Book section Open Access
TEWODROSE AYELE; Dr.Habtamu H.
In the road construction sector, several performance problems and target deviations of construction projects are observed. Properly measuring performance by integrating the necessary measures and methods can aid to identify the performance problems and take corrective action. This study was conducted to assess performance measurement practices in the road construction sector for the case of road projects in Addis Ababa. To achieve the objective, 17 contractor organizations, 12 consultant organization and 17 project sites were used as a sample for the study. A questionnaire survey was conducted on the sampled sites. The responses obtained regarding performance measures and methods were analyzed using average percentage. The relative importance index method (RII) was also applied to determine the factors which affect performance. The critical important measures to be considered in the road construction to enhance performance were revealed to be, technology adaptability (85%), effectiveness of material management (80%), designer and supervisor performances (73%). Similarly, the traditional financial accounting (98%) and balanced score card (68%) were found to be the highest implemented performance measurement methods. From the consultant side the three top critical performance factors were found to be, design change (RII=0.62), absence of regular site inspection (RII=0.55) and lack of effective communication system (RII=0.54). From the client side, inadequate site investigation (RII = 0.7), poor material management (RII = 0.6) and poor cost management (RII = 0.6) were shown to be the utmost performance factors. Likewise, from the contractors side, cost management problem and low productivity (RII=0.52), inadequate site investigation and design change (RII = 0.5) were found to be the highest performance factors. A balanced consideration of these critical performance factors from the parties could thus aid to reduce performance problems within the road construction. During performance measurement, setting performance measures could facilitate project success and stakeholders respective organization effectiveness. Therefore, it is strongly recommended that stakeholders should measure Performance by considering performance factors, setting performance measures, and rely on a comprehensive performance measurement method.