Factors Affecting Performance of Construction Projects: A Study of Health Care Construction Projects in Jimma Zone, Oromia

Abstract

The construction industry in Ethiopia is characterized by its complexity due to various internal and external factors. This study aimed to identify factors that affect the performance of healthcare construction projects in the Jimma zone, Ethiopia, focusing on the most common performance issues and their impact on project performance. Data was collected from 55 professionals, including clients, consultants, project managers, contractors, and site engineers. The collected data was analysed using SPSS version 25 using descriptive statistics and the relative importance index (RII) to rate respondents' perceptions of major factors and performance issues towards project performance. The correlation between independent and dependent variables was also explained using binary logistic regression analysis. The research focused on 52 performance areas, grouped under eight broad key factors: cost, time, quality, productivity, client satisfaction, health and safety, regulatory and community satisfaction, and innovation and learning. The top performance areas were identified as having the greatest impact on project performance based on their relative importance index (RII) rank, with material and equipment cost having the highest RII score. Other factors included project labour cost, cash flow, overtime cost, quality of materials and equipment, decision-making speed, financial constraints, failure review and resolution, and leadership skills of project managers respectively. The study found a strong relationship between project success and time, productivity, client satisfaction, health and safety, and innovation and learning factors. These insights can provide guidance for project managers, stakeholders, and decision-makers across the construction industries and ultimately enhancing project success rates.