Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

Purpose

It is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.

Design/methodology/approach

From the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.

Findings

It is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.

Research limitations/implications

The scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.

Practical implications

It provides practitioners with information and guidance on the factors that affect the performance of construction projects.

Originality/value

It provides inclusive evidence related to many factors that affect the performance of public construction projects.