Public investment projects play important role in the economic development of countries. In addition to speeding up economic growth they are also effective tools to fairly distribute wealth among citizen. However, studies undertaken on the topic indicated that delay in construction projects is common problem of both developing as well as developed nations. According to the report of Bureau of Finance and Economic Cooperation of Oromia, many construction projects that were started in the First Growth and Transformation Plan were unable to be completed on the planned date of completion (BoFECO, 2017). Moreover, the report showed that the problem was more serious in projects relating to construction of road, bridge, hospital buildings, and water schemes. The main objective of this study was, therefore, to identify the factors that have been contributed for the delay and show measures that can be taken to reduce the problem.
The study identified that inaccurate pricing and bidding, cash flow problems and shortage of construction tools and equipments have been the most important contractor related factors contributing for the delay. It is concluded in this study that most of the time, if not always, less capable contractors who have no adequate technical capacity (trained staff, machinery, equipment and tools) won the bid for Government construction projects in the region just by offering the least bid price. And this is mainly due to the fact that project owner organizations give less attention for the technical capacity of contractors during evaluation. Similarly, repeated changes in project design, slow decision making of management of the owner organizations and contractors who selection problem were the three-top ranking owner related factors. Hence, owners should properly evaluate contractors by giving equal attention both for the technical capability of contractors and the price they offer before engaging them. Moreover, owner organizations should have a regular schedule by which they monitor all of their projects and frequent review meetings must be organized with contractors to discuss on implementation issues.