 19
20 14 11
9 6
10 5 2 2 2
0 0 0
0
planning Preparetion of Defined skilled provide trining Average
charts requirenment
Yes No NA I/DK
From the above data activity of the enterprise human resources, planning effectiveness’ in
while 29 of the respondents said no which implied still the organization human resources project
planning regarding human resources is weak. Though 86 of the respondents assure that the
organization provide charts that explain the human resources task regarding the projects the
remaining 14 which implied no indicate the activities are not sufficient. As implied by 90 of the
respondents the human resources department provide the required human resources for each of
the project parts, however, 14 respondents indicated in the opposite which implied the
department had not effectively assigned the required human resources on the construction
project. Though, 79 of the respondents assure that the human resources department provide
65
training related to project management of construction, the rest 21 still implied the training is not
sufficient,
In general the above data implied that, 80 of the respondent indicates yes then it indicates the necessary
knowledge and awareness of construction Project human resource management is high in the project and
organization management members by experience, training and higher education graduated by Project
management knowledge areas. However, the remaining 19, 2 and 6 does not come close to the condition
in the project and not applicable in the project about project human resource management respectively.
Therefore 27 of the project and organization management members have to strive to develop the
Project communications management includes the processes required to insure timely and
project information. It provides the critical links among people, ideas, and information that are
necessary for success. Everyone involved in the project must be prepared to send and receive
communications and must understand how the communication in which they are involved as
individuals affect the project as a whole. In this regard the study provide relevant areas
assessment questions and the response for each of the questions analyzed based on the fig 7
provided below.
66
Fig7 Construction Project Communication Management practice of the enterprise
90 83
81 79
80
70 66
60 52 54
50 45
36 38
40 34
30 27
20
20 16 16
9 7 11 9 11
10 5 7 6 6
2 2 2 2 1
0
Need analysis Plan to System of System for Perfomance stakeholder’s Average
adress the project information report expectation
identified documention
need
Yes No NA I/DK
accounted for 52 ensure the organization done need analysis for the required communication
pre-assessment of the organization is not addressing the entire projects requirement. Similarly,
54 of the respondents assure the enterprise provide plan for the identified problem in the pre-
assignment practice while the rest 34 response in oppose. About 81 of the respondents assure the
organization has system documentation in communication managements, but the rest 16 implied
some of the information didn’t include in system documentation. Though 80 implied that the
management, however, the rest 20 implied some of the projects information didn’t reported their
performance. Finally, 45 of the respondents implied the enterprise provide expectation of each
67
professionals in communication management section while the rest 38 argued that all of the
From the above questioners about 66 of the respondent indicates yes then it indicates the
implemented in a good manner, however, The rest respondents accounted for 27, 6 and 6
consecutavely does not come close to the condition in the project and not applicable in the
show project and organization management members are not developed the construction Project
Project risk management includes the processes concerned with identifying, analyzing and
responding to project risks. It includes maximizing the results of positive events and minimizing
the consequences of adverse events. Project risk management provides major risk identification,
risk quantification, risk response development and risk response control. in this regard the study
provide relevant question to assess the enterprise practice and the response implied as follow:
Table 5
68
Fig. 8 Construction project risk management
70
63
60
54
52
50 48
43 43 43
40 38 38
36 36
30 25
23 23
20
20 17
9 9
10 7
5 4
2 2
0
0
Formality of Documention risks prioritized risks response contingency Average
Risk Mgt of Risk plan budget
Yes No NA I/DK
As implied from the above table and graph of risk management practice of the organization,
majority of the respondents accounted for 52 implied the organization didn’t applied formal
the respondents assure documentation of the enterprise on some of the projects of risk. However,
the rest 38 assure the organization documentation process not applicable in some projects. As
indicated by 43 and 63 respondents respectively, the organization hadn’t effectively done risk
prioritizing method and didn’t provide risk response plan. Finally the study assessed the
69
Generally from the above figure 8 in average 69 of the respondent indicates not aware about the
risk management then it prove the necessary knowledge and awareness of construction Project
risk management is very weak in the project and organization management members’ by
experience, training and graduated from higher education . even though by Project management
knowledge areas shows very weak and not practice the rest 38 respondent approves yes then in
some of the organization construction project management activity It shows some practice of
risk management.
Project procurement management includes the processes required to acquire goods and services
from outside the performing organization. For simplicity goods and services consider as product
source selection, contract administration and contract close out. It involves deciding what must
be procured, issuing requests for bids or quotations, selecting vendors, administering contracts,
and closing them when the activity finished. Based on this the study was providing relevant areas
Table 6
Average 78 21 2 4
Source questioner, 2018
70
Fig 9. View of respondents regarding project procurement management
120
95 99
100 86 88 86
78 78
80
60
40
21
20 14 14 11 11
7 7 5 7
2 5 5 5 2 2 5 0 0 0 2 4
0
Yes No NA I/DK
In this regard 95 of the respondents assure the enterprises apply standard procuring practice.
suppliers were not good and transparent. Regarding the question the organization contract
organization procurement practice there are well trained and qualified staff members. As implied
from the above table and graph though in average 78 of the respondents assure the organization
have construction procurement documentation practice, but the rest 27 respondent shows there is
71
4.11 Construction Project safety Management
Construction project is executed with appropriate care to prevent accidents that cause or have the
potential to cause personal injury or property damage. Accidents and personal injuries and deaths
that results, have been, and are still a major concern in the construction industry both in terms of
humanitarian losses and the direct and indirect costs to the industry. In this regard the study
80 74
70
59
60 54 56 54
50 45 47 45
43
36 36 38
40
29 27
30
20 16
8 9 9 9
10 5 5 5 7 7 5 4
0 2
0
Safty planing inclusive Hazard Safety Safety Safty Audit Average
planning Analysis training control
process
Yes No NA I/DK
The study were also assessed whether the organization have use inclusive safety planning such
as, Staffing, budget, Records, and Documentation Requirements, in this regard 47 of the
respondents implied yes which is the organization use inclusive safety planning where they
engaged in project construction, while 43 of the respondents replied in oppose which is that the
organization didn’t not plan inclusive safety panning. Regarding to hazard analysis of the
72
organization, though 27 implied as there organization doing hazard assessment, however
majority of the respondents accounted for 54 implied the there is no hazard analysis practice in
Mach of the projects doing by the organization. Respondents accounted for 45 and 59
respectively also assure the enterprise didn’t apply safety controlling process and safety auditing.
In generala From the above verage graph the study analyzed that, though 38 respondents assure
that the organization use safety planning for some of the construction, however, the remaining
massive respondents accounted for 67 indicate that the organization didn’t use safety plan for
73
Chapter five
The major objective of the study was to assess construction project management experience in
Ethiopian Defense Construction enterprise delay in average of all projects by 28% (DCE report
2010 EC). The study was analyzed based on the data collected from professionals that engaged
DCE by primary method by using questioner and semi- structured interview and secondary datas
by using reports and organizational structure and plan of DCE. Generally the study was
assessing Construction Project management knowledge areas under through assessing several
relate areas such as. Management process, scope management, time management, cost
risk, procurement and safety management. Based on this the major finding of the study
conclude as follow:
Then the study regarding construction Prject integration process management that, the necessary
knowledge and awareness is high in the project management members by experience, training
and graduated from higher education but according to performance report of the projects are
delay by 28% even though the respondent of the management members indicate aware to
the projects. .
74
In relation to construction project management under the scope implied that, 75 of the
respondents indicate yes then it indicates the necessary knowledge and awareness of construction
Project scope management is still high in the project management members by experience,
training and graduated from higher education in the management members by Project
management knowledge areas. However according to 2010 E.C report of DCE shows about 30%
percent of its project plan is not accomplished then the scope of the projects were not considering
properly in the performance of its plan. In the same practice the awarnes of DCE projects 30
respondents implied there were also challenges in detailed process of scope determination, and
The finding regarding time management and its effect on construction management practice of
the organization implied that, though 66 of respondents assured the enterprises time management
was good, however the rest 40 implied there are also challenges to apply the necessary
knowledge and awareness of construction Project time management in DCE projects. When I
analys the questionary responds and DCE Projects performance 2010 ec report above 1.3 bilion
birr income is lose due to poor performance in the projects then it shows construction project
time management is very poor even though 66 respondent of DCE managements and
The findings regarding cost management experience of the study enterprise, 73 of the respondent
indicates the most enterprise accomplished their projects based on in good controlling
mechanisms of costs of projects, however, the remaining 36 are not aware to construction project
cost management knowledge area.the conclustion depend on the quetionary respond and DCE
2011 E.C halfe year project performance report indicates the plan was to perform about 2.3
Billion birr but the actual performance in six month was only 1.15 billion birr it shows 51% of
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the 29 projects plan of six month, there fore the researcher concludes even though about 73 of
the respondent indicates aware to construction project cost management the actual performance
of DCE projects from its plan indicates weak if the project delay from its plan the cost increases
DCE reports 2010 year and 2011 halfe year performance of projects indicate was not inhance
but it shows in 2010 year 72% perform its plan where as in 2011 decline the performance to 51%
from its plan. In the same way majority of the respondent indicates in the study were lack of
quality management practice of the construction projects. In this regard above half of the
respondents projects were not applied the necessary knowledge and awareness of construction
Project quality management practice in their projects and some of the members were not have
concludes the awareness to construction project quality management and the actual performance
DCE plans was very weak and exposed to unexpected expenses and failure.
From DCE projects actual performance anualu and semi annual report of 2010 and 2011 E .C
consucatively depend on its plan indicates declined from72% to 51% on the other hand the
and members of the projects have been tried to fulfill the necessary knowledge and experience
consruction tProject communications management the rest 38 of the projects respondents not
that even though the majority of respondent says aware to communication knowledge area they
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According to William R. Duncan (1996) stated that project risk management includes the
processes concerned with identifying, analyzing and responding to project risks. It includes
maximizing the results of positive events and minimizing the consequences of adverse events.
As report of DCE 2011 half year projects performance report indicate about 50% of plas failure
or not accomplished. In the same way construction project Risk management practice of DCE
shows from the finding about 64 of the projects didn’t aware and applied the necessary
accomplishing Projects plan is due to lack of awareness in construction project risk management
and the little awared respondents are not commited to executeed in their projects. .
From the study the construction project safety management awareness and practice of safety
construction project safety management practice due to lacks of awaernes to the knowledge
areas. Simelteunsely the 2010 and 2011 E.C projects performance report in average 62% of the
plan projects excuted there fore the researcher concludes the awarenese of construction project
safety management knowledge area and performance of the projects have direct relation it
shows poor awareness of safety as wel as poor performance of the projects plan.
From the study of human resource and procurement project managent shows almost above 79
of the respondents in the good performance practices. Then knowlegd related to this perspective
depend on the concepts of the literature is in positive status but according to 2011 and 2011 DCE
project porfarmance reports the main resource of human being and procurement of the project is
not play its role to managed depend on the knowledge theary.there fore the researcher concludes
eventhough the respondent in humanaresource ande procurement indicates in the good status but
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the actual porfrmance of the project is very poorn,then the awarnes of the management and
professional members are not committed to exrcise their awareness in their projects.
In general DCE Projects and head office management toward construction project management
knowledge areas are aware in average about 64 respondents from the total 105 participants but,
the remaining about 41 of the respondents are not aware to construction project management
knowledge area. In the same way according to DCE projects performance report 2010 2011 E.C
indicated is very weak.There fore I conclude DCE have high gap related to project management
knowledge areas in its management and professional employees and their projects actual
porfomance were influenced and fuilured due to lack of awareness in construction project
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5.2 Recommendation of the study
From the above conclusions the performance of DCE projects and the awarnese of construction
project management knowledge areas have dirrect relation,then depend on major construction
project management knowledge area the researcher forward recommendation in the following
ways;
One of the challenge that according to performance of their plans in DCE projects are very weak
then enterprise have to introduce cost base projects by developing the construction project cost
management and professional of the projects. To solve the challenge the study recommend that,
using comprehensive method of software is better, in order to facilitate planning, monitoring and
controlling project cost. The most Importatant programs used in construction organization in
order to control and monitor cost are: Excel and Ms project and most of the study organization
that accomplishing projects organizations are familiar with these software however there are
also organization that didn’t applied the method effectively and which affect the project
performances.
DCE has to be aware about best construction materials procurement competition, so it is advised
to purchase the construction materials at the beginning of work. It is also better to have time
schedule for material delivery process to the site in order to avoid shortage or lack of materials.
Even though respondents to contruction project time management indicates awared but the actual
performance of the projects are very far from its time plan then DCE have to implemented to
productivity and control or to avoid the greatest rate of time overrun of construction projects
managements.
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DCE have set up a computerized system to perform documentation process for all the activities
in the site, so they would be able to detect performance in the work and to follow the time
schedule continuously.
DCE had better monitor the quality of activities continuously and to set the required quality
system in the different activities of the project so as to avoid any error in quality that may lead
to rework of activities, and finally time and cost overruns. Quality have not been compromised
standards
In general the study recommends that, in order to enhance and improve to use optimize time ,
cost,quality,risk and safety performance of projects DCE head ffice and project management as
awarness. Planned time for project implementation should be more suitable for practice. Time
needed to implement variation orders and to rectify defects should be estimated and scheduled
without affecting project time completion. Having regular meeting among project participants
can also enhance performance. Construction organizations should have different incentive
systems in order to improve overall performance. In addition, they should have continuous safety
training and meeting in order to apply safety factors and achieve better performance.
DCE have to introduce human development program related to construction project management
knowledge areas to all managements and professionals becuese from the conclusion near halfe of
the respondents are not aware about the construction project management knoledg areas then it
needs high strives to develop human resources in this knowledge area to achieve over all of the
80
Reference Materials
1. Awodele, O. A. (2006). “An Assessment of the Involvement of Quantity Surveyors in the
Execution of Civil Engineering Projects in Southwestern Nigeria”, the Quantity Surveyor
54(1), 28-36.
2. Ashworth, A. & Hogg, K. (2007), “Willis’s practice and procedure for the quantity
surveyor”. (12th ed.). Oxford: Blackwell Science.
3. Badu, E. and Amoah, P. (2004) Quantity Surveying Education in Ghana, the Hgana
Engineer.
4. Defense construction Enterprise HRM manual (2013)
5. FIDIC(2010),” Multilateral Development Bank Harmonized Edition”
6. FDRE (2006) PPA standards, public procurement and property disposal services
7. Getachew Teka (2004) Project Management, MBA/MA Course Module
8. Harold K. (2009) Project Management, A Systems approach to planning, scheduling, and
Controlling. Tenth Edition. The International Institute for Learning New York,
9. HARRISON NJAMU(2004),an evaluation of construction project cost management for
public works, Botswana, university of Pretoria, Department of construction economics.
10. James.p Lewis (2007) Fundamentals of project Management Third Edition, Broadway,
New York, NY 10019
11. John. P. Muldoon (2014) abstract a remarkably concise summary of the MPBOK 5th
edition, [email protected].
12. Miller, L. & Lessard, D. (2000). “Introduction”, Strategic Management of Large
Engineering Projects: Shaping Institutions, Risks, and Governance: MITPress, Harvard
13. Kim Heldman (2009) Project management professional exam study guide fifth edition,
publishing published simultaneously in Canada ISBN: 978-0-470-45558-6
14. Ministry of works and Urban Development standard Condition of Contract For
Construction of Civil work Projects( December1994)
15. Ofori, G. (2001). Challenges of Construction Industries in Developing Countries:
Lessons from Various Countries. Department of Building, National University of
Singapore, Singapore 117566
16. Eda Buchner(2015) Project cost management, conference paper,
81
17. PMI ( 2003) construction extension to a guide to project management body of knowledge
guide, 2000 edition, published :PMI, inc, four campus boulevard, New Ton square
Pennsylvania 19073-3299 USA
18. Rita Mulkahy, PMP (2009) Rapid learning to pass PMI’s PMP exam on the first try,
publication RMC, INC, USA.
19. Said, I., and Omran, A. (2010) The Compentency Requirements for Quantity Surveyors:
Enhancing Continuous Professinal Development. Acta Technica Corviniensis, Bulletin of
Engineering, Fascicule3, July-September, 105-112.
20. Abdulkadir Sani (2015) System In Building Projects. Journal Of Multidisciplinary
Engineering Science And Technology (JMEST) ISSN: 3159-0040 Vol. 2 Issue 4, April –
2015,Nigeria Department of building ,faculty of environmentTechnology.
21. Thomas E.(2003) programming and scheduling techniques, published by university New
south Wales press ltd., UNSW, Sydney,NSW,2050 ,Australia.
22. Usman, N. And Sani, A. (2015). Construction Professionals Perceptions’ On Contract
Auditing.
23. William R. Duncan (1996), A guide to project management body of knowledge, PMI
standard committee, Newton square, PA 19073-3299 USA.
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Appendix
This questioner is provided to assess whether and to what extent each of the Project Management
knowledge areas and processes are being applied in managing construction projects in Ethiopia
in general and, in Defense construction Enterprise (DCE) in particular. Therefore, your
cooperation will contribute in providing effective research output and bring information about
Project Management Maturity and Capability in construction firms.
Thank you
Researcher:: Tesfahun G/mariam
E-mail:[email protected]
Mobile: 0947384175
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Part II- Project management Knowledge areas practice questions
General Direction
Answer all the Questions that follow based on your knowledge of practice of Project
Management in the project you are participating or in the enterprise you are working...
Please Choose:
Yes: If the description approximates the condition in your project (organization).
No: If the description does not come close to the condition in you project (organization).
N/A: (Not applicable): If you think the practice or the description is inapplicable for your
case.
I/DK (I do not know): If you do not have information/knowledge about the question
Response
1 Construction Project management process YES NO N/A I/DK
Is the need and benefit of Construction Project Management
1.1 recognized by your organization management ?
Does your Enterprise’s Management provide support for
1.2 Construction project management development?
Does your enterprise have a central project office that provides
1.3 Project management support for the projects of the enterprise?
Does your enterprise have standard project management
1.4 Process and methodologies?
Does your enterprise provide project management training for
1.5 its project management team ?
Do project managers of your enterprise have solid knowledge
1.6 base of project management?
Are project management processes, methodologies and
procedures applied formally in managing projects in your
1.7 enterprise?
2 Construction Project scope management
Is there awareness about the need or importance of project
scope management in your enterprise’s and project management
2.1 teams?
Are there any efforts of managing project scope in your
2.2 enterprise or projects?
2.3 Is the effort of scope management formal?
Are computer application or tools used in scope management
2.4 Processes?
2.5 Is the project’s scope defined?
Is there any effort of monitoring and controlling scope in your
2.6 project
2.7 Are work results reviewed or inspect to insured or verified that
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all scope of the work is completed?
3 Construction Project time management
3.1 Does the enterprise prepared Scheduled time plan of the projects
Is there networked Scheduling methods such as, CPM or PERT
3.2 using
3.3 Does the company prepared time plan for specific activities
Does the enterprise use historical data in time scheduling and
3.4 estimation duration of activities
Does the enterprise monitor progress of activities based on their
3.5 time schedules
3.6 Does the enterprise updated schedule
4. Construction project cost Management
4.1 Is there Formal cost management procedure?
Does the Enterprise prepared breakdown of estimated project
4.2 cost?
Does the budget shows the amount allocated for resources by
4.3 category?
4.4 Is the budget updated regularly?
4.5 Is there any effort to monitor and controlling the project cost?
5. Construction Project Quality Management?
5.1 Is there formal quality management procedure?
Does quality assurance activities implemented in your
5.2 project?
5.3 Does quality audit done in your project?
5.4 Does total quality management implemented in your projects?
Is there quality management department or specialized in
5.5 quality management?
6. Construction Project Human Resource Management
6.1 Is there any planning for acquisition and management of
human resource?
6.2 Is Project organization chart prepared in the project level?
6.3 Are skill requirement, role and responsibilities defined for all
project position?
6.4 Is there training provide for project team members?
7. Construction Project Communication Management
7.1 Is Project communication requirement analysis performed in
your project
7.2 Is a strategy plan to address identified communication needs?
7.3 Does your project have a system for handling a project
document?
7.4 Does your project have a system to collecting and distributing
information?
7.5 Are performance reports prepared and provided to relevant
stakeholder?
7.6 Is a strategy developed for managing each key stakeholder’s
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expectation?
8. Construction Project Risk Management
8.1 Is risk management performed formally in your
project/enterprise?
8.2 Is there any effort of identifying and documented risks in your
project?
8.3 Are risks prioritized based on factors such as impacts,
probability and urgency?
8.4 Is there risks response plan and strategy continuously updated?
8.5 Is contingency budget reserved for potential risk impact?
9. Construction Project Procurement Management
9.1 Is planning for procurement of goods and services needed for
your project?
9.2 Does your project/enterprise have standard documents?
9.3 Does your enterprise use preferred supplier/ subcontractor or
prequalify them?
9.4 Does your project/enterprise have a documented contract
management/administration process?
9.5 Does your project/enterprise have a staff trained in
contract/procurement management?
9.6 Does your project monitor and control progresses of sub
contractor and suppliers?
10. Construction Project safety Management
10.1 Is Safety planning performed in your project? ( determining
safety standards and requirements , and devising actions
plan/strategies
10.2 Does the safety management plan include Staffing, budget,
Records, and Documentation Requirements?
10.3 Is Safety audit done in your project?
10.4 Is Hazard Analysis performed for activities of your project?
10.5 Does your enterprise provide Safety training for workers?
10.6 Is Safety control process implemented in your project?
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Part-III የህንፃ ፕሮጀክቶች የ2010 በጀት አመት አፈጻጸም በ/000,000ብር/
87
የመንገድ ፕሮጀክቶች የ2010 በጀት ዓመት አፈጻጸም (በ000,000) ብር
88
የህንጻና ቤቶች ግንባታ ፕሮጀክቶች የ2011 በጀት ዓመት የአምስት ወራት የአሃዝ አፈጻጸም
(በ000,000)
89
የመንገድ ፕሮጀክቶች የ2011 በጀት ዓመት አምስት ወራት የአሃዝ አፈጻጸም
(በ000,000)
90
1