A COMPARATIVE ANALYSIS OF PERFORMANCE OF DOMESTIC AND FOREIGN CONTRACTORS THE CASE OF ETHIOPIAN FEDERAL ROAD CONSTRUCTION PROJECTS

Abstract

In Ethiopia, infrastructure, particularly road construction, has been the most essential driver of economic growth. Simultaneously, it is widely acknowledged and analyzed that the domestic road construction industry is inefficient, threatening its role as a driver of the country's economic growth. Thus, the objective of the study was to make comparative analysis of domestic and foreign contractors’ performance in Ethiopian road construction in terms of cost, time, and quality. To meet the objective of the study a document review, semi-structured interview, and focused group discussion were used as a data collection tool. Based on analysis, the finding shows that the domestic contractors are far from being competitive in terms of cost overrun, time overrun and quality performance but it is promising progress over time. This necessitates the participation of both the construction industry and the government in improving the sector's competitiveness, Local road construction firms operate in a challenging business climate.