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CAUSES OF CONSTRUCTION DELAY IN ETHIOPIAN

PUBLIC BUILDING CONSTRUCTION PROJECTS


Ephrem Girma Sinesilassie Ph.D Research Scholar Civil
Engineering Department Indian Institute of Technology
(IIT) Delhi. His teaching and research interests are in the
area
of
construction
project
management,
Project performance appraisal, Project Success Factor,
Schedule, Cost, Quality and Safety. Werku Koshe Hareru,
M.Tech. Lecturer, Department of Civil Engineering. Dire
Dawa University. His teaching and research interests are
in the area of construction project management,
productivity assessment and improvement, sustainable
construction. Syed Zafar Sahid Tabish, Ph.D., is Director
(Works), Office of CAG of India, New Delhi, India. K.N. Jha,
Ph.D., is Associate Professor, Department of Civil
Engineering, Indian Institute of Technology Delhi.
ABSTRACT
In Ethiopia, construction delays are occurring in every
phase of construction projects. If delay is not identified
and the corrective project management decision is not
taken in time, a project may incur extra cost and
extension of project time which gives rise to
dissatisfaction to all the parties involved. It is observed
that not much research work for causes of delay in public
building construction projects in Ethiopia is undertaken
and reported. A questionnaire survey and personal
interviews of experienced professionals have been
conducted to solicit the causes of delay from the
viewpoint of clients, consultants and contractors. The
perspective of clients, contractors and consultants has
been analyzed to rank the causes of delays based on their
relative importance index. The findings show that the
main critical factors that cause construction delays in
Ethiopia are: difficulties in financing project by contractor,
escalation of material prices, ineffective project planning
and scheduling, delay in progress payment for completed
works, and lack of skilled professional in contractor
organization.

Keywords:
Ethiopia.

construction

delay,

delay

causes,

BACKGROUND
A construction project is commonly acknowledged as
successful, when it is completed on schedule, within the
agreed budget, conforming to quality specifications in the
safest manner and to stakeholders satisfaction.
Functionality, profitability to contractors, absence of
claims and court proceeding and fitness for purpose for
occupiers have also been used as measures of project
success (Takim & Akintoye, 2002).
Public construction projects in Ethiopia are parts of the
countrys development initiative. It shares considerable
amount of the countrys scarce financial resources. In
Ethiopia, the construction industry is the highest recipient
of government budget in terms of government
development program. Consequently, public construction
projects consume an average annual rate of nearly 60%
of the governments capital budget (MoWUD ,2006).
Project success is the ultimate goal of every construction
project. To determine whether the project is completed as
expected, final project performance must be evaluated.
Completion time is one of the performance criteria of
construction projects, along with cost, quality, safety, and
no-dispute etc.
The government of Ethiopia and its
development partners continue to allocate huge financial
resources to finance infrastructure development, but still
the projects face considerable low schedule performance.
Chan & Kumaraswamy (1995) defines construction delay
as late accomplishment of planned work.
A number of studies have been conducted to examine
causes of delay in public construction projects in
developing countries. However, in Ethiopia there is no
thorough and adequate study on causes of delay in public
construction projects.
Fung et al. (2006) opined low speed in construction
causes delay. Delay in decision making by project

participant also results in delay (Divakar & Subramamian,


2009).
Mansfield et al. (1994) identified 16 major factors that
caused delays and cost overruns in Nigeria. A
questionnaire survey was carried out with contractors,
consultants and client organizations in Nigeria. They
presented that the causes of delay and cost overruns in
Nigerian construction projects were attributed to finance
and payment arrangements, poor contract management,
shortages in materials, inaccurate estimation, and overall
price fluctuations.
Assaf et al. (1995) identified 56 main causes of delay in
Saudi large building construction projects and their
relative importance. Based on the contractors surveyed
the most important delay factors were: preparation and
approval of shop drawings, delays in contractors progress
payment by owners, and design changes. From the view
of the architects and engineers the cash problems during
construction, the relationship between subcontractors and
the slow decision making process of the owner were the
main causes of delay. However, the owners agreed that
the design errors, labour shortages and inadequate labour
skills were important delay factors.
Mezher & Tawil (1998) carried out research to find out the
causes of delays in construction industry in Lebanon. A
total of 64 causes of delays were identified through
research in which client, contractor and consultant took
part in the study. All three parties generally agreed on the
ranking of the major categories of delay factors. Owners
had more concerns with regard to financial issues, while
contractors ranked contractual relationships the highest,
and finally, consulting firms ranked project management
the highest. These causes were categorized in 10 main
groups: materials, workers, equipment, financing,
changes, government relations, project management, site
conditions, environment and contractual relationships.
Abdalla et al. (2002) identify the most important causes of
delay in construction projects with traditional type
contracts from the viewpoint of construction contractors
and consultants. Results of their survey indicates owner

interference, inadequate contractor experience, financing


and payments, labour productivity, slow decision making,
improper planning, and subcontractors are among the top
ten most important factors.
Assaf & Al-Hejji (2006) conducted a time performance
survey of different types of construction projects in
Eastern Province of Saudi Arabia to determine the causes
of delay and their importance according to each project
participant (owner, consultant, and contractor). It was
concluded that 70% of projects experience time overrun.
The survey was conducted with 23 contractors, 19
consultants and 15 owners. They identified seventy-three
(73) causes of delay and grouped them into nine classes
during the research. The most common cause of delay
identified by all three parties was change order. The
overall results are stated that the factors related to
labour, contractors, project owners and consultants are in
the highest rank.
Dessa (2010) conducted a study on Claims in Ethiopian
Construction Industries. In this study 15 completed
projects were studied, and project delays up to 500 % of
its contractual time and cost increase of greater than 80
% of its contractual sum were noticed. The main causes
for these problems were thought to be the improper
project management and claim administration.
Therefore, it is important to study the factors causing
delay in Ethiopian public construction projects. Thus the
following objectives are set for the study.
OBJECTIVES
The objectives of this study are:

To investigate the causes of delay in building construction


projects in Ethiopia.

To rank the causes of delay factors on the basis of their


importance index.

To suggest possible solutions that would help to reduce


the risk of delays in building construction projects.

RESEARCH METHOD
After critically reviewing the existing literature, related to
causes of construction delay (CCD) in construction
projects, 88 CCD factors were identified and grouped in to
eight broad categories which are related to: client,
consultant/supervisor,
contractor,
designer,
labour,
material, equipment, and external. The questionnaire was
designed to assess the opinion of clients, design
engineers, consultants, and contractors on the relative
importance of causes of delay in Ethiopian public building
construction. The identified 88 causes of delay factors
were adopted in the design of questionnaire for the study.
Responses were collected from respondents and
importance index were used to analyze the data
gathered.
Characteristics of respondents.
The scope of this research includes public building
construction in Ethiopia and the population of the study
consists of all owners, consultants, and contractors
participating in execution of public building construction
projects. A total of 110 questionnaires were distributed to
respondents and 56 responses were collected. Out of
these responses only 51 were valid. This is because 5
respondents were not properly filled the questionnaire.
The response rate of respondents having different
experience is shown in the Chart 1. Maximum responses
have come from respondents with work experience of 510 years (35.29%) and 10 15 years (35.29%). The
average experience of the respondents was about 12
years.
Chart 1: Working experience of the respondents.

Pe rce ntage of Re spondents


40.0
35.0
30.0
25.0
20.0
15.0
percentage 10.0
5.0
0.0

Data analysis method.


The mean and standard deviation of each individual
factor are not suitable statistics to assess the overall
rankings because they do not reflect any
, 1997).
Hence, the data for this study were analyzed through
three types of indices using the following expressions:
5

i=1

Severity Index (S.I %) =

a n

( 5if Nif )100

Frequency Index (F.I %) =

a n

is
is
)
( 5
N
i=1

Importance Index (I.I) (%) =

100

F .I S .I
100

Where aif and ais are numbers of respondents who choose


a certain frequency and severity degree respectively, n if
and nis are degrees of frequency (ranges from 1 for Never
happen to 5 for Always happen) and degree of severity
(ranges from 1 for Very less occurrence to 5 for Extreme
occurrence) respectively, N is total number of
respondents.

RESULTS
Ranking of delay factors.
As it is shown in Tabe-1 the top 10 causes of delay from
clients, consultants/supervisors, and contractors' point of
view were identified and ranked according to Importance
Index (I.I). Among the listed top ten causes of delay, the
most frequent and critical delay factors are difficulties in
financing project by contractors, escalation of material
prices, ineffective project planning and scheduling, delay
in progress payment for completed works, and lack of
skilled professional in contractor organization.
Table 1: Top ten ranking of construction delay factors.

Ident Delay factors Categor Clients


ity
(DF)
ies
I.I.

Consulta Contract
nts
ors

Combine
d

Ran IMP.I Ran IMP.I Ran I.I.


k
k
k

Ran
k

DF32

Difficulties in
financing
project by
contractor

Contract 74.7 2
or
4

75.0 1
9

65.3 4
5

68.7 1
5

DF67

Escalation of
Material 78.8 1
material prices
7

62.9 4

63.0 7
9

65.5 2
7

DF30

Ineffective
project
planning and
scheduling

Contract 71.7 6
or
5

70.4 2

60.1 12
9

64.5 3
3

DF14

Delay in
progress
payment for
completed
works

Clients

62.7 5

77.0 1
4

63.0 4
5

DF29

Lack of skilled
professional in
contractor
organization

Contract 72.7 5
or
2

62.7 6
2

60.0 13
5

62.5 5
7

DF55

Fluctuating
labours
availability
season to
season
/Seasonal
labours
availability

Labour

56.7 8
1

74.1 2
2

60.5 6
9

DF68

Late delivery
of materials

Material 56.6 23
4

54.7 10
6

68.5 3
2

58.4 7
6

DF58

Low
productivity of
labour

Labour

55.7 27
8

65.0 3
3

52.1 25
5

54.9 8
3

DF63

Unqualified /
inadequate
experienced
labour

Labour

65.9 9

54

51.2 26
1

46.8 9
9

DF49

Insufficient
Designer 71.7 6
data collection s
5
and survey
before design

50.5 27
6

46.8 10
5

44.8 50
4

57.4 19
9

11

70.4 2

Ranking of categories of delay.


As stated above the causes of construction delay (CCD) in
construction projects were identified in eight broad
categories
which
are
related
to:
client,
consultant/supervisor,
contractor,
designer,
labour,
material, equipment, and external. Their ranking as
perceived by the three groups of respondents is shown in
Table 2 below.

Table 2: Ranking of categories of delays


Category

Frequency of
occurrence

Degree of Importanc
severity
e Index

F.I.

Rank

S.I.

Ran
k

I.I.

Ran
k

Contractors related
factors

65.97

69.73

46.0
1

Material related factors

65.15

70.10

45.6
7

Labours related factors

65.23

66.84

43.6
0

Client related factors

63.89

65.52

41.8
6

Consultants /supervisors 62.86


related factors

66.16

41.5
9

Designers related
factors

62.44

66.58

41.5
7

Equipment related
factors

57.45

63.33

36.3
9

External related factors

52.13

54.81

28.5
7

The Spearmans rank correlation coefficient (Myers & Well,


2003) is applied to measure the degree of agreement or

disagreement associated with the importance ranking of


each two stakeholders for a single factor of delay, while
ignoring the ranking of the third party. The results present
that the highest degree of agreement is between clients
and consultant, which is 88%. The lowest degree of
agreement is between client and contractor, which is
67%, and between consultant and contractor, it is 73%.
The correlation coefficients were found to be significant at
95% confidence level.
Rating of time performance in public building
construction projects.
Using general question in the questionnaire the
respondents were asked to rate the time performance of
public building construction projects in which they were
involved in execution. The result shows that 51.12 % of
respondents said only 1% of the projects were completed
on the targeted completion time, 15.68 % of respondents
said 5 % of the projects were completed on targeted
completion time, 9.8 % of respondents said 10 % of
projects were completed on target completion time, 7.8%
of respondents said 25 % of the projects were completed
on target completion time, 7.8% of respondents said 50 %
of the projects were completed on targeted completion
time, 7.8% of respondents said 75 % of the projects were
completed on targeted completion time. The above
discussion shows the poor schedule performance of
Ethiopian public building construction projects.

Comparison with other African countries.


The result obtained from this study was compared to the
result of studies conducted in other developing countries
like Egypt, Nigeria, and Tanzania. As it is shown in Table 3
below finance and payments of completed work and
ineffective project planning and scheduling are found to
be common causes of delay for all of these countries.
Whereas, Low productivity of labour, and unqualified
workforce are found to be common causes of delay for
Ethiopia, and Egypt. Further, shortage of construction

materials is found to be common causes of delay for


Ethiopia, Egypt and Nigeria.

Table 3: Top ten factors causing construction delay in


four African countries

Ran
k

Current
study
(2015),
Ethiopia

Kikwasi (201 Marzouk and El2), Tanzania.


Rasas (2014),
Egypt.

Mohammed
and Isah
(2012),
Nigeria.

Difficulties in
financing
project by
contractor

Design
changes

Finance and
payments of
completed work
by owner

Improper
planning

Escalation of
material
prices

Delays in
payment to
contractors,

Variation
orders/changes of
scope by owner
during
construction

Lack of
effective
communicatio
n

Ineffective
project
planning and
scheduling

Information
delays

Low productivity
level of labours

Design errors

Delay in
progress
payment for
completed
works

Funding
problems

Effects of
subsurface
conditions (e.g.,
soil, high water
table, etc.)

Shortage of
supply like
steel,
concrete

Lack of skilled Poor project


professional
management,
in contractor
organization

Ineffective
planning and
scheduling of
project

Slow decision
making

Fluctuating
labours
availability
season to
season
/Seasonal
labours
availability

Compensation Difficulties in
issues
financing project
by contractor

Late delivery
and shortage
of materials

Disagreement
on the
valuation of
work done

Type of project
Shortage of
bidding and award materials
(negotiation,
lowest bidder)

Low
productivity
of labour

Conflicts
among the
involved

Shortage of
construction
materials in

Financial
issues

Cash-flow
problems
during

parties

market

Project
schedule
changes

Late in revising
Increase in
and approving
quantities
design documents
by owner

Unqualified /
inadequate
experienced
labour

10

Insufficient
Supply /
data
procurement
collection and problems
survey before
design

Unqualified
workforce

construction

Mismanageme
nt by the
contractor
(financial,
supplier
support, subcontractor)

DISCUSSION OF THE RESULT


The five most significant factors that cause delay in
Ethiopian public building construction projects are
discussed below:
Difficulties in financing project by contractors
According to Zagorsky (2007), financial difficulty is
defined as getting into a situation where a respondent's
credit is adversely impacted, such as not paying bills. If
the contractors have problem in paying money for the
materials to be used, labours salaries and equipment to
be used for construction work etc. it can be said that they
are in financial difficulties.
The financial difficulty of contractors has reportedly been
one of the important reasons of delay in construction
projects (Assaf & Al-Hejji, 2006; Frimpong et al. 2003;
Odeh & Battaine, 2002; Sambasivan & Soon, 2007;
Mansfield et al. 1994). They all found that delay in
payment from the client would eventually cause financial
difficulties to the contractor.

Furthermore, Thornton (2007) postulated that insufficient


capital is one of the major causes of financial difficulties
among contractors. Liu (2010) also pointed out that poor
financial control by the contractor can lead to insufficient
capital. Hence, the contractor will have excessive debt,
which causes them to face financial difficulties, as they
cannot pay back the debt. Thus, it is very difficult for the
contractor to execute all activities in the project according
to the planned duration, which results in delay of project
completion time.
Escalation of material prices
Escalation of material prices is certainly another key
factors affecting time performance of most construction
projects in Ethiopia.
The unpredictable inflationary trend which is observed in
many developing countries is the main causes of
escalation of material price. Besides, sometimes fake
scarcity may be developed by the providers of materials
to make a hyper-inflation in developing countries.
During cost estimation process the estimator should
consider appropriate inflation factor. This is because
during the construction period the cost of construction
materials, tools, labours, equipment etc. may vary from
time to time.
Price escalation has, and will continue to cause, such
negative impacts as delayed projects, lack of firm price
quotes, higher project costs, and perversely, a significant
rise in the incidence of jobsite construction materials
theft. The cost impacts due to materials price escalation
can be mitigated through aggressive value engineering
for substitute materials, early purchases of those
materials subject to escalation risk, and early supply
commitments. To effectively utilize this method, owners
and contractors should seek the early involvement of
specialty contractors and their collaboration with the
design team.

Many researchers have found escalation of material prices


as the most important causes of delay in construction
projects (Frimpong et al. 2003; Sweis et al. 2008;Abdullah
et al. 2010;Fugar & Agyakwah-Baah (2010); Chan &
Kumaraswamy (1997); and Sambasivan & Soon 2007).
Ineffective planning and scheduling by contractors
Planning and scheduling is the basic activity for every
construction work. Ineffective planning and scheduling
has a significant impact on construction delays. It should
be developed from the inception of the project until
completion. The reasons why contractors are not able to
produce effective planning and scheduling and follow it
effectively may be due to inexperienced staff and
shortage of workers at the site, financial problem, and
poor site management. The study by Odeh & Battaineh
(2002), and Assaf & Al-Hejji (2006) revealed ineffective
planning and scheduling by contractors is the significant
causes of delay in construction projects. Tabish & Jha
(2012) in their research work also found that sound preproject planning results in successful completion of public
projects.
Delay in progress payment for completed works
Delayed payments of work done by clients on
construction projects in Ethiopian construction industry
are considered to be a factor that causes delay. It causes
severe cash-flow problems to contractors and this may
have a devastating effect down the contractual payment
chain. Regular monthly payment to contractors for work
done removes constraints which otherwise may have
impeded project progress to cause delay and cost
overruns. Failure to provide adequate funding to
contractors for the job will make it difficult for the
contractors to meet project objectives (Yaw et al. 2003).
Delay in progress payment for completed works was
found to be one of the major factors that causes schedule
overrun (Hamzah et al. (2011); Fugar & Agyakwah-Baah,
2010; Mahamid, 2013;& Abedi et al. 2011). This is in
agreement with this study.

Lack
of
skilled
organization

professional

in

contractor

Shortage of the required skills in the construction sector is


a long-term problem and will continue to influence project
time and costs. There is a high demand for skilled labour
and professional in the local market.
The main problem facing the construction industry in
Ethiopia is a lack of skilled engineers, project managers
and other specialists. Due to this fact many construction
companies suffer from the high turnover of skilled
technicians, engineers, project managers, and labours.
The education and training programs given across the
country through various higher institutions, technical
schools and other organizations etc. are clearly
inadequate to meet the need of the large percentage of
skilled workers. Many researchers have found lack of
skilled professional in contractor organization as the most
important causes of delay in construction projects (Islam
et al. 2015; Al-Kharashi & Martin, 2009; and Wong&
Vimonsatit, 2012).
RECOMMENDATIONS
During the personal interviews of experts from Ethiopia, a
number of recommendations emerged to avoid
construction delays in Ethiopian public building projects.
The authors classified them under three categories of
recommendation depending on the stakeholders such as
client, contractor, and consultant. The recommendations
are given in bullet points as below:
Actions to be taken by client

The design drawings should be integrated and there


must be a party for checking the harmonization of
various available drawings before construction phase.

Employ experienced and competent professional


consultant/ supervisor who is capable to carry out his
duties and responsibilities related to the work with
good payment.

Avoiding the lowest evaluated bidder approach.

Releasing payments on prescribed time based on


contract agreement.

Actions to be taken by consultant/supervisor

Sufficient data collection and survey, and detail site


investigation and design should be done before
tender to avoid future variations.

Prepare always clear and adequate detail drawing and


BOQ (Bill of quantity) without any mistakes and
discrepancies.

During cost estimation process the estimator should


consider appropriate risk factor and escalation factor
because during the construction period the cost of
construction materials, tools, labors, equipment etc.
may vary from time to time.

Fixing reasonable time and schedule for project.


Define scope of work as precise as possible to avoid
change order.

Give orientation to the clients, what impacts are


encountered on the construction of the project.
Example,
immediate
approval
of
payments,
variations, additional works, and price escalation are
improving project success.

Approve the requested payments, additional works,


variation orders etc. on time, as per the rule and
regulation of contract, to successful completion of the
construction of the proposed projects on time.

Actions to be taken by contractor

The contractors should employ the right professional


for the right position related to work, i.e. on project
manager (PM) position the contractor should assign a
person who has experience and specializes on
construction
technology
and
management,
construction engineering and management, and
related professionals.

The project manager as well as a top level


management
should
apply
proper
project
management techniques, such as: proper planning,
scheduling and monitoring, proper cash flow and
resource scheduling together with strict monitoring.

Compute with real price but not to win and collect


advance payment and disappear. Open to learn from
others (avoid rigidity). Develop philosophy on
financial management per project. And, do not use to
finance a project from the finances of other projects.

Arrange some incentives and give training,


motivate labours and increase productivity.

Develop on time order culture and stock piling of


regular materials. Strong and proper material
procurement, schedule as well as its implementations
is a reliable means for resolving material related
delays.

There should be adequate contingency plans to cover


the material price escalation.

to

CONCLUSIONS
This study is focused on delay of construction of public
building projects in Ethiopia. The study sought the views
of clients, consultants, and contractors on the relative
importance of the factors that cause delays in building
construction projects. Moreover, it was observed that all
the three groups of respondents generally agreed that out
of a total of 88 factors the top ten influencing factors are:
contractors financial difficulty, escalation of material
prices, ineffective project planning and scheduling, delay
in progress payment for completed works, lack of skilled
professional in contractor organization, fluctuating labours
availability, late delivery of materials, low productivity of
labour, unqualified / inadequate experienced labour,
insufficient data collection and survey before design. The
88 factors were categorized into eight major groups and
were ranked accordingly. The result shows that clients,
consultants, and contractors all agreed that the contractor
group of delay factors was the most influential factor.

Material related factors were considered the second most


important factor causing delay in construction projects
followed by Designers related factors and Consultants
/supervisors related factors. The findings of this research
work has been found very similar to the findings of those
researches, which were conducted, in other developing
countries.
The results would be helpful to public construction project
professionals in taking proactive measures for timely
completion of public building projects.
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