HIwot Alemayehu (1)
HIwot Alemayehu (1)
HIwot Alemayehu (1)
The Case of Grade One Building and General Contractors in Addis Ababa
By:
Advisor:
Worku M. (Ph.D.)
August, 2018
Addis Ababa, Ethiopia
ADDISABABAUNIVERSITY
SCHOOL OF COMMERCE
SCHOOLOFGRADUATESTUDIES
The Case of Grade One Building and General Contractors in Addis Ababa
By:
Hiwot Alemayehu Abera
B.Sc.(CivilEngineering,AddisAbabaUniversity,2011)
I, the undersigned, certify that this project work titled “Assesment of Construction Project
Managment Control Practice: The case of Grade One Building and General Contractors in
Addis Ababa”is my original work performed under the supervision of my research advisor
Dr.Worku M. and has not been presented else where for assessment and for a degree in any
other university.All sources of materials used for this thesis have also been duly acknowledged.
Signature:_______________
Undertaker’sFullName:Hiwot Alemayehu Abera
PlaceofUndertaking:Addis Ababa,Ethiopia
Date:August 2018
Abstract
Construction industry in developing countries is struggling from different challenges that can
affect the industry from achiving the intended objective which is to complete the construction
works on time,as per the budget and desired quality.From the different process that help the
industry to be sucessful,the construction control practice of contractors contributes a faire share
in the sucess of the projects.As per the reviewed litratures ,there exist a gap in the construction
control practices in Ethiopian construction industry.Bearing this in mind , this research is
conducted to asses the current construction controlling tools and techniques used by grade one
contractors with respect to the tools and techniques described in PMBOK.The research is of
descriptive type and uses questionnaire and interview as an instrument to collect data.The
analysis of the research shows the percentage and frequency of used construction controlling
techniques.Also in order to rank the techniques that the contractors use, RII is used as a method
of analysis.The finding of the research elaborates that mostly used tools and techniques are
project management software to control time and cost of projects and inspection to control the
quality of construction projects.Also, the finding revealed that different types of controlling
techniques are not used by most of the contractors.Furthermore as per the research,even though
there exists a lack of usage of different construction controlling tools and techniques,the
professionals in the construction firm perceive that they have a good construction controlling
system.From the finding of the research the researcher recommends the contractors to practice
different controlling techniques that best fit their construction projects.
KEYWORDS:PROJECT,CONSTRUCTION,CONTRACTORS,MANAGMENT,CONTROL,TIME
,COST,QUALITY,BCI,GCI
i
Acknowledgment
I thank God for letting me complete my studies and these researche.Next to that my
gratitude goes to my Mom whom contribution is priceless on my achievement. Thirdly, I
acknowledge the contractors that are willing to participate in this research work and
agreed to support me to reach towards the aim of the research.Also,I would like to thank
my advisor for his support during the research work.
Lastly, work colleagues, friends, and family members contribution cannot be expressed
easily.I thank you all for your support during my research work.
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Table of Content
ABSTRACT................................................................................................................................................... I
ACKNOWLEDGMENT.............................................................................................................................. II
TABLE OF CONTENT .............................................................................................................................. III
LIST OF FIGURES ................................................................................................................................. VI
LIST OF TABLES ................................................................................................................................. VII
LIST OF ABBREVIATIONS AND ACRONYMS................................................................................. VIII
CHAPTER ONE ........................................................................................................................................... 1
INTRODUCTION .................................................................................................................................... 1
1.1. Background of the Study................................................................................................................ 1
1.2. Statement of the Problem ............................................................................................................... 3
1.3. Research Questions ........................................................................................................................ 4
1.4. Objectives ...................................................................................................................................... 4
1.4.1. General Objectives .................................................................................................................. 4
1.4.2. Specific Objectives ................................................................................................................. 4
1.5. The Scope of the Research ............................................................................................................. 5
1.6. Limitation of the Research ............................................................................................................. 5
1.7. Organization of the Research ......................................................................................................... 6
CHAPTER TWO .......................................................................................................................................... 7
LITERATURE REVIEW.......................................................................................................................... 7
2.1. Introduction .................................................................................................................................... 7
2.2. Project Management ...................................................................................................................... 7
2.3. Major Stakeholders in Construction Industry ................................................................................ 9
2.4. Building Contractors and Construction Management Practices .................................................. 10
2.4.1. Schedule Control Tools and Techniques............................................................................... 10
2.4.1.1. Performance Reviews .................................................................................................... 10
2.4.1.2. Project Management Software ....................................................................................... 11
2.4.1.3. Resource Optimization Techniques ............................................................................... 12
2.4.1.4. Modeling Techniques..................................................................................................... 12
2.4.1.6. Schedule Compression ................................................................................................... 12
2.4.1.7. Scheduling Tool ............................................................................................................. 12
2.4.2. Cost Control Tools and Techniques ...................................................................................... 12
2.4.2.1. Earned Value Management ............................................................................................ 12
2.4.2.2. Forecasting ..................................................................................................................... 13
2.4.2.3. To-complete Performance Index (TCPI) ....................................................................... 13
2.4.2.4. Performance Reviews .................................................................................................... 14
2.4.2.5. Project Management Software ....................................................................................... 14
2.4.2.6. Reserve Analysis ............................................................................................................ 14
2.4.3. Quality Control (QC) Tools and Techniques ........................................................................ 14
2.4.3.1. The Seven Basic Quality Tools ..................................................................................... 14
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2.4.3.2. Statistical Sampling........................................................................................................ 16
2.4.3.3. Inspection ....................................................................................................................... 16
2.4.3.4. Meetings ........................................................................................................................ 16
2.5. Review of Building Contractors and their Construction Management Practices......................... 16
2.6. Research on Major Construction Management Practices of Contractors .................................... 17
2.6.1. Time Management Practice .................................................................................................. 17
2.6.2. Cost Management Practice.................................................................................................... 20
2.6.3. Quality Management Practice ............................................................................................... 21
2.7. Conceptual Frame Work .............................................................................................................. 23
CHAPTER THREE .................................................................................................................................... 24
RESEARCH METHODOLOGY ............................................................................................................ 24
3.1. Introduction .................................................................................................................................. 24
3.2. Research Design........................................................................................................................... 24
3.2.1. Research Design to Study the General and Specific Objectives ........................................... 25
3.3. Research population, Sample and Sampling Techniques ............................................................ 27
3.3.1. Population (Universe) of the Research ................................................................................. 27
3.3.2. Sampling Techniques ............................................................................................................ 30
3.3.3. Sample Size ........................................................................................................................... 32
3.4. Data Collection ............................................................................................................................ 33
3.5 Research Instrument ...................................................................................................................... 33
3.6. Data Analysis ............................................................................................................................... 35
CHAPTER FOUR....................................................................................................................................... 37
RESEARCH ANALYSIS AND FINDINGS .......................................................................................... 37
4.1. Introduction .................................................................................................................................. 37
4.2. Data Analysis and Finding ........................................................................................................... 37
4.2.1. RQ 1-Which type of time, cost and quality controlling tools and techniques do BC1 and
GC1 use the most? .......................................................................................................................... 38
4.2.1.1. Which type of time controlling tools and techniques do BC1 and GC1 use the most? . 38
4.2.1.2. Which type of cost controlling tools and techniques do BC1 and GC1 use the most? .. 40
4.2.1.3. Which type of quality controlling tools and techniques do BC1 and GC1 use the most?
.................................................................................................................................................... 42
4.2.2. RQ-2 -Which type of time, cost and quality controlling tools and techniques do BC1 and
GC1 having time overrun, cost overrun and quality problem use the most? .................................. 44
4.2.2.1. Which type of time controlling tools and techniques do BC1 and GC1 having time
overrun use the most? ................................................................................................................. 44
4.2.2.2. Which type of cost controlling tools and techniques do BC1 and GC1 having cost
overrun use the most? ................................................................................................................. 45
4.2.2.3. Which type of quality controlling tools and techniques do BC1 and GC1 having quality
problem use the most?................................................................................................................. 47
4.2.3. RQ-3- What are the construction control recovery techniques used by GC1 and BC1? ...... 48
4.2.4. RQ-4-Which department is responsible for the construction controlling in the organizational
structure of BCI and GCI experiencing project control problem? .................................................. 51
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4.2.5. RQ-5-What is the perception of the professionals about their company's status in relation to
project management controlling practice? ...................................................................................... 52
CHAPTER FIVE ........................................................................................................................................ 55
SUMMARY OF MAJOR FINDINGS, CONCLUSION, AND RECOMMENDATION ....................... 55
5.1. Summary of Major Findings ........................................................................................................ 55
5.2. Conclusion ................................................................................................................................... 56
5.3. Recommendation ......................................................................................................................... 56
5.3.1. Recommendation for Action ................................................................................................. 56
5.3.2. Recommendation for Further Research ................................................................................ 57
REFERENCES ........................................................................................................................................... 58
APPENDICES ............................................................................................................................................ 60
v
List of Figures
vi
List of Tables
Table 4.1: Time Controlling Tools and Techniques by BCI and GCI ...........................................39
Table 4.2: Cost Controlling Tools and Techniques by BCI and GCI ............................................41
Table 4.3: Quality Controlling Tools and Techniques by BCI and GCI .......................................43
Table 4.7: Recovery Tools and Techniques by BCI and GCI .......................................................49
Table 4.8: Recovery Technique of Cost Time and Quality Problems ...........................................50
Table 4.9: Contractors Ranked Time, Cost and Quality Control Practices ...................................54
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List of Abbreviations and Acronyms
AC Actual Cost
BC Building Contractor
CPM Critical Path Method
CVR Cost Value Reconciliation
EV Earned Value
EVM Earned Value Management
GC General Contractor
GTP Growth and Transformation Plan
MOFED Ministry of Finance and Economic Division
MOUD Ministry of Urban Development
PERT Program Evaluation and Review Technique
PMBOK Project Management Body of Knowledge
PMI Project Management Institute
PV Planned Value
RC Road contractor
RII Relative Importance Index
SC Specialized Contractor
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CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
The construction industry is a sector of the economy that transforms various resources into
constructed physical economic and social infrastructure necessary for socio-economic
development. It embraces the process by which the said physical infrastructure is planned,
designed, procured, constructed or produced, altered, repaired, maintained, and demolished.
Construction industry which is continuously booming in Ethiopia plays a vital role in the socio-
economic development of the country. As per the Growth and Transformation Plans (GTP I and
GTP II) of the nation, major emphasis has been given to this sector, particularly in the
dimensions of physical infrastructure in order to achieve the overall outlined growth target
(Ministry of Finance and Economic Development (MoFED, 2010); and National Planning
Commission, 2015). Construction industry encompasses construction of buildings, roads,
railways, airports, dams and other related infrastructure. However, in many developing countries,
this industry suffers from different problems that range from planning (pre-construction phase)
of projects to completion and handing over. Theoretically, these problems can be rectified by the
various contributions of the stakeholders in the industry.
These stakeholders of the industry comprised of organizations and persons who include
companies, firms, and individuals working as consultants, main contractors, and sub-contractors,
material and component producers, plant and equipment suppliers, builders and merchants and it
has a close relationship with clients and financiers. In addition to this, the government is
involved in the industry as purchaser (client), financier, regulator, and operator.
From the different methods that help manage the problem of the construction industry, the proper
management system can be considered as one of the key methods for successful completion of
construction projects. During the life of construction projects, different stakeholders play a vital
role in the success. It is about controlling key aspects of construction that makes it successful.
However, the document itself cannot manage deliverables, relationships, finances and benefit
realization, managing interactions between parties/people, adapting to changing conditions,
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aiming far through continuous systematic planning, efficient contract formulation, maximizing
operational and financial performance. Successful construction management is most effective if
upstream or pre-award activities are properly carried out. But at the same time, the importance of
post-award construction management should not be underestimated and shall be resourced
appropriately (Construction Management Association of America, 2014).
Building construction work is developing in Ethiopia but a continuous improvement on the work
process, rules and stakeholder relationship are needed to uplift the standard of management.
Stakeholders, particularly contractors, give due attention to managing contracts at the pre-award
stage. However equal emphasis has to be given to contracts after award, i.e. during the
construction stage up until completion. The issues of managing contracts and construction work
after contract signing has not received sufficient attention. Some of those issues include:
controlling the construction work based on the planned schedule and budget; interacting and
building a relationship with other stakeholders; managing variations and risks; forecasting
demand and continuous improvement of the works.
The aim of project control is to ensure projects completion on time, within budget, to the desired
quality and to achieve other project objectives. It is a complex task undertaken by project
managers in practice, which involves constantly measuring progress; evaluating plans; and
taking corrective actions when required (Harold, 2009). During the last few decades, numerous
project control methods, such as Gantt Bar Chart, Program Evaluation and Review Technique
(PERT) and Critical Path Method (CPM), have been developed .A variety of software packages
have become available to support the application .Despite the wide range of these methods and
software packages in practice, many construction projects in Ethiopia still suffer from time
overruns, cost overruns and quality problem .As per the previous studies conducted in the
construction industry ,much attention is not given to the assessment of construction control
techniques applied by the stakeholders. Therefore, it is necessary to do detail study and research
on this issue for the betterment of the management system of the construction sector.
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1.2. Statement of the Problem
Managing building construction works has its own set of processes that, if not properly handled,
could cause problems in the aspects of schedule, budget, quality and possibly lead to delay,
unnecessary dispute and variation works that adversely affect the smooth progress of projects.
Previous, research works by Adams (1997), Long et al.(2004) and others have indicated the poor
managerial capability of contractors to be one of the critical problems of the construction
industry in developing countries. Also the study conducted by Abioudn (2017), which
concentrates on the factors that affect the performance of contractors in Nigeria stated that the
improvement of control and administrative system of contractors contributes to the improvement
of contractor’s performance.
The study which is conducted by Belay, Tekeste and Ambo (2017) on the top factors that affect
the success of construction work in Ethiopia shows that the construction controlling and
monitoring is ranked third from the list of factors that affect the construction work. Contractors
which carry out the actual construction activity in such projects ought to conduct their
construction works according to the prescribed schedule, budget and specification to achieve an
elevated level of contract management. Their contract management practice contributes a fair
share to their own success as well as to the betterment of the construction industry.
Building construction in Ethiopia is suffering from different problems that affect the construction
process and stakeholders’ relationship. The finding of the study of Ayalew, Dakhli, and Lafhaj
(2016) indicate that the level of application of general project management functions, tools &
techniques and that of adapting construction project management procedures are unsatisfactory.
However, many contractors’ do not give due emphasis to construction control system in
Ethiopian building construction works.
With this in mind, this research asses the construction control practices of Building contractors
(BCI) and General contractors (GCI) in Addis Ababa which participate in a major building
construction works in order to investigate their practices and problems in their construction
system in relation to delay, budget overrun and substandard quality. This research also tries to
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investigate if there exists responsible entity for the controlling tools and techniques used by this
contractors, the perception of professionals about their company construction controlling status
and their recovery techniques of cost, time and quality problems.
Which type of time, cost and quality controlling tools and techniques do BCI and
GCI use the most?
Which set of time, cost and quality control practices do BCI and GCI having time
overrun, cost overrun and quality problem use the most?
What are the construction control recovery techniques used by GCI and BCI?
Which department is responsible for the construction controlling in the
organizational structure of BCI and GCI experiencing project control problem?
What is the perception of the professionals about their company in relation to
project management control?
1.4. Objectives
To assess the construction control practices of BCI and GCI contractors in Addis
Ababa.
To examine the time,cost and quality management control practices of BCI and
GCI in Addis Ababa.
To inspect the time cost and quality management control practices of BCI and GCI
in Addis Ababa that experience delay, cost overrun and quality problem in the
completion of their construction projects.
To investigate the construction control recovery techniques used by BCI and GCI.
To examine the responsible entity of construction controlling.
To explore the perception of the professionals about their company's construction
management control system.
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1.5. The Scope of the Research
The scope of the study is limited to assessing and analyzing the construction management
practices of grade I General (GCI) and Building Contractors (BCI) located in the city of Addis
Ababa. The study focuses on the construction controlling practices of these contractors mainly in
their building construction works after award of projects (in execution phase).It is mainly
concerned with the time, cost and quality management control practices.
Major emphasis is given on the time, cost and quality control techniques used by the contractors
and their effects are studied. The research concentrates on construction control practice of the
three-time, cost and quality management practices because they are the key parameters that
contribute to the success of the construction project. Controlling techniques discussed in a guide
to project management body of knowledge (PMBOK) is used as a reference to map the current
state of BCI and GCI contractors in Addis Ababa.
The aforementioned objectives of the research shall be achieved by analyzing primary data
which will be gathered through questionnaires and interview responded by BCI and GCI.
According to the Ministry of Construction, there are 72 BCI and GCI that participate in the
major building construction works as of 2010 E.C.
While assessing the construction management practice of the sampled contractors, the following
limitations shall be kept in mind:
The research is bound by the construction control practices of BCI and GCI that
are located in Addis Ababa and work on Building construction. This has been
done intentionally as these contractors are the major contributors to most of the
building construction works taking place both in terms of a number of projects
and value of projects.
The research concentrates on the control of construction after award of contract
(during construction stage).
Other parameters are not studied in this research such as scope, risk,
communication, procurement, human resource etc.
5
1.7. Organization of the Research
This research is divided into five major chapters.The first chapter depicts the importance of the
project, project management, and construction management in an elaborated manner. A short
background of construction management problems of Ethiopian construction industry is
presented here followed by problem statement, research questions, and objectives. In addition to
this, the scope and limitations of the research are clearly stated. The second chapter will cover an
in-depth and elaborative look at relevant previous studies which relate to construction controlling
practices.The nature of the required data will be elaborated along with the methods
(questionnaire, interview and desk study) of collecting them in the third chapter. This chapter
will also outline strategies for achieving the planned objectives and answering the research
questions. The methods that will be specified in chapter three will be further discussed and
implemented on the set of data gathered and presented in chapter four of this research.In the
concluding section of the paper, the main findings from chapter four shall be presented.
Remedies and proposals shall also be presented in this chapter. Lastly, the researcher will briefly
point out areas of concern for future study as observed from the viewpoint of this research’s
findings.
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CHAPTER TWO
LITERATURE REVIEW
2.1. Introduction
As discussed in the introductory chapter, this study aims to assess the construction control
system of contractors in Addis Ababa. The first step of the study is to review previous researches
that relate to the objectives and this will be discussed in the upcoming sections of this chapter. In
this chapter project management and controlling tools and techniques are discussed. In addition
to this, researches that are conducted to assess the construction control system, specifically time,
cost and quality control are reviewed and the findings of this research are taken as the input for
the study.
Purpose: a project is usually a one-time activity with a well-defined set of desired end
results;
Life Cycle: different projects have different life cycles from start to completion stages.
Interdependencies: projects often interact with other projects being carried out
simultaneously by their parent organizations.
Uniqueness: every project is very likely to have some elements that are unique to it.
7
Conflict: The members of a project team are in almost constant conflict for the project's
resources and for leadership roles in solving project problems (Meredith & Mantel,
2003).
Project management is generally perceived as a method and a set of technique based on the
accepted principles of management used for planning, estimating, and controlling work activities
to reach the desired end result on time, within budget, and according to specification (Weiss &
Wysocki, 1992). Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet the project requirements.
Ten core knowledge areas of project management are identified in the Project Management Body
of Knowledge (PMBOK). These are scope, time, cost, risk, quality, human resources,
communications, stakeholder, procurement and integration management. Each knowledge area in
the PMBOK is composed of processes that are expected to be addressed to attain the objective of
the knowledge areas. The knowledge areas provide detailed descriptions of the process inputs
and outputs along with a descriptive explanation of tools and technique most frequently used
within the project management processes to produce each outcome.
Monitoring
Initiating planning Executing and Closing
Controlling
8
For instance, construction project management involves the planning, execution, and control of
constructionn operations for any type of physical construction to optimize the interrelated primary
objectives: cost, quality and time/schedule within a reasonable framework of the client’s
requirement. Construction management or construction project management is the overall
planning, coordination, and control of a construction process from beginning to completion.
Construction project management is aimed at meeting a client's requirement in order to produce
a functionally and financially viable project.
Construction is the recruitment and utilization of capital, specialized personnel, materials, and
equipment on a specific site in accordance with drawings, specifications, and contract documents
prepared to serve the purposes
rposes of a client. In order to achieve this goal, different stakeholders
contribute to the success of construction projects these stakeholders are shown in Figure 2.2
below. Other literature may be referred with regards to the responsibilities of these stakeholders.
st
9
2.4. Building Contractors and Construction Management Practices
Performance reviews compare the baseline with the actual results. This comparison can be done
by using the following:
Trend analysis: trend analysis examines project performance over time to determine
whether performance is improving or deteriorating. Graphical analysis is a common
method of trend analysis technique. Trend analysis provides an early warning system and
allows managers to take corrective action. Unfortunately, its use may be restricted to long
term projects because of the time needed to correct the situation (Harold, 2009).
10
Critical Path Method (CPM): This method calculates the minimum project completion
time and the start and end dates for all project tasks. It identifies the critical tasks that, if
delayed, will delay your entire project (Benett, 1978).
The critical path method helps you reduce timelines, manage resources, and compare
planned with actual. Comparing the progress along the critical path can help determine
schedule status and the variance on the critical path will have a direct impact on the
project end date
Critical Chain Method: is a schedule network analysis technique that will modify the
project schedule by accounting for limited or restricted resources (Heldman, 2009).
Comparing the amount of buffer remaining to the amount of buffer needed to protect the
delivery date can help determine schedule status. The difference between the buffer
needed and the buffer remaining can determine whether corrective action is appropriate.
Earned Value Management (EVM): is a systematic process that uses earned value as
the primary tool for integrating cost, schedule, technical performance management, and
risk management. It can be used to assess the present and future risk of projects (kerzner,
2009).The schedule performance measurements such as schedule variance (SV) and
schedule performance index (SPI) which are used to assess the magnitude of variation in
light of the original schedule baseline. The total float and early finish variances are also
essential planning components to evaluate project time performance (PMI, 2013).
Project management software for scheduling provides the ability to track planned dates versus
actual dates, to report variances and progress made against the schedule baseline, and to forecast
the effects of scope changes and variation orders on the project schedule model (PMI, 2013).
This software contains a robust set of features and reporting tools that will serve most projects
well. It comes in different types such as Microsoft Project (MS-project), Primavera and the like.
11
2.4.1.3. Resource Optimization Techniques
Modeling techniques are used to review various scenarios guided by risk monitoring to bring the
schedule model into alignment with the project management plan and approved baseline (PMI,
2013).
2.4.1.5. Leads and Lags
Adjusting leads and lags is applied during network analysis to find ways to bring project
activities that are behind into alignment with the plan.
Schedule compression techniques are used to find ways to bring project activities that are behind
into alignment with the plan by fast-tracking or crashing schedules for the remaining work items.
It is a form of mathematical analysis that is used to shorten the project schedule without
changing the project scope.
Schedule data is updated and compiled into the schedule model to reflect the actual progress of
the project and remaining work to be completed. It can be done manually or by using scheduling
software.
EVM is a methodology that combines scope, schedule and resource measurements to assess
project performance and progress. It is a commonly used method of performance measurement
for projects. It integrates the scope baseline with the cost and schedule baselines to form the
12
performance baseline and that helps the project management team in assessing and measuring
project
roject performance and progress (PMI, 2013).
2.4.2.2. Forecasting
2.4.2.3. To-complete
complete Performance Index (TCPI)
The to-complete
complete performance index (TCPI) is a measure of the cost performance that is required
to be achieved with the remaining resources in order to meet a specified management goal,
expressed as the ratio of the cost to finish the outstanding work to the remaining budget.
Figure2.3:To
:To complete performance index(TCPI) (Source: PMI, 2013)
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2.4.2.4. Performance Reviews
Performance reviews compare cost performance over time, schedule activities or work packages
overrunning and under running the budget as well as estimated funds needed to complete the
work at hand.
Project management software is often used to monitor the three Earned value management EVM
dimensions Planned value (PV), Earned value (EV), and actual cost (AC) to display graphical
trends and to forecast a range of possible final project results.
During cost control, reserve analysis is used to monitor the status of contingency and
management reserves for the project to determine if these reserves are still needed or if
additional reserves need to be requested. As work on the project progresses, these reserves may
be used as planned to cover the cost of risk mitigation events or other contingencies. Or if the
probable risk events do not occur, the unused contingency reserves may be removed from the
project budget to free up resources for other projects or operations (PMI, 2013).
These are also known in as 7QC Tools in the industry and are used to solve quality-related
problems.
Cause-and-effect diagrams: show the relationship between the effects of problems and their
causes. This diagram depicts every potential cause and sub cause of a problem and the effect that
each proposed solution will have on the problem.
Flowcharts: graphically depicts the relationships between and among steps. They typically show
activities, decision points, and the flow or order of steps in a process.
14
Checksheets:: checklists provide a means to determine whether the required steps in a process
have been followed. As each step is complete
completed,
d, it is checked off the list. Checklists can be
activity specific or industry specific and might be very complex or easy to follow. They provide
a mechanism to capture the lessons learned from past projects, They provide a mechanism to
document the verification
cation performed on the work package.
Histograms:: histograms are typically barred charts that depict the distribution of variables over
time. To perform quality control, the histogram usually depicts the attributes of the problem or
situation.
Control charts:: measure the results of processes over time and display the results in graph form.
Control
ntrol charts are a way to measure variances to determine whether process variances are in
control or out of control.
Scatter diagrams: scatter diagrams use two variables, one called an independent variable, which
is an input, and another called a dependent variable, which is an output. Scatter diagrams display
the relationship between these two elements as points on a graph. This relationship is typically
analyzed to prove or disprove cause
cause-and-effect
effect relationships. Scatter diagrams can also help you
look for
or and analyze root causes of problems (PMI, 2013).
15
2.4.3.2. Statistical Sampling
Statistical sampling involves taking a sample of parts from the whole population and inspecting
them to determine whether they fall within acceptable variances (Heldman, 2009).
2.4.3.3. Inspection
2.4.3.4. Meetings
Project teams may hold planning meetings to develop the quality management plan. Attendees at
these meetings may include: the project manager; the project sponsor; selected project team
members; selected stakeholders; and anyone with responsibility for Project Quality Management
(PMI, 2013).
The construction industry in Ethiopia exhibits numerous problems. Generally, the current state of
the industry is characterized by different challenges that arise from different stakeholders. As the
contractors are the main entity that directly contributes to the physical execution of works, they
are facing different problems that need to be solved. Some of these problems can be highlighted
below:
Low capacity and capability of contractors and consultants due to weak resource base and
inadequate experience andlack of experience in construction management.
Inadequate and erratic work opportunities, inappropriate contract packaging of works
which favor foreign firms in donor-funded projects, low public investment in infrastructure
projects and over-dependence on donor funding.
Inefficient and non - transparent procurement Systems Corruption and financial
mismanagement in public/private sectors.
16
Lack of supportive institutional mechanisms in terms of financial credit facilities,
equipment for hire and professional development.
Unfavorable donor conditionality which tends to marginalize local construction
enterprises.
Poor working environment, including low standards of safety and occupational hazards
on construction sites.
Weak and non-facilitative policies and regulatory framework.
Low productivity, quality and low technological base.
Substandard level of management, especially contract and project management
knowledge and practice (low level of contract administration, project planning and project
monitoring capabilities).
Inadequate and inappropriate project organizational structures, which lead to problems in
the areas of authority, responsibility handling, communication and coordination; Corruption;
and
Poor working environment, including low standards of safety and occupational hazards
on construction sites etc. (MOUD, 2012).
Time management is a vital technique in ensuring the completion of projects within the
stipulated timeframe. Without proper time management, inevitable time extension requests
which in turn are likely to result in a cost overrun will arise.
17
Memon, Rahman, Ismail and Zainun (2014) identified commonly used techniques and software
packages of time management along with their respective effectiveness level in large
construction projects in Malaysia. This research uses data gathered from questionnaires that are
distributed amongst practitioners (consultants, contractors, and clients) that are involved in large
construction projects of Malaysian construction work. By using the collected data Relative
Importance Index (RII) calculation was employed to assess the level of effectiveness for time
management techniques and software packages adopted in the construction project. The results
that are found from this research indicated that the most common and effective time management
technique and software Package in Malaysia is CPM and Microsoft Project respectively. As per
the finding of this research, the time controlling technique and software packages that are
theoretically implemented by practitioners in most projects have barely shown any improvement
in time management. In addition to mostly used techniques, this research showed that program
evaluation and review technique (PERT) and simulation techniques are the least used techniques
of time control.
Baskar and N (2016) also investigated the time management technique used in India. Data for
this research were collected through questionnaire surveys from engineers, contractors, and
clients involved in the construction industry of India. The collected data were analyzed using RII
and it was determined by this research that CPM, PERT and Gantt chart respectively are the
most effective time management technique in the construction industry of India. In addition to
this, Primavera, Microsoft Project and Microsoft Excel were the most commonly used software
packages used in the construction industry of India as discovered by this research.
Sawalha and Enshassi (n.d) conducted a research to investigate how widely project time
management tools and technique were applied by public owners and construction contractors in
the Gaza Strip. They also used questionnaire distributed to contractors and owners as a means for
collecting data. The survey results of this research indicated that updating the time schedule and
Linked bar chart are mostly used techniques for controlling time of construction projects.Also,
the study recommended the establishment of a professional industry body such as an Institute of
building to review and evaluate existing local project management control practices in the Gaza
strip.
18
In addition to the studies conducted in different countries across the globe, a study conducted in
Ethiopia by Zewdu (2016) adopts quantitative and qualitative methods with the help of primary
and secondary data to investigate the techniques used to control the time of projects in the
construction industry of Ethiopia. Primary data was collected using self-administered
questionnaires on 140 respondents (contractors, consultants, and clients) and secondary data was
collected through reviewing of related materials.Analysis of the quantitative data was made
using SPSS. The study revealed low-level application of techniques and software packages for
project planning and time control. As per the contractors’ response, mismanagement by
contractors is among the top five factors that ultimately result in a delay of construction projects.
The study also implied that the contractors’ level of applying different techniques and software
packages for planning and time control is minimal.
Furthermore, Tefera (2013), who studies the management control of projects in construction
industry, concluded that, time mismanagement is one of the basic contemporary problems of the
industry that must be improved. Data for this project is collected from the responses of
contractors, consultants, and clients.According to the findings of this research which carried out
a survey on a sample, 51% of the respondents used a bar chart, 26.7% used CPM, 8.9% used
modified network PERT, 26.7% used graphical techniques and 6.7% used mathematical model.
Furthermore, the researcher reaches into a conclusion that in consistent application of the control
system is caused by lack of professionals within the industry and skill gaps on existing one.
Based on the study of Yimam (2011) which concentrates on project management maturity in
developing countries, one third (1/3) of the GC1, BC1, RC1 contractors in Ethiopia do not
perform all the practices that are required to attain the time management knowledge area goals.
The result showed that on average one third (1/3) of the contractors performed only three out of
four PMBOK time management processes that are necessary to achieve the project time
management goal. The findings shows, 29% of the contractors performed time management
informally, whereas about 40% of the contractors performed time management formally or at a
higher level.
19
2.6.2. Cost Management Practice
Cost management is among the most important components that determine the success of
projects and is obviously the most important tool in terms of cost performance of construction
projects. As per the research conducted in India, the overall ranking of cost management
techniques in India is Cash Flow Forecasting (RII =0.817), Cost Planning and Control
(RII=0.808) and Estimate (RII=0.802) respectively (N & Baskar, 2016).
Otim, Nakacwa & Kyakula (n.d), used a total of 130 questionnaires sent to contractors that are
found in Uganda, 98 responses were found adequately filled for the study of cost management
technique in the country, representing a response of 75 percent and the findings were schedules
(16.3%), site inspection (14.1%), the project budget(12.4%), meetings (11.1%), cost and work
progress records (13.6%) , reports (10%), monitoring work and cost performance and evaluation
using bills of quantities(14.4%) and others (8.1%) .In addition to this, the research identified that
the problem of cost management was actually not the techniques used but rather lack of
knowledge on implementing the techniques and poor management of the cost control
methodology.
A study made on project management maturity in the Ethiopian construction industry by Yimam,
(2011) indicated that only 1/3 of grade one contractors (GC1, BC1, RC1) use computer tools for
cost estimate preparation and about 2/3 update their budget regularly at least once a month. The
result showed that approximately 30% of the contractors’ cost management process was
incomplete where an average of 2 out of 3 processes required to achieve the goal of project cost
20
management was performed. About 60% of the contractors are at incomplete practice maturity
level, performing on average 3 out of 4 practices expected to be carried out in cost management.
Quality management process is a method by which the quality of the project deliverables is
assured. The process involves undertaking a variety of reviews to assess and improve the level of
quality of project deliverables and processes.
As per the study of Yimam (2011), finding showed that about 43% of the sampled contractors
performed little or no quality management whereas 24% performed only 2 out of 3 quality
management processes that are expected to be carried out to achieve the goal of project quality
management. The remaining 33% of the contractors performed quality management formally or
at a higher process maturity level.
Based on the literature reviewed, burning issues related with cost, time and quality management
practices of BCI and GC1 in Addis Ababa apparently have not been investigated to any
significant level, particularly in the framework of PMBOK control tools and techniques.
Additionally, the management control system and the success of contractors in relation to the
completion of the project as per the schedule, budget and needed quality have not been assessed
in relation to construction management techniques. Having noted the aforementioned gap, this
project is dedicated to identifying the most and least frequently used time, cost and quality
21
control processes by grade one general and building contractors that are based in Addis Ababa.
Furthermore, the controlling tools and techniques that are used by contractors who face delay
cost overrun and quality problem and recovery practices of time cost and quality of projects by
the contractors are also studied.
22
2.7. Conceptual Frame Work
23
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Introduction
As discussed in the previous chapters, the objective of this research is to assess the contract
management practice specifically the construction control tools and techniques used by BCI and
GCI in Addis Ababa. The research methods, design, the procedure for data collection and
analysis are discussed in the later sections.
A research design is a plan, structure, and strategy of the investigation so conceived as to obtain
answers to research questions or problems. The plan is the complete scheme of the research. It
includes an outline of what the investigator will do from writing the hypotheses and their
operational implications to the final analysis of data (Kumar, 2011).
Many reference books of research methodology classify research types in different categories.
However this research is categorized as descriptive that deploy both qualitative and quantitative
data. It is descriptive because:
24
The data are collected using the questionnaire and interview as an instrument.
The collected data was analyzed and findings were generated.
Qualitative information where gathered from secondary data collected by reviewing the
studies (literature) related to the main objective of the research.
In-depth interview was also conducted with selected experienced BCI and GCI
respondents to further triangulate data obtained from a questionnaire survey and to
further explore the experience of respondents.
Aiming to assess the current management practice of BCI and GCI in Addis Ababa and project
accomplishment in relation to time, cost,and quality of projects, this research is designed to
investigate their current construction control tools and techniques used for the successful
completion of the construction projects. In order to do so the chosen research design, the
procedure to assess the construction management practices and examine the time, cost and
quality management practices of BCI and GCI in Addis Ababa are discussed in the following
sections.
Highlighted in previous chapters, the general objective of this research is to assess the
construction control practice used by BCI and GCI in Addis Ababa. Mainly the study
concentrates on the project control tools and techniques as described by PMBOK. Because of the
limitation of the researchers conducting time, the research focused on the three parameters of
project management;time, cost and quality. These parameters can be defined as follows:
Cost control: managing the construction processes to achieve the best value for money
and ensuring that the final cost does not exceed the budget.
Time control: managing the construction processes so that the project is completed on or
before the agreed completion date.
Quality control: ensuring that the quality and performance of the completed project
meets the project original objectives.
25
These parameters are the essential elements of good project management. Their successful
management and control are the source of many construction project successes. Considering
these, the research examined the methods used to control the project schedule, budget, and
quality (stated in article 2.4 of this paper) and also looked at the history of the construction
project completed by the contractors to examine the overall construction controlling system and
success of the companies under research.
From the different types of research that are used to study the needed subject and classified in
Figure 3.1, it can be stated that this research is categorizedas a descriptive type of research in
which the method of construction management practice of BCI and GCI in Addis Ababa is
studied. Descriptive type of research is defined by Kumar (2011) as attempts to describe
systematically a situation, problem, phenomenon, service or program. It is aimed to provide an
accurate and valid representation of the overall condition of the point under study. When this
particular definition is linked to the research objective, it examined the construction management
practice of BCI and GCI that reside in Addis Ababa with respect to the project management
controlling tools and techniques described in PMBOK concentrating on the three management
functions; cost quality and time.
From the above classification, the state of this research is quantitative - cross-sectional. It is a
cross-sectional study that it investigated the project controlling practice of BCI and GCI in Addis
Ababa at a specified time that is as per the questionnaire was given to the selected contractors,
the practice of the company was based on the current management and project controlling
experience. Project management data were collected regarding the project record. Therefore, it is
categorized as cross-sectional research.
26
3.3. Research population, Sample and Sampling Techniques
From the different stakeholders that contribute to the success of the construction industry,
contractors play a significant role as they are directly related to the works. Having this as a key
milestone, this research is done by making its population the group of contractors that are
situated in Addis Ababa.
All contractors in Ethiopia need to be registered before undertaking any construction work in the
country. According to the law: the requirements for licensing and registration of contractors in
Ethiopia have the option of registering as a contractor in any one of the following categories:
General Contractors (GC): These are contractors who are qualified to undertake a variety
of construction works such as buildings, roads, railways, bridges, etc.
Building Contractors (BC): These are contractors who are qualified to undertake building
construction and related works.
Road Contractors (RC): These are contractors who are qualified to undertake
construction of roads and other related civil engineering works.
Specialized Contractors (SC): These are contractors who are qualified to undertake
construction activities in specialized trades such as electro-mechanical installation works,
painting and decorations, sanitary installation works, wood and metal works and
landscaping and other related activities.
As per MOUD (2005), classification there are 10 grades which are categorized accordingly based
on the construction cost of the project that the contractor is seeking to undertake. General
Contractors, Building Contractors, and Road Contractors can be categorized in the ten grades
based on the criteria listed in the below table.
27
Table 3.1: Contractors Grade Categorization in Ethiopia
The target population of this research is chosen from the list of contractors classified in the above
classification of MOUD. The decision to limit the scope of the study only to Grade-1 building
and general contractors is made for six main reasons.
28
Because of the time limitation of the study, only one type of contractor can be assessed.
Considering this building contractor and general contractors were chosen as they
participate in major building construction works in Addis Ababa that have a major
contribution to the development of the country.
From these contractors Grade-1contractors (the highest-level contractors in Ethiopia)
usually undertake most of the large projects given to local contractors; therefore, by
studying the project control system of this contractors impact of any improvement
achieved will significantly contribute to the overall improvement of the construction
industry performance.
Grade-1 contractors have better organizational, human and financial capability than
contractors at a lower level; hence they are better suited for starting efforts of project
management development and improvement in the industry.
Contractors at lower grade were excluded from the study mainly because of the time
limitation and considering the gap between those contractors of grade I and the lower
grade contractors in terms of capacity and project management capability. Thus, it was
thought that this will create difficulty in generalizing the research result.
It is assumed that the result found in grade one contractors can be the benchmark for
further study of the lower grades.
Sampling is restricted to contractors that reside in Addis Ababa, that are registered on the
list of the ministry of construction by considering the fact that almost all Grade -1
contractors are registered in the capital city.
Considering the above classification, contractors that took part in the research were selected
based on the basis of registration confirmation on the year 2010 E.C of Ministry of Construction
professionals’ company and construction machinery industry development and regulatory
bureau. From this list, it is found that the number of BCI and GCI that registered, renewed and
upgrade to BCI and GCI in 2010 E.C budget year in Addis Ababa are 72 construction firms of
which 53 are BCI and 19 are GCI. These firms are taken as the target population of this research.
29
3.3.2. Sampling Techniques
Sampling can be defined in several terms it may be defined as the selection of some part of an
aggregate or totality on the basis of which a judgment or inference about the aggregate or totality
is made. As per Kumar (2011) sampling is the process of selecting a few from a big group to
become the basis for estimating or predicting the prevalence of an unknown piece of
information, situation or outcome regarding the bigger group. Therefore, as per the definitions
are given sampling techniques that are suitable for assessing the current construction controlling
system of contractors are selected.
Probability sampling
Non-probability sampling
Random sampling from a finite population refers to that method of sample selection which gives
each possible sample combination an equal probability of being picked up and each item in the
entire population to have an equal chance of being included in the sample (Kothari, 2004).
For this specific research simple random sampling is selected for selecting contractors to do the
quantitative part of the research as the population size is known choosing probability sampling is
30
suitable. The questionnaire was distributed to contractors that are selected by simple random
sampling because:
It ensures the law of statistical regularity which states that if on an average the sample
chosen is a random one, the sample will have the same composition and characteristics as
the universe. In probability sampling, the elements in the population have some known
chance or probability of being selected as sample subjects.
A simple random sample is the simplest way to select participants from a population. In
this specific case from the 72 list of contractors, the listis chosen by using Microsoft
Excel.
Using these methods means that each individual contractor in this research have the same
chance of being selected for the sample.
Simple random sampling was done using Microsoft Excel as a tool to select the sample.The first
step was listing all GCI and BCI exhaustively. The list was found from the construction minister
registry of 2010 EC. The list was encoded to Microsoft excel and list were generated to get the
sample of the contractors.
Also,non probability purposive sampling was made to select contractors to do the qualitative part
of the research (in-depth interview). Purposive sampling (deliberate) was used to select
contractors to cross-check the respondent's response with respect to the filled questionnaires and
to further investigate the construction control mechanism used by the contractors. While doing
this sampling technique, 10 workers of BCI and GCI (5 from each) were chosen to further
investigate the data collected from the questionnaires. These contractors were chosen
purposively considering the below points:
31
3.3.3. Sample Size
Calculating the most appropriate sample size is an important step in the research process. For this
research sample size is calculated by using a formula used by different statisticians in different
reference books as indicated further in the below formula.
According to the formula used to determine the sample size by Yamane (1967), a simplified
formula to calculate sample sizes is provided. This formula was used to calculate the sample
sizes with a 95% confidence level and precision P =0.5 are assumed for this equation.
𝑁
𝑛=
1 + 𝑁𝑒
Where:
n = sample size
N = population size
e = Error of 10 %
72
=
1 + (72 ∗ (0. 1 ))
= 41
By using the above sample size determination formula, a sample size of 41 is found. Forty-one
questionnaires were distributed to randomly chosen contractors from the list of GCI and BCI
construction companies.
32
3.4. Data Collection
Primary data - from questionnaires distributed to chosen contractors and interview held
with contractors that are purposively selected to triangulate the facts found in the
questionnaire with the interview results.
Secondary data - this data was found in reference books, journals and related articles that
concentrate on the construction control mechanism of contractors in different countries
and in Ethiopia.
For the purpose of collecting the needed data, both questionnaire and interview are used as a
research instrument. In the first part of the research data collection process, secondary data were
collected from the secondary sources after getting information from secondary data to further
correlate the information and find first-hand information in relation to the project control
mechanism of contractors. The next step was the data collection process by using questionnaires.
However, before distributing the questionnaires to all contractors that are chosen by random
sampling technique, the pilot survey was conducted with chosen five contractors having a good
project controlling experience in order to revise the questionnaires content, clarity and
information expression. Questionnaires were chosen as a means of data collection because:
The research has a time limitation and distributing questionnaires for 41 contractors
through email and personally was found to be less time-consuming.
The respondents will not be biased when responding to questions that are related to
company project performance.
The results can be easily coded to be used for analysis.
The questionnaire has two parts. part one is open-ended questions of the general type in which
project management experience of the company regarding the project schedule completion time,
project execution cost and project quality management, organizational construction management
responsible entity and the overall company construction management status related questions
33
were included. In the second section of the questionnaire, questions related to time cost and
quality control tools and techniques that are briefed in PMBOK were listed and the contractors
were asked to rate the tools and techniques that they use. The questionnaire uses a Likert scale:
Likert scale also known as the summated scale is one of the attitudinal scales designed to
measure the attitude (Kumar, 2011). Respondent rate the techniques listed in the questioner
based on their frequency of use of tools and techniques of cost, quality and time of a construction
project.
when using a Likert scale, there is no specific rule on whether to use a two-point scale, three-
points scale or scale with still more points. In practice, three to seven points scales are generally
used for the simple reason that more points on a scale provide an opportunity for greater
sensitivity of measurement (Kothari, 2004).For this research, a five-point Likert scale is used and
the respondents rate the techniques that they use as never, rarely, sometimes, very often and
always. Using this type of scaling techniques helps the respondents to choose the tools and
techniques that they use rather than listing it in their own words. In addition to that, it is easy to
administer and do analysis work of such type of responses.
As defined in Kumar (2011), Concurrent validity is comparing the findings of your instrument
with those found by another which is a well-accepted instrument. In order to do so (check the
validity of the questionnaires), the interview was conducted with 10 contractors. The main
purpose was to ensure validity, and the same questionnaire was administered by the researcher
through the scheduled interview. In the interview, the respondents were required to verify their
response with an explanation of supporting practices, construction completion
certificate,payment, contract agreements, and documentation. Analysis of the data showed 90%
of agreement of the responses obtained by survey and interview. The 10% difference could be
explained as a difference due to a misunderstanding of the question and self-favoring tendency of
the respondent during the questioner filling process.
Further, to control the impact of respondent bias, the researcher has delivered most of the survey
in person and contacted the rest respondent’s through phone call and explained the importance of
accurate information given by the respondents for the successful finding of the research.
34
3.6. Data Analysis
In this research, the collected data from the Likert scaled questionnaire filled by the 41 selected
contractors are entered in Microsoft Excel because as it is smaller data sets and the frequency of
usage of the construction project controlling techniques is generated by using frequency
distribution analysis which is univariate analysis technique. Also using MS-Excel helps to
develop charts and diagrams easily from the data collected to show the results in a simplified
manner.
According to the reviewed literature which is discussed in chapter two of this research
descriptive analysis is one of the most common methods for analyzing raw data, which are
collected through questionnaire. Also, for answering this research questions, using the data
collected, using descriptive analysis and Relative Importance Index (RII) was very important.
According to Yamane (1967), RII value was calculated with the following formula:
∑ 𝑤𝑥
𝑅𝐼𝐼 =
𝐴𝑥𝑁
where: W= weighting given to each factor by respondents and it ranges from 1 to 5 as per the
Likert scale
N = total number of participants (41 in this research as the sample size or respondents are 41
chosen contractors)
The steps taken to do the analysis of this research can be summarized as follows:
35
Relative importance index is calculated for each project control technique.
The ranking is done for each of the project controlling technique by using the RII in
descending order.
The data were summarized based on the ranks of the techniques used.
36
CHAPTER FOUR
RESEARCH ANALYSIS AND FINDINGS
4.1. Introduction
As discussed in chapter one , the analysis of this research is mainly done to find an answerto the
research question raised and to discuss the objective stated in previous sections. For this
research, the analysis type which is used is chosen to be descriptive analysis. By using
descriptive analysis, the needed objectives are clearly elaborated and this will be covered in the
upcoming sections.
The collected questionnaires from the 41 contractors were coded in MS-Excel, by using this, the
percentage of each technique was found. In order to rank the construction project control system
practiced by the contractors RII method was used. Using this method helps to assess the practice
used to control time, cost and quality management methods and order the methods as per the use
by the contractors. The same approach has been used by various researchers to analyze the data
collected from the questionnaire survey as indicated in the literature review of this research.
The following major findings are the outputs found from the data gathered from the
questionnaires, interviews and the conducted analysis:
The time,cost and quality management control practices of BCI and GCI in Addis Ababa.
The time cost and quality management control practices of BCI and GCI in Addis Ababa
that experience delay, cost overrun and quality problem in the completion of their
construction projects.
The construction control recovery techniques used by BCI and GCI.
The responsible entity of construction controlling in BC1 and GCI firms.
The perception of the professionals in BC1 and GCI about their company's construction
management control system.
37
As described in chapter one of this research, finding the response of the research questions were
the major target of the researcher and the above results as described in the below sections clarify
the findings.
4.2.1. RQ 1-Which type of time, cost and quality controlling tools and techniques do BC1
and GC1 use the most?
4.2.1.1. Which type of time controlling tools and techniques do BC1 and GC1 use the most?
Construction time controlling methods stated in the PMBOK are practiced in different
contractors in Addis Ababa based on their knowledge of the tools and techniques, organizational
structure and availability of manual and work methodology to conduct the techniques. As stated
in PMBOK there are different tools and techniques that are used to control the time (schedule) of
the project. In this research one of the research questions is to find the frequently used time
controlling tools by the contractors. In order to do so, these tools and techniques were listed and
the contractors were informed to rate the tools and techniques by their firm using 5-pointLikert
scale questions. In order to rank the techniques RII is used and the results help to rank the
techniques in their order of usage by the contractors.
From the filled questionnaires by BCI and GCI and the frequency analysis done it is found that
use of Project management software (RII=0.834) to control the time of Building construction
projects weights than other techniques used to control time of projects, as per the collected data
more than 25 % of the respondents always use and around 68 % of the respondents very often
use this tool. Also, from the interviews held with purposively chosen contractors, it is found that
most of the contractors find the use of software's easy to control the time of construction
projects. As per the finding 1/5 of the respondents always use trend analysis (RII=0.712).
Crashing with RII=0.639 is the third used time controlling technique by Grade one building and
general contractors of Addis Ababa. The three-time controlling methods (Network Diagram,
CPM, and PERT), Resource optimization techniques and EVM techniques have 4 to 6 ranking
with (RII= 0.60, RII=0.59 and RII=0.429) respectively based on the usage by the contractors.
38
Table 4.1:Time Controlling Tools and Techniques by BCI and GCI
Apart from this, the finding of the literature on researches conducted in Malaysia, India, Gaza
Strip and Ethiopian construction industry showed that the most practiced time controlling
techniques are CPM and PERT.
Furthermore, as per the result almost all contractors do not use EVM technique to control
construction projects and during the interview with the chosen contractors this fact is elaborated,
most of the contractors find EVM calculations time taking to use and the know-how of most of
the professional in the construction firm regarding this technique is minimal because of this they
prefer to use simpler method that does not need further calculations such as using MS -Project
software and trend analysis. This is also identified in the research conducted by Zewdu (2016),
which studies about the case of Ethiopian contractors' practice that only a few techniques and
software packages are being used for planning and time control. The study of Yimam (2011),
found that on average one third (1/3) of Ethiopian contractors performed only three out of four
PMBOK time management processes.
39
Time Controlling Tools and Techniques
80.00%
70.00%
60.00%
contractors (%)
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Schedule
Trend Network Resource
EVM Software compressio
analysis Diagram optimization
n
Never 9.76% 7.32% 53.66% 0.00% 12.00% 2.44%
Rarely 7.32% 41.46% 7.32% 0.00% 58.00% 39.02%
Sometimes 19.51% 4.88% 19.50% 7.00% 5.00% 9.76%
Very often 43.90% 36.59% 9.76% 68.00% 10.00% 34.15%
Always 19.51% 9.76% 9.76% 25.00% 15.00% 14.63%
4.2.1.2. Which type of cost controlling tools and techniques do BC1 and GC1 use the most?
Cost controlling techniques that are stated in the PMBOK include forecasting, calculation of
TCPI, EVM, using project management software, performance reviews, and reserve analysis.
These controlling tools were studied among the contractors under research. Based on the finding
project management software (RII=0.761), is used mainly as a cost management technique by
the contractors. Around 17.07 % of contractors always use software to control the cost
management of their projects. Next to software is performance reviews (RII=0.741) and
Forecasting (RII=0.717). The least used techniques by the contractors are Reserve analysis,
EVM and TCPI having RII of 0.537, 0.512 and 0.507 respectively. As per the interview held
with the contractors the usage of software and other simple forecasting methods are usually used
because the emphasis is not given to the detailed calculation of cost controlling techniques such
as EVM, TCPI and reserve analysis as per the finding of this research around 1/4 of the
contractors Never used this technique.
40
Table 4.2:Cost Controlling Tools and Techniques by BCI and GCI
This is also further described in the reviewedliterature, Study conducted in India by N & Baskar
(2016) showed that Forecasting (RII =0.817) is most practiced by the contractors. Research
conducted by Yimam, (2011) indicated that only 1/3 of grade one contractors (GC1, BC1, RC1)
in Ethiopia use computer tools for cost estimate preparation and about 60% of the contractors
performing on average 3 out of 4 practices expected to be carried out in cost management. This
shows that most of the cost controlling mechanisms that need detail calculations and project
status checks are not practiced by the contractors in AddisAbaba.
41
Cost Controlling Tools and Techniques
70%
60%
50%
Contractors %
40%
30%
20%
10%
0%
Performance Reserve
Forecasting TCPI EVM Software
review Analysis
Never 0% 24.39% 26.83% 7.32% 4.88% 17.07%
Rarely 17.07% 46.34% 48.78% 4.88% 9.76% 14.63%
Sometimes 19.51% 14.63% 9.76% 4.88% 9.76% 58.54%
Very often 51.22% 12.20% 4.88% 65.85% 60.98% 2.44%
Always 12.20% 2.44% 9.75% 17.07% 14.62% 7.32%
4.2.1.3. Which type of quality controlling tools and techniques do BC1 and GC1 use the
most?
Quality controlling which is a vital work in the construction process is practiced in Addis Ababa
GC1 and BC1 contractors majorly by using the inspection method (RII=0.732). Around 24% of
the contractors always and 32% of the contractors often use this method to check the work
quality and control if the construction work is progressing to the needed quality. Next to
inspection is the approved change request in which the contractors use has RII of 0.698. Cause
and effect diagrams, flowcharts, check sheets and histograms are also used by these contractors.
However, these methods are ranked 3rd by usage with RII of 0.527. From the listed techniques
the statistical sampling is the list practiced technique (RII=0.502). Around 46% of the
contractors never used this technique as project quality control tools and technique.
42
Table 4.3:Quality Controlling Tools and Techniques by BCI and GCI
Statistical
Sampling 19 46.34% 2 4.88% 5 12.02% 10 24.39% 5 12.02%
Inspection 2 4.88 % 2 4.88 % 14 34.15% 13 31.71% 10 24.34%
Approved
Change
Request 2 4.88 % 2 4.88% 14 34.15% 13 31.71% 10 24.34%
As per the research studied by Yimam (2011), about 43% of the sampled contractors performed
little or no quality management.
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Cause and effect
Change request
diagram &other Statistical sampling inspection
review
chart
Never 39.02% 46.34% 4.88% 4.88%
Rarely 12.20% 4.88% 4.88% 4.88%
Sometimes 12.20% 12.02% 34.15% 34.15%
Very often 19.51% 24.39% 31.75% 31.75%
Always 17.07% 12.02% 24.34% 24.34%
43
4.2.2. RQ-2 -Which type of time, cost and quality controlling tools and techniques do BC1
and GC1 having time overrun, cost overrun and quality problem use the most?
4.2.2.1. Which type of time controlling tools and techniques do BC1 and GC1 having time
overrun use the most?
From the questionnaires, the contractor's executed project data were collected. Contractors were
categorized based on their experience of time overrun, cost overrun and quality problem.
Accordingly, contractors having the highest number of time overrun are 49% of the sampled
contractors. These contractors are categorized based on a percentage of occurrence of time
overrun in their executed project.
Contractors
% of Project Delayed from Executed Projects Number %
0-25% 7 17.07%
25%-50% 7 17.07%
50%-75% 7 17.07%
75%-100% 20 48.78%
As per the data collected from the contractors, contractors having (75-100%) projects executed
having time overrun showed the time management techniques practiced by the firms.
Accordingly, as per the result of RII calculation, the first ranked project time controlling tools by
these contractors is Software usage (RII=0.84), second most used technique is schedule
compression(Crashing) technique (RII=0.76). Also, trend analysis which was ranked second
during the assessment of the contractor's practice study is found to be third-ranked (RII= time
controlling tool of the contractors that face time overrun. The fourth and fifth-ranked systems are
Network diagram, PERT, and CPM as a group and resource optimization with RII of 0.69 and
0.63 respectively. The least practiced technique is EVM which was also the least ranked in
section 4.21.
44
Time Controlling Tools and Techniques
70%
60%
50%
Contractors* (%)
40%
30%
20%
10%
0%
Trend Network Resource Schedule
EVM Software
analysis Diagram optimization compression
Never 10% 5% 35.00% 0% 20% 0.00%
Rarely 10% 20% 0.00% 0% 25% 25.00%
Sometimes 20% 10% 40.00% 10% 0% 0.00%
Very often 25% 55% 20.00% 60% 30% 45.00%
Always 35% 10% 5.00% 30% 25% 30.00%
4.2.2.2. Which type of cost controlling tools and techniques do BC1 and GC1 having cost
overrun use the most?
Out of the 41 sampled contractors that are selected for the questioners 18 contractors (43.9%)
experience 75-100% cost overrun while executing their projects. The practiced cost management
techniques by this contractors are studied.
Contractors
% of Project with Cost Overrun from Executed
Projects Number %
0-25% 11 26.83%
25%-50% 8 19.51%
50%-75% 4 9.76%
75%-100% 18 43.90%
45
The finding showed a slight difference in the practices by the sample contractors. First practice
in the rank of the cost control is a performance review (RII=0.722), the second in the rank is
forecasting technique (RII=0.711). Software which was the first in the rank of the previous
analysis in section 4.2.2 is ranked third with RII of 0.689. Fourth fifth and last practiced
techniques are the same as the previous finding Reserve analysis, EVM and TCPI respectively.
60%
50%
40%
Contractors* *(%)
30%
20%
10%
0%
Performance Reserve
Forecasting TCPI EVM Software
review Analysis
Never 0% 28% 5.56% 16.67% 0.00% 11.11%
Rarely 22% 22% 33.33% 11.11% 22.22% 11.11%
Sometimes 17% 44% 55.56% 11.11% 16.67% 61.11%
Very often 44% 6% 5.56% 33.33% 38.89% 0.00%
Always 17% 0% 0.00% 27.78% 22.22% 16.67%
46
4.2.2.3. Which type of quality controlling tools and techniques do BC1 and GC1 having
quality problem use the most?
From the 41 contractors that are questioned regarding the quality control practice 12 (29.23%)
experience a high rate of quality problem (75-100%) quality problem.
Contractors
% of Project with Quality Problem from Executed
Projects Number %
0-25% 18 43.90%
25%-50% 9 21.95%
50%-75% 2 4.88%
75%-100% 12 29.27%
This contractor's first ranked quality controlling technique is the same as the total sample which
is inspection with RII of 0.633. However, the second used method is a cause and effect diagram,
flowchart and checks sheet with RII value of 0.533 the third-ranked quality controlling tools are
statistical sampling and approved change request reviews having RII of 0.517.
47
Quality Controlling Tools and Techniques
Contractors** *(%) 60%
50%
40%
30%
20%
10%
0%
Cause and effect
Statistical Change request
diagram &other inspection
sampling review
chart
Never 33% 33% 16.67% 16.67%
Rarely 25% 17% 16.67% 50.00%
Sometimes 0% 8% 16.67% 0.00%
Very often 25% 42% 33.33% 25.00%
Always 17% 0% 16.67% 8.33%
4.2.3. RQ-3- What are the construction control recovery techniques used by GC1 and BC1?
As per the collected data, different recovery techniques of cost, time and quality problem are
used by the contractors. These recovery techniques as described in the PMBOK are listed and the
contractors were given to choose the most up to the list technique used by their firm.
48
Table 4.7:Recovery Tools and Techniques by BCI and GCI
Based on their responses, Frequent status checks ranked first on the list 53.66% of the
contractors always use this technique to recover the problem encountered. Second, to this is
Variation order is most practiced by the contractor with RII= 0.834, third practiced recovery
technique is claim request. Around 51.22% of the contractors usually use this technique.
Reviewing planning principles, schedule crashing and baseline reset are the list practiced
techniques with RII of 0.654,0.595 and 0.590 respectively.
49
Recovery Techniques of Cost Time & Quality Problems
60%
50%
40%
Contractors
30%
20%
10%
0%
Review
Baseline Frequent Schedule Claim Variation
planning
reset status check crashing request order
principles
Never 0% 9.76% 0% 4.88% 4.88% 0%
Rarely 14.63% 21.95% 9.76% 34.15% 9.76% 9.76%
Sometimes 56.10% 46.34% 4.88% 31.71% 14.63% 17.07%
Very often 17.07% 7.32% 31.71% 17.07% 19.51% 19.51%
Always 12.20% 14.63% 53.66% 12.20% 51.22% 53.66%
Also recovery techniques of Cost Time and Quality Problems are ranked by using RII .The
results are ranked as shown in the below table.
50
4.2.4. RQ-4-Which department is responsible for the construction controlling in the
organizational structure of BCI and GCI experiencing project control problem?
As per the finding of the analysis of the research, contractors experiencing time overrun, cost
overrun and the quality problem has a different organizational structure.The research classifies
the construction controlling responsibility of the contractors in the different categories as per the
below classification:
51
Construction Managment Controlling Responsiblity
60%
50%
40%
30%
Contractors (%)
20%
10%
0%
Contract
Construction No Specific
Adminstration Other Department
Team Department
Team
Contractors * 20% 55% 10% 15%
Contractors ** 17% 55% 17% 11%
Contractors *** 33% 50% 17% 0%
4.2.5. RQ-5-What is the perception of the professionals about their company's status in
relation to project management controlling practice?
From the questionnaires result and the interview, the perception of the contractors regarding the
status of their firm in relation to the construction control is known. As per the finding of the
research, 14.63 % of the contractor's rate their companies controlling system as a poor
controlling system, 12.25% as average, 53.66% as good and 19.51% as very good.
52
Perception of Contractors Regarding their Firm
Construction Controlling System
Poor
15%
Very good
19%
Average
12%
Good
54%
53
Table 4.9: Contractors Ranked Time, Cost and Quality Control Practices
# Description RII Rank RII * Rank
Time Management Practice
1 Trend analysis 0.712 2 0.730 3
2 Network Diagram (CPM), PERT 0.600 4 0.690 4
3 Earned value management (SPI, CPI) 0.429 6 0.520 6
4 Project Management software (MS-project, primavera...) 0.834 1 0.840 1
5 Resource optimization technique (resource leveling /Smoothing) 0.590 5 0.630 5
6 Schedule Compression (Crashing) 0.639 3 0.760 2
Cost Management Practice
1 Forecasting 0.717 3 0.711 2
2 To complete performance index (TCPI) 0.507 6 0.456 6
3 Earned value management (EV, BAC) 0.512 5 0.522 5
4 Project Management software (MS-project, Primavera...) 0.761 1 0.689 3
5 Performance reviews 0.741 2 0.722 1
6 Reserve analysis 0.537 4 0.600 4
Quality Management Practice
1 Cause and effect diagram, flowchart, check sheets, histograms, control charts 0.527 3 0.533 2
2 Statistical sampling 0.502 4 0.517 3
3 Inspection 0.732 1 0.633 1
4 Approved change request reviews 0.698 2 0.517 3
*Contractors (75-100% of the executed project by this contractor’s experience delay, cost overrun and quality problem)
54
CHAPTER FIVE
SUMMARY OF MAJOR FINDINGS, CONCLUSION, AND
RECOMMENDATION
While studying construction control tools and techniques of BCI and GCI contractors that
participate in the major building construction works in Addis Ababa, the following major
findings were discovered:
The time controlling tools and techniques by BCI and GCI contractors showed that there
is limited use of different time controlling tools and techniques that are listed in the
PMBOK.Majority of the contractors use project management software such as MS-
project to control the time of construction projects. However detailed time controlling
techniques such as EVM are not practiced on most of the construction firms.
Contractors with time overrun problem also showed the same result that most of the firm
use software to control time and resource optimization and EVM are practiced at a low
level.
The cost controlling tools and techniques by BCI and GCI showed from the tools and
techniques listed in PMBOK, project management software are the most used techniques
for cost control. However, the practice such as TCPI and EVM are least used by the
contractors.
Contractors facing cost overrun problem at a high rate use performance review and
forecasting for controlling the cost of their construction project.But TCPI and EVM are
practiced at the very low rate by these contractors.
As per the quality control tools and techniques used by BCI and GCI contractors
suffering from a high rate of quality problem, Inspection is ranked first from the list of
the techniques to control the quality of projects. However statistical sampling is used in a
minimum rate.
The recovery techniques used to control the problems caused by the cost overrun, time
overrun and quality problem by BC1 and GC1 are majorly frequent status checks and
55
variation orders, but techniques such as baseline reset are not practiced by these
contractors as a recovery technique.
Even though there exist delay, cost overrun and quality problems, from the studied firms,
more than half of the contractors believe that the construction controlling system
practiced by their firm can be categorized as a good controlling system.
5.2. Conclusion
The researches finding shows that there is a very low experience of using variety of construction
controlling tools and techniques by BCI and GCI in Addis Ababa. Most of the contractors under
study use simple techniques and technique that they use frequently , avoid detailed study and
new techniques that show the status ( the progress) of the construction projects.In addition to
that, the studied contractors controlling tools and technique systems shows that there is low-level
project controlling system , limited know-how of construction controlling tools and technique
and lack of responsible department or division in controlling the construction projects within
their company . The fact shows the professionals in the firms did not see the gap in project
controlling system of their company, even though there exists delay, cost overrun and quality
problem in most of BCI and GCI. The construction project delay, cost overrun and quality
problem is not further studied by the contractors. There is a lack of in-depth study of the
controlling system, gap and problem of the companies. The idea in relation to the gap of project
controlling system of the firm is not considered as an issue in most of the studied firms.
5.3. Recommendation
The below-listed points are the researcher's recommendations to the contractors to improve their
controlling system:
56
Providing training and mentoring to the professionals to improve their project controlling
practice.
Conducting a continuous control (assessment) of the project success in relation to cost,
time and quality.
Establishing a responsible department or division that is in charge of mainly on project
management control.
Conducting evaluation of the completed project in relation to the controlling tools and
techniques practiced
57
References
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:Zimbabwe. International Journal of Sustainable Construction Engineering .
Commission, N. P. (2015). The Second Growth and Transformation Plan (GTP II), (2015/16-
2019/20).
Dakhli, Z., & Ayalew, T. (2016). Assesement on Performance and Challenge of Ethiopian
Construction Industry. Journal of Archiecturea and Civil Engineering .
Long, N. (2004). Large construction projects in developing courtiers : A case study from
Vietnam. Intenational Journal of Project Management .
Memon, h., & Rahman, I. (2014). Time Management Practices in Large Construction Projects.
Merdith, J., & Mantel, S. (2003). Project management:A Manegerial Approach (5 ed.). Jhon
Willwy & Sons.
MOUD. (2012). Ethiopian Construction Industry development, Capacity building . Addis Ababa.
N, S., & Basakar, G. (2016). Effective Cost and Time Managment Techniques in Construction
Industry. International Journal of Engineering .
58
Otim, G., Nakacwa, F., & Kyakula, M. (n.d). Cost Control Techniques Used On Building
Construction Sites in Uganda.
PMI. (2013). A Guide To Project Managment Body of Knowledge (Vol. 5th). Pennsylvania, u.s.a:
Project Management Institute.
PMI. (2013). A Guide to the Project Management Body of Knowledge (5 ed.). Pennsylvania:
Project Management Institute.
Sawalha, N., & Enshassi, A. (n.d). Application of Project Time Management Tools and
Techniques to the Construction Industry in the Gaza Strip.
Sekaran, U. (2003). Research Methods for Buisness. Illinois: John Wiley & Sons.
Yamane, T. (1967). Statistics; An Introductory Analysis. New york: HARPER & ROW.
Zewdu, Z. (2016). Construction Projects Delay and Their Antidotes: The Case of Ethiopian
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59
APPENDICES
Dear Sir/Madam,
The survey will take about 15 -20 minutes of your time. Your answers will be treated
anonymously and will not end up in the hands of a third party. Only processed collective results
will be presented in my report. Your assistance to this research is strictly voluntary. You do not
have to answer any question you wish not to.
If you have questions or concerns, please contact me through my cell phone no: (+251)-913-181-
098 or email: hiwimare@yahoo.com. Thank you for your time and consideration.
Best Regards,
Hiwot Alemayehu
Graduate Student, School of Commerce Addis Ababa University
60
B. Questionnaire Sent to Contractors
# Detail Number
1 How many building construction projects that are above G + 0 did you
execute in the past 5 years?
2 How many of these projects completed on time?
3 How many of these projects completed within the budget?
4 How many of these projects completed to the desired quality?
2. Who is responsible for the construction control system management execution phase of the
construction?
C. Another department
3. How would you rate the quality of the constructioncontrol management practice of your
company?
A. Poor
B. Average
C. good
D. Very good
E. Excellent
61
4. How do you communicate about the construction status?
A. Regular meeting
B. Reporting
C. Progress recording
D. Other
1. Please rate ( ) in the scale of your experience of applying the time management control
techniques listed below.
6 Schedule Compression
(Crashing)
62
2. Please rate ( ) in the scale of your experience of applying the cost management control
techniques listed below.
# Techniques Never Rarely Sometimes Very often Always
1 Forecasting (develop a
forecast of completion cost)
2 To complete performance
index (TCPI) (ratio of cost of
outstanding work to
remaining budget)
3 Earned value management
(EV, BAC, CPI)
4 Project Management software
(MS project, Primavera...)
5 Performance reviews
(comparing cost performance
over time, schedule activities
or work packages)
6 Reserve analysis (contingency
or reserve need analysis)
3. Please rate ( ) in the scale of your experience of applying the quality management control
techniques listed below.
63
3 Inspection
4 Approved change request
reviews (checking if
changes are implemented as
approved)
4. Please rate ( ) in scale control and recovery technique that you use to control time, cost and
quality of the construction projects.
64
C. List of Contractors
No. Organization Name Con No Category Tel Sub city Wereda House No
3M Engineering
1 &Con.PLC CON/0086 BC-1 0911 211050 Kirkos 4 393
Afro-Tsion
3 Construction PLC CON/0380 GC-1 0911 216425 Bole 4 -
BirhanuAshebir
15 Construction PLC CON/1219 BC-1 0911 231102 Yeka 8 204
65
16 BirukBeserAchew CON/5073 BC-1 0911 514477 N/L 2 New
Bright Construction
17 PLC CON/0599 BC-1 0911 211161 Bole 3 2292
Desalegn Asreda
21 Building Contractor CON/0064 BC-1 0916 581400 Lideta 8 B008/005
Dugda Construction
22 PLC CON/5717 BC-1 0930 098564 Arada 1 595/596
Equator Engineering
23 Construction PLC CON/938 BC-1 0911 902436 Bole 6 New
Ethio Canadian
25 Business Group PLC CON/2772 GC-1 0911 233657 A/Kaliti 3 New
Felema Construction
26 PLC CON/7088 BC-1 0935 981681 Bole 07 New
FufaLegissa Building
27 Contractor CON/0646 BC-1 0911 203654 Yeka 19 631
GashawMelese
29 Building Contractor CON/0327 BC-1 0911 207727 A/K 9 177
Getachew
30 AtsbehaKidanu CON/0635 BC-1 0911 236549 Bole 4 100
66
31 Gift Construction PLC CON/10923 BC-1 0911 219557 Kirkos 02 121
Kasma Engineering
36 P.L.C. BC-1 0930034821
Kassa& Sons
37 Construction P.L.C. BC-1 0911 203874
Kibco Service&
38 Investment PLC CON/6774 BC-1 0911 201255 Bole 03 2144
LUCI ENGINEERING
40 P.L.C. CON/2869 BC-1 0929 907130 Bole 9 New
M C G Construction
41 PLC CON/10490 BC-1 0929 900660 Bole 3 1/083
Macro General
Contractor & Trading
42 PLC CON/0101 GC-1 0911 202814 N/L 15 New
Megelta Construction
43 P.L.C. CON/4415 BC-1 0911 678211 Lideta 8 821/50
Mudcon Construction
44 PLC CON/5630 GC-1 0911 507850 K/K 7 New
MuluHadgu
45 Construction CON/2009 BC-1 0911 513932 Bole 13 3848
67
N.K.H. Construction
46 P.L.C. CON/0996 GC-1 0911 204295 N/L 12 -
Nasew Construction
47 P.L.C. CON/0031 GC-1 0911 692384 N/L 7 400
SATCON Construction
53 PLC CON/0774 GC-1 0113 727822 N/L 5 3113
Sunshine Construction
55 PLC CON/0135 GC-1 0911 459881 Kirkos 1 653
Tesfaye Tsegaye
59 Building Contractor CON/4111 BC-1 0916 827643 Ledeta 8 001
68
Tilahun Abebe
60 G/Mariam CON/4569 GC-1 0911 767528 Kirkos 2 -
Webcon Construction
65 PLC CON/6768 BC-1 0930 099304 Bole 14 206
Yohannes Haile
68 Building Contractor CON/3675 BC-1 0930 003850 Bole 1 -
Yotek Construction
70 PLC CON/0799 GC-1 0911 543604 Kirkos 6 252/2
Yousef Kassaye
71 Building Contractor CON/0534 BC-1 0911 414243 A/Ketema 5 600
Zamra Construction
72 PLC CON/0620 GC-1 0911 563327 Yeka 13 New
69