Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects

Abstract

Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.