ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE

PROJECT TIME AND COST MANAGEMENT PRACTICES AND ITS

CHALLENGES IN ETHIO-TELECOM EXPANSION PROJECT

BY: SHIMELIS DESSALEGN

A RESEARCH PROJECT SUBMITTED TO ADDIS ABABA

UNIVERISITY, SCHOOL OF COMMERCE IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF ARTS
DEGREE IN PROJECT MANAGEMENT

ADVISOR: DR. TENKIR S. (PHD)

ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE

ADDIS ABABA, ETHIOPIA
JUNE, 2022
 Declaration

I hereby declare that a project work named - ―PROJECT TIME AND COST MANAGEMENT
PRACTICES AND ITS CHALLENGES IN ETHIO-TELECOM EXPANSION PROJECT‖ is
original work of my own. It had not been presented for a partial fulfillment for any educational
qualification at this university or any other and in any projects by any means, and all the
resources materials used for this thesis had been accordingly acknowledged.

_____________________ ___________________
Shimelis Dessalegn Date

IX
 Addis Ababa University

School of Graduate Studies

This is to certify that the project work prepared by Shimelis Dessalegn, entitled Project Time and
Cost Management Practices and Its Challenges in Ethio-Telecom Expansion Project submitted in
partial fulfillment of the requirements for the degree of Degree of Master of Arts complies with
the regulations of the University and meets the accepted standards with respect to originality and
quality.

Signed by the Examining Committee:

Examiner: __________________ Signature: __________________ Date: _______

Examiner: __________________ Signature: __________________ Date: _______

Advisor: ___________________ Signature: __________________ Date: _______

Advisor ____________________ Signature: __________________ Date: _______

____________________________________________________________________
Chair of Department or Graduate Program Coordinator

X
 Acknowledgment

First and foremost, I would like to thank God Almighty who gave me the strength at every single
stage of this study at this difficult time of my life, and allowing time to enjoy this part of my
academic career.

My special and sincere thanks go to my advisor Dr. Tenkir S. (PHD), whose professional
guidance, support, advice, patience, his frequent follow up and invaluable comments throughout
this work, has been remarkable to bring this research into final.

Besides my advisor, my special thanks go to the officers, directors’ managers and team members
of Ethio telecom Wireless and IPED Division for dedicating their time in answering the
questions presented regarding the topic of the study which enabled me to carry out the study.

My love and credit go to my family for their encouragement, patience and valuable support, for
without them completing of the research would have been difficult.

Last but not least, I want to thank all my dearest friends especially Emebet Fikadu who have
supported me by giving necessary materials and constructive advices throughout my study
particularly in completing my thesis work.

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 Table of Contents

Acknowledgment........................................................................................................................................ i

List of Tables ............................................................................................................................................. v

List of Figures .......................................................................................................................................... vi

ABBREVIATIONS ................................................................................................................................. vii

Abstract .................................................................................................................................................. viii

CHAPTER ONE ....................................................................................................................................... 1

INTRODUCTION .................................................................................................................................... 1

1.1 Background of the Study................................................................................................................... 1

1.2 Statement of the Problem .................................................................................................................. 2

1.3 Objectives of the Study ..................................................................................................................... 3

1.3.1 General Objective ...................................................................................................................... 3

1.3.2. Specific Objectives ................................................................................................................... 3

1.4 Research Questions ........................................................................................................................... 4

1.5 Significance of the Study .................................................................................................................. 4

1.6 Scope of the Study ............................................................................................................................ 5

1.7 Limitation of Study ..................................................................................................................... 5

1.8 Definition of Key Terms ................................................................................................................... 5

1.9 Organization of the Study ................................................................................................................. 6

CHAPTER TWO ...................................................................................................................................... 7

REVIEW OF RELATED LITERATURE .............................................................................................. 7

2.1 Theoretical Review ........................................................................................................................... 7

2.1.1 Concepts of Projects................................................................................................................... 7

2.1.2 Understanding Project Life Cycle .............................................................................................. 8

2.1.3 Project Management Knowledge areas .................................................................................... 10

2.1.3 Concepts of Project Success ..................................................................................................... 11

2.1.5 Challenges with project Implementation .................................................................................. 12

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 2.2 Empirical Review............................................................................................................................ 14

2.2.1 Project Time and Cost Management Practice ............................................................................... 14

2.2.2 Challenges of Project Time and Cost Management Practice ........................................................ 15

2.3 Conceptual Framework ................................................................................................................... 17

CHAPTER THREE ................................................................................................................................ 19

RESEARCH DESIGN AND METHODOLOGY ................................................................................. 19

3.1 Research Approach and Design ...................................................................................................... 19

3.1.1 Research Approach .................................................................................................................. 19

3.1.2 Research Design....................................................................................................................... 19

3.2 Study Area ...................................................................................................................................... 19

3.3 Research Population and Sampling ................................................................................................. 21

3.3.1 Target Population ..................................................................................................................... 21

3.4.2 Sampling Size .......................................................................................................................... 21

3.4.3 Sampling Technique ................................................................................................................ 22

3.4 Data Source and Method of Data Collection ................................................................................... 23

3.4.1 Data Source .............................................................................................................................. 23

3.4.2 Data Collection Method ........................................................................................................... 24

3.5 Data Analysis Techniques ............................................................................................................... 24

3.6 Validity and Reliability ................................................................................................................... 25

3.6.1 Validity .................................................................................................................................... 25

3.6.2 Reliability of Instruments ......................................................................................................... 25

3.7 Ethical Consideration ...................................................................................................................... 25

CHAPTER FOUR .................................................................................................................................. 26

RESULTS AND DISCUSSION ............................................................................................................. 26

4.1 Introduction..................................................................................................................................... 26

4.2 Response Rate and Demographic Data ........................................................................................... 26

4.3 Project Time and Cost Management ............................................................................................... 28

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 4.4 Challenges of Project Time and Cost Management......................................................................... 30

4.4 Discussion ....................................................................................................................................... 32

CHAPTER FIVE .................................................................................................................................... 34

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION ................................... 34

5.1 Summary of Findings ................................................................................................................ 34

5.2 Conclusions..................................................................................................................................... 35

5.3 Recommendations ........................................................................................................................... 36

References ................................................................................................................................................. 1

Appendices ................................................................................................................................................ 4

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 List of Tables

Table 3.1: Target Population Distribution by Position Strata ……………………..…………... 26

Table 3.2: Stratified Random Sampling Proportion …………………………………………… 27

Table 4.1: Frequency of Demographic Characteristics of respondents (N=153) …………….... 30

Table 4.2: Descriptive Statistics for project time and cost management (N=153) …………….. 33

Table 4.2: Descriptive Statistics for project time and cost management (N=153) …………….. 34

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 List of Figures

Figure 2.1: Conceptual framework of the study …..…….………..….…….……….…...…...… 18

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 ABBREVIATIONS

4G - Fourth Generation

ETC - Ethiopian Telecommunication Corporation

FDRE - Federal democratic republic of Ethiopia

GTP - Growth Transformation Plan

ICT - Information Communication Technology

IPED - Infrastructure Power and Environment Department

NGN - Next Generation Network

PMBOK - Project management body of knowledge

PMI - Project Management Institute

SPSS - Statistical package for the social sciences

TEP - Telecom expansion project

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 Abstract

The delivery of projects in Ethiopia is plagued by time and cost overruns, which turns what
should have been successful projects into those incurring additional costs, or money-losing
ventures; as well as leading to various other unexpected negative effects. The objective of the
study was to assess the project time and cost management practice in Ethio-Telecom expansion.
This descriptive research study involves 153 employee of the organization at Ethio-Telecom head
office in Network and IPED department. Structured questionnaire were prepared by the
researchers using related literature and adopted instrument as data collection instrument. Both
descriptive and inferential statistics were used as data analysis method. Regarding the practice
of project time and cost management, majority of participants reported high rate of project time
management and low rate of project cost management. According to the result, the highly
challenging factors were Economic and Finance related factors, and Political related factors.
And Managerial related factors and Human related factors were less challenging factors for the
practice of practice of project time and cost management. The practice of project time
management in Ethio-Telecom expansion projects were managed well to the timely completion of
the project. However, project cost management processes was practiced at low level of rate.

Keyword: Project Time Management, Project cost Management, Ethio-Telecom

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Ethio-Telecom, is an integrated telecommunications services provider in Ethiopia, providing

internet and telephone services. According to the National Bank of Ethiopia's annual report
(2015/16), there were 46 million mobile phone users, 1.1 million fixed lines, and 8.4 million
General Packet Radio Service (GPRS) subscribers in a country of over 95 million people. High-
quality telecommunications may have a more significant impact on growth than other
infrastructure inputs such as education, energy, and highways (Haftom, 2019).

Project management processes are very helpful to the telecom companies like Ethio-Telecom,
this is because it helps the company to focus on resource and time while moving its business
forward strategically. Both success and failure have something to teach. Project organization can
take lesson from its success to repeat the same, and from failures to avoid it. When we fail to
learn from our own mistakes or those of others, we tend to repeat the mistakes. Following the
conceptualization and planning phases of project management life cycle, the implementation
(execution) phase is carried out to put the project plan into action and deliver the outputs in
which most of the project’s time, cost and resources are spent (Atkinson, 1999).

Attributes of a successful construction project include completion on time, within budget, as per
specifications and as per the satisfaction of its stakeholders. However, delays and cost overruns
are commonly reported problems in the execution of public sector projects. Delays in public
sector projects result in late completion of projects, additional costs, claims and disputes,
disruption to public availability. In addition, public sector projects are often considered a
measure of political performance and suffer immense political influence regarding their
completion within challenging budget and time constraints. Therefore, any delays and cost
overruns in public sector projects not only result in poor project performance but also summon
criticism of related public office bearers for misusing taxpayer money (Idrees and Shafiq, 2021).

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The project management practices in Africa and in Ethiopia in particular are poor. The
management practice in Ethiopia is even the second (after Mozambique) from the last in
management practices scores across studied countries in Africa (Bloom, et al., 2014; Ayalew, et
al., 2016). This indicates there are poor project implementation practices in all sectors especially
in project time management and cost management practice since the mainly reported challenges
related with project success are delay and cost overrun (Negalign, 2020; Medhin, 2019; Tegenu,
2018). Through each project undertaking there are lessons to capture, verify, store and
discriminate, if it aims to improve in its operations and avoid its past mistake. This study focuses
on the assessment of project time and cost management in Ethio-Telecom Expansion project to
identify the gap and improve on the implementation of upcoming similar projects.

1.2 Statement of the Problem

Ethio-telecom is involved in diverse projects, where most practical knowledges are generated in
process of project planning, execution and evaluation and closure. Preoccupation in the project
process and failing to capture proper management of time, quality and cost from each key
millstone is a mistake observed in Ethio-telecom. This puts the project undertaken by the
company into vicious circle of inventing new wills and making same project management
mistake. In developing countries like Ethiopia, the failure of projects such as road construction,
dams, plants, pipes, industries, theatres, e-government services, telecommunication, ICT and
many others, is very high because of some setbacks such as abandonment, cost deviation,
schedule deviation, scope deviation and stakeholders dissatisfaction are among others. Like
elsewhere in the world, African projects are often late and over budget; but, their project failure
rate seems to be in excess of 50% (Ika & Saint-Macary, 2014).

The Ethio-Telecom expansion project faced up with schedule and cost variances that affected the
overall performance of the project. This indicates there are some problems in time and cost
management during the project implementation that influences the time and cost management
performance of the project. As telecom technologies are changing at breakneck speed, it is
necessary to assess time and cost management practices on the actual implementation of the
project and the overall quality of the project output. In addition, the other project management
knowledge areas such as scope, quality, integration, resource, stakeholder, communication and

2
risk management has to be assessed. It is also important to assess other practices including top
management support, people readiness, process readiness and system readiness in the project
implementation. The poor project performance in Ethio-Telecom affects the goals and objectives
of the project as well as the company in delivering quality of service, satisfying customer
demands and achieving the government plan in the industry (Medhin, 2019). The time, cost and
quality variances resulted not only from poor performances of time, cost and quality practices;
but also, because of poor performance in other related practices such as the 10 management
knowledge area, management support and readiness related practices in general (Tegenu, 2018).

The purpose of the assessment is to explore and gain a clear understanding of the current project
management practices specifically in terms of time and cost of the project, since a delay in
completion of project time, additional cost incurred above allocated budget, poor project
implementation performance, low quality in deployment and installation of infrastructure,
product and technology are observed for network, civil and power equipment works, and how to
improve the problems observed, so as to increase upcoming similar project performance and
organizations project capability.

1.3 Objectives of the Study

1.3.1 General Objective

The general objective of this study will be to assess the project time and cost management
practice and its challenges in Ethio-Telecom expansion.

1.3.2. Specific Objectives

The specific objectives of the study include the following:

 To identify project time management practice in Ethio-Telecom expansion project.

 To examine project cost management practice in Ethio-Telecom expansion project.
 To investigate the major challenges that influence project time and cost management
practice level in Ethio-Telecom expansion project.

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1.4 Research Questions

The aim of these basic research questions is to critically see Ethio-Telecom expansion project
implementation in regard to time and cost management. These questions are:

 What is the practice of project time management in Ethio-Telecom expansion project?

 What is the practice of project cost management in Ethio-Telecom expansion project?
 What are the major challenges that influence project time and cost management practice
level in Ethio-Telecom expansion project?

1.5 Significance of the Study

Every project effort has many valuable lessons to be learned if knowledge is properly acquired,
validated, recorded and disseminated for implementation. These lessons can be used to make
process changes, run projects more efficiently, and work better as a project team. Companies can
save money by not reinventing the wheel every time a new project is started (Newell, 2004).
Regardless of whether the lessons learned from the positive or negative experience of a past
project, the project manager can learn from the past project and carry out the past success while
avoiding the past failure, thereby the cost of the project can be reduced (Parnell et al., 2005).

The results of this study will benefit a variety of stakeholders, including Ethiopian state
telecommunications, governments, local offices, project-oriented organizations in general, and
other researchers. Therefore, the results of the survey will benefit Ethiopia's state-owned
telecommunications to improve project implementation in terms of time and cost. Relevant
government agencies know how the performance of the project is in line with the sector's
intended mission and government objectives. In the future, researchers will be able to learn more
about the company's project management based on the results of this research. This allows
Ethiotelecom to improve its approach to similar upcoming projects and meet the time, cost, and
quality requirements of the project.

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1.6 Scope of the Study

The research is geographically limited to the head office of Ethio-telecom Addis Ababa city and
the study will be done on one of the projects under Wireless UMTS & LTE New Build which is
one of the 10 programs under Ethio-telecom planned under the three-year strategic planning. The
study may be delimited to assessing only time management and cost management on project
performance in Ethio-telecom’s expansion project. But, projects in Ethio-telecom are affected by
different project knowledge areas such as scope, integration, resource, stakeholder,
communication, and risk management has to be assessed.

1.7 Limitation of Study

The lack of previous study in Ethio-telecom project management practices may hinder the
comparison of the results with those studies. Access to some project documents especially cost-
related data may be difficult to get due to confidentiality and audit investigation purposes. As the
sample is considering only respondents from head office in Addis Ababa, the results might not
be generalizable beyond the specific population from which the sample is drawn. Moreover, the
use of questionnaires can also cause bias or incorrect results. So, the researcher provides a brief
message for the respondents about the purpose of the study and includes this also in the
questionnaire.

1.8 Definition of Key Terms

Project implementation: is the Process whereby project inputs are converted to project outputs.

Project management: is an application of knowledge, skills, tools and techniques to project

activities to meet project requirements (PMI, 2013).

Project Cost management: is concerned with the process of planning and controlling the
budget of a project or business (PMI, 2013).

Project Time Management: is concerned with the processes required to manage the timely
completion of the project (PMI, 2013).

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1.9 Organization of the Study

The study focuses on the assessment of project time and cost management in the Ethio-telecom
Expansion Project. The paper was organized into five chapters. The first chapter constitutes with
introduction part of the study providing details related to the background of the study, statement
of the problem, research questions, objectives of the study, significance of the study, the scope of
the study, limitation of the study, definitions of terms and organization of the study. Chapter two
deals with a review of related literature with regard to the study's selected topics and the third
chapter contain the methodology and description of the study area. Chapter four presents data
analysis, findings, and discussions of the data that were gathered. Chapter five deals with the
conclusions and recommendations part of the study.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

This chapter aims to provide a review of related literature. In line with the objectives of this
study, this chapter covers concepts related to project time and cost management. In addition to
these the findings of previous research from different authors as well as the theoretical
framework of this study is also included. The chapter begins by presenting literatures about
theoretical review. The researcher has also tried to review various empirical studies that are
related to this research topic. Finally, the research model; i.e. the conceptual framework was
plotted in order to put a clear picture about the variables in the research area.

2.1 Theoretical Review

2.1.1 Concepts of Projects

According to Krzner (2002) projects are a complex of economic activities in which scarce
resources are committed with expectation of benefits that exceed the cost of committed
resources. They are expected to drive benefits and desirable if their benefits are greater than the
cost incurred on them. They are well organized forms of activities carried out to achieve defined
goals, non- repetitive, and time bound. Different institutions and organizations apply different
approaches of project lifecycle.

Project management can be defined as: the application and integration of modern management
and project management knowledge, skills, tools and techniques to the overall planning,
directing , coordinating ,monitoring and control of all dimensions of a project from its inception
to completion ,and the motivation of all those involved to produce the product ,service or result
of the project on time, within authorized cost, and to the required quality and requirement, and to
the satisfaction of participants. As Krezner (2002:5) noted project management is an exciting
managerial activity which involves an art of creating the illusion that any outcome is the result of
a series of predetermined, deliberate act when, in fact it was dumb luck, in which all works all
works has interdependence and inter-relationship with others.

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Krezner (2002) & Keeling (2000) state that the aim and objective of the project management are
to achieve timely completion of the project within the allocated resources, time, specified quality
and targeted outcomes for the benefit of the society. As Waldt (2008), the establishment of
project management as a profession has been a major step in its global recognition and
acceptance. In 1984, the Project Management Institute (PMI) administered the first Project
Management Professional (PMP) certification examination, and in 1996, the Project
Management Body of Knowledge (known as the PMBOK guide) was published.

2.1.2 Understanding Project Life Cycle

To have repeatable project success and achieve the desired objective of a project a basic
understanding of the project life cycle is very crucial. When you take the time to establish a clear
and consistent vision, imagining who is involved in bringing the project to life and securing the
resources needed becomes a mandate, and then gives the project a robust start that sets the stage
for everything that comes next.

A project is a process of working to achieve a certain goal, it passes through several distinct
phases or stages which is called the project life cycle. It is also known as stages in project
development. PLC demonstrates the logical framework for managing a project. It provides a
guide to developing our plans, deciding when to allocate resources, and evaluating the progress
of the project. Since specific deliverables and activities of a project can vary throughout the
project it is important to map the life cycle and cost during the time span of the project
(Atkinson, 1999).

The project life cycle includes the steps required to successfully manage a project. There are 5
phases to the project life cycle (also called the 5 process groups)—initiating, planning, executing,
monitoring/controlling, and closing. Each of these project phases represents a group of
interrelated processes that must be undertaken and are separate divisions to manage the
deliverables as well as enable the project manager to classify the workload into more manageable
components. The boundaries may or may not be integrated and require different skills and
control and monitoring mechanisms to supervise the overall project stages (PMI, 2008).

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Initiating phase: This project life cycle consists of two separate processes the project charter
consists of the key component that includes business case, project scope, deliverables, objectives,
resources needed, milestone plan and timelines, Cost estimate, risks and issues, and
dependencies. And stakeholder registers that secure approvals from an authorizing stakeholder.
At this phase, those processes are performed to define a new project or a new phase of an
existing project by obtaining authorization to start the project or phase (PMI, 2013).

Planning phase: This process group is where the project infrastructure that will enable you to
achieve your goal within your predetermined time and budget constraints is constructed, initial
with a project management plan, project scope, work breakdown structure, and risk analyses and
risk responses (PMI, 2013). Definition of the work requirements, the definition of the quality and
quantity of work, definition of the resources needed, scheduling of the activities, and evaluation
of the various risks are activities included in this group according to Kerzner (2009).

Executing phase: This is where most of the budget is allocated and most of the project
deliverables are produced. That is when the project plan is put into action that might take weeks,
months, or even years. This phase includes team development, stakeholder engagement, and
quality assurance activities. This process group involves organizing people and resources,
handling stakeholder expectations, as well as assimilating and performing the activities of the
project in accordance with the project management plan (PMI, 2013).

Monitoring and controlling phase: This phase involves comparing the actual progress of the
project against the plan and taking corrective action wherever necessary. This process group
consists of processes required to track, analyze, and orchestrate the progress and performance of
the project; identify any areas in which changes to the plan are required; and initiate the
corresponding changes (PMI, 2013).

Closing phase: This stage is the final phase of the project life cycle that includes one solitary
process that enables to simply check the project is done. It is important to formally close the
project, secure the sign-off, and get approval from the customer, stakeholders, and project
sponsors. This phase might include project delivery, hosting a review meeting, compiling project
records, celebrating or acknowledging the achievement, and formally termination of the project
team.

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2.1.3 Project Management Knowledge areas

According to the PMI (2013), PMBOK Guide, the knowledge areas of project management were
identified by project management defined by knowledge requirements and described in terms of
component processes, practices, inputs, outputs, tools, and techniques. According to PMI, there
are 10 general project management knowledge areas: project integration management, project
scope management, project time management, project cost management, project quality
management, project human resource management, project communications management,
project risk management, and project procurement management, and project stakeholder
management. Based on the study`s objective, the review only focuses on project time and cost
management.

I. Project Time Management

According to the PMBOK Guide, to define the success of a project, you often need to complete
the project on time. The importance of ensuring the work within an individual task progresses
efficiently is a critical message in project time management. The final measure is the success of
the project based on effective control of time management processes, tools, and practices.
Creating and maintaining a realistic project schedule and project plan is the project manager's
primary responsibility for completing the project on time. Therefore, PMI (2013) Project time
Management contains the processes needed to manage the timely completion of a project..

1. Plan schedule management: The process of establishing the policies, procedures, and
documentation for planning, developing, managing, executing, and controlling the project
schedule.
2. Define activities: The process of identifying and documenting the specific actions to be
performed to produce the project deliverables.
3. Sequence activities: The process of identifying and documenting relationships among the
project activities.
4. Estimate activity resources: The process of estimating the type and quantities of material,
human resources, equipment, or supplies required to perform each activity.
5. Estimate activity durations: The process of estimating the number of work periods needed to
complete individual activities with estimated resources.

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 6. Develop schedule: The process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule model.
7. Control schedule: The process of monitoring the status of project activities to update project
progress and manage changes to the schedule baseline to achieve the plan.

II. Project Cost Management

The project management body of knowledge guide (PMBOK) defines cost estimates as a
developed approximation of the monetary resources needed to complete project activities. The
accuracy of cost estimates from the project planning stage to bid calculation can affect the
success or failure of an ICT project. The project budgeting process aggregates the estimated
costs of individual activities or work packages to establish an approved cost base (PMI, 2008).
According to PMI (2013), cost management deals with the process of planning and managing a
project or company budget.

1. Plan cost management: The process that establishes the policies, procedures, and
documentation for planning, managing, expending, and controlling project costs.
2. Estimate costs: The process of developing an approximation of the monetary resources
needed to complete project activities.
3. Determine budget: The process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline.
4. Control costs: The process of monitoring the status of the project to update the project
costs and managing changes to the cost baseline.

2.1.3 Concepts of Project Success

According to Pinto and Slevin (1987), as a project comprise a defined time frame to completion,
a limited budget, and a specified set of performance characteristics, a project is generally
considered to be successfully implemented if it Comes in on-schedule (time criterion); Comes in
on-budget (monetary criterion); achieves basically all the goals originally set for it (effectiveness
criterion) and is accepted and used by the clients for whom the project is intended (client
satisfaction criterion).

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Successfully accomplishing a project requires the effective management of various constrains
and therefore measuring project success is a complex task as success can intangible and
consensus hardly exists. The success of a project and the influencing factors depend on the
nature, the type of activities and the project environment. Therefore, factors affecting success
change from project to project (Muller and Turner 2007).

Pinto and Slevin (1987), identified 10 project success factors which are defined below.

1. Project mission-Initial clearly defined goals and general directions.

2. Top management Support-Willingness of top management to provide the necessary

resources and authority power for project success.

3. Project Schedule/Plan-A detailed specification of the individual actions steps for project
implementation.

4. Client Consultation-Communication, consultation, and active listening to all impacted

parties.

5. Personnel-Recruitment, selection, and training of the necessary personnel for the project
team.

6. Technical Tasks-Availability of the required technology and expertise to accomplish the

specific technical action steps.

7. Client Acceptance-The act of "selling" the final project to its ultimate intended users.

8. Monitoring and Feedback-Timely provision of comprehensive control information at each

stage in the implementation process.

9. Communication-The provision of an appropriate network and necessary data to all key

actors in the project implementation.

10. Troubleshooting-Ability to handle unexpected crises and deviations from plan.

2.1.5 Challenges with project Implementation

Both internal organization factors affecting strategy implementation of project and, also the
external organization factors affecting strategy implementation of project have determine the

12
success of project management. The internal factors are: organizational structure; administrative
systems and leadership style while the external factors are related the government factors
(legality, pricing of materials and others). External forces refer to the changes of environmental
uncertainties outside of the organization. Specifications of environmental context variables are
political, economic, technological, governmental environmental and natural disasters. For the
external factors forcing change, projects have little or no control over the cause it is beyond the
control of the organization (Mellert et al., 2015).

I. External factors that influence project implementation

Regulation and policy: UNICEF report state that the main challenge in project implementation
practice in developing countries is national policy and priority framework of objective make the
project impact low to the beneficiary and demotivate the donor of the project (UNICEF, 1984).
Governmental influence: Difficulty getting support and full cooperation from government
agencies in building awareness and community partnerships project implementation delay by not
getting local administration approval this reduce the project significance in timely manner.

II. Internal factors that influence project implementation

Organizational structure: the project implementation highly influenced by organizational

structure and less corporation within the higher manager influence the project implementation
practice.

Human resource management: Recruitment and Retention of Competent Staff, Inadequate

Human Resource Policies or Procedures, Lack of capacity to manage a diversity of work Force,
Mismatching of employee qualifications with Jobs or Positions, Inadequate HR Management
Skills among Supervisors, Organization program strategies affect staffing are the major factors
that affect project implementation.

Project manager and team competency: that Employee capacity and competency is one of the
challenge in projects implementation. Even though the level of knowledge and experience of a
team influence project implementation there is deficiency of employee with level of experience.

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Fund and financial situation: The financial situations of the local NGOs are also a big challenge
because of the fund provider (donor) is unstable, the management of the fund collected from the
donor and allocation of the fund.

2.2 Empirical Review

2.2.1 Project Time and Cost Management Practice

The Ibbs and Kwak study employed the Berkeley PM Process Maturity Model that is an
adaptation of the Integrated Project Systems assessment tool. The assessment sample comprised
38 companies, each of which finalized the survey assessment tool. This study targeted four
industries: engineering and construction, telecommunications, information systems, and hi-tech
manufacturing. And the scholars revel the overall project management maturity of the 38
companies under the study was 3.26 (of a possible 5), indicating there is a considerable
opportunity to improve project management practices in each of the four industries studied. The
researchers reported that engineering and construction (3.36), hi-tech manufacturing (3.34), and
telecommunications (3.30) demonstrated relatively high project management maturity compared
with information systems (3.06). Also, the researchers completed cross-industry evaluations at
one level of decomposition below aggregate project maturity.

Research was conducted by Tegenu (2018) on assessment of the practice of project management
knowledge areas and challenges in implementing ICT projects in Ethio-Telecom. The finding
revealed that project scope management, project time management, project quality management,
project risk management, project communication and project stakeholders knowledge area are
highly practiced during the implementation of the ICT projects whereas project integration
management, project cost management and project procurement management knowledge areas
are practiced at low level lack of relevant training and procurement delay were the main
challenges during the implementation of the ICT projects. The researcher recommended that the
organization should give special attention to the least practiced knowledge area i.e. project
integration management, project cost management, project human resource management and
project procurement management knowledge areas.

14
According to a research conducted by Hadgu (2018) on the level of project management maturity
in Ethio-Telecom the case of Telecom Expansion Projects through assessing the ten PMBOK’s
project management knowledge areas found out the least and highly matured knowledge areas.
The most mature knowledge areas are project procurement management, project risk
management and Human resource knowledge areas approximately leveled at maturity level 3 and
the least matured knowledge areas are the project time management and project cost
management approximately leveled at maturity level 2. The findings suggests that basic project
processes exist in the company but are not considered an organizational standard and
management supports the implementation of projects management but understanding and
involvement is not consistent / applied to all projects.

Abadir (2011) set out to research on the maturity of project management in the construction
industry in developing countries with a bias towards Ethiopia, whose aim was to identify
problem areas to be prioritized and propose a framework for improvement efforts. He used
primary data collection method to assess the maturity model that could be utilized for the
assessment purpose. Further, he also studied to see if there is a difference in PM maturity,
between different categories of contractors except for Material and Equipment Management
knowledge areas. The research confirmed that knowledge areas of material, procurement; cost,
time, financial and human resource management had shown comparatively higher maturity,
compared with other PM knowledge areas. The research also showed on average the contractor's
PM process maturity is at an informal level and, their PM practice maturity is at a basic level.
This result meant on average the contractors performed the knowledge areas informally without
following structured approach or guidelines, relying solely on the skills and experience of the
project manager or project team; and on average, the contractors were performing only the basic
practices in each knowledge area.

2.2.2 Challenges of Project Time and Cost Management Practice

The success of the project depends on various internal and external factors in the organization. A
study that investigates delay and cost overrun factors within the context of public sector projects
in Pakistan showed that Project delays and cost overrun are common features in public sector
construction projects. The study identifies 48 potential factors from existing literature and semi-

15
structured interviews were used to refine the identified factors into ten categories. A
questionnaire survey was used to establish a hierarchy of factors using descriptive statistics. The
results showed that the major causes of time overruns in public projects were (1) legal issues,
such as court stay orders, land acquisition, relocation of public facilities; (2) technical errors
leading to low-quality drawings, rework, and errors at bidding stage; and (3) Poor project
management. The results of this research show that the most critical reasons for delays in public
sector projects are related to issues and problems beyond the control of a contractor and are more
related to government institutions involved in planning and managing public sector projects.
Nine out of top ten factors in the lists are directly under the control of government organizations,
which are contractually the project owner’s responsibility (Idrees and Shafiq, 2021).

Zadjali, and colleagues presented an empirical study investigating the factors causing project
cost overrun in telecommunications projects in Oman. Using a survey form, data were collected
from 44 project engineers and managers at client and contracting companies. The survey results
showed that there are 14 major factors causing project cost overrun. The most important factors
causing project cost overrun as perceived by contractors only were:

• Improper cost estimation at the beginning of the project;

• Unavailability of the right resources (expertise) to do project cost estimation;
• Changes in the scope of the project by the stakeholders and end users;
• Customer requirements and project scope not being clear;
• Poor user input and requirements gathering;
• The use of the low bid procurement method;
• Lengthy tendering process; and
• Unavailability of change control process.

None of these factors is unique to telecommunications projects. i.e., they could affect any types
of projects. However, lengthy tendering process has not be identified as a major cause of project
cost overrun in any of the previous studies. Moreover, this study investigates the association
between company size in terms of number of employees and causes of project cost overrun. The
results show that there is no strong evidence to suggest that the causes of cost overrun differ
significantly according to company size (Zadjali, Bashir, & Maqrashi, 2016).

16
Negalign (2020) conduct a study on determinants of cost overrun on public construction project:
A case study in Gamo Zone Arba Minch Town. The results of the study were indicated that socio
political, economic, and managerial, timeliness of payment and financial factor and construction
techniques and design changes were identified as causes of cost overrun in public construction
project. Negalign (2020) recommended that the concerned body should be provide a good
planning and scheduling are continuing process during construction and match with the resources
and time to develop the work to avoid cost overrun. The concerned body should revise the bid
document such as technical specification during bill of quantities and the design of the project in
a good way.

A research conducted by Medhin (2019) in the project management practices of telecom

expansion project and their effect on project performance in Ethio-telecom identified various
factor that influence the project performance. Lack identifying possible risks and detail scope
statement preparation at planning phase, lack of timely escalation of problems impeding project
team’s performance to execute the project and regularly updating project schedules at execution
phase, lack of proper identification and documenting of lessons learned at closing phase were
found the major challenges. With regard to implementation challenges, Lack of proper
coordination with stakeholders, Lack of proper fund management in the project, Government
Policy challenges, Project communication and integration management problems were identified
as highly challenging factors.

2.3 Conceptual Framework

The framework for this study was developed based on approaches and concepts identified in the
literature review. The frame work shows that major factors that influence project time and cost
management practice level.

17
 Project-related
Factors

Economic and
Finance related
factors
Project Time and
Cost Management
Managerial related
factors Practice

Political related
factors

Human related
factors

Figure 2.1: Conceptual framework of the study

Source: Adopted from (Zadjali, Bashir, & Maqrashi, 2016; Idrees, and Shafiq, 2021; Negalign,
2020).

18
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

This chapter focuses on the research design, research approach, and methodology. It describes
the research methods, source of data, data collection method, data analysis technique, sampling
design, and validity test employed to carry out the research.

3.1 Research Approach and Design

3.1.1 Research Approach

The quantitative approach was used to assess the level of project time and cost management
practice in Telecom expansion projects. This approach helps to collect more reliable and
numerical data. The researcher collected numeric data that can be analyzed and interpreted using
descriptive analysis to show the relationship between the variables.

3.1.2 Research Design

The design of this research is a type of descriptive survey research which tries to assess project
time and cost management in Telecom expansion projects. This design refers to a set of methods
and procedures that describe variables. It involves gathering data that describe events and then
organizes, tabulates, depicts, and describes the data. Descriptive studies portray the variables by
answering who, what, and how questions (Babbie, 2002). The method is chosen since it is more
precise and accurate and it involves the description of events in a carefully planned way.

3.2 Study Area

Ethio-telecom, previously known as the Ethiopian Telecommunications Corporation (ETC), is an

Ethiopian telecommunication company serving as the major internet and telephone service
provider. Ethio-telecom is owned by the Ethiopian government and maintains a monopoly over
all telecommunication services in Ethiopia. Based in Addis Ababa, it is one of the "Big-5" group
of state owned corporations in Ethiopia, along with Ethiopian Airlines, the Commercial Bank of
Ethiopia, Ethiopian Insurance Corporation, and the Ethiopian Shipping Lines.

19
As a key player in the development of Ethiopia, Ethio-telecom born on 29th November 2010,
with the ambition of making a paradigm shift in the development of telecom sector to support the
steady growth of our country, within the Growth and Transformation Plan (GTP), with ambition
objectives for the year 2015. The Ethiopian government has decided to transform the
telecommunication infrastructure and services to world class standard (Ethio-telecom broacher).

As a company, whose vision is ―To be world-class telecom service provider‖, there is always
business strategy changes, goal shifts and compelling search to go along with worldwide
technological advancement and competition with the new privatization law of telecom services.
In order to achieve strategic objectives of the company and support development of the country,
Ethio-telecom has continually implemented different types of programs and projects.

Currently there are around 10 programs and 38 projects

 Wireless UMTS & LTE New Build

 Wireless UMTS New Build
 Wireless LTE Layering and UMTS CE & Board Expansion
 Fixed Access Network
 International and national network PAV Improvement
 PAV Improvement for BTS and Fixed Access Network
 Power and tower Upgrading
 Modernization
 Pilot(Trial)
 IS-BSS and OSS

According to the current structure of the company there are twelve divisions which are
responsible for different major tasks of the company. Project Management Office is among those
twelve divisions and is responsible for handling the projects undertaken in the company. The aim
of the division is to achieve all of the projects goals and targets while considering the
preconceived project constraints (cost, time and quality standard) and also to optimize the
allocation and integration of inputs necessary to meet pre-defined objective.

20
3.3 Research Population and Sampling

3.3.1 Target Population

All employees in project department of Ethio-Telecom who are currently working in Ethio-
Telecom head office were the source population. Sampling units were the target population
elements available for selection during the sampling process. The Sampling units for this study
were all employee in project department who are currently working in Ethio-Telecom head
office during the sampling time. All employees in project department who are currently working
in Ethio-Telecom head office were active during data collection period and selected by stratified
random sampling design from source population was the sample of the study.

3.4.2 Sampling Size

The sample size was calculated by using the formula for single population proportion for cross
sectional survey with the following assumptions: The estimated proportion is 50% (since there is
no previous study done in the same population), the margin of error 5%, confidence interval 95%
and non-response rate 10%. Data collected from human resource office of Ethio-Telecom the
current number of employees is 336. The required sample size (n) was calculated by using the
Topman’s formula;

( )
( ) ( )( )

Where

n′ = sample size with finite population correction,

N =population size,
Z = statistic for a level of confidence (Z = 1.96),
P = expected proportion (in proportion of one), (P = 0.5), and
d = precision (in proportion of one), (d = 0.05).

( ) ( )( )
( ) ( ) ( ) ( )( )

21
Accordingly, the calculated sample size was 179. By considering 10% non-response rate (18),
the total sample size was 197 employees in Ethio-Telecom head office Network and IPED
department.

3.4.3 Sampling Technique

The sampling frame for this study incorporates a complete list of all employees in project
department of Ethio-Telecom located in Addis Ababa head office. Currently, the total number of
employees is 336. To manage easily and collect needed information and managed data the
researcher will use stratified random sampling design. According to this, the target population
will be divided into subgroups (strata) and randomly a sample will be taken from each strata of
the population that include Chief Technical Officer, Network and IPED Directors,
Network/IPED and PMO Managers, Network and IPED/Specialists/Supervisors, Network and
IPED Professionals/Technicians. So, specifically the study was used proportional stratified
random sampling design. Proportional stratified random sampling is stratified sample in which
the number of sampling units drawn from each stratum is in proportion to the population size of
that stratum (Zikmund, et al., 2009).

Table 3.1 Target Population Distribution by Position Strata

SN Working Level Head Count (No.)

1 Chief Technical Officer 1

2 Network and IPED Directors 4

3 Network/IPED and PMO Managers 15

4 Network and IPED/Specialists/Supervisors 30

5 Network and IPED Professionals/Technicians 286

Total (N) 336

Source: Ethio-Telecom Charter (2019)

22
The proportional stratified random sampling will be used and hence 1 Chief Technical Officer, 1
Network and IPED Directors, 2 Network/IPED and PMO Managers, 3 Network and
IPED/Specialists/Supervisors, and 28 Network and IPED Professionals/Technicians were
included as sample as shown on Table 3-3 below

Table 3.2: Stratified Random Sampling Proportion

SN Working Level Head Strata Size Strata Sample Size

Count Calculation (ni)
(Ni) [(n/N)*Ni=ni]

1 Chief Technical Officer 1 (197/336)*1 1

2 Network and IPED Directors 4 (197/336)*4 2

3 Network/IPED and PMO Managers 15 (197/336)*15 9

4 Network and IPED/Specialists/Supervisors 30 (197/336)*30 18

5 Network and IPED 286 (197/336)*286 167

Professionals/Technicians
Source: Ethio-Telecom Human Resource Office (2022)

3.4 Data Source and Method of Data Collection

3.4.1 Data Source

The researcher used both primary and secondary data as a source of data to conduct this research.
Primary data was the data collected from key informants (project managers and core project
team’s staffs) for distribution and collection of questionnaires to targeted respondents, researcher
will distribute on hand and email. Secondary data was collected from company project
management contract documents, reports and all related document so other than confidential
documents that does not legitimize the company policy and procedure. It was also include
previous studies, research papers, publications, reports, journals, and internet information.

23
3.4.2 Data Collection Method

To collect data the researcher used mainly a 1 to 5-point Likert Scale questionnaire format, with
a 1 being the lowest level practice and a 5 being the highest level were distributed to randomly
selected telecom expansion projects staffs. the questionnaire has three parts to collect data on the
socio-demographic, the level of project time and cost management practice, and the possible
challenges of project time and cost management.

The second section of questionnaires which measures the level of project time and cost management
practice were adopted from Sukhoo, Barnard, Eloff and Poll (2005) developed using PM Solutions’
project management maturity assessment. These types of questionnaire format are a common tool to
collect data for assessing project management maturity of a company and researchers such as
Sukhoo, Barnard, Eloff and Van der, (2005), Ibbs and Kwak (2002), Beset (2007) and Girma (2015)
used this tool in conducting study on the maturity assessment. The possible challenges of project
time and cost management part of the questionnaire were developed by the researcher by
integrating the finding of various literatures.

3.5 Data Analysis Techniques

All results from the collected questionnaire responses were analyzed, summarized, and
interpreted by the researcher for the result. Data entry was done by an experienced data clerk at
the data collection site. The researcher done the data cleaning, processing, preliminary analysis
and final write-up of the study. The data was entered in MS excel-10 spread sheet, analyzed and
interpreted using descriptive statistical measures like frequency and percentages as appropriate.
SPSS version 23 (SPSS Inc, Chicago, IL, USA) software program was used to assess the project
time management and cost management to describe the mean, weighted average, standard
deviation and one sample t–test of the actual performance status of project time and cost
management in the Ethio-Telecom expansion project, and the challenges faced by this company
while practicing project time and cost management.

24
3.6 Validity and Reliability

3.6.1 Validity

Validity is the degree to which a test measures what it purports to measure (Creswell, 2009). The
validity of the questionnaire data depends on a crucial way the ability and willingness of the
respondents to provide the information requested. One way to ensure the validity was by having
simple, straight forward and objective questions in the questionnaire. A pilot study was
conducted to refine the methodology and test instrument such as a questionnaire before
administering the final phase. Ten questionnaires were tested on potential respondents to make
the data collecting instruments objective, relevant, suitable to the problem. Issues raise by
respondents was corrected and questionnaires were refined. Besides, proper detection by an
advisor is also taken to ensure the validity of the instruments.

3.6.2 Reliability of Instruments

Reliability of instruments refers to a measure of the degree to which research instruments yield
consistent results (Mugenda & Mugenda, 2003). The internal consistency or reliability of the
measurement items under each variable or construct is an important test of sound measurement.
For this study Cronbach’s alpha was used to assess the internal consistency of variables in the
research instrument. Before distributing the questionnaire to all respondents, 10 questionnaires
were distributed for pilot test to make sure the questions are clear and reliable. Its reliability test
of alpha cronbach has been found 0.752 which is above the minimum requirement according to
Nunnally (1978) Cronbach’s alpha should be 0.700 or above.

3.7 Ethical Consideration

The researcher assures the adherence to ethical standards by doing their research ethically. This
includes collecting information with informed consent, voluntary participation, confidentiality,
and keeping the anonymity of respondents. During data collection, each respondent was
informed about the purpose, scope, and expected outcome of the research. Anyone who might
not be willing to participate was excluded from the study. In order to establish anonymous
linkage, codes were used. The participant’s name and office section were not revealed.

25
 CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 Introduction

In this chapter, the collected data from the Ethio-Telecom employees are summarized and
analyzed in order to realize the ultimate objective of the study. The analysis of participant socio
demographic characteristics is presented first in this chapter and followed by an analysis of the
employee evaluation of project time and cost management practice. Then result of factors that
challenges the project time and cost management practice will be presented. Finally, the major
findings of the study will be discussed with the available literatures and presented.

4.2 Response Rate and Demographic Data

Table 4.1: Frequency of Demographic Characteristics of respondents (N=153)

Variables Categories Frequency Percent

Gender Program manager 3 1.96

Project specialist 5 3.27

Project manager 16 10.46

Project professional 129 84.31

Educational Level High school 8 5.23

Diploma 22 14.38

Degree 81 52.94

Master 41 26.80

Doctor of Engineering 1 0.65

Years of working Below 1 Year 3 1.96
experience in total From 1 – 5 Years 32 20.92

26
 From 6 – 10 Years 96 62.75
From 11 – 15 Years 13 8.50
Above 15 Years 9 5.88
Years of working Below 1 Year 8 5.23
experience in the From 1 – 5 Years 56 36.60
company From 6 – 10 Years 74 48.37
From 11 – 15 Years 11 7.19
Above 15 Years 4 2.61

A total of 153 employees in in Ethio-Telecom head office Network and IPED office participated
in the study with a response rate of 77.66%. A total of 197 sets of questionnaires were distributed
to the potential respondents and a total of 153 usable questionnaires were collected. SPSS
version 23 was used for the analysis. The analysis had the objective of measuring practice level
of project time and cost management.

The depicted table above shows the socio-demographic and general characteristics of the study
participants which includes their Position/role at the project, educational level, and years of
working experience. As shown in the table majority of participants 129 (84.31%) were project
professional. In addition, the table shows that participants of this study have different
academic levels. Majority 81 (52.94%) of respondents were first degree holder. The rest were 41
(26.8%) of them has Master’s degree, 22 (14.38%) of them have a diploma certificate, 8 (5.23%)
of them were secondary level complete, and the remaining 1 (0.65%) employee have Doctor of
Engineering.

Regarding their total working experience as project manager /project expert/project specialist/
professional majority of participants were well experienced, 118 (77.13%) of them have an
experience above 5 years. With respect to working experience in Ethio-Telecom, 74 (48.37%) of
respondents have experience between 6 to 10 years followed by those with experience between 1
to 5 years 56 (36.6%). Few respondents have experience above 15 years 4 (2.61%) and below 1
year 8 (5.23%).

27
4.3 Project Time and Cost Management

A questionnaire was used as a data collection method. The scores from this scale represent the
respondents reported their evaluation of project time and cost management practice. The items
on the questionnaire include employee's responses to the questions concerning project time and
cost management practice. For a response format, the 5-point Likert scale was utilized, with
anchors of frequency (1=Very low, 2=Low, 3=Moderate, 4=High and 5= Very high) for project
time and cost management practice.

In order to identify project time and cost management practice level in Ethio-Telecom expansion
project, descriptive statistics mean and standard deviation have been used. The mean indicates to
what extent the sample group averagely agrees or disagrees with the different statements. Mean
value shows the average of all employees’ responses on each dimension of project time and cost
management practice, the higher the mean the more the respondents agree with the statement
while the lower the mean the more the respondents disagree with the statement. The descriptive
statistics computed in for both project time and cost management practice by analyzing the
employees’ responses is summarized in the following table 4.2.

Table 4.2: Descriptive Statistics for project time and cost management (N=153)

No. Categories Mean SD

1. Establishing the policies, procedures, and documentation … 3.74 .6231

2. Identifying the specific activities that must be performed… 3.49 .5622

3. Identifying and documenting relationships …. 3.65 .5824

4. Estimating the type and quantities of material, human

3.68 .6491
resources, equipment, or supplies …

5. Estimating the number of work periods … 3.51 .5314

6. Analyzing activity sequences, durations … 3.62 .4811

7. Monitoring the status of project activities … 3.6 .5972

Project Time Management 3.61 .5752

28
1. Establishes the policies, procedures, and documentation for
… project costs. 2.68 0.4871
2. Developing an approximation of the monetary resources … 2.13 0.4117
3. Aggregating the estimated costs of individual activities ... 1.78 0.4016
4. Monitoring the status of the project to update the project
costs and managing changes to the cost baseline 2.25 0.4228
Project Cost Management 2.21 .431

The total scores represent participants’ evaluation of project time and cost management practice
and the major factors that influence these practices. As it is observed in table 4.2, the calculated
mean score of project time management practice were 3.61 which indicate time and schedule is
monitored and managed to keep the project on the track in implementing projects are practiced at
high level rate. Though, table 4.2 indicate that the calculated mean scores for project cost
management is 2.21 which implies that project cost management in implementing projects was
practiced at low level of rate.

One-sample t-tests were run with the test value of 3 (Ho: μ2-μ1 = 3) to test the significance of the
total score. Results of the one-sample t-test indicated that there is a significant difference
between the respondents total scores mean of project time management and the expected average
of mean (M = 3), t(152) = 3.8, p < .001. This shows that participants reported the high level rate
practice in project time management in Ethio-Telecom expansion projects.

One-sample t-tests were also run with the test value of 3 (Ho: μ2-μ1 = 3) for project cost
management practice. Results of the one-sample t-test indicated that there is a significant small
difference between the respondents total scores mean of project cost management and the
expected average of mean (M = 3), t(152) = 6.2, p < .001. The lowest mean score of respondent
showing respondents reported a strong agreement with Ethio-Telecom Projects is not performing
cost management as expected.

29
4.4 Challenges of Project Time and Cost Management

Under this subsection factors that are presumed as obstacles for successful implementation of
project time and cost management are listed in table 4.3 below and respondents were asked to
rate the level of impact or challenge on implementation practices and analyzed using weighted
average. The challenges were rated as in five levels starting from least (the lowest in challenge)
to extreme (the highest in challenge) in the following way: 1= Least, 2= Lower, 3= Moderate, 4=
Higher, 5= Extremely.

Table 4.2: Descriptive Statistics for project time and cost management (N=153)

No. Statement Weighted average SD

A. Political related factors 3.55 1.024

1. Lack of Policy and regulations 3.45 1.143

2. Political unrest in the country 4.42 1.154

3. Undue influence by political personnel 2.62 1.105

4. Transition/change of government 3.69 1.024

B. Economic and Finance related factors 3.88 .958

5. Fluctuation in raw material price 3.63 1.142

6. Cash flow difficulties by clients 4.25 1.385

7. Fluctuations in exchange rate of currency 4.38 1.238

8. Poor financial control on site 3.24 1.157

C. Managerial related factors 2.03 1.274

9. Delays in Decision making process 1.98 1.094

10. Poor project management Leadership Style 1.86 1.085

11. Frequent change of the management body 2.43 1.225

30
12. Bureaucratic behavior in the organization 2.21 1.135

13. Misuse of authority 1.68 1.178

D. Project-related Factors 3.14 .927

14. Increase in scope of work 2.84 .994

15. Unrealistic time schedule imposed in the contract 3.93 .985

16. Difference in perception of contract clauses 3.12 .976

17. Conflict between owner and other parties 3.24 1.125

18. Ill-defined /ambiguous specifications 2.57 1.197

E. Human related factors 2.66 1.053

19. Lack of co-ordination among stake holders 3.65 1.152

20. Shortage of manpower 2.13 .955

21. Low productivity of skilled workers 2.21 1.065

Factors that are presumed as having influence on the practice of project time and cost
management are listed in table 4.2 above and respondents were asked to rate the level of
influence on implementation practices. Factors that are considered as highly challenging by
majority of the respondents were: Political unrest in the country (4.42), Fluctuations in exchange
rate of currency (4.38), Cash flow difficulties by clients (4.25), Unrealistic time schedule
imposed in the contract (3.93), and Lack of co-ordination among stake holders (3.65).

On the other hand some factors are considered as relatively less challenging on practices. These
are: all Managerial related factors (2.03) such as Misuse of authority, Poor project management
Leadership Style, Delays in Decision making process, Bureaucratic behavior in the organization,
and Frequent change of the management body; Shortage of manpower (2.13) and Low
productivity of skilled workers (2.21). Overall Economic and Finance related factors (3.88), and
Political related factors (3.55) were highly challenging factors; and Managerial related factors
(2.03) and Human related factors (2.66) were less challenging factors for the practice of practice
of project time and cost management.

31
4.4 Discussion

This study was conducted to assess the project time and cost management practice and its
challenges in Ethio-Telecom expansion. In order to achieve the objectives of these study 153
employee of the organization at Ethio-Telecom head office in Network and IPED department.
Structured questionnaire were prepared by the researchers using related literature and adopted
instrument as data collection instrument. In this part of the study the findings of the study will be
discussed with the available literatures and presented as follows.

The finding of the current study concerning the project time and cost management practice was
in agreement with various literatures which Telecom expansion project management practices.
According to the results obtained in this study, mean value shows that average of responses of
employees on project time management were higher than the expected mean score 3 which
implies that Ethio-Telecom expansion projects were managed well to the timely completion of
the project. However, project cost management was lower than the expected average of mean 3.0
which implies that project cost management processes was practiced at low level of rate.

This observation is consistent with findings of a study done in Pakistan showed that
Project delays and cost overrun are common features in public sector construction projects
(Idrees and Shafiq, 2021). In Ethiopia, study conducted by Tegenu (2018) on assessment of the
practice of project management knowledge areas and challenges in implementing ICT projects in
Ethio-Telecom. The finding revealed that project scope management, project time management,
project quality management, project risk management, project communication and project
stakeholders knowledge area are highly practiced during the implementation of the ICT projects
whereas project integration management, project cost management and project procurement
management knowledge areas are practiced at low level lack of relevant training and
procurement delay were the main challenges during the implementation of the ICT projects.

The results regarding the challenges of project time and cost management, the result revealed
that Economic and Finance related factors, and Political related factors were highly challenging;
and Managerial related factors and Human related factors were less challenging factors. This
result is consistent with findings of a study done Negalign (2020) conduct a study on
determinants of cost overrun on public construction project: A case study in Gamo Zone Arba

32
Minch Town. The results of the study were indicated that socio political, economic, and
managerial, timeliness of payment and financial factor and construction techniques and design
changes were identified as causes of cost overrun in public construction project. The result also
corresponds to the result of other researchers that showed the major challenges in project time
and cost management (Medhin, 2019; Zadjali, Bashir, & Maqrashi, 2016; Idrees and Shafiq,
2021). In these literatures, it was reported that most critical reasons for delays in public sector
projects are related to issues and problems beyond the control of a contractor and are more
related to government institutions involved in planning and managing public sector projects.
Nine out of top ten factors in public sector projects in Pakistan are directly under the control of
government organizations, which are contractually the project owner’s responsibility (Idrees and
Shafiq, 2021). Lack of proper coordination with stakeholders, Lack of proper fund management
in the project, Government Policy challenges, Project communication and integration
management problems were identified as highly challenging factors by Medhin (2019).

33
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

In this chapter of the study, summary of findings, conclusion drawn, recommendations and
limitation of the study are stated. The purpose of the study was to assess the project time and cost
management practice in Ethio-Telecom expansion.

5.1 Summary of Findings

 Majority of participants were project professional, first degree holder, well experienced
in as project manager /project expert/project specialist/ professional have an experience
above 5 years and worked in Ethio-Telecom for between 6 to 10 years.
 The calculated mean score of project time management practice were 3.61 which have
statistical significant difference with the expected average of mean 3.0. This shows that
participants reported the high level rate practice in project time management in Ethio-
Telecom expansion projects.
 The calculated mean scores for project cost management is 2.21 which have statistical
significant difference with the expected average of mean 3.0. This implies that project
cost management in implementing projects was practiced at low level of rate.
 The finding revealed that Economic and Finance related factors (3.88), and Political
related factors (3.55) were highly challenging factors; and Managerial related factors
(2.03) and Human related factors (2.66) were less challenging factors for the practice of
practice of project time and cost management.
 Specific factors that are considered as highly challenging by majority of the respondents
were Political unrest in the country (4.42), Fluctuations in exchange rate of currency
(4.38), Cash flow difficulties by clients (4.25), Unrealistic time schedule imposed in the
contract (3.93), and Lack of co-ordination among stake holders (3.65).
 All Managerial related factors (2.03), Shortage of manpower (2.13) and Low productivity
of skilled workers (2.21) were specific factors which are considered as relatively less
challenging on the practice of project time and cost management.

34
5.2 Conclusions

This is a descriptive design with quantitative approach that assesses the project time and cost
management practice in Ethio-Telecom expansion. A total of 153 employees in Ethio-Telecom
head office Network and IPED department were participated in the study. Structured
questionnaire were prepared by the researchers using related literature and adopted instrument as
data collection instrument. Both descriptive and inferential statistics were used as data analysis
method.

According to the research result, the calculated mean score of project time management practice
were 3.61 which have statistical significant difference with the expected average of mean 3.0.
This shows that participants reported the high level rate practice in project time management in
Ethio-Telecom expansion projects. This implies that Ethio-Telecom expansion projects were
managed well to the timely completion of the project which includes the process of establishing
the policies, procedures, and documentation for planning, developing, managing, executing, and
controlling the project schedule, the process of identifying and documenting the specific actions
to be performed to produce the project deliverables. The calculated mean scores for project cost
management is 2.21 which have statistical significant difference with the expected average of
mean 3.0. This implies that project cost management processes involved in estimating, budgeting
and controlling costs so that the project can be completed within the approved budget was
practiced at low level of rate.

Regarding the challenges of project time and cost management, the result revealed that
Economic and Finance related factors, and Political related factors; specifically Political unrest
in the country, Fluctuations in exchange rate of currency, Cash flow difficulties by clients,
Unrealistic time schedule imposed in the contract, and Lack of co-ordination among stake
holders were highly challenging. Managerial related factors and Human related factors were less
challenging factors for the practice of practice of project time and cost management. All
Managerial related factors, Shortage of manpower and Low productivity of skilled workers were
specific factors which are considered as relatively less challenging on the practice of project time
and cost management.

35
5.3 Recommendations

Having analyzed, discussed and interpreted the data collected in this study, the researcher
forwarded the following recommendations.

 The organization should give special attention to project cost management practice since
it was practiced at low level of rate.
 Ethio-telecom should properly plan based on a scientific method of project management
for its expansion project implemented in order to solve the problem of unrealistic time
schedule imposed in the contract that will help as a reference during project execution.
 Lack of proper coordination with stakeholders was found as one basic challenge in
project time and cost management practice and Ethio-telecom should develop effective
and accurate coordination and communication culture with its stakeholders. Some of the
most common key stakeholders of Ethio-telecom in network expansion projects are
Ethiopian electric power corporation, Ethiopian water and sewerage authority, Ethiopian
road authority, government, service users etc.
 Since the political system and economic factors, that have impact on project time and
cost management practice, are mainly related with the government policy and law
enforcement, Ethio-Telecom higher officials should adopt strategies to deal with external
challenges.
 Further research can be conducted on identifying the root causes or factors associated to
low level of project cost management practices of the company.

36
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 Appendices

APPENDIX A

QUESTIONNAIRE FOR STUDY

ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE

GRADUATE PROGRAM

QUESTIONNAIRE FOR STUDY

TITLE OF THE THESIS “PRACTICE OF PROJECT TIME AND COST

MANAGEMENT AND ITS CHALLENGES IN ETHIO TELECOM EXPANSION
PROJECTS‖

My name is Shimelis Dessalegn. I am a Master’s of Project Management student at Addis Ababa

University School of Commerce. The purpose of this questionnaire is to collect data in order to
assess the project time and cost management practice level in Ethio-telecom Expansion Project.

I Kindly request your cooperation in filling the questionnaire as your genuine, complete, and
timely responses are crucial for the success of my study. Besides, I would like to assure that the
data collected using this questionnaire is purely for academic purpose and your responses will be
held confidentially and anonymously. I also sincerely request you to respond to the questions as
honestly as possible and return the completed questionnaires. Knowing that your time is
valuable, please take few minutes of your time to complete the questionnaire.

Thank you in advance for your committed cooperation!

Yours Sincerely
Thank you for your cooperation
By: Shimelis Dessalegn
Mobile 09115-5197
Advisor: Dr. Tenkir S. (Ph.D.)
General Instruction and information:

Section I includes demographic of general information.

Section II includes Project Time and Cost Management

Section III includes The Possible Challenges of Project Time and Cost Management

Direction:

This survey asks for your perception and experience about the project time and cost management
practice level in Ethio-telecom Expansion Project. Because it asks for your judgment there is no
right or wrong answer. Please respond based on your judgment regardless of what others expect or
what is socially acceptable.

Please attempt to answer all questions.

Section I: General Information

1. Position/role at the project

Program manager Project manager
Project specialist Project professional
2. Your highest level of education
High school Master
Diploma Doctor of Philosophy
Degree
3. Years of working experience as project manager /project expert/project specialist/ professional
Below 1 Year From 11 – 15 Years
From 1 – 5 Years Above 15 Years
From 6 – 10 Years
4. Years of working experience in the company
Below 1 Year From 11 – 15 Years
From 1 – 5 Years Above Years
From 6 – 10 Years
Section II: Project Time and Cost Management Practice

Please mark (X) for the five-point Likert scale question that best describes how you perceive the
project time and cost management implementation practices in Ethio telecom Expansion Project,
where: 1=Very low, 2=Low, 3=Moderate, 4=High and 5= Very high

No. Statement Level of Agreement

A. Project Time Management 1 2 3 4 5

1. Establishing the policies, procedures, and documentation for

planning, developing, managing, executing, and controlling the
project schedule.

2. Identifying the specific activities that must be performed to

produce various project deliverables

3. Identifying and documenting relationships among the project

activities.

4. Estimating the type and quantities of material, human resources,

equipment, or supplies required to perform each activity.

5. Estimating the number of work periods needed to complete

individual activities with estimated resources.

6. Analyzing activity sequences, durations, resource requirements,

and schedule constraints to create the project schedule model.

7. Monitoring the status of project activities to update project

progress and manage changes to the schedule baseline to achieve
the plan.
B. Project Cost Management 1 2 3 4 5

1. Establishes the policies, procedures, and documentation for

planning, managing, expending, and controlling project costs.
Developing an approximation of the monetary resources needed to
complete project activities.
2.

Aggregating the estimated costs of individual activities or work

packages to establish an authorized cost baseline.
3.

4. Monitoring the status of the project to update the project costs and
managing changes to the cost baseline

Section III. Challenges of Project Time and Cost Management

The statements below refer to the possible challenges that influence project time and cost
management practices. Please rank the factors based on your experience to express how much it
influenced project time and cost management implementation practices towards its success in
Ethio telecom Expansion Project by putting tick (√) mark on the space below the options
provided.

1= Least, 2= Lower, 3= Moderate, 4= Higher, 5= Extremely

No. Statement Level of Agreement

A. Political related factors 1 2 3 4 5

1. Lack of Policy and regulations

2. Political unrest in the country

3. Undue influence by political personnel (Political interference)

4. Transition/change of government
B. Economic and Finance related factors

5. Fluctuation in raw material price

6. Cash flow difficulties by clients

7. Fluctuations in exchange rate of currency

8. Poor financial control on site

C. Managerial related factors

9. Delays in Decision making process

10. Poor project management Leadership Style

11. Frequent change of the management body

12. Bureaucratic behavior in the organization

13. Misuse of authority

D. Project-related Factors

14. Increase in scope of work

15. Unrealistic time schedule imposed in the contract

16. Difference in perception of contract clauses

17. Conflict between owner and other parties

18. Ill-defined /ambiguous specifications

E. Human related factors

19. Lack of co-ordination among stake holders (owner, consultant,

contractor, and govt. departments)

20. Shortage of manpower

21. Low productivity of skilled workers

Thank you very much for your cooperation!