INVESTIGATING SUCCESS FACTORS FOR REAL ESTATE DEVELOPMENT CONSTRUCTION PROJECTS IN ADDIS ABABA

Abstract

This study entitled “Investigating Success Factors For Real Estate Development Construction Projects with Special Reference to Real Estates in Addis Ababa City” is conducted with an objective of assessing the factors that contributes to the success of projects management in real estate development construction projects. The study has met its objectives through providing answers for the basic questions of how successful real estate development construction projects’ management are, what are the major success factors for real estate development construction projects management; and what is the impact of success factors in real estate construction projects’ management. The study area is not adequately studied from Ethiopian real estate development companies’ perspective or not available which makes this study is valuable to fill in the study area. The study is conducted on real estate developers in Addis Ababa. Both primary and secondary data were collected for the accomplishment of the study. For the primary data, 118 project managers who are working in 26 real estate development companies which delivered at least one round of residential houses were selected. All the project managers who have completed at least one real estate development construction projects are incorporated in the study making the study to implement censes method. The primary data are collected through self-administered questionnaires. The study have used Ashley & Jaselskis’s (1987) seven critical success factors of construction projects as independent variables where project success is measured in terms of time, cost and quality are used as dependent variables. Correlation technique was used to indicate the relationship between the independent and dependent variables and a binary logistic regression was used to identify the impact of the success factors over successful project completion. Four out of the seven critical success factors are found to be present in the real estate development construction projects which are organizational planning, project manager goal commitment, project’s scope and work definition, and control systems. Six of the seven critical success factors (except project scope and work definition) are found to have as significant impact on project management success. Though, only four have a positive impact which are project team motivation and goal orientation, project managers’ competency and goal commitment, safety precautions and applied procedures and control systems which is the major finding of the study.