FACTORS AFFECTING THE PERFORMANCE OF CONSTRUCTION PROJECTS: THE CASE OF GIFT REAL ESTATE S.C

Abstract

The study investigates the factors influencing the performance of construction projects, focusing on Gift Real Estate S.C., a prominent real estate developer in Ethiopia. The construction sector plays a vital role in economic growth by providing essential infrastructure and employment. Despite its growth, the sector in Ethiopia faces challenges such as project delays, cost overruns, and quality issues. This research explores critical factors such as financial management, stakeholder coordination, resource allocation, procurement processes, and external influences like regulatory compliance and macroeconomic conditions. Using a mixed-methods approach, the study employed surveys and interviews with 207 respondents, including project managers, engineers, and management staff. Data were analysed through descriptive and inferential statistics to identify the relationship between project performance and various influencing factors. Key findings indicate that inadequate financial planning, resource shortages, stakeholder conflicts, and inefficient procurement processes are significant contributors to poor project outcomes. Additionally, external factors such as inflation and bureaucratic delays further exacerbate project inefficiencies. The study highlights the importance of integrating robust project management practices, effective stakeholder engagement, and quality management systems to enhance project performance. It recommends adopting advanced technologies, streamlining procurement, and fostering a culture of collaboration to mitigate challenges. The research contributes to the understanding of construction project dynamics in the Ethiopian context and provides actionable insights for improving efficiency, cost-effectiveness, and quality in the real estate sector.