TOASSESSTHECRITICALFACTORSTHATLEADSTOEARLY CONTRACTTERMINATIONOFPUBLICBUILDINGCONSTRUCTION IN SOUTHOMOZONE:ACASESTUDYOFHAMERWOREDA

Abstract

The construction industry plays a vital role in societal development, with public building projects serving as cornerstone elements of infrastructure. However, a pervasive issue within this sphere is the early termination of contracts, disrupting timelines, budgets, and project completion. These issues have significant challenges in public building construction projects such as hospital, schools, and administrative office buildings presents in Hamer Woreda, South Omo Zone. This study aims to assess the critical factors that contribute to such terminations, offering insights into the underlying issues and potential solutions. Drawing on a case study approach, this research investigates specific instances of early contract termination while analyzing the circumstances, causes, and consequences of these occurrences. Through a comprehensive examination of relevant factors such as contractual disputes, financial issues, delays, and quality concerns, the study identifies key drivers behind early terminations in public building construction projects. In this study qualitative and quantitative methods have been utilized including interviews, surveys, and data analysis. This research seeks to provide a nuanced understanding of the multifaceted nature of contract termination in this context. Moreover, the study explores potential strategies and interventions to mitigate the identified risk factors and enhance the likelihood of project success and completion. By synthesizing findings from both theoretical literature and empirical investigations, the research contributes to the existing body of knowledge on construction project management and provides actionable insights for policymakers, project managers, and other stakeholders involved in public building construction in the South Omo Zone. The primary factors affecting termination of contract in South Omo Zone mainly are lack of thorough knowledge on contract provisions by contract parties and lack of detailed and well defined contract provisions and financial procedures like time and amount of intermittent payment, liquidated damages and compensational details on late payment adopted. Rare existence of cooperation and proactive team work and least transparency on individuals’ status like capability in terms of finance, liquidity, strengths etcetera among contract parties. Improper risk allocation, contract sum and schedule of work estimation during contract bid preparation. The other factors identified in this study were postponement of dissensions, poor documentation, understanding the project strength and weakness as well as process of dissensions dalliance. Often, projects commence without comprehensive feasibility studies or realistic budget allocations also leading to financial constraints and delays. In conclusion, addressing the multifaceted challenges contributing to early contract termination in public building projects within the South Omo Zone demands a holistic approach encompassing development of effective plans to address key issues and lower early contract terminations through various improvements and implementing a comprehensive risk assessment to analyze how identified factors could affect the chances of contract termination, considering project-specific and external influences