Evaluation of Performance Efficiency and Effectiveness of Public Constructions Projects the Case of Shashemene City

Abstract

The construction industry is one of the most rapidly growing industries in the world. Construction projects provide many investment opportunities across various related sectors. In Ethiopia, the construction industry is the highest share of government budget in terms of government development program and plays important role in contributing to economic growth of the country and creation of employment opportunities. In Ethiopia construction project performance problems appears through different directions, instead of achieving their planned goals. The project success can be indicated by the project performance and project performance measured by efficiency and effectiveness.The structure of evaluating construction project performance efficiency and effectiveness was identified in this research. Therefore, the study was focused on evaluation of performance efficiency and effectiveness of public constructions projects the Shashemene city. The critical factor influencing efficiency and effectiveness of public constructions projects and the factor affecting performance of public construction project are identified and presented to the respondents to rank and score them. The ranking of the factors was done using relative importance index (RII). Questionnaire survey was containing a list of the thirteen (13) and twenty-eight (28) for the first and second objective respectively. the result of relative importance index (RII) of the critical factor influencing efficiency and effectiveness of public constructions projects are the positive impact of the project to the environment; RII=54.6% and the running of projects according to the schedule; RII=54.2% are the efficiency and effectiveness factor respectively. Whereas, Contractual Relationship factors, RII=78.3%, are factor affecting performance of public construction project.The current performance state of shashemene city public construction projects in terms of time and cost are identified based on respondent?��?s responses. Most of the public projects are facing the problem of cost overrun and time overrun with 78.8% and 84.8% respectively.Lastly, after critically reviewing and discussing the project success and performance, the conceptual framework f