THE PRACTICE OF PROJECT MANAGEMENT IN REAL ESTATE CONSTRUCTION COMPANIES IN ADDIS ABABA, ETHIOPIA

Abstract

The application of Project Management (PM) tools and techniques in construction is gradually becoming an important issue in developing economies, especially in a country like Ethiopia where projects of different size and structures are undertaken. The paper examined the application of the project management practice in Real Estate construction companies in Ethiopia, Addis Ababa. There are different problems that are faced by Real Estate projects such as delay, nonperformance of projects, not meeting required specifications, and dissatisfaction of customers, etc. This study aims to assess the extent to which project management is applied in Ethiopian Real Estate projects and their consistency in phases of project life cycle. Major data for the assessment are obtained from 17 Real Estate companies through questionnaire. Data are also gathered from 11 construction consultants. Mean, standard deviation analysis tools are used. SPSS Statistics is used to simplify long statistical computations. The findings reveal that Project integration, scope, cost, HR, procurement, and stakeholder are well managed in the Industry. In addition to this, Project initiation process groups, project execution process groups and project closing process group are practiced well. On the contrary, project time, quality communication and risk management knowledge areas and planning and monitoring and controlling process groups are poorly practiced. It is also found that the practice of all project management knowledge areas has no consistency throughout phases of project life cycle of Ethiopian Real Estate projects. Recommendations are forwarded for Real Estate companies to maintain their good project management practices that are mentioned above, to improve the other knowledge area and process group practices, to consider causes of not practicing well while making project decisions, to continuously conduct customer satisfaction survey to take preventive actions in advance. Finally, areas for further study are indicated.