A Relationship Model for Cause and Effect of Claim in Roads Construction Projects: A Case of Central Directorate of Ethiopian Roads Administration

Abstract

Road construction project is prone to claims due to complex nature of project, involvement of multiple stakeholders with competing interest, unforeseen ground condition, adverse weather condition, and technical challenges. Claims are inevitable in road construction and causeimpacts of cost overrun, time overrun, disputes and stranded relation between contracting parties. Thus; this study was conducted with objectives to identify significant causes and effects of claim; and to establish relationships between causes and effects of claim by considering thirty road projects under central directorate of Ethiopian Road Administrationas population of the study. Fifty causes of claim and sixteen effects of claim were identified for the study. The study was quantitative research of correlation explanatory type and the data were collected through close-ended questionnaire, and case study. Significant causes and effects of claims were determined using one sample t-test. To establish the relationships; the significant causes and effects of claim were correlated using Spearman?��?s correlation coefficient. Consequently; nineteen causes having t-value greater than 2.003 and twelve effects having t-value greater than 2.003 were identified as significant causes and significant effects in the study. Among the top significant causes; delay in granting possession of site, variation order, disruption of work, delay in work progress, and inflation had significant positive relationship (rs greater than 0.259) with ten to twelve other causes of claim. Besides; among top significant effects of claim, time overrun