Housing Fo Sample

African Holding Share Company GODO VILLAGE SHEGER CITY
MODERN INTERLOCKING AFFORDABLE

HOUSING TECHNOLOGY, DESIGN AND
CONSTRUCTION TO
SHEGER CITY
OROMIA
HOUSING PROJECT TO SHEGER CITY
OWNER: African Holding Share Company
PREPARED BY: JASPER ENGINEERING GROUP AND PARTENERS
ARCHITECTS AND ENGINEERING PLC.

INVESTMENT, DESIGN, CONSTRUCTION, TECHNOLOGY AND TECHNICAL CONSULTANT
JULAY, 2023
Oromia, Ethiopia
i
Contents
1. General Introduction........................................................................................................................................6
As the construction sector is a significant contributor to climate change, changing industrial and societal practices is
central to a successful transition to sustainable construction globally. Constructing a new building not only involves a
highly resource-intensive process, but also entails paying a heavy upfront toll in terms of carbon emissions. In
addition to operational emissions caused by fossil energy consumption, embodied carbon stemming from the
extraction, processing or manufacturing, transportation, construction or installation, and disposal of materials makes
up a high share of a building’s climate impacts. In Ethiopia, the construction industry is responsible for
approximately 2% of carbon emissions. The country recently has been undergoing a rapid economic growth which
has been attributed mainly to the building construction boom. The construction industry is expected to continue to
flourish, since developing an international competitive construction industry is among the prioritized development
goals for the Ethiopian government to achieve the status of a middle-income country by 2025 (Ministry of Urban
Development and Construction, 2012; Taffese and Abegaz, 2019). This is likely to affect the carbon emissions
related to the sector significantly. This situation is further exacerbated by poor management of building materials
and generated wastes in building construction sites. In the Ethiopian construction industry, wastage of materials is
more than twice as much as in countries of the Global North (Taffese and Abegaz, 2019). Renewable, sustainable
and local materials with lowcarbon footprints hold enormous opportunities and enable carbon reductions on a large
scale. To keep the global temperature, rise to 1.5ºC above pre-industrial levels, potentials of sustainable
construction materials need to be explored further and sustainable practices implemented in the sector. To draw on
the leverage of low-carbon construction, the quantifiable impacts in terms of reduced CO2 e emissions need to be
explored further and reliable studies on CO2 e reductions of climate friendly materials are scarce. Rapid
Assessment of Poverty Impact..............................................................................................................................6
Sustainability of a large-scale......................................................................................................................................6
Definitions of Terms and Concepts.............................................................................................................................9
Business creator and advisory services: -...................................................................................................................9
Employed: -....................................................................................................................................................................9
Household: -...................................................................................................................................................................9
Social network: -...........................................................................................................................................................9
Unemployed: -...............................................................................................................................................................9
Youth:.............................................................................................................................................................................9
street vendor..................................................................................................................................................................9
Towns and cities:...........................................................................................................................................................9
Housing in Ethiopia.....................................................................................................................................................10
Quality of housing.......................................................................................................................................................14
Major role players on quality of condominium housing.........................................................................................19
Contractors Roles........................................................................................................................................................20
SMEs Roles..................................................................................................................................................................21
Measuring housing quality.........................................................................................................................................24
Benchmarking quality of housing..............................................................................................................................25
Internal benchmarking...............................................................................................................................................27
Competitive benchmarking........................................................................................................................................27
Generic benchmarking...............................................................................................................................................28
Common quality problem in low-cost housing.........................................................................................................28
Conceptual framework...............................................................................................................................................29
Motivation to improve quality of housing.................................................................................................................31
Quality standard technical manual for condominium housing..............................................................................34
PRPARED BY JASPER ARCHITECTS AND ENGINEERS PLC Youth job creation Business Plan to Oromia region
2
Project awarding system of Oromia housing office................................................................................................35

Quality standard guidelines related to low-cost housing.........................................................................................36
Technical perspective..................................................................................................................................................38
Oromia housing unit office endeavor to develop quality of housing.......................................................................39
4.1.1 Communication and controlling quality of housing.................................................53
4.1.2 Capacity building for SMEs and contractors by AAHDPO.......................................54
5.1 Quality Summary................................................................................................................ 1
Towards Affordable Low-Cost Housing: Strategies of Low-Cost Housing Development for the Low-Income. .2
Conceptual Abstract...............................................................................................................................................2
Introduction to interlocking housing system..............................................................................................................2

Literature Review.........................................................................................................................................................3
Actors and practices of low-cost building materials and technologies...........................................................................4
Land:...................................................................................................................................................................... 4
Infrastructure:........................................................................................................................................................5
Financial resources for housing...................................................................................................................................5

Public-private partnership in housing delivery.........................................................................................................5
Investment in affordable housing supports multiple social objectives....................................................................6
Methodology..................................................................................................................................................................6
Strategies in place of driving to words low-cost affordable housing........................................................................7
Figure 1: Low-cost affordable housing model.......................................................................................................7
Possible Ways of achieving low cost and affordable housing in Ethiopia, Oromia................................................8
Interlocking blocks......................................................................................................................................................10
Strategy 2: Make land affordable:............................................................................................................................11
1. Land as equity:.................................................................................................................................................11
2. Concessionary land:.........................................................................................................................................11
3. Land banking/Flipping land:............................................................................................................................11
Strategy 3: Alternative Technologies:.................................................................................................................11
Strategy 4:............................................................................................................................................................12
Strategy 5.............................................................................................................................................................12
Building subsidy into your model:.......................................................................................................................12
Strategy 6: Design:...............................................................................................................................................12
Strategy 7: Incremental construction:..................................................................................................................13
Strategy 8: Self construction................................................................................................................................13
Strategy 9: Community supported labor:............................................................................................................13
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Strategy 10: Avoiding speculation:......................................................................................................................13
Strategy 11: Develop contracts with suppliers:...................................................................................................14
Housing supply: challenges........................................................................................................................................14

Challenge 1: Availability of finance.....................................................................................................................14
Challenge 2: Volatile economic environment.....................................................................................................14
Affordable interlocking housing Recommendations...............................................................................................15

CHALLENGES THAT LOW-INCOME EARNERS FACE IN............................................................................15
ACCESSING DECENT HOUSING IN URBAN AREAS......................................................................................15
The shelter is one of the essential human basic needs since it is ranked among the top three of human needs.
Providing for adequate and affordable housing in any country is......................................................................15
very significant because housing stimulates the growth of the national economy. According to, houses are permanent
structures in which human beings live in. It is also be referred to as home, building or structure that acts as the
dwelling or place for habitation by human beings................................................................................................15
The term "house" comprises different kinds of dwellings, ranging from rudimentary huts of nomadic tribes to free
standing modern individual structures. Furthermore, Jibe referred to it as a place of residence which is constructed
as a habitat for one or more people. The housing comprises of durable assets, which contributes to the more
substantial proportion of a country's wealth and on which households spend a significant amount of their income
(Hoek-Smit, 2011). Basing on these reasons, housing has become a regular feature in economic, social and political
15
4
5
1. General Introduction
As the construction sector is a significant contributor to climate change, changing industrial and
societal practices is central to a successful transition to sustainable construction globally.
Constructing a new building not only involves a highly resource-intensive process, but also
entails paying a heavy upfront toll in terms of carbon emissions. In addition to operational
emissions caused by fossil energy consumption, embodied carbon stemming from the
extraction, processing or manufacturing, transportation, construction or installation, and disposal
of materials makes up a high share of a building’s climate impacts. In Ethiopia, the construction
industry is responsible for approximately 2% of carbon emissions. The country recently has been
undergoing a rapid economic growth which has been attributed mainly to the building
construction boom. The construction industry is expected to continue to flourish, since
developing an international competitive construction industry is among the prioritized
development goals for the Ethiopian government to achieve the status of a middle-income
country by 2025 (Ministry of Urban Development and Construction, 2012; Taffese and Abegaz,
2019). This is likely to affect the carbon emissions related to the sector significantly. This
situation is further exacerbated by poor management of building materials and generated wastes
in building construction sites. In the Ethiopian construction industry, wastage of materials is more
than twice as much as in countries of the Global North (Taffese and Abegaz, 2019). Renewable,
sustainable and local materials with lowcarbon footprints hold enormous opportunities and
enable carbon reductions on a large scale. To keep the global temperature, rise to 1.5ºC above
pre-industrial levels, potentials of sustainable construction materials need to be explored further
and sustainable practices implemented in the sector. To draw on the leverage of low-carbon
construction, the quantifiable impacts in terms of reduced CO2 e emissions need to be explored
further and reliable studies on CO2 e reductions of climate friendly materials are scarce. Rapid
Assessment of Poverty Impact.
Sustainability of a large-scale housing development such as the City Block is

primarily dependent on integration of several spheres: spatial, environmental, economic and
social sustainability, as well as institutional sustainability. Sound policy and governance
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structures are required to implement projects of such scale, especially when resettlements of
informal dwellers form part of the project’s development. Integration of those aspects into the
development process at an early stage is indispensable for its overall sustainability and the
development’s long-term success. While this study focuses primarily on sustainable material
use, other spheres of sustainability will be discussed in the section below. In general, compact
settlements such as the envisaged City Block, with short distances between public modes of
transportation, education and employment facilities as well as to public and open spaces, are
considered an important aspect for sustainable neighborhoods. Apart from increasing a project’s
financial viability and having other economically desirable effects, compact and dense
settlements diminish environmental impacts through efficient resource use, for example, by
reducing soil sealing and distances in transportation. Increase of density in the area implies
different impacts for either low- and higher-income settlements. S.B. Patel (2007) suggests that
while in more affluent areas, higher densities could result in an increase of available living space
per capita, in poorer areas, it could stress existing transport connections. Significant uncertainty
surrounds any quantitative interpretation of alleviation regarding urban green, income inequality,
health, and well-being especially in context of such large-scale developments in countries of the
Global South (Ahlfeldt and Pietrostefani, 2019). Further, it needs to be considered that especially
for informal dwellers that have been accustomed to live in more “horizontal”, high-density, low-
rise settlements, a high-rise development could prove a constraint. Extensive consultation of
local communities could support dwellers getting used to the shift, also instructing on potential
maintenance of collective areas in the building (Gill and Bhide, 2012). The most used
construction materials in the Ethiopian building construction sector are cement, sand, coarse
aggregates, hollow concrete blocks and reinforcement bars (Taffese and Abegaz, 2019). These
materials also are prime sources of waste generation during construction. Studies on example
projects in Ethiopia show that cement, hollow concrete blocks (HCB), and reinforcement bars
(rebars) are the major consumers of energy and major CO2 e emitters and account for more
than 90% of the embodied energy and CO2 e emissions (ibid). Studies have shown that the
wastage of materials such as sand, cement or rebars ranges between 13% and 18% of total
building materials (Taffese and Abegaz, 2019). This shows how the arising waste of the
7
construction materials intensifies the embodied energy and the subsequent CO2 e emissions
considerabl
8
Definitions of Terms and Concepts
Business creator and advisory services: -includes short term training or consultancy
focused on skill upgrading, entrepreneurial management and other services.
Employed: - includes those persons who were engaged in productive activity during the
Period as paid or self-employed (ILO, 1992).
Household: - consists of a person or group of persons, irrespective of whether related or

not, who normally live together in the same household and housing units and have common
cooking and eating arrangements (CSA, 2010).
Social network: -refers the number of persons such as friends, relatives…etc. Individual
would have in exchanging information about jobs available in the labor market using any form of
communication channels.
Unemployed: - described as those people without work but looking for work or available
and ready to work during a reference period (ILO, 1992).
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Youth: -comprises part of the society who are between age 15-29 (MOY, 2004).
street vendor means any person engaged in vending of articles, goods, wares, food items
or merchandise of everyday use or offering services to the general public, in a street, lane, side
walk, footpath, pavement, public park or any other public place or private area, from a temporary
built up structure or by moving from place to place and includes hawker, peddler, squatter and all
other synonymous terms which may be local or region specific; and the words ‘‘street vending’’
with their grammatical variations and cognate expressions, shall be construed accordingly .
Towns and cities: city is a large urban area with a greater geographical area, higher
population, and population density, and is more developed than a town.
Demography And Geography A city has a high population density comprising diverse ethnicities,
cultures, races, religions, and languages.
Housing in Ethiopia
Ethiopia’s construction sector is one of the most robust in Africa. Conditions are ripe for a
surge in building across the country. The updating and building of new infrastructure links,
residential developments and so on is of considerable interest to the Ethiopian Government.
Indeed, development of these areas features heavily in the nation’s Second Growth and
Transformation Plan.
The GTP five-year plans lay out the blueprint for Ethiopia’s continued economic growth. As
such, construction will play a key role towards achieving the country’s economic prosperity
goals. According to the NBE, construction accounts for half of all the nation’s industry.
What’s more, the industry is expanding rapidly. Data from the NBE also suggests that
during 2013/14 the building sector grew 37%.
In Ethiopia the concept of Condominium house as a separate form of ownership was not
familiar until 2003. In 2005, the government of Ethiopia considering provision of houses as
one of the major developmental tasks to reducing poverty and improving the livelihoods of
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slum dwellers; and thereby bringing sustainable socio-economic development, established a

National Integrated Housing Development Program under the then MWUD later renamed
as the Ministry of Urban Development, Housing and Construction.
AAHDPO is a government-led and financed housing provision program for low-and middle-
income households in Ethiopia. Projects are undertaken on either brown-field sites or slum
areas that are cleared and residents re-housed. The common attribute of each project is that
it has developed different typology of condominium housing: multi-storied housing units for
several households where communal areas are jointly owned and managed.
The Ethiopian low-cost housing policy has two primary objectives; first, it aims to extend
market for low-income households that are not covered by the private housing market
through increased supply of affordable low-cost housing. In many developing countries, the
great majority of lower income households cannot afford the lowest priced houses in the
formal housing market. This is particularly problematic in developing economies where
urban growth is predominantly driven by in-migration by rural households that often lack
the financial wherewithal to participate in formal housing markets.
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In the present Ethiopian context, at prevailing housing price and financing mechanism, only
households above the 95th percentile of the income distribution can afford to become home
owners in the formal private housing market. The only choice opens to lowest income
households in such economies is to rent under precarious and uncertain tenure terms,
double up with relatives, or build some form of shelter in unauthorized sectors that
exacerbate the proliferation of slum areas. Consequently, lower-income households not only
live in sub-standard housing conditions, but also have limited access to basic public services
as well as access to finances as they are often considered not creditworthy either due to their
employment, which is often in the informal economy and or lack of collateral for mortgage
lending when available (Alebel, et.al 2016).
Second, the housing policy aims to stabilize rental markets in urban Ethiopia through the
increased construction of low-cost housing units that target lower income households as well
as by increasing the general housing stock. It is estimated that Ethiopia’s current housing
deficit in urban areas is about a million units, and that only 30 percent of the current
housing stock is in “fair” condition, with the remaining 70 percent in need of total
replacement. The housing deficit is even more severe in major urban areas like Addis Ababa,
where the deficit is set to increase concurrently with rapid population growth. Consequently,
this has placed significant upward pressure on the demand for rental housing in urban
areas, which in turn is pushing rental prices and creating affordability challenges to working
class households. Housing affordability challenges in the private market are occurring
largely due to the limited rental housing options for renters. To ensure stable and affordable
rental housing prices, the supply of new housing stock has to increase to match the rapidly
growing urban housing need (Alebel, et.al 2016).
Different housing construction technical manuals was prepared by the support of GTZ-IS in
collaboration with MH Engineering Consulting Engineers P.L.C. (Advisor of the program)
and the Ethiopian Ministry of Federal Affairs prepared technical manuals to be used as a
guideline during the implementation phase of the program.
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Volume I of the technical manual describes a modular building system introduced by the
Low- Cost Housing Project. It has four parts the first part describes machines and special
tools for the pre-fabrication process and simple handicraft-techniques, the second part
introduces modular system - measurement basics and the standardized building parts. The
third part visualizes a typical building process based on a model to illustrate the order in
which the building parts should be assembled. The fourth part consists of models of
condominium buildings (GTZ- IS/ETHIOPIA 2003).
Volume II is a continuation of the first technical manual published with the objective to
inform the development of low-cost housing in Ethiopia. Furthermore, the manual includes
a construction guideline “step by step” meant to guide site supervisors and site engineers to
organize construction sites and control the quality as well as the implementation of the
technical requirements. It is a very practical guide, which includes checklists for the
different tasks that need to be accomplished. It goes through the whole construction process
from excavation, earthwork to slab construction (GTZ-IS/ETHIOPIA 2005).
Volume II is a continuation of the first technical manual published with the objective to
inform the development of low-cost housing in Ethiopia. Furthermore, the manual includes
a construction guideline “step by step” meant to guide site supervisors and site engineers to
organize construction sites and control the quality as well as the implementation of the
technical requirements. It is a very practical guide, which includes checklists for the
different tasks that need to be accomplished. It goes through the whole construction process
from excavation, earthwork to slab construction (GTZ-IS/ETHIOPIA 2005).
The low-cost housing program has three types of housing schemes, categorized based on the
minimum requirement for down payment: 10/90, 20/80 and 40/60 schemes. The
beneficiaries for the 10/90 housing schemes are required to pay 10% of the transfer price
upon owning the house, and the rest 90% will be paid on installment in 25 years. Those
eligible for 20/80 and 40/60 are expected to pay 20% and 40% as down payment, and the
rest in 15 to 20 years. These schemes are expected to suit households of different income
13
levels. (Alebel, et.al 2016). The studio unit of the 10/90 program is targeted at the lowest
income group, with an average monthly income of ETB 300 (USD 23) at the time of the
program design in 2004. The 20/80 scheme targets the middle incomers, while the 40/60
scheme targets the upper middle-class that can save quickly or pay upfront. The features of
the low-cost housing are designed to contain private access to basic amenities such water,
sewerage, and electricity connections and also a bathroom, which includes a shower, flush-
toilet, and hand basin, and a kitchen (Alebel, et.al 2016).
Quality of housing
Some researchers like (Arditi & Gunaydin 1997), use the term quality instead of project
performance to indicate the effect. Quality project refers to a project, which is completed on
time Within budget and meets its functional requirement (Arditi & Gunaydin 1997).
What is quality?
(Vincent & Joel 1995), define quality as the integration of all functions and processes to
achieve continuous improvement of the quality of goods and services to meet customer
satisfaction. According to (Arditi & Gunaydin 1997), Quality is meeting the requirements of
the stakeholders: designer, contractor and regulatory agencies as well as the owner. To
ensure project quality implementation of a Total Quality Management System (TQMS) is
necessary. TQMS is an effort that involves every organization in the industry to improve
performance and focus on process improvement, customer and supplier involvement,
teamwork, education and training to achieve customer satisfaction defect free work (Meng
2011).
There are two widely used terms in TQMS namely Quality Assurance (QA) that covers
activities Necessary to provide quality in project work and Quality Control (QC) that is set of
procedure to Meet QA. The activities in QA involve establishing project related policy,
system necessary to Produce quality, standards, training and guidelines whereas the
14
procedures in QC involve planning, coordinating, developing, checking, reviewing and

scheduling of work (Arditi & Gunaydin1997). The training in QA includes instruction in
the basic TQM cause and effect analysis, team problem solving, interpersonal
communication and interaction and cost of quality measurement (Arditi & Gunaydin 1997).
(Arditi & Gunaydin, 1997), also identify the importance of teamwork in the implementation
of TQMS. The team, which is responsible for establishing joint goals, plans, and controls
should Include all members of the parties involved in the project. The teamwork provides a
mechanism for listening to and communicating with the owner, thus useful for
measuring the level of customer satisfaction.
As the customer's perspective of quality levels is important (Deming 1986), performance

should be measured and informed to all stakeholders involved (Thomas & Thomas 2005).
The next Subsections then address stakeholder involvement, performance measurement and
customer Satisfaction.
The Oxford Dictionary of Current English (1984) defines defects as „lack of something
essential, imperfection, shortcoming, failing. A defect is defined in ISO 8402 as the non-
fulfillment of intended usage requirements. It means lacking and not meeting the required
standard. A defect is present when there is a difference the required standard and the actual
delivered standard. The concept of Zero defects is performance to agreed specification (Al-
Mahade 2008).
It literally means 100% error free. Is it attainable, or is it good enough to achieve a certain
percentage of acceptable defects? The zero defects concept became popular when Crosby a
quality manager developed a concept based on his beliefs that product should be defect-free
when delivered to the customer (Harrington 1998). This concept was neither a technique nor
a methodology; it embodied an attitude that Crosby sought to instill in every individual. It
focused on an individual‟s commitment to always meet the engineering specification.
Defects may appear as a building is constructed or after an element of work is completed. In
15
most standard forms of buildings contractors, there are usually provisions that require
rectification of defects by the contractor at his own costs.
The defects Liability Period (DLP) is a period of a number of months‟s stated in the
contract, commencing from the day a project is certified practically completed and handed
over to the client (Sikan 2001). Defects in construction can result in very large costs. Even
with minor defects; the operations of a quality may be impaired, resulting in increased costs
and delays. Generally, construction industry players believe that to achieve zero defects in
construction is not possible. However, it must be highlighted that the concept of zero defects
in not only about achieving zero effects as an absolute goal, but also generating a different
attitude towards work. It is about looking at projects from a customer’s point of view and
catering for their needs. It is about getting the work right the first time and delivering the
project on time (Costain 1998). However, defects occur either because of poor material
quality or poor capacity of the contractor. These causes may operate singly or in
combination and result in defects indicated by changes in
composition of materials in the construction itself; in the size, shape or weight of materials
or parts of a building; or simply in appearance.
Ethiopia currently is faced with many problems, housing being one of them. The quality of
housing and the aspects which contribute to it leaves much to be desired. The key purpose of
this research study is to suggest that by systematic focus on implementation of quality of
construction condominium housing projects skilled workmanship (small contractor) and
SMEs results in effective quality product. When placing emphases on the word quality it
may be described as the degree of excellence (Croome and Sherratt 1977). However, (Barrie
and Paulson 1984) mentions that quality assurance is considered generally to be a broader,
more nearly all-encompassing term for the application of standards and procedures to
ensure that a product or facility meets or exceeds the desired performance criteria. (Powell
1976) further mentions that quality in housing construction demands functional soundness
and also demands subjective acceptability for it to be a marketable product.
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According to (Griffith 1990) as well as (Levey 2002), at present quality within the
construction industry is fraught with difficulty. The relatively unique aspect of each
construction project and its temporary nature make the continuity and development of
approach across projects far from easy. (Griffith 1990) further postulates that quality should
try to address science and technology aspects of construction as well as manage the physical
and psychological aspects of the human element. Quality in construction therefore
represents a complex socio-technical managerial challenge (Griffith 1990). In order to
overcome these challenges, considerable efforts need to be made to achieve perfection at the
very first attempt (Bennett 1991). Therefore, by focusing on the quality of implementation in
conjunction with the quality of conformance to these designs, quality to the constructed
facility is made possible (Barrie and Paulson 1984).
(Griffith, 1990) contends that in recent years the need for well-formulated, structured and
formal systems of construction management to take into consideration aspects of quality
performance has increased as a direct result of capacity of contractors, materials and
components provision. Quite a number of problems, such as contractors, which have been
experienced in the building process, seem to be inadequacies ranging from small technical
and aesthetic aspects to the major building defects.
(Levey 2002) further states that the growing shortages of skilled workers, be it designers or
construction managers and their labor, which began to appear in the 1980‟s in the United
States of America, has reached dangerously low levels in today’s construction industry. This
concern remains one of the major challenges facing the industry, ultimately jeopardizing
quality. (Powell, 1976) adds that quality would also be jeopardized due to the fact that there
are no acceptable quality criteria for middle management and site management in
speculative housing. These problems are known to cost the building industry hundreds of
millions of dollars annually due to mismanagement. Therefore, it is said that many of these
difficulties might be dealt with through greater care and attention to standards of
performance and quality at the client briefing, design and construction stages which form
part of the building process (Griffith 1990).
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The cost of the housing is also determining the quality of the house, but there is a way to
control (Lewale 2011), also points out areas where cost can be minimized: to reduce plinth
area by using thinner wall concept, use locally available material in an innovative form like
soil cement blocks in place of burnt brick, and use energy efficient materials that consume
less energy like concrete block instead of burnt brick. Additionally, use environmentally
friendly materials that are substituted for conventional building components, pre-plan every
component of a house and rationalize the design procedure for reducing the size of the
component in the building have an effect to reduce construction cost.
Thus, cost-effective and alternative construction technologies reduce construction cost by

reducing quantity of building materials through improved and innovative techniques. Apart
from reducing construction cost the technology can play a great role in providing better
housing methods and protecting the environment. Building material accounts for 60-70% of
the total building cost (Lewale 2011). Therefore, reducing material cost results in a vital
change in the overall construction cost.
Low-cost housing supply also has certain constraints (Moavenzadeh 1987) financial
problems due to late payment and withholding portion of payment as form of guarantee,
high cost of equipment and unavailability of access to credit are the main ones. The
problems are worse for small-scale contractors in developing countries. They face idleness of
equipment due to unavailability of consistent work, transportation of building components,
lack of technicians and
supplies for spare part of equipment, inefficiency of equipment, and inadequate supply of
skilled construction labor. (Moavenzadeh 1987) also suggests remedial action to the
specified constraints. Timely payment, upon arrival or even in advance payment for material
and facilitate access to the loan are remedial actions associated with finance. Remedial
actions concerning technical support for contractors include, training workers for the
construction and building materials industries- especially crafts people, managers, engineers
and other professionals and apprenticeship systems for skilled workers and managers,
18
which remains the best bet for mitigating shortage of technical and managerial talent. In
addition, incorporate workers in the informal sector since they are already experienced in
the manufacturing, use of domestic materials and the construction of low-cost housing. Any
program to improve the housing conditions of the poor would profit by their inclusions. At
last policies that favors small-scale production and institutional mechanisms will not only
promote the social and economic welfare of the poor but also generate growth and
employment in nearly all sectors of a developing nation (Moavenzadeh 1987).
Quality controlling system in housing construction project plays a great role in the low-cost
housing sector. Quality controlling system, in short refers to a program for systematic
monitoring and evaluation of the various aspects such as construction processes and input
provide based on the characteristics of a project, to ensure that standards of quality are
being met Quality Assurance (Harrison, 2005).
According to (Harrison, 2005) the quality systems currently implemented in the low-cost
housing sector are:
Document Control: To ensure employees have the correct procedures and that the
procedures are properly maintained.
Audits: To verify that quality procedures are being followed.
Non-conformance Tracking: To monitor and track quality issues and that defects
are kept from customers.
Management Review: Reviewing quality systems data quality metrics to

determine if the quality system is working and if it is not, taking the appropriate
action to improve the system.
Major role players on quality of condominium housing
The main participant who are involved during the construction phase are AAHDPO,
contractors SMEs and consultants. The small contractors are the general contractors who
19
are responsible for major construction activities. MSEs are the other major role player, who
manufacture and provide prefabricated building components, install electrical and sanitary
works, and manufactures metal window and door frames.
Contractors Roles
Contractor performance has a direct impact on project quality for instance poor contractor’s
performance can lead to poor project quality. From the SWOT analysis made in European
construction sector, small contractors have low productivity, little interest in education and
training than other construction companies (Jankovichova 2010).
The other factor that negatively affects contractor performance is that contractors are not
customer oriented and focused. Contractors can be rated in terms of various aspects such as
management, claims orientated, site offices, safety, relations with site neighbors, plant and
equipment condition, administration, worker skill, and quality (Latham 1994). Latham
further added factors that negatively affect contractor’s performance in terms of quality for
instance workers' skills, out of sequence work, late information, emphasis on production,
project duration, poor specification, design change, employer change, bad weather, and late
information and procurement system.
Due to the above constraints, it is difficult for the contractor to deliver quality housing,
which then affects the construction sector as a whole. (Krooden, Milne & Atkins, 1995)
underline the importance of contractor development program to overcome poor
workmanship and maximize development impact on projects in poor communities. Thus,
development programs have to consider management options that encourage
development, institutional roles that ensure
coordination and project quality success and project options that match the project with
development objectives (Krooden, Milne & Atkins 1995).
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Most of the contractor development programs include training and capacity building
schemes where the level of the support, depends on the level of the contractors (Krooden,
Milne & Atkins 1995). The Less developed contractor will have broader needs of technical
and managerial aspects. Training is a vital part of the development program that should be
given immediately before a project starts to enable the contractor to perform well and be
competent. Training is provided either by manpower upgrading programs or NGOs and
should focus on technical competence, business and managerial skills and program
management (Krooden, Milne & Atkins 1995).
Potential differences in the quality of housing delivered between Grade 2 to 4 contractors

and by Grade 5 to 9 contractors are significant Grade 5 to 9 are poor than Grade 2 to 4 that
the quality of housing and also completed work delivered decreases quality with increasing
project size (Groenkloof, 2011). Of significance, however, is that small contractor’s rate poor
site management, a lack of understanding of quality and a lack of quality improvement
processes as significant barriers to attaining construction quality (Groenkloof 2011).
SMEs Roles
The criteria for determining SMEs are also different for different countries. For instance, in
India, the criteria for determining SME status is based on investment, while in South Africa
SME eligibility depends on the number of employees and turnover. Similarly, in Ethiopia,
the working definition of MSEs is based on capital and labor. However, there are three
parameters that are generally accepted when defining SMEs in most countries; number of
workers employed, which is the most widely used criteria, firm's level of capital investment
or of assets, and firm’s volume of production or annual turnover (WTO).
EU classifies micro, small and medium-sized enterprises - SMEs based on staff head count and
financial ceilings accordingly EU (2003);
.
1. A medium enterprise is defined as an enterprise which employ fewer than 250

persons and have an annual turnover not exceeding EUR 50 million, and/or an
21
annual balance sheet not exceeding EUR 43 million.

2. A small enterprise is defined as an enterprise which employs fewer than 50
persons and whose annual turnover and/or annual balance sheet does not exceed
EUR 10 million.
3. A microenterprise is defined as an enterprise which employs fewer than 10
persons and whose annual turnover and/or annual balance sheet does not exceed
EUR 2 million.
According to Ethiopian development strategy 2011, MSEs are categorize as follow:
Enterprise with capital below Birr 50,000 and have less than 5 employees
considered as micro enterprise and
Enterprise with capital below or Birr 1,500,000 and have 6-30 employees
considered as small enterprise
Oromia housing office mainly aims to strengthen and improve the capacity of the
construction sector and improve the TVET system in building the capacity of SMEs. This
component has two major activities. First, construction management, which includes
various activities such as the production of Capable Site Engineers and Foremen; SME
entrepreneurs who will participate at different value chain of the housing project as
manufacturer and sub-contractor; build the coordination and supervision capacity of the
city. Second, capacity building and facility requirements, in which three key activities are
done. First, training, the fulfillment of the required facility and equipment, and preparation
of guidelines and procedures to facilitate the implementation of the program including
institutional and organizational arrangements. It will also result in strengthening and
building of the capacity of the city in construction material production, construction
services, skilled manpower, and institutional service delivery (Alebel, et.al 2016).
SME will involve in the different components of the housing construction including
structure work, construction and production of manufacturing such as hallo block concrete,
door, window, sanitary work, and Electrical installation. The TVET activity is designed to
22
improve SME‟s vocational skills to a higher stage and ensure them to sustain in employment
through innovation and produce high quality products. This activity will produce 2300
SME established and 80,000
23
jobs created. AAHDPO Mobilizes and prepare 8.8 billion Birr required for the housing
construction project (Alebel, et.al 2016).
"The utilization of housing as an instrument to promote urban development, create
jobs, revitalize the local urban economy through MSE development, encourage
saving and empower urban residents through property ownership, and develop the
capacity of the domestic construction industry" (MUDHC 2005 E.C.).
AAHDPO has tight costing and quantity surveying mechanisms that aim to minimize
construction costs. The office is responsible for purchasing all construction materials, in
bulk and therefore at low prices. Contractors are engaged on fixed-cost contracts, which
reduce the burden of soliciting for, receiving, and choosing tenders for each job. The
material requirements for each condominium block are calculated and the exact material
quantities are given to contractors. This centralized system minimizes wastage, helps to keep
records for material supplies and distribution, and enables any surplus materials to be used
on other site (UNHBITAT 2010).
Measuring housing quality
Measuring quality enable managers to know how close they are to their target and how to
make the right decisions for improving work process (Oztas 2005). Continual measuring of
project performance for further improvement also helps in meeting customer expectation on
the project outcome. (Deming 1986) also affirms that the customer's perspective of quality
levels is critically important. Hence it is important for the project team to understand what
customer satisfaction means.
Quality should be measured on a regular basis throughout the project, which helps the team
to review progress and identify opportunities for further improvement (Thomas & Thomas
2005). Benchmarking allows a project team to learn from best practice by comparing its own
performance with others (Chan 2004). Without clear measurement of performance against
24
benchmarks, it is difficult for any teams to determine how well they have done and what
improvement they need to make (Chan 2004).
Accurate construction planning is a key determinant in ensuring the delivery of a quality

housing on schedule and within budget. A contracting organization needs a sound time-
planning and control system which allows not only efficient and effective management of an
individual project but also the likely need to manage multiple projects simultaneously
(Griffith 1990).
Benchmarking quality of housing

The philosophy of benchmarking has proliferated in many manufacturing industries;
relatively little attention has so far been drawn to its potential value in the construction
industry. Benchmarking is the search for the best practices that will lead to superior
performance of an organization (Chan 2004). Researchers in construction management and
practitioners in the construction industry have begun to realize the importance of
developing best practice benchmark measures, say for instance, of construction quality
performance to be used by clients, consultants and contractors (Chan 2004).
According to (Alarcon and Serpell 1996) there is still a consensus around researchers and
the construction industry experts, that one of the principal barriers to promote
improvement and sustainability in quality construction projects is the lack of appropriate
quality performance measurements. (Alarcon and Serpell 1996) further mention that for
continuous improvement to occur it is quite pivotal to have quality performance measures in
place in order to check and monitor this quality performance, to also verify changes and the
effect of improvement actions, to understand the variability of the process and in general it
is a necessity to have objective information readily available in order for any construction
company to make effective decisions.
(Mohamed 1996) confers that the ever-rising customer requirements and expectations have
increased demands for continually introducing improvements in quality of housing. With
25
competitors in construction increasing at a vast rate, construction organizations all around

the globe are enhancing their competitive position by improving their performance and in
addition setting new operating targets and standards for the national market. This dynamic
mechanism and the well-known fierce national competition have raised the awareness of
quality performance measurement known as benchmarking among the majority of
contractors.
According to (Alarcon and Serpell 1996) benchmarking is considered to be a new topic

within the construction industry. (Alarcon and Serpell 1996) further mention that to this
day there is
almost no available information that describes the potential that benchmarking offers to
quality of housing.
However, (Kyro, 2003) states that benchmarking has established its position as a tool to
improve contractor’s quality performance. (Kyro 2003) defines benchmarking as the
process of evaluating and applying best practices that provide possibilities to improve the
quality of work. (Kyro 2003) further mentions that benchmarking is an evolving concept
that has developed since the 1940‟s towards more sophisticated forms. He proposes that it
has undergone five generations. (McCabe 2001) adds that many of the techniques directly
associated with benchmarking may have their roots in the so-called quality movement of the
1980‟s, but the concepts which underpin them are a lot older.
(Mac Cabe 2001) explains that records show that the Egyptians used benchmarks in
construction work, by cutting a notch in a lump of stone at accurately determined points,
while a flat strip of iron would then be placed horizontally in the incision to act as the bench
for a leveling staff. Using this as a reference further heights and distances could be
measured. While the term benchmark may have changed to a more contemporary meaning,
at its heart it is still the fundamental principle of being able to measure in a definitive way,
in order to improve quality standards (McCabe 2001).
26
(Mohamed 1996) mentions that in housing quality benchmarking is not a straight forward
task due to both the very nature of the industry which lacks solid data gathering and the
remarkable fluctuation in productivity. In housing quality benchmarking attempts always
run a risk of facing certain difficulties such as incomplete or non-existing data (plans
incomplete). Even if the data was complete or did exist, benchmarking would be highly
dependable on project size, type and budget. Therefore, it is difficult to use it effectively as a
basis for comparison. Benchmarking only works if consistent methods of measuring the
quality performance of operations can be developed and introduced.
(Mc George and Palmer 1997). state that there are three types of benchmarking; they are:
internal, competitive and generic benchmarking.
Internal benchmarking
Internal Benchmarking is where a contractor aims towards identifying improvement areas

within its structure through comparing its business operations with those of others who do
things better, thus setting new targets to meet (Mohamed 1996). (McCabe 2001) confers that
internal benchmarking is the most straightforward of the three types, because it is carried
out inside the organization. When focusing on internal benchmarking, it may be discovered
that a particular department is able to perform better than others. (McGeorge and Palmer
1997) further state that internal benchmarking allows best practice that exists within the
organization to be identified and installed contractors-wide.
Competitive benchmarking
Competitive benchmarking is a comparison between the processes of companies operating

within the same industry (Mc George and Palmer 1997). Therefore, if a competitor of the
same industry suddenly gains a competitive advantage for example selling goods at a
cheaper rate or to a higher specification, other companies will be forced to follow or meet the
same standard (McCabe 2001). The problem however with competitive benchmarking is
27
that because it deals with the companies operating in the same industry, best practice of a
competitor is not necessarily good enough. For example, a construction company can have
an excellent reputation for construction process and material use, due to no direct follow-on
from this; this does not mean their estimating processes are any better than others
(Mohamed 1996).
Generic benchmarking
According to (Mohamed 1996) generic benchmarking is when the industry as a whole

attempt to increase quality through tools and techniques developed and successfully used by
other industries applicable to construction. The advantage of generic benchmarking
however that is it breaks down the barriers to thinking and offers a great opportunity for
innovation. The disadvantage is that it can be difficult, time-consuming and expensive (Mc
George and Palmer, 1997).
Common quality problem in low-cost housing
Quality problem in newly completed buildings is becoming a serious phenomenon as lower

cost and medium cost house are being built (Alsadey et.al. 2010). Construction defect
according to (Alsadey et.al. 2010) is lacking and not meeting the required standard that may
reveal as a building is constructed or after an element of work is completed. Defects usually
include any deficiency in the performing of the design, planning, supervision, inspection,
construction or observation of construction to any new home or building. The defects
usually are start to appear after 2 years of occupancy (Chong & Low 2006)
28
Housing quality defect affects society or end-users due to possible danger posed and direct
and indirect cost of repairs imposed. Some of the most common construction defects involve
leaking roofs and windows, cracked and heaving concrete, cracks in walls and joints,
defective plumbing and improperly installed electrical equipment shown below (Alsadey
et.al. 2010),
o Cracking
o Loose plastering of ceilings
o Delaminating
o Surface appearance (Surface abrasion & Surface etching)
o Corrosion
o Physical appearance Dent age (Deflection & Warping and buckling)
o Water penetration
o Sealant defects
o Staining
Conceptual framework
A number of different participants are contributed for housing quality challenges. According
to the unique characteristics of this project, the identified main quality role players of 20/80
condominium housing are SMEs, contractors, AAHDPO, and consultants. In addition, this
extensive review encompasses all the identified quality of housing problem identified and
discussed in previous sections of literature review.
Common attribute to the major sources of quality challenge of 20/80 condominium housing
problem stipulated in the figure below;
Figure 2.1 conceptual framework
29
consultants
Oromia housing office
SMEs
Quality challenges
Contractors
of 20/80
condominium
housing
30
Motivation to improve quality of housing
All respondents of contractors agree that lack of access to finance has negative impact on
their motivation to work and in addition, long time payment processing and insufficient
profit also sometimes budget problem from AAHDPO the project also affect.
SMEs were asked about what factors affect their motivation most often, the majority of
SMEs reply that the profit is too small only 19% are satisfied, and when they try to request
AAHDPO for unit rate revision, they never get an appropriate response. Besides around 54%
of SMEs states that the idleness of equipment, delay in delivery of raw material, contract
type, payment condition, accessibility to finance, and a dividend of profit among members in
the enterprise, has a large impact on their motivation to work. Due to AAHDPO attention
now largely diverted to newly recruited SMEs, the existed SMEs are worrying about losing
their jobs; the survey shows that about 61% of SMEs are worried about the sustainability of
their job.
Figure 4.9: Problem to motivation to quality of housing
Negative effect in %
120% 100%
90%
100% 78%
80% 41%
31%
60%
Negative effect in %
40%
Access to Insufficient Payment Inspection Contract
finance total processing condition
projec
t profit
As with most construction projects, each stakeholder has their own priorities. AAHDPO
officer criticize contractors because of their priority to maximize profit at any cost. Even if
31
51% of contractors agree profit as their priority, also 49% of respondents agree completion
on time and gaining experience are their highest priority.
From the survey made on customer satisfaction, more than 51% of Inhabitants are not
satisfied with the quality of the houses they are living in. Yet there is no independent office
to report them
The researcher raises the coordinator whether tests are available for prefabricated materials
or not. The coordinator replied that it is not necessary to undertake tests since the raw
materials are delivered by their office. He further explains that in the previous projects they
sometimes undergo tests, however, since SME-1 in this project are new the chance of SMEs
to cheat on mix ratio to get money is less rather they have technical problem to produce
quality product.
The Oromia housing department stated that the consultant is responsible for the approval
of material delivered and for supervision of quality works. The procedure the project follows
to ensure quality is rather easy upon completion of work AAHDPO check the work and give
the remarks to the consultant for correction. The officer added that even if there is no quality
control team established independently, we have a weekly management meeting held on site
to discuss about the progress of work and any problem encountered during the week. The
meeting is led by the consultant and involves consultant’s project coordinators and
management personnel from Oromia housing department
As per Oromia housing department project coordinator of the consultant found it difficult
to conclude there is no quality control team. He argues that in the weekly meeting they
discuss what they observe concerning material delivery, and work progress. In principle
there are also meetings which involve contractors and SMEs especially sanitary and
electrical workers every two weeks concerning of the project progress.
32
From the interview made with the Oromia housing department O officer and the project
coordinator, performance of contractors and SMEs measured and give rewards for good
work and penalizes for failure to comply with the contract. The reward is to give contractors
and SMEs more jobs and the penalty is to terminate them from the work they were engaged.
The performance is measured weekly based on the progress of the work with mainly focus on
physical progress.
The contractors and SMEs were also asked the availability of Total Quality Management
(TQM) in their respective work. Around 65% of respondent from contractors and 70% from
SMEs assured there is TQM system in place and its objective and focus is clearly stated.
However, around 55% of both respondents affirmed that there is no quality control team
independently established. The majority of the respondents (contractors) also added that
they promote quality construction through quality workmanship, performance
measurement, and through implementing quality assurance system.
33
Quality standard technical manual for condominium housing
Oromia housing department encompass equipped standard on 20/80 condominium

housing in 2004, it also comprises quality standard of condominium housing, following to
the standard the office equipped with technical manual of volume 1 to volume 4 on April,
2005. The technical manual is prepared with participation and collaboration of ministry of
federal affaire, Addis Ababa city government, GTZ/low-cost housing project, AAHDPO and
MH engineering consulting plc. From the four technical manual volume 2 is focusing on
quality standard of low-cost housing.
The manual has put standard for concrete work including mixing, hollow block concrete,
metal work, electrical installation, sanitary installation, pre-fabricated construction
material, flooring, painting, plastering, and ceramic tile laying.
According to the study, 61% of SMEs, 39% of contractors and 12% of consultants have no
information about technical quality standard manual of low-cost housing. Nonexistence of
testing mechanism for raw materials and prefabricated building components this expose to
use in inappropriate materials to the housing construction projects.
Figure 4.10: Respondents have no information about quality standard technical manual
70
61
60
50
39
40 SMEs
30 Contractors
20 12 Consultants
10
0 Percent of respondents have no information about technical
quality manual
34
Project awarding system of Oromia housing office
Most widely used procurement method in the construction sector of Ethiopia is tendering.
Sometimes the direct award is used for special type of projects. For instance, if the project is
urgent and to avoid time spent in a tendering procedure, if the project is too small, if eligible
participants are few, or if the project is unique in its character direct award is used. The
tendering procedure follows the Ethiopian construction laws for procurement of services or
procurement of works and the selection is normally based on technical or financial
capability of the participant or both.
The Oromia housing department considered as a special type of project because it was
formulated through a policy. The policy has two intentions, one is obviously to construct
houses with low cost and the other is to create employment. No tendering procedure was
necessary because the price is already set by the office and the intended participants are
already available.
Any contractor who has a construction license of less than grade-6 can register to participate
in the construction of condominium houses in Addis Ababa. Civil engineers who have the
educational background related to construction and the necessary work experience have the
right to get a construction license from their respective Sub-Cities. However, the type of the
license varies from Building Contractor/General Contractor of grade 9 to grade 1 (BC/GC 9-
1) based on the educational level of the manager, educational level and number of key
employees, and own capital of the company.
Up on registration, interested contractors are only expected to present their company

profile, VAT registration and renewal certificate together with their license. After
registration, the housing Development Office prepares training program for 3-5 days. The
training is prepared to give insight and knowledge about the project. Following the training,
the contractors are assigned to different project sites through the lottery drawn at the
AAHDPO main office. Contractual agreement for works contract are then signed between
AAHDPO and the contractors.
35
complaint. Thus, customer satisfaction is addressed in the survey because meeting customer
satisfaction is one of the performance indicators. The consultant stated that they are trying
to meet customer satisfaction through undertaking performance measurement and give the
feedback to contractors every two weeks. The construction officer from AAHDPO added that
it is difficult to satisfy all the customers with all the constraints the project has. He also
argues that not all the defects inside the houses are caused by construction fault, it could
sometimes cause by misuse of the utilities and fixture by the household.
Quality standard guidelines related to low-cost housing
In construction, the most possible sources of quality defects are poor quality construction
materials and poor workmanship. The construction projects in Ethiopia usually follow a
number of procedures to ensure the quality production. The most widely used procedures
include technical specification prepared as a guideline for detail of the works, undertake
tests for major construction material at the time of delivery, close-up inspection, risks
allocates and clearly.
In the project most construction materials are supplied by AAHDPO itself, for instance
cement and prefabricated material supplied to the main contractor. All material except sand
is delivered to SMEs-1 for the production of prefabricated materials. The responsibility of
approving the quality of the material is consultant. While conducting site visits it was
observed that three types of gravel with similar grain-size dumped side by side in front of
one of SMEs-1 (responsible for the production of pre-cast beam) production sites. Concrete
mix needs different sizes of gravel to ensure bondage between different materials used.
However, what was observed on the site was similar large size gravels and the SMEs were
manufacturing pre-cast beam using what is available on site. The supervisor explains the
situation that it is difficult for them to reject the material delivered because the client itself
supplies the material. He also added that we tried to notify the client (AAHDPO) about the
quality of construction material so many times but the situation never was improved.
36
Conversely the AAHDPO SMEs coordinator argues that they are satisfied with quality of
material they are supplying thus the office believe there is no need to undergo any tests.
A total of 44 contractors were assigned to "Addis Ketema and Nifas Silk Lafito" project and
only 38 are proceeding to work and the rest 6 contractors got terminated. AAHDPO
indicate the contractors as a defaulter for the termination. From their explanation, many
contractors ceased the work because of their incapability (financial constraints or lack of
management) to cope with the project.
On the other hand, In Ethiopia, there are no specific criteria to establish SMEs and it is done
voluntarily. Any interested citizens who wish to participate in the project can register
individually in their respective sub-cities based on their area of interest. No educational
background is required to select an area of specialization except for electrical works, which
sometimes require some experience or vocational school certificate. After registration, the
MSEs, development office prepares training program with the intention to build technical
and management capability of MSEs. The training is given for only 3-7 days based on their
selection of specialization, upon completion of the training, the sub-cities give certificate for
the participants. The trainees then form an association, which consists of two to twenty
members or can start working individually. The sub-city's SMEs development office then
certifies and gives recognition to the association formed.
The MSEs Development office then forwards the lists of the certified SMEs to the project
office upon request. Based on their area of specialization the MSEs are assigned to different
blocks through the lottery drawn on the project site.
37
Technical perspective
Oromia housing department were asked for their observation on the technical capability of
contractors and SMEs. Accordingly, both project coordinator and construction officer
responded that the technical skill of the contractors is different among different contractors;
some have good technical knowledge while others struggle to apply quality system because
of lack of technical skills. Technically majority of contractors have problem in following up
on the project as required.
Consultants found the technical skill of most SMEs inadequate. The coordinator of the
AAHDPO by its representative explains that when MSEs start to work they need to train and
guide them. Thus, the engineers from the consultants of and the client (AAHDPO) do most
of the job to show techniques and methodologies in the construction processes to the SMEs.
The knowledge transfer also depends on SMEs interest and readiness to learn and
accept. The
construction officer from Oromia housing department also added that for most SMEs it is
difficult to even read drawings and understand the moulds of construction material they are
producing.
AAHDPO rate technical know-how of the majority of SMEs and some contractors as poor.
What do the contractors and SMEs say about their own technical skill? To find out this the
survey uses indicators of technical skill adapted from the literature review as a checklist. The
most important indicator is how well they understand the contractual and technical
documents they are required to use while executing their work.
Contractors have the required educational background and work experience of similar
nature. As this is the case, the majority of the respondents (contractor) find the contractual
and technical documents clear and easy to understand. On the other hand, in relation to
their less educational background and lack of work experience, the majority of SMEs found
38
it difficult to understand the contracts and technical documents. (Figure 4.11) summarizes
the difference in the number of contractors and SMEs agreement on the clarity of different
types of contractual and technical documents.
Figure 4.11: Technical quality of SMEs and Contractors
90%
78% 80% 81%
80% 75% 71%
70% 59%
60% 42% 43% 39% MSEs in%
50% 31% 27%
21% Contractors in %
40%
30%
Contract Drawing Specification Quality Quality Bidding
document Assurance controle documen
procedur
Oromia housing unit office endeavor to develop quality of housing
Housing development in Oromia office agree that many contractors lack quality
management skill. One of the Oromia housing department management members points
out that there are different types of contractors; some contractors used to be employees and
few have some experience in fieldwork before joining this project. Thus, there is knowledge
and experience gap between the contractors themselves. Contractors.
who have experience perform well and carry out their task with due care and diligence. On
the contrary, there are contractors who do not feel responsible and may disappear ignoring
the contract agreement they signed. The Oromia housing department officer added that
many contractors do not check quality of material request and work progress and many are
not well organized in their working methodology and keeping data. Furthermore, MSEs also
have a problem with quality of work for condominium housing at large.
39
40
41
42
43
44
45
46
47
48
49
50
51
52
4.1.1 Communication and controlling quality of housing
As the project involves so many stakeholders, it is necessary to identify the type of

relationship and flow of communication among project participant. From the survey data
collected to find out when and how often each stakeholder usually communicates, the
majority of (more than 65%) SMEs affirm they communicate with AAHDPO for payment
follow up, material request, and for other type of meetings (out of the issue of housing
quality).
Nevertheless, only 46% and 40% of respondents communicate to AAHDPO when there is a
problem and when they have complaints concerning the project respectively. During the
communication 54% of SMEs found the AAHDPO supportive.
All contractors also communicate with AAHDPO for the same reason as SMEs SEs, in
addition, contractors do communicate with AAHDPO during provisional and final
acceptance. Of the respondents 70% of contractors found AAHDPO response supportive.
The other most important communication is between contractors and SMEs s because they
have a tied relation with each other to build quality housing. In the eyes of the contractors,
communicating with the SMEs s is difficult while SMEs perceive they have good relation
with the contractors. These varying opinions of stakeholders in the communication flow
reveal that there is a communication gap between stakeholders involved in the project.
Contractors were asked to identify the type of relationships exists on site. According to the
majority of the respondents 80%, blaming culture between them and the MSEs does exist
but they work jointly with the rest of the stakeholders. The AAHDPO also confirm the
existence of blame culture between contractors and SMEs.
53
Thus, when problems arise on site project offices need to solve it at the lowest level as
possible. However, 65% respondent of the contractors complains that whenever there are
problems or issues that need immediate measures and decisions they always need to wait
long. Thus, according to them effective problem-solving mechanism is not practiced on site.
4.1.2 Capacity building for SMEs and contractors by AAHDPO
Training support for contractor is 85% take the training and the remaining 15% area not
taken the training (see figure 4.12). The contractors receive different types of support from
HDPO. For instance, prior to the beginning f the project, AAHDPO organized a 3-4 days
training mainly concerned with improving management skill and introducing the program
to contractors.
Figure 4.12: Training support for small contractor
percent
15%
yes
no
85%
One of the support programs by AAHDPO in order to improve the performance of the
contractor is types of training to improve capacity building. According to respondent data
less wait is given to Quality management training type (figure 4.13 show you below).
Figure 4.13: Type of training support for contractor by AAHDPO
Type of Taining in Percent

80% 65%
60%
40% 10% 10% 10% 5% Type of Taining in Percent
20%
54
The training which was given by AAHDPO, the change on their quality performance (80%
disagree and neutral only 10% are agree) of their quality performance.
The contractors even argue that there has been no training instead it was just the orientation
of the program thus; it does not have anything to do with capacity building. They added that
the training organized is too short and not quality performance oriented. Most of them
criticized the training that it is mainly focused on introducing to the program. AAHDPO also
confirm that due to the limited budget and professionals, they are only able to prepare 3-4
days training.
There is a SME development office in every sub-city, which are responsible for recruiting
and facilitating training services for newly recruited SMEs. The training organized in
collaboration with AAHDPO and TVET. The training given is two types one is managerial
and the other is technical. The theory part of the training delivered by sub-sites focus on
management aspects that includes administration, accounting, profitability, and saving and
it takes up only 4-5 days. The duration for technical part is different for different
specialization. For instance, pre-cast beam production takes 5-10 days and electrical and
sanitary installation take about 10-30 days.
The findings reveal that they are quite a large number of SMEs who found the training not
easy and difficult to understand 52%. In addition, many SMEs found the training not
adequate to assure quality of housing; even it could not be applicable to this project.
55
From the survey made to find out the effect of other supporting schemes (financial,
material and equipment), the majority of the respondents either disagree or
neutral in their opinions. In the overall analysis, while 20% of SMEs confirm the
supporting schemes have a positive effect on their quality performance, 40% of
SMEs believe it has neither minor nor moderate effect. Especially for equipment
support, only 12% agree the support has no effect on their quality performance.
One of the reasons some of the respondents give for disagreeing is that the
equipment they have been provided with through loan gets broken so easily and
needs continuous maintenance.
5.1 Quality Summary
Quality, in housing projects should be regarded as the fulfillment of expectation of

those contributors involved in such projects. Although a significant amount of
quality practices has been introduced within the industry, attainment of reasonable
levels of quality in housing projects continues to be an ongoing problem. To date,
some research into the introduction and improvement of quality practices and
stakeholder (contractors, SMEs and consultants) management has been
undertaken, but so far, no major studies have been completed that
comprehensively examine how greater consideration of stakeholders‟ perspectives
of quality can be used to contribute to final project quality outcomes. This paper
aims to examine the requirements for development of a framework leading to more
effective involvement of stakeholders in quality practices thus ultimately
contributing to higher quality outcomes for 20/80 condominium housing projects.
Through an extensive literature review it highlights various perceptions of quality,
categorizes quality issues with particular focus on benefits and shortcomings and
also examines the viewpoints of major stakeholders on project quality. It proposes
a set of criteria to be used as a basis for a quality practice improvement framework,
which will provide project managers and clients with the required information and
strategic direction to achieve their own and their stakeholders‟ targets for
implementation of quality practices leading to the achievement of housing quality.
Towards Affordable Low-Cost Housing: Strategies of Low-Cost

Housing Development for the Low-Income
Conceptual Abstract
The issue of affordable housing remains to be interested to the researcher’s

all-over the world. Like elsewhere, in Ethiopia, Oromia the modern
technology is being used in housing building towards more affordable house
low cost. However, the constraints to obtain affordable houses are still
experiencing on Rwanda market and can be regarded as financial, cultural,
social, historical and institution framework. The high cost of capital, the high
price to rent and to own affordable houses remains to be the main challenge
for younger professionals and new tenants. On other side, high loan and
mortgage interest rates hindering ownership of affordable houses for the
middle- and low-income household sectors. As illustrated under section of
discussions, consumer attitude/culture and level of income are the main
factors towards affordable house. However, the Rwandan government may
attract foreign investors such United Nations agencies, development banks,
international NGOs, public and private partnership, World Bank and
derivatives in their program to fund affordable housing in order to reduce the
cost of capital and make it easier for all categories towards affordable
housing.
Introduction to interlocking housing system
When it comes to the health and vitality of our communities, affordable

housing is the key. The need for quality, affordable homes is an important
part of Sustainable Development Goals and the Ethiopia, Oromia vision as it
seeks to evolve into a sustainable community. With the economic issues the
world is facing the demand for affordability is greater than ever before.
The issue of housing affordability is becoming a more concern for several

researchers in many worlds in Africa as well as in Ethiopia, Oromia. The poor
management of the growth of housing cost has been affecting negatively any
African society in terms of finance. Therefore, reducing the effect of housing
issues could be a potential benefit to both low- and middle-income
2
households. one of the social problems includes housing where it brings

issues due to various social, economic and cultural implications. As seen
above, the matter of housing issues is threatening low- and middle-income
society. In these circumstances the housing issue is one of the most disturbing
structural and functional social problems, with certain cultural aspect. This
has been becoming a constraint for some middle-income groups, whereas it
had previously mainly been an issue for those on lower incomes.
Thus, the aim of this paper is to identify the actual challenges and way
forward related to the affordable and low-cost housing. Based on secondary
data from previous studies, this study measures different issues namely loan
availability, housing affordability, housing scheme’s policy, consumer
attitude, neighborhoods, housing quality, economic development. Therefore,
it is hoped that the results and discussion of this paper would help to instill
more understanding of the real issue related to housing. Because proper
knowledge in identifying the main issue of affordable housing can assist the
government of Rwanda and stakeholders to handle and effectively resolve
these issues, which might affect the citizen as well as the whole county health.
Indeed, it clear that though may require more effort from both public and
private sectors but working together could lead to low-cost affordable
housing. For instance, government should provide grants as subsidiaries to
soften high loans and mortgage interest rate which would encourage actors to
borrow money and invest in affordable housing on low cost.
Literature Review
The modern technology has been involved in housing building towards more
affordable house low cost. This simple house has more advantages of a
concrete block construction without the cost. Furthermore, low-cost materials
are locally available, affordable and therefore, because of innovation and
technology the poor families who constitute high portion of population can
afford low-cost houses. Indeed, most architects have received some training
in design solution for building and construction that use conventional
approaches, including low incoming project.
3
Actors and practices of low-cost building materials and

technologies
More research and development have been conducted for low-cost building
materials and technologies all over the world by involvement of many
organizations both national and international, as well as non-governmental
organizations.
The general speaking here was to lowering construction costs, especially in

regard to housing in order to make it affordable to more people who
predominantly in the low-income households.
Challenges in the provision of affordable housing in Rwanda
The main constraint to obtain affordable houses can be regarded as financial,

social and institution framework. The financial factors tackle middle economy
in the country, high cost of infrastructures, low level investments, difficulties
in accessing financial resources and escalating cost of building materials. All
these factors illustrated above make it tough for poor and middle class to
afford house. The challenges do not only include financial factors but also
social factors such as population explosion, rapid-rural to urban migration
and high poverty levels. As cited by institutional frameworks including
housing policies in place have failed to help a conclusive environment for
investment in affordable housing. Indeed, the land in urban areas in Ethiopia,
Oromia has been raised in recent years. The speedy influx of people to the
urban areas has generated high demand for land causing prices in residential
areas to increase so fast. In order to identify the key challenges in the
provision of affordable housing in Ethiopia, Oromia the study will consider
the key aspects involved in the provision of affordable housing, as discussed
below:
Land: In urban areas, land has been highly valued and is mostly in hands of
the central government and the local authorities. The other landowners are
speculators who looking to make a quick cash.
4
This has made land inaccessible to the more people including poor and
middle class who need it most but cannot afford premium price. Indeed,
according to government data the high demand of land with competing
interest groups and individuals has pushed prices up.
Infrastructure: The opening of new land for housing development or the

improvement of current information settlements require installation and
maintenance of infrastructures like water, road, electricity and security. These
infrastructure facilities provide crucial component of shelter provision.
Financial resources for housing
The financial bottle neck is a major limitation factor in housing development.

The sources of funds are few and the funds are on high price. Getting
qualified for mortgages are still too severe despite the fact that housing is still
in short supply. Renaud estimated that Inappropriate fiscal policies on real
estate financing, inability to finance house loans to groups, low affordability
due to poverty, high interest rates on mortgages, absence of graduated
payments of mortgages and lack of access to the large deposits of retirement
benefit funds have hindered the development of the housing sector.
The financial set up in the housing market in Ethiopia, Oromia as indeed

elsewhere is such that those offering funding seek to make a profit and
declare dividends for the shareholders because that is what they are in
business for. The money market is expensive due to relatively higher risks
that raise interest rates.
Public-private partnership in housing delivery
The common objective of public-private partnership in housing delivery is to

boost the productivity of housing sector, increasing housing affordability and
improve access to basic infrastructure. Ethiopia, Oromia mentioned that in
order to achieve the desired output of public-private partnership, the
discernment of the housing sector as a vast arena of social problems and a
drain on the economy must change. Housing must be considered as
5
significant economic sector with vital linkages to the overall economy of a

country.
Investment in affordable housing supports multiple social

objectives
The evidence shows that investment in affordable housing supports multiple

social objectives. This includes improvements to individual outcomes such as
employability, crime, health and wellbeing and community cohesion. It is
particularly important to assess the socio-economic impact of building
affordable homes in light of the large set of households where demand for
affordable homes cannot currently be met.
Indeed, this wide set of desirable socio-economic outcomes cannot be

achieved through Housing Benefit or other operating expenditure on
affordable housing alone. This is because many of these benefits are the result
of affordable housing being better able to meet tenants’ needs than
alternatives such as housing in the private rented sector. Therefore, public
investment in affordable housing is vital.
As result of investing in affordable housing, it will generate more

opportunities for both actors and tenants. For instance, more unemployed
people can get job opportunities and tenants could benefit from poorly
insulated private sector home to a good quality, insulated affordable home
would be less at risk of suffering from hygienic diseases and therefore, could
save household expenditure that would be spent on those diseases.
Methodology
The study has used primary and secondary data affordable and low-cost
housing measurements that collected from previous studies. Affordable
housing and its trends were illustrated in details through critical review of
literature. This study focused on the different criteria for affordable and low-
cost housing assessment. The same study arranged these criteria that
indirectly impact affordable housing by examining each of their functions.
6
Strategies in place of driving to words low-cost affordable

housing
The proposed strategies will be vehicles to enable affordable housing

providers to access lower cost debt for longer terms unlocking desperately
needed “fit-for-purpose” funding into the sector in Ethiopia, Oromia.
To access the lower cost capital it requires the government, private sector,
institutional investors and non-profit organizations to work together in new
and collaborative ways.
Figure 1: Low-cost affordable housing model.
This model is a viable solution that, with Government support and institution
investors in the line of Public Private Partnership could greatly contribute to
increasing the stock of affordable housing across the country. The model
7
would allow housing providers to access funding at lower interest rates and
for longer terms. The benefits of this financial model include:
1. Housing providers would have access to cities and towns which is more fit-
for-purpose, that is over longer term (of 15-25 years) and on lower cost terms.
2. Institutional investors will have a financing vehicle to achieve long term

secure and stable returns as part of their portfolio whilst also supporting the
affordable housing. The fund would have investment characteristics such as a
government-backed credit rating with appropriate risk adjusted returns that
are similar to other asset classes that institutional investors are familiar with.
Possible Ways of achieving low cost and affordable

housing in Ethiopia, Oromia
This section offers a set of strategies that can be used in Ethiopia, Oromia to
increase affordability while maintaining commercial viability. These strategies
are not a formula, but suggested ingredients that we expect will improve the
chances of success.
Strategy 1: Using simple materials and simple construction

techniques: Currently, in Rwanda, some Actors are using simple materials
and simple construction techniques to afford low-cost houses. Indeed, with
compressed earth block technology, people can construct a simple, efficient,
cost-effective house as it shown below:
This house will have all the advantages of concrete block construction without
the costs. To achieve good results, however, some new construction
techniques have been learned and simple machines and some tools are used
to compress blocks are shown below.
There are many different types of block presses. Some are manually operated
and others are powered with electricity or petroleum. Manual presses are
operated by semi-skilled workers, whereas powered machines need more
skilled operators and are more expensive to run.
8
Figure 4: Manual presses machine.
Figure 5: Electrical presses machine.
Bricks are either square or flat faced and they may interlock.
9
Interlocking blocks
These Interlocking blocks offer an advantage of requiring less (or no)

mortar in joint of blocks. Square blocks are more versatile for making curves
or intersection walls, as are conventional bricks.
However, in case no machine is available, a simple compressed earth block is

produced with the help of a mold and a tool to ram the earth into the mold. If
an appropriate mix is used and the bricks are well mixed and uniformly
compressed, better strength is achieved than using traditional molding
techniques. However, this technique is not consistent and does not achieve
the same results as a machine press. Furthermore, this method has some
downside of being very slow and only producing flat faced as shown in the
picture below (Figure 6):
Figure 6: Priced out; the challenges for young professionals.
10
The affordability issue continues to be a serious problem for people who keep
the Oromia region cities and towns and other cities running such as cleaners
and students and other people with low-income jobs. But it’s also becoming a
problem further up the income scale.
Strategy 2: Make land affordable:
Land is so expensive in urban area that it alone can make affordable housing
unviable. Therefore, creative methods often need to be used to secure land in
a way that makes sense for the project. Below are a few possibilities:
1. Land as equity: Find a land partner who can come in with the land as
equity. This means eventually paying for the land in the form of dividends,
which may align nicely with cash flows since revenue comes in first and the
whole payment does not need to be made at once.
2. Concessionary land: Find an organization or government agency with an

interest in low-cost housing and receive the land at a concessionary rate. A
low-income housing development is being planned on their land, enabling the
project to have much more flexibility with pricing than is typical because the
land is free. This same scenario could be replicated on government land or
land belonging to individual owners with an interest in affordable housing.
3. Land banking/Flipping land: Buying more land than is needed for the
project and reselling it at an increased price can dramatically reduce the net
cost of the land. Assuming significant appreciation of land value continues to
be the trend, this can even make the land essentially free. However, it does
not solve the challenge of financing the land since the initial purchase still
needs to happen upfront.
Strategy 3: Alternative Technologies: Using alternative technologies can be

challenging in the Rwandan market, but if done correctly it has the potential
to be an essential piece of bringing down the cost. The most important aspect
to be aware of is ensuring that the look and feel of the home is similar, if not
the same, as traditional techniques. When someone purchases a home,
whether they are rich or poor, they want to put their savings into old-
11
fashioned brick and mortar rather than a shiny new technology that is
untested and unfamiliar.
Strategy 4: Creative Financing: Given the unfriendly nature of the lending

climate in Rwanda, it can be hugely beneficial to think creatively about how to
raise funds. This reduced cost of capital (especially in such capital intensive
and highly leveraged projects) can make a big difference in the final unit
price.
Strategy 5: Subsidy: Government Subsidy: Cashing in on the subsidies

offered by the government seems straightforward, but many developers seem
unaware of what is offered, or simply disillusioned that it will be delivered.
Therefore, it is important to be familiar with the incentives and the path to
benefit from them.
Building subsidy into your model: While the best scenario is a development
where every unit is profitable, this is not always possible if the goal is to cater
to low-income populations. Therefore, the choice to incorporate cross-subsidy
is worth considering. This can be in the form of traditional cross-subsidy,
where the affordable units make a loss that is subsidized by middle-income
units. Or the affordable units can make a small margin while middle-income
units make a larger margin. Either scenario creates a mixed-income
development. Many housing experts believe that in order for affordable
housing to be financially viable, especially in an urban setting and without
alternative technologies, mixed-income is the only way to go.
Strategy 6: Design: Innovative designs and layouts can help to use space
efficiently and effectively. There have been many interesting experiments with
creative designs for affordable housing communities that save on cost and
space as well as create more community interaction and reduce the risk of
ghettoization. Most affordable housing communities that fail to increase
quality of life do so because master planning and design were overlooked.
They ignore the benefits of creating mixed-use developments with community
spaces and commercial areas. The importance of design should not be
underestimated!
12
Strategy 7: Incremental construction: In some contexts, incremental

construction increases the ability to provide homes at an affordable rate
Strategy 8: Self construction: Self-construction refers to homeowners

driving the construction of their own homes, which allows them to work
within their own financial requirements and timeframe. Self-construction can
be integrated into a model in a variety of ways. It can range from a private
sector version of the “site and services” model (infrastructure and foundations
are provided, and the homeowner purchases a plot and builds their own
home) to a simple ground floor structure constructed by the developer,
leaving residents with the ability to expand as their financial situation allows.
The key to successful homeowner-led incremental construction is ensuring

the quality of the construction both to maintain the look and feel of the
development and to maintain safety standards. This can be challenging and
requires a strong ongoing role from the developer or other affiliated agency,
sometimes in the form of technical assistance through engineering and design
support.
Strategy 9: Community supported labor: Labor costs can be cut by hiring

the current or future residents as construction labor. This strategy was used
by different investors and allowed them to both cut costs and to increase the
residents’ feeling of ownership in the project. However, it is worth noting that
it may take more management and is only viable for certain project designs
and construction techniques. Usually, the community workers must also be
accompanied by skilled labor.
Strategy 10: Avoiding speculation: What is the use of bringing down the
price if it does not reach your target market in the end? There is no clear
answer to keeping speculators from buying, especially since in many cases
they are not wealthy individuals buying plots in bulk, but middle-class people
who want to make little extra money. However, developing a strategy to avoid
this cannot be an afterthought and must be carefully developed from the
outset. Some potential strategies include:
i. Developing strict criteria for buyers to qualify
13
ii. Ensuring owner-occupation within a short time period
iii. Limiting the number of homes that can be purchased by one individual
iv. Withholding title deed for a period of time, such as 5 years, so owners are
unable to re-sell.
Strategy 11: Develop contracts with suppliers: Given the volatile economic
environment, materials prices can skyrocket and turn a healthy project
completely unviable. In order to avoid this, develop fixed rate contracts with
materials suppliers whenever possible. Some may even have Corporate Social
Responsibility programs, so do not be afraid to market the social impact side
of the project in order to negotiate better terms.
Housing supply: challenges

Challenge 1: Availability of finance
Project finance: Housing developments are extremely capital intensive and

highly leveraged. Yet it can be difficult to secure debt, especially at reasonable
rates, which are a key component of bringing down the cost for the end-user.
In fact, the cost of finance is one of the most prohibitive factors in the
Ethiopia, Oromia market.
Challenge 2: Volatile economic environment
Rapid inflation has caused large increases in the cost of materials and land.
On average, developers saw their costs increase by 20 percent in the last 6
months of 2017. It is difficult to maintain a healthy margin with this level of
inflation, especially if a large portion of the units were sold off plan at a price
that failed to predict the inflation. This is yet another reason to leave a lot of
leeway in your model and to understand that while there are many benefits to
selling off plan (i.e. selling homes before construct begins or is completed),
there are also consequences that should be thought through.
14
Affordable interlocking housing Recommendations
As illustrated, the main challenge to obtain affordable housing is high interest

rate and big gap between house prices and level of household income. To
balance this, the government have to intervene with special fund dedicated to
affordable houses that can act as both a subsidy; making the project more
financially viable and as a guarantee, allowing a credit constrained housing
association to borrow against this amount. On other side, the fund will adjust
the interest rate in order to attract more borrowers to invest in affordable
housing.
Types of open public space vary across cities and can broadly include parks, gardens,
playgrounds, public beaches, riverbanks and waterfronts. These spaces are also
available to all without charge and are normally publicly owned and maintained. In
many cases, however, they are accessible during daylight hours only. Box 1
summarizes hierarchies of public open spaces based on their size and coverage area.
CHALLENGES THAT LOW-INCOME EARNERS FACE IN

ACCESSING DECENT HOUSING IN URBAN AREAS
The shelter is one of the essential human basic needs since it is ranked among the top
three of human needs. Providing for adequate and affordable housing in any country is
very significant because housing stimulates the growth of the national economy.
According to, houses are permanent structures in which human beings live in. It is also
be referred to as home, building or structure that acts as the dwelling or place for
habitation by human beings.
The term "house" comprises different kinds of dwellings, ranging from rudimentary
huts of nomadic tribes to free standing modern individual structures. Furthermore,
Jibe referred to it as a place of residence which is constructed as a habitat for one or
more people. The housing comprises of durable assets, which contributes to the more
15
substantial proportion of a country's wealth and on which households spend a

significant amount of their income (Hoek-Smit, 2011). Basing on these reasons, housing
has become a regular feature in economic, social and political
debates often with highly charged emotional contents. The right to have access to
decent and affordable housing is stipulated in the international law under Article 11 of
the 1966 International Covenant on Economic, Social and Cultural Rights (ICESCR) it
provides for "the right of everyone
to an adequate standard of living for himself and his family, including adequate food,
clothing, and housing, and to the continuous improvement of living conditions". Kenya is party
to ICESCR, having ratified it in 1972. Article 25 (1) of the Universal Declaration on Human
Rights (UDHR) sets out the basis for the right to adequate housing by providing that:
"Everyone has the right to a standard of living adequate for the health and well-being of himself
and of his family, including food, clothing, housing, and medical care."
16
37. General Executive Summary

1. Project name GODO HOUSING AND SMART REAL ESTATE
AFRICAN HOLDING SHARE COMPANY
(By shareholders and partner developers from international and local developers)
2. Project Type: 2B+SB+G+22+3DH+T, THREE ZONE APARTMENTS,
STANDARD, MIDDLE AND LUXURY 35%,35% AND 30 % WALL STREET CENETR,
Multipurpose Service, Commercial and digital market exhibitions, Business,
Entertainments and Conference Building, Restaurants and bars Playground and
Spa and Sport Centers ,2 basement parking and semi basement exhibition center,
green area top podium and 14 set floor green and entertainment circulates
special zone …etc.
3. Nationality: LOCAL ETHIOPIAN (SHARE HOLDER, DEVELOPER) AND FOREIGN

PARTENERS
4. Project Owner: AFRICA HOLDDING SHARE COMPANY
5. Project location: ADDIS ABABA, ETHIOPIA: CITY RENEWAL SLUMS ZONE
“MERKATO “HIGH COMMERCIAL CBD DESITRICT.
6. Project composition: 3 TYPES OF APARTEMENT ,HOUSING AND 4 FLOR
Multipurpose commercial complex Building (2B+SB+G+22+3DH+T SLAB with
technical floors ) used for diverse Apartment floors and 3 standard
typology ,commercial Business centers like Banking & insurance, super market,
shops, Restaurant, café, Beauty salon, Pharmacy, Guest house and bed rooms ,
floors for gov’t and Merkato investors ,exhibitions center for 1000 seat with
others small meeting and training center ,Youth and children center for
entertainment ,Apartment Good space arrangement ,Eco- Green ecological
terrace and city view special restaurant and café at podium ,With public
community park …etc.
7. Premises required: 20,000.00 m2 (Renewal site from Merkato, Arada sub city area).
Second Phase Different Area Inner City Addis Renewal Area
50 ,000.00 m2 to 100,000.00 m2 land to next project we will expect.
8. Employment opportunity: 3,150 individuals on permanent 5,850 on casual basis
9. Social and Economic Benefit: Provide Better Apartment and Smart real state eco -
city and Service, Employment Opportunities, Generation of income and Benefits
for the local people and new urban future and corridor Development and Tourist
Attraction Center and Service.
17
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African Holding Share Company GODO VILLAGE SHEGER CITY

MODERN INTERLOCKING AFFORDABLE

HOUSING PROJECT TO SHEGER CITY

OWNER: African Holding Share Company

PREPARED BY: JASPER ENGINEERING GROUP AND PARTENERS

ARCHITECTS AND ENGINEERING PLC.

Project awarding system of Oromia housing office................................................................................................35

Introduction to interlocking housing system..............................................................................................................2

Financial resources for housing...................................................................................................................................5

3. Land banking/Flipping land:............................................................................................................................11

Strategy 3: Alternative Technologies:.................................................................................................................11

Building subsidy into your model:.......................................................................................................................12

Strategy 7: Incremental construction:..................................................................................................................13

Strategy 8: Self construction................................................................................................................................13

Strategy 9: Community supported labor:............................................................................................................13

Strategy 10: Avoiding speculation:......................................................................................................................13

Strategy 11: Develop contracts with suppliers:...................................................................................................14

Housing supply: challenges........................................................................................................................................14

Challenge 2: Volatile economic environment.....................................................................................................14

Affordable interlocking housing Recommendations...............................................................................................15

Sustainability of a large-scale housing development such as the City Block is

Definitions of Terms and Concepts

Household: - consists of a person or group of persons, irrespective of whether related or

slum dwellers; and thereby bringing sustainable socio-economic development, established a

procedures in QC involve planning, coordinating, developing, checking, reviewing and

As the customer's perspective of quality levels is important (Deming 1986), performance

Thus, cost-effective and alternative construction technologies reduce construction cost by

Audits: To verify that quality procedures are being followed.

Management Review: Reviewing quality systems data quality metrics to

Major role players on quality of condominium housing

Potential differences in the quality of housing delivered between Grade 2 to 4 contractors

1. A medium enterprise is defined as an enterprise which employ fewer than 250

annual balance sheet not exceeding EUR 43 million.

According to Ethiopian development strategy 2011, MSEs are categorize as follow:

Measuring housing quality

Accurate construction planning is a key determinant in ensuring the delivery of a quality

Benchmarking quality of housing

competitors in construction increasing at a vast rate, construction organizations all around

According to (Alarcon and Serpell 1996) benchmarking is considered to be a new topic

Internal Benchmarking is where a contractor aims towards identifying improvement areas

Competitive benchmarking is a comparison between the processes of companies operating

According to (Mohamed 1996) generic benchmarking is when the industry as a whole

Common quality problem in low-cost housing

Quality problem in newly completed buildings is becoming a serious phenomenon as lower

Figure 2.1 conceptual framework

Motivation to improve quality of housing

Figure 4.9: Problem to motivation to quality of housing

Quality standard technical manual for condominium housing

Oromia housing department encompass equipped standard on 20/80 condominium

Project awarding system of Oromia housing office

Up on registration, interested contractors are only expected to present their company

Quality standard guidelines related to low-cost housing

Figure 4.11: Technical quality of SMEs and Contractors

Oromia housing unit office endeavor to develop quality of housing

4.1.1 Communication and controlling quality of housing

As the project involves so many stakeholders, it is necessary to identify the type of

4.1.2 Capacity building for SMEs and contractors by AAHDPO

Type of Taining in Percent

5.1 Quality Summary

Quality, in housing projects should be regarded as the fulfillment of expectation of

Towards Affordable Low-Cost Housing: Strategies of Low-Cost

The issue of affordable housing remains to be interested to the researcher’s

Introduction to interlocking housing system