ASSESSIMENT of CLAIM MANAGEMENT PRACTICE of ETHIOPIAN CONSTRUCTION WORKS CORPORATION: A CASE on BUTA JIRA ASPHALT ROAD CONSTRUCTION PROJECT PHASE II

Abstract

Ethiopian roads administration wants to improve road net work road asset management related its infrastructure. It implements many road net work projects across the country each year, funded by local funds and foreign donor. Many of these projects are experiencing major delays, affecting the socio-economic development of the country. Therefore, there is a need to address this issue immediately and help the project management team understand and better manage delays. The main aim of this study is to identify the frequent causes of claim and effects of claim in the construction of Buta Jira road construction project phase II. Therefore, this study adopts quantitative and qualitative methods with the help of primary and secondary data. The researcher collected the Primary data using self-administered questionnaires on 22 respondents and key informant interviews with 10-18 years experienced experts in the construction sector. The Secondary data collected by reviewing materials. Analysis of the quantitative data made using SPSS version 24. Analysis of questionnaire responses indicates; Ineffective project planning and scheduling, Poor site management and supervision of the project by the contractor followed by delay in progress payments (Funding problems) by the owner, and Shortage of construction materials. Moreover, the Mode of financing and payment for completed work by the owner, Escalation of material price, frequent equipment breakdowns, late delivery of materials, and inadequate planning are other critical factors that contribute to construction claim. On the other hand time overruns, cost overruns, total project abandonment, claims litigation with other parties and disputes are among the most worst effects due to delay. The quantitative collected data further analyzed by establishing the regression tools of the various factors identified as causes for project implementation delay. The study recommends that current project planning and administration control could improve by adopting the right tools, assigning the appropriate staff. Finally this thesis contributes to the improvement of contract claim management in Ethiopian construction industry and open ways for further researches related to claim management.