The Determinant factors to Project Success in the Ethiopian Real estate industry

Abstract

This master thesis motive was to assess ‘The Determinant factors to Project Success in the Ethiopian Real estate industry’’. Ii is conducted with an objective of investigating the critical success factors of project success and its extent effect on project success. The study has met its objectives through providing answers for the basic questions of how successful real estate development construction projects’ management is, what are the major critical success factors in real estate construction projects management success, and what impact do the factors have in real estate construction projects success. The study area is not adequately studied from Ethiopian real estate development companies’ perspective and the problem is still unsolved which makes this study is valuable. 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, 132 project managers were selected using simple random sampling method. The primary data are collected through questionnaires. The study has used Ashley & Jaselskis’s (1987) seven critical success factors of construction projects as independent variables where project success is used as a dependent variable. Project success is measured in terms of time, cost and quality. 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. Six out of the seven critical success factors are found to have significant impact in the real estate development construction projects which are organizational planning, project manager goal commitment, project’s scope and work definition, project manager’s capabilities and experience, safety precautions and applied procedures and control system. But, only three have positive impact which is clarity of project scope and work definition, project managers’ capability and work experience and use of control systems which is the major findings of the study.