Critical factors affecting cost performance: a case of Ethiopian public construction projects

Abstract

ABSTRACTA striking feature of public construction projects worldwide has been the occurrence of cost overrun, and the Ethiopian construction industry is no exception. The purpose of this study is to determine the factors responsible for impacting the cost performance of Ethiopian public construction projects. For this purpose, 35 attributes responsible for impacting performance of the projects were identified and presented to Ethiopian construction professionals in the form of structured questionnaire and responses were collected. The factor analysis conducted on success attributes and failure attributes separately resulted in seven success factors and six failure factors. Further analysis using stepwise multiple regression indicates that scope clarity and project manager's competence have positive impact on cost performance. On the other hand, conflict among project participant, and project manager's ignorance and lack of knowledge have negative impact on cost performance of Ethiopian public construction projects. The findings are expected to assist researchers and practitioners to gain better understanding of the critical success and failure factors and helping them to take proactive measures to improve project cost performance.