PROJECT BUDGET MANAGEMENT AND PERFORMANCE OF ADDIS ABABA CITY ROAD AUTHORITY CONSTRUCTION ROJECTS IN ETHIOPIA​

Abstract

This study evaluated the influence of project budget management, leadership skills, stakeholder engagement, and contract schedule adherence, on the performance of road construction projects undertaken by the Addis Ababa City Road Authority (AACRA). A mixed-method approach integrating qualitative and quantitative methods was employed. Data were collected from 62 respondents comprising AACRA staff and consulting engineers. The findings indicated strong, statistically significant correlations between project performance and budget management (ρ = 0.650, p < 0.01), leadership skills (ρ = 0.740, p < 0.01), stakeholder engagement (ρ = 0.868, p < 0.01), and contract management (ρ = 0.926, p < 0.01). However, deficiencies were noted in areas such as funding adequacy, adherence to timelines, and conflict resolution. The study concludes that addressing these gaps through improved planning, communication, and monitoring can significantly enhance project outcomes.