Journal of IT and Economic Development 7(1), 15-24, April 2016 15 Delay Analysis of Construction Projects B. Prakash Rao Department of Civil Engineering ,MIT Manipal-576104, Manipal University, Karnataka, India [email protected]; [email protected] Spurthy C Shekar, Nikita Jaiswal, Aman Jain, Anubhav Deep Saxena MIT Manipal, Manipal University, Karnataka, India Abstract Construction delays can be defined as the late completion of works compared to the planned schedule or contract schedule. Construction delays can be minimized only when their causes are identified. The objective of this study is to identify the major causes of construction delays in India; in particular the Manipal Town. This study is carried out based on literature review and a questionnaire survey. The questionnaire was designed based on the forty two factors of delays under six distinct categories targeting the contractors, clients and consultants. The Likert’s scale of five ordinal measures is used in this survey. The level of importance of each factor of delays is established by computing Relative Importance Indices (RII).The analysis is made using Microsoft Excel. The major cause of delay out of 42 causes is identified in the category of Owner Related Factors which is due to delay in payments having RII-0.812 Key Words: Construction delays, Questionnaire, Likert scale, Factor of delays, Relative importance indices Introduction Delay is generally acknowledged as the most common, costly, complex and risky problem encountered in construction projects. Because of the overriding importance of time for both the Journal of IT and Economic Development 7(1), 15-24, April 2016 16 owner (in terms of performance) and the contractor (in terms of money), it is the source of frequent disputes and claims leading to lawsuits. Delays caused by the client such as late submission of drawings and specifications, frequent change orders and incorrect site information generates claims from both the main contractors and subcontractors which many times entail lengthy code battles with huge financial repercussions. Delays caused by contractors can generally be attributed to poor managerial skills. Lack of planning and a poor understanding of accounting and financial principles have led to many a contactors downfall. Delays can be minimised when their causes are identified. Identification of the factors that contributed to the causes of delays has been studied by numerous researchers in several countries. Delay is a situation when the contractor, consultant and client jointly or severally contributed to the non-completion of the project within the original or the stipulated or agree contract period. Construction delays are for the most part costly and completing projects on time is beneficial to all the parties. Therefore, it is essential to identify the actual causes of delay in order to minimize and avoid the delays and their corresponding expenses. Types of delay Before analysing construction delays, a clear understanding of the general types of delays is necessary. There are four basic ways to categorize delays: Critical or Non-Critical, Excusable or Non-Excusable, Concurrent or Non-Concurrent and Compensable or Non-Compensable Journal of IT and Economic Development 7(1), 15-24, April 2016 17 Role of construction actors in the industry There are diverse interests in the construction industry. The principal interests or actors in the construction industry are: Client, Consultant and Contractor Literature survey 1. Chan and Kumaraswamy (1997) conducted a research on potential delay factors in Hong Kong construction projects as seen by clients, consultants. Five principal factors are identified: Poor risk management and supervision, unforeseen site conditions, slow decision making, client initiated variations and work variations. 2. Mezher and Tawil (1998) conducted a survey of the causes of delay in construction industry in Lebanon from the view point of owners, contractors and architectural or engineering firms. It was found that the owners had more concerns with regard to financial issues; contractors regarded contractual relationship the most important, while consultants considered project management issues to be the most important causes of delays. 3. Sweis G., Sweis R., Abu Hamad., and Shboul (2008) studied the causes of delay in residential projects in Jordan and concluded that financial difficulties faced by the contactor and too many change orders by the owner are the leading cause of construction delay. 4. A paper on Calculation of Contingency in Construction Projects by Ali Touran (2003) presents a probabilistic model that considers the random nature of change orders and their Journal of IT and Economic Development 7(1), 15-24, April 2016 18 impact on the cost and schedule of a construction project. The model incorporates uncertainties in project cost and schedule and calculates the contingency based on the level of confidence specified by the owner. It assumes a Poisson arrival pattern for change orders in a construction project. The effect of schedule delays in further increasing the project cost is considered explicitly and the effect of correlation between change orders is discussed and analytically considered. The proposed model may be used for budgeting purposes at the early stages of project development. 5. Fugar and Agyakwah-Baah (2010) investigated the causes of delay of building construction projects in Ghana to determine the most important according to the key project participants. All major stake holders agreed that the top ten most important factors causing delay in Ghana are: delay in honouring payment certificates, underestimation of the cost of projects, underestimation of complexity of project, difficulty in accessing bank credit, poor supervision, underestimation of time for completion of projects by contractors, shortage of materials, poor professional management, fluctuation of rises or rising cost of materials, and poor site management. 6. Assaf, Al-Khalil and A-Hazmi (2011) summarized main causes of delay in large building construction projects in Saudi Arabia. The identified approval of shop drawings, delays in payment to contractors and the resulting cash problems during construction, design changes, conflicts in work schedules of sub-contractors, slow decision making and executive bureaucracy in owner’s organizations, design errors, labour shortage and inadequate labour skills as the most important causes of delays. Journal of IT and Economic Development 7(1), 15-24, April 2016 19 Methodology The preliminary data for this research was collected through a literature review and the questionnaire survey targeted at some contractors, clients and consultants in some projects in Manipal. Relative Importance Index (RII) for each of the identified factors causing delay was calculated. Identification of delay factors In this step, some of the causes for delay that may be encountered in a construction project were identified. The causes of delay are then classified into six broad categories depending on their nature and mode of occurrence: Consultant related factors, Contractor related factors, Owner related factors, Design related factors, External related factors and Project related factors Journal of IT and Economic Development 7(1), 15-24, April 2016 20 The factors causing delays are summarized in Table 1 Table 1: Overall group and factors causing delay. Group Consultant related Contractor related Owner related Design related External related Project related Factors causing delay Lack of experience of consultant in construction projects. Delay in approving major changes. Delay in performing inspection and testing. Inadequate project management assistance. Late in reviewing and approving design documents. Poor communication and coordination with other parties. Delays by subcontractor. Inadequate contractor experience. Contractors planning and scheduling problems. Inadequate site supervision. Shortage of labour. Slow site clearance. Poor management and execution. Equipment breakdown Unavailability of equipment Inadequate skill of operators. Delay in payments. Slow decision making. Delay in approving documents. Delay in producing documents. Variations during construction. Suspension of work. Design changes during construction. Late issuance of instruction. Misunderstanding of owner’s requirement by design engineers. Poor use of design software. Inadequate details. Accidents. Changes in rules and regulations. Trade unions. Price fluctuations. Unfavourable weather conditions. Delay in obtaining permission. Non availability of utility in site. Problems with neighbours. Unforeseen ground conditions. Shortage of materials. Project complexity Disputes. Original contract duration is short. Lack of communication between parties. Speed of decision making involving all parties. Journal of IT and Economic Development 7(1), 15-24, April 2016 21 Questionnaire design The questionnaire was designed based on forty two factors under six categories which were identified to contribute to the cause of delays. A questionnaire survey was conducted to assess the perception of contractors, clients and consultants. The questionnaire is mainly based on Linkert’s scale of five ordinal measures from 1 to 5 according to the level of contribution Data collection and Analysis Questionnaires were distributed to the following a number of constructions parties of the projects in Manipal area. Data obtained through these questionnaires are analysed by computing Relative Importance Indices (RII) Relative Importance Index The five point Likert scale ranging from 1(very low importance) to 5(very high importance) was adopted to quantify results of survey. The level of importance of each factor is established by comparing Relative Importance Index for each of the factor as follows: RII = ∑W/ (A*N) Where, W – Weighting given to each factor by the respondents (ranging from 1 to 5). A – The highest weight (i.e. 5 in this case). N – The total number of respondents. The RII ranges from 0 to 1, higher the value of RII more important was the cause of delays. These ranking make it possible to compare the relative importance of the factors. Result analysis All the questionnaire survey was done from project managers of the project or project engineer at the site. In some cases consultant gave the answers on behalf of their clients, both from the owner and the contractor side. Even telephonic and email reply was accepted since it was difficult to get Journal of IT and Economic Development 7(1), 15-24, April 2016 22 the direct one to one meeting with the project managers. The analysed data is summarized in Table 2 Table 2: Data analysis Group of factors Consultant related factors Sl. No 1= very low 2= low 3= medium 4= high 5= very high 3 Mean value Rank 0.636 16 0.563 23 Lack of experience of consultant 1 7 13 9 2 Delay in approving major changes. Delay in performing inspection and testing. Inadequate project management Delay in approving design documents. Poor communication and coordination with other parties. Delays by subcontractor. Inadequate contractor experience. Contractors planning and scheduling problems. Inadequate site supervision. Shortage of labour. Slow site clearance. Poor management and execution. Equipment breakdown Unavailability of equipment Inadequate skill of operators. Delay in payments. Slow decision making. Delay in approving documents. 2 7 19 5 1 5 15 10 2 0.642 15 2 9 14 7 1 0.576 22 1 2 14 12 4 0.697 9 7 12 10 4 0667 13 11 7 5 10 0.685 10 1 2 15 7 8 0.667 13 1 2 15 13 2 0.679 11 14 6 1 12 0.667 13 1 1 4 3 6 12 14 6 12 14 9 5 1 11 0.678 0.667 0.739 12 13 4 3 4 10 7 12 14 6 7 2 1 0.563 0.563 23 23 4 5 13 5 6 0.624 17 1 1 1 2 5 12 13 15 4 13 9 16 4 3 0.812 0.703 0.648 1 8 14 4 5 6 1 2 3 4 5 6 7 8 9 10 Owner related factors Importance 1 3 Contractor related factors Factors causing delays 1 2 3 Journal of IT and Economic Development 7(1), 15-24, April 2016 23 4 5 Design related factors 6 1 2 3 4 External related factors 5 1 2 3 4 5 6 7 8 9 Project related factors 10 1 2 3 4 5 Delay in producing documents. Variations during construction. Suspension of work. Design changes during construction. Late issuance of instruction. Misunderstanding of owner’s requirement by design engineers. Poor use of design software. Inadequate details. Accidents. Changes in rules and regulations. Trade unions. Price fluctuations. Unfavourable weather conditions. Delay in obtaining permission. Non availability of utility in site. Problems with neighbours. Unforeseen ground conditions. Shortage of materials. Project complexity. Disputes. Original contract duration is short. Lack of communication between parties. Speed of decision making involving all parties. 3 5 12 13 0.612 18 1 3 7 17 5 0.733 5 2 2 5 5 7 9 12 7 7 10 0.703 0.709 8 7 5 10 7 11 0.745 3 2 11 14 4 2 0.581 21 7 13 6 3 4 0.503 27 4 9 2 11 2 7 8 11 20 8 11 4 2 0.557 0.545 0.557 27 25 24 3 7 4 14 2 5 3 3 5 13 11 8 10 0.509 0.678 0.642 26 12 15 3 7 13 8 2 0.594 19 7 9 11 5 1 0.503 27 4 17 7 5 0.478 29 10 7 7 7 2 0.503 27 2 3 8 1 3 3 14 8 14 18 18 8 7 4 3 6 2 4 3 0.679 0.612 0.49 0.593 11 18 28 20 10 17 6 0.775 2 10 8 9 0.721 6 6 11 3 Conclusion 1. The major causes for delay by owners is delay in making the payments having RII 0.812 and ranking 1st among 42 factors. Journal of IT and Economic Development 7(1), 15-24, April 2016 24 2. The major causes for delay by project related factors is lack of communication between parties having RII 0.775 and ranking 2nd among 42 causes. 3. The major causes for delay by design related factors is late issue of instruction having RII 0.745, ranked 3 among 42 factors. 4. The major causes for delay by contractors is poor management and execution having RII 0.739 and ranking 4th among 42 factors. 5. The major cause for delay by the consultant related factors is delay in approving design document having RII 0.697 and ranking 9th among 42 causes. 6. The major causes for delay by external factors is delay due to Shortage of materials and price fluctuations ranking 11th and 12th respectively. References Chan, D. W., & Kumaraswamy, M. M. (1997). A comparative study of causes of time overruns in Hong Kong construction projects. International Journal of project management, 15(1), 55-63. Mezher, T. M., & Tawil, W. (1998). Causes of delays in the construction industry in Lebanon. Engineering, Construction and Architectural Management, 5(3), 252-260. Sweis, G., Sweis, R., Hammad, A. A., & Shboul, A. (2008). Delays in construction projects: The case of Jordan. International Journal of Project Management, 26(6), 665-674. Touran, A. (2003). Calculation of contingency in construction projects.Engineering Management, IEEE Transactions on, 50(2), 135-140. Fugar, F. D., & Agyakwah-Baah, A. B. (2010). Delays in building construction projects in Ghana. Australasian Journal of Construction Economics and Building, The, 10(1/2), 128. Assaf, S. A., Al-Khalil, M., & Al-Hazmi, M. (1995). Causes of delay in large building construction projects. Journal of management in engineering, 11(2), 45-50.
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