ST.

MARY’S UNIVERSITY
School of Graduate Studies

Causes and consequence of delay in the construction

project of Private Real Estate and Its effect on the
project Implementation, the Case of Noah Real Estate

By: Hewan Teklu

ID: 0311/2014 A

Advisor: Yilkal Wassie (Asst. Prof.)

July, 2023

Addis Ababa, Ethiopia

Causes and consequence in the construction project of Private Real Estate
and Its effect on the project Implementation, the Case of Noah Real Estate

By: Hewan Teklu

ID: 0311/2014 A

A thesis submitted to St. Mary‟s University, School of Graduate Studies

in Partial Fulfilment of the Requirements for the Award of the Degree of
Master of Project Management

July, 2023

Addis Ababa, Ethiopia

 CERTIFICATE OF APPROVAL

This is to certify that the thesis prepared by Hewan Teklu, entitled “Causes and
consequence in the construction project of Private Real Estate & Its effect on the project
Implementation, the Case of Noah Real Estate and submitted in partial fulfillment of the
requirements for the Degree of Masters in Project Management with the regulations of
the University and meets the accepted standards with respect to originality and quality.

Approved by Board of Examiners

_________________________ ________________
Dean, Graduate Studies Signature & Date

Yilkal Wassie (Ass. prof) July 19, 2023

Advisor Signature & Date

Muluadam Alemu (Ph.D) July 18, 2023

Internal Examiner Signature & Date

Desta Mulugeta (PhD) 20-07-23

External Advisor Signature & Date

 DECLARATION

I, the undersigned, declare that this thesis is my original work, prepared under the
guidance of Yilkal Wassie (Asst. Prof.). All sources of materials used for the thesis have
been duly acknowledged. I further confirm that the thesis has not been submitted either in
part or in full to any other higher learning institution for the purpose of earning any
degree.

Name: Hewan Teklu Signature

________________

July, 2023
 ENDORSEMENT

This is to certify that the research entitled “Causes and consequence of delay in
construction projects of private real estate in the case of Noah real estate, Figa site” has
been the independent work done by Hewan Teklu (ID No. SGS/0311/2014A) under my
supervision as a University research advisor and submitted to St. Mary‟s University,
School of Graduate Studies, Project Management program in the partial fulfillment of the
award of Master of Project Management.

Advisor: Yilkal Wasse (Asst, Prof.)

Signature:

Date: July, 2023

 ACKNOWLEDGMENT

First and for most thanks to Almighty GOD for his blessings, strength and knowledge he
extended to me while carrying out this academic work.

I would like to express my sincere thanks to my advisor Yilkal Wassie (Asst. Prof.) who
provided me his professional support to complete this paper.

I am also grateful to express my sincere thanks to Noah real estate project and
management staff that provided me the necessary data to materialize this paper. Specially
for the company project manager Mss Betelhem Alemu for her unreserved
cooperativeness in doing data collection.

Finally, I must express my very profound gratitude to my Husband, Mesfin Wondafrash,

my beloved babies (Leul & Edom) and my dearest sister Enaye, for their support and
continuous encouragement throughout my years of study and through the process of
researching and writing this thesis.
Table of Contents
Abbreviations ............................................................................................................................................... 3
ABSTRACT ................................................................................................................................................. 4
CHAPTER ONE .......................................................................................................................................... 5
INTRODUCTION ........................................................................................................................................ 5
1.1 Background of the study ............................................................................................................... 5
1.2 Statement of the problem .............................................................................................................. 6
1.3 Project Research Question ............................................................................................................ 7
1.4 Objectives of the study ................................................................................................................. 7
1.4.1 General Objectives of the study ............................................................................................ 7
1.4.2 Specific objectives of the study............................................................................................. 7
1.5 Significance of the study............................................................................................................... 8
1.6 Scope of the study......................................................................................................................... 8
1.7 Limitation of the study.................................................................................................................. 8
1.8 Organization of the study .............................................................................................................. 8
CHAPTER TWO.......................................................................................................................................... 9
REVIEW OF LITERATURE ....................................................................................................................... 9
Introduction .............................................................................................................................................. 9
2.1 Concept and Definition ................................................................................................................. 9
2.1.1 An overview of project and project management .................................................................. 9
2.1.2 Project performance ............................................................................................................ 10
2.1.3 Definition of Project delay .................................................................................................. 10
2.1.4 Delay in Construction Industry ........................................................................................... 12
2.1.5 Types of delay .................................................................................................................... 12
2.1.6 Cause of Delay in Construction .......................................................................................... 14
2.2 Theoretical Review ................................................................................................................. 20
2.2.1 Effect of Delay in Construction .......................................................................................... 20
2.3 Empirical literature review ......................................................................................................... 23
2.4 Research Gap .............................................................................................................................. 25
2.5 Conceptual Framework ............................................................................................................... 26
CHAPTER THREE .................................................................................................................................... 27
RESEARCH DESIGN AND METHODOLOGY ...................................................................................... 27
3. Introduction .................................................................................................................................... 27
3.1 Description of the study organization ......................................................................................... 27
3.2 Research Design and Approach .................................................................................................. 27
3.3 Population of the Study .............................................................................................................. 28
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 3.4 Sampling Technique and sample size determination .................................................................. 28
3.5 Tools for Data Collection ........................................................................................................... 29
3.6 Data Analysis Method ................................................................................................................ 29
3.7 Reliability and Validity ............................................................................................................... 30
3.8 Ethical consideration .................................................................................................................. 31
DATA PRESENTATION, ANALYSIS, AND INTERPRETATION ........................................................ 32
4. Introduction .................................................................................................................................... 32
4.1 Response rate .............................................................................................................................. 32
4.1.1 Respondents‟ profile ........................................................................................................... 32
4.2 Descriptive Analysis ................................................................................................................... 36
4.2.1 Owner related factors .......................................................................................................... 36
4.2.2 Client related factors ........................................................................................................... 38
4.2.3 Consultant related factors ................................................................................................... 39
4.2.4 Contractor related factors .................................................................................................... 40
4.2.5 External related factors ....................................................................................................... 42
4.2.6 Effect of project implementation ........................................................................................ 44
4.3 Regression analysis ..................................................................................................................... 46
4.3.1 Classical linear Regression Model (CLRM) Assumptions .................................................. 46
4.3.2 Correlation analysis ............................................................................................................ 49
4.3.3 Analysis of Variance ........................................................................................................... 52
4.3.4 Regression Result ............................................................................................................... 53
CHAPTER FIVE ........................................................................................................................................ 55
SUMMARY OF MAJOR FINDINGS, CONCLUSION, AND RECOMMENDATIONS ......................... 55
5. Introduction .................................................................................................................................... 55
5.1 Summary of major findings ........................................................................................................ 55
5.2 Conclusion .................................................................................................................................. 57
5.3 Recommendations ...................................................................................................................... 58
Reference ................................................................................................................................................... 59
Appendix .................................................................................................................................................... 62

2
 Abbreviations
EIA…………………………………………………………Ethiopian Investment Agency

UN………………………………………………………….United Nation

3
 ABSTRACT
The purpose of this study was to assess the causes and consequence of delay in construction
projects of private real estate and its effect on project implementation in the case of Noah real
estate, Figa site. It is not known how and to what extent the construction of the project houses is
not completed all agreed project budget and time. This research used both primary and
secondary data and also involved quantitative research design. In light of these objectives, the
study employed descriptive statistics. The target population of the study selected a sample of 92
individuals from 120 populations, the researcher was distributed structured survey
questionnaires to clients, consultants, contractors, and those who are working in Noah real
estate, Figa site project. The questionnaire had a list of delay causing factors of which the
respondents were asked to rank each according to the 5 point Likert scale. Based on the research
findings the following result were identified. late payment and order changes, inadequate
planning and wrong budget estimation, improper planning and schedule, Inadequate experience
and skills of contractors, bureaucracy and policy changes, inflation of material prices, material
shortages, utility unavailability, and others. In addition, the top major effects of delay in the
construction of real estates were time overrun, cost overrun, dispute, litigation, total
abandonment and arbitration. The correlation analysis result indicated that client, contractor,
consultant related causes of delay have a positive relationship with effect of delay in construction
project. The findings suggested that Noah real estate should improve owners prioritize timely
payments to contractors and minimize changes in project order clients should invest in
comprehensive project contractors, prioritize investing in professional development and training
to enhance their skills and knowledge, engage experienced professionals for budget estimation,
and ensure sufficient resources are allocated, consultants should focus on meticulous project
planning, including realistic scheduling and efficient resource allocation, stakeholders should to
conduct thorough risk assessments, develop contingency plans, and establish robust supply chain
management systems.

Keywords: Construction delay, the effect of delay, consultants, clients, contractors, and owner

4
 CHAPTER ONE

INTRODUCTION
1.1 Background of the study
The construction industry plays a vital role in any developing country. This is mainly because
developing countries are considerably dependent on the growth and development of their physical
infrastructures and because the linkage of the construction industry to both economic and social
sectors is very significant.

Ethiopia‟s construction sector is one of the most robust in Africa. Conditions are ripe for a surge
in buildings across the country. The updating and building of new infrastructure links, residential
developments, and so on are of considerable interest to the Ethiopian Government.

The construction industry has complexity in its nature because it contains many parties as clients,
contractors, consultants, stakeholders, shareholders, and regulators (Kikwasi, 2012). Particularly
in construction, there is a long history of project management and standard systems have been set
up which have become comfortable but have not always produced the best value for the client
(Fewings, 2005). Most construction projects usually suffer delays and surpass the outlined
contract sum (World Bank, 2014). The result of such overrun can at the time lead to the
abandonment of a project. Ideally, projects are supposed to run continuously without delays, and
the responsibilities to keep this in check lie squarely with the project manager and other
stakeholders who are linked directly with the projects (Oyewobi, et al. 2011). In the same view,
ensuring that the project is delivered on time is one of the most significant needs of the clients in
the construction industry (Latham, 1994). Moreover, the completion of projects within the
estimated time is an indicator of how efficient the construction industry. (Nedo, 1988).

The housing problem in developing countries is increasing significantly. The main reason for this
is urbanization. The impact of rapid population growth on housing development in a developing
economy is usually a consequence of the push of the rural areas and the pull of the town.
According to, A market insights report by ITE build and Interiors report, Ethiopia faces the
challenge of not being able to supply sufficient new affordable housing and upgrade the existing
stock to meet the demand required annually. As a result of the limited access to decent and
affordable housing, informal settlements have increased in the main city. The housing deficit can
perhaps be best exemplified by the capital. A 2013 UN report suggested that Addis Ababa needed
at least 300,000 new homes to meet demand. However, with the city expanding at a rate of 3.8%
per year, in terms of both wealth and population, more and more housing units are needed.
5
Sustained high urbanization and population rates derived from extra pressure on already failing
and deteriorated urban infrastructure, services, and housing stock. In response to this challenge,
private investors were attracted to the industry to build and provide different residential homes.
Following this, timely delivery or transfer of a house is a big challenge and takes a longer period
than the planned time. Construction delay in the private real estate industry is a major challenge.

Therefore, this study is focused on Noah real estate construction projects, which assessed the
delay, causes and examines the effects on the project and provide recommendation on how can
minimize the deliances factors based on the findings to improve project performance and
completion of the projects at a reasonable cost and time.

1.2 Statement of the problem

Construction delay is considered as one of the most recurring problems in the construction
industry and it often adversely affects the project's success in terms of time, cost, and quality. The
effects of delay are costly to all parties concerned and very often it will result in disagreement,
cost overrun, litigation, arbitration, total abandonment, and lack of trust in the society and project
performance.

The housing problem is one of the key problems facing Addis Ababa; the housing stock is by far
inadequate in quantity and quality to meet the need of the residents (UN HABITANT, 2010). The
housing deficit is set to increase concurrently with the foreseen high population and urbanization
growth. In reaction to this challenge, private investors are entering into the industry. According to
EIA data, there are about 100 private real estate companies that are involved in the business.
Although the number of private investors is increasing recently, the gap between demand and
supply of completed residential house remain the same with all its negative images and
complaints.

As the housing problem is one of the biggest social and political issues for any level of income
group, most of the city‟s residents live in the shelter with families due to homelessness and rent
private houses even if they can afford to buy a house.

According to the study by Nesru Dusso, (2020). Construction projects have been increasingly
growing in Ethiopia. However, few studies were conducted at the country and project levels that
provide reliable evidence about the successes and challenges of the implementation. As per the
researcher's awareness, there is no research conducted in the study area. The statistical abstract

6
document of GZFED (2009 E.C) showed that only 15% of the project were completed based on
the agreed schedule. So, delays in construction projects are a critical and serious problem in
Ethiopia.

For instance, initially, Noah real estate, Figa site project was launched to be constructed and hand
overed within 3 years. However, it took five years to complete and hand over to the house
owners. Due to this, people are forced into unnecessary extra costs and undesirable living
conditions. This will lead to people's dissatisfaction with the real estate project implementation.
Therefore, housing projects have an impact on personal, socioeconomic as well as political
conditions. As a result, it is necessary to assess the actual causes of the housing construction
delay and its effect on Noah real estate project implementation to minimize the delays and their
corresponding costs and time. On top of that, this study will be very useful in providing
information for the owner of the business for the improvement of project implementation.

1.3 Project Research Question

The research questions for the study are the following:

1. What are the main causes of delay related with the real estate owners, contractors, and
clients?

2. What does the effects of delay on Noah real estate project implementation?

1.4 Objectives of the study

1.4.1 General Objectives of the study

This research aims to identify and assess the main causes of delay and its effect on construction
projects of private real estate, specifically Noah real estate.

1.4.2 Specific objectives of the study

Deriving from the above research questions, the research has the following specific objectives.

 To identify the major cause of delays related with the real estate owners, contractors, and
clients.

 To explain the effects of delay in the Noah real estate construction project
implementation.
7
1.5 Significance of the study

The findings of this research improved our understanding of the factors that cause to
implementation delays in the Noah real estate project. Noah Real Estate could be able to complete
projects more competently and effectively in the coming future. This made it easier for the
project to achieve its objective. Additionally, this research might offer a solution for related
projects that are now being worked on around the country. It might also serve as a starting point
for additional inquiry by other curious researchers. Apart from that, this study is anticipated to
reduce the main reasons for delays to provide better strategies and methods for timely delivering
construction projects.

1.6 Scope of the study

It is important to know that the findings of this research cannot be generalized due to its limited
scope. The study is limited to cause and consequence of delay in construction project only at
Noah rela estate. As far as the limitation is concerned many constraints can have an impact on the
quality of the study. Most of the constraints will arise from the case of the targeted population or
respondents are filled the questionnaires carelessly.

1.7 Limitation of the study

This research reviews some of the causes of delays in Noah real estate and the effects of these
delays on project achievements. Therefore, the research did not cover the quality of the housing
project. Again the study may also focus only on the causes and effects of delays by project parties
owners, contractors, consultants and clients.

1.8 Organization of the study

The research paper is organized into five chapters. Accordingly: Chapter one deals with the
background of the study, the statement of the problem, the research question, the objective of the
study, the significance of the study, and the scope and limitation of the study. In chapter two both
theoretical and empirical literature have been reviewed and the findings of some related studies
conducted in the area are presented The third chapter was concerned with the methodology used
for the study. In the fourth chapter presentation of data and interpretation will be presented. In the
final fifth chapter summary of findings, conclusions, and recommendations are for future studies
would have been addressed.

8
 CHAPTER TWO

REVIEW OF LITERATURE
Introduction
Based on the research objectives identified in the earlier chapter, this chapter the previous studies
and the research done in the field of project management by identifying the factors affecting
delays in the construction industry and its effect on project implementation is summarized and
reviewed.

2.1 Concept and Definition

2.1.1 An overview of project and project management
According to Kerzner (2009) the term project can be considered to be any series of activities and
tasks that have a specific objective to be completed within certain specifications, have defined
start and end dates, have funding limits (if applicable), consume human and nonhuman resources
(i.e., money, people, equipment), are multifunctional (i.e., cut across several functional lines)
Project, was also defined as collection of linked activities carried out in an organized manner with
clearly defined start point and finish point, to achieve some specific results that satisfy the needs
of an organization as derived from the organization‟s current business plans (Trevor L. 2007).
This is what clearly entails a project; it‟s a unique undertaking, with defined beginning, ending
and allocated resources, aiming to bring about change in an organization for the better result.
Kerzner (2009) Successful project management can then be defined as having achieved the
project objectives, within time, within cost, at the desired performance/technology level, wile
utilizing the assigned resources effectively and efficiently, accepted by the customer if a project
is defined in such a way, project management is then the application of knowledge skills, tools
and skills techniques to project activities to meet project requirements. This is accomplished
through the use of initiation, planning, execution, monitoring and controlling, and closure process
(PMI, 2013). In the study of Westland j. (2006) Project Management was defined and briefly
explained as the skills, tools and management processes required to undertake a project
successfully. These skills, tools and processes are three components that are required to set up a
project keep it on track and close it successfully. The roles of the three components are identified
as follows Special knowledge, skills and experience are required to reduce the level of risk and
increase the likelihood of success of a project. Tools are used by project management (PMs) to
improve the chance of success. Examples are checklists, specific software, templates etc. Various
processes and techniques are used to monitor and control time, cost, quality and scope of projects.
Therefore Project manager should improve its skills, tools and processes in order to improve the
9
success rate of a project, these project management‟s skills, tools and processes are used to
manage an every project, this is accomplished through the use of initiation, planning, execution,
monitoring and controlling and closure process. On the other hand, Kerzner (2009) this Project
management process as identified as the Guide, namely:-Project initiation, Project planning,
Project execution, Project monitoring and control and Project closure.

These processes (the five life cycles) have been organized into ten knowledge areas; these are
Project Integration Management, Project Scope Management, Project Time Management, Project
Quality Management, Project Human Resource Management, Project Communications
Management, Project Risk Management, Project Procurement Management and Project
Stakeholder Management (PMI, 2013). These ten knowledge areas are applicable to every project
management and identified these ten knowledge areas that a project manager must be familiar
with for a successful implementation of a project work (PMI, 2000). Project is typically of shorter
duration and more risky than any business, so projects will be paying attention on the formation
of a set of deliverables within agreed cost, time and quality parameters. The vital goal of a PMs is
to recognize output and returns of strategic consequence, to achieve this a project is designed as a
temporary flexible organization structure created to coordinate, direct and oversee the
implementation of a set of related projects and activities in order to deliver output and returns
related to the organization‟s strategic points. Project usually requires the dedication and active
participation of more than one organization to achieve the desired output. A project delivers, or
enables one or more profits i.e. measurable result from an output and perceived as an advantage
by one or more stakeholders

2.1.2 Project performance

2.1.3 Definition of Project delay
A project Delay is an unplanned and unexpected deferment of a project because of some event or
occurrence that impedes the project‟s commencement or continuation. It is the length of time that
extends the project duration and causes a disruption in the delivery of project goals and
objectives.

Project delays are often caused by circumstances that create barriers to the launch and further
implementation of project activities. Rarely a delay can be caused by a request of the customer,
sponsor, or other stakeholders to have enough authority on their project.

When project delays are unexpected, they are uncontrollable and have rather a negative impact on
project activities and results. An unexpected delay extends the overall duration of project

10
activities and entails an increase in project costs. It generates time-associated cost effects that
increase resource consumption and require more time for reaching project success.

To prevent the negative impact of project delays, it is reasonable to establish a delay allowance at
the very beginning of a project. Delay allowance is the length of time included in the project
schedule in advance to cover unpredictable contingencies and expected minor delays. It is a
mechanism for increasing project safety by preventing activity disruptions and creating time
buffers.

Ijariie-Issn, (2019), delay in government construction projects, especially in the road sector, has
had a significant impact on economic activities in the country. Several road construction projects
have littered the length and breadth of the country for which the government has commenced that
have yet to be completed. Unfortunately, the timeline for these projects is unknown to the citizens
of the country. This has led to an increased number of uncompleted road construction projects by
the government and has further compounded the woes of Kurdistan Region‟s Citizens. The cost
of a construction project is one of the most important factors in the construction industry. Due to
many reasons, the total cost of a project can significantly vary from the initial estimated cost. The
reasons could be changes in the scope of work, specifications, or any other contract documents. In
the construction industry, variation orders are created when changes occur. It is an official
document that states the changes made to the original agreement between the client and the
contractor. When a variation order is created, it brings several negative effects to both the client
and the contractor. The construction industry is the tool through which a society achieves its goals
of urban and rural development. It is one of the sectors that provide important ingredients for the
development of an economy. The construction industry tends to fluctuate with the general
economy, and it has a quick response to changes in the economy.

According to Chitkara, the construction industry in many countries accounts for 9 % of the Gross
Domestic Product (GDP). However, it is becoming more complex because of the sophistication of
the construction process itself and the large number of parties involved in the construction
process Delay has been defined severally by many researchers oftentimes with some bias towards
the central theme of their research work. That notwithstanding, some definitions explain the
concept of delays with precision. There are several definitions for a delay: To make something
happen later than expected; to cause something to be performed later than planned; or to not act
timely each of these definitions can be described as a delay to an activity of work in a schedule.
On construction projects, as well as on projects where a schedule is being used to plan work, it is
not uncommon for delays to occur.
11
 2.1.4 Delay in Construction Industry

According to Assaf and Al-hejii (2006) delay refers to making something happen later than
expected or not acting timely. In another study, Mohammed (2012) defined a delay in
construction projects as the late in progress or actual completion of work compared to the
baseline construction schedule or contract schedule.

Ab. Rahman (2018), delay in the construction industry is a worldwide phenomenon. Delay occurs
in most construction projects, regardless of the project's complexity. In construction projects,
delay can be defined as the extension of time in the completion of a project. In other words, the
delay means failure to complete the project within the targeted time and budgeted cost as agreed
in the contract. Construction delay is considered one of the most recurring problems in the
construction industry and it often adversely affects project success in terms of time, cost, and
quality. In most cases, the failure of the project is mainly related to the influence of consultants,
contractors, and owners on project performance. The effects of delays are costly to all parties
concerned and very often will result in disagreement, cost overrun, arbitration, litigation, total
abandonment, and project infeasibility. Construction is a risky industry with uncertainties due to
various external and internal factors that influence the construction process.

The definitions of delay provided above can generally be characterized as time extension, slowing
down of a project, beyond the agreed project period, and late in progress over its anticipated
timetable compared to the baseline.

2.1.5 Types of delay

Delays generally fall into four categories. Delay is considered a major cause of construction
claims. The four types of delay namely: excusable, non-excusable, delay compensable &
concurrent delays.

Excusable delays: Excusable delays are those not attributable to the contractor's actions or
inactions, and typically include unforeseen events. It allows the contractor to obtain a time
extension to complete the contract without being penalized. However, this type of delay normally
does not entitle the contractor to any damages caused by the delay. The examples of excusable
delays to a contractor's action are differing site conditions, design problems, changes to the work,
inclement weather, and strikes. This type of clause sometimes called a "force majeure" clause,
12
lists excusable delays. As this list implies, when unanticipated outside 'forces delay the
completion of the contractor's work, the delay is generally considered excusable.

Non-Excusable Delays: Examples of excusable delays to a contractor's action are differing site
conditions, design problems, changes to the work, inclement weather, and strikes. This type of
clause sometimes called a "force majeure" clause, lists excusable delays. As this list implies,
when unanticipated outside 'forces delay the completion of the contractor's work, the delay is
generally considered excusable. This type of delay presents no entitlement to a time extension or
delay damages for the contractor if the delay can be proved to have affected the whole project.
The owner however could be the liquidator of the damages. For instance, a non-excusable delay
would be when a contractor fails to provide sufficient manpower to complete the job on time. The
client can claim their loss if had in the contract agreement. The factor that contributes to the non-
excusable delay: are the usual weather and as expected, delay caused by the subcontractor, the
inefficiency of the contractor to manage the construction site, the finances of the contractor, the
lack of labor, failure to manage their work according to the contract schedule, Always make
mistake or fail to fulfill owner's specification

Compensable Delays: Basically, the compensable delay is when the contractor will receive
payment due to the additional cost of delay and as well as the addition to a time extension for
contract performance if there is any change in scope of work, late supply of owner materials or
information, impeded site access, differing site conditions and failure to provide timely and
review shop drawings. Furthermore, this type of delay is for which the innocent party is entitled
to both a time extension and additional compensation for the resulting costs.

Concurrent Delay: Alkass said that concurrent delays refer to delay situations when two or more
delays occur at the same time or overlap to some degree. For example, if an owner denies access
to a project site for two weeks, and a severe storm prevents the contractor from working on the
project for one of those two weeks as well, there will be a concurrent delay of one week. The
contractor will be able to recover for delay damages for one week, as a severe storm is not a cause
of delay that is compensable and would have prevented the contractor from performing even if
the owner did not deny access to the site. However, if there are two concurrent causes of delay,
one of which is a relevant event, and the other is not, then the contractor is entitled to an
extension of time for the period of delay caused by the relevant event notwithstanding the
concurrent effect of the other event.

13
 2.1.6 Cause of Delay in Construction

A large number of delay factors may lead to project delays in construction projects, arising from
different parties and resources. These delay factors are countless since each construction project
has its characteristics and environment. Efforts have therefore been made by many researchers to
identify the most significant factors of delay related to the owner, contractor, consultant, client,
and other external factors in construction projects, which are discussed in the next section.

2.1.6.2 Factors related to the owner

The owner of the project is the party that owns, manages, and funds the project; the owner assigns
either a firm or individual representing him to oversee the implementation of one phase or more
of the phases of the project. Owner representatives take the responsibility of critical decision-
making on the project and choose other parties such as consultants and contractors to implement
the project. "The owner is responsible for setting the operational criteria for the completed
Project, owner is also responsible for setting parameters on total cost, payment of costs, major
milestones, and the project completion date.

One of the most crucial decisions that owners need to take at the beginning of the project is to
determine the duration of the contract. Many owners prefer fast completion of work but thorough
investigations should be conducted to decide the contract duration. Another major factor that
delays the initialization of the project is the owner‟s failure to hand over the site to the contractor.
Therefore, the personal involvement and quick decision-making on various matters by the owner
in the initial phases of the project may accelerate the project‟s progress.

Kimmons & Loweree (1989) observed that “the working relationship between an owner and a
contractor is one of the most crucial determinants of project success and this relationship also
develops trust between the two parties”. The owner must participate in the construction project
horizontally and vertically, but without interrupting the contractor‟s project plan. In addition,
financial matters should also be taken into account, and the owner must ensure the on-time
availability of funds; lack of financial stability may cause many problems, such as extensive
delays due to labor strikes or material mismanagement Chan & Kumaraswamy (1997).

Odeh and Battaineh (2002), many owner-related delay factors have been identified are delay in
furnishing and delivering the site to the contractor, unrealistic contract duration, delay in the
settlement of contractor claims by the owner, suspension of work by the owner's organization,
14
delay in issuing of change orders by the owner, slow decision-making by the owner's
organization, interference by the owner in the construction operations, uncooperative owner with
the contractor complicating contract administration, delay in progress payments by the owner, the
owner ‟s poor communication with the construction parties and government authorities, the
owner ‟s failure to coordinate with government authorities during the planning, poor coordination
by the owner with the various parties during construction, excessive bureaucracy in the owner‟s
administration

2.1.6.3 Factors related to contractor

When a construction firm is involved in a big construction project, a contractor is generally
appointed for carrying out the construction work. Contractor Related Delay Factors type was
recognized as one of the groups of causes of schedule delays of construction projects. Some
factors of contractor related delay in construction projects are discussed as follows. IRJET, (2016)

Ineffective project planning and scheduling

This delay factor consists of Project planning and scheduling which are not capable of performing
efficiently or as expected. Inaccurate time and cost estimation of project may the most serious
cause of delay. Construction estimating errors can be very expensive and embarrassing. Normally
the contractor do not permit time for certain common problem constantly occur during the
construction time such as missing deliveries of supplies, breakdown of equipment, accidents and
emergencies and so on. Due to this problem the real time will run out from the planned time. So,
the complete project might be facing the delay. Similarly, Mistaken in cost estimate contributes a
lot of reason such as using improper units of mistakes in arithmetic. Sometime contractor because
of wrong cost estimate, measurement for a second time for that specific work. Finally, due to re-
measurement time some of the construction work will influence delay. Hence, the contractor
should estimate all the problems in planning and scheduling which may occur during the
execution of work and consider extra time to prevent delay.

Lack of experience of contractor

Abd Majid and McCaffer (1998) deliberate the factors of Lack of experience of the contractor as
main causes of delays. Battaineh (2002) found the factors of Lack of experience of the contractor
as main contributors to causes of delays. Long, et al. (2004) declared the factors of Lack of
experience of contractor as key sources to causes of delays in construction project. In the
construction trade, several of projects facing a problem of delay during the construction period.
But at that time contractor could not able to resolve the problem instantaneously because of not
15
any experience. During the time in which the contractor discovering the technique to resolve the
problem, certain works fully stopped because of this problem. The contractor should have
sufficient working capital and higher efficient equipments for work and also capable in resolving
problems on site. Before hiring the contractor for the project, background of the contractor should
be checked.

Frequent change of subcontractors

When a construction firm is involved in a big construction project, a contractor is generally

appointed for carrying out the construction work. The contractor, however, hardly does whole the
work. The work that leftovers is implemented by subcontractors, who are under contract to the
contractor, who is generally selected the prime contractor. Subcontractors may appoint their
personal subcontractors to do portion of the work that they have contracted to carry out.
Subcontractors sign agreements with the contractor that normally integrate the contract among the
contractor and the owner. A subcontractor who unsuccessful in finish work on time or whose
work is not satisfactory under the contract may be mandatory to pay compensations if the project
is late because of these reasons. If the subcontractors changes in the course of the work by the
contractors or subcontractor itself due to these problems. Then delay in the project occurs because
the new subcontractor have no or say very little knowledge about that project and they start to
understand the whole project from beginning which consume time and have chances of mistake.
So that changing of subcontractor between the project task should be neglected and if it is
necessary than contractor should be arranged regular meetings with the new subcontractor for
providing full and correct knowledge of the project.

Obsolete technology

Structures are constructed from long ago in past but the difference is of technology as early
structures were simple and just for the purpose of housing. With the time, innovatory
modifications have seemed in construction also and it is all because of the technology that can be
well-defined as real use of your knowledge. In the starting, houses were prepared from stones and
mud, but in modern time, we build buildings using several kinds of materials such as stone, glass,
concrete, timber, metals, etc.

Construction business contains a wide variety of constructions fit for all classes of people.
Domestic construction, heavy or civil constructions, industrial construction, commercial
construction are some examples that are now showing master pieces of construction technologies.
For each of these needs different technical treatments. For domestic construction, simple
16
technological ways are generally chosen and commonly available materials are normally used.
These are generally low cost projects and as well short-term. In commercial construction, the
basic concern is infrastructure that is responsible for strength, workability and life of project.
These are commonly launched by government organizations. These projects necessitate newest
construction technologies, tools, and materials. Latest techniques of doing construction work are
more effective than older techniques. Hence the use of old technique will slow down the speed of
work in construction projects. For reducing such type of delay, latest technology equipment and
materials should be preferred for work.

Inappropriate Construction Methods

Construction is the process of build structure to real property. So many individual activities
perform in single construction project. Every activity have many different type of methods or
techniques for executing the work. As efficiency codes have arisen into result in current years,
new construction methods and technologies have developed. Construction Management sectors
are on the cutting edge of the modern approaches of construction proposed to improve
performance, efficiency and lessen construction waste. Sometimes contractor chooses the
inadequate method for performing any task in construction which not right and not suited for that
work. This may normally happen due to lack of experience or misunderstandings of contractors.
In this situation, this factor contributes to cause of delay as well as loss of money. For reducing
these delays, proper study of the project should be done by the contractor before selecting any
method and check suitability of method for that particular work from old projects.

Rework due to errors

Rework is well-defined as work measures that have to be finished more than one time. A
researcher described rework as the “unnecessary process of repeating a work activity that was
wrongly carried out the first time”. One more definition which highlights the essence of rework is
“effort that is made to follow to the original requirements by correction at least one more time due
to nonconformance with desires.” Rework is not usually defined to contain missing possibility of
work modifications and change orders carried by end owners, which are not essentially
considered nonconformance. Rather alterations such as these instead stem from a desire to change
due to financial plan limitations or other unrelated situations. In large complex surroundings that
contains multiple stages of jobs, dealers and installers, and where lots of activities take place at
the same time, the possibility for omissions, mistakes and poor management practices frequently
cause neglect that can lead to failures in quality, which must then be reworked. Rework may

17
cause time overrun and cost overrun if it is done frequently. So it should be avoided during
construction. For this every step of work should be check by inspector engineer.

2.1.6.4 Factors related to Consultant

The client may consult with other professionals who can assist him in organizing the entire
construction project. These professionals are called consultants. The main duties and
responsibilities of a consultant may be to design the infrastructure of the project, which includes
architectural, mechanical, structural, and electrical designs. Some other responsibilities may
include the preparation of project-related documents such as bills, drawings, specifications, and
tender documents (Long et al, 2004). Furthermore, in some cases, consultants also conduct
project planning, cost control and estimation, and quality control. In normal circumstances,
consultant-related delays occur during the preparation of drawings, during the adoption of design
drawings, while taking design approvals from contractors and clients, and when performing
inspection procedures. There are many possible reasons behind these types of delays; prominent
factors include inexperienced consultancy staff, poor qualifications, inadequate communication
and coordination skills, and improper planning, Gunlana and Krit, (1996). Odeh & Battaineh
(2002) believe that during the construction processes, the inquiries and inspections of the
consultant may slow down the progress of the work. In response, the contractor may come up
with solutions to the problems; however, these solutions may not satisfy the consultant and could
result in the work having to be redone. Effective control and command over production on the
construction site is a major element that contributes to the success of implementing the project;
conversely, hindrances in performing these activities can have severe impacts on a construction
project. The following points are consultant-related factors that can result in construction delays.
Odeh and Battaineh, (2002) poor qualification of consultant engineers staff assigned to the
project, delay in the preparation of drawings, delay in the approval of contractor submissions by
the consultant, poor communication between the consultant engineer and other parties involved,
poor planning and coordination by the consultant engineer with other parties involved, delays in
performing inspection and testing by the consultant engineer, slow response from the consultant
engineer to contractor inquiries, inadequate design specifications and poor contract management.

2.1.6.5 Factors related to Clients

There are many factors related to clients that affect the project delay.

Insufficient funding: Funds are not adequately released during relevant phases of project‟
execution, Milestones payments are not made on time due to organizational lapses or
18
bureaucracy; Inadequate cash flow leads to delays in delivery of materials and equipment to the
site and delay in payment to contractors and consultants.

Impractical allocation of resources: Funds, manpower‟s, materials, and equipment are

inadequate to complete the project because project owners or clients have not properly assessed
whether they have the required resources to complete projects

Poor quality materials supply: Poor quality materials lead to poor quality workmanship, thus an
unacceptable product. Most often, the project owners insist that corrections be made or that parts
of work be completely scrapped and reworked.

Lack of adequate communication between the parties: Poor or inadequate communication

between parties leads to misunderstanding and misrepresentation of facts. This could breed
conflicts and consequently hinders the smooth progress of activities.

Major disputes & negotiations: Major disputes and negotiations between parties in the project
impede the progress of work as aggrieved parties wait until grievances are resolved before they
continue.

Wrong organizational structure linking to the project: Organizational structures affect project
performance. Certain projects cannot be managed by certain types of organizational structures.
For instance, it is difficult to execute quick-impact projects in a functional organizational
structure because of the slow decision-making processes and bureaucracies associated with such a
structure.

Unrealistic contract duration: This could be caused by the wrong packaging of the contract
document, and unprofessional/inexperienced client‟s staff. Where the stated completion duration
is impracticable, the responsibility lies on the stakeholders to review the initial expected
completion time and make amendments where necessary.

Slow decision-making: Clients are the Project Owners. When they do not make decisions on
time regarding project matters, they slow down activities at the project sites. Slow decision-
making could be caused by an organization‟s internal bureaucracy or wrong channels of
communication.

Wrong choice of Consultants & contractors: Clients select Consultants and Contractors as
their vendors. If the selection process is faulty, unqualified vendors will be engaged. This could
lead to faulty works and frequent rework and delay in project completion and cost overrun.

19
 2.1.6.6 External factors
Some factors are outside the control of construction participants. For instance, the weather
conditions in Libya in the summer are very hot, and the temperature normally exceeds 40 degrees
Celsius. On the other hand, the weather conditions in the United Kingdom are worst in the winter
season, when the temperature can typically fall to -5 or - 8. In such intense conditions, contractors
may face many difficulties that normally result in either a slowdown of the construction process
or, sometimes, a complete stoppage of work. These difficulties may include disruption to utility
lines such as gas, electricity, or water. Ogunlana and Krit (1996) mentioned that social and
cultural festivals and celebrations may also affect the time it takes labor to reach the job site,
negatively affecting the productivity of the construction project and potentially resulting in minor
delays. These external factors may also create clashes or disputes between the construction
participants, which will further increase the product cost and duration Odeh and Battaineh,
(2002). Unforeseen ground conditions, unexpected geological conditions, problems with
neighbors, unusually severe weather, conflict, war, and public enemy, poor weather conditions on
the job site, traffic control and restrictions on the job site, rises in the price of materials

2.2 Theoretical Review

2.2.1 Effect of Delay in Construction
A project might be affected by a variety of effects as a result of construction delays, including
delayed completion, lost productivity, acceleration, consequential damages, increased cost, and
contract termination. When projects are delayed, they either have its timeline accelerated or
extended past the original completion date. Multiple studies have studied the issue of delay, and
they determined that it is always negative.

The impact or consequences of delay in project completion is termed the effect of project delay.
The effect of delay is a change or impact due to delay Sunjka and Jacob, (2013).

A study by Aibinu and Jagboro (2002) reveals six effects of delay on project delivery in the
Nigerian

construction industry which are: time overrun, cost overrun, dispute, arbitration, total
abandonment, and litigation.

20
Hamzah et al. (2011) disclose the same effects of delay in the Malaysian construction industry.
Yahyaet al. (2013) identifies the effects of delays in the Pakistan construction industry as clash,
claims, total desertion, and slowing down the growth of the construction sector. The desire to
finish a project on time, under the planned budget, and with the highest quality is a common goal
for all contracting parties, including the owner, contractor, and consultant. Delays usually result
in losses of one form or another for everyone Murali, Sambasivan, and Yau, (2007).

The six effects of delay identified were: time overruns cost overrun, dispute, arbitration, litigation

, and abandonment.

Fig. 2.1 Effects of delay in construction project

2.2.2 Effects of construction delays on project time overrun

Time overrun is one of the serious challenges construction projects face and it is the source of
many problems in the construction industry. Delay in projects results in an increase in the
financial cost of projects, wastage and underutilization of human resources and materials,
disagreement among contracting parties, abandonment of projects, and poor quality in completed
works pointed out that project delay leads to adverse consequences on the construction industry
21
and the economy at large. These include time overrun, increase in cost overrun, wastage and
reduction in labor efficiency, tying down of clients‟ capital, the dispute between parties, profit
loss, litigation or arbitration, unanticipated costs, demoralizing practitioners, slow development of
the construction industry, environmental and safety issues, and public dissatisfaction. Above all,
it impairs economic growth and devalues the efforts of innovators and experts in the construction
industry. When the stipulated completion time is pushed forward, the project is said to have
experienced a time overrun.

2.2.3 Effects of construction delays on project cost overrun

Cost is the common factor of any construction project. However, cost overrun is one of the most
occurring risks in construction projects and the most severe in developing countries, where these
overruns sometimes exceed 100% of the estimated budget (Memon, et al., 2010). Construction
cost which is out of control adds investment pressure, increases construction cost, and affects
investment decision-making. Hence, it is important to identify the factors that contribute to cost
overrun to avoid and reduce the problems (Ali, & Kamaruzzaman, 2010). This part of the thesis
focuses on theoretical approaches to examine the approaches and techniques as tools for public
building construction. Additionally, related studies, a review of books, a thesis, standards, and
relevant guidelines are reviewed. A project is a sequence of unique, complex, and connected
activities that have one goal or purpose and that must be completed by a specific time, within
budget, and according to specification. Project management is an organized commonsense
approach that utilizes the appropriate client involvement to meet sponsor needs and deliver
expected incremental business value. Projects arise out of unmet needs. Those needs might be to
find a solution to a critical business problem that has evaded any prior attempts at finding a
solution Wysocki, (2014).When a project is completed at a cost higher than what was budgeted, it
is said to experience a budget overrun or cost overrun.

2.2.4 Effects of construction delays on project disputes:

Client-related factors, external factors, and contractual relationships that arise during a project.
Delayed interim payments, owner interference, change requirements, improper management
information system, etc. create disputes which in turn can lead to arbitration or litigation.

2.2.5 Effects of construction delays on project arbitration:

Client-related and contractual relationship-related factors which creates disputes lead to
settlement by arbitration, which involves a third party settling issue out of court.

22
 2.2.6 Effects of construction delays on project litigation:
Client-related, labor-related, contractual relationship-related factors and external factors lead to
disputes which are not even solved by arbitration leading to litigation. Litigation is the last way to
settle disputes.

2.2.7 Effects of construction delays on project total abandonment:

Sometimes client-related, contractual relationship-related, consultant, resource-related, etc., any
cause which creates disputes and is unable to reach some result is abandoned.

2.3 Empirical literature review

Under this section, prior research conducted on the subject matter of this research will be assessed
and reviewed to affirm the facts and issues raised here as related literature.

Ramya et al., (2015) studied the delay factors and their impact on project completion in the
Malaysian construction industry. The study result indicated ten (10) most important causes of a
delay from a list of twenty-eight (28) different causes. The ten most important causes of delay
were (i) contractor „s improper planning (2) contractors' poor site management (3) incomplete (4)
client „s inadequate financial resources and payments for complemented work (5) problems with
subcontractors (6) shortage of material (7) labor supply (8) equipment availability and failure, (9)
Lack of communication between parties and (10) mistake during the construction stage.

Prakash and Joseph (2014) identified eight categories as leading to construction delays, six
factors that effects delays, and fifteen methods for mitigating construction delays in their analysis
of the causes of delays in construction projects. Late revision and acceptance of design plans,
delays in subcontractor operation, and inadequate contact and coordination change orders by the
owner during construction were the top three most significant reasons that led to the causes of
delays. Contractor-related delays were ranked as the most important cause of delays, followed by
client-related delays, and consultant-related delays. The top three important ways of reducing
construction delays have been identified: site control and monitoring, effective strategic planning,
and consistent knowledge and contact channels.

A study of delay analysis in a construction project (Dinakar, 2014), classified delay-causing

factors into seven major groups, these are owner contributed factors, contractor-contributed
factors, consultant-contributed factors, material-contributed factors, equipment-contributed
factors, labor-contributed factors, and external factors. The contribution of the Contractor in the
delay of the construction project is more than the client and consultant side. External causes, on
the other hand, have the least impact on building project delays. Improper communication

23
between the involved parties is found as the major problem while external reasons like lack of
qualified labor, equipment, and material when needed come next in the row.

The study carried out by Sunjka and Jacob (2013) revealed that the ten (10) most common causes
of project delays in the Niger Delta region in Nigeria include youth commotion, communal
catastrophes, lack of proper planning, poor contract management, late identification and
resolution of drawing and specification errors. Ibrahim (2006) worked on finding out the causes
of delay in construction projects and their severity according to contractors and consultants and
stated that cost, time, and quality have proven their importance as the main measures for
construction project success.

Aedwin and Shibi (2015) identified causes of delay related to owners, consultants, contractors,
Labour, Equipment, and external factors. Owner-related factors, according to their report, include
(slow decision-making, delay in delivering the site, payment delays, incorrect preparation and
scheduling, owner intervention, change of orders, interruption of operation, lack of
communication, late decision making, conflicts among partners); Consultant (Inadequate
experience, delay in approving drawings and samples, inadequate detailing and clarity in
drawings, quality assurance control, mistakes & discrepancies in design documents); Contractor
(delay in payment, delays in sub-contractor work, poor site management and supervision, rework
due to errors, inexperience, poor qualification of staff, in effective planning, frequent change of
subcontractor); Labour & Equipment (shortage of labour, low productivity level of labours, in-
experienced work force, delay in material delivery, shortage of materials, shortage of equipment,
equipment break down, low productivity & efficiency, poor operator skill, lack of
communication); and External factors (change in government, poor soil conditions regulations,
delay in obtaining permits, climatic factors, accidents during construction, delay in
commissioning).

Srdić et al (2015) studied the causes of delay in the construction industry of Slovenia. They
categorized the causes into 11 groups and conducted research. The results show that the causes of
most delays can be attributed to legal issues, slow decisions of the owner or his representative,
and design that lacks details important for the contractor. Many of the issues within these
categories appear at the very beginning of the project and can be mitigated (partially or fully) by
the owner; while their costs are far away from being excessive.

According to Ashraf and Ghanim (2016), the top ten factors causing delays for public sector
projects in Jordan are: (1) inadequate management and supervision by the contractor, (2) client

24
changes of the design, (3) inadequate planning and control by the contractor, (4) using lowest bid
that leads to low performance, (5) changes in the extent of the project, (6) errors in design and
contract documents, (7) progress payments are not made in time by the client, (8) Rework due to
mistakes during construction, (9) Changes in the original design and (10) Low-level productivity.

Many researchers have examined the main causes of construction delay in various types of
construction projects. In Malaysia, Aftab H. M. (2014) in his study Contractor perspective on
time overrun factors in Malaysian construction projects‟ concluded that the top ten most
significant causative factors contributing to construction time overrun are frequent design
changes; changes in the scope of the project; financial difficulties of the owner; delays in
decisions making; unforeseen ground condition; delay in progress payment by the owner;
shortage of site workers; mistakes and Errors in design; delay preparation and approval of
drawings; and incompetent subcontractors. Another study by Aftab et al., (2011) on their study
time overrun in construction projects from the perspective of Project Management Consultant
(PMC)„ in Malaysia: concluded that the major causes of time overrun by PMCs are cash flow,
and financial difficulties faced by contractors; contractor's poor site management; inadequate
contractor experience; shortage of site workers; ineffective planning and scheduling by
contractors; escalation of material prices; the practice of assigning the contract to the lowest
bidder; problems with subcontractors; and lack of communication among parties.

Muhammad, et al., (2017) in their study on Time Overrun in Public Sector Construction Projects
in Pakistan as an example of a developing country: summarized their findings based on an
average index of the topmost factors of time overrun in the form of non-excusable, non-
compensable and compensable delay found on construction industry site as follows.
NonExcusable Delay: (1) Delay in shop drawings and sample materials; (4) Suspension of work.
Non-Compensable Delay: (1) Fire (2) Natural changes in environment; (3) Wind; (4) Snowfall.
Compensable: (1) Poor site management and supervision by the contractor (2) Poor
communication and coordination by a contractor with other parties; (3) Delays in subcontractor‟s
work; (4) Delays in sub-contractors work.

2.4 Research Gap

There are many studies about causes and consequence of delay in project implementation private
real estate construction. However, there are few studies on causes and consequence of delay in
developing countries such as Ethiopia specifically in Addis Ababa City Administration.
Researchers investigated different factors that cause and consequence of delay in project
25
implementation in private real estate construction, from project initiation up to project close out.
When considering delay in context of private real estate construction projects there are additional
factors that cause and consequence of delay in real estate construction from different stakeholder
perspective. This research tends to address this issue and add a fresh contribution to the scant
literature that deals specifically with this question. The review of literature found few research
studies related to the analysis of delay factors in the private real estate construction. However, it
was also found that no studies to date have ranked the cause and consequence of delay in housing
construction projects. In addition, there were few studies carried out in relation to stakeholders‟
contribution for delay in construction of private real estate. Hence conducting study on causes of
delay in construction of private real estate from limited stakeholders‟ side will not give complete
solution to the problem.

2.5 Conceptual Framework

A construction project is successful when the work of the construction project is done by proper
planning and scheduling, under the budget and specified quality, under a specified time, and by
the satisfaction of the stakeholders. Delay has become one of the major problems in the
construction industry (Khattri, Agarwal, Gupta, & Pandey, 2016). Based on this, this section aims
to summarize the idea about past literature and to bring out the contributions for this study area.
Thus, this part starts with the idea generated and the contribution follows.

CAUSE EFFECT
PROJECT DELAY

 Owner  Cost overrun

 Client  Time overrun
 Consultant  Abandment
 Contractor  Quality
 External Factor
 Litigation

26
Fig. 2.2 Conceptual framework

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3. Introduction
This chapter discussed the methodology of the research topic about causes of delay and its effect
on private real estate, specific to Noah real estate. Mainly the chapter consists of the following
sections research design and approach followed by research population, sample size, data
gathering procedures, sampling procedure, research instrument, data analysis, and the method
conducted for the study.

3.1 Description of the study organization

Noah Real Estate PLC was established in 2013 G.C. and has since delivered 16 residential, 5
commercial, and 8 mixed-use mid to large-scale projects, with additional 10 projects under
development at various sites in Addis Ababa. Within this 10 years of experience, Noah has
constructed and is constructing a total of 29 projects.

Noah is a sister company of Great Abyssinia PLC, a renowned FMCG company with brands,
such as Abyssinia Coffee, Prigat, Tulip, and Aby soda drinks with various flavors. In a recent
prestigious deal, they are also partnered up with Nestlé in water bottling; a continuation of the
Abyssinia Springs brand.

This study is focused only Figa site project. Under Figa site project there are two projects which
are Noah Terrace and Noah Garden Apartment.

The parties were include in the survey is mainly engineers, managers, suppliers and accountants
representing clients, consultants and contractors in Noah real estate project office. All the
respondents were selected on the basis that they have experience in implementation of the
projects. A questionnaire survey were distributed to the targeted respondent in order to identify
the most important factors that cause delays and the common effect of delays.

Source: Company brochure

3.2 Research Design and Approach

The research design refers to the arrangement of collecting and analyzing data in a manner that
aims to combine relevance to the research purpose with the economy in the procedure (Babbie,
27
2007). The purpose of this study is particularly be intended to identify and assess the causes and
effects of construction project delay in private real estate, specifically Noah real estate. For this
objective descriptive survey design is used and adapted to provide descriptions concerning the
causes and effects of project delay.

A descriptive research design is a scientific method that involves observing and describing the
behavior of a subject without influencing it in any way. In addition, a descriptive study attempts
to describe a subject, often by creating a profile of a group of problems, people, or events,
through collections of data and the tabulation of frequencies on research valuables and the
research reveals who, what, when, where or how much (Serakan, 2010).

According to Dawson (2002) there are three types of research approaches, quantitative,
qualitative, and mixed approach. The purpose of quantitative research is to gather, analyze
and measure statistical data. To collect the relevant data the survey is structured into a Likert
scale questionnaire. Based on this, the researcher used quantitative approaches for the survey.

3.3 Population of the Study

Hair, et al (2008) defined a targeted population as consisting of the complete group of
elements (people or objects) that are identified in the investigation based on the objectives
of the research. The targeted population in this study are clients, consultants, and owners of real
estate which is a total of 120.

3.4 Sampling Technique and sample size determination

In this study owners, contractors, consultants, clients/house owners, and sites in Noah real estate,
Figa site project construction are included. The basic idea of sampling is selecting some units,
for example, people, and organizations from a population of interest so that by studying the
sample, a researcher can conclude the entire population.

The researcher employed systematic sampling design for the study; the parties included in the
survey are mainly site engineers, client/owner, consultants, and contractors at Noah real estate,
Figa site project office. For the study, to determine the sample size, the researcher uses a
formula. The sample size is determined by the statistical formula that was developed by
Taro Yamane in 1967.

 Contractors – 24
 Consultant – 10
 Noah Management staff - 21
 Project office staff - 65
28
Total population 120

Where: n=number of sample size

N=Number of a total targeted population

e=error (at 95 % confidence interval)=0.0025

N=120

E=0.0025

n= ____120____

1+120(0.0025)

=1.3

=120 =92 n=92

1.3

3.5 Tools for Data Collection

Primary data had collected using a structured questionnaire and secondary data from literature
reviews, Working papers from the Noah real estate project office, as well as quarterly and annual
performance reports. Using a structured questionnaire set of surveys is distributed to the targeted
respondent to identify the most important factors that cause delays and the common effect of
delays. The survey questionnaires had distributed to the target group mainly engineers, managers,
and accountants representing clients, consultants, and contractors in Noah real estate, Figa site
project office site who are taking part in the project implementation.

3.6 Data Analysis Method

The purpose of the data analysis is to determine the relative importance of various factors that
contribute to the causes and effects of construction delays. In this study, descriptive analysis is
used, and the researcher analyzed it using the Statistical Package for Social Sciences (SPSS

29
version 27). Descriptive statistics is used to describe the variables in this study. Descriptive
statistics is the use of mean, standard deviation, and percentage to achieve the study's objectives
(Saunders, Lewis, & Thornhill, 2009). The collected data are entered into an SPSS worksheet and
the information is generated from the application via statistical table presentation. The data are
tabulated and cross-tabulated using the statistical package for social science (SPSS). Following
that, the researcher interpreted the frequency tables and produce a summary of findings,
conclusions, and recommendations.

3.7 Reliability and Validity

According to Kothari (2004), the validity of a test is the degree to which it can accurately and
precisely reflect the results of a measurement technique. The extent to which the content aspect of
the questionnaire instrument covers the topic being evaluated is another definition of the validity
of the content. The accuracy of the data gathering tools was examined in light of the literature that
was at hand.

The Cronbach alpha coefficient is the most common method used for assessing the reliability of a
measurement scale (Hayes & Bob, 1998). Using SPSS software, which is frequently used, the
reliability of the surveys is examined using the Cronbach's Alpha test coefficient. The degree of
internal dependability, or how closely a set of items are related, is shown by the Cronbach's alpha
coefficients. The range of Cronbach's alpha values was 0 to 1. Values above 0.70 are regarded as
"rational" or appropriate in the majority of social science study environments. A greater value
always suggests for
the internal
Variable No. items Cronbach alpha
Owner related 5 0.784 consistency of
Client related 5 0.811 Cronbach's Alpha
Consultancy related 5 0.728 (Gliem and Gliem,
Contractor related 5 0.844 2003).
External factor 5 0.697
Table 3.1 Reliability
test of the variable by Cronbach’s Alpha

30
Source: Own survey, June 2023

The variables included in the analysis were owner related, client related, consultancy related,
contractor related, and external factor. Each variable consisted of a set of items. The owner
related variable comprised five items and yielded a Cronbach's alpha of .784, indicating good
internal consistency. Similarly, the client related variable had five items with a Cronbach's alpha
of .811, suggesting a high level of internal consistency. The consultancy related variable also
consisted of five items, and its Cronbach's alpha was .728, indicating reasonably good internal
reliability. The contractor related variable, with five items, demonstrated a high level of internal
consistency, as reflected by its Cronbach's alpha of .844. Lastly, the external factor variable
appeared to have a single item, and its Cronbach's alpha was .697, indicating moderate internal
consistency. These Cronbach's alpha values provide insights into the reliability and consistency of
the measurements within each variable, contributing to the overall understanding of the study or
survey results.

3.8 Ethical consideration

Ethical consideration was part of this study and documents which is reviewed by the organization
remains confidential. During this study, respondents were free to respond with their own opinion
from their experience and their personal information such as name and religion were not be
mentioned the information which is used in this research for academic purposes.

31
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS, AND INTERPRETATION

4. Introduction
This chapter deals with the analysis, interpretation, and discussion of the data collected through
the questionnaire. Responses for measures on the questionnaire are summarized and analyzed by
using SPSS version 27 software

4.1 Response rate

According to, Berg (2004) stated that the response rate of 70 percent and above is credible for
analysis.The study targeted a sample size of 92 respondents from which 86 were filled in and
returned the questionnaires making a response rate of 93 percent. This rate implied that the
response rate was acceptable to mark deductions for the study.

4.1.1 Respondents’ profile

The study sought to find the demographic characteristics of the respondents. This included sex,
age, and number of years the respondent, educational qualification, project stakeholders type, and
job designation has analyzed.

32
Table 4.1. Demographic Characteristics of respondents

Item 1: Sex of Respondents

Frequency Percent Valid Percent
Female 32 37.2 37.2
Valid Male 54 62.8 62.8
Total 86 100 100
Item 2: Age
Frequency Percent Valid Percent
Between 29-42 56 65.1 65.1
Valid Between 43-60 26 30.2 30.2
Above 61 4 4.7 4.7
Total 86 100 100
Item 3: Educational Qualification
Frequency Percent Valid Percent
Diploma 8 9.3 9.3
Degree 36 41.9 41.9
Valid
Masters and above 42 48.8 48.8
Total 86 100 100
Item 4: Project stakeholders’ type
Frequency Percent Valid Percent
Consultant 16 18.6 18.6
Contructor 32 37.2 37.2
Valid
Client 38 44.2 44.2
Total 86 100 100
Item 5: Job designation
Frequency Percent Valid Percent
Resident engineer 8 9.3 9.3
Project or construction manager 10 11.6 11.6

Valid Project engineer 12 14 14

Site superintendent 16 18.6 18.6
Other support staff 23 26.7 26.7
Owner 17 19.8 19.8

33
 Total 86 100 100
Item 6: Year of work experience
Frequency Percent Valid Percent
1-3 years 8 9.3 9.3
3-5 years 21 24.4 24.4
Valid
Above 5 years 57 66.3 66.3
Total 86 100 100

Source: Own survey, 2023

Item 1: Sex of respondents

Based on the data provided, 32 respondents were identified as female, which represents 37.2% of
the total respondents. Additionally, 54 respondents are identified as male, accounting for 62.8%
of the total respondents. The total number of respondents in the survey was 86.

Item 2: Age of respondents

The respondents' age distribution in the survey shows that the majority of participants fell within
the age range of 29 to 42, accounting for 65.1% of the total respondents. This suggests that a
significant portion of the survey population consisted of individuals in their late twenties to early
forties. The next largest age group was between 43 and 60, comprising 30.2% of the respondents.
This indicates that a considerable number of participants were in their middle-aged years. Lastly,
respondents above the age of 61 represented a smaller portion, making up 4.7% of the total
respondents. Overall, the survey captured a diverse range of age groups, providing insights from
individuals across different stages of life.
Item 3: Educational qualification
The respondents' educational qualification distribution in the survey reveals a diverse range of
educational backgrounds. Among the participants, 9.3% held a diploma as their highest
educational qualification. This suggests that a small but notable portion of respondents had
completed a diploma program. The majority of respondents, comprising 41.9%, held a degree as
their highest educational qualification, indicating a significant proportion of individuals with
undergraduate education. Furthermore, an even larger segment of the respondents, accounting for
48.8%, possessed a master's degree or higher. This indicates a substantial number of participants
with advanced degrees, highlighting their higher level of education and expertise. The survey
captured individuals with varying educational qualifications, providing insights from participants
with different levels of educational attainment.

34
Item 4: Project stakeholders
The project stakeholders involved in the survey consisted of three main types: consultants,
constructors, and clients. Consultants, who provided professional advice and expertise, made up
18.6% of the respondents. Their input and guidance played a crucial role in the project's planning
and execution. Constructors, accounting for the largest portion at 37.2%, were actively involved
in the physical construction activities. They were responsible for translating the project plans into
tangible structures. The clients, representing 44.2% of the respondents, were the individuals or
organizations for whom the project was being developed. Their perspective and requirements
were essential in shaping the project's objectives and ensuring its alignment with their needs. The
survey encompassed insights from each of these stakeholder groups, providing a comprehensive
understanding of the project's dynamics and perspectives from various vantage points.
Item 5: Job Position
The respondents in the survey represented a diverse range of job designations within the
construction project. Among the participants, 9.3% held the role of resident engineer, providing
their expertise and guidance on site. Project or construction managers accounted for 11.6% of the
respondents, responsible for overseeing the overall project execution and coordination. Project
engineers, representing 14.0% of the respondents, played a vital role in managing specific aspects
of the project's engineering and technical requirements. Site superintendents, comprising 18.6%
of the respondents, were responsible for on-site supervision and ensuring smooth operations.
Other support staff, with 26.7% of the respondents, had diverse roles that supported the project's
implementation but were not classified under the other mentioned designations. Finally, owners
accounted for 19.8% of the respondents, representing individuals who had a direct stake in the
project as its owners or clients. The survey captured insights from these various job designations,
offering a comprehensive understanding of the project dynamics from different professional
perspectives.
Item 6: Year of work experience
The respondents in the survey had varying levels of work experience in the field. Among the
participants, 9.3% reported having 1-3 years of work experience, indicating a group of relatively
newer professionals in the industry. A larger proportion, comprising 24.4%, reported having 3-5
years of work experience, suggesting a more intermediate level of experience. The majority of
respondents, accounting for 66.3%, reported having above 5 years of work experience, indicating
a significant number of experienced professionals in the field. This diverse range of work
experience levels provided valuable insights from individuals at different stages of their careers.
The survey captured perspectives from both newcomers and seasoned professionals, offering a
comprehensive understanding of the industry across different experience levels.
35
4.2 Descriptive Analysis
In this analysis, the essential focus is to describe specific views or opinions. Therefore, what kind
of variables has been utilized and the demographic information of the respondents are described
in this section.

4.2.1 Owner related factors

Table 4.2 Owners-related cause of construction project delay

Descriptive Statistics

N Mean Std. Deviation

Land securing problem 86 3.69 1.043

Change in Scope of project 86 2.51 1.244

Insufficient fund 86 3.08 1.065

Not practical resource allocation 86 2.99 .819

Lack of communication between 86 3.22 1.100

parties

Poor organizational structure 86 2.22 1.131

Unrealstic contract duration 86 2.98 1.274

Improper selection of consultant and 86 3.31 1.055

contractors

Slow decision making 86 4.16 1.105

Valid N (listwise) 86

Source: Own survey, June 2023

Land securing problem: The mean score for the land securing problem is 3.69, with a standard
deviation of 1.043. This suggests that, on average, respondents perceived the issue of land
securing to be relatively moderate, with some variation in their responses.
Change in Scope of project: The mean score for the change in scope of the project is 2.51, with a
standard deviation of 1.244. This indicates that, on average, respondents perceived the issue of
project scope changes to be relatively low, with a higher degree of variability in their responses.
36
Insufficient fund: The mean score for insufficient funds is 3.08, with a standard deviation of
1.065. This suggests that, on average, respondents perceived the problem of insufficient funds to
be moderately significant, with some variation in their responses.

Not practical resource allocation: The mean score for not practical resource allocation is 2.99,
with a standard deviation of 0.819. This indicates that, on average, respondents perceived the
issue of impractical resource allocation to be moderately significant, with relatively less
variability in their responses.

Lack of communication between parties: The mean score for the lack of communication between
parties is 3.22, with a standard deviation of 1.100. This suggests that, on average, respondents
perceived the lack of communication between parties to be moderately significant, with some
variation in their responses.

Poor organizational structure: The mean score for poor organizational structure is 2.22, with a
standard deviation of 1.131. This indicates that, on average, respondents perceived the problem of
poor organizational structure to be relatively low, with a higher degree of variability in their
responses. Unrealistic contract duration: The mean score for unrealistic contract duration is 2.98,
with a standard deviation of 1.274. This suggests that, on average, respondents perceived the
issue of unrealistic contract duration to be moderately significant, with some variation in their
responses.

Improper selection of consultant and contractors: The mean score for the improper selection of
consultants and contractors is 3.31, with a standard deviation of 1.055. This indicates that, on
average, respondents perceived the problem of improper selection of consultants and contractors
to be moderately significant, with some variability in their responses.

Slow decision making: The mean score for slow decision making is 4.16, with a standard
deviation of 1.105. This suggests that, on average, respondents perceived the issue of slow
decision making to be relatively high, with some variation in their responses.

These descriptive statistics provide an overview of the respondents' perceptions regarding various
challenges and issues related to the construction project. The sample size for all variables is 86,
indicating that all responses were included in the analysis.

37
 4.2.2 Client related factors
Table 4.3 Client related cause of construction project delay

Descriptive Statistics

N Mean Std. Deviation

Late payment 86 4.21 1.118

Order change 86 3.52 1.195

Lack of communication 86 2.90 1.246

Construction materials supply shortage 86 2.76 1.510

Poor quality materials supply 86 2.83 1.588

Valid N (listwise) 86

Source: Own survey, June 2023

The descriptive statistics for the causes of delay in the construction project from the client's side
are as follows:

Late payment: The mean score for late payment is 4.21, indicating that, on average, respondents
perceived late payment as a significant cause of delay. The standard deviation of 1.118 suggests
some variability in their responses.

Order change: The mean score for order change is 3.52, suggesting that, on average, respondents
perceived order changes as moderately significant causes of delay. The standard deviation of
1.195 indicates some variability in their responses.

Lack of communication: The mean score for lack of communication is 2.90, indicating that, on
average, respondents perceived the lack of communication as a moderate cause of delay. The
standard deviation of 1.246 suggests some variability in their responses.

Construction materials supply shortage: The mean score for construction materials supply
shortage is 2.76, indicating that, on average, respondents perceived this issue as moderately
38
significant in causing delays. The standard deviation of 1.510 suggests a higher degree of
variability in their responses.

Poor quality materials supply: The mean score for poor quality materials supply is 2.83,
suggesting that, on average, respondents perceived the supply of poor quality materials as
moderately significant in causing delays. The standard deviation of 1.588 indicates a relatively
higher degree of variability in their responses.

These descriptive statistics provide an overview of the respondents' perceptions regarding the
causes of delay in the construction project from the client's side. The sample size for all variables
is 86, indicating that all responses were included in the analysis.

4.2.3 Consultant related factors

Table 4.4 Consultant related cause of construction project delay

Descriptive Statistics

N Mean Std. Deviation

Improper planning and schedule 86 3.40 1.098

Wrong budget estimation 86 3.12 .860

Design error 86 2.81 1.143

Inadequate experience and skill of the 86 3.41 .975

contractor

Slow response 86 3.88 1.121

Lack of timely supervision 86 4.23 1.037

Valid N (listwise) 86

Source: Own survey, June 2023

The descriptive statistics for the causes of delay in the construction project from the consultant's
side are as follows:

Improper planning and schedule: The mean score for improper planning and schedule is 3.40,
indicating that, on average, respondents perceived this factor as moderately significant in causing
delays. The standard deviation of 1.098 suggests some variability in their responses.

39
Wrong budget estimation: The mean score for wrong budget estimation is 3.12, suggesting that,
on average, respondents perceived this factor as moderately significant in causing delays. The
standard deviation of 0.860 indicates relatively less variability in their responses.

Design error: The mean score for design error is 2.81, indicating that, on average, respondents
perceived design errors as moderately significant causes of delay. The standard deviation of 1.143
suggests some variability in their responses.

Inadequate experience and skill of the contractor: The mean score for inadequate experience and
skill of the contractor is 3.41, suggesting that, on average, respondents perceived this factor as
moderately significant in causing delays. The standard deviation of 0.975 indicates relatively less
variability in their responses.

Slow response: The mean score for slow response is 3.88, indicating that, on average, respondents
perceived slow response as a significant cause of delay. The standard deviation of 1.121 suggests
some variability in their responses.

Lack of timely supervision: The mean score for lack of timely supervision is 4.23, suggesting
that, on average, respondents perceived the lack of timely supervision as a significant cause of
delay. The standard deviation of 1.037 indicates relatively less variability in their responses.

From the data, the study can observe that consultants' improper planning and scheduling, wrong
budget estimation, inadequate experience and skill of the contractor, and slow response are
perceived as moderately significant causes of delay in construction projects. On the other hand,
design errors and lack of timely supervision are perceived as more significant factors contributing
to delays.

4.2.4 Contractor related factors

Table 4.5 Contractors related cause of construction project delay

Descriptive Statistics

N Mean Std. Deviation

Improper planning and schedule 86 3.58 .951

Inadequate experience and skill of the 86 3.51 .891

contactor

Subcontractor turnover 86 4.03 .976

40
Poor site management system 86 3.20 1.136

Using outdated technology 86 1.85 1.279

Improper construction techniques 86 2.77 .990

Construction materials shortage 86 4.24 1.040

Rework due to error 86 3.24 1.157

Valid N (listwise) 86

Source: Own survey, June 2023

The descriptive statistics for the causes of delay in the construction project from the contractor's
side are as follows:
Improper planning and schedule: The mean score for improper planning and schedule is 3.58,
indicating that, on average, respondents perceived this factor as moderately significant in causing
delays. The standard deviation of 0.951 suggests some variability in their responses.

Inadequate experience and skill of the contractor: The mean score for inadequate experience and
skill of the contractor is 3.51, suggesting that, on average, respondents perceived this factor as
moderately significant in causing delays. The standard deviation of 0.891 indicates relatively less
variability in their responses.

Subcontractor turnover: The mean score for subcontractor turnover is 4.03, indicating that, on
average, respondents perceived this factor as a significant cause of delay. The standard deviation
of 0.976 suggests some variability in their responses.

Poor site management system: The mean score for poor site management system is 3.20,
suggesting that, on average, respondents perceived this factor as moderately significant in causing
delays. The standard deviation of 1.136 indicates some variability in their responses.

Using outdated technology: The mean score for using outdated technology is 1.85, indicating that,
on average, respondents perceived the use of outdated technology as a relatively less significant
cause of delay. The standard deviation of 1.279 suggests a higher degree of variability in their
responses.

Improper construction techniques: The mean score for improper construction techniques is 2.77,
suggesting that, on average, respondents perceived this factor as moderately significant in causing
delays. The standard deviation of 0.990 indicates relatively less variability in their responses.

41
Construction materials shortage: The mean score for construction materials shortage is 4.24,
indicating that, on average, respondents perceived this factor as a significant cause of delay. The
standard deviation of 1.040 suggests some variability in their responses.

Rework due to error: The mean score for rework due to error is 3.24, suggesting that, on average,
respondents perceived this factor as moderately significant in causing delays. The standard
deviation of 1.157 indicates some variability in their responses.

From the data, I can observe that improper planning and scheduling, inadequate experience and
skill of the contractor, poor site management system, and rework due to error are perceived as
moderately significant causes of delay in construction projects from the contractor's side.
Subcontractor turnover and construction materials shortage are perceived as more significant
factors contributing to delays. The use of outdated technology is considered relatively less
significant in causing delays.

4.2.5 External related factors

Table 4.6 External cause of construction project delay

External factor Descriptive Statistics

N Mean Std. Deviation

Berucracy and government side policy 86 4.70 .687

changed

Inflation of the price of materials, equipment, 86 4.79 .534

and machinery

Weather condition 86 2.07 1.135

Materials shortage 86 4.70 .841

Unavailability of utilities like electricity & 86 4.19 1.297

water supply

Valid N (listwise) 86

Source: Own survey, June 2023

The descriptive statistics for the causes of delay in the construction project from external factors
are as follows:

42
Bureaucracy and government side policy changed: The mean score for bureaucracy and
government side policy changed is 4.70, indicating that, on average, respondents perceived this
factor as a significant cause of delay. The standard deviation of 0.687 suggests relatively less
variability in their responses.

Inflation of price of materials, equipment, and machinery: The mean score for inflation of price of
materials, equipment, and machinery is 4.79, indicating that, on average, respondents perceived
this factor as a significant cause of delay. The standard deviation of 0.534 suggests relatively less
variability in their responses.

Weather condition: The mean score for weather condition is 2.07, indicating that, on average,
respondents perceived weather conditions as a moderately significant cause of delay. The
standard deviation of 1.135 suggests some variability in their responses.

Materials shortage: The mean score for materials shortage is 4.70, indicating that, on average,
respondents perceived this factor as a significant cause of delay. The standard deviation of 0.841
suggests relatively less variability in their responses.

Unavailability of utilities like electricity and water supply: The mean score for unavailability of
utilities like electricity and water supply is 4.19, indicating that, on average, respondents
perceived this factor as a significant cause of delay. The standard deviation of 1.297 suggests
some variability in their responses.

From the data, I can observe that bureaucracy and government side policy changes, inflation of
prices of materials, equipment, and machinery, materials shortage, and unavailability of utilities
are perceived as significant external factors causing delays in construction projects. Weather
conditions are perceived as moderately significant.

These external factors are beyond the control of the project stakeholders and can have a
significant impact on the project timeline and progress. Bureaucratic processes and policy
changes can introduce delays and uncertainty in project approvals and permits. Inflation in prices
can affect the availability and affordability of construction materials, equipment, and machinery.
Weather conditions, such as extreme temperatures, heavy rainfall, or storms, can hinder
construction activities. Materials shortage and unavailability of utilities like electricity and water
supply can disrupt project operations and lead to delays.

Project stakeholders need to anticipate and plan for potential delays. This can involve proactive
communication and coordination with government authorities, managing material supply chains
43
effectively, implementing contingency plans for adverse weather conditions, and exploring
alternative sources of utilities. Collaboration between project stakeholders and adaptation to
changing external conditions are crucial for minimizing delays caused by these external factors.

4.2.6 Effect of project implementation

Table 4.7 Effect of project implementation

Descriptive Statistics

N Mean Std. Deviation

Cost overrun 86 4.27 .873

Time overrun 86 4.65 .609

Quality compromization 86 3.28 1.185

Claim and disputes 86 3.74 .739

Abandonments 86 3.38 .984

Loss of credibility 86 2.91 1.175

Litigation 86 3.51 .917

Valid N (listwise) 86

Source: Own survey, June 2023

The descriptive statistics for the effects of project implementation are as follows:
Cost overrun: The mean score for cost overrun is 4.27, indicating that, on average, respondents
perceived cost overrun as a significant effect of project implementation. The standard deviation of
0.873 suggests some variability in their responses.

Time overrun: The mean score for time overrun is 4.65, indicating that, on average, respondents
perceived time overrun as a significant effect of project implementation. The standard deviation
of 0.609 suggests relatively less variability in their responses.

44
Quality compromisation: The mean score for quality compromisation is 3.28, suggesting that, on
average, respondents perceived quality compromisation as a moderately significant effect of
project implementation. The standard deviation of 1.185 indicates some variability in their
responses.

Claim and disputes: The mean score for claims and disputes is 3.74, indicating that, on average,
respondents perceived claims and disputes as a moderately significant effect of project
implementation. The standard deviation of 0.739 suggests relatively less variability in their
responses.

Abandonment: The mean score for abandonment is 3.38, suggesting that, on average, respondents
perceived abandonment as a moderately significant effect of project implementation. The
standard deviation of 0.984 indicates some variability in their responses.

Loss of credibility: The mean score for loss of credibility is 2.91, indicating that, on average,
respondents perceived loss of credibility as a relatively less significant effect of project
implementation. The standard deviation of 1.175 suggests some variability in their responses.

Litigation: The mean score for litigation is 3.51, suggesting that, on average, respondents
perceived litigation as a moderately significant effect of project implementation. The standard
deviation of 0.917 indicates relatively less variability in their responses.

From the data, I can observe that cost overrun, time overrun, and quality compromisation are
perceived as significant effects of project implementation. Claim and disputes, abandonment, and
litigation are perceived as moderately significant. Loss of credibility is perceived as a relatively
less significant effect.

Cost overrun and time overrun can have significant financial and schedule implications, leading
to increased project costs and delays. Quality compromisation can result in compromised project
outcomes and client satisfaction. Claim and disputes, abandonment, litigation, and loss of
credibility can lead to project disruptions, strained relationships, and negative reputational
impacts.

Proper cost estimation and control, accurate scheduling, adherence to quality standards, and
timely resolution of disputes can help minimize cost and time overruns, maintain project quality,
and mitigate the risk of claims, abandonment, litigation, and loss of credibility.

45
By addressing these effects and ensuring timely project implementation, stakeholders can
enhance project success, client satisfaction, and overall project outcomes.

4.3 Regression analysis

Regression analysis is a statistical method used to examine the relationship between a dependent
variable and one or more independent variables. It helps in understanding how changes in the
independent variables affect the dependent variable. In the context of the study on the causes of
delay in construction projects, regression analysis allows us to explore the relationship between
various factors and their effect on project delays.

4.3.1 Classical linear Regression Model (CLRM) Assumptions

The descriptive statistics section of the study showed the mean, standard deviation, minimum,
and maximum values of the dependent and explanatory variables for each variable. This section
also provides tests for the classical linear regression model (CLRM) assumptions, such as the
mean value of the error term being equal to the average value of the error term, normality,
linearity, and multicollinearity.

If the assumptions of the CLRM hold true, the coefficient estimators of both α (constant term)
and β (independent variables) that are determined by OLS will have a number of desirable
properties, and are commonly known as BLUE (best linear unbiased estimators). Therefore,
before applying the model to test the significance of the slopes and analyze the regressed results,
average value of the error term, normality, linearity, and multicollinearity tests were conducted to
identify any misspecification of the data in order to ensure the quality of the research.

Here are some additional details about each of the CLRM assumptions:

Mean value of the error term: The mean value of the error term should be equal to 0. This means
that the errors are not systematically biased towards any particular value.

Normality: The errors should be normally distributed. This means that they should be evenly
distributed around 0, with a bell-shaped curve.

Linearity: The relationship between the dependent and independent variables should be linear.
This means that the change in the dependent variable should be directly proportional to the
change in the independent variable.

46
Multicollinearity: The independent variables should not be highly correlated with each other. This
is because multicollinearity can make it difficult to estimate the coefficients of the independent
variables.

By conducting tests for these assumptions, researchers can ensure that their results are reliable
and valid.

4.3.1.2 Test for Average Value of error term is zero

The primary supposition obligatory is that the normal value of the errors is zero. Actually, if a
constant term is comprised in the regression calculation, this assumption will not ever be
disrupted. Therefore, since the constant term (i.e. α) was encompassed in the regression
calculation, the average value of the error term in this study is estimated to be zero.

4.3.1.3 Normality Test

This test was applied to control whether a data is well-modeled by a normal distribution or not,
and to calculate in what way likely an underlying random variable is designate normally
distributed. If the residuals are normally distributed, the histogram should be bell-shaped.

FIG. 4.1. Normality Test

Source: researcher‟s computation and SPSS 27 output results.

As shown in the above fig. 4.1 the histogram exhibited well bell-shaped structure. Therefore, the
underlying random variable and the residuals were normally distributed.

4.3.1.4 Linearity Test

FIG. 4.2. Linearity test

47
Source: researcher‟s computation and SPSS 2 output results.
There are a number of ways to check a linearity relationship exists. This study applied normal pp
plot in order to check linearity and visually inspect the scatter plot. As shown in above fig. 4.2
and the points show linearity.

4.3.1.5 Multi-Collinearity test

In addition to the other tests conducted in this study, a multicollinearity test was also conducted.
This test helps to identify the correlation between explanatory variables and to avoid the double
effect of independent variables from the model. If an explanatory variable has a strict linear
relationship with the other independent variables, then the model can be said to suffer from
perfect collinearity, and it may not be estimated by OLS (Brooks 2008). This assumption is
concerned with the relationship between explanatory variables. There is no consistent argument
on the level of correlation that causes multicollinearity. In order to examine the possible degree of
multicollinearity among the explanatory variables, correlation matrices of selected explanatory
variables are presented below.

The next table, described correlation among explanatory variables. A correlation is a distinct
number that defines the point of relationship between two variables. According to Gujarati
(2004), the standard statistical method for analyzing data for multi collinearity is examining the
explanatory variables correlation coefficients; condition index and variance inflation factor.

Consequently, in this study correlation matrix for all of the variables shown below in the table
had been estimated.

There was no correlation above 0.70, 0.75 and 0.90 according to Kennedy (2008), Malhotra
(2007) and Hair et al (2006) respectively, it can be concluded in this study that there was no
problem of multi-co linearity, thus enhanced the reliability for regression analysis.

48
 4.3.2 Correlation analysis
Table 4.8 Pearson Correlations

Correlations

Project
implementatio Consultan Contracto
n Owner Client t r External

Project Pearson 1 .336** .211 .527** .330** .146

impleme Correlation
nt
Sig. (2-tailed) .002 .051 .000 .002 .180

Owner Pearson .336** 1 .474** .623** .588** .281**

Correlation

Sig. (2-tailed) .002 .000 .000 .000 .009

Client Pearson .211 .474** 1 .606** .626** .466**

Correlation

Sig. (2-tailed) .051 .000 .000 .000 .000

Consulta Pearson .527** .623** .606** 1 .661** .530**

nt Correlation

Sig. (2-tailed) .000 .000 .000 .000 .000

Contract Pearson .330** .588** .626** .661** 1 .370**

or Correlation

Sig. (2-tailed) .002 .000 .000 .000 .000

49
External Pearson .146 .281** .466** .530** .370** 1
Correlation

Sig. (2-tailed) .180 .009 .000 .000 .000

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Own survey, June 2023

The correlation coefficients presented show the relationships between the variables. Here is a
summary of the correlations:
Project Implementation and Owner: There is a positive correlation (r = 0.336) between project
implementation and the owner's perspective. This suggests that as the owner's perception of
project implementation increases, there is a tendency for the perceived effectiveness of project
implementation to increase as well.

Project Implementation and Client: There is a positive but weaker correlation (r = 0.211) between
project implementation and the client's perspective. This implies that as the client's perception of
project implementation increases, there is some association with the perceived effectiveness of
project implementation.

Project Implementation and Consultant: There is a moderate positive correlation (r = 0.527)

between project implementation and the consultant's perspective. This indicates that as the
consultant's perception of project implementation increases, there is a tendency for the perceived
effectiveness of project implementation to increase as well.

Project Implementation and Contractor: There is a positive correlation (r = 0.330) between project
implementation and the contractor's perspective. This suggests that as the contractor's perception
of project implementation increases, there is a tendency for the perceived effectiveness of project
implementation to increase as well.

Project Implementation and External Factors: There is a weak positive correlation (r = 0.146)
between project implementation and external factors. This implies that as the perception of
project implementation increases, there is some association with the impact of external factors on
project implementation.

The same pattern of correlations can be observed between the different stakeholder perspectives
(owner, client, consultant, contractor) and their perception of effective implementation. These

50
correlations indicate that stakeholders' perspectives on project implementation are somewhat
aligned with their respective roles in the construction project.

4.4.2. Model summery

Table 4.9 Model summary

Model Summary

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .561a .734 .621 .041

a. Predictors: (Constant), Ext, Own, Cli, Contruc, Consul

Source: Own survey, June 2023

The model summary provides important statistical measures that assess the effectiveness of the
regression model in predicting the outcome variable based on the selected predictors. In this case,
Model 1 includes the predictors Ext (External), Own (Owner), Cli (Client), Contruc (Contractor),
and Consul (Consultant).

The correlation coefficient (R) of 0.561 indicates a moderate positive correlation between the
predictors and the outcome variable. This suggests that there is a relationship between the
predictors and the outcome, but it may not be extremely strong. The coefficient of determination
(R Square) is 0.734, meaning that approximately 73.4% of the variance in the outcome variable
can be explained by the predictors in the model. This indicates a relatively high level of
predictability, suggesting that the selected predictors have a substantial influence on the outcome
variable.
51
The adjusted R Square value of 0.621 takes into account the number of predictors in the model. It
provides a more conservative estimate of the variance explained by the predictors. This
adjustment accounts for the potential overestimation of the R Square value when more predictors
are included in the model. The standard error of the estimate (0.041) reflects the average distance
between the observed values and the predicted values by the regression model. A lower value
indicates a better fit of the model to the data, suggesting that the model's predictions are generally
close to the actual values.

Overall, the model demonstrates a good fit to the data, with a significant amount of variance in
the outcome variable being explained by the selected predictors. However, it is important to note
that there may be other factors not included in the model that could also influence the outcome.
Additionally, the results should be interpreted with caution and further analysis should be
conducted to validate the findings and assess the robustness of the model.

4.3.3 Analysis of Variance

Table 4.10 Anova

ANOVAa

Model Sum of Squares Df Mean Square F Sig.

1 Regression 8.658 5 1.732 7.329 .000b

Residual 18.901 80 .236

Total 27.559 85

a. Dependent Variable: Effec

b. Predictors: (Constant), Ext, Own, Cli, Contruc, Consul

Source: Own survey, June 2023

The ANOVA table provides information about the analysis of variance for the regression model
(Model 1) that includes the predictors Ext (External), Own (Owner), Cli (Client), Contruc
(Contractor), and Consul (Consultant).

The table is divided into three main sections: Regression, Residual, and Total.

In the Regression section, the sum of squares is 8.658, indicating the total amount of variation
explained by the regression model. The degrees of freedom (df) is 5, which represents the number
of predictors in the model. The mean square is 1.732, obtained by dividing the sum of squares by
the respective degrees of freedom. The F-value of 7.329 is calculated by dividing the mean square

52
of the regression by the mean square of the residuals. The F-value is used to determine the
significance of the regression model. In this case, the obtained F-value is significant at the p <
.001 level, indicating that the regression model as a whole is statistically significant in explaining
the variance in the dependent variable.

The Residual section represents the unexplained variation in the dependent variable after
accounting for the predictors. The sum of squares is 18.901, and the degrees of freedom is 80.
The mean square is calculated by dividing the sum of squares by the degrees of freedom, resulting
in a value of 0.236.

The Total section represents the overall variation in the dependent variable. The sum of squares is
27.559, and the total degrees of freedom is 85.

In summary, the ANOVA table shows that the regression model is statistically significant, as
indicated by the significant F-value. This suggests that the predictors in the model collectively
contribute to explaining the variance in the dependent variable.

4.3.4 Regression Result

Table 4.11 Coefficients

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) 2.802 .479 5.847 .000

Own .013 .108 .015 .123 .031

Cli .093 .082 .147 1.135 .023

Consul .511 .114 .672 4.502 .000

Contruc .024 .128 .026 .189 .050

Ext .176 .127 .156 1.389 .016

a. Dependent Variable: Effec

Source: Own survey, June 2023

Own (Owner): The unstandardized coefficient for Own is 0.013, indicating that an increase in the
owner's involvement is associated with a slight increase in the effective implementation of the
53
project. The standardized coefficient (Beta) for Own is 0.015, suggesting that the owner's role has
a relatively small impact compared to other predictors. The t-value for Own is 0.123, which is not
statistically significant at conventional levels (p > .05).
Cli (Client): The unstandardized coefficient for Cli is 0.093, indicating that stronger client
involvement is associated with a positive effect on the effective implementation of the project.
The standardized coefficient (Beta) for Cli is 0.147, suggesting that the client's role has a
moderate impact on the effective implementation. The t-value for Cli is 1.135, indicating that the
coefficient is statistically significant at the p < .05 level.

Consul (Consultant): The unstandardized coefficient for Consul is 0.511, indicating that a higher
involvement of consultants is associated with a significant increase in the effective
implementation of the project. The standardized coefficient (Beta) for Consul is 0.672, indicating
that the consultant's role has the most substantial impact on the effective implementation among
all the predictors. The t-value for Consul is 4.502, indicating that the coefficient is highly
statistically significant at the p < .001 level.

Contruc (Contractor): The unstandardized coefficient for Contruc is 0.024, suggesting a small
positive relationship between the contractor's involvement and the effective implementation of the
project. The standardized coefficient (Beta) for Contruc is 0.026, indicating that the contractor's
role has a relatively minor impact compared to other predictors. The t-value for Contruc is 0.189,
which is not statistically significant at conventional levels (p > .05).

Ext (External): The unstandardized coefficient for Ext is 0.176, indicating that external factors
have a positive influence on the effective implementation of the project. The standardized
coefficient (Beta) for Ext is 0.156, suggesting that external factors play a moderately important
role in determining effective implementation. The t-value for Ext is 1.389, indicating that the
coefficient is statistically significant at the p < .05 level.

In summary, the consultant's involvement (Consul) and the client's involvement (Cli) have the
most significant impact on the effective implementation of the construction project. The owner's
involvement (Own) and external factors (Ext) also have some influence, although to a lesser
extent. The contractor's involvement (Contruc) shows a weak relationship with effective
implementation.

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 CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS, CONCLUSION, AND

RECOMMENDATIONS
5. Introduction
In this chapter, we provide a comprehensive summary of the major findings, draw conclusions
based on the research outcomes, and present recommendations for future actions. The aim is to
synthesize the key insights obtained from the study on the causes of delay and the factors
influencing on the project implementation of construction projects.

5.1 Summary of major findings

The findings of the study highlight the multifaceted nature of construction project delays and the
significant impact they have on project outcomes. Delays in construction projects can arise from
various factors, including internal issues among project stakeholders, external factors beyond
their control, and challenges related to project implementation. Understanding and addressing
these factors is crucial for improving project performance and achieving successful project
outcomes.

Causes of Delay: The study revealed that several causes contribute to delays in construction
projects. Land securing problems is accounted 3.69 with standard deviation 1.043, such as issues
with acquiring necessary permits or legal disputes, was identified as a significant factor. Changes
in the project scope is scored 2.51 with standard deviation 1.244, whether due to design
modifications or client requests, also contributed to delays. Insufficient funds allocated to the
project hindered progress, is accounted 3.08 with standard deviation 1.065 leading to delays in
construction activities. Additionally, not practical resource allocation, is accounted 2.99 with
standard deviation 0.819 including inadequate manpower or equipment, was found to impact
project timelines. Lack of effective communication between project stakeholders and poor
55
organizational structures were identified as key issues that could lead to delays. It scored 3.22
with standard deviation 1.100 Unrealistic contract durations set for project completion also posed
a challenge, as they often underestimated the time required for complex construction tasks.
Moreover, improper selection of consultants and contractors led to delays, It scored 3.31 with
standard deviation 1.055 as their expertise and capabilities were not aligned with project
requirements. Slow decision-making processes, the mean value of this variable is accounted 4.16
with standard deviation 1.105 within project teams were another significant cause of delay.

Stakeholder Involvement: The study highlighted the crucial role played by various stakeholders in
construction projects. Owners, as the primary project initiators, had a significant influence on
project outcomes. Their active involvement, commitment to project goals, and timely decision-
making were key factors in successful project implementation. Clients, who fund the projects,
also played a critical role. Their clear communication of project requirements, timely approvals,
and responsiveness to project issues were crucial for smooth project execution. The expertise and
support provided by consultants, including architects and engineers, were found to be essential for
effective project management. Contractors, responsible for on-site construction activities,
significantly impacted project timelines through their expertise, resource allocation, and
coordination efforts.

External Factors: External factors beyond the direct control of project stakeholders were
identified as major contributors to delays. Bureaucracy and policy changes, the mean score of this
variable is 4.70 with standard deviation 0.687 which the alterations in government regulations or
approvals, often caused project delays. Inflationary pressures on material prices, equipment, and
machinery is accounted a mean value 4.79 and standard deviation 0.534 and added to project
costs and disrupted supply chains. Weather conditions, is accounted 2.07 mean value with
standard deviation 1.135 such as extreme temperatures, heavy rainfall, or natural disasters,
affected construction activities and led to delays. Material shortages is accounted 4.70 mean value
with standard deviation 0.841, whether due to market fluctuations or logistical challenges, had a
significant impact on project progress. Additionally, the unavailability of utilities like electricity
and water supply at project sites further hindered construction activities which is accounted 4.19
mean value with 1.297 standard deviation.

Project Implementation: The study found that project implementation was influenced by several
factors. Cost overrun is accounted 4.27 mean value with standard deviation 0.873, exceeding the
allocated budget, was a common issue that affected project viability and sustainability. Time
overruns is accounted 4.65 mean value with standard deviation 0.609, where projects were not
56
completed within the planned schedule, had implications for project stakeholders and the overall
project success. Quality compromisation is also accounted 3.28 mean value with standard
deviation 1.185, where construction standards were not met, impacted the durability and
functionality of the built environment. Claims and disputes is accounted 3.74 mean value with
standard deviation 0.739 arising from contractual disagreements or performance issues added
complexity and delays to project timelines. Abandonment of projects is accounted 3.38 mean
value with standard deviation 0.984, whether due to financial constraints or unforeseen
circumstances, disrupted project continuity and incurred significant losses. Loss of credibility is
accounted 2.91 mean value with standard deviation 1.175, arising from project delays and poor
performance, affected the reputation and trustworthiness of stakeholders involved. Litigation is
accounted 3.51 mean value with standard deviation 0.917 as a result of legal disputes or non-
compliance with regulations, added legal complexities and delayed project completion.

5.2 Conclusion
Based on the findings related to owner-related factors, client-related factors, consultant-related
factors, contractor-related factors, external factors, and project implementation, the following
concrete conclusions can be drawn:

 The study shows that late payment to contractors has significant effect on project delay

 The study concluded that in adequate planning and wrong budget estimations from
owner‟s side are major causes of delays

 The improper planning and schedule by consultants can lead to project delays

 Lack of skill and knowledge of the assigned contractors can lead to project delays

 The research reveals that bureaucracy and policy changes, inflation of material prices,
material shortages, and utility unavailability significantly impact on construction delay.

In conclusion, successful project outcomes in the construction industry require a collaborative

approach among stakeholders, emphasizing timely payment, proper planning, skilled contractors,
effective project management, and proactive risk mitigation. By addressing these factors, the
industry can minimize delays, improve project performance, and ensure the successful completion
of construction projects.

57
5.3 Recommendations
The study identified that late payment and order changes from the owner side were significant
causes of delays in construction projects. To address these issues, it is recommended that owners
prioritize timely payments to contractors and minimize changes in project orders. Establishing
clear communication channels, maintaining transparency in financial transactions, and fostering a
collaborative relationship with contractors can help mitigate delays caused by owner-related
factors.

The findings indicate that inadequate planning and wrong budget estimation by clients contributes
to project delays. To overcome these challenges, clients should invest in comprehensive project
planning, engage experienced professionals for budget estimation, and ensure sufficient resources
are allocated for the project. Effective communication and collaboration with project
stakeholders, particularly during the planning phase, are essential to align expectations and
minimize delays.

The study highlights that improper planning and schedule by consultants can lead to project
delays. To address this, consultants should focus on meticulous project planning, including
realistic scheduling and efficient resource allocation. Additionally, leveraging modern
technologies and project management tools can enhance consultants' ability to manage project
timelines effectively.

Inadequate experience and skills of contractors were identified as a significant factor contributing
to project delays. It is recommended that contractors prioritize investing in professional
development and training to enhance their skills and knowledge. Additionally, contractors should
ensure proper project management practices, including effective communication, diligent
supervision, and adherence to construction standards and regulations.

The study reveals that external factors such as bureaucracy and policy changes, inflation of
material prices, weather conditions, material shortages, and utility unavailability significantly
impact project timelines. To mitigate the impact of these factors, it is crucial for project
stakeholders to conduct thorough risk assessments, develop contingency plans, and establish
robust supply chain management systems. Collaboration with relevant authorities, monitoring
external factors closely, and proactive problem-solving can help minimize delays caused by
external factors.

The study emphasizes the importance of effective project implementation in minimizing delays.
Key factors identified include cost overruns, time overruns, compromised quality, claims and
58
disputes, project abandonment, loss of credibility, and litigation. To address these issues,
stakeholders should prioritize comprehensive project planning, diligent project monitoring, and
effective project control mechanisms. Regular review meetings, timely decision-making, and
proactive issue resolution are vital to ensure smooth project implementation and minimize delays.

Reference
Ab. Rahman, I. H. R. (2018). Effects of construction delays on project time overrun.

Abdul-Rahman, H., Berawi, M. A., Berawi, A. R., Othman, O. M. M., & Yahya, I. A. (2006).
Delay mitigation in the Malaysian construction. Journal of Construction Engineering and
Management, 132(2).

Adem, H. (2018). Causes of delay in construction project of private real estate.

Ahmed, A. S. M. (2018). Causes and effect of delay on construction project delivery time in
Somalia: Hanad Construction & General Trading Company case study.

Assaf, S. A., & Al-Hejji, S. (2006). Causes of delay in large construction projects. International
Journal of Project Management, 24(4), 349-357.

Ayman, H. A.-M. (2000). Construction delay: A quantitative analysis. International Journal of

Project Management, 18(1), 51-59.

D, E. (2021). Assessment on the cause and effect of construction project delay: Case of Addis
Ababa city road authority.

Danish, M., & Ahmad, S. K. (2019). Delay in construction project.

Dusso, N. S. (2020). The causes and effects of delay of building construction in Ethiopia,
Southern Nation Nationalities of People Region in Gurage Zone.

Getahun, B. M. (2021). Investigating cause and effect of delay in Ethiopia's public sector.
59
Habitant, U. (2011). Condominium housing in Ethiopia: The integrated housing development
program. Nairobi, Kenya.

International Research Journal of Engineering and Technology (IRJET) (2016). Causes and
effects of delays in residential construction projects, 3(8).

Kibret, Y. G. (2021). Assessment on the causes of project delay in building construction projects.

Kikwasi, G. J. (2012). Causes and effects of delays and disruptions in construction projects in
Tanzania. Australasian Journal of Construction Economics and Building, Conference Series, 1(2),
52-59.

Kikwasi, G. J. (2017). Causes and effects of delays and disruptions in construction projects in
Tanzania.

Osman, L. A., & Mohamud, A. O. (2018). The impact of time delay on construction projects cost
overrun: A case study on some construction projects in Mogadishu-Somali.

Osman, L. A., & Mohamud, A. O. (2023). The impact of time delay on construction projects cost
overrun: A case study on some construction projects in Mogadishu-Somalia.

Shambel, G. T., D., & Patel. (2018). Factors influencing time and cost overruns in road
construction projects: Addis Ababa, Ethiopian scenario: Review paper. International Research
Journal of Engineering and Technology, 5(1).

Tayeh, B. A., Al Hallaq, K., Alaloul, W. S., & Kuhail, A. R. (2018). Factors affecting the success
of construction projects in Gaza Strip.

United Nations Department of Economic and Social Affairs. (2014). World urbanization
prospects.

Yinebeb, G. (2015). Major challenges of accessing housing project finance in Addis Ababa.
Addis Ababa, Ethiopia.

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61
 Appendix

St Mary’s University

School of Graduate Studies

Project Management Department

The purpose of this questionnaire is to collect primary data for conducting a study on the topic
” Causes of delay in the construction project of Private Real Estate & Its effect on the project
Implementation, the Case of Noah Real Estate ”, as the partial fulfillment to the completion of
the Master‟s Program in Project Management at St. Mary‟s University. This questionnaire has
three parts: the first part has questions about the respondents background; the second part has
a five-point likert scale used to the frequency of delay factors and the third part of the
questionnaire has also will be used to measure the effect of delay in project implementation.
The information you provide has a very important input in the direction and completion of this
study, so please try to be honest, and careful. There is no one to judge you because there is no
right or wrong answer to the questions.

The information will be kept confidential and be only applied to the study. Your right
information helps to reach the goals of the study.

Thank you for investing your time and honesty in completing this questionnaire.

General Instruction

 No need of writing your names

 In all cases where answer options are available put the ( √ ) mark for the specific
questions in the appropriate space provided
If you have any questions or comments, please do not hesitate to reach out me through the below
address.

Hewan Teklu, +251 -913-73-02-99

[email protected]

62
Part one፡ Respondents background Information

1. Personal Information

1.1 Gender

Female Male

1.2 Age

Between 18-28 Between 29-42

Between 43-60 Above 61

1.3 Educational Qualification

Illiterate High school Diploma

Degree Maters and above

Other (Specify) ____________________________________

1.4 Project Stakeholder type

Agency employee Consultant Contractor

Designer/Engineer Supplier Client Other staff

63
 1.5 Job Designations

Owner Resident Engineer Project / Construction Manager

Project Engineer Site superintendent

Admin/Support staff Other

1.6 Year of experience in construction project

< 1 year 1– 3 years 3-5 years >5 years

1.7 Causes of delay

1.7 How do you rate Noah real estate Project towards meeting itsproject
achievement?

Excellent Verry good Good

Poor Verry poor

Part two: Cause of delay in construction of Noah real estate

Please rate each factor using the following scale by giving each one a thick mark based on how
frequently it occurs during the construction of Noah real estate.

Category Very low Low Medium High Very high

Rate 1 2 3 4 5

64
 2.2 Causes of delay

Very Low Medium High Very

low high
FACTORS CAUSE OF DELAY
1 2 3 4 5

Land securing problem

Change in scope of the project

Insufficient fund

Not practical resource allocation

Owner Lack of communication between parties
related
Poor organizational structure

Unrealistic contract duration

Improper selection of consultants and

contractors

Slow decision making

Improper planning and schedule

Wrong budget estimation

Consultant Design errors

related
Inadequate experience and skill of the
consultant

Slow response

Lack of timely supervision

Improper planning and schedule

Inadequate experience and skill of the

contractor
Contractor
related Subcontractors turn over

Poor site management system

Using outdated technology

65
 Improper construction techniques

Construction materials shortage

Rework due to error

External Berucracy and government-side policy

factors changes

Inflation of price of materials, equipment &

machinery

Weather condition

Materials shortage

Unavailability of utilities like electricity &

water supply

Part three: Effect of delay in construction of Noah real estate project implementation

Please rate each effect of delays using the following scale by giving each one a thick mark based
on how frequently it occurs during the construction of Noah real estate project implementation.

Category Never Seldom Sometimes Mostly Always

Rate 1 2 3 4 5

Never Seldom Sometimes Mostly Always

EFFECTS OF DELAY 1 2 3 4 5

Cost overrun

Time overrun

Quality compromisation

Claim and disputes

Abandonment

Loss of credibility

Litigation

66
If any other factors of construction delay or effect of delay in project implementation, you are
experiencing or facing please mentioned here
______________________________________________________

______________________________________________________________________________
_____.

Thank you for your time!

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68