DEBRER BERHAN UNIVERSITY

POST GRADUATE PROGRAM

MASTER OF BUSINESS ADMINISTRATION

Course Title: project management

Individual Assignment: Project Review

Title: PROFILE ON HIGH GRADE CONTRACTOR

Submitted To: Dr. Shifraw.

Submitted by: Yonas Tekle

ID NO.1400594

Section B

Submitted date: May 2023

Evaluation:
 The project sample provides a comprehensive overview of the establishment of a
high-grade contracting firm with a capacity of undertaking Birr 250 million worth
construction projects per annum. The report covers all the essential aspects, including
service description, market study, technology and engineering, manpower, training
requirements, financial analysis, and economic benefits.
 This project is its market study, which provides a detailed analysis of the current
demand and supply of contractors in Ethiopia. The report identifies that an additional
30 high-grade contractors are required, and if not materialized, the requirement will
increase to 665 by the year 2020. This information is critical in determining the
viability of the project and its potential success.
 The project is its financial analysis, which shows that the project is financially viable
with an internal rate of return (IRR) of 14% and a net present value (NPV) of Birr
26.68 million, discounted at 8.5%. This information is essential for investors who
want to assess the profitability of the project.
 The project sample that need to be addressed. Firstly, the report does not provide a
detailed analysis of the technology and engineering aspects of the project. It only
provides a brief overview, which may not be sufficient for investors who want to
know more about the technical aspects of the project
Strength of the project sample is
 Its market study, which provides a detailed analysis of the current demand and supply
of contractors in Ethiopia. The report identifies that an additional 30 high-grade
contractors are required, and if not materialized, the requirement will increase to 665
by the year 2020. This information is critical in determining the viability of the
project and its potential success. The market study also provides information on the
types of contractors and their percentages in the industry, which helps to understand
the competition and potential market share of the proposed high-grade contracting
firm.

Justification
 , the report provides a clear service description of the proposed high-grade contracting
firm, indicating that it can undertake various construction works such as buildings,
roads, bridges, airports, dams, railways, etc. This clarity in service description helps
investors to understand the scope and potential of the project.
 The financial analysis is strength of the project sample. The report shows that the
project is financially viable with an internal rate of return (IRR) of 14% and a net
present value (NPV) of Birr 26.68 million, discounted at 8.5%. This information is
essential for investors who want to assess the profitability of the project.
 , the project sample provides a good overview of the establishment of a high-grade
contracting firm in Ethiopia. Its strengths lie in its market study, service description,
and financial analysis.

Weakness of the project sample is

 Its lack of detail in certain areas. For example, the report does not provide a
comprehensive materials and inputs section, which could be crucial in understanding
the cost and availability of resources required for the project. Additionally, while the
report mentions the technology and engineering aspects of the project, it does not
provide detailed information on the specific technologies or engineering methods that
will be used.
 Furthermore, the manpower and training requirement section lacks specificity, as it
only provides a general overview of the number of employees required and their job
descriptions. The report could benefit from providing more detailed information on
the qualifications and experience required for each position, as well as the training
programs that will be implemented to ensure that employees are adequately prepared
for their roles.

Justification
 While the financial analysis section provides some key figures such as the IRR and
NPV, it does not provide a breakdown of the sources of funding or a detailed
explanation of how these figures were calculated. This lack of transparency could
 make it difficult for potential investors to fully understand the financial viability of
the project.

Suggestion to improve the quality of the project,

 The report could benefit from providing more detailed information on the market
study, including the specific factors that were considered in determining the need for
an additional 30 high grade contractors and the projected increase in demand by 2020.
Additionally, the report could provide more detailed information on the current
market share of high grade contractors and how the proposed firm will differentiate it
from competitors.
 Furthermore, the report could provide more detailed information on the construction
machinery required for the project, including the specific types of machinery and their
cost. This information would be crucial in understanding the total investment
requirement and ensuring that the project is financially viable.
 Finally, the report could benefit from providing a breakdown of the economic benefits
of the project, including its impact on job creation and local economic development.
This information would be important in garnering support from potential investors
and