ASSESMENT OF TIME AND COST OVERRUN IN CONSTRUCTION PROJECTS (CASE OF MIDROC ETHIOPIA CONSTRUCTION PLC.)

Abstract

The main objective of the research was to asses the cause of time and cost overrrun in the case of MIDROC Ethiopia construction.Mixed method approach was used to collect quantitative and qualitative data.questionnaire ,interview and focus group discusion used as primary data collection method .Total of 88 target population used used in this study ,74 questionnaire is distributed to consultants ,clients and contractor.7 of them participated in focus group discussion held at red cross project and out of which 3purposely selected participant are selected for interview.secondary data collected for eight project from monthly Report, payment, time extension letter and correspondence letters, from desk study rate of time overrun range from minimum 4.72% to maximum 270.42% of the contract amount.Relative importance index and descriptive statistics were used to analyze data in this research. The finding reveal that financial difficulties (shortage),delay of material delivery to site,poor economic conditions (currency exchanges, inflation rates, etc are top three cause of time overrun and fluctuations in the cost of building materials, cash flow and financial difficulties faced by contractors, delay in material delivery are top three cause of cost overrun. Finally, some recommendations have been delivered under this study on what actions should be taken to tackle the two major problems of schedule delay and cost overrun.