Abstract:
The construction project site is located in Oromia Regional State in Jimma zone, in
Agaro town. Agaro town is located at 390km from Addis Ababa. Agaro Campus Lot II
Construction Project is property of Jimma University.
Projects are often implemented as a means of achieving an organization’s strategic plan.
Almost all civil engineering constructions are undertaken in project form having a
predefined cost, completion time and quality. A timely performance of the contractor in
the construction field is essentially important for the client and the contractor.
It is generally accepted that liquidated damages clauses have benefits for both parties to
a contract. Liquidated damages is a sum fixed by the parties to a contract as a genuine
pre-estimate of damage in the event of a breach, whether as a predetermined lump sum,
or by means of a specific calculation or scale of charges. On the specific case of Agaro
campus lot II project, a desk research method was employed to assess the causes and
effect of the construction progress which lets to the project to liquidate.
Consequently, the results of payment utilization, advance payment repayment, and the
work plan progress evaluation over the entire months of the contract period, shows the
project liquidated on the progress status of below ten percent. And this were attributed to
the disinterest to work caused by advance payment misuse by the contractor and
bankruptcy fear. However the contractor’s intention was not strongly realized by the
client and the consultant for he should have been terminated by mutual agreement before
the contract period has expired.
