Development Of Financial Management Strategy For Public Building Construction Project In Oromia Construction Corporation, A Case Study of Selected Projects

Abstract

Construction projects in the Ethiopian context face significant financial management challenges, including limited financial resources, lack of qualified personnel, and insufficient project management practices. The literature on financial strategy development and management in construction project management within the Oromia Construction Corporation is limited, resulting in a significant gap in research on how to develop effective financial strategies for construction projects in the Oromia Construction Corporation. This gap is particularly consequential, as financial strategies are essential for ensuring the financial sustainability of construction projects. The objective of this study is to develop effective financial management strategy for public construction projects, specifically focusing on the Oromia Construction Corporation. The research design employs a qualitative approach, utilizing document analysis, semi-structured interviews, and a literature review to assess the current state of financial management practices and identify effective financial strategies. The study revealed that the Oromia Construction Corporation faces challenges such as dependency on government funding, cost overruns, inaccurate risk assessment, and ineffective project management. Based on the findings, this study developed several effective financial strategies for the Oromia Construction Corporation, including establishing budgeting and forecasting processes, cultivating relationships with government stakeholders, ensuring compliance with regulations, enhancing transparency and accountability, investing in modern financial technologies, improving financial reporting capabilities, developing risk management procedures, and diversifying revenue streams. The significance of these findings lies in their ability to inform policymakers, project managers, and stakeholders about key areas that require attention and improvement in the financial planning and management of public building construction projects, ultimately benefiting the communities they serve.