Formulation of Earth Moving Equipment Rental Management System on Project Performance in Addis Ababa
Creators: name: Tesfaye Alem
Publisher: name: National Academic Digital Repository of Ethiopia
Year: 2021
Subjects: Equipment, Impact, penalty, Performance, Productivity, Rental and strategy.

description: Typically, contractors rent earthmoving equipment from equipment owner to execute earth<br> work on hourly basis for building and road construction project in Addis Ababa. But,<br> managing equipment rental is difficult due to equipment owners’ and contractors’ noncooperate relationship with individual interest behaviours. This may lead to poor project<br> performance in the project. This paper concerns on earthmoving equipment corrected<br> dozing output function. Therefore, this study drawn an attention to formulate earthmoving<br> equipment rental management system model on project performance to solve the problems<br> commonly faced between the contracting firms. To fill the gap of this study, qualitative<br> and quantitative mixed research approach and replicator equation payoff matrix tools were<br> used. Before developing the model, 53 questioners were distributed and above the planed<br> valid questionnaire were returned from both companies. In this study, SPSS software used<br> to analysis the data that collected from the respondents. Then the practice, the challenges,<br> the impacts and the behaviors of both parties were examined to identify the dependent and<br> independent variables in the model. Based on this, the output analyzed and identified noncooperate relationship behaviours, time cheating, cost overran to the contractor, poor<br> equipment output, project delay, liquidity damage to the contractor, dispute occurred<br> between them. Then, after examined these variables Causal hypothesis were hypothesized<br> and postulated to set the cause and effect interaction between independent Variables of<br> equipment owners’ operating behavior and contractors’ management behavior; and also<br> the dependent Variables of time, cost and production performance to develop conceptual<br> mathematical model. On the bases of this, the hypothesized and the postulated functions<br> were interred in to replicator equation payoff matrix tools to generate expected payoff<br> function based on operating strategy and management strategy in the game matrix<br> calculation with partial derivation, the conceptual mathematical model was formulated,<br> analyzed and identified the strategies impact on time, cost and production performance in<br> the project: after developing equipment rental management model, the D8R/8SU Bulldozer<br> corrected dozing output data and conceptual agreement between the parties were interred<br> in to the model to test the developed model. Based on the test result, high expected benefit<br> of equipment owner was X(𝑝) = 12,324 birr when he had high cheating strategy<br> probability of (p) = 0.7792 and when the contractor had low cheating protection or poor<br> management strategy probability of (q) = -0.6155; and the low expected benefit of the<br> equipment owner was X(1-𝑝) = 5,988 birr when he had low cheating strategy probability<br> of(1 - 𝑝) = -0.5869. And the high expected benefit of the contractor also Y(𝑞) =<br> 10,860.20 𝑏𝑖𝑟𝑟 when he recruit the surveyor to measure the D8R/8SU Bulldozer corrected<br> dozing output or when he had high cheating protection strategy probability of (𝑞) =<br> 0.7692 and the low expected benefit of contractor Y(1-𝑞) = 4695.19 𝑏𝑖𝑟𝑟 when the<br> contractor had no surveying plan low cheating protection strategy of (𝑞) = -0.6155. In<br> general, cheating, non-cheating, surveying and none surveying strategies and including<br> penalty in the contract agreement had effects on time, cost and output performance on the<br> project when the equipment sources rental bases. Finally, this study aimed to fill the gaps<br> of earth moving equipment rental management system; so that, any stake holders should<br> use this model findings as one part of conditions of contract in the contract document<br> during equipment rental agreement in the construction industry.