FACTORS AFFECTING PROJECT SCHEDULE AND COST PERFORMANCE IN THE

CONSTRUCTION PROJECTS IN THE CASE OF ADAMA CITY ADMINISTRATION

SELECTED SECTORS

HARAMBEE UNIVERSITY

POSTGRADUATE OFFICE

DEMISEW HORDOFA

A THESIS SUBMITTED TO HARAMBEE UNIVERSITY DEPARTMENT OF PROJECT

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF PROJECT MANAGEMENT (MPM)

ADVISOR

MESSELE KUMILACHEW AGA (PHD)

ADAMA, ETHIOPIA
DECEMBER, 2024
Declaration

I, Demisew Hordofa, hereby declared that my thesis entitled “Factors Affecting Project Schedule and
Cost Performance in the Construction Projects in the case of Adama City Administration Selected
Sectors” is my original work and has not been submitted to the award of any degree in any other
university, and all source of material used for this work have been duly acknowledged.

Student Name: Signature: Date

_____________________ ………………… …………….

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Advisor’s Certification

This is to certify that the student known as Demisew Hordofa has produced a thesis entitled “Factors
Affecting Project Schedule and Cost Performance in the Construction Projects in the case of Adama
City Administration Selected Sectors” submitted in partial fulfillment of the requirement for the
Degree of Master of Project Management (MPM) in Project Management. Therefore, I recommend
that the student has fulfilled the requirements and hence the paper submitted is correct.

Name of Advisor Signature Date

_________________ _________________ ____________

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Board of Examiner’s Approval

As members of the board of examiners and thesis research advisor, of the final open defense by
Demisew Hordofa have read and evaluated his thesis for approval.

Name of the Chairperson Signature Date

Name of the Advisor Signature Date

Name of Internal Examiner Signature Date

Name of External Examiner Signature Date

iii
Acknowledgements

First and foremost, I express my gratitude to God for his immense love and support from
beginning to now. I give him the honor and glory for his goodwill, assistance and for giving me
the courage and endurance to start the graduate study proposal.

Next, I would like to express my deep appreciation to my advisor Messele Kumilachew (PhD)
for his guidance and intellectual criticism.

My thanks and heartfelt appreciations go to Adama City Administration (ACA) for allowing me
to pursue my academic career and for their willingness to provide information.

Furthermore, I would like to extend my appreciation to all staff members of ACA selected
sectors staffs for their collaboration and providing necessary data and information for my study.

Moreover, my especial thanks go to my colleagues for their support during data collection by
printing and duplicating questionnaire and also supporting by providing different materials.

Finally, my deepest heartfelt appreciation and very special thanks goes to my beloved family for
their unfailing support and encouragement.

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Table of Contents

Declaration...............................................................................................................................................i
Advisor’s Certification............................................................................................................................ii
Examiner’s Approval.............................................................................................................................iii
Acknowledgement..................................................................................................................................iv
Table of contents.....................................................................................................................................v
Abbreviations and Acronyms..................................................................................................................v
Lists of Tables........................................................................................................................................ix
List of Figures.........................................................................................................................................x
Abstract..................................................................................................................................................xi
Chapter One.............................................................................................................................................1
1. Introduction.........................................................................................................................................1
1.1. Background of the Study..................................................................................................................1
1.2. Problem Statement...........................................................................................................................4
1.3. Research Questions..........................................................................................................................6
1.3.3. Hypothesis………………………………………………………………………………….6
1.4. Objectives of the Study....................................................................................................................6
1.4.1. General Objectives…………………………………………………………………………6
1.4.2. Specific Objectives…………………………………………………………………………6
1.5. Significance of the Study.................................................................................................................7
1.6. Scope of the Study...........................................................................................................................7
1.7. Limitation of the Study....................................................................................................................7
1.8. Operational Definitions....................................................................................................................7
1.9. Organization of the Study................................................................................................................8
Chapter Two............................................................................................................................................9
2. Review of Related Literature..............................................................................................................9
2.1. Theoretical Review..........................................................................................................................9
2.1.1. Overview of Ethiopian Construction Industry……………………………………………..9
2.2. Construction Projects.......................................................................................................................9
2.3. Construction Projects and Performance.........................................................................................10
2.4. Factors Affecting Budget and Schedule Performance....................................................................11
2.5. Project Schedule.............................................................................................................................11
2.6. Project Delays in Construction Projects.........................................................................................12
2.6.1. Classification of Delays in Construction Projects………………………………………...12

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2.7. Factors for Construction Project Delay..........................................................................................12
2.8. Strategies for Minimizing Cost Overrun........................................................................................14
2.9. Empirical Review...........................................................................................................................14
2.9.1. Construction Projects and Performance…………………………………………………...14
2.9.1.1. Resource Management Related Factors
………………………………………………...152.9.1.2. Procurement Management Related
Factors…………………………………………….152.9.1.3. Stakeholder Management Related
Factors……………………………………………..162.9.1.4. Quality Management Related
Factors………………………………………………….17
2.10. Research Gaps…………………………………………………………………………….18
2.11. Conceptual Framework……………………………………………………………………19
Chapter Three........................................................................................................................................20
3. Research Methodology......................................................................................................................20
3.1. Description of the Study Area........................................................................................................20
3.2. Research Design.............................................................................................................................20
3.3. Research Approaches.....................................................................................................................21
3.4. Sampling Design............................................................................................................................21
3.4.1. Target Population…………………………………………………………………………21
3.4.2. Sampling Frame…………………………………………………………………………..22
3.4.3. Sample Size……………………………………………………………………………….22
3.4.4. Sampling Technique………………………………………………………………………22
3.5. Data Types and Sources.................................................................................................................22
3.6. Data Collection Tools.....................................................................................................................23
3.6.1. Questionnaire……………………………………………………………………………..23
3.6.2. Interview………………………………………………………………………………….24
3.7. Data Analysis Tools........................................................................................................................24
3.8. Validity and Reliability of Instruments..........................................................................................25
3.8.1. Validity……………………………………………………………………………………25
3.8.2. Reliability of Instruments…………………………………………………………………26
3.9. Ethical Considerations...................................................................................................................27
Chapter Four..........................................................................................................................................28
4. Data Presentation, Analysis and Interpretation.................................................................................28
4.1. Socio-Economic Characteristics of Respondents...........................................................................28
4.2. Factors Affecting Performance of Construction Projects...............................................................30
4.2.1. Resource Management Related Factors…………………………………………………..30
4.2.2. Procurement Management Related Factors……………………………………………….32
4.2.3. Stakeholder Management Related Factors………………………………………………..33
4.2.4. Quality Management Related Factors…………………………………………………….35

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4.3. Inferential Statistics........................................................................................................................36
4.3.1. Correlation………………………………………………………………………………..36
4.3.2. Regression Result…………………………………………………………………………37
Chapter Five..........................................................................................................................................41
5. Summary, Conclusion and Recommendations..................................................................................41
5.1. Summary of Major Findings..........................................................................................................41
5.2. Conclusion......................................................................................................................................42
5.3. Recommendations for Policy Intervention.....................................................................................43
References.............................................................................................................................................45
Appendices............................................................................................................................................48
Questionnaires and Interview Guided Questions..................................................................................48

Lists of Abbreviations and Acronyms

ACA Adama City Administration

AATSS Adama Administrative Town Selected Sectors
HU Harambee University

vii
IBM International Business Management
SPSS Statistical Package for Social Science
TQM Total Quality Management

Lists of Tables

Table 3.1 Sample Size

Table 3.2 Cronbach's Alpha for each filed of the questionnaire

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Table 4.1: Respondent Educational Level, Work Experience, and Job Position
Table 4.2: Resource Management Related Factors
Table 4.3: Procurement Management Related Factors
Table 4.4: Stakeholder Management Related Factors
Table 4.4: Quality Management Related Factors
Table 4.5: Pearson Correlation Coefficient Matrix
Table 4.6: Results of Multiple Regression Analysis

List of Figures

Figure 2.1: Conceptual Framework………………………….……………………………..…………19

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Figure 4.1 Job Positions of Respondents

Abstract

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The construction industry plays an indispensible role in the Ethiopian economy and is a significant
contributor to economic growth. Project schedule and cost performance are both methods to measure
the efficiency of a project. The purpose of this study was to assess factors affecting project schedule
and cost performance of construction projects in the case of Adama City Administration Selected
Sectors (AATSS). A descriptive study design and mixed research methods were adopted. The
sampling techniques were purposive, availability and systematic random sampling techniques. The
data were collected through in-depth interview, close and open-ended questionnaires. The methods of
analysis were done qualitatively in words and quantitatively using percentage, frequency and
standard deviation by using SPSS version 26. Findings showed resources and procurement
management related factors affecting schedule and cost performance of constructions projects in
ACA selected sectors were fluctuation in building materials, cash flow and financial difficulty face by
contractors, lack of cost planning/monitoring during pre and post contract stage, wrong estimation,
change in the scope of the project, political interference, lack of cost report during construction
stage, repeated design change, lack of updated cost data, risk and uncertainty associated with
project. In addition, quality and stakeholders management related factors were fluctuation in
material price, inexperienced consultant, late procurement and delivery of materials, difficult in
financing project by contractor, ineffective planning and scheduling of project by contractor, delay in
approving major change in the scope of work by consultant, incomplete design, poor site
management and supervision by contractor, late payment by main contractor to subcontractors. The
strategies to minimize delay and cost overrun of constructions projects in Adama City Administration
selected sectors were appropriate prominence on previous experience; regular coordination between
the associated parties; increasing human resources and proper monitoring and follow ups of
contractors, undertaking a preconstruction planning regarding the procedures and resources of
project could be a proactive, reactive, and organizational strategies. As a result, such factors affect
both cost and time schedule and performances of projects. The study recommends that in order to
benefit more and be successful in project implementations, and its performance, Adama City
Administration and its selected sectors should manage factors affecting cost and time performance.

Keywords:- Affecting Factors, Construction, Project Schedules, Project Cost Performances, Sectors

ACA and its selected sectors should manage factors affecting cost and time performance.

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 Chapter One

1. Introduction
1.1. Background of the Study
In the construction industry, making sure a project is completed on time, within budget and by achieve
other project objectives is the aim of project control. It is a task which is complex undertaken by
project managers in practice, which involves constantly measuring progress, evaluating plans and
taking corrective actions when required (Kerzner, 2003). A construction schedule shows how a project
is to be completed or constructed in either a written or graphical representation. Using a construction
project, schedule in project management tool is the one that can forecast when the project will finish
(Nagata, 2017). According to Chitkara (2011), cost is defined as the accounted expenditure which the
owner has agreed to commit for creating/acquiring the desired facility. Within the development
industry, there's a real taken a toll that's decided at the time of completion of extend whereas at the
beginning of the project there will be an evaluation taken a toll which could be a budget or forecast
taken a toll. Completing ventures on time is a pioneer of productivity but the development handle is
subject to numerous factors and eccentric variables which result from numerous sources. These
sources incorporate the execution of asset accessibility, natural conditions, association of other
parties, and legally binding relations. However, it is not usual that a project can be completed within
the specified time. For a productive construction, the project is needed to be completed on time with in
the available budget. But most of the time, this is only ideal in the construction industry. There are
many factors that affect the cost and schedule performance in the construction industry. The contractor
can be entitled to extension of time if a construction project is delayed due to the client’s reason. This
in turn comes with additional payment for time related cost like profit and overhead cost said
(Tuyishime, 2016). Due to delays, there will be increase in interest rate and escalation of construction
cost and this in turn will increase the construction project cost. Delay causes cost overrun for both the
owner and contractor. Delay causes loss of expected profit from the owner’s point of view and it
means an increased overhead from the contractor’s point of view. The cost performance and schedule
performance are the main measures of performance of a construction project. The first step towards
measurement of the performance of the building projects involved the determination of measurement
criteria. Three criteria: time, cost and quality objectives have been adopted for the project performance
measurement.
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Therefore time performance index, cost performance index and quality performance index were
computed; the time and cost performance were computed objectively by formula, which measured
planned against actual whilst the quality performance was subjectively measured by ranking
satisfaction with quality of the completed project.

Previous studies claimed that lots of factors have a big impact on time and cost outcomes. Time and
cost performance in construction project are influenced by some variables such as external conditions,
project characteristics, design team characteristics, project team performance, procurement system,
contractor characteristics and client characteristics (Ngacho, 2015) .
The project management is needed to coordinate and to synchronize the planned cost and schedule to
achieve the project goals. The character of the project, such as unique, uncertain, long-duration nature,
and complex make it difficult to predict time and cost projects (Lu W, Hua Y & Zhang S, 2017). Large
number of performance indicators that could be measuring and evaluating project performance that
could be related to various dimensions (Creedy G D, Skitmore M & Wong J K W, 2010). Earned value
management (EVM) is one of project controlling tools which integrate cost and schedule aspects
(Nadafi S, Moosavirad S H and Arafat, 2019). It approaches provides ideas to performance along with
variance indexes which should be used to quantify specific construction achievement and situation.
Moreover, that can be used to determine the efficiency and effectiveness of past actions of a project
about time and cost (Hwang B G, Tan H & Satish, 2013). Studies conducted to examine factors
impacting on project performance in developing countries identified shortage of skills of manpower,
poor supervision; poor site management, unsuitable leadership, shortage and breakdown of equipment
among others contribute to construction delays in the United Arab Emirates (Faridi et al, 2006).
According to Ajayi et al. (2010) the choice of contractor(s) is a critical factor for the project manager
and usually has a significant impact on the success or failure of a project. The performance of a
contractor will definitely correlate with the performance of the contract. He further observed that the
evaluation of performance has been a challenge for the construction industry for decades. Several
models and methods have been proposed by researchers for the evaluation of project performance.
However, most of these procedures limit their analysis to selected measures such as cost; schedule or
labor productivity for construction performance embraces client’s satisfaction, time performance, cost
performance, construction quality and sustainable development (Ajayi et al, 2010).
A research done by Tatiana (2005) specified that project participants, project procedures, human
aspects and environment affect project performance. These factors are associated with the different
parties who involved in construction project, and each of them will play their roles contributing to the
2
success of a project. It is widely believed that the performance of projects consist of the performance
of all stages with each other to result in the final performance according to time, cost and quality and
others factors.
A construction schedule shows how a project is to be completed or constructed in either a written or
graphical representation. Using a construction project schedule as project management tool one can
forecast when the project will finish (Mark Nagata, 2017). According to (Chitkara, 2011) cost is
defined as the accounted expenditure, which the owner has agreed to commit for creating/acquiring
the desired facility.Within the development industry there's a real taken a toll that's decided at the time
of completion of the extend whereas at the begin of the project there will be an evaluated taken a toll
which could be a budget or forecasted taken a toll of the venture.The contrast between the two costs
will tell us in case there's a cost overrun or not.
Completing ventures on time is a pointer of productivity, but the development handle is subject to
numerous factors and eccentric variables, which result from numerous sources. These sources
incorporate the execution of parties, assets accessibility, natural conditions, association of other
parties, and legally binding relations. However, it is not usual that a project can be completed within
the specified time.
For a productive construction the project is needed to be completed on time with in the budget. But
most of the time this is only ideal in the construction industry. There are many factors that affects the
cost and schedule performance in the construction industry.
The contractor will be entitled to extension of time if a construction project is delayed due to the
client’s reason. This in turn comes with additional payment for time related cost like profit and
overhead cost said (Tuyishime, 2016). Due to delays there will be increase in interest rate and
escalation of construction cost and this in turn will increase the construction project cost. Delay causes
cost overrun for both the owner and contractor. Delay causes loss of expected profit from the owner’s
point of view and it means an increased overhead from the contractor’s point of view. The cost
performance and schedule performance are the main measures of performance of a construction
project.
A successful building project is the one which is completed within the planned timeline and allocated
budget. However, in Adama City Administration (ACA), many of the public construction projects
were facing problems of scarce project financial resources that result in unscheduled time and costs
overrun. By the same token, the construction projects that were completed in the ACA lacked quality
and better performance due to different affecting factors.

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Therefore, this study aims to assess factors that affect project schedule and cost performance of
construction projects in the case of Adama City Administration Selected Sectors (AATSS).

1.2. Problem Statement

Construction delays are around the world wonder that happens in most development ventures and the
greatness of these delays shifts impressively from extension to extension. Agreeing to Aibinu (2002),
found that development ventures in Africa is taken a toll overwhelms were experienced due to
development delays. Besides, Mohammed and Issah (2012) conducted a survey on ventures in creating
nations and found that they were encountering development delays and were being deserted. Delays in
a construction project could be a widespread issue and has gotten to be a major endemic confronting
the Ethiopian construction industry. Delay in this sense could be a circumstance when the temporary
worker, the project proprietor or several other variables together or severally contribute to the non-
completion of the project inside the initial or the stipulated or concurred contract whole and concurred
contract period.

Previous studies claimed that lots factors have a big impact on time and cost outcomes. Time and cost
performance in construction project are influenced by some variables such as external conditions,
project characteristics, design team characteristics, project team performance, procurement system,
contractor characteristics and client characteristics (Das D & Ngacho, 2015).

Among the construction projects executed, cost overrun is one of the major issues in Ethiopia (Ashebir
et al, 2017). According to Tadele (2018), plan and taken a cost of a project construction is influenced
in numerous ways. This issue in turn is causing challenges in financing of up and coming ventures,
convenient utilization of the office by the open and the relationship among partners (clients,
contractors and consultants) included within the construction process.

Subsequently, distinguishing proof of the root causes of the challenges and indicating the conceivable
ways out with partners are basic issues to calculate. In doing so, this inquires about serious to
recognize basic causes for cost overrun and time varieties of Ethiopian construction project consists of
challenging processes in the project management plan to satisfy the project specifications. This
involves coordinating people and resources, as well as integrating and performing the activities of the
project in accordance with the project management plan (Anyango, 2016).

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Public projects are needed to be completed within the time frame, budgeted cost and required quality.
However, unfortunately many projects take longer time to complete, cost more than necessary and
some projects were cancelled because of various factors directly and indirectly related with it. Project
failures have significant effect from economic as well as political points of view. If the project takes
longer time it requires additional resources and budgets and this increases labor, material, machinery
and equipment cost (Tekalign, 2014).

This affects the budget of other projects and in general, it affects the economy of the country.
Similarly, due to delay in project implementation the people and the economy have to wait for the
provision of public and services facility longer than necessary. Thus, failure of project limits the
growth of the economy because the output provided by Infrastructure, construction, manufacturing,
and IT projects serve as input for many other economy input of the country (Lemma, 2014).

According to a study by H/Mariam (2013), the inability to complete projects on time and within
budget continues to be a chronic problem worldwide and is worsening. The trend of cost overrun is
common worldwide and that it is more severe in developing countries. Generally, a project passes
through a cycle involving different stages including implementation. The success of any project is
measured in terms of three important dimensions such as time, cost and quality (H/Mariam, 2013).

Most of the above studies mainly focused on one aspect of performance issues mainly cost and time
instead of assessing the factors behind the failures and strategies to minimize them. Therefore, this
study focuses on identifying affecting factors for schedule and cost performance and the strategies to
be used to help improve performance of the future construction projects.

2023 reports from ACA Municipality Office showed that there were failures of construction projects
mainly related to failure in performance due to many factors which attribute to these problems. In
addition to this, from the observation of the researcher, there are low performances of the building
construction projects in terms of cost and completion time. Despite such problems, there were no
studies carried in the issues under study in Adama City Administration selected sectors. The problems
in the construction of projects is not managing these cost and time performances clearly but to find
answers that contribute to the body of knowledge as well as discovering the reasons behind the poor
performance in terms of time and cost of construction projects in ACA.

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Therefore, in order to fill these gaps, this study is therefore designed to assess factors that affect
project schedule and cost performance of construction projects in the case of Adama City
Administration Selected Sectors (AATSS).

1.3. Research Questions

1. What are the resources, procurement, stakeholder, and quality management related factors that
affect schedule and cost and performance of projects in ACA selected sectors?

2. What are the strategies to minimize delay and cost overrun of constructions projects in ACA
selected sectors?

1.4. Objectives of the Study

1.4.1. General Objectives
The general objective of the study is to assess factors that affect project schedule and cost performance
of construction projects in the case of Adama City Administration Selected Sectors.

1.4.2. Specific Objectives

The specific objectives of the study are:

 To identify resources and procurement management related factors affecting schedule and cost
performance of constructions projects in ACA selected sectors
 To identify quality and stakeholders management related factors affecting cost performance of
constructions projects in ACA selected sectors
 To identify the strategies to minimize delay and cost overrun of constructions projects in ACA
selected sectors

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1.5. Significance of the Study

Critically thinking of construction projects performance for ensuring growth and development of a
given nation and looking at the resource constraints, ranging from human resource to financial
constraints, poor capacity of contractors, week implementation capacity of the implementer and others,
it necessary to investigate factors that are important for a construction projects performance and
identify the most influential ones that are determining the effective implementation. This research
output can contribute a lot to those parties who have similar objectives and seek information on issues
related to the study under investigation. The result of this study is significant in various aspects. It
contributes for serving as a useful source of information for project managers, development planners,
practitioners, researchers and academician who are engaged in project activities and by determinant
factors related to project implementation practice in the organization that negatively affect project
implementation. Specifically, this study would have significant contribution to ACA selected sectors
such as Construction office and Municipality to provide information for cost and performance of
constructions projects to focus on affecting factors of construction project schedules and cost
performances. Likewise, the study would also contribute to owners of projects especially residents of
the 4 kebeles that have youth centers and public meetings halls to make careful follow ups to be
completed on the stated schedules and costs. In addition to this, some researchers would use this study
as a resource to make further research on the issues under study.

1.6. Scope of the Study

The study focuses on the factors that affect project schedule and cost performance of construction
projects in the case of Adama City Administration Selected Sectors. This study was delimited to
resource management, procurement management, stakeholder management and quality management
related factors affecting the performance of public construction projects. Methodologically, the study
was delimited to descriptive design, mixed methods using purposive & systematic random sampling
techniques.

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1.7. Limitation of the Study
This study did not cover all professionals and experts in the sector and other affecting factors due to
time and financial limitation. By the same token, some of the respondents did not return the
questionnaires whereas some participants were not willing to be interviewed and others were occupied
by meeting. By all means, the researcher collected the available questionnaire on time and analyzed
them and approached some interviewee smoothly and carried out the processes with them.

1.8. Operational Definitions

Project: is an assignment that has to be undertaken and completed within a set time, budget,
resources and performance specification designed to meet the needs of stakeholders and
beneficiaries (Kerzner, 2003).
A public project: is a project carried out primarily for public benefit (Gasik, 2016).
Project implementation: is the activity based phase of the project life cycle, and this
involves putting the plan into action (Watt, 2014).

1.9. Organization of the Study

This study comprised five chapters. Chapter one dealt with introduction, background of the study,
statement of the problem, objectives of the study, research questions, and significance of the study,
delimitation, limitation and organization of the study. Chapter two dealt with review of related
literature. Chapter three dealt with research methodology and design that will be used to carry out this
research. It starts with the research design, population, types of data collection, and methods of data
analysis. The last section of this part discusses about the reliability, validity and ethical consideration
of this particular research. Chapter four dealt with data presentation, analysis and interpretation or
discussions of results. Chapter five dealt with conclusions and recommendations based on the findings
of the study.

8
 Chapter Two

2. Review of Related Literature

2.1. Theoretical Review
2.1.1. Overview of Ethiopian Construction Industry

In Ethiopia, construction is an important sector for its economic development. Due to many reasons
the country is not working in its fullest potential but construction is still the prime factor for
development of the country. Growth in this sector is critical for growth in national income. As
construction is among the largest sectors that generates employment within the country as well as a
key indicator of the economy of Ethiopia growth in this sector is critical for the growth in national
income. Many developing countries are facing also cost and time related issues among which cost
overrun is quite prominent (Medhanit, 2019).

2.2. Construction Projects

Researches show that construction projects have their characters which differentiate them from
other types of projects. Hidaya (2011) stated that construction projects require skilled management, as
they are complicated and face many challenges and constraints such as cost, time regulations,
materials and environmental rules or customs. In construction projects, several activities happen and
take place at the same time, but still are connected and integrated. Therefore, we need thorough and
effective communications and cooperation to manage and control these activities. Construction
projects are characterized as very complex projects where uncertainty comes from various sources
such as technical, legal, natural, social, economic, financial, commercial and political; these may differ
according to the specialty of each project. According to Aburizk (2010), construction projects differ
from other projects in that construction projects have the following features.
Construction is typically undertaken at a fixed location or site, requiring a closer look at the logistical
complexities involved. The building materials and resources required will have to be procured and
taken to the site. Where the works are significant in scope, working space, traffic management,
security, public health, safety and the environmental impact of the operations will all have to be given
consideration.

9
Weather creates uncertainty for any project. In Ethiopia most of the road projects closed on summer
due to rain fall. In other parts of the world, temperature, snow, water, and sand can have a negative
impact on the progression of works.

In modern construction, the introduction of new materials and technologies, methods, and
requirements for sustainable or green development, can all contribute toward increasing levels of risk
and complexity. Thorough project planning, design, research, and procurement can aid in their
reduction and management.

The uniqueness of construction projects also mean that the external influences and constraints would
be different, yet subject to change throughout the project timeline. These can include rates of
technological change, sources of financing, market forces, climate change, politics, and changing
client requirements.

Differing members of the project organization have balance conflicting commercial business interests
and against achieving the aims and objectives of the project. For example, contractors may focus more
on profit maximization and less on the other parameters which define project success. Clients on the
other will seek to have the asset delivered in the shortest time possible, at the lowest cost, with the
highest quality. Consultants, based on their contractual arrangements, may seek to also maximize
their incomes, by limiting their time on the project. This offers a very complex landscape which has to
be navigated, and often doesn't work to the best advantage of the project itself.

2.3. Construction Projects and Performance

The ultimate goal for every project is project success. Success of construction projects depends mainly
on performance of the project. Many researchers have studied building projects performance. When a
project is completed within the stated budget, on schedule, conform to user expectations, meet
specifications, and achieve quality of workmanship and with minimized construction aggravation the
project is considered to be successful. On the other hand, the major cause of bad performance in
construction projects is inappropriate selection of procurement method. Thomas (2002) recognized
relationship with clients, relationship with consultants, financial stability, progress of work,
management capabilities, standard of quality, health and safety, resources, claim and contractual
disputes, relationship with subcontractors, reputation and amount of subcontracting as the main
performance criteria of construction projects.

10
2.4. Factors Affecting Budget and Schedule Performance
Many researches in developing countries especially in Africa have made progress in determining the
factors affecting schedule performance in a construction project. Muya M and Mumba (2009)
explained in their study that the major factors that affects schedule performance in construction
projects were financial deficiencies on the part of the client or contractor, delayed payments, economic
problems, contract modification, material procurement, staffing problems, changes in design drawings,
poor supervision, equipment unavailability, construction mistakes, changes in specifications, labor
disputes, and strikes, poor coordination on site.

Agaba (2009) attributes delays in construction projects to problems associated with management
and supervision and poor designs and specifications. In their study, El-Razek, Bassioni, Mobarak,
(2008) found that coordination difficulty, delayed payments, and poor communication were important
factors that affects delays. Kouskili and Kartan (2004) identified the main factors affecting cost and
time overrun as unreliable sources of materials on the local market, inadequate/inefficient equipment,
tools and plant, and site accidents.

According to Iyer and Jha (2005), the budget performance of a building project may be affected by
different factors like project managers competitiveness, participant monitoring and feedback,
competence of owners, coordination of project managers and other participants, support from senior
managers, leadership skills, decision making. Project budget is considered as common measures used
to measure performance of the project budget.

2.5. Project Schedule

Stallsworth (2009) defines project schedule as a tool used to help manage resources and tasks, and it
will help to guide a project to a successful completion. Individual tasks identified in the schedule are
given a duration consisting of a start and end time. For milestones to be set at significant points
within the project schedule, resources will be assigned to the tasks. He stated that milestones are
very useful features of a schedule. They are significant events that helps a project to have a progress
and which can be helpful for senior management. To achieve project period deadlines it is crucial to
use creative method of scheduling as there are project management software like schedule
performance measurements and project scheduling methods like.

11
2.6. Project Delays in Construction Projects
In construction, delay could be defined as the time overrun either beyond the date that the parties
agreed upon for delivery of a project or beyond completion date specified in a contract (Sadi etal,
2006). It is a projects leaping over its planned schedule and it is considered as common problem in
construction projects.

2.6.1. Classification of Delays in Construction Projects

Construction project delays can be caused by many factors. Delays are classified into three categories
contractor related delays, consultant related delays and external factors related delays. Ochoa (2013)
on the other hand categorized delay as concurrent, excusable, or non-excusable. Theodore (2009) has
also classified delay into four parts Excusable or non-excusable and critical or noncritical factors
affecting time performance.

The consequences of construction time overrun when undertaking a building construction project
affects all project parties, with issues like extra cost. The massive issues of the development sector in
developing countries are categorized in three groups as shortage of infrastructure, problems brought by
clients and consultant and eventually incompetent contractors (Ogulana & Promkuntong, 2016).

2.7. Factors for Construction Project Delay

Completion of construction project with intended budget is frequently seen as major criteria of project
success by clients, contractors, and consultants and related stakeholders (Zinabu & Getachew, 2015).
Construction industry now a days is facing severe problem of poor cost management leading in huge
amount of cost overrun. The matter of poor cost management and overrun in project cost is serious
issue in both developed and developing countries (Hameed, 2013).

Cost is situation where by a project incurs expenses in far more than its expected costs outlined within
the take into account the project (Reuben & Olusegun, 2014). As cited on Aftab et al (2012), cost
overrun considered because the difference between actual cost of project and its cost limit occurs when
the resultant cost target of project exceed its cost limits where cost limit of a project refers to the most
expenditures that the client is ready to incur on a completed building project.

Mukuka et al (2014) study identified a number of important factors which cause project cost overruns.
Such as cash flow and financial difficulties faced by the contractor, fluctuation of prices of material,
lack of experience, poor site management and supervision. Schedule delay is also extension of
project, additional cost, budget shortfall, adversarial relationship between participants of the project,

12
delayed payments to contractors, poor quality workmanship and dissatisfaction by project owners and
consequently by end user as the major effect of cost overruns.

Gomez (2012) suggested list of critical success factors that influence cost performance in construction
projects in the UK as the factor identified are, Project manager competency, contractor’s competence,
client commitment to getting the job done, good relationship between project parties ,accuracy of
plans and initial information ,adequate specifications, early involvement of the contractor, accurate
selection of form of contract, client’s involvement and feedback, availability of funding, initial
identification of all the risks, and architect’s competency.

Also other research conducted by Olawale (2010) on main reason for cost within the UK construction
project as the identified cause are, design changes, risk and uncertainty related to projects, inaccurate
evaluation of project’s time, nonperformance of subcontractor and nominated suppliers, complexity of
works, conflict between project parties, discrepancies in contract documentation, contract and
specification interpretation, inflation of costs, financing and payment for completed works, lack of
proper training and skill of project management. additionally low skilled manpower, unpredictable
climate, dependency on imported materials, lack of appropriate planning, unstable rate of
interest ,fluctuation of currency/exchange rate, week regulation and control, project fraud and
corruption ,unstable and government police.

Jha & Iyer (2005) administered research to seek out the factors affecting the price performance in
Indian construction project, thorough questionnaire survey on the important success and failure
attributes. according to the study the important success attribute factor are, effective monitoring and
feedback by project manager and project team members coordinating ability and report of project
manager with top management, positive attitude of project manager, and project participants, and
project manager’s technical capability. Material market rate, contract modification, high level of
quality requirement, project location, depends on the fresher has got to bear the entire responsibility.
and rework of bad quality performance, often changing sub-contractor’s company, lack of technical
skill, lack of experience in similar projects, shortage of experienced staff and labor, prime quality of
work required, labor strike, lack of sub-contractors skill, unclear specification, owners delay in freeing
the contractor financial payment, and incomplete drawing equipment shortage, poor productivity of
material and labor, poor scheduling of labor and material for work, and poor documentation and no
detailed written procedure.

13
2.8. Strategies for Minimizing Cost Overrun
In construction projects, a study of minimizing cost overruns by Abdussalam (2015) has categorized
the mitigation methods against cost overrun into proactive, reactive measures and organizational
strategies by consulting literatures; the proactive strategies are those which should be adopted in the
planning stage of projects which include efficient planning of strategies, and management of site and
supervision of the project; appropriate planning and arrangement of project; organized regulatory
mechanism; and using proper methods for construction (Azis.et.al., 2012).

The organizational strategies include appropriate prominence on previous experience; regular

coordination between the associated parties; increasing human resources in the industry; and complete
administration of contracts. Undertaking a preconstruction planning regarding the procedures and
resources of project could be a proactive, reactive, and organizational strategy (Azis.et.al. 2012).

On the other hand, Nadzirah (2015) has identified numerous mitigation measures associated with time
control and value overrun issues by consulting comprehensive literature consisting of 21 published
articles. Consistent with him, keeping construction projects within estimated costs and schedules
requires sound strategies, good practices, and careful judgment. There are, however, steps that
which will be taken to attune their causes and effects of your time and value overrun, the key one is
using efficient project management tools and practices (Nadzirah, 2015).

2.9. Empirical Review

2.9.1. Construction Projects and Performance
Success of construction projects depends mainly on success of performance. Many previous researches
had been studied performance of construction projects. Thomas (2002) identified the main
performance criteria of construction projects as financial stability, progress of work, standard of
quality, health and safety, resources, relationship with clients, relationship with consultants,
management capabilities, claim and contractual disputes, relationship with subcontractors, reputation
and amount of subcontracting.

Cheung et al (2004) identified project performance categories such as people, cost, time, quality,
safety and health, environment, client satisfaction, and communication. It is obtained by Navon (2005)
that a control system is an important element to identify factors affecting construction project effort.
For each of the project goals, one or more Project Performance Indicators (PPI) is needed. Pheng and
Chuan (2006) obtained that human factors played an important role in determining the performance of
a project. Ugwu and Haupt (2007) remarked that both early contractor involvement and early supplier
14
involvement would minimize constructability-related performance problems including costs associated
with delays, claims, wastages and rework, etc. Ling et al (2007) obtained that the most important of
practices relating to scope management are controlling the quality of the contract document, quality of
response to perceived variations and extent of changes to the contract. It was recommended for foreign
firms to adopt some of the project management practices highlighted to help them to achieve better
project performance in China.

2.9.1.1. Resource Management Related Factors

Completion of any project within the estimated cost is the basic criteria for the success of any
construction project. Primary target of practitioners involved in construction projects is to complete
the project within budgeted cost regardless of size and complexity of project. However, completion of
any project highly depends on the construction resources. Project resources provide the means for
accomplishing the work objectives. Construction resources management is the most important factor
contributing to cost success Meepol and Ogunlana (2006).

Construction resources management has a high and significant relationship with cost performance for
successful projects Meepol and Ogunlana (2006). As cited by Zujo,Pusic and Vejzovic (2010) in a
multiannual research conducted in Croatia from 1996 till 1998 as part of the scientific project
Construction Project Risk and Resource Management, the occurrence of price overrun was observed in
no less than 81% of the projects. Previous studies reveal that there are various construction resource
related factors which significantly influence construction cost. Enshassi, Al-Najjar, and Kumaraswamy
(2009) found that increment of construction materials prices due to continuous border closures, delay
in construction and supply of raw materials and equipment by contractors, fluctuations in the cost of
building materials, and resources constraint of funds and the associated auxiliaries not ready, were
among the top ten factors affecting construction cost. Financial difficulties of owner and contractor
were ranked as the first problems affecting construction cost in Vietnam Le-Hoai, Lee, & Lee (2008).
If the contractor can minimize problems such as inefficient use and lack of construction equipment and
shortage of quality material, the construction budget can be reduced Meepol and Ogunlana (2006).
2.9.1.2. Procurement Management Related Factors
Procurement planning plays a major role in successful project implementation Frese (2013) contends
that procurement planning requires excellent forward planning, which includes detailed planning of
the process implementation stages and milestones, task timeliness, fallback positions and re-planning.
What this means is that initial planning is not enough. Projects often take wrong turns, or initial

15
solutions prove unfounded thereby necessitating re-planning and going back to the drawing board. A
procurement plan may thus be subjected to review from time to time as and when necessary.

Frese (2013) emphasizes that planning requires an interactive process that requires agile re-thinking as
the known environment shifts. According to Brown and Hyer (2010), planning also encompasses the
aspects of forecasting techniques to help in the process of predicting costs and cash flows (financial
disbursements). The other critical element of procurement project planning is deciding on the
organization structure and the way it relates to project implementation. The structure will normally be
affected by the strategic choices in relation to competitive advantage and the competitive scope which
affects project implementation. Aspects of functional specialization and the balance between
centralization and decentralization of procurement activities need to be reflected in decisions to
improve project implementation. Attention may also be on the development of coordinating
mechanisms such as matrix structures, multifunctional teams and committees. In some cases,
procurement project teams or task forces may be formed for specific projects to improve project
implementation.

Of major significance is the requirement for the procurement plan to implement projects and contain,
among other things, a detailed breakdown of goods, works, or services required; a schedule of the
planned delivery, implementation or completion dates for all goods, works, or services required; an
indication and justification for whether it shall be procurement within a single year period or under a
multi-year arrangement, an estimate of the value of each package of goods, works or services required,
an indication of the budget available, sources of funding and an indication of the appropriate
procurement method for each procurement requirement.

2.9.1.3. Stakeholder Management Related Factors

Construction projects have many Stakeholders whose composition is often large and include: the
owners and users of facilities, project managers, project architects and engineers, designers,
shareholders, local authorities, legal authorities, employees, subcontractors, suppliers, process and
service providers, competitors, banks, insurance companies, media, community representatives,
neighbors, general public, government establishments, visitors, customers, regional development
agencies, the natural environment, the press, pressure groups, civic institutions, and the list is almost
endless Newcombe (2003). According to Newcome, project stakeholders are groups or individuals
who have a stake in, or expectation of, the project‟s performance. The number of stakeholders
involved or interested in the project normally increases the complexity and uncertainty of the situation.

16
Each stakeholder usually has different interests and priorities that can create conflict or disagreements
with the project Karlsen (2008). Their influence may have an impact on the course of a project at some
stage and some of stakeholders´ influence may impact the project more often than others. Thus, when
diverse stakeholders are present in a construction, the project must to set up a plan for managing them
in order to succeed.

2.9.1.4. Quality Management Related Factors

Quality can be defined as meeting the legal, aesthetic and functional requirements of a project.
Requirements may be simple or complex, or they may be stated in terms of the end result required or
as a detailed description of what is to be done. But, however expressed, quality is obtained if the stated
requirements are adequate, and if the completed project conforms to the requirements Ardit and
Gunayadin (1997). In the construction industry, quality can be defined as meeting the requirements of
the designer, constructor and regulatory agencies as well as the owner. According to an American
Society of Civil Engineers study Ferguson and Clayto (1998) quality can be characterized in which
meeting the requirements of the owner as to functional adequacy; completion on time and within budget;
lifecycle costs; and operation and maintenance. The meeting the requirements of the design professional as to
provision of well- defined scope of work; budget to assemble and use a qualified, trained and experienced staff;
budget to obtain adequate field information prior to design; provisions for timely decisions by owner and design
professional; and contract to perform necessary work at a fair fee with adequate time allowance. Likewise, the
meeting the requirements of the constructor as to provision of contract plans, specifications, and other
documents prepared in sufficient detail to permit the constructor to prepare priced proposal or competitive bid;
timely decisions by the owner and design professional on authorization and processing of change orders; fair
and timely interpretation of contract requirements from field design and inspection staff; and contract for
performance of work on a reasonable schedule which permits a reasonable profit. Finally, the meeting the
requirements of regulatory agencies (the public) as to public safety and health; environmental considerations;
protection of public property including utilities; and conformance with applicable laws, regulations, codes and
policies

2.10. Research Gaps

The researcher wants to mention that even though there are so many studies carried out on the issues
under study, there are only few studies done on the factors affecting customer satisfaction in ACA and
especially the researcher did not get study done on affecting factors in the study area.

Biyadglign (2017) studied assessment of construction performance challenges in selected university

building construction projects located in southern Ethiopia. Mekdes (2017) studied factors affecting

17
road project implementation. Ephrem, Tabish and Kumar (2017) studied Ephrem, Tabish and Kumar
(2017) studied critical factors affecting no dispute performance of Ethiopia public construction
projects. Abera and Fekadu (2016) assessed also factors affecting the performance of construction
projects in oromia region. Finally, Samson and Lema (2002) investigated the development of
construction contractors‟ performance measurement framework.

According to previous studies, it can be said that the performance measurement is a process include
factors as Key Performance Indicators (KPIs) such as time, cost, quality, client satisfaction;
productivity and safety in order to enable measurement of current organizational project performance
and to achieve significant performance improvements of future projects.

It was obtained that there were many fields and topics which are related to performance such as,
construction project and performance, factors affecting performance of construction projects such as
resource, stakeholder, quality and procurement management related factors. It was also able to review
measurement of project performance and key performance indicator. The key performance indicators
are used to evaluate performance of construction projects. These indicators can then be used for
benchmarking purposes, and would be used be as a key component of any organization to move
towards achieving best practice and to overcome performance problem in defense construction. Based
on previous studies and literature review, the most important indicators which were studied in this
research are time performance, cost performance, and quality performance (measured in construction
defect and client satisfaction). Furthermore, this paper made an attempt to identify factors that affect
the performance of construction projects from resource, stakeholder, procurement, and quality
management perspectives. However, the issues of factors affecting schedule and cost performance
have still not been well researched and service provisions are not satisfactory. Those gaps initiated the
researchers to researcher to fill such gaps.

18
2.11. Conceptual Framework

The conceptual framework in this study is used to show various variables that affect the
schedule and cost performance of construction projects.

Resource Management Related Factors

Procurement Management Related Factors Project

Performances

Stakeholder Management Related Factors

Quality Management Related Factors

Fig 2.1 Conceptual Framework Source- Researcher, 2024

2.12. Hypothesis

H1: There is significant and positive relationship between resource management related factors
and project performance in ACA selected sectors
H2: There is significant and positive relationship between procurement management
related and project performance in ACA selected sectors
H3: There is significant and positive relationship between stakeholder
19
management related and project performance in ACA selected sectors
H4: There is significant and positive relationship between quality management related factors
and project performance in ACA selected sectors.

Chapter Three

3. Research Methodology
3.1. Description of the Study Area
Adama town is situated about 90 km southwest of the capital city Addis Ababa. The town is located
between 8°26034″ N to 8°3601″N and 39°1309″E to 39°2103″E with an elevation range between
1,590m and 1,770m (Desta et al. 2022). The settlement of Adama is situated in the Rift Valley on
the flat land with ridged topography surrounding it. The town, which has six sub-cities named Aba
Geda, Bole, Boku, Dabe Soloke, Denbela, and Lugo, has a total area of 110 km2. When the most
recent growth area is taken into account and added to the master plan, the city’s overall size
grows to 136.7 km2 (Bulti & Abebe 2020). The city experiences precipitation on an annual average
of 1,371, 629, and 920 mm, respectively. Adama city’s average annual temperature is 21 °C, and it
is located in a sub-humid tropical zone (Asfaw 2007).

According to CSA (2007), Adama had a total population of 220,212 of whom 108,872 were men and
111,340 were women. The projected population of Adama city is 374,332 with 89,127 households in
the year 2021. Adama has six sub-city administrations made up of 18 kebeles. Currently, there are 21
major public projects in 4 kebeles that were started in 2015 (ACA Municipality and Construction
Office Report, 2015).

20
 3.2. Research Design
The research design constitutes the blueprint for the collection, measurement, and analysis of data and
research design is the plan and structure of investigation so conceived as to obtain answers to research
questions (Mohamed, 2011).

In order to answer the research question and to draw some conclusion, descriptive design and
explanatory design were adopted. The rationale for choosing this design is to explain while providing
additional information about the research topic. This is where research is trying to describe what is
happening in more detail, filling in the missing parts and expanding understanding on the theme.

Thus, the research design is effectively enumerate and explain the assessment of project management
practices. So it is extremely important to get as much data as possible for later analysis to ensure the
effectiveness of project management practices and investigate how the knowledge areas of project
management are adopted properly in the project.

3.3. Research Approaches

According to Creswell (2015), research approaches are plans and procedures that span the steps from
broad assumptions to detailed methods of data collection, analysis and interpretations. Studies by
(Schulze (2003) added that the uses of mixed methods are used to overcome the deficiencies of each
other and achieve a higher degree of validity and reliability. According to (Creswell, 2009) mixed
21
research methods enable to understand a problem more comprehensively and indeed, it is perhaps the
most popular applications in the practice of research.. With this in mind, this study used mixed
approaches of quantitative and qualitative.

3.4. Sampling Design

Population is described as a group of elements or cases, whether individuals, objects, or events, that
conform to specific criteria and to which we intend to generalize the result of the research Hair et al.
(2010). According to Parker (2011), in descriptive design study, every participant has an opportunity to
participate which reduces the concern on accuracy.

3.4.1. Target Population

The target populations are project managers, top manager, middle manager, lower manager, and senior
site and office engineers. There are 23 project manager, 56 office and site engineers, and 39 top,
middle, and lower level managers. This gives a total population of 114. A summary of the population
is given below

Table 3.1 Sample Size

Population Description Numbers %
Project Manager 23 20.2%
Senior Office Engineer 26 22.8%
Senior Site Engineer 26 22.8%
Top Management 8 7.0%
Middle Manager 11 9.6%
Lower Level Manager 20 17.5%
Grand Total 114 100%
Source- ACA Municipality Office, 2024

3.4.2. Sampling Frame

The sampling frames of the study are those sectors that have projects in ACA and their cost overrun
and cots performance has its own roles. They are, Construction Office, Municipality Office and
Kebeles.

22
3.4.3. Sample Size

Yamane Taro (1967) formula was used to determine the study's sample size. The sample size is
calculated by using the formula as follow:

N
n= Where N= Number of Population
1+ N ( e ) 2

n= the sample size

e= the error of 5 percentage points

114 114
n= = = 88.71
1+ 114 ( 0.5 ) 2 1.1285

Generally, the study assumes that the margin of error 5% and confidence level or error free of 95%.
Thus, as per the above formula, the total targeted populations were the total number of team members
which becomes 89.

3.4.4. Sampling Technique

For this study, purposive, availability and systematic sampling techniques were used to get
information from a sample of the population that one thinks knows most about the subject matter. In
this type of sampling, the choice of the sample items depends exclusively on the judgment of the
investigator. Purposive sampling techniques include hand picking of the subject cases that the
researcher thinks that possesses rich information to accomplish the researchers’ objective (Lewis &
Sheepard 2006).

3.5. Data Types and Sources

Data can be gathered from both primary and secondary sources. According to Hollensen (2007),
primary data can be defined as “information that is collected first-hand, generated by original research
tailor-made to answer specific current research questions”. The source for primary data is the sample
group which is management staff and professional engineers and others of ACA. Secondary data on
the other hand were obtained through the use of reports and other relevant written documents.

23
3.6. Data Collection Tools
3.6.1. Questionnaire
Questionnaires were distributed to top, middle, and lower level managers, and senior office and
office engineers as well as to project managers. The research evidence was gathered by using close-
ended questionnaires.

In order to be able to select the appropriate method of analysis, the level of measurement must be
understood. For each of measurement, there are /is an appropriate method/s that can be applied and not
others. In this research, ordinal scale was used. Ordinal scale is a ranking or a rating data normally
uses integers in ascending and descending order. Hence, the questionnaires were structured based on
those used by Iyoha and Faboyede (2011), and Sharif (2010). With regard to the close- ended
questions, the respondents were asked to indicate their level of agreement on a five-point Likert scale
from strongly agree (5) to strongly disagree(1).

On this scale a score of 5 or 4 indicates that the item is perceived to be essential while a score of 3 or
2 indicates that the item is perceived to be fairly important, but not essential, while a score of 1
indicates that the item could be disregarded for being unimportant. With respect to the open-ended
questionnaires the respondents were asked to provide open ended responses to the questions that
require opinion and if they have opinions they feel the researcher would find useful.

The relative index technique has been widely used in construction research for measuring attitudes
with respect to surveyed variables. Several researches use the relative importance index in their
analysis. The respondents will be asked to gauge the identified interface problems on a five-point
Likert scale (1 for the not significant to 5 for the extremely significant). Based on the survey response,
a relative the strongly agree). Based on the survey response, a relative importance index was tabulated
using the following equation (Hallay and Tayeh, 2015).

𝖶
Relative Importance Index = ∑ =5n5+4n4+3n3+2n2+1n1

AN 5N
Where

W is the weighting given to each factor by the respondent, ranging from 1 to 5, (n1 = number of
respondents for strongly disagree, n2 = number of respondents for disagree, n3 = number of

24
respondents for neutral, n4 = number of respondents for agree, n5 = number of respondents for
strongly agree). "A" is the highest weight (i.e. 5 in the study) and N is the total number of samples.

3.6.2. Interview
An interview was conducted with management members. The content of the interviews was
manipulated in a way that it proves or disproves the feeling expressed by the participants who
responded willingly. The entire interview questions were structured so that it can match the contents
of the items to be enlisted. An interview is considered because it has the advantage of ensuring
probing for more information, clarification and capturing facial expression of the interviewees.

3.7. Data Analysis Tools

The analysis of data is the process where one is trying to gather and present the data in such way that it
has a good structure and becomes easy to understand (Artit, 2012). In addition, data analysis is a
process of bringing order, structure and meaning to the mass of collected data. The goal with the
analysis is to be able to come up with valid conclusions based on the empirical data. The methods of
analysis used in this research are selected due to the type of data available for the analysis and the
objectives of the research.

In the case of questionnaires, descriptive method of analysis tool is best suited for the analysis. Such
method is applied for the presentation, interpretation and discussion parts on various dimensions of the
appropriate to analyze, interpret, tabulate and present the result of the study. The results of the
interview questions on the other hand were integrated to the responses of management and employees
and were analyzed in narrative manner accordingly. The data that were gathered through
questionnaires were coded, entered into computer and were analyzed and presented by using SPSS
Statics version 26 software. This is due to the fact that the component part of descriptive statistics such
as mean and standard deviation is used while analyzing and ranking the different factors that affects
the performance of the project. In addition to the above, the study used graphs, tables and other
components which are also vital to analyze the collected data.

Furthermore, the relationship between the dependent variable, project performance and the
independent variables such as project resource management related factor, procurement management
related factors, and quality management related factors, are expressed as a linear regression.

Following Greene (2003), the multiple linear regression models is specified as:

25
 . Y= β0 + β1X1+ β2X2 + β3X3 + β4X4 + ε
Where: Y= Project Performance
β0- Constant term
X1= Resource Management Related Factor
X2= Stakeholder Management Related Factor
X3= Procurement Management Related Factors
X4= Quality Management Related Factors
Where the βS are coefficients of independent variables are column vectors for the independent
variables in this case; resource management related factor, stakeholder management related factor,
procurement management related factors, and quality management related factors, while ε is a vector
of errors of prediction. The error is assumed to be normally distributed with an expected value of zero
and a common variance.

To do so, the study used IBM SPSS 26 as the most suitable for descriptive statistics and quantitative
analysis.

The component part of descriptive statistics such as Mean and Standard Deviation were used while
analyzing and ranking the different factors that affects the performance of the project. In addition to
the above, the study uses graphs, tables and other components which are also vital to analyze the
collected data.

Furthermore, the relationship between the dependent variable, project performance and the
independent variables such as project resource management related factor, procurement management
related factors, and quality management related factors, are expressed as a linear combination of the
independent variables plus an error term.

3.8. Validity and Reliability of Instruments

3.8.1. Validity
According to Creswell (2014), validity is one of the strengths of qualitative research and is based on
determining whether the findings are accurate from the standpoint of the researcher, the participant, or
the readers of an account. Terms abound in the qualitative literatures that address validity, such as
trustworthiness, authenticity, and credibility. Thus, it is imperative that the data and the instruments to
be validated using content validity, which is related to a type of validity in which different elements,
skills and behaviors are adequately and effectively measured. To this end, the research instruments and

26
the data were validated by an advisor and may be reviewed by the experts in the field of research.
Based on the reviewer’s comments, unclear and obscure questions can be revised accordingly.
Therefore, interview questions were derived from the literature review, and were approved by advisors
to confirm validity.

3.8.2. Reliability of Instruments

As stated by Mohamed (2013), one of the main requirements of any research process is the reliability
of the data and findings. In the main, reliability deals with the consistency, dependability and
reliability of “the results obtained from a piece of research”. Obtaining similar results in quantitative
research is rather straightforward for our data are in numerical form. However, in qualitative approach,
to research achieving the identical results are fairly demanding and difficult. It is because the data are
in narrative form and subjective.

The reliability of the instruments was carried out by pilot-test. Therefore, it is always advisable to
select that scale that is reliable. One of the most commonly used scales of reliability is internal
consistency which refers to “the degree to which the items that make up the scales are all measuring
the same underlying attributes (i.e. the extent to which the items “hang together”) (Pallant, 2005).
There are number of ways in which internal consistency can be measured, the most commonly used
statistics is Cronbach’s coefficient.

Cronbach’s alpha is a test reliability technique that requires only a single test administration to
provide a unique estimate of the reliability for a given test (Rosemary, 2003). According to Rosemary
R. G. (2003), cronbach’s alpha reliability coefficient normally ranges between 0 and 1. However, there
is actually no lower limit to the coefficient. The closer Cronbach’s alpha coefficient is to 1.0, the
greater the internal consistency of the items in the scale.

Alpha for each filed of the questionnaire and the entire questionnaire. For the fields, values of
Cronbach's Alpha were in the range from 0.60 and 0.92. This range is considered high; the result
ensures the reliability of each field of the questionnaire. Cronbach's Alpha equals 0.94 for the
entire questionnaire which indicates an excellent reliability of the entire questionnaire. Thereby,
it can be said that it is proved that the questionnaire is valid, reliable, and ready for distribution
for the population sample.

Table 3.2 Cronbach's Alpha for each filed of the questionnaire

27
 Cronbach alpha
S.N Factors
value
1 Project resource management related factor 0.6
2 Project procurement management related factors 0.91
3 Project stakeholder management related factors 0.92
4 Project quality management related factors 0.82
5 Project performance 0.88
Overall 0.94
Source: own source (2024)

3.9. Ethical Considerations

As stated by Creswell (2014) in addition to conceptualizing the writing process for a proposal,
researchers need to anticipate the ethical issues that may arise during their studies. Writing about these
anticipated ethical issues is required in making an argument for a study as well as being an important
topic in the format for proposals. Researchers need to protect their research participants; develop trust
with them; promote the integrity of research; guard against misconduct and impropriety that might
reflect on their organizations or institutions and cope with new challenging problems (Iain, 2006).

Ethical questions are apparent today in such issues as personal disclosure, authenticity, and credibility
of the research report; the role of researchers in cross-cultural contexts; and issues of personal privacy
through forms of internet data collection (Mark & Iain, 2006).

In this study, the researcher explained to the respondents the aim of the research and area in the
introductory part of the questionnaire and interview guideline. Furthermore, the researcher will try to
avoid misleading statements in the questionnaire and interview.

Lastly, the questionnaires and the interview were conducted only with voluntary respondents that were
informed about their response confidentiality and only used for research purpose and they are free to
withdraw if not based on consent.

28
 Chapter Four

4. Data Presentation, Analysis and Interpretation

This chapter provides an analysis of data collected from the survey and secondary data source.
The results were presented in tables to highlight the major findings. They were also presented
sequentially according to the research questions of the study. Mean scores, and standard
deviations were used to analyze the data collected.

4.1. Socio-Economic Characteristics of Respondents

This chapter deals with discussions and results of the study. It is based on the information
collected from survey. 89 questionnaires were distributed for respondents and 77
questionnaires were responded. The response rate is 87%, which is assumed to be sufficient
for further analysis.

Table 4.1: Respondent Educational Level, Work Experience, and Job Position
Characteristics N (%)
Educational Level

1 Degree 56 (72.7)

2 Second degree and above 21 (27.3)

Total 77 (100)

Work experience
1 Below 5 year 11 (14.3)

2 6 – 10 year 32 (41.6)

3 11- 15 year 20 (26)

4 Above 15 year 14 (18.2)

Total 77 (100)
Source: own survey (2024)

29
The above table shows the respondents educational level, work experience, and job position of
respondents. Most of (72.7%) were first degree holders. In the case of work experience, most
of the respondents were between the range of 6 and 10 years which indicated that most of
respondents were assumed to be young.

Total Respondents 77
26.0%
Office Engineer 20
23.4%
Site Engineer 18
22.1%
Project Manager 17
15.6%
Lower Level Manager 12
7.8%
Middle Level Manager
6

5.2%

Source: own survey (2024)

Figure 4.1 Job Positions of Respondents

Figure 7 shows majority of respondents‟ job position was site engineer, office engineers, and
project manager, which account 26%, 23.4%, and 17% respectively. This implies that most of
respondents are people who are actually engaged in the construction process that provided
important information to the study.

30
4.2. Factors Affecting Performance of Construction Projects
4.2.1. Resource Management Related Factors

Table 4.2: Resource Management Related Factors

S.N Resource Management Related Factors N Mean SD
There is cash flow and financial difficulties faced by the
1 77 4.64 0.67
enterprise
There is price escalation of construction material in
2 77 4.56 0.60
the market.
3 There is material wastage on projects 77 4.48 0.64
There is breakdown and failure of construction
4 77 4.48 0.66
equipment in the enterprise.
There are changes in material types and
5 77 4.38 0.69
specifications during construction.
There is no adequate availability of construction material
6 77 3.97 0.65
in the market
7 There is payment delay by project owner. 77 3.92 1.13
There is lack adequate Health and safety for
8 77 3.90 0.91
employees at the projects site.
There is lack of productivity of labors in the projects
9 77 3.84 1.14
There is unavailability of construction equipment
10 77 3.73 0.95
and spare parts in the enterprise
Project teams have no adequate skill and knowledge of
11 77 3.40 0.86
Supervision.
There is lack of highly qualified and experienced
12 76 3.38 1.11
personnel in the enterprise.
Overall mean score 4.06 0.83
Source: survey data (2024)

Table 4.2 shows resource management related factors affecting the performance of the
projects. Cash flow and financial difficulties faced by the enterprise was ranked first by
respondents with mean= 4.64 and SD =067. This mainly because cash flow affects the project
31
budget and project cost performance. This result is in agreement with Samson and Lema
(2002) because cash flow can give an important evaluation for the cost performance at any
stage of project.

Price escalation of construction material in the market was considered by respondents as the
second most important (mean = 4.56 and SD =0.60) factor that affect the performance of
projects. This escalation of material prices affect the liquidity of contractors and profit rate of
their projects.
Material Wastage on projects was ranked as the third most important resource related factor
(mean = 4.48 and SD = 0.64) that affect the performance of the projects. This result is in line
with Shaban (2008) where material wastage on the project site was ranked

Respondents‟ ranked failure of construction equipment and Changes in material types and
specifications during construction as the as fourth and fifth important factor that affect the
performance of projects respectively.

Unavailability of construction material in the market was ranked sixth by respondents with
mean =3.97 and SD = 0.65. This factor affects directly and practically on project performance
such as time. If resources are not available as planned through project duration, the project will
suffer from problem of time and cost performance. This result is in line with Samson and
Lema (2002) as it is remarked that resource availability effects on processes performance of
construction projects. In addition, Iyer and Jha (2005) and Ugwu and Haupt (2007) are in
agreement with our result because availability of resources as planned through project duration
is an important factor for owners in Indian and South African construction projects. This is
because resource availability as planned schedule can improve time performance of projects

Respondents were also agree payment delay by project owner, poor Health and safety for
employees at the projects site, low productivity level of labors, unavailability of construction
equipment and spare parts, lack of skill and knowledge of Project teams, and lack of qualified
and experienced personnel in the enterprise affect the performance of projects.

32
4.2.2. Procurement Management Related Factors

Table 4.3: Procurement Management Related Factors

S.N Procurement Management Related Factors N Mean SD Rank
There is lack of an effective and efficient
1 77 4.55 0.66 1
Procurement planning
There is lack of an effective procurement
2 77 4.43 0.79 2
control mechanism in the enterprise
There is lack of an effective and efficient
3 77 4.18 0.87 3
contract management in the enterprise.
overall mean score 77 4.39 0.77
Source: survey data (2024)

Table 4.3 shows procurement management related factors that affect the performance of
projects. Lack of efficient and effective procurement planning in procurement related factors
was ranked first by respondents with mean =4.55 and SD = 0.66.The lack of an effective and
efficient procurement planning affect the overall performance of the projects. The result is in
line with Gerald, (2014) who states effective planning of procurement creates value for
stakeholders while improving performance of the project.

Lack of an effective and efficient procurement control and contract management mechanism in
the enterprise was ranked as second and third factors relating to procurement management
related factors with mean =4.43 and 4.18 and SD= 0.79 and 0.87 respectively.

33
4.2.3. Stakeholder Management Related Factors

Table 4.4: Stakeholder Management Related Factors

S.N Stakeholder Management Related Factors N Mean SD Rank
The enterprise do not assesses Attributes (power,
1 77 3.88 0.99 1
urgency, and proximity) of Stakeholders
There is lack of Stakeholders „Involvement in
2 77 3.86 0.84 2
Decision Making process in the enterprise
The enterprise do not identifies its
3 77 3.83 0.95 3
Stakeholders Properly.
The enterprise do not communicates with and
4 77 3.73 0.95 4
engaging stakeholders properly and frequently
The enterprise do not keeps and promote good
5 77 3.53 1.03 5
relationships with stakeholders
The enterprise do not maintains alignment among
6 77 3.38 0.93 6
stakeholders
The enterprise do not properly understands area of
7 77 3.32 1.14 7
Stakeholders‟ interests
The enterprise do not formulates appropriate
8 77 3.26 0.97 8
Strategies to manage Stakeholders
The enterprise do not Evaluate the
9 77 3.26 1.02 9
Stakeholder Acceptability
The enterprise do not predicts stakeholders
10 77 3.25 1.08 10
„reactions for implementing the strategies
overall mean score 77 3.53 0.99
Source: survey data (2024)
Lack of assessment of stakeholders attribute (power, urgency, and proximity) by the enterprise was
ranked first by respondents with mean= 3.88 and SD =099. The power, urgency, legitimacy and
proximity of stakeholders need to be assessed in order to enhance the understanding of their needs.
The result is in line with Sheng and Wei (1996) that quality of a construction project is largely
dependent on the attitudes of different stakeholders such as client, contractor and consultant.

34
Lack of Stakeholders Involvement in Decision Making process in the enterprise was ranked second
by respondent with mean = 3.83 and SD =0.95. This result is in line with Kolltveit and Grønhaug
(2004) that suggests Effective and efficient involvement of project participants will better assist in
improving the total quality of a constructed project and will significantly leads to greater project
value.

Lack of Stakeholders identification in the enterprise was ranked third by respondent with mean =
3.86 and SD =0.84. This factor is important as it answers the questions of “who are the project
stakeholders that affect the performance of projects. This helps the project manager to manage
individuals or groups of stakeholders accordingly, and this is in line with Prisca (2017).

Lack of proper and frequent communication and engagement with stakeholders in the enterprise
was ranked forth by respondents to affect the performance of projects. This is a very important
critical success factor for projects as communication is essential for maintaining the support and
commitment of all stakeholders. This result is in line with Prisca et al (2007) which state that
communication needs to be effective, regular and well planned if, project to be success.

4.2.4. Quality Management Related Factors

Table 4.4: Quality Management Related Factors

Std.
S.N Quality Management Related Factors N Mean rank
Deviation
There is lack of an effective quality planning,
1 77 4.2 0.8 1
assurance and controlling system in the enterprise.
There is lack of management commitment and
2 77 3.8 1.0 2
leadership towards quality in the enterprise.
There is lack of an involvement of suppliers
3 76 3.5 1.0 3
to enhance projects quality performance.
The enterprise do not provides adequate training to
4 77 3.1 1.1 4
enhance the quality of project performance.
overall mean score 77 3.6 1.0
Source: survey data (2024)

35
Lack of an effective quality planning, assurance and controlling system in the enterprise was ranked
first by respondents with mean= 4.2 and SD =0.8 that affect the performance of projects. This mainly
is the role of quality management for a construction company is not an isolated activity, but
intertwined with all the operational and managerial processes of the construction project. This
result is in agreement with Mane and Patil (2015) which states the quality management system has to
provide the environment within which related tools, techniques and procedures can be deployed
effectively leading to operational success for a construction project.

Lack of management commitment and leadership towards quality in the enterprise was ranked
second by respondents with mean= 4.2 and SD =0.8 that affect the performance of projects. This
result is in line with Low et al. (2004) commented that top management commitment is one of the
elements that would reflect quality management performance measures in construction firms. Chin et
al. (2003) found that top management commitment is the most critical factor for the successful
implementation of ISO 9000.

Continuous improvement of processes, people and system, the reward system, team work, the
measurement of performance and communication during the post-certification period are all critical
success factors for the sustainable quality management system and for successful results of ISO 9000
certification. Qualities of projects are in a powerful position to increase the value of certifications.
Value-added quality may not only produce data for the use in granting a certificate, for improving
documentation or for enforcing conformity but also for making managerial decisions concerned with
economy, staff development, technology, growth, product and processes for these decisions are based
on current performance (Naceur & Abdullah, 2005). This is due to the fact that the rise of quality
management practices in the world of business is normally associated with the implementation of
quality systems based on the ISO 9000 international standards (Quazi & Jakobs, 2004).

4.3. Multiple linear Regression Assumptions

Testing assumption of multiple linear regression analysis models is very important before running
regression analysis. So each assumption results were discussed in the following subtopics. This paper
the descriptive and inferential analysis was carried out separately with the existence of association
between the dependent and independent variables with the identifying factors affecting construction
project performance of ACA. However identification of these factors is not enough for meaningful

36
conclusion. Therefore the influence each independent variable must be assessed and identified
sequentially. The researcher used multiple liner regression models to identify the effects of seven
factors on construction project performance in the ACA.

4.3.1. Multicollinearity Test between independent variables

According to Gujarati (2003) Multicollinearity tests helps identify the high correlation between
explanatory variables and to avoid double effect of independent variable from the model. When
independent variables are multicollinear there is overlap or sharing of predictive power. Predictor
variable should be strongly related to dependent variable but not strongly related to each other. This
may lead to the paradoxical effect, whereby the regression model fits the data well but, none of the
explanatory variables (individually has a significant impact in predicting the dependent variable. For
this purpose variance inflation factor (VIF) and tolerance test were used to check Multicollinearity
for variables if the value of VIF is less than 10 there is no Multicollinearity and on the other hand if
VIF greater than or equal to 10 there is a serious Multicollinearity problem.

According to Gujarati (2003), to avoid serious problem of Multicollinearity, omitting the variable
with 10 and more from the analysis is important. In addition, tolerance is an indicator how much of
the variability of independent variable is not explained by the other independent variable in the
model and is calculated using the formula 1- R2 for each variable. If the value is very small (less 0.1),
it shows the multiple correlation with other variable is high.

Table 4.12 Multicollinearity Statistics

Variables Tolerance VIF(variance inflation factors)
Resource related factors 0.803 1.245

Project procurement related factors 0.59 7 1.676

0.364 2.744
Stakeholder management
related factors
0.846 1.182
Quality management related
factors

4.3.2. Normality Test

Normality assumption is around the mean of the residuals is zero and used to determine whether a
37
data set is well modeled by a normal distribution or not and also to indicate un underlying random
variable is to be normally distributed (Gujarati, 2009). There the researcher was used histogram
methods of testing the normality of the data. If the residuals are normally distributed about its mean
of zero, the shape of histogram should be a bell-shaped and regression standardized residual plotted
between -3.3 and 3.3. From the figure below data normality can be indicated.

Figure 2: Normal distribution Histogram results Source; survey result, 2024

4.3.3. Linearity Test

Linearity is used check whether all the estimates of regression including regression coefficients,
standard errors and tests of statistical significance are biased or not (Keith, 2006). This can be
checked by p-p plot residuals as indicated by figure 2 below. There is no linearity problem on the

38
data for this study if p-p residual follow at straight line.

Figure 3: p-p plot;

Linearity test results Source; survey result, 2024

4.3.4. Heteroscedasticity Test

Heteroscedasticity is the equality or violation of the residuals for every set of values for independent
variable. So the researchers assume that errors are spread out constantly between the variables.
Heteroscedasticity problem exist when scatterplot is greater than 3.3 and less than -3.3. Therefore as
it was indicated in figure 3 below the data did not violate Heteroscedasticity assumption and instead
it was homoscedastic.

4.4. Inferential Statistics

Inferential analysis was conducted to generate the regression and correlation results. Regression
results included the model of fitness, analysis of the variance and regression coefficients. Before
undertaking the correlation and regression, the mean score of each item in the independent variable
and dependent variable (mean of performance indicators) was computed using SPSS.

4.3.1. Correlation

The study findings were subjected to correlation analysis to determine the relationship between
independent and dependent variable. The table shows the correlation between independent variable
(resource, procurement, stakeholder, and quality management related factors and) and dependent
variable (performance of projects). Pearson correlation coefficient is a measure of linear dependence

39
 between two variables: independent and dependent variable. The researcher correlated the factors
influencing projects against projects performance.

Table 4.5: Pearson Correlation Coefficient Matrix

Quality Resource Stakeholder Procurement
Management Management Management Management
Pearson
0.196** 0.406 0.377** 0.265*
Time
Performance 0.000 0.042 0.000 0.01
Correlation
N 77 77 77 77
Sig. (2-
Quality Pearson
0.495** .424** .475** .0401**
tailed)
Sig. (2-t
0.000 0.000 0.000 0.000

N 77 77 77 77
Cost Pearson
0.133 0.604** 0.636** 0.309**
Performance Correlation

Sig. (2-t) 0.000 0.000 0.00

0.23
N 77 77 77 77
Performance Correlation tailed)
*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation analysis results between resource, stakeholder, procurement and quality management related
factors and time performance attained a positive correlation coefficient of 0.40, 0.37, 0.26, and 0.19
with a p-value of 0.0042, 0.000, 0.000, and 0.01 respectively. This was an indication that the result
was significant at α= 5%, and if resource, stakeholder, procurement and quality management is
improved, it would improve projects performance in terms of time. Correlation analysis results
between resource, stakeholder, procurement and quality management related factors and quality
performance attained a positive correlation coefficient of 0.42, 0.47, 0.40, and 0.49 respectively with
a p-value of 0.000. This was an indication that the result was significant at α= 5%, and if resource,
stakeholder, procurement and quality management is improved, it would improve projects quality
40
performance.

Correlation analysis results between resource, stakeholder, procurement and quality management
related factors and quality performance attained a positive correlation coefficient of 0.60, 0.63, 0.30,
and 0.13 respectively with a p-value of 0.000. This was an indication that the result was significant at
α= 5%, and if resource, stakeholder, procurement and quality management is improved, it would
improve projects cost performance.

4.3.2. Regression Result

The results of linear regression analysis are given in the following table (table 4.6). The model
summary shows that the regression model can explain 43.1 % of the variance in the dependent
variable.

Table 4.6: Results of Multiple Regression Analysis

Model Parameter Standard t-value Significance
Coefficients (B) error level (P)
(Constant) 1.517 0.462 3.286 0.002
Resource Management

0.234 0.134 2.038 0.045

Related Factors
Procurement
Management 0.115 0.091 1.079 0.284
Related Factors
Stakeholder
Management 0.369 0.095 3.235 0.002
Related Factors
Quality Management

0.109 0.076 1.110 0.271

Related Factor

F statistics (4, 77) = 13.647, 0.00)

41
R2 (R2 adj.) 0.431 (0.400)

Source: survey data, 2024

As shown in above table, the coefficients of the regression for resource management related factors
(0.000, p < 0.05), stakeholder management related factors (0.000, p < 0.05), and procurement
management related factors (0.005, p < 0.05) are positively and significantly influence project cost
performance. This implies the null hypothesis that there is significant and positive relationship
between resource, stakeholder, and procurement management related factors and project cost
performance is accepted. On other hand, quality management related factors was found positive but
not significant factor influencing the cost performance of project. This implies the null hypothesis
that there is significant and positive relationship between quality management related factors and
project cost performance is rejected.

Also the coefficients of the regression for resource management related factors (0.003, p < 0.05) and
stakeholder management related factors (0.004, p < 0.05) are positively and significantly influence
project time performance. This implies the null hypothesis that there is significant and positive
relationship between resources and stakeholder management related factors and project time
performance is accepted. On other hand, quality management related factors was found positive but
not significant factor influencing the time performance of project. This implies the null hypothesis
that there is significant and positive relationship between quality and procurement management
related factors and project cost performance is rejected.

Furthermore, the coefficients of the regression for resource management related factors (0.006, p <
0.05), stakeholder management related factors (0.004, p < 0.05), and quality management related
factors (0.000, p < 0.05) are positively and significantly influence project quality performance. This
implies the null hypothesis that there is significant and positive relationship between resource,
stakeholder, and quality management related factors and project quality performance is accepted. On
other hand, quality management related factors was found positive but not significant factor
influencing the cost performance of project. This implies the null hypothesis that there is significant
and positive relationship between procurement management related factors and project cost
performance is rejected.
42
As has been reported in the study of Johor state of Malaysia by Memon, Rahman, Asmi, Aziz, &
Ravish (2011), it was observed that Construction resources management has a high and significant
relationship with cost performance for successful projects. Furthermore, Enshassi (2009) found that
resource related factors such as increment of construction materials prices, shortage of cash, delay in
payment; fluctuations in the cost of construction materials, and resources constraint of funds were
among factors affecting construction performance.

From the regression analysis, it is noticed that one of the influential factors for project performance is
stakeholder management related factors. This finding is in line with the study by Mbiti (2017) that
statistically significant relationship between Stakeholder management and Effective Implementation
of project in Kenya.
Results of Multiple Regression Analysis in table 15 shows that there exists a positive but statistically
insignificant (0.284, p > 0.05 relationship between procurement management related factors and
project performance. The study result contradicts the findings of Aputo (2018) who established that
procurement planning and contract management have an effect on Project Performance. Likewise,
there is exist a positive but statistically insignificant (0.271, p > 0.05 relationship between quality
management related factors and project performance. The result is in line with the findings of Leong,
Zakuan, Mat Saman, Ariff, & Tan (2014)) indicate that client satisfaction and time variance have
positive and significant relationship with quality management system while other project
performance indicators such as cost do not show significant results.
4.4. Discussion of the finding/model interpretation
Multiple Linear regressions were performed to test the spotted independent variables to answer the
research questions based on the research problem and objectives. Among factors affecting
construction project performance in Jimma University, Contractors related factors were significantly
affecting jimma university project performance at P value 0.003 probability levels.
The adjusted R square (Coefficient of Determination), can be defined as the proportion of the total
variation or dispersion in the performance of construction projects (dependent variable) that
explained by the variation in independent variables in the regression. (Gujarati, 2004) So with
adjusted R Square value of 0.413, meaning, 41.3% of the variation in construction performance is
explained by the linear relationship with all the independent variables. The corollary of this is 58.7%
of the variation in construction performance is unexplained by the relationship. Thus when
adjusted R square it means that the independent variables included in the study play an important part
43
in affecting the dependent variable.
The individual effects of the independent variables can be explained by their respective beta
coefficients. As per the regression result, the construction performance and contractor related factors
have the strongest positive relationship. 1-unit increment in improving contractor related factors can
cause about 50.1% improving performance of construction projects. This corroborates with the
views of Jamaludin et al., (2014), Assaf et al., (2001) and Chan et al., (2002) who found in their
respective studies that increasing the contractor related factors would have a positive influence on
construction performance. They celebrated that high experience and skills of personnel complex in a
construction project will support the project celebrations to implement their project goals
professionally leading to better performance of quality, time, cost, productivity and safety of the
project. Construction planning is a crucial element in confirming the project achievement. The main
reason contractors‟ were not known at early the sites and weakens of the project leaders. According
to Chan and Kumaraswamy (2002) studies contractors‟ related factor was proposed specific
technological and managerial strategies to increase construction performance.
Contractors related factors were ranked the 1st Influential factors construction project performance.
Callistus et al. (2014) concluded that the factors affecting quality performance of construction
firms in Ghana based on Consultants and Contractors view are: fraudulent practices
The first thing that must be discussed here should be the overall fitness of the model; this fact
has been confirmed by different types of statistical results. The first way is the ANOVA test
that produced a P-value of 0.000 which is below the alpha level, i.e. 0.05. That means the
overall independent variables have statistically significant relationship with that of the
dependent variable, i.e. Performance of construction projects.
The R (Coefficient of Correlation), which is simply measures the degree of (linear) association
between the dependent variable and the independent variables jointly, 0.916 means, there is a
very strong relationship between the independent variables as a whole. The adjusted R square
(Coefficient of Determination), can be defined as the proportion of the total variation or
dispersion in the performance of construction projects (dependent variable) that explained by
the variation in independent variables in the regression. (Gujarati, 2004) So with adjusted R
Square value of 0.838, meaning, 83.8% of the variation in construction performance is
explained by the linear relationship with all the independent variables. The corollary of this is
that only 16.2% of the variation in construction performance is unexplained by the relationship.
44
Thus when adjusted R square is high it means that the independent variables included in the
study play an important part in affecting the dependent variable. Generally speaking, the
regression model developed under the study can be considered as a good fit or predictor of
construction performance of save the children.
The individual effects of the independent variables can be explained by their respective beta
coefficients. As per the regression result, the construction performance and contractor related
factors have the strongest positive relationship. 1-unit increment in improving contractor related
factors can cause about 58.5% improving performance of construction projects. This
corroborates with the views of Jamaludin et al., (2014), Assaf et al., (2001) and Chan et al.,
(2002) who found in their respective studies that increasing the contractor related factors would
have a positive impact on construction performance. They noted that high experience and
qualifications of personnel involved in a construction project will assist the project parties to
implement their project goals professionally leading to better performance of quality, time, cost,
productivity and safety of the project. construction planning is a key determinant in ensuring
the project success. They also studied that contractor performance on the contractor’s degree of
involvement and how that affects their performance and found positive result.

The second variable under study was client related factors and according to the regression
result, it has a positive relationship with the construction performance. a 1-unit increment
on this variable will cause about 33.9% increment on construction performance. These
ideas were shared in the study by Dissanayaka and Kumaraswamy (1999) that the
characteristics of client enable a significant contribution to the success of a project.

The third variable was external environment, this factor has a positive relationship with
the construction performance with a magnitude of 1 unit increase in improvement of
external environment factors causes about 26.4% increase in construction performance.
This finding also got along with that of Chen and Kumarsamy, (1997) that stated on their
respective findings that the external factors could be inclement weather condition, act of
God, price fluctuation, unforeseen site condition and civil disturbance. Those factors
should be taken in account in order to avoid any problem within construction project
process. Adelback and Johnson (2013)

45
 identified climate conditions at site as the most important factor affecting the performance
of construction projects by owner, consultants and contractors because it affects the
productivity and time performance of project.

The fourth factor under study was Project characteristics related factors, and this factor
has a positive relationship with the construction performance with 1-unit increment in
improvement of Project characteristics related factors will cause about 14.9% increase in
construction performance. The findings under the study of Chan et al., (2004) examined
factors affecting the success of a construction project and project related factors is
one of the identified factors crucial to project success.

The fifth factor under study was project procedure factors, and this factor has a positive
relationship with the construction performance with 1-unit increment in improvement of
project procedure will cause about 14.5% increase in construction performance. The
findings under the study of Rosli et al., (2006) efficient procurement is very important at
the very outset of the project to carefully consider all factors when selecting the most
appropriate procurement approach for a construction project. This is because each system
has its own feature and peculiarity that will have effect on the cost, time and quality of the
project i.e. the project performance.

The sixth factor under study was labor and material related factors, and this factor has a
negative relationship with the construction performance with 1-unit increment in problem
associated with labor and material related factors will cause about 26.3% decrease in
construction performance. The findings under the study of UNRWA (2006) stated that
local construction projects suffered from poor performance especially poor contractor
performance for many reasons, such as the unavailability of materials and lack of
leadership skills. Any problem associated with this will have negative effect on
construction performance.

The final factor considered in this study was Contractual relationship factors, and as
per the result it has a negative relationship with the construction performance where a 1 unit

46
increase in poor contractual relationship factors would impact about 12.8% decrease in
construction performance. This finding supports the finding under the study of Iyer and Jha
(2005) that the factors affecting cost performance are: project manager's competence; top
management support; project manager's coordinating and leadership skill; monitoring and
feedback by the participants; decision making; coordination among project participants;
owners' competence; social condition, economical condition and climatic condition.
Coordination among project participants was as the most significant of all the factors
having maximum influence on cost performance of projects. Any problem associated with
this will have negative effect on construction performance. and lack of coordination
between designers and contractors, poor monitoring and feedback are few of them. Lack of
training on quality for staff, lack of management leadership as well as lack of previous
experience of contractor was also identified.

Labor and material related factors were ranked the 2nd Influential factors construction
project performance. It is recommended that basic material and works quality assurance
mechanism be in place. Productivity can be affected if required materials, tools, or
construction equipment for the specific are not available at the correct location and time. As
discussed in Zarihun Kifle (2017) thesis, materials related constraints are shortage of
materials, material fabrication delay, slow delivery of ordered materials, and noncompliance
of material to specification, unforeseen material damages and material procurement
problem.

47
 Chapter Five

5. Summary, Conclusion and Recommendations

This chapter concentrates on the analysis and interpretation given in chapter four. A lot of findings
emerged from the study following the presentation of data. Therefore, summary of findings,
conclusion and recommendations is based on the objectives of this study as well as the
recommendations of the researcher.

5.1. Summary of Major Findings

The study was based on the factors affecting the construction projects performance in ACA selected
sectors. It sought to investigate whether resource management, procurement management, stakeholder
management, and quality management related factors influence projects performance. Based on the
objectives of the research stated, the following summaries were made in relation to the findings:

The survey revealed that the major resource management related factors that affect the performance of
the projects are cash flow and financial difficulties, price escalation of construction material in the
market, material wastage on projects, breakdown and failure of construction equipment in the
enterprise, changes in material types and specifications during construction, and unavailability of
construction material in the market.

The survey revealed that the major procurement management related factors that affect the
performance of the projects are lack of an effective and efficient Procurement planning, procurement
control mechanism, and contract management in the enterprise.

Most of respondents agreed that the major stakeholder management related factors that affect the
performance of the project are lack of stakeholder attribute assessment, lack of Stakeholders
involvement in decision making process, lack of stakeholder identification, and lack of stakeholder
communication and engagement.

Most of respondents agreed that among quality management related factor that affect the performance
of projects, lack of quality management system and lack of management commitment and leadership
towards quality were the two most important factors that affect the performance of projects. The

48
regression result reveals resource, stakeholder, and procurement related factors are positively and
significantly influence the project cost performance. Also, regression result reveals resource and
stakeholder management factors are positively and significantly influence the project time
performance .On other hand, resource, stakeholder, and quality related factors are positively and
significantly influence the project quality performance.

5.2. Conclusion
Based on the objectives of the research stated, the following conclusions were made in relation to the
findings:

Findings showed cash flow and financial difficulties, price escalation of construction material in the
market, material wastage on projects, breakdown and failure of construction equipment in the
enterprise, changes in material types and specifications during construction, and unavailability of
construction material in the market were the major resource management related factors that influence
the performance of projects

Lack of an effective and efficient Procurement planning, procurement control mechanism and contract
management in the enterprise were the most important procurement management related factors that
influence the performance of projects.

Lack of stakeholder attribute assessment, lack of Stakeholders involvement in decision making

process, lack of stakeholder identification, and lack of stakeholder communication and engagement
were the most important stakeholder management related factor factors that affect the performance of
projects.

Lack of quality management system and lack of management commitment and leadership towards
quality were the two most important quality management factors that affect the performance of
projects.

Finally, the regression result reveals resource, stakeholder, and procurement related factors are
positively and significantly influence the project cost performance but quality management related
factors were found positive but not significant factor influencing the cost performance of project.
Also, regression result reveals resource and stakeholder management factors are positively and
significantly influence the project time performance but quality and procurement management related
49
factors were found positive but not significant factor influencing the time performance of project.

On other hand, resource, stakeholder, and quality related factors are positively and significantly
influence the project quality performance but procurement management related factors was found
positive but not significant factors influencing the quality performance of project.

5.3. Recommendations for Policy Intervention

Based on the research findings, the following recommendations should be put into practice for the
enterprise who aims at performing better in construction projects.
The enterprise is recommended to use advance payment properly to avoid the cash flow and financial
problems. It should be aware of the business environment risks in their cost estimation and enough
contingency allowances should be there to guard against the increasing material prices. The enterprise
should see that minimum amount of waste should be produced and also the site should be kept clean
in order to minimize material wastage in the project site. The enterprise is advised to set up effective
and efficient construction equipment management system so as to manage it construction
equipment .It is also important for the enterprise to revise the contract document prior to the start of
project execution to avoid changes in material types and specifications during construction. The
enterprise is also recommended to set up effective and efficient resource planning and forecasting to
avoid shortage of construction material and improve the performance of projects.
Project Stakeholders are people who are subjected to, part of, or have decision making over the
project and it is significant to identify and effectively manage them in order to avoid project delays or
failures. Accordingly, the enterprise is recommended to establish a mechanism to manage different
kind of stakeholders.
Procurement management practices have increasingly played an important role in project
performance. The enterprise should adopt a formal procurement planning mechanism that provides the
basis for organizing the work on the projects, facilitate efficient resource utilization, integrated with
the budgeting, and reduces costs. Procurement control mechanism needs to be well developed and
clearly detailed so as to reduce the number of risks which may arise during project implementation
and increase the chance of achieving projects objectives. Contract management influenced project
performance through contract type, acceptance criteria, and dispute resolution mechanism etc. The
study recommends the introduction of contract management training to employees who are involved
in the contract management activities in the enterprise.

50
Quality management is critically required for a construction company to sustain in current
construction market which is highly challenging and competitive and it has to provide the
environment within which related tools, techniques and procedures can be deployed effectively
leading to operational success for a company. Taking in this into account, the enterprise should adopt
appropriate quality management system to enhance it project performance. Likewise, Management
commitment to quality and to continuous quality improvement is very important in each phase of the
building process. Management must participate in the implementation process and be fully committed
to it if quality management practice is to succeed.

 Contractors should have enhanced further for skilled workers who are
accessible in all sides at both office and site will solve related problems
on proper construction management, quality of work, cost control and
time management.
 There should be accurate construction planning and management to
guarantee the delivery of a project on schedule and within budget is only
feasible by having technically talented skilled staffs.
 Jimma university construction Project leaders‟ should have early &
continuous involvement in the project to get on time suggestion about
their sites, to work on problems, regulating plan to partner actual site
conditions.
 There should be government control for the escalation of material prices
and improper quality of materials in construction projects.
 The owner of the projects and government should solve lack of supply of
materials and skill of workers.
 There should be government and projects owners who are selecting a
competent contractor for a job that is serious for the successful delivery
of a construction project and to solve the problems of the escalation of
material prices and improper quality of materials in construction
projects.

51
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 Harambee University Adama Campus
Appendices

Questionnaires and Interview Guided Questions

Thank you in advance for taking time to fill this questionnaire.
I am Damisew Hordofa, MA candidate at Harambee University (HU) in the department of
Project Management. The aim of this questionnaire is to study “Factors affecting schedule and
cost performance in AAT”. I sincerely request you to respond to the questions as honestly as
possible with exact relevant fact and return the completed questionnaires accordingly. All data
included in this questionnaire will be used only for academic purpose and will be strictly
confidential.

Thanks in advance for your cooperation and help

Detail of the researcher

Name: Damisew Hordofa

Program: Masters of Arts in Project Management

Mobile: +251-951-01-75-06
Email: [email protected]

Harrambee University Adama Campus, 2024

55
Section A: General Information

1. Gender: Male

Female

2. Age (in year): 20-29 years

30-39 years

40-49 years

50-59 years

3. Profession: Architect

Project Engineer
Engineer

Site Engineer

Quantity surveyor
4. Level of education: Diploma
Degree

Postgraduate

Others please specify:

5. Years of work experience (in years): Below 2years

2-5 years

6-10 years

56
 Above 15 years
6. For how many years have you worked on the project?

Below 1

1-2 years

Above 3 years

Section B: Factors Affecting the Performance of Construction Projects

Below are numbers of theorized factors affecting the cost performance of construction
projects. From your experience, please express your opinion on the importance of the
following factors as affecting the cost performance of building project in ACA. (Please tick the
appropriate box √) with the following ordinal scale 1-5.
1) What is your level of perception towards statements for factors affecting the performance of
construction project?
Circle using a scale of 1 to 5

Where 1 = Strongly Disagree

2= Disagree
3= Neutral
4= Agree
5 = Strongly Agree

57
 Procurement Management Related
2
Factor
There is lack of an effective and efficient
2.1
Procurement planning
1 2 3 4 5

There is lack of an effective and efficient

2.2
Factors Description Strongly
1 2 3 4 Strongly
5
SN contract management in the enterprise.
Disagree Disagree Neutral Agree Agree
There is lack
Resource of an effective
Management Related
1
2.3 Factor control mechanism in the
procurement 1 2 3 4 5
enterpriseConstruction material
1.1 There is material
Stakeholder wastage
Management on
Related
1 2 3 4 5
2
projects Factor
There
The is unavailability
enterprise of its
do not identifies
2.1
1.2 construction
Stakeholders material in the
Properly.
1 2 3 4 5
market
The enterprise do not properly
2.2 There are changes
understands area of inStakeholders’
material 1 2 3 4 5
1.3 types and
interests specifications during 1 2 3 4 5
construction.
The enterprise do not assesses Attributes
There is price
(power, urgency, escalationofof
and proximity)
2.3
1.4 construction material in the 11 22 33 44 55
Stakeholders
market.
The enterprise do not Evaluate the
2.4 Construction equipment 1 2 3 4 5
Stakeholder Acceptability
There is breakdown and
1.5 The enterprise do not keeps and promote 1 2 3 4 5
2.5 failure of construction 1 2 3 4 5
good relationships with stakeholders
equipment in the enterprise.
The
Thereenterprise do not formulates
is unavailability of
construction
appropriate equipment
Strategies and
to manage
2.6
1.6 11 22 33 44 55
spare parts in the enterprise
Stakeholders
The enterprise
Human do not
resource predicts
management
2.7 stakeholders
There is lack ‘reactions
of highly for 1 2 3 4 5
1.7 qualified and
implementing experienced
the strategies 1 2 3 4 5
personnel
There is in the enterprise.
lack of Stakeholders
Project teams
„Involvement in have no Making
Decision adequate
11 22 33 44 55
2.8
1.8 skill and
process knowledge
in the enterprise of
supervision.
The enterprise do not maintains
2.9 There is lack adequate Health
alignment among stakeholders 1 2 3 4 5
1.9 and safety for employees at the 1 2 3 4 5
The enterprise do not communicates
projects site.
2.10 with and engaging stakeholders 1 2 3 4 5
There is lack of productivity of
1.10 properly
labors inand frequently
the projects. 1 2 3 4 5
Project Quality Management Related
3 Factors

There is lack of an effective project

3.1 quality planning, assurance and 1 2 3 4 5

controlling system in the enterprise.
There is lack of management

3.2 commitment and leadership towards 1 2 3 4 5

quality in the enterprise.
There is lack of an involvement of
58
3.3 suppliers to enhance projects quality 1 2 3 4 5
performance.
The enterprise do not provides adequate

3.4 training to enhance the quality of 1 2 3 4 5

 Section C: Performance of Construction Projects

What is your level of perception towards statement the performance of construction project?
Circle Using a scale of 1 to 5 where
1 = Strongly Disagree 2= Disagree
3= Neutral
4= Agree
5 = Strongly Agree
Strongly Strongly
s.n Performance Description Disagree Neutral Agree
Disagree Agree

1 Quality Performance
There is no client and user
1.1 satisfaction with construction 1 2 3 4 5
product of the enterprise.
Projects are not completed and
1.2 transferred to client without 1 2 3 4 5
defects.
2 Time Performance
The enterprise do not completes
2.1 projects within the contract 1 2 3 4 5
schedule (time).
3 Cost Performance
The enterprise do not completes
3.1
projects as per the contract cost 1 2 3 4 5

Section D: Mitigation Strategies

Please state your possible mitigation strategies to minimize cost overrun problem of
ACA.
___________________________________________________________________________

Please state your possible mitigation strategies to minimize delay problem encountered in
ACA.

____________________________________________________________________________

59