FACTORS AFFECTING PERFORMANCE OF PUBLIC BUILDING CONSTRUCTION PROJECTS; IN CASE OF ARSI ZONE.

Abstract

The construction industry plays an indispensable role in the Ethiopian economy, and is a significant contributor to economic growth. However, several challenges have been recognized as confronting and influencing the performance, development and growth of Ethiopian construction industry. The objective of this study wastoexamineFactors affecting performanceofpublicbuildingconstructionin Arsi zone Construction projects as a case study. The research was primarily based on primary data collected through self-administered questionnaire.Atotal of 109 questionnaires were distributed to selected employee of the projects whichconstituted response rate of (100) or 91% and this was adequate for statistical generalization of the study findings. The data was displayed by use of charts and tables. The researcher adopted quantitative approach to research. In this study, explanatory anddescriptiveresearch method were used. These types of research method help the researcher describe the actual performance indicators and the variables or factors affecting construction project performance of public building construction projects in Arsi zone. The researcher further employed a multiple linear regression model to analyse the factors affecting the performance of projects in Arsi Zone. The regression result revealed resources, stakeholder, and quality related factors positively and significantly influenced the project cost performance but procurement management related factors were found positive but not significant factor influencing the cost performance of project. The researcher based on finding suggest that the projects need to give more emphasis on resource and stakeholder management to enhance project performance.