ASSESMENT ON DELAY HANDLING PRACTICE IN PUBLIC BIULDING

PROJECTS OF SNNPRS

MSc. THESIS

RAHEL NEGUSSE

HAWASSA UNIVERSITY, HAWASSA, ETHIOPIA

OCTOBER, 2019
 ASSESMENT ON DELAY HANDLING PRACTICE IN PUBLIC BIULDING
PROJECTS OF SNNPRS

A THESIS SUBMITTED TO THE DEPARTMENT OF CIVIL ENGINEERING

HAWASSA INSTITUTE OF TECHNOLOGY,
SCHOOL OF GRADUATE STUDIES
HAWASSA UNIVERSITY
HAWASSA, ETHIOPIA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE

OF
MASTERS OF SCIENCE IN CIVIL ENGINEERING
(CONSTRUCTION TECHNOLOGY AND MANAGEMENT)

OCTOBER, 2019

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 SCHOOL OF GRADUATE STUDIES
HAWASSA UNIVERSITY
CO-ADVISOR’S APPROVAL SHEET
This is to certify that the thesis entitled “Assessment on delay handling practice in public
building project of SNNPRS” submitted in partial fulfillment of the requirements for the
degree of Masters of Science with specialization in construction technology and
management the Graduate Program of the School of Civil Engineering and has been carried
out by Rahel Negusse, under my supervision. Therefore, I recommend that the student has
fulfilled the requirements and hence, hereby can submit the thesis to the school.

Daniel Alemayehu (MSC.)

_________________ ____________________ _________________

Co- Advisor Signature Date

 SCHOOL OF GRADUATE STUDIES
HAWASSA UNIVERSITY
EXAMINER’S APPROVAL SHEET
We, the undersigned, members of the Board of Examiners of the final Open Defense by Rahel
Negusse, have read and evaluated this thesis entitled “Assessment on delay handling practice
in public building project of SNNPRS”, and examined the candidate. This is, therefore, to
certify that the thesis has been accepted in partial fulfillment of the requirement for the Degree of
Masters of Science in Civil Engineering (Construction Technology and Management).

_________________ ___________________ ________________

Advisor Signature Date

_________________ ___________________ ________________

Internal Examiner Signature Date

_________________ ___________________ ________________

External Examiner Signature Date

_________________ ___________________ ________________

Chair Person Signature Date

________________ ___________________ ________________

SGS Approval Signature Date

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 Assessment on delay handling practice on public building projects of SNNPRS
2019
DECLARATION

I hereby declare that this M.Sc. thesis work is my original work and has not been presented for a
degree in any other university, and all sources of material used for this thesis have been duly
acknowledged.

Name: - Rahel Negusse

Signature: - _______________

Place: - School of Civil Engineering, Hawassa University, Hawassa, Ethiopia.

Date: - October, 2019

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ACKNOWLEDGMENT

First of all, I would like to thank the almighty God who helped me in all aspects of my life and
for enabling me to go one step up in my academic career. Next I would like to express my
deepest gratitude to my advisor Dr. Girmay Kahssay for the maximum and expeditious support
he offered as part of his supervision in the preparation of this research paper. I would also like to
express my appreciation to my co advisor Daniel Alemayehu for his grater support on each step
of progress of the research and he offered as part of his supervision in the preparation of this
research paper.

I would also like to express my appreciation to all organizations and individuals who contributed
directly or indirectly to this thesis work and provided the necessary support for the realization of
this thesis. Especial thanks are forwarded to contractors who sacrificed their precious time in
filling the questionnaires. I also owe a profound appreciation and gratitude to Hawassa
University civil engineering department and special thanks to my sponsor Ethiopian Road
Authority for giving me this huge opportunity to join this program. Finally I would like to pay
special thanks to my family and friends who stood by my side throughout this journey and gave
me confidence to undergo challenges.

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Contents

ACKNOWLEDGMENT .................................................................................................................................. i
ABBREVIATIONS....................................................................................................................................... vii
ABSTRACT ............................................................................................................................................... viii
CHAPTER ONE ............................................................................................................................................ 1
INTRODUCTION ......................................................................................................................................... 1
1.1 Background of the study .................................................................................................................. 1
1.2 Statement of the problem ............................................................................................................... 2
1.3 objective of the study ...................................................................................................................... 3
1.3.1 General objective ...................................................................................................................... 3
1.3.2 Specific Objective ...................................................................................................................... 3
1.4 Significance of the study .................................................................................................................. 3
1.5 Research question ........................................................................................................................... 4
1.6 Scope of the study ........................................................................................................................... 4
1.7 Organization of the study................................................................................................................. 5
CHAPTER TWO ........................................................................................................................................... 6
LITERATURE REVIEW.................................................................................................................................. 6
2.2 Definition ......................................................................................................................................... 6
2.1.1 Public project ............................................................................................................................ 6
2.1.2 Construction Delay .................................................................................................................... 6
2.2 Types of Delays Several studies by numerous researchers like Michael2017) grouped the delay in
the following broad categories depending on how they operate contractually: .................................... 8
2.2.1 Non-excusable Delays ............................................................................................................... 8
2.2.2 Excusable Delays ....................................................................................................................... 9
2.2.3 Non-compensable Excusable Delays ......................................................................................... 9
2.2.4 Compensable Excusable Delays ............................................................................................... 10
2.2.5 Concurrent Delays ................................................................................................................... 11
2.2.6 Critical delays .......................................................................................................................... 11
2.2.7 Non-critical delays................................................................................................................... 11
2.3 Effect of delays ............................................................................................................................. 12

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2.4 Delay Notice................................................................................................................................... 13
2.4.1 Delay Notice as per PPA .......................................................................................................... 15
2.4.2 Delay Notice as per civil code .................................................................................................. 15
2.5 Extension of time ........................................................................................................................... 16
2.5.1 Extension of time Clause: ........................................................................................................ 16
2.6. Liquidated damage ....................................................................................................................... 20
2.6.1 Liquidated Damages Clause:.................................................................................................... 21
2.6.2 Enforcement of Liquidated Damage ........................................................................................ 24
2.7 Gap Identification .......................................................................................................................... 24
CHAPTER THREE ...................................................................................................................................... 26
3. RESEARCH METHODOLOGY ................................................................................................................. 26
3.1 Introduction ................................................................................................................................... 26
3.2 Research Design ............................................................................................................................. 27
3.3 Research Type ................................................................................................................................ 27
3.4 Sampling Technique ....................................................................................................................... 28
3.5 Study area ...................................................................................................................................... 28
3.6 Data collection method.................................................................................................................. 29
3.6.1 Questionnaire design .............................................................................................................. 30
3.7 Ethical Considerations.................................................................................................................... 31
3.8 Data processing and analysis ......................................................................................................... 31
3.8.1 Reliability test ......................................................................................................................... 31
3.8.2 Correlation test ....................................................................................................................... 32
3.9 Pilot study ...................................................................................................................................... 33
3.10 Summary...................................................................................................................................... 33
CHAPTER FOUR ........................................................................................................................................ 34
4. RESULT AND DISCUSSION .................................................................................................................... 34
4.1 Introduction ................................................................................................................................... 34
4.2 Questionnaire Response Rate ........................................................................................................ 34
4.3 Respondents position in the organization ...................................................................................... 35
4.4 Educational level of respondents ................................................................................................... 36
4.5 Work experience of respondents ................................................................................................... 37

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4.6 Delay handling practice .................................................................................................................. 38
4.6.1 Projects faced delay ................................................................................................................ 38
4.6.2 Type of condition of contact ................................................................................................... 39
4.6.3 Occasion to notify delay .......................................................................................................... 39
4.6.4 Response of consultant for extension of time request ............................................................ 40
4.6.5 Acceptance of client to time claims after approval.................................................................. 41
4.6.6 Fairness of delay analysis technique ....................................................................................... 41
4.6.7 Factor affect delay evaluation technique ................................................................................ 42
4.6.8 Extent to extend project completion time by employer .......................................................... 44
4.6.9 Submission of extension of time claim .................................................................................... 45
4.6.10 Reasons for delays in submitting the details of claims for extension of time......................... 45
4.6.11 Relevance of LD provisions in construction contracts ............................................................ 48
4.6.12 Enforcement of liquidated damage ....................................................................................... 49
4.6.13 Reasons for non-enforcement of Liquidated Damage ........................................................... 50
4.7 Delay handling practice compared with accepted condition of contract ........................................ 51
4.8 Effect of delay handling practice .................................................................................................... 54
4.9 CASE STUDY RESULT....................................................................................................................... 56
CHAPTER FIVE .......................................................................................................................................... 62
5. CONCLUSION AND RECOMMENDATION .............................................................................................. 62
5.1 Conclusion ..................................................................................................................................... 62
5.2 Recommendation .......................................................................................................................... 64
REFERENCES ............................................................................................................................................ 65
APPENDEX I- QUESTIONNAIRE ................................................................................................................. 70
APPENDIX II- CASE STUDY: INTERVIEW .................................................................................................... 76
APPENDIX III - PROJECT DISCRIPTION....................................................................................................... 77

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LIST OF FIGURE
Figure 2.1: - Effects of delay................................................................................................... 13
Figure 3.1; Map of study area ................................................................................................. 29
Figure 4.2; Respondent’s educational level.............................................................................. 37
Figure 4.3; Projects faced delay .............................................................................................. 38
Figure 4.4; Fairness of delay analysis technique ...................................................................... 42
Figure 4.5; Relevance of LD provision in construction contract ............................................... 48

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LIST OF TABLE

Table 4.1 Summary of overall Questionnaire response level .................................................... 35

Table 4.2 Experience of respondents ....................................................................................... 37
Table 4.3 type of condition of contract .................................................................................... 39
Table 4.4occasion to notify delay ............................................................................................ 40
Table 4.5. Response of consultant for extension of time request ............................................... 40
Table 4.6. Acceptance of client to time claims after approval ................................................... 41
Table 4.7: Factor affect delay evaluation technique ................................................................. 43
Table 4.8: Spearman’s coefficient of correlation ...................................................................... 43
Table 4.9: - Extent employer extend project completion time ................................................... 44
Table 4.10. Late submission of extension of time claim ........................................................... 45
Table 4.11. Reasons for delays in submitting the details of claims for extension of time ........... 46
Table 4. 12; Crronbach Alpha coefficient Test Result on the Reasons for delays in submitting the
details of claims for extension of time ..................................................................................... 47
Table 4.13: Spearman’s coefficient of correlation Test Result on the Reasons for delays in
submitting the details of claims for extension of time .............................................................. 47
Table 4.14 Enforceability of liquidated damage ....................................................................... 49
Table 4.15 Reasons for non-enforcement of liquidated damage ................................................ 50
Table 4.16 Response of contractor compared with the contract ................................................ 51
Table 4.17 Response of consultant compared with the contract ................................................ 52
Table 4.18 Response of client compared with the contract ....................................................... 53
Table 4.19 the effect of delay handling practice ....................................................................... 55
Table 4:20 Project discription ................................................................................................. 57
Table 4.21 Approved extension of time for case 1 ................................................................... 58
Table 4.22 Approved extension of time for case 2 ................................................................... 60

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ABBREVIATIONS

BC Building Contractor

ECC Ethiopian Civil Code

EOT Extension of Time

FIDIC Federation Internationale des Ingenieurs Conseils

GC General Contractor

LD Liquidated Damage

MoWUD Ministry Of Works and Urban Development

PPA Public Procurement Agency

SCC special condition of contract

SNNPRS South Nation Nationalities Peoples Regional State

SPSS Scientific Package for Social Science

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ABSTRACT

Construction delay is a common situation in most construction project. A construction project is

considered as successful when it accomplished and hand over to the owner within time, costs,
specifications and quality required and to the satisfaction of stakeholders. When the projects are
delayed, it will invite to additional time and cost. The main objective of this research is to assess
delay handling practice in public building project in south nation nationalities and regional state
of Ethiopia. This study is vital in adding knowledge and understanding about the current
practice of enforcing liquidated damage on public building project of SNNPR . To achieve
the study objectives, a critical review of relevant literature was done combined with
questionnaire. Case studies also carried out to show the gap between the existing delay handling
practice and the practice recommended in literatures. The research design was quantitative,
where the data was collected from clients, consultants and contractors. The data obtained were
analyzed using the Statistical Program for Social Scientists (SPSS). The findings of this research
indicate that, most contractors notify delay after project completion date is over, detail for time
claim request by contractors is not submitted on time, no limit for clients to grant time extension
to the contractor and public owners did not enforce the liquidated damage clauses, 51.7% of
contractors and 66.7% of consultant and 100% of client responded that liquidated damage is not
enforceable in accordance with the contract agreement. Inability of clients to study the contract
documents very well and ignorance of liquidated damage provision by sympathetic clients are
the main reasons for non-enforcement of liquidated damage. All contracting parties must be
accountable for their responsibility and also be ethical for their work in order to handle delay
issues without interference of friendship and corruption.

Key Words: Delay handling, Conditions of Contract, Extension of time, Liquidated damage

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CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The increasing demand for public construction indicates the significance of the industry to
the country‘s social and economic development Alex (2016). The construction industry is
one of the industries that cannot be free from problem or challenges. One of the challenges
faced by the industry is project delay. The phenomenon of delays is being faced by the
construction industry globally and such delays are considered to be most recurring issues in
the construction sector (Tumi, 2009).
Delay may be defined as an event which results in or causes an extension of time to
complete a whole or some part of a project Sambasivan (2007). Fugar (2010) define delay
as an overrun in time which has been specified for completion of work in the contract
agreement or overrun in time which has been granted as an extension. Delay may also be
defined as the time during which some part of the construction project has been extended or
not performed due to an unanticipated circumstance (Tumi, 2009).
A construction project is commonly regarded as successful when it is completed on schedule
and within the agreed budget, with the highest quality and softest manner but most
Construction projects experience delays in their completion due to various reasons in
Ethiopia. Since construction project delay is the common issue in the industry and has
adverse effect on the project it requires proper handling. Handling of delay include, the way
in which extension of time is granted for the delayed project and also the degree of
enforcing liquidated damage clauses which is written under the contract agreement. After
delay is happened it must be handled according to the condition of contract.

Failure to complete the construction works according to its prescribed schedule became the
reason for the existence of extension of time clause in the contract. Extension of time is the
additional time granted to the contractor to relieve it from liability for liquidated damages
under the contract (Tesfaye, 2016).

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As cited by Tesfaye, (2016), James (2005) found that An EOT provision is inserted in a
construction contract for the benefit of both the employer and the contractor, its insertion is
primarily for the advantage of the employer. If there was no EOT provision, once the
employer had caused delay to completion of the works, it would no longer be able to reply
on the liquidated damages provision in the contract. In such circumstances, the contractor’s
obligation would be to complete within a reasonable time in all of the circumstances.

Poor Delays handling practice will lead the project to delay from its completion date. Delay
problems are cause due to the disputes, cost overrun, time overrun negotiation total
desertion, Litigation, lawsuit, abandonment etc. Tusharr (2016). Because of these issues
project members concur for the cases for the extra capital and additional time connected
with construction delay. The consequences of delay are different for different project
participants which also depend on the type of project. The general consequences are cost
overrun, time overrun etc. For the owner/client delay is the loss of money, loss of time, loss
of other facilities etc. For the contractor, delay means the loss of wealth for more
expenditure on equipment’s, other materials and for hiring the skilled labor.

Once a project is delayed, it has a negative impact on the concerned parties and it must be
handled properly to manage it as much as possible to prevent the effects on the overall
project. There must be mechanisms for handling of delay in construction. If the delay is not
identified and the corrective project management decision is not taken in time a project may
incur extra cost and extension of project time, which gives rise to dissatisfaction to all the
parties involved and nowadays it’s becoming a major obstruction for their development for
developing countries like Ethiopia. (Werku, 2016)

1.2 Statement of the problem

Delay in construction projects has been a major issue in the construction industry. The
government spends huge amount of money in the construction sector in an attempt to carry
out economic development. Majority of this fund is set aside for the construction of roads,
railways, hospitals, schools, residential and nonresidential buildings and airports. If these
projects are delayed, it will not only slow down economic growth in the country but it will

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also increase government expenditures. The result will be wastage of country’s resources
that could have been used to for other purposes. Delay has also led to a lot of disputes
amongst stakeholders in the construction industry. One of significant factor which
contributes to this problem is lack of proper project delay handling practice.

A lot of researches have done about the fundamental cause of delay in construction and
sufficient literatures are written. But so far adequate researches are not done about the delay
handling practice related with application of delay clauses in the condition of contract i.e.
notification of delay ,response of client for extension of time request ,submission of
extension of time claim and enforcement of liquidated damage. This paper seeks to address
the practice of delay handling practice and identify whether the practice confront with accept
contractual procedure or not.

1.3 objective of the study

1.3.1 General objective

The main aim of the study is to assess the delay handling practice in public building project
of southern nation nationalities and peoples’ region of Ethiopia.

1.3.2 Specific Objective

The Specific objective of the research is:-

1. To assess delay handling practice of public building projects in SNNPR.
2. To compare and contrast the current delay handling Practice with contractual
procedures
3. To investigate the impact of delay handling practice on the overall projects.

1.4 Significance of the study

The findings from this paper will helps for construction project stakeholders, client,
contractors and consultants. The effective understanding of delay handling procedures will
be vital to prevent contractors and clients from entering in to dispute and it helps contractor

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to escape from loss by liquidated damage. It also helps them to know the effect of delay
handling practice and on the overall project.

This thesis will also help for those who read the paper by making them aware of the right
and contractually accepted project delay handling approaches to minimize the effect of
delay. This study will also add knowledge and understanding about the current
practice of enforcing liquidated damage on public building project of SNNPR.

Thus, this study is considered significant for the following reasons.

This study will be important to building professionals and the public because it will create
awareness on how inadequacies in delay handling can adversely affect project.

This study will also help contractors, clients, consultants and all parties involved in
construction projects about ways of improving their current practice of delay handling.

1.5 Research question

The key questions which going to be answered through this research will be the following: -
I. What is the current delay handling practice in public building project of SNNPR?
II. What is contractually accepted project delay handling procedures?
III. What are the gaps between the actual delay handling practice and contractually
accepted procedures?

IV. What is the impact of delay handling practice on the performance of the overall
project?

1.6 Scope of the study

Owing to the broad and complex nature of the construction industry, it is important to
identify the scope for the study. So the study will focus on public Building projects. Public
buildings are any type of building that is accessible to the public and is funded from public
sources. This thesis will only cover public building projects in selected towns of SNNPR
specifically in Hawassa, Arbaminch and Wolayita sodo, due to the accessibility of the
researcher, making the distribution and retrieval of questionnaire easier. The size of the

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targeted organization would be large class one construction companies and consulting firms
which are currently working on public building projects in the selected cities ,because those
construction firms relatively have good experience about the topic. These paper focus on
non-compensable delay.

1.7 Organization of the study

This thesis is divided into five chapters that organize, illustrate, and describe the steps taken
to meet the defined research objectives. This thesis was organized as follows: The research
paper encompasses five parts in which part one contains the introduction which tries to give
information concerning the study area and some background information on it.

Part one;-Statement of the problem discussed specific details on the major problems of the
study. The need for the study stating about the significance of the study, whereas objective
of the study forwards the general and specific goals of the study. Research questions are
made and scope of the study is stated on part one.

Part Two;- deal With literature review in which concepts on related topics is raised and
discussed, in addition to this a detailed information concerning the research topic were given
well in this section of the study.

Part three; - deals about research design and methodology

Part Four;- Which is all about presentation, analysis and interpretation of data that will be
devoted on presenting the required sufficient amount of data and then analysis of this data
has been made properly and finally based up on the presentation and analysis of those data
interpretations were given at last. This chapter also include case study result.

Part five; - Which is the final part of the research report which emphasis on giving
conclusions and finally pointing possible recommendations.

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CHAPTER TWO

LITERATURE REVIEW

2.2 Definition

2.1.1 Public project

The term public project is an ambiguous one, but in very broad terms, it refers to a project
that is financed by a government and is typically owned, and may be operated by the
government. This can include major infrastructure works such as roads, bridges, dams,
railways, tunnels, and so on, or public facilities such as hospitals, school, prisons, libraries,
leisure centers, and so on.

As public projects are generally funded by tax revenue, they are typically subject to a greater
level of scrutiny, and greater transparency is required in the bidding and contract award
procedures. Public project often publish their requirement and request bids openly, with
received bids considered in open and transparent way. The government can also stipulate
certain criteria that a supplier must fulfill in order to be awarded a public contract, such as;
minimum wage levels, reporting procedures, and so on (Design building, 2019).

2.1.2 Construction Delay

According to Merriam dictionary delay means retard, slow, slacken, detain mean to cause to
be late or behind in movement or progress. Delay implies a holding back, usually by
interference, from completion or arrival.

Construction delay is a situation when the actual progress of a construction project is slower
than the planned schedule or late completion of the projects. Delay is acknowledged as the
most common, costly, complex and risky problem encountered in construction projects
(Cheung, 2001). Construction delay is defined as a time overrun either beyond the contract
date or beyond the date that the parties have agreed upon for the delivery of the project
(Hamzah, 2011).Time is the essence of a construction contract. When a contractor fails to

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complete the project within the contract period, the delay becomes the reality of the
project.

Delay also defined as the principal dimension measured by schedules (McGraw-Hill, 1998).
According to this writer delay to the private owner mean, a loss of revenues through
the resulting lack of production facilities and rentable space, as well as through continuing
dependence on present facilities. To the public owner, it can mean that a building or facility
is not available for use at the planned time. Finally, to the contractor, delay means higher
overhead costs that result from the longer construction period, higher prices for materials
resulting from inflation, and escalation costs that are due to labor cost increases.

According Musa (2012) Delays of a construction project can be defined as the late
completion of works as compared to the planned schedule or contract schedule. Projects can
be delayed due to number of reasons that may be due to the client, the contractor, acts of
God, or a third party. They may occur early or later in the project development, alone, or
with other delays. Delays can be minimized only when their cause are identified. Delay is a
situation when the contactor and/or the project owner contribute jointly or separately in
making the project, implementation fails to finish on time by exceeded the planned period of
implementation or exceeded the stipulated period of contract (Aibinu, 2002).

Sambasivan (2007) defined delay as a situation in which project due to some causes related
to the contractor, consultant and client or other causes has not been finished in agreed
period. Delay in general could be defined as “to act slower than desired/planned” (Khaled,
2014).

Delays in construction projects are known to be among the commonest problem facing
the industry as it causes a number of negative impact on both the project itself and the
parties involved. A successful construction project is accomplished when the project is
completed and hand over to the owner within time, costs, specifications and quality required
and to the satisfaction of stakeholders (Sullivan, 1986). When a project is delayed, it will
cause the resources employed to be exceeded as what has been planned. This extra use of
resources will lead to disputes and claims arise as extra costs will be incurred to complete

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the project by the participating parties. As (Werku, 2016) identified that delay in
construction project is considered one of the most common problems causing a multitude
negative effect on the project and its participating parties. Delays are insidious often
resulting in time overrun, cost overrun, disputes, litigation, and complete abandonment of
projects.

2.2 Types of Delays

Several studies by numerous researchers like Michael2017) grouped the delay in the

following broad categories depending on how they operate contractually:

 non-excusable delays;
 Excusable delay;
 non-compensable excusable delays;
 compensable excusable delays; and
 Concurrent delays.

In addition, Trauneret et.al. (2009) came out with an opinion based on study conducted that
construction delays could be classified as: non-excusable or excusable, non-concurrent or
concurrent, non-critical or critical, and non-compensable or compensable.

2.2.1 Non-excusable Delays

Non-excusable delays are delays, that occurred due to negligence to fulfill contractual
obligation and are within the control of the contracting parties which the Contractor either
causes or assumes the risk for. These delays might be the results of underestimates of
productivity, inadequate scheduling or mismanagement, construction mistakes, weather,
equipment breakdowns, staffing problems, or mere bad luck. Such delays are inherently the
Contractor’s responsibility and no relief is allowed. These delays are within the control of
the Contractor or are foreseeable (Ahmed, 2014).

As the study of lepage (2017) indicates, delayed mobilization, delayed submission of

submittals, overall late performance and execution, late performance of subcontractors, late

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performance by suppliers, faulty workmanship by the contractor or subcontractor and a

project specific labor strike caused by either the contractor’s unwillingness to negotiate or
by unfair job practices are some examples of non-excusable delay.

2.2.2 Excusable Delays

Excusable delays are delays that occurred due to causes which are beyond the control of
project doer. If delays are caused by project owners, the contractor or the consultant or the
supplier is directly justified for the effects on delay of the project. Force Majeure will also
be one of the causes for justifiable delay (Wubishet, 2006).

Delays resulting from the following events would be considered excusable:

a. General labor strikes

b. Fires
c. Floods
d. Acts of God
e. Owner-directed changes
f. Errors and omissions in the plans and specifications
g. Differing site conditions or concealed conditions
h. Unusually severe weather
i. Intervention by outside agencies
j. Lack of action by government bodies, such as building inspection
They are broken down further into compensable or non-compensable Excusable delays

2.2.3 Non-compensable Excusable Delays

When a delay is caused by factors that are not foreseeable, beyond the Contractor’s
reasonable control and not attributable to the Contractor’s fault or negligence, it may be
“excusable”. This term has the implied meaning that neither party is at fault under the terms
of the contract and has agreed to share the risk and consequences when excusable events
occur. The Contractor will not receive compensation for the cost of delay, but he will be

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entitled for an additional time to complete his work and is relieved from any contractually
imposed liquidated damages for the period of delay.

2.2.4 Compensable Excusable Delays

These are delays for which the contractor is entitled not only to an extension of time but also
to adjustment for any increase in cost caused by the delay. Excusable, compensable delays
are classified as “Owner Responsible Delays”. An excusable, compensable delay, in
addition to granting time extension, warrant monetary compensation to the contractor for
extra costs incurred – commonly referred to as delay damages. Generally, compensable
delays constitute a delaying event that is within the control of, is the fault of, or is due to the
negligence of the owner. A compensable delay occurs due to :-

• Owner’s failure to furnish the site to the contractor by an agreed date

• Faulty design

• Incomplete drawings and specifications

• Changes in scope

• Suspension of work

• Differing site conditions

• Late delivery of owner-supplied materials

The study of Ahmed (2014) found that, In addition to the compensable delays that result
from contract changes by Change Notice, there are compensable delays that can arise in
other ways. Such compensable delays are excusable delays, suspensions, or interruptions to
all or part of the work caused by an act or failure to act by the Owner resulting from
Owner’s breach of an obligation, stated or implied, in the contract. If the delay is
compensable, then the Contractor is entitled not only to an extension of time but also to an
adjustment for any increase in costs caused by the delay. Owner-issued contracts specifically
address some potential compensable delays and provide equitable adjustments.

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2.2.5 Concurrent Delays

Concurrent delays occur when both Owner and the Contractor are responsible for the delay.
Generally, if the delays are inextricably intertwined, neither the Contractor can be held
responsible for the delay (forced to accelerate, or be liable for liquidated damages) nor can
he recover the delay damages from the Owner (Ahmed, 2014).

There are many moving parts between an owner and a contractor (and subs or suppliers) on
a construction project and, at times, a concurrent delay can occur. This type of schedule
delay happens when two or more parties are at fault. The complexity here lies in
determining to what extent each party contributed to the delay. There are some technical
methods of analyzing schedules that can assist in this determination. The overlapping of
delays makes it difficult to analyze and factors like the duration of the delay, time of
occurrence of the delay and float ownership have to be carefully considered in the technical
analysis (Lepage, 2017).

The effect of concurrent delays for the project can be assessed using that part of the work
which causes longest delay and its consideration are made as such. For instance, if a project
owner agreed to supply material and irrespective of its delay, if the project faced adverse
weather condition; the project cannot be executed. Therefore, both delays could not be
counted as serial delay but concurrent and the one that causes longer delay is considered for
time delay computations (Abebe, 2007).

2.2.6 Critical delays

Delays that result in extended project completion times are known as critical delays
(Callahan et al, 1992). In the case of excusable critical delays, the contractor will
generally be entitled to a time extension.

2.2.7 Non-critical delays

Non-critical delays are delays incurred off the critical path which do not delay
ultimate project performance Leon (1987). If the delay in this case is excusable, the

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contractor does not have the right to receive a time extension, because this type of
delay does not have an effect on the overall completion of the project. However, noncritical
delays may affect the contractor’s cost performance; in this case, the contractor may have
the right to receive additional performance costs.

2.3 Effect of delays

The research work carried out by Tushar (2016)states that there are numerous elements
bringing about deferment few of them are: some are inside the contractual worker’s
obligation and some are inside proprietor's risk. It is difficult to explain them due to the
overlapping nature of the events of which the project participants are responsible. It is found
that delay problems are cause due to the disputes, cost overrun, time overrun negotiation
total desertion, Litigation, lawsuit, abandonment etc.

A research conducted in Sudan by Mohammed (2015) also studied the effects of the delay in
the construction industry of Sudan. He discovered six possible common effects which
arising in most countries as a result of delay. These effects were; cost overrun, time overrun,
disputes, arbitration and litigation and total abandonment of project. Because of these issues
project members concurs for the cases for the extra capital and additional time connected
with construction delay.

The consequences of delay are different for different project participants which also depend
on the type of project. The general consequences are cost overrun, time overrun etc. For the
owner/client delay is the loss of money, loss of time, loss of other facilities etc. For the
contractor, delay means the loss of wealth for more expenditure on equipment’s, other
materials and for hiring the skilled labor (Tushar, 2016).

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Figure 2.1: Effects of delay (Tushar, 2016)

The study by Kikwes (2012) also revealed that effect of delay and disruption in construction
project create the following consequences; Time overrun , Cost overrun, negative social
impact , idling resources , disputes , Arbitration ,Delaying by the client to return the loans ,
Poor quality of work due to hurry , Delaying in getting profit by clients , Bankruptcy ,
Litigation , Create stress on contractors , Total abandonment ,Acceleration losses.

2.4 Delay Notice

A contractor’s notice of delays is a form of communication. It is an advice to the owner or

owner’s representative (contract administrator) or agent that something has happened or is
likely to happen that may affect the progress of work and would entitle the contractor to an
extension of time and/or compensation Ndekugri (2008). The contractor’s notice would
enable the owner consider the financial consequences Fung (2006). It would allow the
owner to consider cancellation of any directed changes causing the delay or consider
alternative instruction so as to mitigate the consequential impact on the project. Thus a

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contractor’s notice is an alert to the owner about the problem at hand. It gives the owner
opportunity to investigate and mitigate the effects of the delays event under the particular
circumstances. The purpose of a contractor’s notice is to inform the owner or the contract
administrator that a problem exists, which could entitle the Contractor to an extension of
time claims Frimpong (2003) and/or compensation (if it is provided for by the contract). A
contractor’s notice ensures that the owner is aware of the problem. It gives the owner
opportunity to take appropriate technical steps to remedy the problem Farrow (2007). Where
a delay event is unavoidable, a contractor’s timely notification of the event would,
potentially, enable the contract administrator to conduct early and contemporaneous
assessment of the contractor’s claims and its basis rather than an after-the-fact
assessment. In some standard forms of construction contract, a contractor’s notice of
delay and claims is, expressly, a condition precedent to the contractor’s claims for
extension of time and compensation (if it is allowed in the contract) so that a contractor’s
failure to comply with the written notice requirement within the time limit stipulated in
the contract would bar the contractor from entitlements to extension of time and/or
compensation .

As cited by Kingsley (2013) the employer must give the contractor a notice of non-
completion and that Liquidated Damages may be levied; the employer may then deduct
Liquidated Damages from payments otherwise due to the contractor, or recover the amount
from the contractor as a debt. If an Extension of Time (EOT) is subsequently granted in
relation to that period of delay, the employer must pay to the contractor the amount of
Liquidated Damages deducted, up to the new completion date (Eggleston, 2009). The need
to give contractually required notices to the Owner is stressed. Virtually all contract
provisions that deal with excusable and compensable delays contain a requirement for
prompt written notice of the delay to the Owner. In addition, the next schedule update
submitted to the Owner should clearly show any delays the company has experienced and
the time extensions the company is entitled to (and has requested from the owner), whether
the Owner has approved it or not. The schedule update should be accompanied by a
narrative that describes the delay and its impact in the completion of the project to the extent
known at that time.
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If the delay is non-excusable, notice to the Owner is generally not required. However,
even a non-excusable delay may have to be shown on the contractually required schedule
together with the actions the company will take to make up for the effects of the delay,
such as acceleration of the work. The contractor is always required, under the contract
clauses, to notify the employer of its intention to make a claim for time and/or money within
certain period defined in the contract. Failure by the contractor to abide with the contract
requirements for notification makes the entitlement for the claim declined (Ahmed, 2014).

2.4.1 Delay Notice as per PPA

The Contractor shall, within 15 days of becoming aware that delay may occur, notify the
Engineer of his intention to make a request for extension of the Intended Completion Date to
which he may consider himself entitled, and shall, unless otherwise agreed between the
Contractor and the Engineer, within 21 days from the notification deliver to the Engineer
full and detailed particulars of the request, in order that such request may be investigated at
the time (PPA, 2011).

This condition of contract under Clause 73.4 indicates, if the Contractor has failed to give
early notification of a delay or has failed to cooperate in dealing with a delay, the delay by
this failure shall not be considered in assessing the new intended completion date.

2.4.2 Delay Notice as per civil code

(1) The debtor shall forthwith inform the other party of the reason which prevents him from
performing his obligations.

(2) He shall be liable as though non-performance were attributable to him for any damage
caused to the other party which could have been avoided, had notice been given.(Civil
Code,1960)

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2.5 Extension of time

If the project is delayed by an event that impacts on the completion date, but is not the fault
of the contractor, then this may constitute a 'relevant event' for which the contractor may be
granted an extension of time (i.e. the completion date in the contract is adjusted). This can
have the effect of relieving the contractor from a claim of liquidated damages. (Design
building, 2019)

However, mechanisms allowing extensions of time are not simply for the contractor's
benefit. If there was no such mechanism and a delay occurred which was not
the contractor’s fault, then the contractor could no longer be required to complete
the works by the completion date and would only have to complete the works in a
'reasonable' time. With no enforceable completion date, the client would lose any ability
to claim liquidated damages for other delays that are the contractor's fault.

When delay happen, contractors would be penalized and is eligible to pay the liquidated
damages amount as agreed in the contract. In order to avoid this loss, contractors often seek
for opportunities to claim for extension of time. Therefore, effectively managing EOT will
be vital to help contractor to escape from liquidated damage (Lew yoke-lian, 2012).

2.5.1 Extension of time Clause:

2.5.1.1 Extension of time as per PPA

Clause 73.1 of PPA (2011) indicates that the Contractor may request an extension of the
Intended Completion Date if he is or will be delayed in completing the contract by any of
the following causes:

(a) Exceptional weather conditions in the Federal Democratic Republic of Ethiopia;

(b) Artificial obstructions or physical conditions which could not reasonably have been
foreseen by an experienced Contractor;

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(c) Compensation Event occurs or a change order for modification is issued which makes it
impossible for completion to be achieved by the Intended Completion Date;

(d) Administrative orders affecting the date of completion other than those arising from the

Contractor's default;

(e) Failure of the Public Body to fulfill his obligations under the Contract;

(f) Any suspension of the works which is not due to the Contractor's default;

(g) Force majeure;

(h) Any other causes referred to in these GCC which are not due to the Contractor's default.

Compensation Events for allowing time extension as per PPA (2011) condition of contract
clause 74.1, the following shall be Compensation Events allowing for time extension:

a) The Public Body does not give access to a part of the Site by the Site Possession Date
stated in the Contractor’s approved work program;

b) The Public Body modifies the Schedule of other Contractors in a way that affects the
work of the Contractor under the Contract;

c) The Engineer orders a delay or does not issue Drawings, Specifications, or instructions
required for execution of the Works on time;

d) The Engineer instructs the Contractor to uncover or to carry out additional tests upon
work, which is then found to have no Defects;

e) The Engineer unreasonably does not approve a subcontract to be let;

f) The Engineer gives an instruction for dealing with an unforeseen condition, caused by the
Public Body, or additional work required for safety or other reasons.

g) Other Contractors, public authorities, utilities, or the Public Body do not work within the
dates and other constraints stated in the Contract, and they cause delay;

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h) The advance payment is delayed;

I) The Engineer unreasonably delays issuing Interim Payment Certificates; Other

Compensation Events described in the SCC or determined by the Public Body and force
majeure.

74.2 If a Compensation Event would prevent the work being completed before the Intended
Completion Date, the Intended Completion Date shall be extended. The Engineer shall
decide whether and by how much the Intended Completion Date shall be extended.

74.3 The Contractor shall not be entitled to compensation to the extent that the Public
Body’s interests are adversely affected by the Contractor not having given early warning.

2.5.1.2 Extension of time as per FIDIC

According FIDIC (2006) under sub clause 20.1 , If the Contractor considers himself to be
entitled to any extension of the Time for Completion and/or any additional payment, under
any Clause of these Conditions or otherwise in connection with the Contract, the Contractor
shall give notice to the Engineer, describing the event or circumstance giving rise to the
claim. The notice shall be given as soon as practicable, as and not later as 28 days after the
Contractor became aware, or should have become aware, of the event or circumstance. If the
Contractor fails to give notice of a claim within such period of 28 days, the Time for
Completion shall not be extended, the Contractor shall not be entitled to additional payment,
and the Employer shall be discharged from all liability in connection with the claim.

As stated on FIDIC (2006) The Contractor shall be entitled subject to an extension of the
Time for Completion if and to the extent that completion for the purposes of Taking-Over of
the Works and Sections is or will be delayed by any of the following causes:

(a) A Variation (unless an adjustment to the Time for Completion has been agreed under
Sub-Clause 13.3 (Variation Procedure) or other substantial change in the quantity of an item
of work included in the Contract,

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(b) A cause of delay giving an entitlement to extension of time under a Sub-Clause of these
Conditions,

(c) Exceptionally adverse climatic conditions,

(d) Unforeseeable shortages in the availability of personnel or Goods caused by epidemic or

governmental actions, or

(e) Any delay, impediment or prevention caused by or attributable to the Employer the
Employer’s Personnel, or the Employer’s other contractors.

FIDIC standard condition of contract also stipulates provisions related to extension of time
as discussed under clause 42 and 44.
Clauses 42.2: The Contractor is entitled to extension of time and compensated for the
incurred costs if the client fails to give possession of site.
Clause 44.1: The Contractor will be entitled to only an extension of time in such events:
extra or additional work, adverse climatic conditions, impediment or prevention by the
client, or other special circumstances without his fault.
Clause 44.2: The contractor even will not be entitled to the extension of time unless he
notifies the detailed particulars within 28 days
Clause 44.3: When an event has a continuing effect, the Contractor shall submit interim
particulars not exceeding 28 days interval and final particulars within 28 days of the end of
the effects to get extension of time

Clause 46: Provided that the project progress is too slow to ensure completion by the
prescribed time or extended time, the contractor shall take acceleration steps without any
compensation.

2.5.1.3 Extension of time as per MoWUD

Ministry of Works and Urban Development (MoWUD) standard condition of contract is

incorporated in the general condition of contract. The delay clauses are:-

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Clause 44: The contractor is entitled to an extension of completion time if he notifies the
client within 28 days when there is extra or additional work or exceptional adverse climatic
conditions, or other special circumstances without his fault.

2.6. Liquidated damage

For many projects, owners shift at least part of the risk of late completion onto contractors.
The most common form of risk shifting is the inclusion of a liquidated damages provision in
the construction agreement. Liquidated damages are specified daily charges deducted from
moneys otherwise payable to the contractor for each day the contractor fails to meet a
milestone and/or contract completion date. Another way of looking at liquidated damages is
that it is the price the contractor must pay per day for working beyond the required
completion dates (Tawil et. al, 2008).

Liquidated damages in construction contracts are the mechanism through which one party
can claim monetary compensation for loss or damage that occurs as a result of the other
party’s failure to deliver the works, goods or services under the contract on time. The
distinction between liquidated damages and general damages is that the former is a fixed
rate or amount in the contract between the parties, whereas the latter is an amount
determined by a court when it hears the matter (design building, 2019).
Construction contracts normally make provision for a penalty clause (or sometimes
liquidated damages/delay damages), which requires the contractor to reimburse the
employer a certain predetermined amount for the period the works remain incomplete after
the lapse of the scheduled, and sometimes extended, time of completion. Damages for late
completion of construction contracts are normally liquidated at the time of concluding the
contract. This is because late completion of construction contracts is the most common
breach normally suffered by employers in construction contracts Eggleston (2009). The
main advantage of the penalty clause, compared to a claim for damages in construction
contracts, is that the employer need not have suffered, or even alleged, any prejudice in
order to be entitled to the penalties.

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Liquidated Damages are inserted into Conditions of Contracts in the form of a clause as a
way of protecting the Clients from the damages to be suffered as a result of project delays.
This clause basically serves to protect the interest of the Client in question in terms of losses
to be incurred if a contractor fails to deliver on time as agreed upon in the construction
contract (Kingsley , 2013).

Design building (2019) also state that Contracts generally include a clause making
provision for the contractor to pay liquidated damages to the client in the event that
the contract is breached. In building contracts, liquidated damages usually relate to
the contractor failing to achieve practical completion (i.e. completing the works so they
can handover the site to the client) by the completion date set out in the contract. Liquidated
damages are not penalties, they are pre-determined damages set at the time that a contract is
entered into, based on a calculation of the actual loss the client is likely to incur if
the contractor fails to meet the completion date. They might include; rent on temporary
accommodation, removal costs, extra running costs, and so on. They are generally set as a
fixed daily or weekly sum, although there may be more complicated formulae where
the works are phased, where may be partial possession and so on. It is important that the
method of calculation is precisely and formally documented.

2.6.1 Liquidated Damages Clause:

2.6.1.1 Liquidated damage As per PPA

PPA condition of contract under clause 27 states about liquidated damage that, If the contractor fails
to carry out any or all of works within the period specified in the contract , the employer may
without prejudice to all its other remedies under the contract ,deduct from the contract price ,as
liquidated damages the following:
A) A penalty of 0.1% or 1/1000 of the value undelivered service for each day of delay until
actual delivery or performance,
B) The cumulative penalty to be paid by the contractor shall not exceed 10% of the contract
price

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In addition, if the delay in performing the contract affects its activity, the employer may terminate
the contract by giving advance notice to the contractor without any obligation to wait until the
penalty reaches 10% of the value of the contract (PPA, 2011).

2.6.1.2 Liquidated damage As per MOWUD

According to Clause 47 of MOWUD, (1994) If the Contractor shall fail to achieve

completion of the Works within the time prescribed by Clause 43 hereof, then the Contractor
shall pay to the Employer 1/1000 of the contract price per day as liquidated damages for
such default and not as a penalty for every day or part of a day which shall elapse between
the time prescribed by Clause 43 hereof and the date of certified completion of the works.
Depending on the nature of the works, Liquidated damage higher than the minimum limit
provided herein above may be fixed in the contract. The Employer may, without prejudice to
any other method of recovery, deduct the amount of such damages from any monies in his
hands, due or which may become due to the Contractor. The payment or deduction of such
damages shall not relieve the Contractor from any other of his obligations and liabilities
under the Contract.

2.6.1.2 Liquidated damage As per FIDIC

FIDIC standard condition of contract is used in international contracts when the contractual
parties are from different countries. It stipulates provisions related to liquidated damage as
discussed hereunder

Clause 46.1: If the project progress is too slow to meet the completion date, the contractor
shall take acceleration steps without any compensation

Clause 47.1: The client is entitled to liquidated damages for every day after the project
completion date but

Clause 47.2: The liquidated damages for delay shall be effected for only non-completed,
noncertified portion of works
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2.6.1.3 Liquidated damage As per Civil Code

The Ethiopian Civil Code (ECC) also comprises articles which address the nature, effect,
and treatment of construction delays as discussed hereunder.

Article 1771: A contractual party is allowed to require enforcement of the contract or

cancellation of the contract and damage caused to him by delay to be made good when the
other party does not carry out his obligations under the contract. However,

Article 1791: If the party fails to perform his obligations, his shall be liable to pay damages
unless he can show that performance was prevented by force majeure

Article 1792: Force majeure results from an unforeseeable occurrence which absolutely
prevents the contractor from performing his obligation

Article 1793: Examples of force majeure include the unforeseeable act of a third party for
whom the contractor is not responsible, an official prohibition preventing the performance of
the contract, a natural catastrophe such as an earthquake, lightning or flood, international or
civil war and the death or a serious accident or unexpected serious illness of the contractor

Article 1794: Force majeure shall not exist in the following situations: strike or lock-out
taking place in the undertaking of a party or affecting the branch of business in which he
carries out his activities; or an increase or reduction in the price of raw materials necessary
for the performance of the contract; or the enactment of new legislation which makes the
performance of the contract more onerous.

Article 1794: When contractor delays the carrying out of his task, the client may fix him a
reasonable time limit to begin the execution of the task. In case, the contractor, after this
time limit, has not begun the task or has interrupted it in bad faith, the client may cancel the
contract without waiting for the expiry of the period laid down for the completion of the
task. Where appropriate, the client may also claim damages from the contractor.

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2.6.2 Enforcement of Liquidated Damage

There is a general perception that public sector clients do not enforce the penalty clause. The
extent of delays, if any, in construction contracts implemented by the public sector is also
unknown. It is unknown whether the type of works, i.e. civil engineering or building works,
affects the enforcement of the penalty clause (Tshikila, 2014).

The Liquidated Damage clause, by its nature, is included in construction contracts in order
to dissuade the contractor from completing the works late. The extent of enforcement of this
clause in projects implemented by the public sector in South Africa is presently unknown.
The reasons for the no enforcement of the penalty clause are also unknown (Tshikila, 2014).

As cited by Kingsley (2013), Tuuliet al (2007) found that in Ghana, some “sympathetic
clients” generally do not enforce the liquidated damages clause. They often ignored or
overlooked liquidated damages when it is due.

As cited by Tshikila (2014) , Adjei-Kumiet al. (2006), highlighted the following as factors
militating against the application of Liquidated Damages: Introduction of Fluctuation Clause
in Contracts, Inability of clients to study the contract documents very well, Sum being a
penalty.

Seidu (2001) as cited in Kingsley (2013) also said the enforcement of the liquidated damage
clause in construction contracts in Ghana is problematic partly due to lapses in contract
administration practices.

2.7 Gap Identification

Conditions of contract state that the contractor shall within 15 days of becoming aware that
delay may occur, notify the engineer of his intention to make a request for extension of the
intended completion date to which he may consider himself entitled, and shall, unless
otherwise agreed between the Contractor and the Engineer, within 21 days from the
notification deliver to the Engineer full and detailed particulars of the request, in order that

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such request may be investigated at the time PPA (2011). Despite of this, most contractors
provide their time claim after the project completion date expired.

All conditions of contracts and literatures stated that within specific days stated in the
contract from receipt of the Contractor's detailed particulars of the request, the Engineer
shall, by written notice to the Contractor after due consultation with the Public Body and,
where appropriate, the Contractor, grant such extension of the Intended Completion Date as
may be justified, or inform the Contractor that he is not entitled to an extension. However,
what if the consultant or the employer didn’t respond on time? Literatures argued that this
will take as there is no provision for time extension and the contractor will have a right to
complete the work within a reasonable time. But most of the contractors and consultants
didn’t exercise it in time claims. This concept is supported by civil code of the Empire of
Ethiopia (1960) which states:
(a) Each contracting party shall perform his obligations within the time fixed by the contract.
(b) Failing a specific provision in the contract, each contracting party shall perform his
obligations within a reasonable time (Civil Code Art. 3174).

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CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Introduction

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. As data and
methodology are highly interdependent, the methodology to be used for a particular research
problem must always take into consideration the nature of the data that will be collected to
resolve the research problem (Kothari, 2004).

This chapter comprises of the method and the design that was used to conduct the research.
It was a qualitative research in which the data was collected using questionnaires. The
population was made of clients, contractors and consultants. There was collection of both
primary and secondary data. The primary data was obtained using questionnaires while the
secondary data was gathered from the literature. In addition this chapter also presents the
questionnaire design, the different sections of the questionnaires, the scale as well as the
pilot study that was conducted to ascertain there liability of the questionnaire.

The research methodology chosen for this study comprised of intensive literature review,
questionnaire to building construction stake holders in (Hawassa, Arbaminch and Welayita
sodo) and a statistical analysis of the Survey.
• Literature gathering
• Literature review
• Questionnaire preparation
• Questionnaire Survey
• Data collection
• Data analysis

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3.2 Research Design

Research design is defined as a framework of methods and techniques chosen by researchers

to combine various components of research in reasonably logical manner so that the research
problem is efficiently handled Bhat (2019). It is the blueprint for conducting the study that
maximizes control over factors that could interfere with the validity of the findings.
Designing a study helps the researcher to plan and implement the study in a way that will
help the researcher to obtain intended results, thus increasing the chances of obtaining
information that could be associated with the real situation (Burns & Grove, 2005).

The research was designed to get opinions from clients, consultants and contractors of
construction companies in regard to delay handling practice and the effect of delay handling
Practice.

The types of study used in this research were mainly descriptive. It is considered as a
suitable and available research method for the purpose of description about delay handling
practice in public building construction projects.

3.3 Research Type

The types of study used in this research were mainly descriptive. It was attempted to collect
data from the relevant respondents to study the delay handling practice in building
construction projects.

Descriptive research is more convenient in gathering opinion of people on a particular issue.

This kind of method is concerned with gathering facts and obtaining perfect precise
information concerning the current state of phenomena and whenever possible making
conclusion for the facts discovered (Orodho, 2012).

It is considered as a suitable and available research method for the purpose of description
about delay handling practice in public building construction projects.

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3.4 Sampling Technique

The sample size of this research paper was selected from public building construction
projects that were under construction in Hawassa, Welayita sodo and Arbaminch. In
selecting sample size ongoing construction projects were considered. For the selecting
criteria of sample size the researcher gathered information on active public building
construction projects that are being undertaken by class one contractors. The information
was collected from Hawassa the city administration construction bureau, Wolayita sodo
construction bureau, Arbaminch construction bureau, and Arbaminch University. From this
technique a purposive sampling method was adopted to select the sample for the study as it
involves selecting a sample based on experiences or knowledge of the group to be sampled.
Therefore, this study was planned to be conducted on thirty five (35) building construction
projects that are being constructed by construction firms of grade one and the sample size
may include office buildings, educational buildings, and multi-purpose projects in those
cities.
The target respondents to the questionnaires on the various sites in this research include
Contractors (project manager), Consultants (resident engineer) and Client currently working
on public building project in selected towns (Hawassa, welayita sodo and Arbaminch) of
SNNPR. The researcher adopted a purposive sampling method to select respondents from
the contractor side; the reason for this was that all professionals on the site did not have
adequate knowledge on the topic.

3.5 Study area

This study will be undertaken in south nation nationalities people’s regional state more
specifically on public building project of Hawassa, welatasodo and Arbaminch cities.
Hawassa is a city in Ethiopia on the shores of Lake Hawassa in the Great Rift Valley and it
is located around 270 kilometers south from Addis Ababa via Bishoftu, 130 km east of
Sodo, and 75 km north of Dilla. The town serves as the capital of the southern Nations,
Nationalities, and peoples region, and is a special zone of this region. Arbaminch is a city
and separate woreda in southern Ethiopia; It is surrounded by Arba Minch Zuria woreda and

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the most resourceful zone in southern region including two largest Lakes in Ethiopia
(Chamo and Abaya), more than 40 springs, National Nechsar park and crocodile market.
Wolayita is also a Zone in SNNPRs of Ethiopia which is located at 300 kilometers south
from Addis Ababa.

HAWASSA
A ARBA MINCH

SODO

Figure 3.1; Map of study area (source, Google map)

3.6 Data collection method

The data for the study was obtained from the primary and secondary sources. The data from
the primary sources were collected through questionnaire and case study. A detail literature
review was conducted on books, codes of practices, specifications, and relevant websites to
compare and analyze the current (existing practice) in public building construction of
SNNPR with contractually accepted approach of delay handling Procedures. Project

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managers, site engineers, office engineers and resident engineers were the source of
information for the primary data. Both close ended and open-ended questions were
developed to collect relevant data to the study.

The study employed both qualitative and quantitative data collecting tools. The use of mixed
methods approach for this research was intended to drive the benefits of both quantitative
and qualitative approaches. The bulk of the data were collected through administering
questionnaires survey (closed and open-ended questions) .The quantitative data obtained
from the questionnaire survey is organized, coded and categorized using the SPSS software;
which facilitates analysis and testing; and the presentation of the statistical outcomes.

3.6.1 Questionnaire design

From the literature reviewed, relevant information that could aid the study objectives were
collected and reviewed. A first draft of the questionnaire was developed on the basis of a
review of the literature. The questionnaire form consists of three main parts: The First part
includes information about the respondent particulars such as position and number of years
of experience. The second part of the interview form dealt the delay handling practice and
the third part is about effects of delay handling practice. The content of the draft
questionnaire was discussed with the Advisor of the thesis. Modifications and new questions
were added after discussing with the thesis advisor. Closed questions required the
respondents to rate (using Likert Scale) their opinions on issues relating to delay handing in
their projects and also from their experience in building projects in SNNPR.

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3.7 Ethical Considerations

This study was conducted according to the ethical guidelines of research requirements. The
privacy and confidentiality of the respondents of this study was protected by keeping in
secrecy the information collected. Deception was avoided by informing construction
companies about the purpose of the research and its implications on the respondents.

3.8 Data processing and analysis

The collected raw data was first sorted, edited, coded and then entered into a computer
software. Two programs used where the excel sheet and statistical package for Social
Science (SPSS). The method analysis combined both quantitative and qualitative types of
data. The data collected using closed-ended questions of the questionnaire were analyzed
using descriptive statistics. Data was analyzed by determining the mean score, percentages
using the statistical package for social sciences (SPSS) software and appropriate graphical
representations and tables were obtained to analyze the questions and to present the data
more elaborately in accordance with their importance.

The data were summarized, and content analysis was carried out using narrations and
interpretations.

3.8.1 Reliability test

Cronbach’s alpha (α) coefficient

The data gathered through questionnaires is checked by Cronbach’s alpha (α) coefficient for
reliability or consistency. Cronbach’s alpha is a measure of reliability of the data on a
questionnaire and ranges from 0 to 1.0. It indicates the extent to which the respondents rate
the same question. For example, if all respondents give same answer to all questions, the
alpha for these questions would be 1.0. The minimum level for reliability when using
Cronbach’s alpha coefficient is 0.7 and any value below this indicates that the variables are
inconsistent and unreliable (Fellows & Liu, 2007).

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Cronbach’s alpha is calculated using the following equation 3.3 (Boermans & Kattenberg,
2011)

------------------------------------------------------- [Eq.3.1]

Where I = the number of items in the scale.

σi2 = the variance of item i, and

σ2X = the variance of the observed total test scores

3.8.2 Correlation test

Spearman’s Coefficient of Correlation

Spearman’s coefficient of correlation (or rank correlation) was analyzed to test for
agreements among the three main parties – government sector, private consultant and private
contractor. Spearman’s coefficient of correlation (or rank correlation) is a method of
determining the degree of correlation between two variables where ranks are given to the
different values of the variables. The main objective of this coefficient is to determine the
extent to which the two sets of ranking are similar or not. Thus, government sector with
private consultant; government sector with private contractor and consultant with contractor.

Spearman’s coefficient of correlation (or rank correlation) is analyzed using the give
formula (Kothari, 2004)

(Kothari, 2004).

----------------------------- [Eq.3.1]

Where di = difference between ranks of ith pair of the two variables;

n = number of pairs of observations.

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3.9 Pilot study

A pilot study involves testing a questionnaire with a small group of people who represents
target respondents. This will help pin point mistakes in the questionnaire and will also
determine if the questions will be understood and easily answered by the respondents. A
pilot study for the questionnaire was conducted before collecting the results of the sample. It
provides a trial run for the questionnaire, which involves testing the wordings of the
questions, identifying ambiguous questions, testing the techniques used to collect data, and
measuring the effectiveness of standard invitation to respondents (Naoum, 1998).The
piloting process was conducted by five respondents who are currently working in Hawassa,
they were selected precisely because of their practice in the construction projects and
nearness for the researcher. The five were invited to participate in the piloting process and
were asked to review the questionnaire and give their advice. Important comments and some
modifications have been done. The main comments could be summarized as follow:

1. The name of the organization and Address removed from the questioner to keep the
information of the organization secret.

2. Some factors and sentences should be modified or represented with more details.

3. Some factors and sentences should be modified in order to give more clear meaning and
understanding.

3.10 Summary

In this chapter, discussion was mas for all the procedures that were followed in the
collection and analysis of data. The approach used was mixed research methodology
questionnaire and case study. Hence, it has explained how the questionnaires and case study
interview were collected and analyzed.

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CHAPTER FOUR

4. RESULT AND DISCUSSION

4.1 Introduction

This chapter provides explanations for data collection such as distribution of the
questionnaire, collection of responses and subsequent analysis of the data acquired through
the responses from professionals who are working for the client, consultants and contractors
and involved in public building projects in SNNPRS.

A questionnaire survey has been conducted to gather the required information from
professionals who have been involved in public building projects in SNNPRS, Working on
behalf of a client, consultant or contractor; towards answering the basic research question.

4.2 Questionnaire Response Rate

The questionnaire was prepared and distributed to three contractual parties i.e. contractors,
client and consultants currently working on the public building project sites in person
contact by going to all the project sites. In building construction project, the three main
parties, the project owner, the consultants, and the contractor involved in the project have
specific roles and tasks, which are all vital to the success of a project. Thus, the three main
parties were targeted in the research. Seventy four (74) questionnaires were distributed to the
parties by considering the position of the respondents in the project.

Client

A total of eight questionnaires were sent out to the client out of which six questionnaires
were collected. This represents 75%of the total number of questionnaires sent out to the
client.

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Consultants

Out of the total 31 questionnaires sent out to the consultants; 26 questionnaires were
received and considered valid for analysis. This represents 83.9% of the total number of
questionnaires sent out to the consultants.

Contractors

Out of a total of the 35 questionnaires sent out to grade one local contractor, 28
questionnaires, which represents 80% were returned and found to be valid. An overall
response rate of 81.1%was achieved. The questionnaire distribution and collection took one
month and the response rate is as shown in the Table below.

Table 4.1 Questionnaire response rate

Questionnaire Questionnaire
Contractual Parties Response Rate
distributed responded

Client 8 6 75.00%

Consultant 30 27 90.00%

Contractor 35 29 82.86%

TOTAL 73 62 84.93%

4.3 Respondents position in the organization

In terms of positions within the projects, 27.4% project manager, 40.3% Resident Engineers,
9.7% site engineer, 9.7% office engineer ,9.7% representatives and 3.2% Site Supervisors
participated in responding the questionnaire. The percentage distribution of the various
professionals indicates that most of the questionnaires was completed directly by
professionals involved in the building construction project.

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Position
45

40
40.3
35

30

25 27.4
25
20

15 17
10
9.7 9.7 9.7
5
6 6 2 3.2 6
0
project manager resident site engineer office engineer site supervisor client
engineer representative

frequency percent

Figure 4.1 position of respondents

Most of the respondents are project managers and resident engineers, which have overall
responsibility for the most of the contractual issues of the project and have better knowledge
about the research topic.

4.4 Educational level of respondents

The survey result shows that 26 percent of the respondents have MSc. Educational
qualification and the rest 74 percent BSc. Degree Educational qualification. Therefore, the
survey shows that it was well represented by better qualified professionals and these groups
of respondents are expected to have better knowledge on the subject matter.

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educational level

MSC
26%

BSC
74%

BSC MSC

Figure 4.2 Respondent’s educational level

4.5 Work experience of respondents

The results below clearly show that out the 62 returned questionnaires, 4 (6.5%) of the
respondents had less than 2 year work experience, 21 (33.9%) respondents had 2-5 years of
working experience, 22 (35.5%) had 5-10 years of working experience, and finally 15
(24.2%) had above 10 years of working experience. This shows that the results we will
obtain will be valid. The overall profile implies that most of the respondents have adequate
experience in the construction firms. This indicates that, the respondents could provide the
required information for all items included in the questionnaire.

Table 4.2 Experience of respondents

Experience of respondents Frequency Percent

<2 years 4 6.5
2-5 years 21 33.9

5-10 years 22 35.5

>10 years 15 24.2

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4.6 Delay handling practice

The first objective of this research is to assess delay handling practice in public building
project of southern nation nationalities and people regional state of Ethiopia. To achieve this
objective the researcher sets three measurements those are: notification of delay, extension
of time and liquidated damage.

Under notification of delay, the occasion for notifying delay was assessed. The other
measurement is extension of time ,under this the practice of submission of extension of time
request ,response of extension of time request ,fairness of delay evaluation ,and limit for
extending completion time of the projects were assessed. The third measurement of delay
handling practice is liquidated damage, under this respondents were asked about
enforcement of liquidated damage in accordance with contract agreement and the reason for
non-enforcement of the provision.

4.6.1 Projects faced delay

Construction delays are considered as time lag in completion of activities from its specified
time as per condition of contract.

project delay

8%

Yes
No
92%

Figure 4.3 Projects faced delay

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Among the projects which are selected for this research 92% have faced delay of the original
completion date and only 8% of projects are not finish their original contract time. Since
majority of respondents experienced delay issues in their building project, they are perfect
target population for the survey to get information about delay handling practice.

4.6.2 Type of condition of contact

As the questionnaire survey result indicates 100% of respondents are use public
procurement agency (PPA) condition of contract. This result indicates that it is enable the
researcher to see the delay handling practice of public building projects in accordance of
PPA condition of contract.

Table 4.3 type of condition of contract

Condition of contact Frequency Percent

PPA 29 100

4.6.3 Occasion to notify delay

The contractor is always required, under the contract clauses, to notify the employer of its
intention to make a claim for time and/or money within certain period defined in the
contract. Failure by the contractor to abide with the contract requirements for notification
makes the entitlement for the claim declined (Ahmed, 2014). A contractor’s notice is an
advice to the client that something has happened or is likely to happen that may affect the
progress of work and would entitle the contractor to an extension of time.

Contractor response indicates, the occasion to notify delay is when the consequence of delay
is predicted and after the completion date is over with equal percent of 34.5%, and
remaining 31% of contractors said that delay is notified within 15 days of becoming aware
that delay may occur.

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Table 4.4: Time to notify delay by contractual parties

Contractor Consultant Client

Freque
ncy % Frequency % Frequency %
1 When the progress is estimated 10 34.5 9 33.3 0 0
and consequence is predicted
2 Within 15 days of becoming 9 31.0 6 22.2 0 0
aware that delay may occur

3 After the completion date is over. 10 34.5 12 44.4 6 100

Total 29 100 27 100 6 100

As indicated in the table above 44% of consultant and all client agreed that occasion to
notify delay is after the completion date is over. But 22.2% of consultant agree that,
contractors notify delay as per PPA condition of contract. Since PPA condition of contract
clearly stated, occasion to notify delay is within 15 days of becoming aware that delay may
occur, the delay notification practice is not according to the condition of contract.

4.6.4 Response of consultant for extension of time request

Table 4.5. Response of consultant for extension of time request

Contractor Consultant Client
Frequency % Frequency % Frequency %
On time 18 62.1 22 81.5 6 66.7
Not on time 11 37.9 5 18.5 2 33.3
Total 29 100.0 27 100 6 100

As the questioner survey result shows 62.1 percent of contractors, 81.5 percent of consultant
and all client representatives agreed that the response of consultants for the extension of
time request by contractor is on time. As shown in table 4.5, 37.9 percent of contractors and

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18.5 percent of consultants indicates consultants does not give timely response for time
claim.

Even if most condition of contract clearly state about the exact time to respond completion
date extension, it is not applied by most construction firms in Southern nation nationalities
and regional states in Ethiopia.

4.6.5 Acceptance of client to time claims after approval

Table 4.6. Acceptance of client to time claims after approval

Contractor Consultant Client

Frequency % Frequency % Frequency %

On time 29 100 22 81.5 6 100.0

Not on time 0 0 5 18.5 0 0

Total 29 100.0 27 100.0 6 100.0

All contractor and client respondents agree that clients give timely acceptance for the time
claim requested by contractors. However about 5(18.5%) of consultant indicates that clients
did not give timely acceptance for the time claim requested by contractors.

4.6.6 Fairness of delay analysis technique

From the figure below 48.5% of contractors and 77.8% of consultant’s and 66.7% of client’s
respondent agree the delay analysis technique by consultant is fair. In addition to this 51.7%
of contractor, 22.2% of consultant and 33.3% of client said respond that analysis technique
is partially fair.

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Fairness of delay analysis technique

77.8
66.7
80
48.5 51.7
60
33.3
40 22.2
21
14 15
20 0 6 0 0
0 0 4 2 0
Series1
0
Yes Partially No Yes Partially No Yes Partially No
contractor consultant client

Figure 4.4 Fairness of delay analysis technique

The remaining respondents, 66.7% of client agree that the delay evaluation technique is no
fair at all. But the thesis conducted by Tesfaye (2016) 60% of client’s respondent agree the
time extension request by contractor is not fair and 75 % of consultant’s agree the request is
partially fair.

4.6.7 Factor affect delay evaluation technique

The respondents, who responded as the delay evaluation technique is partially fair or not
fair, were asked to identify the reason behind this problem. Most contractors (46.67 %)
agree that the main factor affecting the delay evaluation is Lack of professional, technical
and managerial skill to evaluate ,next to these negligence to provide the service as per the
specified condition and Corruption are the second factors with equal percentage of 26.67.

According to consultants response Lack of professional, technical and managerial skill and
corruption are reasons which affect delay evaluation.

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Table 4.7: Factors which affect delay evaluation technique

Contractor Consultant client
Factor
Frequency % Frequency % Frequency %
Lack of professional, technical
and managerial skill 7 46.67 3 50 2 33.3
Negligence to provide the service
as per the specified condition 4 26.67 - - - -

Corruption 4 26.67 3 50 4 66.7

Total 15 100 6 100 6 100

As the result shown in the above table 66.7% client agree that the main factor which affect
delay evaluation is corruption between parties. Lack of technical and managerial skill is the
second reason. As the result shows delay evaluation technique is least affected by
negligence to provide the service as per specified under condition of contract.

Correlation test

Table 4.8: Spearman’s coefficient of correlation

Group of Stakeholders Spearman’s coefficient (rs)

Client with consultant 0.75

Client with contractor 0.25

Consultant with contractor 0.67

Spearman’s correlation coefficient of 0.75 and 0.67 were obtained for client and consultant,
and consultant and contractor, respectively. These values are greater than critical correlation
coefficient. This reveals that there is similarity in perception between client and consultant
as well as consultant and contractor regarding factor affect delay evaluation technique. On

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the other hand, Spearman’s correlation coefficient of 0.25 were obtained for client and
contractors, which indicates the response of client and contractor is slightly correlated.

4.6.8 Extent to extend project completion time by employer

Extent for extension of time granted by employer was classified into five categories, up to
100%, 200%, 300%, and 400% of the original contract duration and no limit for extending
completion date by the employer. Based on those alternatives respondents were asked to
select one of these categories to indicate the extent for extension of time granted by
employer. From five alternatives only two of them are selected by respondents.

Table 4.9: - Extent employer extend project completion time

Contractor consultant client

Extent
Frequency % Frequency % Frequency %

Up to 100 % of the
8 27.6 - - - -
original contract time

Haven’t known limit 14 72.4 27 100 6 100

Total 29 100 27 100 6 100

The above table all consultants and client agree that there is no limit for clients to grant time
extension to the contractor. The response of contractors indicates that 72.4% agreed with the
above idea and 27.6% of contractor the extent for extension of time granted by employer is
up to 100% of the original contract time.

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4.6.9 Submission of extension of time claim

Table 4.10. Late submission of extension of time claim

Contractor Consultant client

Frequency Percent Frequency Percent Frequency Percent

Create a Problem 24 82.8 27 100.0 6 100.0

Do not a problem 5 17.2 0 0.0 0 0.0

Total 29 100.0 27 100.0 6 100.0

Respondents were asked to identify weather late submission of time claim by contractors
create a problem or not. The result shows that 24 (82.8%) of contractors, 27(100%) of
consultant and also 6 (100%) of owner agree that the time claim request by contractors is not
submitted on time.

4.6.10 Reasons for delays in submitting the details of claims for extension of time

This section discuss on submission of time claim for the achievement of delay handling
practice objective. The respondents were requested to identify the reasons for delays in
submissions of details of EOT claims, and these were ranked based on the mean value. The
respondents provided the rankings for each of the 9 possible reasons presented in the
questionnaire using a five-point Likert scale, where 1= strongly disagree, 2= disagree, 3=
neutral, 4= agree and 5= strongly agree. Mean score was calculated for each effect of failure
and ranks were provided. Reasons for delays in submissions were ranked in Table 4.11

According to consultant’s and client’s response Poor paperwork control by the contractor
were rated as the main reason for delay in submitting the details of extension of time claim.
Nevertheless, these reasons were at the fourth in Malaysia’s construction industry. This
might be caused by different management practiced or different procedure of submitting
claims for extension of time due to the different types of contract used.

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Table 4.11. Reasons for delays in submitting the details of claims for extension of time
contractor consultant Client
Reasons Mea Ran mea Ran Mea Ran
n k n k n k
Site staff inexperienced in contract 3.62 1 3.07 3.83
1 procedures 4 3
3.28 2.81 2
2 Engineer requests excessive details 4 6 5

3 Poor paperwork control by the contractor 3.31 3 4.15 1 5 1

Actual delay could not be determined until 3.28
4 end of construction 4 2.19 9 4 2
The effects are not known/could not 3.34 2.59 4
foresee that an event would cause a delay
5 until the delay occurred 2 8 2
Focus on progress of work and not on 6 2.63
6 claim 3.17 7 2 5

7 contractor's staff too busy on other tasks 3.24 5 3.59 2 3 4

8 lack of staff to deal with EOT claims 2.76 8 3.26 3 4 2

Contractor does not want to cause friction

9 or offend the employer 2.90 7 2.93 5 2.00 5

Similar to previous researcher who did in Hong Kong Yogeswaran (2003) most contractors
said that Site staff inexperienced in contract procedures were rated as the main reason for
delay in submitting the details of ex. Next to this ‘’the effects are not known or could not
foresee that an event would cause a delay until the delay occurred’’ and ‘’Poor paperwork
control by the contractor’’ are ranked as the second and third reason respectively.

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Reliability test

Reliability test was done, for the respondents answer for the reason for delay in submitting
the detail of time claim, by calculating cronbach alpha coefficient as follows

Table 4. 12; Cronbach Alpha coefficient test Result on the Reasons for delays in submitting the
details of claims for extension of time

Cronbach Alpha Coefficient

Respondent 0.59

The result indicates that all items in this Section are reliable. There is internal consistency
between the items. This is because the Cronbach Alpha coefficient for all the components is
Strong between 0.50 and 0.80. Therefore it is concluded that the result and questions were
reliable (Cohen et al., 2007).

Correlation test

Table 4.13: Spearman’s coefficient of correlation Test Result on the Reasons for delays in
submitting the details of claims for extension of time

Group of Stakeholders Spearman’s coefficient (rs)

client with consultant 0.31

client with contractor 0.54

Consultant with contractor 0.03

Spearman’s correlation coefficient of 0.31 and 0.54 were obtained for client and consultant,
and client and contractor, respectively. These values are greater than critical correlation
coefficient. This reveals that there is similarity in perception between project owner and
consultants as well as project owner and contractors regarding ranking the Reasons for
delays in submitting the details of claims for extension of time. On the other hand,

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Spearman’s correlation coefficient of 0.03 were obtained for consultants and contractors,
which is less than the critical values. Thus there is difference in perception of consultants
and contractors on ranking the Reasons for delays in submitting the details of claims for
extension of time.

4.6.11 Relevance of LD provisions in construction contracts

This part of the questionnaire sought respondents’ perception of the relevance of liquidated
damage provisions in construction contracts. Relevance was assessed by asking respondents
directly whether they perceived Liquidated damage provision in construction contract is
relevant or not.

Relevance of LD provision
100.0
100
82.8
90
80 70.4
70
60
50
40 29.6
24
30 19 17.2
20 8 6
5
10 0 0.0
0
Frequency Percent Frequency Percent Frequency Percent
consultant contractor client

Relevant Not relevant

Figure 4.5 Relevance of LD provision in construction contract

The result indicates 70.4% of consultant, 82.8% of contractor and 100% of client agreed that
liquidated damage provision in construction contract is relevant. But 29.6% of consultant
and 17.2 % of contractors said the provision is not relevant in the contract. The respondents
are in agreement that the enforcement of the penalty clause the rate of production in a
construction site.

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4.6.12 Enforcement of liquidated damage

When delay in completion occurs and it is certified that the delay is due to non-excusable
reasons on the part of the contractor, the payment of liquidated damage becomes due.

Respondents from contractor, consultant and client organizations were asked if they have
had to enforce liquidated damage, if they did not enforce on any occasion, they were due,
reasons were sought.

Table 4.14 Enforceability of liquidated damage

Contractor Consultant Client
Frequency % Frequency % Frequency %
Enforceable 1 3.4 2 7.4 0 0

Sometimes enforceable 3 10.4 5 18.5 0 0

Not enforceable 25 86.2 18 66.6 6 100

Total 29 100 27 100 6 100

In the light of this finding public sector contracts are generally completed late, and as shown
in table 4.12, a high proportion of respondents indicated that public owners are not enforce
the liquidated damage clauses, 51.7% of contractors and 66.7% of consultant and 100% of
client response that liquidated damage is not enforceable in accordance with the contract
agreement. 37.9% of contractors and 18.5% of consultants agreed that liquidated damage
clauses are sometimes enforceable.

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4.6.13 Reasons for non-enforcement of Liquidated Damage

According to contractor’s response, inability of clients to study the contract documents very
well is the first reason for non-enforcement of liquidated damage clauses. Second reason as
per the contractor is that the clause may not acceptable according to law or in front of court.

Table 4.15 Reasons for non-enforcement of liquidated damage

contractor consultant client
Reasons
mean Rank mean Rank Mean Rank
Liquidated damage are
generally overlooked or
1 3.10 3 3.22 1 4.00 1
ignored in by sympathetic
clients

Introduction of Fluctuation
2 2.86 4 1.93 4 4.00 1
Clause in Contracts
Inability of clients to study
3 the contract documents 3.52 1 2.22 3 3.00 2
very well
The clause is not
4 acceptable according to 3.38 2 2.56 2 1.00 3
law

As shown in the above table most clients agreed that liquidated damage are generally
overlooked or ignored in by sympathetic clients and Fluctuation of clause in Contracts is the
main reason for non-enforcement of liquidated damage clauses under the contract.
In addition most respondents said that the reason for non-enforcement of liquated damage is
that the relationship between client and contractor i.e. they are tied together by their
friendship, so they would not enforce the liquidated damage provision under contract. The
other reason that respondents indicate is capability and financial status of local contractors.

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4.7 Delay handling practice compared with accepted condition of contract

As shown in table 4.3 all respondents are use PPA condition of condition of contract 2011
version. Therefore, to evaluate the delay handling practice of public building projects
compared to condition of contract, PPA (2011) is considered.

When the projects are delayed, they will invite to the additional cost and if this delayed
project is not handled properly with a manner of contract agreement it may lead to extra cost
and time other than the cost and time due to delay. Therefore, managing project delay,
notification, evaluation of time extension, also applying delay clauses according to the
contract, is very important.

Contractor’s response

As the result indicates only 31% of contractors notify delay as per the condition of contract.
Most respondents agreed that occasion for notification delay is after completion date is over
,but PPA condition of contract clearly state that ,the Contractor shall, within 15 days of
becoming aware that delay may occur, notify the Engineer of his intention to make a request
for extension of the intended completion date to which he may consider himself entitled.

Table 4.16 Response of contractor compared with the contract

N
o Measurement According to PPA contract Practice

Within 15 days of becoming aware that 31%

1 Occasion to notify delay delay may occur

Response of consultant for within 21 days from receipt of detailed 62.1%

2 EOT claim particulars of the request

1/1000 of the value undelivered

Enforcement of liquidated service for each day of delay until 3.4%
3 damage actual delivery or performance

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Since the contractor’s notice is an alert to the client about the situation which going to cause
delay of the problem, it gives an opportunity to investigate the effect of delay event under
particular circumstance.

In regards to response of consultant for the time claim, 62.1% of contractors agreed that the
practice is in accordance with the contract. The practice of enforcing liquidated damage with
respect to the contract is very low, which is 3.4%.

Consultant’s response

Table 4.17 Response of consultant compared with the contract

N
o Measurement According to PPA contract Practice

Within 15 days of becoming aware 22.2%

1 Occasion to notify delay that delay may occur

Response of consultant for within 21 days from receipt of 81.5%

2 EOT claim detailed particulars of the request

1/1000 of the value undelivered

Enforcement of liquidated service for each day of delay until 7.4%
3 damage actual delivery or performance

As the consultant response shows, 81.5% of consultant give timely response for extension of
time claim according to the contract agreement i.e. within 21 days from receipt of detailed
particulars of the request from the contractor.

Client’s Response

According to client, time delay notification practice is not coincide with the contract procedure.
Contractors only consider notifying the situation of delay, they are not interested about the time or
the occasion. The client also not contribute for timely notification of delay. Because when is notified

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without consideration of the exact occasion stated under the condition of contract, they accept the
contractor.
Giving response for time extension claim is more than half percent within the time specified on the
agreement.
Table 4.18 Response of client compared with the contract

N
o Measurement According to PPA contract Practice

Within 15 days of becoming aware 0%

1 Occasion to notify delay that delay may occur

Response of consultant for within 21 days from receipt of 66.7%

2 EOT claim detailed particulars of the request

1/1000 of the value undelivered

Enforcement of liquidated service for each day of delay until 0%
3 damage actual delivery or performance

When we see practice of enforcing liquidated damage provision under the contract, clients agreed
that 100% of clients not enforce liquidated damage for delayed projects. However according to PPA
(2011), if the contractor fails to carry out any or all of works within the period specified in the
contract, the employer may without prejudice to all its other remedies under the contract, 0.1% or
1/1000 of the value undelivered service for each day of delay until actual delivery or performance,
and cumulative penalty to be paid by the contractor shall not exceed 10% of the contract price. There
is a general practice that public sector clients do not enforce the liquidated damage clause.

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4.8 Effect of delay handling practice

If construction project delay is not properly handled or managed it will negatively affect the
project, parties involved on the project and also the overall construction industry. Handling
of delay include, the way in which extension of time is granted for the delayed project,
starting from notification of delay, and also the degree of enforcing liquidated damage
clauses which is written under the contract agreement.

Thus a contractor’s notice gives the owner opportunity to investigate and mitigate the effects
of the delays event under the particular circumstances. The purpose of a contractor’s notice
is to inform the owner or the contract administrator that a problem exists, which could
entitle the Contractor to an extension of time claims (Frimpong, 2003). A contractor’s notice
also ensures that the owner is aware of the problem. Failure by the contractor to stand with
the contract requirements for notification makes the entitlement for the claim declined.

The result show that Because of non-enforcement of liquidated damage provision, the
contractor is not fill responsible for time overrun (duration of the project) and they thought
that they would not punished even if the project is delayed and these appreciate project
delay. In addition Non-enforcement of liquidated damage more affect client loss the project
service and may lose money because the client exposed to further consulting cost during the
delayed period. Additionally that enforcement of liquidated damage has a significant on the
overall project. It discourage timely project completion and also decrease project
performance with respect to time.

Poor Delays handling practice will lead the project to delay, which have had a number of
effects to construction projects. Respondents were requested to rank these effects by using
5-point scale or lickert scale. The results are as indicated in Table below.

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Table 4.19 the effect of delay handling practice

Response
N strongly slightly strongly
o Effects agree agree agree Disagree disagree

1 time overrun 46(74.2%) 16(25.8%) 0 0 0

2 cost overrun 39(62.9%) 16(25.8%) 7(11.3%) 0 0

3 Disputes 12(19.4%) 27(43.5%) 16(25.8%) 7(11.3%) 0

4 Total abandonment 7(11.3%) 9(14.5%) 26(41.9%) 14(22.6%) 6(9.7%)

Low quality of
5 work 9(14.5%) 8(12.9%) 25(40.3%) 12(19.4%) 8(12.9%)

Results indicate five highly ranked effects as time overrun, cost overrun, Disputes, Total
abandonment and low quality of work. These results are more less the same as those
obtained by Aibinu (2002) in Nigerian construction industry and Sambasivan (2008) in
Malaysian construction industry. On the other hand, medium ranked effects include:
arbitration, delaying by the client to return the loans and poo\r quality of work due to hurry

When construction projects are delayed, more time is needed for completion of projects.
Most of the respondents agree that time overrun and cost overrun are the most and adverse
effect of delay handling practice.

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4.9 CASE STUDY RESULT

Introduction

In this sub-section discussion was made on delay handling practice of public building
project sample projects as case studies. The aim of this sub-section is to explore the practice
in related to time extension grant, enforcement of liquidated damage , support the findings
with actual site information gathered from specific public projects. For case study projects,
data from each project were collected from site interview of professionals in the project and
data from contract documents and reports. The ultimate purpose of this discussion was to
validate the findings from the literature review and questionnaire and to explore practical
cases. For confidentiality, the name of the clients, consultants and contractors are kept
secret. This is mainly due to some data source requested the author not to disclose the
company name and data that can easily identify the project. The findings of this case study
are only representing the specific projects. These government building projects are selected
based on availability of data, project progress and willingness of the parties. The researcher
tried to get information from other projects but only three projects are willing to give data.

Case study 1

The first case is conducted two delayed projects of from the same owner, contractor and
consultant is taken as one case study.

The first project is educational building project site. The project site is located in Hawassa
city and lays on an area of 25000 m2. Grade-1 general contractor and class-1 consultant
participated in the construction of the building project.
The total contract price of this project was five hundred twenty one million one hundred
sixty thousand four hundred fifty six birr and twenty two cents (521,160,456.22). The total
schedule given in contract was 730 calendar days. After approved time extension of 1211
calendar days, the final schedule becomes 1941 calendar days. However, the current status
(till the end of August, 2019) of the project was still 79.72% with time of overrun 31 days
with no time extension. The detail site information about the project is presented under
Annex III.
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The second project selected for the first case study is also educational building project site..
The project site is located in Hawassa city and lays on an area of 20,000 m2. Grade-1 general
contractor and class-1 consultant participated in the construction of the building project.

The total contract price of this project was two hundred eighty one million three hundred
sixty seven thousand seven hundred thirty one birr and sixty cents (281,367,731.6). The total
schedule given in contract was 730 calendar days. After approved time extension of 991
calendar days, the final schedule becomes 1721 calendar days.

Table 4:20 Project description

Description Project 1 Project 2

Date of contract signature 12th February 2014 14th June 2013

Site hand over 15 calendar days 15 calendar days

Commencement date 14th March 2014 13th July 2013

Original contract time 730 calendar days 730 calendar days

Completion date 13th March 2016 13th July 2015

Time extension granted 1211 days 991 days

Revised contract period 1941calendar days 1721calendar days

Main contract price 521,160,456.22 281,367,731.60

Time elapsed 103.19% 104.82%

Status of project 79.72% 80.94%

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Extension of time

The first project was totally extended 1211 calendar days, which is 165.89% of the original
contract amount, and hence the revised completion date of the project became July 7, 2019.
The completion time for this building project is extended six times. The first, second, third
and fourth Extension of time guaranteed 140, 228, 75, and 402 calendar days respectively.
The client approve these extension of time with justification.

The total extension of time granted for the second project was 1391 calendar days, which is
190.5% of the original contract amount.

Table 4.21 Approved extension of time for case 1

No of extension of
Project Granted date Remark
time
EOT-1 140 with justification
EOT-2 228 with justification
EOT-3 75 with justification
project 1
EOT-4 420 with justification
EOT-5 186 Without justification
EOT-6 180 Without justification
EOT-1 260 With Justification

EOT-2 300 With Justification

project 2
EOT-3 180 With Justification

EOT-4 150 With Justification

EOT-5 120 With meeting

EOT-6 280 With meeting

EOT-7 101 With meeting

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The major problem justified in this project is material shortage that the contractor is
incapable in delivering materials to the project site on the intended period of the contract. It
is justified that this problem is occurred due to Letter of credit/LC case it means due to
problem in foreign currency.

The rest two extension of time for project 1 i.e. the fifth and sixth EOT 186 and 180
calendar days respectively are given to the contractor without justification. Which is from
the total extension of time 30.2% was granted without justification. Similarly, for the second
project 36% of total granted extension of time was without justification.

The client and the contractor carried out formal meeting and negotiating each other about
the reason for delay and after that the client extend the completion date without formal time
claim by contractor. Therefore consultants carried out the time extension delay analysis
subjectively with personal judgment of the professionals and not in procedural and scientific
ways as per the standards stipulated in contract provisions.

Liquidated damage

The Liquidated Damage clause, by its nature, is included in construction contracts in order
to dissuade the contractor from completing the works late. The contract document they use
is PPA condition of contract 2011. For bot projectes liquidated damage is not enforced
according to the contract agreement agreed.

As the interview with the owner of this project result indicates, the contractors are not
financially capable for pay liquidated damage. But the as per the consultants, the client is
afraid of enforcing liquidated damage because the client representatives are strongly related
with the contractor and they don’t want to lose their relationship.

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Case study 2

The second case has been conducted from one of public building project which face delay.

The total contract price of this project was two hundred five million nine hundred thirty two
thousand five hundred sixty seven birr and ninety seven cents (205, 932,567.97). The total
schedule given in contract was 730 calendar days. The total extension of time granted for the
second project was 925 calendar days, which is 126.71% of the original contract amount.
After approved time extension, the final schedule becomes 1655 calendar days. However,
the current status of the project was still 73.19% with time of overrun 31 days with no time
extension.

Table 4.22 Approved extension of time for case 2

Table 1Approved extension of time for case 2

No of extension of time Granted Date Remark

EOT-1 190 With Justification

EOT-2 200 With Justification

EOT-3 325 With Justification

EOT-4 120 With Justification

EOT-5 90 Without Justification

The completion time for this building project is extended five times. The first, second, third
and fourth Extension of time guaranteed 190, 200, 325, and 120 calendar days respectively.
These extension of time was granted with justification. The rest extension of time i.e. the
fifth and EOT 90 calendar days is given to the contractor without justification or evaluation
of time claim.

Liquidated damage is a solution for the client not to lose once property due to delay but it is
not practically manipulated for most of this project. In this project termination was
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recommended by consultant. But, as consultants thought that project termination is a

headache for the client. If termination is done for one project the client may lose time and
extra money in order to commence newly project. So, amicable settlement is a preferable
mechanism rather than enforcing liquidated damage. That means even if the contractor is
incapable to complete the project the client needs negotiation with the contractor to
complete the project to avoid bidding for new contractor.

Due to these delay handling practice the client unable to use that project on time and for the
specific function. Delay also affects contractors by so many ways. Like problem of material
cost overrun/price escalation, transportation cost and incapable to participate the newly
project unless completed the previous project work progress. In another way delay is not
good for construction the company profile.

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CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1 Conclusion

The objective of the thesis is to assess delay handling practice in public building project of
SNNPRS. In light of this, the research is meant for to investigate the gap between the
existing delay handling practices and the logical and acceptable techniques. To achieve these
objectives, the study use questionnaire survey, and case study as a research instrument. The
result obtained in this processes have been presented and discussed in the previous chapter.
In this chapter the major findings of the research which have been discussed before will be
briefly summarized in accordance with the objectives of the research.

Most contractors notify delay after project completion date is over. This indicates the delay
notification practice by contractor is not according to the condition of contract, which the
contractor must notify delay within 15 days of becoming aware that delay may occur.

The response of consultants for the extension of time request by contractor is on time.

Almost half percent of contractor blame that time extension analysis technique is partially
fair. And main factor affecting the evaluation is Lack of professional, technical and
managerial skill of consulting firms.

The result shows that 82.8% of contractors and all of consultant and client agree that the
detail for time claim request by contractors is not submitted on time. According to
consultant’s and client’s response Poor paperwork control by the contractor were rated as
the main reason for delay in submitting the details of EOT but most contractors said that Site
staff inexperienced in contract procedures is the main reason behind.

Almost all respondents agree that there is no limit for clients to grant time extension to the
contractor.

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High proportion of respondents indicated that public owners are not enforce the liquidated
damage clauses, 51.7% of contractors and 66.7% of consultant and 100% of client response
that liquidated damage is not enforceable in accordance with the contract agreement.
Enforcement of the liquidated damage clause in construction contracts in SNNPRS is
problematic partly due to Inability of clients to study the contract documents very well and
ignored of liquidated damage provision by sympathetic clients are the main reasons for non-
enforcement of liquidated damage clauses. In addition relationship between contracting
parties and capability and financial status of local contractors are factors which affect the
enforcement of liquidated damage.

Non-enforcement of liquidated damage provision, the contractor is not fill responsible for
duration of the project and they thought that they would not punished even if the project is
delayed and these appreciate project delay, which cause a negative effect like time overrun
,cost overrun dispute.

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5.2 Recommendation

 All stakeholders in government building construction projects are not discharging

their responsibilities, therefore it is recommended to enhance capacities of
stakeholders and all stakeholders should discharge their responsibilities to promote
proper delay handling and reduce the effect that caused by poor delay handling
practice.
 Contractors should submit intent for time claim on the time stipulated on the contract
and the time extension request provide by the contractors shall be fair in order not to
generate conflict between parties and to inform the owner or the contract
administrator that a problem exists, which could entitle the Contractor to an
extension of time claims and/or compensation, if it is provided for by the contract.
 Conditions of contract should clearly state about the limit for extension of time
granted by employer in order to give a risk for the contractor in regard to duration of
the project.
 Consultants shall use modern management techniques to evaluate the time claims
and they should evaluate time claims in impartial, genuine, consistent and
professionally and contractually accepted manner rather than evaluating by personal
judgment.
 All contracting parties must be accountable for their responsibility and also ethical
for their work in order to handle delay issues without interference of friendship and
corruption.
 Governmental should have, for public projects, professional who trained about
contract administration to handle delay issues in appropriate manner and accordance
with the accepted condition of contract.

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Cronbach, L., J. (1951). Coefficient alpha and the internal structure of tests. Psychometrical, 16(3),
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Chung, H.W.2002. Understanding Quality Assurance in Construction. A practical guide to ISO 9000
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Design building. (2019, january 28). Retrieved from design buildins web site:
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Eggleston, B. 2009. Liquidated damages and extensions of time in construction contracts. 3rd
edition. John Wiley & Sons Ltd, United Kingdom.

Ethiopian Civil Code, May 1960

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Ghana. Australasian Journal of Construction Economics and Building, (2010)

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building control conference (pp. 490-495). Malaysia: Elsevier Ltd.

Ismaiel Ibrahim (2006) construction code, laws and principle lecture handout. James. R. Knowles
(2005). Extension of time and Claim for Delays and Disruption.

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Lew yoke-lian, s. T.-l. (2012). the assessment of applications for extension of time claims in
malaysian construction industry. IACSIT.

Mamuye, E. (2016). Identification of the Major Causes to the Delay in the Construction of 40/60
Saving Houses. Addis Abeba.

Mc-Graw-Hill (1998) Construction Change orders, Impacts, Avoidance and documentation.

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MoWUD. (1994). standard conditions of contract for construction of civil work projects . ethiopia.

Musa, I.D. (2012). the causes and effect of delay in construction. malaysia : universiti malaysia
pahang .

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PPA (2011). User’s Guide for Standard Bidding Document for the Procurement of works. Public
Procurement agency, MoFED, Addis Ababa

Sambasivan, M. and Soon.,. (2007). cause and effect of delay in maleysian construction industry .
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and production management .

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Tesfaye, H. (2016). Review of time extension delay analysis techniques and trend with
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Tshikila, M. M. (2014). the extent of enforcement of the penality clause on public sector
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Tumi SAH, Omran A, Pakir AHK. Causes of delays in construction industry in Libya.
ICEA-FAA 2009

Tushar, S. A. (2016). causes and effects of delay in construction project. international

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APPENDEX

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APPENDEX I- QUESTIONNAIRE

Dear Participant

At present, I am working on a research entitled Delay handling practice in public building

project of SNNPR for the partial fulfillment of the requirements for the degree of Master of
Science (MSc) in Construction Technology and Management at Hawassa University,
Institute of Technology. The main objective of this research is to assess delay handling
practice of public building projects in SNNPR and to investigate the impact of delay
handling practice on the overall projects. To meet this research objective, it is necessary
to have the response of contractors, client and consultants currently working on the scheme
project and hence you are one of the stakeholders recruited to respond this questionnaire.
Accuracy in answering the questions included in the questionnaire is necessary to have
reliable output of the data analysis. Moreover, your immediate response helps to finish the
research timely. I confirm that your response will be used only for the purpose of this
research Looking forward to your soonest response.

With Regards
Rahel Negusse

If you have any question or look for clarification on the questionnaire, please contact me on
Tel:-09-15-15-82-63 or E-mail:[email protected]

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PART I: -Background Information

1.1 what is the type of organization you are working?

Client consultant contractor

1.2 What is your position in the organization?

________________________________

1.3 What is your education level?

Diploma BSC MSC PhD

1.4 work experience in building construction (in years)

Less than 2 2-5 5-10 more than 10

PART II: - Delay handling practice

1. What type of Conditions of Contract have you been using?

PPA
FIDIC
Others (Please specify)………….………………………………
2. Have you faced delay issues on project you have ever participated in SNNPR?
Yes No
3. If your answer is yes how did you handle it?
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

4. On what occasion does the delay to progress is notified?

When the progress is estimated and consequence is predicted
If the contract requires it

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If it is likely to delay
If Others (Please specify)………….………………………………
5. Did the consultant or the client respond time claim on the time specified in the
Contract?
Yes No

If no why?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
__________________________________________________________________

6. Did the client accept time claims after approved by the consultant?
Yes No

If no why
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

7. Do you think the time extension delay Analysis evaluation technique by consultant
is fair and logical?
Yes Partially No

If it is partial or no, what factor(s) do you believe behind the problem?

Lack of professional, technical and managerial skill
Negligence to provide the service as per the specified condition
Corruption
If Other (Please specify) ______________________________________

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8. To what Extent employer and consultant extend project completion time due to their
fault?
Up to 100 % of the original contract time
Up to 200 % of the original contract time

Up to 300 % of the original contract time

Up to 400 % of the original contract time

Haven’t known limit

9. Is late submission of details of claims for time extension is a problem?
Yes No
If you say yes Please rank the reasons for late submission of the details of claims for
extension of time

Please indicate on boxes using the following criteria

1. Never 2. Rarely 3. Sometimes 4. Often 5. Greatly often

No Reasons for late submission of EOT claim 1 2 3 4 5
1 Site staff inexperienced in contract procedures
2 Engineer requests excessive details
3 Poor paperwork control by the contractor
4 Actual delay could not be determined until end of construction
5 The effects are not known/could not foresee that an event would
cause a delay until the delay occurred
6 Focus on progress of work and not on claim
7 contractor's staff too busy on other tasks
8 lack of staff to deal with EOT claims
9 Contractor does not want to cause friction or offend the employer

10. Do you believe that liquidated damage provisions are still relevant in construction
contracts?

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Yes No
11. From your experience do you think that liquidated damage is enforceable for delayed
project
Yes sometimes No
If your answer is no or sometimes what do you think the reason behind?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

12. What do you loss because of non-enforcement of liquidated damage?

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
13. Which of the following factors affects the application of Liquidated Damages:
(Please rank using the scale; 1- Strongly agree 2- Agree, 3- Slightly agree
4- Disagree 5- Strongly disagree

No Factors 1 2 3 4 5
1 LD are generally overlooked or ignored in by sympathetic
clients
2 Introduction of Fluctuation Clause in Contracts
3 Inability of clients to study the contract documents very well
4 Other,(Please specify)

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PART III: - Effect of Delay handling practice

1. What is the effect not enforcing construction clauses related to delay?

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

2. What is the effect if the contractor not notify delay according to the contract
agreement?
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

3. Please rank the effect of delay handling practice below in what you consider to be
the most influential. The five –point scale ranged from 1 to 5.
1. Strongly agree 2. Agree 3. Slightly agree
4 Disagree 5. Strongly disagree
No Effect of delay handling practice 1 2 3 4 5
1 Time overrun
2 Cost overrun
3 Disputes
4 Total abandonment
5 Low quality of work
If other please specify
6
7
8

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APPENDIX II- CASE STUDY: INTERVIEW

For contractor

1. What is the total cost of the project?

2. What is the original contract period?

3. What is the current status (in %) of the project?

4. How do you handle project delay?

5. When does you notify delay?

6. Have you got any approved extension of time claims?

For consultant

1. How do you handle project delay?

2. When does you respond for time extension request?

3. What procedure do you follow to extend project duration?

4. Did the client enforce liquidated damage?

5. What is the reason for non-enforcement of liquidated damage?

For client

1. How do you handle project delay?

2. Did you enforce liquidated damage?

3. What is the reason for non-enforcement of liquidated damage?

4. What does your company affect because of non-enforcement of liquidated damage?

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APPENDIX III - PROJECT DISCRIPTION

Project 1

PROJECT PARTICULARS

Project :-
Employer:-
Consultant:-
Contractor: -

CONTRACT SUMMARY

TIME

Date of Signature:- 12 th February 2014

Site handover: 15 Calendar days
Mobilization Time:- 15 Calendar days
Commencement Day:- 14 th March 2014
Completion Date:- 13 th March 2016
Original contract Time - 730 Calendar days
Time extension Due to: -
a. Supplementary agreement -
b. Variations 1211
c. Other 1211
Extension of time Approved 1941
Revised Contract perio Revised Completion
7 th July 2019GC
D
Time Elapsed In Date:- 1972 Calendar days
Time Elapsed In %:- 103.19%
VALUE
Contract Value Main Agreement Birr ( A ):- 453,183,005.41 ( Excluding VAT )
Supplementary Agreement ( B ):- -
Additional work ( C ) -
Variation work ( D ) -
Total Amount of Agreement ( A+B+C+D ) 453,183,005.41 ( Excluding VAT )
Vat 15%:- 67977450.81
Grand Total Amount of Agreement
521160456.2
Over all Percentage planned:-
Over all Percentage of Work done:- 79.72%
PAYMENT
Total Advance Payment taken (A):-
104,232,091.24
(INCLUDING VAT)
Payment Certified to date (B) (excluding
345,695,053.25
VAT):-
Payment this month (INCLDING VAT) 15,451,523.62
Advance repaid to date (excluding VAT):- 65,586,936.25

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Assessment on delay handling practice on public building projects of SNNPRS
2019

Project 2

78