This research identifies the causes and effects of construction contract termination in the western Oromia region. Identifying the causes and their effects on projects might prevent their failure in future contracts. However, because building projects are so complicated, their risk is also rather substantial.
Ethiopia's construction industry has contributed significantly to poverty reduction, aggregate employment expansion through small and medium firm development, and the job creation through the construction of low-cost housing in Addis Ababa, which has been replicated in other locations.
A sizable portion of the country's budget is devoted to fiscal development by financing infrastructure for educational and power development, the construction of railways and road projects that increase the road network's density, and the construction of health projects that increase access to water and sanitation infrastructure. The private sector's contribution to the value-added in a building is also considerable. The private sector invests its money in various fixed assets, including new machinery and equipment and the construction and maintenance of new structures.
Ethiopia has also announced successive public procurement reforms to adhere to decent governance principles; reform efforts have been undertaken to encourage reasonable offering for supplier selection and operational delivery of projects within budget and schedule constraints.
According to the owner's requirements and within a limited budget it was a very challenging task to achieve a virtuous result by the contractor of the project. The parties that engaged into a contract are responsible to perform and complete it according to the contract's provisions. Failure to comply with such requirements constitutes a breach of the contract, entitling the other party to an appropriate remedy under the contract.
In Ethiopia, Terminations of the project are one of the severe problems observed. In the last five years ago, about 3 to 5 projects were terminated in Burayou town municipality public projects such as; Serity Elementary School construction around Gefersa Guju Kebele, Youth center construction around Abdi Nono Kebele, whereas in the Western Oromia; Guliso Wereda G+2 Office building, Ebuntu preparatory school construction, Jimma University Agaro Compass construction, etc. were terminated projects those observed yet. Thus, the perceived problem is to be solved by concerning such issues within a current situation.
Inhaltsverzeichnis (Table of Contents)
- I. INTRODUCTION
- A. Construction project overview
- B. Termination of Construction Contracts
- Project Failure Overview
- C. Causes of Premature Termination
- D. Effects of Premature Termination
- II. METHODOLOGY
- III. RESULTS AND DISCUSSION
- A. Causes of Premature Project Termination
- B. Effects of Premature Project Termination
- C. Prevention Measures for Premature Termination
- IV. CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to determine the primary reasons and consequences of premature contract terminations of public building projects in western Oromia. The study examines the causes and effects of construction contract termination in the western Oromia region to prevent project failure in future contracts.
- Causes of premature contract termination in public building projects
- The effects of premature termination on project progress, economic growth, stakeholders, and professionals
- Remedial measures to mitigate premature termination
- The role of managerial and financial factors in contract termination
- The impact of political and environmental factors on project termination
Zusammenfassung der Kapitel (Chapter Summaries)
- I. INTRODUCTION: This chapter provides an overview of the construction industry in Ethiopia and the significance of public building projects. It also highlights the challenges of construction contracts, particularly the risk of premature termination. The chapter outlines the legal framework surrounding contract termination and defines key concepts such as project failure and premature termination.
- II. METHODOLOGY: This chapter details the research methodology employed in the study, including the research design, data collection methods, and data analysis techniques. The study adopted a descriptive and explanatory research approach, utilizing both qualitative and quantitative data collection methods such as surveys, interviews, and case studies.
- III. RESULTS AND DISCUSSION: This chapter presents the research findings and analyses the causes, effects, and prevention measures related to premature project termination. The chapter analyzes the relative importance index (RII) of different factors contributing to termination, examining their impact on stakeholders and the overall project success.
Schlüsselwörter (Keywords)
The main keywords and focus topics of the text are: construction contracts, premature termination, public building projects, western Oromia, Ethiopia, financial related causes, managerial related causes, project characteristics related causes, political related causes, environmental related causes, effects of termination, remedial measures, relative importance index (RII), project progress, economic growth, stakeholders, professionals.
- Quote paper
- Dugasa Bayeta (Author), 2023, Premature Contract Termination of Public Building Projects in Ethiopia. Case Study of Western Oromia, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1327884