ADDIS ABABA UNIVERSITY

COLLEGE OF TECHNOLOGY AND BUILT ENVIRONMENT

SCHOOL OF CIVIL & ENVIRONMENTAL ENGINEERING

Contract, Specification and Quantity Survey

(CENG 4231)

CHAPTER-1
General Introduction
October, 2025
(Derese B.)
1. Construction Project
 A construction is a process of constructing something by man for
one purpose or another. It may be a road,
road bridge,
bridge a dam,
dam a dwelling
place,
place an airport,
airport a commercial building,
building etc.

 In planning for the various types of construction, the methods of

procuring professional service, awarding construction contracts, and
financing the constructed facility can be quite different.

 The broad spectrum of constructed facilities may be classified into

four major categories, each with its own characteristics:

A. Residential Housing Construction:

B. Institutional and Commercial Building Construction
C. Specialized Industrial construction
D. Infrastructure and heavy construction
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2. Construction Industry
 Construction Industry (CI) is an industry which is involved in the
planning, execution and evaluation of all types of civil works.
 Construction Industry can be categorized into three major sectors:
i. Transport and Communication Sector - Road, Railway, Airway,
and Telecommunication related physical works.
ii. Water and Energy Works – Hydropower development,
transmission lines, wind power, irrigation projects.
iii. Buildings and Other Physical Infrastructures.
Infrastructures

 CI is among the leading industry in producing employment and

contribute to the over all national development.
 It is the most important enabler for social, economic and political
development of countries.

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2. Construction Industry
 CI specially in developing countries like Ethiopia consumes much of
the national budget.
 The global construction market estimates about $11.39 trillion
budget is allocated for the CI in 2024 and projected to be
$16.11trillion by 2030.
The main driving factors are:-
 Smart Construction technologies,
 Internationalization and
 China's Influence
 The government of Ethiopia allocated 125.2 billion birr to the Urban
Development and Construction sector representing 6% of the total
budget and a 31% increase from the previous year. 5
2. Construction Industry
 The fact that the CI has a significant impact on the national budget
of a country specifically for least developing countries like Ethiopia,
because projects are:
 Inter-Sectoral
 Demands huge capital budget
The CI significantly impacts a country's economy because its projects
have strong inter-sectoral linkages:
 Creating demand for materials, services, and labor from other
sectors,
 Generates employment, and
 Contributes to Gross Domestic Product (GDP

The completion of construction projects, such as infrastructure and

housing, provides the necessary physical structures and facilities
for other industries to operate, further amplifying its economic role.

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2. Construction Industry
 Nature of Construction Industry:
 Requires big capital investment thus is highly affected by the
economy of the nation.
 Construction is a team output and requires motivated and
skilled workers.
 Construction uses technology and equipment

 Uniqueness of Construction Industry:

 Fragmented Industry
 Long production cycle
 Transient organization nature
 Unpredictable work load
 Subject to Environmental Impact
 High Risk and uncertainty

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 3. The Life Cycle of Construction Project
 The project life cycle of a construction project may be viewed
as a process through which a project is implemented from
cradle to grave.
Definition of
project objectives
and scope

Fulfillment
Conceptual plan
of useful
or preliminary
life
design

Acceptance of Plans and

facility specifications

Completion
of 8
construction
3. The Life Cycle of Construction Project
 The life cycle of a construction project involves several
structured phases. In includes:-

 Initiation (Pre-Design)
 Planning (Design & Preconstruction)
 Procurement
 Execution (Construction)
 Performance and Monitoring (Control)
 Closure (Post-Construction)

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4. Main Parties in Construction Project
 The practice of planning,
planning designing,
designing constructing,
constructing and operating a
facility is most usually a collective effort of different groups of
professionals and trades.
 Depending on the size,
size complexity,
complexity and purpose of a particular
construction project, the project team may include:
 A client or an owner: Individuals, government, real estate
developers etc.
 Financial institutions or other investors that provide the funding
 Local planning and code authorities
 Consultants or Licensed architects and engineers who provide
design work and prepare construction documents
 Contractors who provide construction services and install systems
 Marketing or leasing agents
 Facility managers who are responsible for operating the facility.

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4. Main Parties in Construction Project

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5. Resource for the construction Industry
 The following resources are vital for construction industry:
Human Resources (Labor or Workmen)
Financial Resources ( Fund)
Information Resources
Physical Resources ( Materials, Equipment and Other
Assets)
Services and Management

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6. Construction Project Management Process
 Project management is the Planning,
Planning Organizing,
Organizing Monitoring and
Controlling of all aspects of a project, to achieve the project’s
goals.

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[Link] Ethiopian Construction Industry
6.2 Current status of the construction sector

Ethiopia's construction sector is booming, contributing 21% to the

GDP, with significant growth projected due to large-scale
infrastructure projects in housing, transport, and energy sectors.

 Current status of the construction industry is distinguished by:

i. Inadequate co-ordination of planning between the industry and
infrastructure programs in the various sectors of the economy;
ii. Heavy dependence on foreign resources such as materials,
equipment and expertise, which continue to be supplied to a
major extent by foreign consultants and contractors;
iii. Weak Local contractor’s Capacity
iv. inadequate and ineffective organizations representing the
interests of contractors, consultants and engineers;

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6. The Ethiopian Construction Industry
6.2 Current status of the construction sector
vii. inadequate numbers of qualified and experienced personnel, at
all levels:
viii. inadequate relevant local construction regulations and
standards
ix. inadequate consideration given to the use of local resources
(including community participation in labor-based works); and
x. little consideration given to the concept or cost of maintenance
as a component of investment costs.
xi. Lack advancement in technology

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6. The Ethiopian Construction Industry
6.2 Current status of the construction sector
 The general state of the domestic construction industry in
Ethiopia is characterized by the following five major deficiencies:

I. Inadequate capital base;

II. Old and limited numbers of construction
machineries;
III. Lack of proper planning
IV. Deficiencies in technical, managerial, financial and
entrepreneurial skills; and
V. Insufficient and ineffective use of labor-based
construction and maintenance technology.

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6. The Ethiopian Construction Industry
6.3 Challenges in the construction sector
 Some of the major challenges faced in the Ethiopian construction
industry are:
Lack of equipment and material
Obstacles posed by government regulations
Scarcity of finance
Big projects off-limits to domestic firms
Inefficient custom and clearance
Lack of skilled labor
Construction project delays: Delays are endemic to
construction projects in Ethiopia.

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THANK YOU!

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