Determinants of Delay in Construction Project in Ambo town of Oromia Regional State, Ethiopia

Abstract

Projects especially construction projects have a vital role for the economic development of a nation by transforming the living standard of the community. This study aimed to assess determinants of delay in Construction projects in Ambo town. This study was adopted explanatory research design as well as a quantitative and qualitative research approach. This research was used both the primary and secondary data sources. Primary data was collected from the respondents or population under study which are the stakeholders of construction project. A multi-stage sampling procedure was employed in selection of sample respondents in public project in Ambo town and 180 respondents were used study respondents. Descriptive and inferential statistics were used as the method of data analysis and multiple regression models were employed. The findings of the study revealed that, the top three causes of project delay were related to the category of Contractor (Contractors timely change project specification in work and difficulties in financing project by Contractor to minimize delays, and client related factor (specifically issuing project tender notices in the 2nd and 3rd quarters). Generally based on the top ten causes of project delay, client share 40%, contractors share 20% causes of delay; external factor share 20% of causes of delay, consultant share 10% and labour 10% of project delay. From the six major casus of project delay, the top three causes of delay were contractor, clients, and external factors. The rest causes of project delay are material; labour and consultant were ranked to fourth, fifth and sixth. The study conclude that project delay specifically construction projects delay effects are multidimensional that affects the life of thousands of residents of the Ambo town directly or indirectly economically, politically or socially and, it costs the country a lot. This study recommended that Clients should have guaranteed enough financial resources before the execution of project so that payment to the contractors is not delayed which in turn results with large time over runs. In addition to this, subcontractors must be involved with a proper contractual agreement with a contractor that can transfer risk from contractor to subcontractors.