CAUSES AND EFFECTS OF DELAY IN CONSTRUCTION OF CONDOMINIUM HOUSES IN ADDIS ABABA: PROJECT 17 HOUSING DEVELOPMENT CONSTRUCTION IN FOCUS

Abstract

The main objective of this study was to identify the causes and effects of the delay in the construction of condominium house Project 17. Among 18 projects of condominium houses in Addis Ababa, Project 17 housing development construction was chosen purposively for this study because it is the most delayed project compared to its baseline plan, which was planned to be completed in 18 months but it has already taken 51 months with 62.83% performance. Mixed method research approach was used to capture both qualitative and quantitative data for the study. Questionnaire and interview were used to identify the major causes and effects of delay.37 project team members filled the questionnaire and 5 of them took part in the interview. For the data analysis, both descriptive statistics and multiple linear regression methods were used. Schedule performance index and cost performance index were computed to evaluate the performance efficiency of Project 17. The result revealed that this project had poor performance but utilized above budget and has negative cost variance. A total of eleven explanatory variables were considered in the multiple linear regression model out of which eight variables significantly influenced the level of delay. A combined causes and effects included in the model revealed that about 99.60% of delay of Project 17 was due to contractor related causes, client related causes, material related causes, and labor related causes, corruption and effects of time overrun, cost overrun, and mistrust on owner of the project. Delay in Project 17 was significantly influenced by client related causes, materiel related causes, corruption, time overrun, and cost overrun at 1% level of significance and contractor related causes and mistrust at 5% level of significance. However, labor related causes affected delay in Project 17 at 10% level of significance. By contrast, consultant related causes, effect of dispute and litigation were insignificant for Project 17.