ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS
SUITABLE FOR PUBLIC BUILDING PROJECTS IN ADDISABABA
PREPARED BY:
1.Ahmed Jafer
2. Bereket Belete
3. Betelhem Foeno
4. Brikhti Tirfe
5. Ekram Awel
6. Haileab Seifu
ETS 0102/07
ETS 0223/07
TETS 023/07
ETS 0311/07
ETS 1163/07
ETS 0579/07
Advisor: Solomon Tadesse
A Thesis submitted to
Department of Construction Technology and Management for Impartial Fulfillment of the
Requirements for the Degree of Bachelor of Science in Construction Technology and
Management
Addis Ababa Science and Technology University
Addis Ababa
June10 2019
Department of Construction Technology and Management (BSC)
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
Addis Ababa Science and Technology University
School of Civil and Architectural Engineering
Department of Construction Technology and Management
ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS
SUITABLE FOR PUBLIC BUILDING PROJECTS IN ADDISABABA
Approved by: BOARD OF EXAMINERS
1. -------------------------------ADVISOR
2. --------------------------------EXAMINER
3. -------------------------------EXAMINER
4. --------------------------------EXAMINER
--------------------------------Signature
--------------------------------Signature
--------------------------------Signature
--------------------------------Signature
Department of Construction Technology and Management (BSC)
------------------Date
-----------------Date
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------------------Date
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Acknowledgment
We wish like to express our sincere thanks to our advisor and instructor Solomon
Tadesse and Yordanos Moges for their guidance, Criticism, encouragements and advice during
the research period.
We are deeply grateful to all who have given assistance in obtaining the information and
documents related to this work; specially to those who have helped us filling the questionnaires.
Finally, we would like to thank all others those who have contributed for the success of
this thesis.
Department of Construction Technology and Management (BSC)
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Abstract
The construction industry plays a significant role in a nation‘s social and economical
development. There cannot be much progress in the national development without construction
particular is in developing countries where there is lack of infrastructure and other basic
facilities.
This paper aims to identify types of construction contracts and their challenges and
problems in implementing to public building projects from the experiences and opinions of
contracting stake holders who are involve in public building projects and examining the factors
influencing their selection. The analysis is based on findings of the questionnaires and
interviews.
The analysis of different construction contract types and associated project delivery
methods indicates that they establish different patterns of responsibilities and relationships
between clients and the varies parties involved in public building projects.
From the analysis studied, three factors were found to be related to contract selection: the
characteristics of client, particularly their experience and expertise in construction, the level of
performance required by clients and the construction complexity of projects.
These findings, together with previous research, suggest that it is unlikely that there is
one best form of contract for particular public building projects. Rather, which is the appropriate
contractual arrangement varies according to the particular set of project circumstances, especially
the type of client, his time and cost requirements and the characteristics of the project.
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Table of Contents
Page
Acknowledgment ................................................................................................................. i
Abstract ............................................................................................................................... ii
List of Tables ...................................................................................................................... v
List of Figures .................................................................................................................... vi
Abbreviations .................................................................................................................... vii
Chapter One ........................................................................................................................ 1
1. Introduction ..................................................................................................................... 1
1.1 Background ................................................................................................................... 1
1.2 Statement of the problem .............................................................................................. 2
1.3 Research questions ........................................................................................................ 2
1.4 Objectives of the research ............................................................................................. 3
1.5 Scope and Limitation of the studies .............................................................................. 3
1.6 Organization of the thesis ............................................................................................. 4
Chapter Two........................................................................................................................ 5
2. Literature Review............................................................................................................ 5
2.1. Background .................................................................................................................. 5
2.2 Project Delivery System ............................................................................................... 6
2.3. Definition ..................................................................................................................... 9
2.4. Essentials for a valid contract. ................................................................................... 10
2.5 Formations of contract ................................................................................................ 10
2.5.1 Offer and Acceptance. ..................................................................................... 11
2.5.2 Consideration ................................................................................................... 12
2.5.3 Capacity to contract ......................................................................................... 13
2.5.3.1 Genuine consent ............................................................................................ 13
2.5.3.2 Intention to be legally bound ........................................................................ 14
2.5.4 Legality of the object ....................................................................................... 14
2.5.5 Formalities ....................................................................................................... 14
2.6 Invalidation of contract ............................................................................................... 15
2.6.1. Mistakes .......................................................................................................... 15
2.6.2. Fraud ............................................................................................................... 15
2.6.3 False statement ................................................................................................. 16
2.6.4. Duress ............................................................................................................. 16
2.7. Contract Terms........................................................................................................... 16
2.7.1 Express terms ................................................................................................... 17
2.7.2. Implied terms .................................................................................................. 17
2.7.3. Statutory terms ................................................................................................ 18
2.8. Discharging of contact ............................................................................................... 18
2.8.1. Performance .................................................................................................... 18
2.8.2. Agreement ....................................................................................................... 18
2.8.3. Frustration ....................................................................................................... 18
2.8.4. Breach ............................................................................................................. 19
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2.9 Types of construction contract .................................................................................... 19
2.10 Contract Document ................................................................................................... 23
2.11 Construction Claim ................................................................................................... 24
2.12 Construction disputes ................................................................................................ 25
Chapter Three.................................................................................................................... 27
3. Research Methodology ................................................................................................. 27
3.1 Research approach ...................................................................................................... 27
3.2 Sample Size............................................................................................................. 27
3.3 Steps of conducting this research ................................................................................ 28
1. Literatures are reviewed ........................................................................................ 28
Chapter Four ..................................................................................................................... 30
4. Analysis and Discussion ............................................................................................... 30
4.1 Analysis....................................................................................................................... 30
4.1.1 Profile of the questionnaires ............................................................................ 30
4.1.2 The respondents ............................................................................................... 30
4.1.3 Challenges and problems in selecting suitable project delivery system. ......... 31
4.1.4 The stake holders experience towards highest performing construction project
delivery method. ................................................................................................................... 34
4.1.5 How often stake holders use different alternative construction contract types?
............................................................................................................................................... 34
4.1.6 Merits and demerits of using different construction contract types. ................ 35
4.2 Discussions ............................................................................................................. 40
4.2.1 How do implement project delivery systems in public building projects? ...... 40
4.2.2. The stake holders experience towards construction contract type .................. 41
4.2.3 What are challenges and problems in implementing different construction
contract types to public building projects? ........................................................................... 42
Chapter Five ...................................................................................................................... 44
5. Conclusions and recommendation ............................................................................... 44
5.1 Conclusions ............................................................................................................. 44
5.2 Recommendations ................................................................................................... 46
Reference .......................................................................................................................... 48
APPENDIX – A /Questionnaires to contractor and consultant/ ....................................... 50
APPENDIX – B /Research proposal/ ............................................................................... 57
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List of Tables
Table 4.1 Rate of Response
Table 4.2 Project delivery system experienced by stake holders
Table 4.3 Tendency of delivery system to arise dispute
Table 4.4 How often stake holders use different alternative construction contract types
Table 4.5 In terms of time
Table 4.6 In terms of cost overrun
Table 4.7 In terms of quality management
Table 4.8 In terms of risk management
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List of Figures
Figure 4.1- Project delivery system experienced by stake holders
Figure 4.2 - Tendency of delivery system to arise dispute
Figure 4.3 – Experience of stake holders use different alternative construction contract types
Figure 4.4 – Efficiency In terms of Time
Figure 4.5 – In terms of cost overrun
Figure 4.6 - In terms of quality management
Figure 4.7 - In terms of risk management
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Abbreviations
CIC- Construction Industry Council
CM- Construction Management
DB- Design Build
DBB -Design Bid Build
ECSA- Ethiopian Central Statistics Agency
GDP- Growth Domestic Product
MoWUD- Ministry of Works and Urban Development
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Chapter One
1. Introduction
1.1 Background
Construction industry in Ethiopia is one of the major sectors which involves
substantial amount of finance and human resources. Where the sector is expected to register a
36.4% annual growth and contribute 5.2% to the country‘s GDP (ECSA, 2007). Public
construction projects in Ethiopia are parts of the country‘s development initiative. It shared
considerable amount of the country‘s scarce financial resources.
In Ethiopia, the construction industry is the highest recipient of government budget in
terms of government development program. Consequently,
public
construction projects
consume an average annual rate of nearly 60%, according to MoWUD (2006), and 58.2%
according to Wubishet (2004), of the government‘s capital budget.
Construction which is responsible for creating, defining and maintaining the built
environment with in which most other social and economic activities take place, is by far the
most important way in which societies create new value. The construction processes is subjected
to the influence of highly variable and sometimes unpredictable factors. The construction team
which includes architects, engineers, consultants, clients, suppliers, sub constructors, and other
changes from one job to the next. All these construction teams to different construction sites such
as sub soil condition, surface topography, weather condition, material supplies limitations and
services, local subcontractors and sever conditions are an important part of construction.
(Richard H. Clough,1981)
As the result construction industry needs careful planning and assessment before the
implementation. Public building projects are one of the part of this industry and it plays great
role on development of Ethiopian economy. Because it gives:

Wider job opportunities for citizens

Great investment opportunities
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Even though the construction of these projects gives a big impact for development of
country economy and civilizations; their successful execution and completion requires
construction contracts and delivery systems.
People in public building projects use different types of construction contracts in order to
make smooth relationship and for successful completion of project. As we know public building
projects in our country uses lump sum and unit price contract types in order to save time and
minimize risks.
This thesis is intended to assess these types of construction contracts together with their
impacts in implementation to public building projects based on impact of quality, time& cost in
current practice. It has therefore been conducted to deal these issues using semi- structured
questionnaires for contractors (Grade 1) and consultants which are found to identify problems
and challenges in implementing different types of construction contracts.
1.2 Statement of the problem
Cost, quality, time and healthy business relationships are the necessary issues in selecting
suitable contract types for public building projects. However, the fact is different due to which
the occurrence of disputes as the result of not only variations and lack of coordination but also
how to select suitable contract type and delivery mechanisms to avoid contractual problem .If so
how can we minimize this impact without jeopardizing the objectives of the contracting parties?
Since the goal of every construction project stake holders is the completion of project that meets
the objective of time cost, and quality together with continuity business relationships.
1.3 Research questions

What are challenges and problems in different construction contract types?

What factors makes the construction contract to have challenges and problems?

What contract types to be adopted on public building project?

What are the merit and demerit of different contract types on public building projects?
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1.4 Objectives of the research
 The objective of this paper as indicated above is to identify the problems and challenges
of different contract types in implementing to public building projects
 To enhance relations ship among contractual stake holders by selecting suitable contract
types in order to minimize problems and challenges that lead to disputes.
 To select suitable delivery systems for public building projects
 To evaluate delivery system which are suitable for Ethiopian public construction industry
1.5 Scope and Limitation of the studies
The study is concerned with identifying suitable contract types for public building
projects in general. It intends to give a possible solution for contractual problem and challenges
in public building project sector.
Practice shows that it has become rare event that construction projects are completed as
per scheduled time, budgeted cost and desired qualities. We believe that most of the factors that
contribute to the above truth are related to the frequent claims that arise in many projects and
finally leads to dispute. Therefore, the significance of this thesis is to identify factors which
make some contract types weak in implementing public building projects, and to point out the
alternative contract types for particular construction project to minimize the occurrence of claims
and consecutive disputes.
Limitations are encountered during conducting, processing and writing a research. some
of them are;

Lack of timely response of some of the construction firms and the consultant for the
distributed questionnaire

Difficult to access full document on challenges and problem of different contract
types in implementing public building projects

Incomplete response for questionnaires (especially for the open questions) by some
contractors and consultants.
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1.6 Organization of the thesis
This research contains five chapters as described below;

Chapter One is an introductory part in containing discussions on background,
research problems, aim and objective, significance, scope and limitation and
organization or layout of the study.

The second chapter describes literature review on subject area of contract;
construction contract types and delivery system which had help us to point out
different contract types which may be good for public building projects.

Chapter Three describes the research methodology which contains the way
how the research is conducted by including how the questionnaires are
prepared and to whom they are distributed.

Chapter Four talks about the analysis of the collecting data from the concerned
parties.

Chapter Five contains conclusions and recommendations of what discussed in
the previous chapters.
Finally Reference and Appendices are included.
Problem
identification
Literature
Review
Questionnaire
preparation
Analysis
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Conclusion &
Recommendation
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Chapter Two
2. Literature Review
2.1. Background
A contract is an exchange of promise between two or more parties to do or refrain from
doing an act which is enforceable in court of law. It is where an unqualified offer meets a
qualified acceptance and the parties reach consensus and idem. The parties must have the
necessary capacity to contract and the contract must not be either trifling, indeterminate,
impossible or illegal. Breach of contract is recognized by the law and remedies can be provided.
Some types of contract made in written form and others made orally. The basic purpose of a
written contract is to define exactly and explicitly the rights and obligations of each part there of
(Clough, Richard H. 1975). Contract law can be classified, as is habitual in civil law systems, as
part of a general law of obligation (along with tort, unjust enrichment or restitution).
Construction is a contracting business in which the rights and obligations of the parties
such as client mostly financer contractor, who contract, consultant who acts as clients
professional advisor is described. Those Participants takes on and manages the sequence of
interrelated activities of the construction project from beginning to the end. A construction
project to all intents and purpose is the production of capital goods and like other capital
investment, involves careful planning and decision making. Hence, its production is the result of
many months of processes that required briefing, planning, Engineering, designing, funding,
budgeting and negotiation. Conversely, unlike and other capital investment, wrong decisions
made earlier in the construction process are expensive to change and therefore a careful
definition of objective and responsibilities of each participant at the pre- contract stage of each
participant at the pre contract stage (Wubeshet Dr .Ing.,2006).
Client: - The client may be a person or a group of persons acting as a corporate body
such as a local government authorities or a government department, a company a corporation or
joint board or any other authorities possessing adequate powers. The main responsibility of a
client is making suitable working environment for counteracting parities especially for contractor
and made payment for each items of work.
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Consultant: - It is a person or a group of a person who gives technical advice to
contractor and owner throughout the project period. A construction operation can only be
achieved through well-coordinated team effort. Consultants are one of the member of these team.
The major responsibility of consultants are preparation of designs and specifications, supervising
over all activities of the project and certifies payment certificates.
Contractor: - It is a person or a group of a persons or a companies who under takes the
construction. He must have the skill and competence to execute the work exactly as the owner
wants and the engineer advises as per the drawings ,specifications and instructions issued.
2.2 Project Delivery System
The ability to deliver and different construction delivery systems is more important now
than ever before in the construction industry. Clients and projects have different needs. Part of
the process of the construction professional is to identify those needs and provide away to deliver
a completed project that satisfies both the needs of the client and objectives of the project.
A project delivery system is the process by which a project is designed and constructed. It
defines the roles of the owner, architect, and contractor and / or construction manager and sets
specific responsibilities for each party (Wikipedia 1990).
The force account method required when the project owner engaged themselves to
undertake the project. Often such a system is promoted if the projects owners believe that there is
a comparative advantage in cost, time and quality issues. Besides, when there is a lack of
capacity from the private sector to undertake very large and to technologically new projects,
public companies do undertake such Project using force account delivery systems. These days
this type of delivery system is used when project are small and places are remote such that
reaching them is difficult and in general they are not attractive enough to call the attention of
bidders.
The Traditional bid method (Design Bid Build) requires the owner to select Architect
to develop the project fully. Upon completion of the construction documents, which includes
completed plans and specifications, the project goes out for bid and generally the contractor with
the lowest price will be awarded the construction contract. Sometimes there is an invited or
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―short list‖ of qualified bidders and sometimes, an advantage of this method is that it may
provide the lowest possible price. Disadvantages include inability to choose individual
construction team members, having contractors that are not compatible with each other, no early
or procedures that can affect the overall cost of the project and longest process in that complete
plans and specifications must be prepared before contractors put a price to the project.
The negotiated general contractor method is typically used the contractor and owner
have developed a relationship, established or new, and there is mutual trust between the parties.
This relationship is essential because the owner is relying is on the contractor‘s ability to work
with the owner and Architect as a member of the design and construction team. In this case
established relationships and known quality and level of service are most important. Advantages
here included choosing contractors compatible with the owner, earlier pre- contraction interment
of a construction processional during the design phase adding value -engineering consideration
budget before final fundraising or financing is obtained , bidding and management of the bids
and retention of a check and balance system with the architect . Contracts may be written on a
time and material basis. Time & Material not to exceed a guaranteed maximum price or for a
lump sum guarantied maximum price. Subcontractor contracts are normally held by the general
contractor providing single source responsibility. This method shortens the design and bidding
cycle, allows for a designed project scope that will probably be within budget and may also
product the lowest price
Construction management is most beneficial when working on many larger, complex
and long term projects where there are likely to be multiple prime contractors and the owner
requires extra management resources to control the project. A major advantage of CM/ advisor is
the relationship between the CM and the owner. If the CM does not self-perform any work, he
can be viewed as a true advocate of the owner, not having any conflict of interest concerning the
actual construction. The CM typically comes no board early in the design process to aid in value
engineering and budget control. Under this method, all construction contracts are written directly
with the owner. The use of a construction management company can also shorten the design and
bidding process. A disadvantage of construction management is that unit a project reaches a
certain size and complexity; it will generally be more expensive than negotiated general
contractor or Design /Build. Another disadvantage is that no signal source of contractual
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construction responsibly exists since all contracts are held by the owner. The CM, not being the
contractor, is not CM/contractor but the functions during the design phase are better to
Negotiated General contractor but the functions during the design phase are better defined. In
this case the CM loses his benefit of no conflict of interest but the owner gains single source
responsibility for construction Management gained much of its popularity from public work
which normally requires three contractions besides by law. To circumvent that bidding
requirement, construction Managers were selected and hired as a ―building professional‖ like the
architect through the interview process which is exactly what industry does in selecting a
General contractor through the Negotiated General contractor Method.
The Design-Build method of project delivery allow for the contractor to the single
source of responsibility for the owner as Designer and contractor. The contractor may either have
architects and engineers on staff or may choose to hire outside design services to perform the
design function of the contract. Advantages include source responsibility and early involvement
of construction professionals in the design process, but it reduces the safeguards of a good check
and balance system in that the Architect and contractor are working together as one entity. Under
this method the owner chooses its Design-Build partner. This delivery system like the Negotiated
general contractor Method has the contractor self- performing the work to assure quality and
meet the project schedules. This system may also speed up process over the Traditional Bid
Method and also provide the lowest cost.
In utilizing any of the five methods described above and variations thereof, an Owner
must possess varying levels of expertise, involvement and trust as well as having a project that
warrants a particular delivery system. The decision to choose one of these Delivery systems is
very personnel to each owner or organization. Each owner ultimately decides what is most
important to him or herself. The ability to choose members ultimately constructions team, the
philosophy of which system will provide the best value for the construction dollar expanded, the
level of trust in the individual team members, the time requirements of project the ability to
choose a level of quality and service, the amount and manner input from team members during
the design phase and who will help make and identify the cost decisions the earliest are all
consideration an owner has weigh in making these decision.
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A Contract in the construction industry in the 2000‘s should be prepared to offer the
delivery system with which an owner is most comfortable. Each delivery system has the same
comfortable and the same goal: to provide a completed construction project that satisfies an
owner‘s needs and the objectives of the project is constructed will be based up on the
individual‘s requirements and comfort levels of each owner.
It shouldn‘t be surprising that most contractors will let the owner make the delivery
system decision while positioning themselves to be able to offer each of the five main types .And
as if making that decision isn‘t hard enough for an owner, ―let the buyer be aware‖ there remains
a large degree of variance as to how well different construction firms can professionally delivery
a particular delivery system.
2.3. Definition
Uniform commercial code defining ―contract ―is the total legal obligation which results
from the parties agreement and does not attempt to state which act is essential to create legal
duty to perform promise.
A contract is an agreement creating and defining the obligations between two or more
parties (John William Salmond & Percy H. Winfield,1927).
A contract is legally binding agreement between two or more persons. Legally binding
agreement means that the agreement will be enforced by the court. The breach of agreement that
is legally binding allows the injured parts to claim a legally enforceable remedy from the party
who commits the breach (A.A. Kwakye, 1997.)
A contract is simply an agreement between two or more people in which a person agrees
to perform or provide as specific task or service to another person in exchange for something in
turn (Getaneh Gezaheny,2008).
We agree with A.A. Kwakye definition because he considers a contract as an agreement
between the parties and enforceability of the agreement by court.
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2.4. Essentials for a valid contract.
Essentials of a valid contract are conditions and requirement that have to be fulfilled to
have a valid contract. On the above definitions we have seen that contract is a commitment. It is
an agreement between two parties which rise to obligation that are enforceable by law. The basic
purpose of a written contract is to define exactly and explicitly the rights and obligations of each
party thereof. (Clough, Richard H 2008).
These obligations more over should be distinct from those required by law.
No valid contract shall exist unless:
 The parties are capable of contracting and give their consent sustainable at law.
 An offer of one party and its acceptance by the other party.
 It should not oppose to any policy of the government and companies.
 The object or the contract is sufficient defines and is possible and lawful.
 The contract is made in the form of prescribed by law, if any (civil code of
Ethiopia, 1960, article 1678).
2.5 Formations of contract
There are essential requirement with respect to the nature and circumstances of the
commitment that must be fulfilled for a contract to be valid. As a requirement the following four
are considered basic requirements and the last is used for certain types contracts only.
1. Offer and acceptance
2. Consideration
3. Capacities to contract
4. Legality of the object
5. Formalities
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2.5.1 Offer and Acceptance.
The most important feature of a contract is that one party makes an offer for an
arrangement that another accepts. This can be called a concurrence of wills or anidem’ (meeting
of the minds) of two or more parties. There must be evidence that the parties had each from an
objective perspective engaged in contract manifesting their agreement and a contract will be
formed when the parties have met such a requirement. An objective perspective means that it is
only necessary that somebody gives the impression offering or accepting contractual terms in
the eyes of reasonable person not that they actually did want to form a contract.
Offer: - An offer is an expression that one party is willing to be bounded by specific
terms which are set out in the contract. A contract is complete when an offer by one party is
accepted without condition by the other party and hence the two parties are willing to be bound
by their agreement.(According to civil code of Ethiopia).
An offer may be made in writing by sign or by conduct of parties and it terminates if:
 Death of the offeror or the offeree
 Failure of condition subject to which the offer was made;
 Failure to communicate acceptance within a reasonable length time or with the offer time.
 Rejected by the party to whom the offer was made.
Acceptance: - An acceptance of an offer only becomes effective when it has been
communicated to the person made the offer. If the Offer prescribes the form or manner in which
the acceptance must be made in that manner, or way which is at least as beneficial to the party
making the offer. (Getaneh Gezaheny, 2008).
An acceptance is a full acceptance by party to whom an offer has made. For an
acceptance to be deemed valid, it must be.
Absolute: - i.e. accepting all the terms of the offer. An offer shall be deemed to be
rejected and a new offer shall be deemed to be made where the acceptance is made with
reservation or does not exactly can form to the offeror (Civil code of Ethiopia Article. 1694)
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-
There must be an indication of consent: - i.e. silence does not indicate acceptance.
-
The acceptance must be communicated to the offeror
-
It must be the offeree or his agent which communicates the acceptance.
When the process of offer and acceptance are accomplished, there is an agreement.
2.5.2 Consideration
Consideration is known as the price of a promise and is a controversial requirement for
contracts under common law. It is not necessary in all common or civil law systems, and is
considered by some to be unnecessary as the requirement of intention to create legal relations by
both parties meets the same requirement under contract. The idea is that both parties to a contract
must bring something to the bargain, that both parties must confer some benefit or detriment (for
example, money, however in some cases money will not suffice as consideration- e.g. when one
party agrees to make part payment of a debt in exchange for being released from the full amount.
This can be either conferring an advantage on the other party, or incurring some kind of
detriment or inconvenience towards oneself. Three rules govern consideration.
 Consideration must be real, but need not be adequate. For instance, agreeing to buy a car
for a penny may constitute a binding contract. While consideration of one party greatly
exceeds that of another may nevertheless be held invalid for lack of real consideration. In
such cases, the fact that the consideration is exceedingly inadequate can be evidence that
there was no consideration at all. Such contracts may also be held invalid for other
reasons such as fraud, duress, or being contrary to public policy. In some situations, a
collateral contract may exist; where by the existence of one contract provides
consideration for another. Critics say consideration can be so small as to make the
requirement of any consideration meaningless.

Consideration must not be from the past. For instance, in Eastwood v. Kenyan, the
guardian of a young girl obtained a loan to educate the girl and improve her marriage
prospects. After her marriage, her husband promised to pay off the loan. It was held that
the guardian could not enforce the promise because taking out the loan to raise and
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educate the girl was consideration—it was completed before the husband promised to
repay it.

Consideration must move from the promise. For instance, it is good consideration for
person A to pay person C in return for services rendered by person B. if there are joint
promises, then consideration need only to move from one of the promises.
Civil law systems take the approach that an exchange of promises, or a concurrence of
wills alone, rather an exchange in valuable rights it the correct basis. So if you promised to give
me a book, and I accepted your offer without giving anything in return, I would have a legal right
to the book and you could not change your mind about giving me it as a gift. However, in
common law systems the concept of culpa in contrahendo, a form of ‗estoppel‘, in increasing
used to create obligations during pre-contractual negotiations. Estoppels is an equitable doctrine
that provides for the creation of legal obligations if a party has given another an assurance and
the other has relied on the assurance to his detriment. A number of commentators have suggested
that considering be abandoned, and estoppels be used to replace it as a basis for contracts.
However, legislation, rather than judicial development, has been touted as the only way to
remove this entrenched common law doctrine.
2.5.3 Capacity to contract
Capacity refers to the legal states of the parties to make a legally binding contract. In
general, every citizen of the country has the status to enter in to contractual agreement. This
excludes minors (those under age 18, under the Ethiopian law), mentally ill and incompetent
individuals and those who enter in to contract under the influence of Alcohol or other drugs.
2.5.3.1 Genuine consent
In construction contract it is essential that the agreement to be made with proper and
genuine consent by the parties to it. Therefore, a party is consent must not be induced or caused
by such circumstances as false statements, fundamental mistakes, misapprehension and undue
pressure exerted by the other party.
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2.5.3.2 Intention to be legally bound
It is necessary that the parties can be deemed to have intended to create legal
relationships. This intention makes the agreement they have reached to be one which would be
legally enforceable.
2.5.4 Legality of the object
A valid contract must be legally enforceable in front of law. If a contract is made from
illegal purpose it is void. Illegal contracts can be illegal by statue or by law. (Civil code of
Ethiopia, 1960 article 1716).
Examples of contracts which are illegal by law are those:

Agreements to commit crimes or civil wrongs

Agreements which may injure the state promotion of corruption

Agreements which limit a person‘s ability to carry out their trade.
2.5.5 Formalities
Certain types of contracts require formalities. Some needs special forms while other
require written evidence. Failure to execute a contract in a required form makes the contract
invalid. This best manifested on Ethiopian civil laws, as follows:
Unless otherwise provided on special form shall be required and a contract shall be valid
where the parties agree.

Where special form is expressly prescribed by law such form shall be observed.

The parties may stipulate that the contract shall be made in a special form (civil code of
Ethiopia 1960 Art 1719)
The civil code of Ethiopia, 1960 points out the following contracts that require written
evidence:
Relating to immovable

Contracts made with a public administration
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
Contracts of guarantee

Insurance contracts

Any other contract in respect of which such from is required by law.

Parties agree to make in a special from not required by law.
Any contract required in writing shall be supported by a special document signed by all
the parties bound by the contract.
It shall be no effect unless it is attested by two witnesses civil code of Ethiopia 1960 Art 1727.
2.6 Invalidation of contract
A contract which lack the elements of contract became non-existent make be forced dell
either of the following reasons.

Mistakes

Fraud

False statement

Duress
2.6.1. Mistakes
The most common mistakes that lead to invalidation of a contract are mistake to the;

Identity of the object

Existence of the subject matter
2.6.2. Fraud
Fraud can be a ground for invalidation of a contract based on mistake provoked by
dishonesty by cheating from contractual point of view. Frauds can be classified in to two;
principal and decisive. A fraud deceit by third party is no ground to invalidate a contract unless
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the contracting party knew the fraud and took advantage of it (Civil code of Ethiopia Article
1704).
2.6.3 False statement
Contracting parties intentionally or negligently supplies false information to another
where he knows that the letter acts up on the information and suffer damage commits a fault. A
false statement caused by silence which nullify a contract (Civil code of Ethiopia Article 1705
Sub art.2).
2.6.4. Duress
Duress is the compelling of a party to consent to a contract by threats of grave imminent
harm to such party or his ascendants, descendants of spouse. Duress can have three fold aspects.

A contract aspect leading to invalidation

A tort aspect leading to compensation for damages

Penal aspect leading to punishment under the penal code.
2.7. Contract Terms
A contractual term is any provision forming part of a contract. Each term gives rise to a
contractual obligation, breach of which can give rise to litigation. Not all terms are stated
expressly and some terms carry less legal weight as they are peripheral to the objectives of the
contract.
In construction contract we use different terms to make the contract agreement easy and
understandable .The terms of contract are provisions or stipulation in availed contract describing
some aspects of the agreement between the parties to contract. They define the right and
obligations of the parties to each other and the extent to which they are in agreement. Typically
provisions tell the parties how to govern their relationship and administer the contract. Although
often thought to be of secondary importance, those provisions have significant business and legal
consequences. Common provisions include the governing law, venue, assignment and delegation
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provisions, office provision, and force majored provisions. The contract terms may be express,
implied or statutory and are prevalent in all construction contracts.
2.7.1 Express terms
Express terms are expresses agreed by the parties to contract and by which they intended
to be bounds. They are words expressed orally or recorded in hand writing, typing or printing by
the parties. In most construction contracts express terms usually take the following forms:

The agreement: this is the written details of the project and the agreed sum payable for its
completion.

The condition or warranty: these are the detailed provision governing the execution and
administration of the project. Conditions are terms which go to the very root of a
contract, allowing the other party to discharge the contract. A warranty is not so
imperative so the contract will subsist after a warranty breach. Breach of either will give
rise to damages.

Drawings: this is a document delineating the plan shape of the project as well as its
design details.

Specification or bill of quantities: A document describing the quantity of the materials
(works man ship as well as the quantity of works required.
2.7.2. Implied terms
Implied terms are contract terms which are not written down in a contract or opens
expressed at the time the contract is made, but which the law implies. For instance, in the
absence of express terms, the following term will be implied in a construction contract.

That the building contractor will execute the workers in work man like manner and
compute within a reasonable period of time

That any materials and goods supplied by him will be of good qualities; and

That any materials and work will be reasonable fit for their purpose
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2.7.3. Statutory terms
Statutory terms are contract terms which are imparted in to contract by legislation. This
term is important as a part can on take legal action for the nonfulfillment of a term as opposed to
representations. Legally speaking only statements that amount to a term create contractual
obligations.
2.8. Discharging of contact
A contract may be discharged in the following ways;

Performance

Agreement

Breach

Frustration
2.8.1. Performance
A Construction contract will be discharged by performance on the part of two contractor
when all the work has been substantially completed including maintenance during the defect
liabilities period and when the engineer has issued all the required certificates and on the other
part of employee when he has all the payments due.
2.8.2. Agreement
A party may be discharged from contract by mutual agreement (to release each other
from their contractual obligation, novation (substitute of existing contract).
2.8.3. Frustration
Frustration occurs when the contract are executable at time of agreement but subsequent
events, over which the contracting parties have no control make it impossible to fulfill the
contract obligations. (Ethiopian civil code deals with the issue of frustration under article 1792
and 1793).
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2.8.4. Breach
Breaches occur when a party fails to carry out its fundamental contractual obligation
under the contract.
2.9 Types of construction contract
Construction contract defined as, the written agreement signed by the contracting parties
(mainly owner and contractor, owner and consultant) which bind them, defining relationships
and obligation.
A construction contract serves means of pricing construction, which allocates a risk to the
various parties involved. The owner has a sole power to decide what type of contract should be
used for specific faculties to be constructed and to set for the terms in a contractual agreement.
In any construction contract, the cost of the project consists of the costs for labor and
materials and the builder‘s profit and overhead. Before a project begins the costs are only
estimates. There is risk involved for both the owner and the builder concerning the builder‘s
ability to perform the work for a given actual cost. The differences between types of contracts
primarily lie in who takes the risk, who has to pay for cost over runs, and who keeps the savings
pay for cost over runs, and who keeps the savings if the project cost less than the estimate. In a
major construction project, some or all used there maybe one type of contract between the owner
and the primary contractor and different types of contracts between the primary contractor and
the sub- contractors. There are different types of contracts where by bidders are invited to bid.
Factors influencing the selection of different types of contracts are;

The size and type of project

Technical feasibility‘s

Economical feasibilities

Financially support

Capacity of operational resource
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A. Lump Sum Contract
In lump sum contracts, the project or tender price is determined and quoted as a total sum
of money without individual rating to excite the whole of the works and/ or services, according
to the specific works and /or services, according to the specification. In this type of contract bill
of quantities are supplied to the bidders who have to prepare their own quantities from the
drawing provided in order to built up their rate.
Some of the Advantages lump sum contracts are

The time required for preparation of tender document is reduced.

The cost of preparing bill of quantities is saved
Disadvantage of lump sum contract are

It is difficult to administer changes and amendments

No breakdown of tender sum is immediately available.

It should advisable use for comparatively small projects.
B. Bill of Quantities Contract
The bill of quantities contract contains detailed list of all items of work carried out with
estimated quantities bidders enter unit rates to gather with provisional sum for the adjustment of
the rates for variation and additional works.
Some advantages of this contract are:
 The contractor is paid for the amount of actual work done
 There is a facility for dealing with altered work
 The tendered is given a clear concept of the work involved
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Disadvantages of this contract are:
 The contractor can make unbalanced tender due to outside information.
 The total cost of the project is known after completion of the project
C. Cost plus contract
In cost plus contract the contractor is given certain percentage over the production cost of
the construction as profit and managerial expense. Cost plus contract can be addressed through
cost plus fixed fee contract or cost plus percentage fee contract. The first contract type can be
applied when project are fast- track and requires to be completed expeditiously and difficult to
estimate the project cost. The second type of contract in this topic could also applied when its
fixed is made variable using the percentage of the cost.
Some advantages of such type of contract are:
 Works are recurrent in nature.
 The works may proceed be for detailed design is complete
Disadvantage of such contract types:
 The contractor fee increase in proportion to and escalation in contraction cost and in
efficient use of resource.
 A proper control over purchase of materials and labor will be exercised by the department
are the owner
D. Item Rate (Schedule of Rate) Contract
In this type of contract a compressive list of the various items of work to be carried out is
prepared by quantities are not given. It may be that the contractor is invited earlier to propose
rate used in previous contract or rates previously entered in to the schedule by the client.
Advantages of using schedule of rates contract
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 Whole it is not possible to quantities the work to be under take.
 The time required to prepare tender document is reduced
Disadvantages of schedule of rates are.
 The parties will not have a precise indication of their respective commitment
 Where approximate bill quantities is not given two comparison of the bidders offer is
difficult
E. Labor Contract
In this type of contract the project owner is responsible for the provision of major
resources such as materials and equipment.
F. Hybrid Contract
A contract that combines two or more contract types this of contract is designed to meet
the special requirement of certain classes of works to suit their particular need
G. Special Contract
In this type of contract the contract made due to certain circumstances such as use of
specialization urgency, supplementary and continuity of services or work, remoteness &
smallness of the project.
H. Management Contract
In this type of contract the client on the basis of his experience on management selects
the management contractor. The management contract is most appropriate to large and complex
projects for early completion due to over lapping of activities for in experienced client. The
drawback of this contract is the client only deal with the design team and management
contractor.
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2.10 Contract Document
It is a very important document which binds the contractor to contract and the owner to
pay. The contract document consists of various documents such as letter of acceptance, the
tender document, particular conditions of contract, general conditions of contract, specifications,
drawings, bill of quantities and other documents forming part of the contract, in ranking order of
priority. The documents forming the contract are to be taken as mutually explanatory of one
another. Establishing the order of precedence of the various documents contained will help to set
hierarchy of importance while reviewing contracts when contradictions arise between them.
The documents which are brought together form the evidence of a contract legally agreed
by the parties and therefore signed, are as such termed contract documents (A.A.Kwakye, 1996).
For the inspection of the project and over all contractual matters the resident engineer or
consultants representatives should obtain a complete of all contract documents, in clouding all
contract drawings, standard drawings, specifications reference specifications, standards or test
requirements cited (Fisk, 1994).
The medium or language of communication between parities to the contract should be
acceptably stated in the general provisions and duly followed throughout the execution of
contract. Local and international laws that have a direct and indirect effect on the contract should
also be taken in to note, and exceptions should not be ignored.
The complex nature of construction dictates a form of a contract that is relatively
lengthily in order to describe precisely the legal, financial and technical provision. Construction
contracts involving public or government bodies are regulated by statutes as to content and
procedure (Clough, Ricardo H., 1975).
In general, parties to a contract in construction as in any other industry prefer contract
documents due to its arrangement, form and content. So standardization of contract documents
has done much to eliminate areas of disagreement among owners, consultants and contractors.
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2.11 Construction Claim
A construction claim is a demand for payment of additional compensation, adjustment of
the parties‘ respective contractual obligations, or any other change with regard to the contractual
conditions or terms. (Wubeshet, 2006).
Claims should be in availed if;

Timely notice was not given

The claim is late

Contract procedures not followed

Proper records were not kept
There are many reasons for claims to arise on a construction project. Deviation from
performance requirements among contractual stake holders whether it is related to completion
time, or construction cost, or the fulfillment of its quality and its intended purpose, or safety,
health and environmental consequences can trigger claims in construction contracts. In addition
unforeseen political, economic, social and technological uncertainties can also be the major
factors causing claims.
Variations:- are a fact of life in the construction industry and give rise to many
problems.
-
Increased or decrease of the quantities of work included in the contract
-
Omissions
-
Changes in the characters, quality or kind of the work
-
Changes in the level, positions, and dimensions of any part of the work.
All the standard form of contracts contains variations clauses because, without an express
power to direct departure from the original contract work, the employers have no power to order
it.
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Error, omissions and changes: - An incomplete, inaccurate or poorly coordinated design
inevitably will produce a project with conflicts and unanticipated cost and delay. An accurate
and complete design will help in minimizing the risk of misunderstanding and litigation, and
provides more protection for the owner.
2.12 Construction disputes
Construction disputes as a conflict of an incompatible interest of which both parties are
conscious and which involves disagreements, argument over issues capable of resolution by
themselves or a third party intervention disputes in construction are inevitable and rang from
minor differences over the meaning of contract clause to major differences that lead to
termination of the project. These disputes can be addressed only when we understand the root
causes of disputes.
CIS (1994) states the following main reasons for disputes that can be raised due to:
Consultants
- Design errors
- Design in adequacies
- Delay in settling claims
- Late and or incomplete information
- Lack of coordination of information for different sources.
- Ambiguous specifications
- Variations and late confirmation of variations.
- Inexperience
Client
- Unrealistic expectations with poor briefing
- Changes of mind during construction
- Poor financial arrangements leading to late payments
- Ridged budget
- Interference by client in contractual duties of the contract administrator.
Contractor
- In adequate site management
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- Poor programming
- Poor workmanship
- Disputes with sub-contractors /suppliers
- Late payment of sub contracts /suppliers
Sub-contractors
- Terms of sub contract and or miss-match with main contract
- Inability to substantiate costs at the appropriate time.
- Failure to follow conditions contract.
Suppliers
- Failure to define performance or purpose
- Failure of performance
In general, the major causes of disputes arise from areas such as uncertainties during the
design phase, poor contract document, inappropriate contract type, failure to adhere to the
contract and inefficiencies of stake holders.
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Chapter Three
3. Research Methodology
Research is the systematic method consisting of enunciating the problem, formulating a
hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions
either in the form of solutions towards the concerned problem or in certain generalizations for
some theoretical formulation (Kothari 2004). Therefore research methodology is a way which
brings all the research processes together and leads the researcher to accomplish the
objectives of the study.
The objectives of this study are to assess the challenges of major contract types and
delivery system for public projects at Addis Ababa. A questionnaire survey was formulated to
discover the opinions from concerning bodies. Here our target groups are grade one Building
Contractors and Consultant firms in Addis Ababa.
We choose the Grade one Contractors and consultants because of their exposure of
experiencing different kinds of delivery methods and contract types in a number of projects since
they reach to this level. This helps us to get a more reliable data.
3.1 Research approach
The design of any study begins by defining the research methodology. Generally there
are two research approaches, which are widely recognized as quantitative research and
qualitative research. From the two approaches we choose the quantitative approach, which is a
method used to identify problems, based on measuring with numbers, and analyzed using tables,
charts and figures. From the quantitative methods the one we choose is a survey study.
A survey research methodology as applied to the positivistic research paradigm will be
adopted for the study. Primary data will be collected by distributing formulated questionnaires to
randomly selected contractors and consultants.
3.2 Sample Size
The required sample size for the research for each parties involved in the survey was
determined statistically using the following expression (Kish, 1965 cited in Tadesse Ayalew,
2009).
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
no=pxq/v2 ………………….. [Eq. 3.1]

n= no / [1+( no /N)]………………. [Eq. 3.2]

Where:

no: First estimate of sample size

P : The proportion of the characteristic being measured in the target population

q: Complement of p or 1-p

v: The maximum standard error allowed

N : The population size

n: The sample size
To maximize, p was set at 0.5.To account for possible error in the respondent answers
from the questionnaire, the maximum standard error was set at 10% or 0.1.
The target
populations were Grade One Building contractors in Addis Ababa which are 73 and Consultants
in Addis Ababa that are 80(Construction Proxy website, 2017).We will use those numbers as our
populations for the above formula.
Then by inserting those population sizes to the above formula, we get our sample size to
be 19 for both.
Stakeholders class
Target population to address
Consultant
19
Contractor
19
3.3 Steps of conducting this research
1. Literatures are reviewed
Literature is reviewed and variables are identified. On the process of literature review we
assessed the back ground of contract , delivery methods, types of contract, contract document
,construction claims and disputes.
2. Design of questionnaires
Questionnaires are designed in a way to achieve the research questions, that are, What are
the major causes that lead to dispute between contracting parties in Ethiopian construction
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industry, What dispute resolution methods were adopted, What problems are faced when the
parties settle dispute and Which methods are suggested to settle dispute in a better way in the
Ethiopian Construction industry? Copies of these questionnaires will be attached in the appendix
part of the thesis.
3. Distribution of questionnaires
The data will be collected by distributing a formulated questionnaire to those randomly
selected nineteen contractors and nineteen consultants.
4. Analyze the responses from questionnaires
The questionnaires were designed to anticipate the research questions stated above. After
the distributed questionnaires were collected, the analysis was started which is carried out based
on the responses of the participants.
5. Conclusion and Recommendation from research
After the analysis made, Conclusion is produced from the bases of the analysis and
Recommendation to the use of dispute resolution methods from others successful practices are
suggested.
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Chapter Four
4. Analysis and Discussion
4.1 Analysis
4.1.1 Profile of the questionnaires
As discussed in the methodology part of this thesis, the first approach to asses is
problem, challenges in implementing construction contract types and delivery methods to public
building projects is the use of questionnaires to gather the opinion of the parties in the
construction sector.
The questionnaires were designed to collect data regarding the experience of construction
firms with respect to the problems and challenges in implementing different types of
construction contract to building projects.
The questionnaires were grouped in to two major sections. The two sections and their
area of assessment are the following;
Section one is related to the profile of the construction firms and their experience in using
different kinds of construction project delivery system.
Section two is related to the stakeholders experience towards different construction
contract types. It also tries to assess suitable construction contract type regarding to quality, cost,
time and risk allocation between contracting parties.
4.1.2 The respondents
A total of twenty eight responses were received from thirty eight respondents. It has a
response rate of 73.7% (as shown in the table given below). The respondents were contractors
and consultants. This is done deliberately to obtain direct and related answers for the
questionnaires. The questionnaires were forwarded for professionals that work on the
construction industry as a contractor and consultant to give their opinion.
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The replies from the respondents have been analyzed and the analyses are shown in table
formats and bar charts. All the opinions and questionnaires are included for analysis.
Table 4.1 Rate of Response
Sample
Contractors
Distributed
questionnaires
19
Consultants
Collected
questionnaires
14
19
Rate of Retune (%)
73.74
14
73.74
4.1.3 Challenges and problems in selecting suitable project delivery system.
The main aim of selecting suitable project delivery system is to minimize disputes which
are caused by different dispute initiating factors.
From the response obtained, this thesis organizes causes of disputes in two parts.
Disputes due to delivery systems
Disputes during the execution of the work
Disputes due to delivery systems
In the questionnaire;
Four types of delivery systems were presented for the respondents.
The purpose was to know what delivery system they were experienced for those
projects they were involved and to rate the tendency of delivery systems to arise a
disputers.
Table 4.2 Project delivery system experienced by stake holders
Project delivery method
Frequently
Sometime
Not at
all
DBB
62.5%
37.5%
-
DB
50%
50%
-
CM
18.75%
43.75%
31.25%
Force account
15.38%
38.46%
46.15%
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Figure 4.1- Project delivery system experienced by stake holders
The above table indicates that most of the respondents were experienced with designbid- build delivery system and some of them are experienced with design and build delivery
system.
This indicates that the most experienced delivery systems by Grade one Contractors and
consultants which are found in Addis Ababa are design -bid –building and design-build
respectively.
Table 4.3 Tendency of delivery system to arise dispute
Delivery Method
Force account
DBB
Very high
-
High
12.5%
75%
DB
-
CM
-
Low
25%
12.5%
-
Very low
12.5%
none
62.5%
- 12.5%
-
62.5%
25%
-
25%
75%
-
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Figure 4.2 - Tendency of delivery system to arise dispute
From the above table the majority of the respondents indicated that
 DBB delivers system has a higher tendency to arise a dispute between parties in
construction project.
 DB delivery system has low tendency to arise a dispute.
 Force account delivers system has almost no tendency to arise a dispute.
 CM delivery system has very low tendency to arise a dispute.
Dispute during the execution of the work
Disputes on – site or disputes during the execution of the work includes causes because
of uncertainties during the design phase, during tender preparation, site possessions, due to poor
contract documents, lack of communication and late payment. They cause time overrun, cost
overrun and unhealthy relation between contracting parties.
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4.1.4 The stake holders experience towards highest performing construction project
delivery method.
This is to identify how often the stake holders different project delivery methods in terms
of time, cost and quality.
Majority of the respondents were selected design- build project delivery methods as the
highest performing project delivery method and they weighed by three parameters (Time, cost &
quality.)
 Design build project delivery method is faster since early involvement of
construction profession also in the design process.
 Design build project delivery method has better cost control because it allows a
single source of responsibility.
 Design build project delivery method has better Quality performance because the
owners ranked each factors on how well the project delivered on their expectations
(equipment selection and others).
4.1.5 How often stake holders use different alternative construction contract types?
This is to identify that the stake holders experience is use of different construction
contract types to minimize contractual problems and challenges during implementation.
Table 4.4 How often stake holders use different alternative construction contract types
Type of construction contract
Frequently
Some time
Not at all
Lump sum
38.5%
61.5%
-
Unit price
76.9%
23.1%
-
Cost plus percentage fee
-
23%
76.9%
Cost plus fixed fee
-
26.67%
73.33%
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Figure 4.3 – Experience of stake holders use different alternative construction contract types
As can be seen from the above table, majority of the respondents used unit price contract
frequently whereas lump sum contract some time.
As indicated the above table most of the respondents not used cost plus contract and
some of the respondents used sometimes. The reasons could be due to the fact that cost overruns
and cloth investigation of material purchase.
4.1.6 Merits and demerits of using different construction contract types.
Here the respondents were presented with different construction contract types together
with the methods of selection to implement on public building projects. The factors used in
rating these contract types based on time, cost, and quality and risk management.
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Table 4.5 In terms of time
Contract type
Very fast
Fast
Time taken
Lump sum
33.33%
58.33%
8.33%
Unit price
-
41.66%
58.33%
Cost plus fixed fee
58.33%
41.66%
Cost plus percentage fee
66.66%
33.33%
30.76%
38.46%
Labor
30.76%
Figure 4.4 – Efficiency In terms of Time
As indicated on the above table, most of the respondents choose the cost plus percentage
fee contract for very fast track construction projects.
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Table 4.6 In terms of cost overrun
Contract type
Very high
High
Lump sum
10%
30%
-
60%
Unit price
15.38%
53.84%
-
30.76%
Cost plus fixed fee
45.45%
36.36%
-
18.18%
Cost plus percentage fee
60%
40%
-
-
-
-
Lab our
-
Very low
-
Low
Figure 4.5 – In terms of cost overrun
As can be seen on above table 60% of the respondents choose lump sum contract to carry
out project within low cost and 60% of the respondent denied cost plus percentage fee due to its
requirement of very high cost, this is the reason due to escalation in contraction cost and
inefficient use of resources.
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Table 4.7 In terms of quality management
Contract type
Very
satisfactory
Lump sum
21.4%
Unit price
66.66%
Cost plus fixed
-
Satisfactory
Fair
enough
Dissatis
fy factors
20%
64.28%
33.33%
50%
14.28%
30%
40%
40%
20%
53.84%
15.38%
-
fee
Cost
percentage fee
labor
plus
30.76 %
Figure 4.6 - In terms of quality management
From the table and chart shown above, interims of quality management 66.66% of the
respondents were very satisfied by unit price contract and 64.28% of the respondents choose
lump sum contract at satisfactory level.
20% of the respondents‘ shifts to wards at
dissatisfactory level with in cost plus fixed fee and cost plus percentage fee contract.
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In terms of risk management
On the table given below, different construction contract alternatives were presented to
respondents in the questionnaires to choose which construction contract types were highly
manage (amend ) risk which is caused by design errors, different site conditions (changes and
variations) and material price escalation.
Table 4.8 In terms of risk management
Contract
type
Very
High
high
Very
low
low
Lump sum
-
30.76%
23.07%
46.15%
Unit price
69.24%.
30.76%
-
-
50%
30%
-
20%
Cost plus
50%
30%
-
20%
Labor
-
-
-
-
Cost plus fixed fee
Figure 4.7 - In terms of risk management
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The above table indicates that 69.24% of the respondents were choose unit price contract
as a very high risk management nature where as 46.15% the respondents chooses lump sum
contract as low risk management in nature.
4.2 Discussions
The research is carried out by analyzing the information‘s which were gathered through
questionnaires. As we indicated in analysis part the questionnaires were distributed to contractors
& consultants who are involved in building construction projects. We have distributed thirty
eight questionnaires nineteen to consultants and nineteen to contractors. But we have collected
only twenty eight questionnaire papers that are fourteen from consultant and fourteen from
contractor.
However we have made our analysis using the collected data. The information we
gathered through questionnaires to contractors and consultants are briefly discussed below.
4.2.1 How do implement project delivery systems in public building projects?
One of the problem in implementing project delivery systems in public building projects
are the occurrence of disputes, which were caused by improper selection of delivery system for
particular type of building projects. From the sample we observed that majority of the
contractors and consultants had using the design- bid -build and design- build project delivery
system. But 75% of the respondents indicated that
DBB project delivery system is high tendency to arise deputes. This is the reason why the
contractor generally selected through the bid process and it has great tendency to unbalanced
tender.
As the result the cost of construction may exceed owner‘s budget and hence requires
owner to either redesign or abandon the project. And the designer and builder can same time
antagonists when the builder is unable to understand or even unable to build what has been
understand or even unable to build what has been designed. 62.5% of the respondents were
indicated that DB project delivery system had low tendency arise dispute as its single point of
responsibility. In this type of delivery system the owner enters in to a contract with a single
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entity that will assume the obligation of furnishing design, supervision and construction service
during the project.
Also majority of the respondents were chosen DB project delivery methods in terms of
time, cost and quality control. In DB delivery system.
 The contractor self-performing the work to assure quality as owners expectations
 The time is saved (over lapping of the design phase and construction phase) where
the builder begins working on each phase of the construction as soon as the design
for that phase is complete. Since it is not necessary to prepare drawings in great
detail because the builder already understands what needs to be done.
 When compared with cost overrun DB has the lowest Cost overrun than DBB.
4.2.2. The stake holders experience towards construction contract type
According to the result of table 4.4, majority of the respondents use unit price contract
frequently and few of them use lump sum contract sometime. For the analysis we understand that
unit price contract experienced with many contractors consultants and owners. 69.23% of the
respondents were chosen the unit price contract as very good in risk management. By its nature
construction industry is not free from uncertainties in such circumstances the unit price contract
highly manage such problems, meaning the total quantity of the work measured in the field may
somewhat vary from the quantities measured from the design or drawings.
61.5% of the respondents use lump sum contract some time. This is due to its weakness
in administering variations and change orders.
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4.2.3 What are challenges and problems in implementing different construction contract
types to public building projects?
As indicated on analysis part
cost plus percentage fee contract.
 66.66% the respondent‘s chosen as cost plus percentage fee contract for the fasttruck projects especially for urgent projects like construction of military camps.
 The majority the respondents said that cost-plus percentage fee contract is a very
high cost overrun by nature. A contractor may increase total cost of the project to
get apple profit.
 In quality control the respondents shifted at satisfactory level. This due to work is
executed in the interest of the owner.
 In risk management, it is better than lump sum contract. 50% of the respondents
chosen this contract type next to unit price; this is because of changes and variations
can be accommodated amicably.
Lump sum contract
 58.33% of the respondent‘s chosen as this contract as fast project implementing
contract next to cost plus contracts. Since the time taken for preparation of tender
document minimized and it is greatly applicable for previously known projects.
 In terms of quilts management 64.28% of the respondents were at satisfactory level.
 In terms of tendency of cost over run; 60% of the respondents chosen as low
tendency to cost overrun for owners because the project tender price is determined
and quoted as total such of money with individual rating.
 Changes and variations are the major causes of risk in public building projects.
From the total respondents 46.15% said lump sum contract has incapable of
administers risk.
Unit price contract
 It is not applicable for very fast truck projects. 58.33% of the respondents said
unit price contract time taken contract to implement, since the project or tender
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price is determined and quoted from units assigned to detail of quantities and
preparation of tender document lengthen the time.
 Effective control of quality is one criteria in selecting suitable contract type.
66.66% of the respondent‘s shifted to very satisfactory level in quality
management with in this type of contract. The supervision is carried out based on
detail drawings and design.
 53.84% of the respondents chosen unit price contract as high tendency to initiate
cost overrun due to uncertainties (change orders and variations) and unbalanced
tender).
 In construction industry uncertainties are the major causes of risk. 69.23% of the
respondent‘s chosen unit price contract a very high effective risk management
changes and variations are easily administered because actual and assigned
quantities can be compared.
Labor contract
 This contract type is not much experienced by consultant‘s contractors and
owners. But currently the housing agencies widely practice this type of contract.
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Chapter Five
5. Conclusions and recommendation
5.1 Conclusions
This thesis shows that why do we need construction contract types and how we can
implement them to public building projects. Time cost quality risk and size of project are the
main parameters which affect the selection of contract types and delivery methods for particular
construction project. To make smooth relationship and complete the project as per the
requirement, it is necessary to assess the nature of construction contracts and delivery methods.
There is much away in which one can avoid problems and challenges in implementation.
Thus the other issue would be ―how to minimize‖. A dispute should be resolved in such a
manner that it should not take higher cost and longer time with a win-win solution for the parties
under the dispute.
Finally, the finding result compared with the stake holders experience towards delivery
methods and construction contract types. The result indicates that;

From our Findings most of the respondents were experienced with design- bid- build
delivery system which is the traditional one and the most known system both in public
and private projects. Some of them are experienced with design and build delivery system
and other types which are rare.

Majority of the respondents responded that from their experience; DBB delivery system
has a higher tendency to arise dispute between parties in construction project and
relatively the design build and contract management methods have lower tendency for
arise of disputes.

The finding of the research showed that design- build project delivery methods as the
highest performing project delivery method for public projects by weighing the three
parameters (Time, cost & quality).

Most of the stakeholders choose cost plus contracts which are reparable for fast truck
projects but it highly increases the cost of construction.
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
Majority of the respondents choose Lump sum contract as its low tendency of cost
overrun though it is difficult to administer changes and variations properly.

The finding of the research show us majority of the respondents use Unit price contract
for its use to highly manage changes and variations. Besides it is highly preferable for
effective quality control because the supervision executed based on detail drawings but it
has a tendency to increase cost due to unbalanced tender and changes and variations.
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5.2 Recommendations
The purpose of the following recommendation is not to deeply address areas that cause
problem in implementing contract type. The intention is only to point out some major issues that
need consideration industry can learn from issues that affects the implementation of construction
contract types public building projects. Both the analysis of the questionnaires has identified
time, cost, quality and risk are the major causes of problem in implementing different
construction contract types to public building projects. Hence the following recommendations
are focused to wards in implementing construction contracts.
Based
on
the
findings
of
the
research,
the
following
suggestions
and
recommendations are made.
For Government (Client of the public projects)

To start using other types of delivery systems like design build which we assessed
as a highest performance with strong supervision other than the design bid build
which is making more problems.

To be flexible in using different Contract types based on the main objectives of
projects. That is if urgency is needed to use cost plus fixed and or percentage
contract, if the projects are small to use lump sum contract, and for better quality
and to better manage risks using Unit price contract.

To know the size and nature of the project and financial capacity prior to selecting
contract type.

To have sufficient knowledge about different contract types and delivery methods
with their respective advantage and disadvantage.
For Contractors

To work public projects with great emphasis as per the requirements based on
type of contract and delivery systems that the government needs. Since it is their
social responsibility.
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
To deliver qualified work on a timely basis since most public projects are used by
many people that needs the quality and fundamental or basic that needs urgency.
For Consultants

To represent the client of the public project as its own based on their contractual
agreement plus as one part of the public.

To design and supervise public projects with great emphasis as per the
requirements based on type of contract and delivery systems that the government
needs. Since it is their social responsibility.

To select the proper contract type and delivery system that better controls quality,
timely completion and risk management aspects that are basic for public projects.

The design process has to be given adequate time and more investigation has to be
made during design reviews.
Generally stake holder should thoroughly identify the characteristics of construction
contracts and nature and site of the construction project and selects which contract type is
suitable for what type of construction project.
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Reference
1. A.A. kwakye (1997), Construction Project Administration, March 1997 Longman,
Abingdon
2. Civil code of Ethiopia (1960), Article 1678, Addis Ababa, Ethiopia
3. Civil code of Ethiopia(1960), Article 1704,Addis Ababa, Ethiopia
4. Civil code of Ethiopia(1960), Article 1705 Sub Article 2, Addis Ababa, Ethiopia
5. Construction
Proxy(2017),Grade
One
Contractors,
assessed
by
April
29
2019,http://constructionproxy.com/grade-1-contractors-in-ethiopia
6. Construction Proxy(2015),Ethiopian Construction Consultants, Assessed by April 30
2019,http://constructionproxy.com/catalog/Ethiopian-consultants
7. Ethiopian Central Statistics Agency (2007), Compilation of Economic Statistics
Report, Ethiopia
8. Fisk R Edward (1994), Construction Project Administration, 6th edition, Boston prentice,
Boston
9. Getaneh Gezaheny(2008), Comparison of MOWUD /1994/ Vs PPA/2006/Condition of
Contract under Public Building Projects, MSc Thesis Addis Ababa University, July 2008
,Addis Ababa, Ethiopia
10. John William Salmond (sir) & Percy H. Winfield (1927), Principles of Law of Contracts,
Sweet and Maxwell, January 1927, London
11. Kothari C.R. (2004), Research Methodology, Methods and Techniques, Second revised
edition, New age international Limited publishers, pp.1-3 Japan
12. Richard H. Clough(1975), Construction Contracting, 3rd edition, John Wiley & Sons Inc,
June 1975,New York
13. Richard H Clough(2008), Construction Project Management, Hoboken NJ J. Wiley and
sons, New Jersey
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
14. Tadesse Ayalew (2009), MSc Thesis, Causes and Effects of Variations in Ethiopian
Federal Road Projects, Addis Ababa University, July 2009, Addis Ababa, Ethiopia
15. The Ministry of Works and Urban Development (December 2004), General
Conditions of Contract for Construction of Civil Work Projects, Addis Ababa, Ethiopia
16. Wikipedia
(1990),Project
Delivery
System,
Assessed
on
13
may
2019,
http://en.m.wikipedia.org/wiki/project_delivery_method
17. Wikipedia
(2006),Project
Management,
assessed
on
15
may
2019,
http://en.wixip.edia.org/wiki/project_management
18. Wubishet Jekale Dr. Ing.(2006), Lecture Note, Procurement and Contract Management
Addis Ababa University, Addis Ababa
19. Wubishet Jekale Mengesha (2006), Performance for Public Construction Projects in
Developing Countries, Federal Road and Educational Building Projects in Ethiopia,
2004, Norwegian University of Science & Technology, Norway
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APPENDIX – A /Questionnaires to contractor and consultant/
Dear sir or madam ------We are graduating class student of the department of construction technology and
management currently working on graduation thesis on topic , ― Types of construction contracts,
challenges and problems in implementation to public building project.‖ Construction is
contracting business by which different form of contacts, condition of contracts, delivery systems
are used, to construct specific projects. The selection of suitable type of contraction contract for
particular type of construction project is important point to minimize the occurrence of disputes.
Hence these questionnaires are designed to investigate the problem and challenges faced in use
of different types of construction contracts to public building projects.
The information you provide will help to better understand these aspects and enhance
smooth relationship and minimize dispute among contracting stake holders.
Hence, we kindly request you to respond to the questions frankly and honestly.
Your response will be kept strictly confidential. . It will be used for educational purpose only.
Thank you very much for your time and cooperation greatly appreciate your help in
furthering this research endeavor and your timely response.
Yours faithful,
Department of Construction Technology and Management (BSC)
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Name of respondent___________________________________
Date__________________________ profession______________________
Name of company /organization______________________________
Title or position of respondent_______________________________
1. After you are establishing your company in what type of construction projects mostly you
have involved?
□ Public
□ Private
□ Nongovernmental organization
□ Others,
please specify _________________________________________________
2. Mostly what type of project delivery system was used to these projects in which you were
involved? And rate them in rate of implementation.
Force
□frequently
account
□sometime
The design and build delivers system □frequently
The design – bid – build
□not
□sometime
□frequently
all
□not at all
□sometime
The construction management □frequently □sometime
at
□not at all
□not at all
3. From your experience rate the tendency of project delivery system to arise
dispute?
Force account
□ very high
The design and build □ very high
The design –bid- build □ very high
□ high
□ high
□ very low
□ very low
□ high
□ low
□ very low
The construction management build □ very high
□ high
□ low
□none
□none
□ low
□none
□ very low
□ low □none
Why?________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
4. From your experience which project delivery system were the highest performing project
delivery system (in terms of time, quality and cost)
□ Force account
□ Design and build
□ The design –bid- build
□ The construction management.
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Why?______________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________.
5. Usually what were the causes of the dispute to those projects in which you were involved?
Please prioritize them by giving number.
□improper contract type
□price escalation
□improper project delivery system
□change order and variation
□ all
6. Do you think construction contract important?
□ Yes
□ No
7. If your answer is yes for question number 6 Why we contract?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_____________________.
8. Do you know all construction contract types?
□ Yes
□No
9. In your company how often do you use construction contract type? Rate them in rate of
implementation.
Lump sum □frequently □sometime
□not at all
Unit price □frequently □sometime
□not at all
Cost plus fixed fee contract
Cost plus percentage fee
□frequently
□frequently
Labor contract □frequently □sometime
□sometime
□sometime
□not at all
□not at all
□not at all
If any other ____________________________________________________________
________________________________________________________________________
___________________________________________
10. What made it preferable than others?
□ Economic point of view
□ Quality
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□ Mode of payment
□ Contract administration
11. Do you recommend lamp sum contract for small projects?
□ Yes
□ No
WHY (Reason for your answer?)
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.
12. Do you administer changes and amendments in lump sum contract?
□ Yes
□ No
WHY? (Reason for your answer?)
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.
13. Among contracting parties to whom lump sum contract allocates risk?
□ Contractor
□ Owner
14. What type of contract do you use for previously known similar types of project?
□ Unit price
□ Cost plus percentage fee contract
□ Lump sum
□ Cost plus fixed fee contract
Why?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
.
15. From your experience how do you describe the merits of the following contract types?
A. In terms of time
Unit price □ very fast
□ fast
□ time taken
Lump sum □ very fast
□ fast
□ time taken
Cost plus percentage fee contract
□ very fast
Department of Construction Technology and Management (BSC)
□ fast
□ time taken
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Cost plus fixed fee contract
Labor contract
□ very fast
□ very fast
□ fast
□ fast
□ time taken
□ time taken
B. In terms of cost over run
Unit price □ very high
□ high
□ very low
□ low
Lump sum □ very high
□ high
□ very low
□ low
Cost plus percentage fee contract
Cost plus fixed fee contract
Labor contract
□ very high
□ high
□ very high
□ high
□ high
□ very low
□ very high
□ very low
□ very low
□ low
□ low
□ low
C. In terms of quality control
Unit price □very satisfactory □satisfactory □fair
□dissatisfactory
Lump sum □very satisfactory □satisfactory □fair
Cost plus percentage fee contract
y
□dissatisfactory
□very satisfactory
□satisfactory
□fair
□dissatisfactory
Cost plus fixed fee contract
□very satisfactory □satisfactory □fair
□dissatisfactory
Labor contract
□very satisfactory □satisfactory □fair
□dissatisfactory
D. In terms of risk management
Unit price
□ very high
□ high
□ very low
□ low
Lump sum
□ very high
□ high
□ very low
□ low
Cost plus percentage fee contract
Cost plus fixed fee contract
Labor contract
□ very high
□ very high
□ very high
□ high
□ high
□ high
□ very low
□ very low
□ very low
□ low
□ low
□ low
16. You know that in unit price contract type the payment made based on actual work executed...
This is advantageous for
□ Contractor
□Employer
□ Both
17. If your answer for question number 24 contractor
or employer or both contractor
and employer . How?
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________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
18.
What
are
the
weakness
of
unit
price
contract
over
lump
sum
contract?
______________________________________________________________________________
______________________________________________________________________________
________________________________________________________________________
______________________________________________________________________________
.
19. How do you choose construction contract type?
□ Size of project
□ Quality
□ Cost
□ All
□ Time
20. If your answer all what are their impacts in selection of contract types?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.
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Interview questionnaires
1. Mostly in our country design –bide-build project delivery system are used in both public and
private construction projects, why?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________.
2. What do you recommend for successful completion of the project besides selection of suitable
contract type?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________.
3. Unexpectedly the cost of project higher than the estimate at the end in case of lump sum
contract. What would happen in those projects? How can we administer it?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________.
4. Why most public building projects in our country use unit price and lump sum contract?
________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________.
THANK YOU FOR YOUR TIME!
Department of Construction Technology and Management (BSC)
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
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APPENDIX – B /Research proposal/
CHAPTER ONE
Introduction
1.1 General Background
Construction industry involves procurement and contract system in order to insure fair
competition and distribution of obligation and right among contractual stake holders.
Construction projects are components of certain business development and demands
acknowledge their contribution and it is most the basic or strategy planning phase tool used to
implement construction projects according to contract planning. The contract planning includes
procurement method and contract types. There for, by exploring the practical and identifying the
process we hope that we will enhance the selection of suitable contract types as prior for
sustainable construction project. In this we believe that we will clearly show suitable and
sustainable contract types for public building projects and examine away to improve particular
contract type requirement.
1.2 Statement of the Problem
Cost, quality, time and healthy business relationships are the necessary issues in selecting
suitable contract types for public building projects. However the fact is different due to which the
occurrence of disputes as the result of variations and lack of coordination but also how to select
suitable contract type and delivery mechanisms to avoid contractual problem .If so how can we
minimize this impact without jeopardizing the objectives of the contracting parties. Since the
goal of every construction project stake holders is the completion of project that meets the
objective of time cost, and quality together with continuity business relationships.
1.3 Objectives of the Study
1.3.1 General Objective
 The objective of this paper is to identify the problems and challenges of different contract
types and delivery system in implementing to public building projects.
1.3.2 Specific Objectives
 To select suitable delivery systems for public Building projects
 To evaluate delivery system which are suitable for Ethiopian construction industry
 To suggest probable solutions for the problems identified
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
 To enhance relations ship among contractual stake holders by selecting suitable contract
types.
1.4 Research questions
 What are challenges and problems in different construction contract types?
 What factors makes the construction contract to have challenges and problems?
 What contract types to be adopted public building project?
 What are the merit and demerit of different contract types on public building projects?
1.5 Significance of the study
This research is very important to minimize disputes, cost overrun, delay and poor
quality projects. It also helps to maximize work productivity by implementing suitable
contract type and delivery system.
1.6 Scope of the study
The research focuses on public projects. Regarding its area it is bounded to Addis
Ababa city Grade one building contractors and consultants. Besides the thesis describes the
two major types of delivery system; design-bid-build and design-build.
Department of Construction Technology and Management (BSC)
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
CHAPTER TWO
2.1 RESEARCH METHODOLOGY
 Research proposal is prepared and submitted
 Literature review is collected and compiled
 Sample identification
 Questionnaires‘ are prepared and distributed to the concerned bodies
 Observation and interviews are done
 Data organization are done (by using tables and graphs)
 Responses and observations are analyzed and interpreted
 Conclusion and recommendation are produced
Topic
proposal
literature review
sample identification
data collection and organization
interpretation
conclusion and recommendation
research instrument
analysis and
final thesis writing
2.2 Description of the study area
The study focuses on Addis Ababa Grade one Building companies.
2.3 Data source, sampling, collection and analysis
2.3.1 Types of data used for the study
 Both quantitative and qualitative data
2.3.2 Source of data
 Data will be gathered from questioners, interviews and site visit.
Questioner: contains closed and open type questions and distributed for
contractors, consultant and owners.
Site visit: by face to face visit of the site.
2.3.3 Data sampling method
 Random data sampling method
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
2.3.4 Sample size
The required sample size for the research for each parties involved in the survey was
determined statistically using the following expression (Kish, 1965 cited in Tadesse Ayalew,
2009).
• no=pxq/v2 ………………….. [Eq. 3.1]
• n= no / [1+( no /N)]………………. [Eq. 3.2]
Where:
▪ no: First estimate of sample size
▪ p : The proportion of the characteristic being measured in the target population(usually
▪ q: Complement of p or 1-p
▪ v: The maximum standard error allowed(0.1 for our case)
▪ N : The population size
▪ n: The sample size
Stakeholders class
Target population to
address
Consultant
19
Contractor
18
The population size is determined by finding out the total number of grade one building
contractors in Addis Ababa which are 73 and total number of consultant firms which are 75.
2.3.5 Data collection procedures
We use highly qualitative and a little bit of quantitative data collection methods such as: Using different literatures, internet searching‘s and referring different kinds of books
 Using observations on the contract documents
 Using interviews with concerned professionals
 using questionnaire forms containing important questions that help to gather necessary
information
Using a simple random sample of sampling technique
2.3.6 Data Analysis
 Data will be analyzed quantitavely
Department of Construction Technology and Management (BSC)
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
CHAPTER THREE
STRUCTURE OF THE THESIS
This research paper covered the following structure: Cover page
 Acknowledgement
 Abstract
 Table of content
 Chapter.1 – Introduction
The introduction part covers the background, statement of the research problem,
research objectives and questions, justification of the research problem, scope and limitation
of the study, and research methodology.
 Chapter .2-literature review
The second chapter will be literature review that develops concepts on the subject of
quality control mechanisms and standards in road construction projects. Agreements from
different authors regarding to the contract types and delivery systems which are applicable
for public building projects.
 Chapter.3-Research Methodology
The methodology to be used for researching purpose is collection of data by
developing questionnaires.
Chapter.4-Research Analysis and Interpretations
Analysis part covers all information gathered from collected data, questionnaires and
interviews will be analyzed and interpreted.
 Chapter.5-Conclusion and Recommendation
This chapter discusses the conclusion of the research and subsequent recommendation
to the authority and researchers to further study on the project.
At the last, there is an Appendix.
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
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CHAPTER FOUR
Work plan
Table 3.2 work plan
Description of
April
May
June
Activities
1
Title
selection
2
3
4
1
2
3
4
1
and
proposal preparation
Organizing and review
literature
Drafting data gathering
tool
Data
collection
and
representing
Analyzing and
interpreting data
Organizing
and
producing first draft
Writing and producing
final report
Presentation( tentative)
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ASSESSMENT OF CONSTRUCTION CONTRACT TYPES AND DELIVERY SYSTEMS SUITABLE FOR PUBLIC
BUILDING PROJECTS IN ADDISABABA
CHAPTER FIVE
Budget Break Down
Table 3.3 Budget break down
no
Item
1
Printing paper
2
Note book
3
Unit
No ( packet)
Quantity
Unit price( birr)
Total price
200
0.50
100
Pcs
2
15
30
Flash disk (8GB)
Pcs
1
180
180
4
Rewriteable CD
Pcs
1
6
6
5
Marker
Pcs
5
20
100
6
Photo copy
No( page)
200
0.50
100
7
Printing
No( page)
200
1
200
8
Binding & laminating
3
15
45
9
Transport
20
30
600
10
Food and water
10
50
500
Pcs
Sub total
Department of Construction Technology and Management (BSC)
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