DETERMINANTS OF PROJECT IMPLEMENTATION DELAY: THE CASE OF SELECTED PROJECTS FINANCED BY DEVELOPMENT BANK OF ETHIOPIA

Abstract

Completion of projects within schedule is a major contribution towards the competitive edge in organizations. This is based on the realization that the achievement of the targeted objectives is determined by the ability to deliver the targeted output within the stipulated time. Project implementation delay can be defined as the late completion of work compared to the planned schedule. Project implementation delay can be minimized only when its determinants are identified. The objective of this study is to identify the major determinants of project implementation delay and methods of minimizing project implementation delays. The research targeted projects financed by the Development Bank of Ethiopia. The independent variables causing project implementation delay are poor project initiation, poor project planning/design system, improper implementation, poor project monitoring, evaluation and controlling system, poor communication, improper project closure, and the dependent variable is project delay. The study considered 125 projects through stratified sampling method from projects financed over the last three years. Data were collected from randomly selected project managers using structured questionnaire and secondary data were also used. Data were analyzed using linear regression method. According to the findings, a strong, positive and significant relationship was observed between all delay factors considered as independent variables and project delay. Among the six delay factors (poor project initiation, poor project planning/design system, improper implementation, poor project monitoring, evaluation and controlling system, poor communication and improper project closure), poor project initiation was identified and concluded as the determinants with the highest influence on project completion delay. So that any business initiators should select project those are more familiar and interesting for them and scope of project should be established, controlled and must be clearly defined and be limited.