Introduction

Project management as defined by project management

institute “is the application of knowledge, skills, tools, and

techniques to project activities to meet the project

requirement” [1]. The main project requirements are time,

quality and cost; while considering scope of project and also

stakeholders satisfaction or requirement. In order to satisfy

stakeholders and meet the requirement, new techniques and

approaches were tried by practitioners. Ethiopian

construction industry is lagging behind in meeting the project

management principles. Because, the industry is still plagued

with cost overrun, late completion and delay behind schedule

(time overrun). One of the approaches to minimize problems

in project management, practiced in many countries is valuecategory of least

developed, using latest approaches to

construct at minimum possible price, with quality and set

time is not questionable. Hence, this research is aimed to

assess the implementation of Value engineering principles in

Ethiopian construction industry and the current practice of

project management specifically in Building construction

project.

Historic development of construction project management

1
Before looking into the historical background of the construction industry, it is
necessary to

look at what exactly constitutes the construction industry. In trying to define the
construction

industry, it may not be easy to come up with a universal definition. This is because of
the fact

that the definitions bestowed to the phrase in different societies tend to contain
different

aspects pertinent to that society. Of the definitions given, the definition given to the
phrase by

Australian Bureau of Statistics to its construction industry survey seems appropriate

and widely

applicable. Accordingly, the construction

Coming to our country, the growth and increasing demand for the construction
industry has

followed a similar pattern as observed in the trend of the world. Currently,

construction is one

of the sectors leading the way towards modernization and industrialization in

Ethiopia. The

construction sector in Ethiopia, generally in the world, contributes to the realization of

about fifty

percent of the total capital. Being the second largest employer in the country, it’s also
an engine

for technology, innovation and overall development.

In the past history of Ethiopia, the construction industry was not considered as an
independent

sector of the national economy. It was rather considered as incapable of generating

national

2
wealth. As a result, no comprehensive strategy for its development was considered.
This, in turn,

has led to the undesirable features of the current construction sector. These features
include

lack of clear developmental objectives for the industry; inadequate co-ordination of

planning

between the industry and infrastructure programs in the various sectors of the
economy heavy

dependence on foreign resources such as materials, equipment and expertise

representation

of the role players in the construction sector by inadequate and ineffective

organizations

inadequate numbers of suitably qualified and experienced personnel at all levels that
include

engineers, technicians, mechanics, operators and foremen, etc. inadequate relevant

local

construction regulations and standards, and inadequate consideration given to the use
of local

resources (including community participation in labor-based works)

For over a decade the Government of the Federal Democratic Republic of Ethiopia
(FDRE) has invested heavily in the expansion and improvement of the construction
services delivery and in the modernization of the construction sector. The Government
has been working hard not only on the creation and management of physical
infrastructure (asset) but also on institutions and human resources capacity and skills
development in the construction sector. But the impact of these efforts is less
sustained and the performance of construction contracts delivery is yet far from
desired standards of delivery or industry practice. In order to address these challenges
sustainably, the Government has established the Ethiopian Construction Project
Management Institute (ECPMI) in July 2013 under regulation No. 289 /2013.

Ethiopian Construction Project Management Institute is a government-sponsored

institute under the Ministry Urban Development and Construction responsible for

3
primarily working on construction management capacity building and providing
research-based policy guidance to the construction sector.

Since its foundation, the institute despite its short existence has achieved outstanding
outputs and intermediate outcomes that have laid the basis to transform the national
construction project management maturity level from the existing Level I to Level IV
in the coming 10 years period

Why construction management in Ethiopia is important to the construction sector

Construction contract management capacity limitation is a key challenge in Ethiopian

construction sector.

The progressive growth of the Ethiopian economy demands new construction

demands from

year to year. It is time to think in holistic the important parts of construction process,
the

actors like contractor , consultants, material suppliers. As the size of construction

grows the

administration and management capacity towards of implementing entity must be

built. It is an

opportunity for the companies to remain in a very healthy competitive environment.

The objectives of the study is to identify management control problems of

construction industry

in Ethiopia. The research problem it is approached by conducting survey on key actors

of industry. Sufficient primary and secondary data were collected and analyzed. SPSS

application program used for analysis using descriptive statistics

The key challenges identified within the industry , shortage of skilled and unskilled
manpower,

machineries and tools, absence of appropriate standards and guidelines, lack of strong

institutional capacity to oversee the construction industry, lack of construction project

4
management and control skills were some of the many. These challenges has
contributed to

poor performance level of the industry indicated by delay, cost overrun , poor quality
delivery.

The presence level of Corruption and unethical acts between the key actors within the
industry

are the known constraints that emanates from low implementation capacity.
Hence ,the main

challenges be summarized as low implementation capacity with respect to manpower,

material

and machinery supply , organizational and systemic issues.

Though project management and control failures is the manifestation of the above
listed

constraints it is dealt separately and found the practices not yet exercised to a level
that bring

incremental project management success. These specific problem continued

throughout

each stakeholders .Some common manifestation identified, poor planning culture,

skill gap of

appropriate planning technique applications, absence of construction project

management

skills and personnel’s.

The research tried to conclude that a lot has to be done towards building the local
capacity.

As the current growing demand of construction it is an opportunity that needs a

number of

interventions to improve further. Moreover, in conclusion the absence of clear

construction

5
industry policy framework was the major source of all challenges to be.

Lastly the researcher put some recommendations based on the findings that help
policy

makers action. Some of it ,build the local domestic construction contractors and
consulting

companies capacity, improve the capacity and performance of the public sector and
the private

sector clients to effective implementation and construction management control,

ensuring

the application of cost effective and innovative technologies and practices to support
socio

economic development activities of major infrastructural projects , improve the

industry

performance to export standard level , introduce institution in charge of construction

industry

capacity building and prepare and implement national construction industry

framework

Why construction management in ethopia is important to the construction sector

Construction contract management capacity limitation is a key challenge in Ethiopian

construction sector.

The progressive growth of the Ethiopian economy demands new construction

demands from

year to year. It is time to think in holistic the important parts of construction process,
the

actors like contractor , consultants, material suppliers. As the size of construction

grows the

administration and management capacity towards of implementing entity must be

built. It is an
6
opportunity for the companies to remain in a very healthy competitive environment.

The objectives of the study is to identify management control problems of

construction industry

in Ethiopia. The research problem it is approached by conducting survey on key actors

of industry. Sufficient primary and secondary data were collected and analyzed. SPSS

application program used for analysis using descriptive statistics

The key challenges identified within the industry , shortage of skilled and unskilled
manpower,

machineries and tools, absence of appropriate standards and guidelines, lack of strong

institutional capacity to oversee the construction industry, lack of construction project

management and control skills were some of the many. These challenges has
contributed to

poor performance level of the industry indicated by delay, cost overrun , poor quality
delivery.

The presence level of Corruption and unethical acts between the key actors within the
industry

are the known constraints that emanates from low implementation capacity.
Hence ,the main

challenges be summarized as low implementation capacity with respect to manpower,

material

and machinery supply , organizational and systemic issues.

Though project management and control failures is the manifestation of the above
listed

constraints it is dealt separately and found the practices not yet exercised to a level
that bring

incremental project management success. These specific problem continued

throughout

7
each stakeholders .Some common manifestation identified, poor planning culture,
skill gap of

appropriate planning technique applications, absence of construction project

management

skills and personnel’s.

The research tried to conclude that a lot has to be done towards building the local
capacity.

As the current growing demand of construction it is an opportunity that needs a

number of

interventions to improve further. Moreover, in conclusion the absence of clear

construction

industry policy framework was the major source of all challenges to be.

Lastly the researcher put some recommendations based on the findings that help
policy

makers action. Some of it ,build the local domestic construction contractors and
consulting

companies capacity, improve the capacity and performance of the public sector and
the private

sector clients to effective implementation and construction management control,

ensuring

the application of cost effective and innovative technologies and practices to support
socio

economic development activities of major infrastructural projects , improve the

industry

performance to export standard level , introduce institution in charge of construction

industry

capacity building and prepare and implement national construction industry

framework

8
Construction management is particularly vital to large-scale projects that have more
potential for problems that could significantly delay the project and cost money.
A construction manager measures each design decision with careful analysis that
calculates the impact that decision will make on the budget and schedule.

What are the major challenges

The major challenges are identified as: (i) delay in construction industry development (CID)
policy implementation and corruption; (ii) weak capacity of contractors and consultants; (iii)
lack of collaboration and professionalism; and (iv) lack of benchmarking CID practice from
role of government, resource related variables, nature of the industry and industry’s vision
for its own development, respectively. Findings provide information that stakeholders can
use to make informed decisions and critical interventions for the effective development of
the industry.

In this regards, respondents were asked to identify the management challenges they face while

managing construction projects. Table 4 presents the response on Management Challenges of the
Ethiopian

construction industry. The notation used is as follow: 1. Not at all 2. Very little extent 3. Moderate extent
4.

Large extent. Accordingly, they identified time (3.3), cost (3.28), risk (3.17), resources (3.17) and safety

management (3.16) as the most challenging issues in managing their day to day’s activities. The result
also

reinforces the result obtained above in terms of project management practices since the management
challenges

are the consequences of poor practice of project management tools and techniques and lack of adapting

appropriate project management procedures

Tableau 4. Response on Management Challenges

Management Challenges

Mean Score Standard Dev. Rank

Resources Management (Allocation and utilization) Challenges

(Materials, Manpower, Money and Machine) 3.17 0.68 3

Time (Scheduling) Management challenges 3.30 0.71 1

9
Cost Management Challenges 3.28 0.66 2

Quality Management Challenges 3.12 0.58 7

Safety Management Challenges 3.16 0.97 5

Handling Multiple Project Management Challenges 3.13 0.81 6

Organizational Management Challenges 3.07 0.75 8

Change Management Challenges 3.06 0.85 9

Risk and uncertainty Management challenges 3.17 0.95 3

Communication Management challenges 2.97 0.64 10

Top 6 Construction Project Challenges

Inadequate Risk Management. Often, project managers put safeguards in place for
long-term

risk. ...

Lack of Structure. ...

Poor Communication. ...

Unrealistic Expectations/Bad Forecasting. ...

Delayed Cash Flow. ...

Limited Skills.

Conclusion

Ethiopian construction

industry is still dependent on conventional approach rather

than using improved and modern management system. The

industry is facing challenges of delay, poor quality, cost

10
overrun, poor engagement and low satisfaction of

stakeholders.

The parties in the industry has no know how about the

concept of project management and has no willingness to

practice such type of practices. This is an indication of

resistance for new management mechanisms and more trust

on conventional approach. Simple study conducted on value

engineering principle on some projects shows, it is possible

to save cost and time while maintaining quality. However, the

parties in the study area were not focusing on the alternatives

of reducing cost and construction time.

Cons

Reference

https://ecpmi.gov.et › ~contentsPDF

WM - 04 - Ethiopian Construction Project Management Institute

https://scholarworks.waldenu.edu › ...PDF

Ethiopian Construction Project Management Maturity Model ...

http://etd.aau.edu.et › handlePDF

ADDIS ABABA UNIVERSITY DEPARTMENT OF PROJECT ...

https://www.allianceexperts.com › b...

Construction in Ethiopia and opportunities in the Ethiopia building industry

http://repository.smuc.edu.et/bitstream/123456789/1538/1/Hailemeskel%20Tefera.pdf

11
https://www.researchgate.net/profile/Sintayehu-Assefa/publication/
335107538_Concept_of_Value_Engineering_and_Current_Project_Management_Pra
ctice_in_Ethiopian_Building_Construction_Projects/links/
5d50676a299bf1995b780181/Concept-of-Value-Engineering-and-Current-Project-
Management-Practice-in-Ethiopian-Building-Construction-Projects.pdf?
origin=publication_detail

12