Factors Affecting the Performance of Public Construction Projects: The Case of Addis Ababa Roads and Condominium Projects

Abstract

Despite significant public investment in construction projects, they rarely meet planned schedules, costs, and quality standards. This study assesses the performance of public construction projects in Addis Ababa across three dimensions: schedule, cost, and quality. Data was collected via questionnaires from 122 respondents, including project managers, resident engineers, and counterpart engineers. The Relative Importance Index (RII) identified critical factors affecting performance gaps, and ANOVA, correlation, and multiple regressions were used for analysis. Findings reveal average variances of -117.84% in schedule, -32.37% in cost, and -17.95% in quality, with statistically significant differences among project types. Schedule variance positively impacts cost variance, and quality variance positively affects schedule variance. Key factors contributing to performance gaps include ineffective planning, poor site management, financial difficulties, delays in payment and site delivery, low-price bidding reliance, design approval delays, and external issues like price escalation and utility unavailability.