ASSESSMENT ON THE CHALLENGES OF PROJECT CLOSEOUT: THE CASE OF ADDIS ABABA LIGHT RAIL PROJECT PHASE 1

Abstract

Project closeout is a significant and mandatory process, particularly in mega projects. During the project closeout phase, megaprojects often face different challenges which depend on the nature of the project including lack of budget, project delay, lack of required resources, disputes and claims. This study was conducted on the Addis Ababa Light Rail Transit (AALRT) phase 1,one of ERC mega project in Ethiopia as a case study. The main purpose of the study was to assess the challenges of project closeout in the AALRT phase 1project. The study adopted descriptive research design. The study used both qualitative and quantitative methods of study. Source of data collection used for the study were both primary data (structured survey questionnaire and structured interview)and secondary data. The study used census technique and identified 30 respondents from contractor, consultant, and client who were professionals and directly participated in the project closeout phase of AALRT project and currently available in Ethiopia. A total of 30 questionnaires were collected and 30 responses were found valid which 100% response rate.Quantitative data were analyzed using statistical analysis of descriptive statistics frequency, mean and the Relative Importance Index (RII) to compute the data as well as qualitative data from interviews were analyzed using a qualitative description of interview responses. The study found out that external challenge; government interference and delay in utility services have scored first and second respectively as the major closeout challenge in closing the AALRT project. Also delay in decision making of the client, the financial difficulty of the owner, change of consultant responsible person at a critical time and limited consultant staff at the closeout stage scored from 3 to 6 respectively. The study concludes that the AALRT project closeout was affected by both internal and external challenges that were faced during the AALRT project closeout. The study recommended that for successful project closeout all stakeholders should plan the closeout, prepare finance before the closeout stage in advance and project should be free from unnecessary government interference. For future studies, other researchers can study the challenges with its impacts on the project management.