[Enter Post Title Here]

Cost effective condominium construction project in

Addis Ababa

PREPARED BY: 1.
2.
3.
4.
5.
6.
7.

HAYLEAB TESFAYECDE 0092

LAKEW MENGISTU.CDE 0102
DEREGE KUMACDE 0053
KEMAL A/KADIR.CDE 0099
DEREJE SEMAGNCDE 0054
ALEMAYEHU MOGES CDE 0012
AYICHEW ZEGEYE. CDE 0025

Cost effective condominium construction project in

Addis Ababa

1.

ABSTRACT

Housing is a basic need for civilized living. In many developing countries, housing
inadequacies and backlog have been increasing mainly due galloping increase in
population; fast pace of urbanization and other social and economic factors which
include breaking up of the joint family system, and steep rise in the prices of land,
building materials and labor.
Housing has become one of the complex problems of our times and unless urgent
measures are taken both at the national and international levels to mitigate the
housing

problem,

it

will

assume

crisis

proportion

with

grave

adverse

consequences on the survival and well-being of the people, as well as the process
of economic and social development.
Developing countries need to accord high priority to housing and despite the
severe constraints of resources; ways and means have to be devised to tackle the
housing problem.
As a matter of fact, cost effective housing means housing at low cost for all
sections of the population in a better quality standard. Thus the accent is on
housing at efective cost as compared to the prevailing cost levels.
It is sometimes felt that what is really intended by cost efective construction
is cost reduction in housing. Others view it as a low cost housing.
However, cost efective housing construction, generally implies housing for the
low-income families housing at affordable cost to them it can even be projected to
high income group also.
The perspective should be clear to all. Surely by low-cost housing it is meant to
achieve cost-efective housing for all, particularly for the low-income families so
that to the extent possible, housing is brought within their reach.
The research is focusing the projects of cost efective housing study conducted
through questioners, interviews and site observations. The findings of the
investigation have shown that; on a specific project sub-contractors and the main
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Cost effective condominium construction project in

contractor has Addis
weak Ababa
communication between each other .This is because; the
contract agreement is only with the client. This results non-uniform quality of
end product .It is found out from the respondents that the majorities of labors
does not have sufficient skills for the jobs they have given, and the contractors
are not supplying appropriate manpower required. Among the respondents, most
of them are not satisfied with the quality of materials brought either from
diferent quarry sites or from production areas .It is observed from sites of
those cost eficient housing projects that, negligence of the quality of works is
highly developed in most of the people there. Furthermore, the site engineers
follow traditional way of controlling techniques and among the observed sites
most of them have poor quality of control mechanisms and production
techniques.

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2.

ACKNOWLEDGMENT

We would like to express our gratitude and deep appreciation to our instructor
Mr, for his best teaching method that give us this project which enable us how
two write a good technical report.
And we would like to thank professionals working in housing development office,
site engineers, supervisors and house hold who have been providing us the
necessary information and data required for the research.

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Contents
1.

ABSTRACT.........................................................................................................................................................................2

2.

ACKNOWLEDGMENT......................................................................................................................................................4

Chapter 1.......................................................................................................................................................................................7
1. Introduction...............................................................................................................................................................................7
1.1 Background.............................................................................................................................................................................7
1.2 Statement of the problem........................................................................................................................................................7
1.3 Objective of the study.............................................................................................................................................................9
1.3.1 The General Objectives........................................................................................................................................................9
1.3.2 The specific objectives.........................................................................................................................................................9
1.4 Research limitations................................................................................................................................................................9
CHAPTER 2................................................................................................................................................................................10
2.LITERATURE REVIEW.........................................................................................................................................................10
2.1 INTRODUCTION.................................................................................................................................................................10
2.1.1. Historical background.......................................................................................................................................................10
2.1.2 Housing Problems, Housing needs and effective demand.................................................................................................11
2.1.3 Condominium Housing in Ethiopia Context......................................................................................................................12
2.1.4 Policy and legal frameworks and the actors in shelter delivery.........................................................................................13
2.2 Housing in Addis Ababa........................................................................................................................................................16
2.2.1 Access to Shelter and Housing Stock.................................................................................................................................16
CHAPTER -3-.............................................................................................................................................................................17
3.Analysis and discussions..........................................................................................................................................................17
3.1. Introduction..........................................................................................................................................................................17
3.2 Policy implementation...........................................................................................................................................................17
3.3 Material delivery and quality standard..................................................................................................................................17
3.4 Small scale enterprises..........................................................................................................................................................18
3.5 Schedule, quality and cost.....................................................................................................................................................18
3.6 Affordability and cost effectiveness......................................................................................................................................19
3.7 Households problem..............................................................................................................................................................20
CHAPTER -4-.............................................................................................................................................................................22
4. Conclusions and Recommendations........................................................................................................................................22
4.1. Conclusions..........................................................................................................................................................................22
5.2. Recommendation..................................................................................................................................................................23

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Acronyms

HDPO: - Housing development project office

MoWUD: - Ministry of Works and Urban Development
MSE:-medium to small enterprises
CEH: - Cost Effective Housing
(NGO):-Non Governmental Organizations
AARH Addis Ababa Rental Housing
USD: - United States Dollar
AACA:-Addis Ababa City Administration
CSA: - Central Statistics Agency
AAHDPO: - Addis Ababa Housing development Office
RC: - Reinforced concrete
CSIR:-Central Research institutes under the council of scientific and
industrial research
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CBRI:-Central building research institute

CGCRI:-Roorkee, Central Glass and Central Building Research Institute
CFRI Central Fuel Research Institute
SERC: - Structural Engineering Research
Centre IHDP: - Integrated Housing
Development Program ETB: - Ethiopian
Birr

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3.
4.

1. Introduction

5.

1.1 Background

Chapter 1

Housing Practices is an ongoing series that documents the experiences of

countries who are implementing large-scale affordable housing program which
provides authoritative and independent documentation of innovative affordable
housing program in countries of the developing world.
Rather than drawing from theory or abstract models, Housing Practices addresses
the demand for practical guidance on housing program based on experience.
Each volume holistically documents one
best-practice housing program that has achieved significant results.
The stagnant nature of economic development and rapid population growth of
most of the developing countries makes effective and efficient service delivery
difficult for governments, to satisfy the need of their residents. Housing is one of
the basic necessities for human survival; despite it remains for long period as a
critical problem of most of the cities of developing countries. This is the main
situation in Ethiopia as well.
The paper deals with analyzing the existing condominium construction situation of
the city to identify different factors that affect the strategy originally planned
make it low cost.

6.

1.2 Statement of the problem

This study outlines the state-of-the-practice about cost effective construction in

terms of construction management, material and work methodology within
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condominium projects of Addis Ababa. In the use of construction materials and

discusses the applications of indigenous materials. An evaluation based on
technical, environmental, and economic factors indicated that have significant
potential

to

replace

conventional

materials

for

various

applications

in

construction, and should be projected for future construction. Specific applications

of the products and potential problems associated with their usage in the
operations are also the rationale for the study.
Civil engineering has made a vast progress with the development of new
materials and sophisticated techniques of construction. Quality control, time
saving and reliability have become the motto of civil engineering. But, the
construction of low-cost residential buildings in Ethiopia is dominated by the use
of labour-intensive technique of construction. There is not much improvement in
the management and quality of construction due to the following reasons.
Old traditional techniques of construction are still on-going as they a r e thought
that they are assumed cheaper and facilitate the contractors:

Cheap labour attracts the local contractors as advanced machines are costly
Old techniques of construction involve more labour than machines
Most of contractors have not undergone civil engineering education

Also the housing standard of the city is incompatible with the affordability of the
majority residents to build their shelter. In other words the majority of the
residents have no financial capacity to build their dwelling to fulfill the standard
of the regulation, provided that the estimation of construction cost of the units
increasing day to day. However this is beyond the current reality since the price
of construction materials is rising rapidly.
Measures taken to alleviate the problem by public and private sectors could not
bring about a solution especially from the need of the poor. The city
administration had difficulties to supply standard housing, in quantity as well as in
quality terms, and basic services.
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There are, however, a number of unanticipated challenges facing the

program the most pressing is
the

affordability of the

increases

in

the

price

units

for

low-income households,

with

the

cost

of condominium houses deeming them no longer an

option for many low-income households. Furthermore, the inability to pay the
monthly mortgage and service payments forces many households to move out of
their unit and rent it.
The issue of successful housing construction of the city there for rests mainly on
strategies applied to increase cost effective construction. So the question is what
are the possible strategies that can enable cost effective construction of the city
to build decent dwelling?

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7.

1.3 Objective of the study

8.

1.3.1 The General Objectives

The general objective of this research is to show better alternative ways of

plan preparation and implementation that suits the socio-economic and political
(policy) environment of the country at large and the city in particular. This paper
deals with the cost effective construction in terms of construction management,
material and work methodology within condominium projects. Analysis and the
current
Quality control management practice in cost effective housing projects. The
research is based on case study conducted on respective projects; focuses will be
made on condominium house project sites in Addis Ababa.

9.

1.3.2 The specific objectives

To assess the ongoing condominium housing construction projects

in Addis Ababa particularly in one of the selected site with respect to

the strategic policy, plan and its goal achievement.

To study cost effective housing construction in terms of
construction management, material and work methodology on the

basis of past and ongoing experience.

To assess the affordability of condominium housing.

To observe problems of end products ready for use by the

households and those already being used by the household and come
up with alternative solutions.

10.

1.4 Research limitations

This Study conducted through site-visits, interviews with key stakeholders and
household surveys on condominium sites.

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We acknowledge the contribution of all individuals and organizations. In addition

appreciation is given to the households who participated in the household surveys
undertaken in Jemo and Gofa.
During the research work, we have been facing a number of constraints .Some of
the major limitations are mentioned as follows:
Time limitations
Shortage of data collecting instruments
Unwillingness of the construction companies and professionals to give
information.
To overcome the limitations, we have been spending all the time given, all of our
resources we have got with maximum possible efforts.

11.

CHAPTER 2

12.

2. LITERATURE REVIEW

13.

2.1 INTRODUCTION

Regardless of the economic condition of the developing country attempting to

meet its national housing needs, it is evident that in the selection of housing
schemes, the questions of economy remain the primary consideration because
construction of houses requires considerable investment of capital. As a result,
there is a great need to reduce building cost with the help of optimum utilization
of building materials that are scarce and costly. Speed in construction is also
to

be

brought

about

so

that construction is completed in a short time as

possible and the houses are ready for early occupation with relatively less cost.

The conceptual review with respect to cost saving mechanisms is addressed from
two aspects, namely construction technology aspect and construction
management aspect. Besides these two construction aspects are interrelated, a
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good management skill helps not only to retain the cost saving mechanisms
considered during the design phase but also to attain additional cost saving and
quality techniques. However, if the project is not well managed it may cost
additional amount and may become more expensive than the conventional
construction method. What we want to say is that though the cost reduction
techniques are interrelated, greater attention should be given to the construction
management that encompasses the inception till completion of the project.

14.

2.1.1. Historical background

According to many scholars, the concept of condominium is quite old. Albert

Ferrer states that there is at least one record of the sale of part of a building, in
ancient Babylon (modern Iraq), during the First Dynasty, nearly two centuries
before the birth of Christ, and that there is evidence of the use of the system
among the Greeks, Egyptians, and others. It was during the Middle Ages, when
walls were constructed to enclose cities in order to provide security, that
building space became even scarcer in many European cities. This lack of space
led to individual ownership of parts of a building, sometimes even individual
ownership of single rooms, in cities such as Orleans and Paris. Leyser states that
this

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Ownership of floors of houses, and even rooms, in the hand of different persons
was common in various parts of Europe. The condominium concept of home
ownership became especially widespread in the French cities of Nantes, Saint
Malo, Caen, Rouen, Rennes, and Grenoble. In Rennes a catastrophic fire in 1720,
which destroyed most of the city, forced inhabitants to build under a new
system of wider streets and taller, multi-family buildings. The experiment was so
successful that the system was firmly adopted.

The condominium concept spread to other European countries and, eventually,

to other parts of the world as Europeans immigrated to other continents.
Among the industrialized countries, the United States was the last to embrace
the condominium concept. The first attempt in the United States or its territories
to develop condominiums was the Horizontal Property Act of Puerto Rico, passed
in 1948, utilizing a model statute developed by the Federal Housing Authority.

After World War II, essentially the only type of commonly owned housing that
was available to the general population was the cooperative.

15.
2.1.2 Housing Problems, Housing needs and effective
demand
Housing is one of the basic needs for living. Proper housing is an important need
for every human being. However, the type of accommodation largely depends
on the economic development of the country. The developing counters today
have three major challenges to face: the alarming increase in population, poverty,
and the fast pace of urbanization. As a result of these challenges a large number
of people in Asia, Africa, and Latin America are either homeless or inadequately
housed, which adversely affect their well-being and retards social and economic
development.
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The government estimates that the current housing deficit is between 1,000,000
and 2,000,000 units in urban areas, and that only 30 per cent of the current
housing stock is in a fair condition, with the remaining 70 per cent in need of total
replacement.
The housing deficit is set to increase concurrently with the foreseen high
population and urbanization growth.
Between 1983 and 2007, Ethiopias population more than doubled, from 33.5
million to 87.2 million, and it is projected to more than double again by 2050 to
reach 170.2 million. To accommodate future growth, the Urban Sector Millennium
Development Goals Needs Assessment (2004) predicted that to

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Meet the Millennium Development Goals (MDGs) in 2015 requires a total of

2,250,831 units, which equates to a considerable 225,000 houses per annum.
There is massive demand for serviced, healthy, affordable housing. This demand
stems from both the current housing deficit and the poor quality of the existing
kebele housing stock that is beyond repair. However, there is low efective
demand. Effective demand is based on the ability and willingness to pay for
housing, affected by income and what households are prepared to pay. Although
effective demand is difficult to determine because it requires reliable data on
income levels and expenditure patterns of households, their savings capacity and
prioritization of housing vis--vis other forms of investment, it is the case that the
majority of Ethiopians cannot pay for formal housing supplied by the private
market. Therefore, the greatest need is for affordable housing.

Figure 1 Dilapidated
Houses

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16.

2.1.3 Condominium Housing in Ethiopia Context

The idea of condominium housing is a new phenomenon in Ethiopia. It is just as

old as the IHDP. It emerged as a strategic response to rapid urban population
growth, high prevalence of urban poverty, and urban unemployment in major
Ethiopian cities; because only 30% of the urban house stock was regarded to
be in fair condition; and the housing shortage is being estimated to be between
900 000 and
1,000,000 (MWUD, 2006, IHDP 2008). The condominium housing project thus aims
at meeting the elements of Millennium Goal 7 on Environmental Sustainability,
target 11 which seeks to achieve a significant improvement in the lives of at
least 1 million slum dwellers In Addis Ababa city more than

70% of the population lives in slums and the houses are made predominantly
from mud and straw
(IHDP 2008).

17.
2.1.4 Policy and legal frameworks and the actors in
shelter delivery
Currently though housing policy is not yet formulated at national and city level,
the citys housing principle is following the free market economic policy adopted
in 1991that create conducive atmosphere for private sector particularly the real
estate developers to participate in housing development. The federal government
enacted proclamation on urban development policy that gives high attention for
alleviating housing problems of urban areas. The city administration has also
prepared five years housing development program in 2004 to reduce housing
problem of the city by 50%. The progra m gives prior attention for alleviating
housing problem of low income households. It promotes high raise (up to G+4)
condominium
minimize

buildings

with

the construction

cost

minimum
so

as

to

built

up

benefit

area
low

of

22

income

m2

to

families.

Government, Private sector (Real estate developer, Cooperatives, and Individuals)

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and Non-Governmental Organizations (NGO) are considered as the major actors in

housing construction and marketing activities.

The central government represented by AARH was involved in constructing and

renting houses for residential and other purposes before 1991 none the less the
outcome was not as it was required. Over the period 1974-1991, the AARH
constructed 8623 dwelling units throughout urban Ethiopia. (PADCO
1996:29) At present it is only renting the constructed and nationalized houses
with a monthly rent of above USD 11.11.The city administration is renting about
150,000 nationalized units rented below USD
11.11 Per month and known as Kebele houses. Besides even though it was
responsible for supplying low cost residential houses it built 7409 units only
during 1996-2004. Now days it is involving in building
32000 units for residential and commercial purposes with a high emphasis of
supplying housing for the low income households.

The

process

is

however

hindered by shortage of financial and material resources.

Management with executive responsibility of each of the project team members
should define a policy for quality control including objectives for quality and its
commitment to quality. The quality policy should be relevant to the owners goals
and expectations. Project team member management should ensure that the
quality policy is understood at all levels of the project team members
organization.
For example; the quality policy of HDPO is
stated as follows:

Insure the quality of the houses to be built consistently by preparing accurate

and to the standard designs, as poor designs can never result in a high quality
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product implementing the same with the use of approved material, appropriate
equipment

and

competent

workmanship

to

meet

the

minimum

quality

requirements specified therein with a minimum possible cost and without

affecting health, safety and environmental consideration.
I.

Make the management body at various levels fully aware and

committed to implement the quality management system of the
project office.

II. I n s u r e preparation of accurate and to the standard designs and

specification.

III. I n s u r e the use of only materials of specified quality. This includes

quality control of raw construction materials in production area,
inspection of production process, final products and during purchase of
materials.

IV.

Conduct close supervision during construction: Checking the

dimensions, working procedures, mix ratios etc. to insure the correct
implementation of design drawings & specifications.

V. Supervise the skill & competence of staff & tradesman employed by

Producers, the Contractors, and the Consultants and by the Employer
in one way or another for the execution of the projects.

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Figure 2 Institutional Frame work of HDPO

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18.

2.2 Housing in Addis Ababa

19.

2.2.1 Access to Shelter and Housing Stock

The housing condition of Addis Ababa is by far inadequate in quantity and

quality terms to meet the need of the residents.
In 1994 the number of housing units (374,742) was 9.5% less than the number of
households (414262) which need an equal number of dwellings. (CSA1999:218).
Based on the data of planning and policy commission the difference has
increased to 24.8% within ten years, even if the total housing stock has risen to
471429 with 2.5% average annual increment. The unfulfilled demand for
residential housing in
2004 was therefore 116,806. Besides, different studies indicate that 269814
(about 80%) of the houses located in the inner part of city (337268) need
complete replacement because of dilapidation. Hence, the estimated gap
between housing supply, demand and housing deficit due to new household
formation
And dilapidation as of 2004 is estimated to be
about 386,620.
Measuring housing quality by major indicators that are availability of adequate
space for privacy and mobility and Physical condition of the houses, most of the
dwellings in the city are termed as low level of quality.

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Figure 3 Slum areas in parts

of the city

20.

CHAPTER -3-

21.

3. Analysis and discussions

22.

3.1. Introduction

The analysis of the research is carried out by from the data collected through
questionnaires, interviews, formal and informal discussion and observations on
condominium housing construction sites.
The information we gathered through questionnaires from employers,
contractors, households and consultants are briefly discussed here.

23.
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3.2 Policy implementation

Our first research question was:

Is the housing policy being implemented as per the program?

From the data collected we have found out that few of the respondents
responded that the housing policy being implemented as per the program. But
most of the respondents were replied that in order to achieve the planned
implementation:

Contractors and sub-contractors must improve their performances.

Design problem and late delivery of construction materials which have

considerable effect on project delay must be improved.

Improving proper planning and policy implementation and

Government has to revise the policy that has been implemented.

24.

3.3 Material delivery and quality standard

Do have come across any problem that the material

delivery by IHDPO?

Material delivery and its quality that IHDPO delivered is another major cause of
delay in condominium m housing projects. Most of respondents suggested
shortage and late delivery of construction n materials on site and few responded
the major problems are improving through time as compared to the early
practice. The respondents in addition raise issues like:

IHDPO has to allocate the required materials on time contractors in order to

overcome delay on construction works.

Construction material demand and supply has to be balanced.

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Massive delivery system has to be deployed and

Temporary storage at each site must be provided.

The materials delivered by IHDPO will cause you to excess wastage due to its
low quality standard?

From the data collected the quality standard is hampered because of the
material delivered by IHDPO. From the respondents loss or wastage of cement,
coarse aggregate, precast beam, metal works and steel structure are listed here
under:-

Most of the respondents have replied that the cement wastage is 0-5%.
Most of the respondents suggested that the reinforcement wastage is 5-10%.
Most of the respondents have responded that wastage from coarse aggregate
ranges from 0-5%.
Most of the respondents suggested that hollow block wastage is 5-10%.

25.

3.4 Small scale enterprises

Is subcontracting to small scale enterprise being supportive to the

implementation of the housing program?

All of the respondents have responded that small scale enterprises are not as
such supportive to the implementation of the housing project in terms of skill,
productivity, performance, work ethics and ability to perform on time.

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26.

3.5 Schedule, quality and cost

Do you think a condominium housing project in Addis Ababa is completed

within the proposed work schedule?
All of the respondents of our questionnaires have responded that condominium
housing in Addis Ababa are not completed as per schedule due to different
factors like :

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Late delivery of materials such as cement, reinforcement, electrical and sanitary materials on site.

Lack of close supervision

Poor quality of materials

Poor production of construction materials by small scale enterprises

Design and budget problem

Poor performance of contractors and

Government housing construction policy and implementation.

Does the projects are

in cost overrun?

All of the respondents of our questionnaire have suggested there is cost

overrun on condominium housing project due to different possible
reasons delayed material delivery, design incompleteness, contractors
performance, lack of proper supervision, poor project coordination,
corruption and lack of interest from the higher officers.

Do you think the project is being completed according the

specifed quality standard?

All of the respondents have responded quality standard on condominium

housing project is affected by different reasons like:

Lack of experience

Quality of materials from the supplies

Performance of the contractors and sub-contractors

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the material that are used for finishing is highly low quality

Lack of skilled laborers

Use of poor construction materials

Lack of close supervision by consultants

Poor workmanship and

Poor quality production of construction materials by unskilled small scale enterprises.

27.

3.6 Affordability and cost effectiveness

Do you think the housing project is afordable for low and

middle income families?
All of the respondents of our questionnaire have suggested housing
project is not affordable for low and middle income families due to
several reasons such as alternative design revisions like use of finishing
free materials, to minimize cost overrun in construction works and the
contractors have to make a discount on their overhead and profit
margins.
On the other hand the government should make an alternative for low
income society and also it has to make a subsidy to households. Again
the government must try to bring down price by improving policy and
implementation. Furthermore the government should reduce the cost or
price of house by improving project management in terms of material,
labor and equipment.

Do you think that condominium

projects are cost effective?

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85% of the respondents have suggested that condominium projects are

not cost effective because of several reasons such as delay in
construction works, quality problem, inefficiency of contractors to have
systematic project coordination that upgrade costs, delayed material
delivery, design incompleteness, rework due to poor construction
techniques, wastage due to poor quality of construction materials, poor
performance of contractors which have a considerable effect on cost and
government

policy

implementation

problems.

But

15%

respondents have suggested that condominium projects

of

the

are cost

effective.

28.

3.7 Households problem

Have
you
received
your
condominium house on time?
All of the respondents have responded that they didnt get their
condominium houses on time after they are announced as lottery winners
because the government announces lottery to the households before the
completion of the houses. This suffers the households until 6 month and
above without getting houses.

The status of the house when you were

handed was it completed?

All of the respondents of our questionnaires have suggested that the

status of the house when it was handed over to households is not
completed. The remaining finishing works that are not completed by
government, when the houses are delivered to the households are tiling
work, internal door fixing work and painting work.

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How much extra money you spent to

make the house habitable?
All of the respondents of our questionnaires have suggested that the
extra money spent by households to make the house habitable ranges
from:

10,000 to 15,000 ETB for one bedroom

10,000 to 25,000 ETB for two and three bedroom

Do you have functional problems in your private premise,

neighbor and common areas?

Most

of

the

respondents

have

suggested

that

they

have

faced

problems due to several reasons like:o

Limited space on the corridor to store your house utilities

In case of two bedroom house type, the living room is not fully ventilated and

Because of limited space availability, it is difficult to do different house activities

But the remaining 33% of our respondents have suggested that they
dont face functionality problems while using houses.
Is the stair case or vertical circulation system comfortable to you and does
it fulfills the requirement for disabled and fire escape?
All of the respondents of our questionnaires suggested that the steel
staircase or vertical circulation system is not comfortable to the
households due to several reasons such as:

There is no other means of vertical circulations for disabled persons like ramp and
elevators.

Fire escape access is not provided for condominium projects.

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29.

CHAPTER -4-

30.

4. Conclusions and Recommendations

31.

4.1. Conclusions

The following Conclusions are drawn out from the study:

Program implementation could not reach to the target due to

excessive delay and additional cost as well.

Material delivery system takes prolonged time and creates additional loading- unloading
fee.

Material shortage is not being given immediate solution and

hence resulting in suspension of project activity.

The multiple loading unloading phenomenon of the supply
system brings about 10% of wastage on materials delivered by

HDPO and more forced cost on contractors.

Considerable gap is seen between HDPO and MSE in terms of
quality and work progress because there is a very poor
communication with the main contractors and consultants on the

project site.
Medium and small scale enterprises do have lack of skill,
productivity, performance, work ethics and punctuality on work

schedules.
As a result of weak follow up, method of statement analysis and
improvement on work methodology; Poor quality of the work,

additional cost due to rework on defects remedy is seen.

Materials produced and delivered by medium and small
scale enterprises are sub standards and considerable damage is

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observed while loading unloading from production area to work

site.
The construction, consultant and production team do not
have a single well designed work methodology for each

work item.
The material selection by HDPO seems to be given less concern
in introducing new indigenous cost effective and materials
requiring minimized finishing works.

The need for quick update in construction technology and materials.

The houses are not affordable for middle and low income families.

Late delivery of houses to the household as a result of

incompleteness of construction activities after being awarded by
HDPO due to non-parallel execution of infra structure and the
HDPO transfer office long process of handing over. The houses
are partially completed needs more works and more money to be
habitable.

32.

5.2. Recommendation

First our recommendation starts with the appreciations of the good

parts which should be kept up by the system such as;

Good improvement is seen on the contractors performance

though there are steel much to be worked out on selection
criteria of contractors which are to be based on their past
performance with HDPO and other areas of similar or related

construction projects.
Introducing new technology such agro stone partitions and
doors PVC windows which of course would have been

implemented long time ago.

Quick and progressive revision is required on policy programs and its implementation.

Up to date improvement on the organizational structure of

Housing sector by repeatedly investigating how failures
occurred on the policy and its implementation.

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Temporary Material production plant should be provided on the

project site to facilitate the supply management coordination
with the project management as it is usually practiced in other
construction project site. These will help in minimizing un
necessary additional cost incurred due to transporting process,
difficulty in following up of production quality. Even if all
production works are being performed by MSE we found it
practical for them to suited on the project site since their plants

are easy to mobilize from one site to the other.

HDPO needs to put much more effort in improving the
construction technology and its management by creating
opportunities for new ideas and innovations which makes the
projects more cost effective. We believe this will be achieved by
a joint effort with professionals in other sectors (other stake

holds) through researches and panel discussions.

The project management team should play a vital role in
giving useful practical information and recommendation in
improving the policy and its implementation as fast as possible.
This will help HDPO and government to take immediate
measure in order to avoid accumulated effects on over all
projects of the city and the country as well since the projects are

considerably big in investment.

There is a need in improving the professional and skill capacity
of all the participant of the project by giving up to date training,
short term visit of similar projects, professional up grading and
panel discussions in inter changing their practical and
theoretical exposures. This can be achieved both within the

country and between other countries.

Before the commencement of any housing project a joint
site survey must be made between the consultants and the
HDPO supervision team to check whether the designer
consider

the

actual topography into consideration so that

corrective measures and economical solutions can give. This

will help in adjusting the project budget from the very beginning
and avoiding addition cost incurred due to delay of construction

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to get decision on such matters. Some of them are; floor finish

level, road levels, drainage and sewer system layouts and all
other utilities resulting in excess volume of work in terms of

material and labor.

There is a need to improve the work methodology by drafting a
very well detailed method of statement for each work items on
how the necessary construction steps are to be followed as a
common standard by all parties of the project. This should
progressively have to be up dated depending on the actual site
situation.

After all this study the cost efective construction of condominium

housing can be less costly, quick to satisfy the rapidly growing
demand,

improve

environmental

quality,

friendly

improve

issues.

In

durability,
addition

aesthetic,

to

this

the

implementation of modern construction science and technology

supported

by

industrialization

on

the

basis

of

construction

management, materials and work methodology can give cost

efective construction.

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References

1. Muhammad Kaysaar Hussain (2008). Economics of Low Income

Housing, Proceedings of IAHS International Conference, university of
petroleum and minerals, Saudi Arabia,
2. The beat (1996).History of condominium. Business education and trade,
volume 7, issue1

3. Bennett S.Donna (2010). Condominium home ownership in the United

States: a selected annotated bibliography of legal sources. Northern
Kentucky University
4. Ingwani, Emaculate and etal (2010). Design Considerations and
Sustainable Low Cost Housing

Provision for the Urban Poor in Addis Ababa, Ethiopia

5. Azeb Kelemework(2007?) Housing for the Poor in Addis Ababa. Addis

Ababa, Ethiopia

6. http://chilot.meethiopian- building-proclamat ion

7. http://www.metropolis.org.marfin

8. Ministry of Federal Affairs and German Technical Co-operation Low cost

housing technical manual

31 | P a g e

Addis Ababa, Ethiopia 2003

9. Dagnachew Tsegaye and etal (2006). Low cost housing in Addis Ababa:
A Study Focusing on the

Main Cost Reducing Mechanisms. Addis Ababa, Ethiopia

10. Wubshet Jakal (2008). Condominium Housing Development Solution for

Low and Middle Income

Groups, the case of Addis Ababa. Addis Ababa, Ethiopia.

11. UN-HABITAT (2010) The Ethiopia Case of Condominium Housing:

The Integrated Housing
Development Programme. United Nations Human Settlements
Programme: Nairobi.

12. Ministry of Federal Affairs and German Technical Co-operation Low cost
housing technical manual
Addis Ababa, Ethiopia 2003
13. low cost housing in addis ababa Thesis (2006)

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