| Abstract: | Delay can be defined as a condition the actual work does not complete in an estimated time period. Delay can be minimized or eliminated if the causes are identified. Therefore the purpose of this study is to assess the major causes for DBE financed projects. Fourth two (42) causes of project delay are identified from the literature reviews. The questionnaire survey was distributed to 128 participants (clients, and bank employee). Relative Importance Index (RII) was calculated and accordingly the major causes of DBE financed project implementation delay have been identified analyzed. From the overall relative importance index analysis, most critical factors of DBE financed project delay have been identified as (1) Shortage of foreign currency;;(2)Failure to contribute equity contribution in time;(3)Plan (scope) change by clients or client initiated variations;(4)Governments failure to avail the required infrastructures like road, water, power on time;(5)Lack of cooperation and insufficient communication among different stakeholder government organizations like the DBE, Investment Office, Different Ministerial Offices, Regional Governments, EEPCO and ERCA etc.;(6)Fluctuation in foreign currency;(7)Fluctuation of prices of materials and increase in total cost of projects;(8)Diversion of funds for unintended purpose by promoters;(9)Existence of missed items & long time taken to incorporate them through additional loan;(10)Underestimation of complexity of projects by promoters. |
