A Case Study of a Leading Real Estate
Company in Ethiopia
CASE STUDY / LESSONS LEARNED
By Engineer Kebede Bekele Desta
Addis Ababa, Ethiopia
Abstract
Construction in Ethiopia’s residential private housing market typically suffers from considerable delays, resulting in a significant amount of time added to the duration of the project compared to initially expected. This paper assesses the root real causes of using construction delay factors for a leading real estate company in Ethiopia. The methodology used is a quantitative research design. Data collection took place among 50 construction professionals. Data analysis employed both Root Cause Analysis (RCA) and the Relative Importance Index (RII). Contractor-related delay causes arise from scheduling issues (RII 0.84) , inadequate site safety (RII 0.74), and delayed delivery of materials (RII 0.74). The use of new technologies in project management and effective logistics would help mitigate these contractor-caused delays. Owner-related reasons for delay stem from managerial problems (RII 0.68), and contract disputes (RII 0.67). Streamlined approval processes, more clearly defined cost escalation provisions, and a liquid asset base to enable timely payments are all necessary to address owner-caused delays. In addition, consultant-caused delays relate directly to poor quality control (RII 0.72), and slow approvals (RII 0.66). Both may require more stringent technical oversight and a more rapid response to requests for additional information to reduce the need for costly rework. Lastly, external factors that impact construction projects include shortages in the marketplace (RII 0.79).Supply chain hedging, and purchasing large quantities of materials at one time will also help protect the project from high prices and supply interruptions. Ultimately, this study finds that systemic changes within organizations, such as adopting scientific scheduling, adding inflation escalators into contracts, and proactively managing their supply chains can help alleviate the many delays ranked at or near the top and provide for resilient project completion for a top real estate firm in Ethiopia.
Keywords: Construction Delays, Real Estate Development, Relative Importance Index (RII), Ethiopia, Fish bone Diagram, Project Management
- Introduction
Construction projects are an essential component of development. This includes residential and commercial building construction, transportation construction such as roads, highways, railroads and airports. Industrial facility construction is also included. Construction projects have become increasingly important for the continued health of the economy. However, construction projects are extremely difficult to manage due to the various number of uncertainties, the amount of complexity involved in managing a multitude of stakeholders, and the variety of technological problems encountered throughout the process. Delays in completing a construction project are a significant problem for all construction projects around the world. However, it appears that this issue has reached epidemic proportions in developing countries. Delays have been identified as a major obstacle to successful construction project delivery.
Delays in completing construction projects continue to be a serious issue regarding project delivery. It is stated that the success of a construction project is determined by three elements: time, cost, and quality. To meet the requirements necessary for achieving each of these aspects, careful planning, coordinated execution, and efficient management of project resources, stakeholders and processes are required. A commonly referenced model known as the “project management triangle” supports this assertion. The triangle suggests that there is a relationship among the three project objectives. If one objective is compromised, at least one other will be affected negatively affected (Amoah et al., 2021). For example, would be if a delay occurs during the construction phase extending the schedule, this could result in additional costs and/or potential loss of quality.
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How to cite this paper: Desta, K. B. (2026). Assessment of Construction Delay Factors: A Case Study of a Leading Real Estate Company in Ethiopia; PM World Journal, Vol. XV, Issue V, May. Available online at https://pmworldjournal.com/wp-content/uploads/2026/05/pmwj164-May2026-Bekele-Assessment-of-construction-delay-factors-in-Ethiopia.pdf
About the Author
Kebede Bekele Desta
Addis Ababa, Ethiopia
Kebede Bekele Desta is professionally a Civil Engineer with more than 23 years of experience in the Ethiopian construction sector. He has a BSC/MSC in Civil Engineering and MBA in construction project management. He is currently a PhD candidate in the field of Business Leadership (Project Management). With over a decade of experience in construction and project management, currently serving as PPP and Special Projects Manager at Real Estate Company. Skilled in overseeing large-scale projects, ensuring quality management, and spearheading successful public-private partnerships. Committed to driving efficient project execution while fostering collaboration and excellence. Brings a wealth of expertise from previous leadership roles, including managing engineering departments and contract administration. Dedicated to aligning organizational goals with innovative project management strategies to deliver impactful results. He can be contacted at kbdmst@gmail.com
