FACTORS AFFECTING TIME DELAY AND COST OVERRUN IN CONSTRUCTION OF CONDOMINIUM IN ADDIS ABABA: PROJECT 6 HOUSING DEVELOPMENT

Abstract

The main objective of this study was to identify the factors affecting time delay and cost overrun in the construction of condominium house Project 6. Project 6 housing development construction was chosen for this study out of 18 condominium house projects in Addis Ababa because it was the closest project to my living area and researcher witnessed work stoppage for a long period of time, motivating me to conduct research on the factors that cause delays and cost overruns . It is a delayed project relative to its baseline schedule time and cost, planned time 7/1/2015 G.C for only one years to 8 month, which was expected to be completed G+7 in 24 months, G+4 in 18 months, with works running concurrently, but it has now taken 48 months with an 89.24 % performance .To collect both qualitative and quantitative data for the analysis, a mixed method research approach was used. The major factors of delay were identified using a questionnaire and an interview. A total of 39 questionnaires were distributed to the project's three key groups of participants, namely the owner, consultant, and contractors, and three of them participated in the interview. Explanatory (causal) research method was used to analyze the results. The data from the survey was statistically analyzed. The most significant factors influencing time delay and cost overruns were identified using the relative important index process. The respondents' level of agreement/disagreement on the causes of time delays and cost overruns was also calculated using Spearman's correlation coefficient analysis. The study's findings showed that the main factors affecting of construction delays and cost overruns in condominium house projects were Fluctuation of material price, Poor planning and scheduling, Poor inspection, Less responsibility for the work, Lack of government control, Inadequate time estimation , Poor monitoring and evaluation, Scarcity utility, Less follow up of progress and improper site management for time overrun and Less productivity and inefficiency of equipment, Inflationary increase of materials price, Un periodic maintenance cost of machineries, Change of consultants for design, supervision and contract management, Late delivery of material on site, Unskilled personnel , Inefficient material management, Suspension of work, Low experience of project managers and Low experience of consultants for cost overruns.