Major problems experienced in the case study projects

The assessment made on the seven projects (their profile is attached in appendix B)
depicts that the frequent problems encountered in A.A. road construction projects
include right of way, slow decision making, change orders, deficient contract
management. Lack of contract documentation, inadequate design, inefficient
management of the whole project…etc.

Chapter 5: Case study

5.1. General

Among the many completed road projects that were under taken through
AACRA, five of them are selected for the case study. The selection of the projects is
based on the availability of the projects data. The background data and primary
information of these projects are given below. The causes
of delay, contractor’s extension of time claims and the engineer’s recommendation are
discussed in detail in the discussion part of this chapter.

Conclusion and recommendation

It is clearly evident that the project has been delayed due to different reasons
mentioned above. Due to such reasons employer’s needs, economical development of
the country and social benefits of the society have been greatly affected.

Based on the findings of the interview and the documents, progress reports, we
recommend that:

 Coordinate and control the overall activities of the project.

 The contractor shall have a revised schedule of work program
 The contractor has to be responsive to the consultant’s feedback.
 The employer has to remove obstructions and give the site to the contractor at
the right time.
 CASE STUDY 1 - AYAT-YERER-GORO SCHOOL PASI ASPHALT ROAD
Project information
Project name--------------------------------AYAT-YERER-GORO SCHOOL PASI ASPHALT
ROAD
Project length-----------------------------7.6 km
Type of construction---------------------New road construction
Contractor --------------------------- -----Midroc Construction PLC.
Consultant----------------------------------NET Consult Consulting Engineers and Architects
Employer-----------------------------------AACRA
Source of fund ----------------------------The city government of Addis Ababa
Contract type------------------------------unit price
Contract amount (including VAT) -----143,986,783.58 ETB
Construction contract signed-----------June 09, 2006
Contract commencement date---------June 24, 2006
Construction period-----------------------545 calendar days
Current status-----------------------------completed

Physical progress of the work

The physical progress for permanent work up to the end of April 2012 was 64.3%, which
has been delayed considerably when compared to the work program. As per the revised
work program the progress should have been 72.1% at the end of April 2012. It was
found out that the reasons for slippage of the work from the planned program are both
the contractor and the consultant. Unfortunately, it was not possible to find the
contractor. The consultant’s views were summarized below.

The contractor has submitted a work program as a master program for approval and
consultant recommended for a sort of modification and the modified as per the
comments and approved on the days specified. However, due to different problems
encountered the project has been delayed and no decision was given on the time
extension request by the contractor.

Major problems encountered in the project

The identification of each party’s problem in the construction of the Addis AYAT-
YERER-GORO SCHOOL PASI ASPHALT ROAD Project is to understand each parties
view points to the inherent problems that are affecting the progress of the work and
adding to the ever-accumulating delays in contract period.

There are many interrelated problems that have markedly affected construction
progress, which according to the client’s and consultant’s understanding are:-
 A. Contractor related problems
Hindrance in progress of work where as per the master work program of the
project, the contractor has planned 13.5% of work to be completed by the end of
the month April 2012 yet only 3% has been accomplished to date. There are
different reasons that contribute to these failures by the contractor;
 Delay in site mobilization
 Ineffective planning and scheduling of project by contractor
 Slow preparation of change order requests by consultant
 Poor site management and supervision by contractor
 Improper construction method implemented by the contractor
 Delay in the contractor’s work
 Contractor’s poor coordination with the parties involved
 Difficulties in financing the project

B. Client related problems

The project has been delayed significantly due to the employer’s failure to remove
obstructions and give the site. The contractor has requested the employer to
acquire borrow pit and clear the right of way. But the employer has delayed to give
the response. Due to this the project has been delayed. Other failure of the
employer is assessed in contributing to delays include;
 Restriction of site supervisor’s authority by the employer
 Changes in scope of the project
 Right of way problem
 Owner’s poor communication with the various parties
 Delay in progress payments
 Slowness in decision making process
 Delay in issuance of change orders
 Delay in settlement of contractor’s claim by employer

C. Consultant related problems

Project progress is not monitored, as there is no effective control system. Had
there been such a control system, improvements in the day-to-day rate of progress
could have been observed. Contrary to this, the project is experiencing slippage,
which is accumulating every month.
 Slow response to contractors
 Poor qualification of engineer’s staff on the project
 Poor coordination with the other parties
 Delay in the approval of contractor submission
 In adequate investigation by the designer during the design phase
 Insufficient communication between owner and designer on the design stage
 Unclear and in adequate details in drawings
Impacts of the problems faced on the project
The major impacts that have come out due to the problems encountered include:-
 Changes on the schedule of work
 Increase in total project cost
 Delay in payment
 Additional payment for the contractor
 Productivity degradation

Actions taken by the parties

Even though the right of way problems have been resolved substantially there are still
unresolved cases that the contractor is using not to start work in the area past the
6+600 station till the end of the project.

The contractor’s performance is still at a bare minimal level and needs proper corrective
actions if the project is to be completed on time.

Generally, the project is far behind the schedule and hence there will be a need for
revised wok program of the schedule that is expected to improve the progress of critical
activities of the project as well as that comprises of resource plans which will enable the
early completion of the project.

CASESTUDY 2 - MEGENAGNA – AYAT ASPHALT ROAD PROJECT

(contract 2: left half section)

Project information
Project name--------------------------------MEGENAGNA – AYAT ASPHALT ROAD
PROJECT (contract 2: left half section)
Project length---------------------------------8.2 km
Type of construction------------------------New road construction
Contractor --------------------------- --------CRBC Addis engineering PLC.
Consultant------------------------------------CORE consulting engineers PLC.
Employer--------------------------------------AACRA
Source of fund ------------------------------The city government of Addis Ababa
Contract type---------------------------------unit price
Contract amount (including VAT) --------224,055,813.14 ETB
Construction contract signed-------------January 27, 2009
Contract commencement date-----------June 14, 2009
Construction period------------------------420 calendar days
Current status--------------------------------in progress
Physical progress of the work

Considering the high traffic mobility on the existing road, AACRA had devised a
mechanism to construct the whole width of the road stage by stage dividing into two
sections. The construction of the second phase designated as Contract 2: left half
section is in progress.

As the dry season had set in, the contractor was working in full force. Almost all of the
asphalt works are completed except Salite Mihiret church and summit roundabout, and
the stretch from km 7+400-7+900. Outstanding works awaiting the contractor include
the walkway construction, electrical lines and poles construction, and finishing the
remaining minor earth works, sub base, base course and asphalt works.

The contractor did not submit his revised work program so it was difficult to evaluate
him.

The actual progress of work up to May 2006 on site is incomparable to the original work
program submitted. The physical progress up to May 2006 has a value of work
performed that exceeds 20% of the total amount. The contractor had asked for an
extension of time and was grated 151 days extension making the contract period 571
calendar days.

Major problems encountered in the project

This identification of each party’s problem in the construction of the MEGENAGNA –
AYAT ASPHALT ROAD PROJECT (contract 2: left half section) is to give an insight to
the inherent problems that are affecting the progress and contributing to the ever-
accumulating slippage in contract period. In this specific project there are a lot of causes
for the delay of the progress of the work. Typically to this project the causes that are
affecting the progress occurred during implementation stage. Depending upon their
priority, they are classified as follows:

Contractor’s failure
A variety of factors in an ongoing project can lead to a hindrance or cost overrun of a
project. The main causes for the progress to be delayed mostly happen during the
construction phase. The contractor is identified as the major cause for the delay of the
progress of the work, due to the following reasons:-

 Failure to mobilize plant and equipment at right time

 Failure to allocate skilled project manager
 Failure to allocate skilled technical and clerical staff members
 Failure to hold realistic work plan and schedule
 Poor project management
 Shortage of construction materials (especially cement)
  Idleness of machines and equipments
 Variation order
 Absence of shop drawings
 Suspension of activities
 Contractors luck of activity in the reporting period

Consultant failure
Proper consulting service is a key to the success of a construction project. Unless the
consultant provides appropriate service, the project will not end up within the specified
schedule. Ways in which the consultant is affecting the project includes:
 Specify unachievable specification
 Delay in approving drawings
 Failure to give written instructions
 Design change
 Financial compensations as a result of design change

Client’s failure
Because of the way construction works are carried out, there will be some occasions when
problems occur due to circumstances of the client such as
 Change of scope of work
 Right of way problems

Impacts of the problems faced on the project

Early completed road projects are necessary for economic, social and political reasons. The
primary purposes of constructing roads are to contribute to the overall economic
development of the country by providing access to economic potential areas, providing
access to economic and strategic areas, like ports and reduction of vehicle operating and
maintenance costs etc…And, also one of the ultimate impacts of the problems of the project
progress in terms of social aspect is the long distance people travel and the time they spent
increase.
The most significant effect lays on the economy of the country in such a way that,

 Increased wastage of scarce recourses such as material, workman ship, equipment,

and financial recourses and infrastructure provisions remain sluggish.
 The cumulative effect is decreasing the GDP growth of the country.

Actions taken by the parties

 The contractor was advised to restructure its’ staffing with the objective of
formulating a management team that is capable of planning, directing, and
monitoring the project.
 The consultant was trying to approve drawings timely, give instructions in written
form and avoid giving erratic instruction,
  The client was also trying to remove obstruction before the contractor commences
any work on that area.

CASE STUDY 3 – LIDETA LIGHT TIMBAHO MONOPOLE TELE. BUS NO.3

MAZORIA and BISTRATE GEBRIEL ROAD PROJECT

Project information
Project name --------------------------------LIDETA LIGHT TIMBAHO MONOPOLE TELE.
BUS NO.3 MAZORIA and BISTRATE GEBRIEL
ROAD PROJECT
Project length---------------------------------4.64 km
Type of construction------------------------upgrading road construction
Contractor --------------------------- --------CRBC Addis engineering PLC.
Consultant------------------------------------BEZA consulting engineers PLC.
Employer--------------------------------------AACRA
Source of fund ------------------------------The government of Ethiopia
Contract type---------------------------------unit price
Contract amount (including VAT) -------89,490,472.54ETB
Construction contract signed-------------July 06, 2007
Contract commencement date-----------July 29, 2007
Construction period-------------------------600 calendar days
Current status---------------------------------completed

Physical progress of the work

The consultant had under taken major activities in the field of design, material testing,
checking and approval of working drawings and contract administration tasks and
tremendous effort in solving right of way problems with different utility owners and
coordination with the client was also under taken.

The activities under taken on the reporting period of July 2009 were trench excavation
for cable laying, foundation work of poles and pole erection. The contractor has laid
PVC ducts for cable laying. The walkway work includes, rework for the sub base on the
trench for street lighting line, sub base work for the bridge approach areas and tiles
laying.

There was no significant excavation work on site and no drainage work as well on the
month July 2009. Most of the inspections were made visually. The financial progress of
the work so far achieved for that month was estimated to be 94.78% and the physical
progress is estimated to be 100.51%.

Major problems encountered in the project

Addis Ababa is both the political and economic center of the country, it is the seat of the
OAU and other important international organization. These facts the infrastructure of the
city is absolutely inadequate to fulfill the existing demand of the city.
But some problems are occurring that are affecting the city administration from fulfilling
these needs of the city, which can be classified as;

Client’s failure
The right of way problem is complex due to the presence of different holders such as
utility owners, and residents whose property is affected by the project. The major right of
way problems are those related to utility installation and demolition of some houses.
Major problems so far are the infringements and destruction of the walkway by
contractors like Teklebrhan Ambaye. Other problems encountered at this project by the
client include;
 Obstructions
 Slow decision making
 Owner’s poor communication with the various parties
 Delay in approving extension of required guarantees and insurances
 Delay in settlement of contractor’s claim by employer

Consultant’s failure
The main objective of the consultancy service as clearly described in the T.O.R. on the
contract was to monitor the contractor’s program, progress and expenditure and inspect
that the predetermined work schedule, plans and specifications attained, inspect,
approve work methods and all materials in the work place are in accordance to the
contract, liaise with the respective city administration office to ensure the assessment
and compensation of utility lines and buildings within right of way is done.

But the consultant has failed to fulfill his responsibilities therefore the progress on the
project has been affected;
 Late approval of work methodologies
 Improper follow up report to the client
 Late approval of interim payment certificates
 Design change
 Indefinite proposals which lack effort and commitment

Contractor’s failure
There is additional work issued to the contractor since the start of the project like split
level, retaining walls, barriers which led to variation
 Didn’t submit provisional acceptance as mentioned on the general condition of
the contract
 Unexpected work stoppage
 Not conducting tests according to the contract
 Failure to follow procedures and hasty works
 Poor site management and supervision by contractor
 Improper construction method implemented by the contractor
Impacts of the problems faced on the project

Addis Ababa is both the political and economic center of the country; it is the seat of the
OAU and other important international organization. These facts the infrastructure of the
city is absolutely inadequate to fulfill the existing demand of the city.

The financial progress of the work so far achieved for that month was estimated to be
94.78% and the physical progress is estimated to be 100.51%. But due to the above
mentioned problems on the project the completion period was elapsed 100%.

Actions taken by the parties

 Approving requests on the test results so that the material can be used for the
captioned project in sooner time possible.
 New items have been encountered and the contractor was advised to present its
quotation and accordingly they have submitted and were reviewed.
 The contractor was advised to restructure its’ staffing with the objective of
formulating a management team that is capable of planning, directing, and
monitoring the project.
 Generally, the project is far behind the schedule and hence there will be a need
for revised wok program of the schedule that is expected to improve the progress
of critical activities of the project as well as that comprises of resource plans
which will enable the early completion of the project.

CASE STUDY 4 - AYER TENA- ALEM BANK-YESHI DEBELE ROAD

PROJECT

Project name-------------------------------- AYER TENA- ALEM BANK-YESHI DEBELE ROAD

PROJECT
Project length-------------------------------5.18 km
Type of construction-----------------------New road construction
Contractor --------------------------- ------Hazii General Construction and trading.
Consultant-----------------------------------Eng. zewdie Eskinder & co.p.l.c
Employer------------------------------------AACRA
Source of fund ---------------------------- -Addis Ababa city Administration
Contract type--------------------------------unit price
Contract amount (including contingency)-----335,781,291.29 ETB
Construction contract signed-----------June 09, 2006
Contract commencement date---------August 24, 2008
Construction period-----------------------730 calendar days
Completion date 14 august 2010
Current status-----------------------------under construction

Physical progress of the work

The to-date slippage of the project is Birr 120,77,432.29 which is 71.02%from the total
planned workload. The time elapsed to-date is 1212 calendar days which, is 86.76% of
the project contract period. The slippage in terms of time is 860.76 calendar days. The
major delay is in Earthworks, Minor and Major structures, pavement activities, walkway
and incidentals
In general, the to-date performance is very poor and the project completion date will be
expired on june12, 2012

Major problems encountered in the project

Ayer Tena- Alem Bank-yeshi Debele Road Project completion time expired two time at
August 14, 2010 and at July 16, 2011. It seems it is going to expired for the third time at
June 12,2012 for this delay there are different problems from the three parties.

Contractor related problems

The contractor takes the major responsibilities for the project delay because even if they
asked for the time extension two times they are still not doing as the schedule for instant
the previously extended time expired withput the contractor submitting the total revised
work schedule. They also have
 Cash flow problem
 Contractors inefficiency
 Poor site coordination
 Lack of necessary resources like, Equipment, manpower, material
Consultant related problems
 There was a variation of works like hard rock excavation on side drain and other
different points
 New item of works have been encountered
Client related problems
 Right of way problems at different stations
 Variation

Impacts of the problems faced on the project
 Change in the schedule of work
 Completion schedule delay
 Increase in overhead expenses
 Hiring new professionals

CASE STUDY 5 - AU JUNCTION-PUSHKIN SQUARE-MEKANISA RING ROAD

ROUND ABOUT PROJECT
A road project with a total length of 5.2km which has 30m width. The client is ACCRA.
Initially the contract was awarded to Berta construction. The contract commencement
date was on June 2006 and the contract amount was ETB 77,618,034.43 with a
contract period of 540 calendar days. But after one year from the commencement date
the contractor completed only 5% of the overall works due to internal capabilities
reasons. This delay pushed the employer to break the contract between them and make
a new agreement with another contractor called CRBC. The new contract has an
amount of ETB 128,678,225.22 which was signed on july 6,2007 with a contract period
of 360 calendar days.
Project information

Project length-----------------------------5.2 km
Type of construction---------------------upgrading the existing road
Contractor --------------------------- ----- first Berta construction then CRBC Addis
Engineering
Employer-----------------------------------AACRA
Consultant----------------------------------united consulting Engineers Plc
Source of fund ---------------------------- The federal government of Ethiopia, Addis
Ababa city Administration
Contract type------------------------------ item rate measurement
Contract amount (without VAT) -----128,678,225.22 ETB
Construction contract signed-----------June , 2006
Contract commencement date--------- signing date of the contract
Construction period-----------------------360 calendar days
Completion date 14 august 2010
Current status-----------------------------Completed

Physical progress of the work

The first contractor (Berta construction) after one year from the commencement date
the contractor completed only 5% of the overall works due to internal capabilities
reasons
The total Project time elapsed is 987 calendar days which is 274.17 % and very slow
project at especially at early stage

Major problems encountered in the project

The client wants to finish the work within 365 calendar days but due to different reasons
the project delays more than the construction period. All parties had their own
contribution for this delay.

Contractor related problems

Contractor in capabilities
Consultant related problems

During the construction of the project the following major design changes has been
made from the original design. The first major change was that the Pushkin roundabout
was changed to interchange. Also the AU junction was redesigned from T-connection to
a roundabout and finally the Mekanisa Ring road Roundabout road project was
redesigned these change others in consultant side was the problem
 Late approval of payment
 Design change

Client related problems

There was additional work issued to the contractor since the start of the project like split
level such as retaining walls, barrier, Abo mazoria roundabout, AU round and additional
depth of height retaining wall. These additional work incurred variation amounting to
over ETB7, 208,820.60 other problem like:
 Right of way
 Addition of work
 Late payment
 Change order (price escalation)
 Poor communication with other government companies like EEPCO
Impacts of the problem
 Delay in project completion time
 Contract breakage
 Contract cost increment
 The project encountered additional 31,371,774.78 birr cost which is 24.38% of
the original cost and 240 calendar days delay,

When we see the project at it should completed before twenty one months The total
financial work was 128.7 million and the amount executed at that time was
136,794,211.81 birr which is 6% greater which leads to Increase in total project cost

 Increase in overhead expenses

 Dispute between owners and contractors
Discussion on the case studies

It is clearly evident that the project has been delayed due to different reasons
mentioned above. Due to such reasons employer’s needs, economical development of
the country and social benefits of the society have been greatly affected.

Right of way is the major problem occurring on most of the case studies. The
responsible for the right of way problem is the employer due to compensation and other
reason it slow down the construction productivity. The other problem encountered is
slowness in decision making during payment and different changes approval by the
consultant. And also variation of works after the constriction started, design change
problems, Unclear and in adequate details in drawings and In adequate investigation by
the designer during the design phase were also parts of the major problems caused by
the consultant.

On the other hand the contractor seems to have the most problems because the
employers break the contract with some of the contractors because of delay. One of the
major problem caused by the contractor was cash flow(financial) problem this is occur
because they use ones project advance payment to other project. The next problem
was poor site and project management: this is because luck of knowledge of their
assigned person. Contractor inefficiency, being late in material testing and machineries
shortage are the other problems by the contractors. Poor communication with
professions from design stage to completion time was a problem by all parties.

The above problems in Addis Ababa road projects have their own impacts for the
employer, contractors as well as for the end users and also it affect the growth of the
city. One of the impacts that affect the employer is delay in project completion time the
other is increase in the total project cost due to new contract or additional payment for
the contractor. When we see the impact in the contractors side their overhead expense
increase due to the enlargement of the project time. Also there were Changes on the
schedule of work. The other impact was dispute between the employer and the
contractor and degradation of work qualities.
There were different mechanisms taken by the parties to minimize the impacts caused
by the problems. Such as revising the contract and schedule, breaking contract
between parties and Continuous coordination and direct communication