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Managing Delays in Construction Projects Aiming at Cost Overrun Minimization
Hubert Anysz 1
Published under licence by IOP Publishing Ltd IOP Conference Series: Materials Science and Engineering , Volume 603 , Issue 3 Citation Hubert Anysz 2019 IOP Conf. Ser.: Mater. Sci. Eng. 603 032004 DOI 10.1088/1757-899X/603/3/032004
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1 Warsaw University of Technology, Civil Engineering Department, Al. Armii Ludowej 16, 00-637 Warsaw, Poland
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The effects of the delay in construction contract execution are always negative for every party being involved. Cancelling the delays of the time schedule means the use of more production means that it was planned. It creates an additional cost. If the delays of the schedule are not cancelled, the contractor suffers from the cost increase. The penalties arisen from not keeping the milestones or the completion date are expected too. There is a trade-off: cancelling delays spending additional money now (during the contract execution) or executing a delayed contract till its end awaiting for its final settlement (showing the cost increase) and possible penalties. There is no one, correct answer how to manage a delayed construction project. There is a natural unwillingness to spend money over the budget. Nevertheless, the delayed completion date can cause much higher contractor's expenses, than cancelling delays during the contract execution. The decisions made by the project manager depend on various factors discussed in the paper. A delay concerning the single task increases the cost of its execution at a different level. The same, the level of influence of delaying a single task, influences the completion date with varied strength. These influences depend on the location of the task in a net model – the base of a schedule. The tasks located on the critical path – defined in the Critical Path Method – should be of the special care. However, delays on not critical tasks can also break the budget and the planned completion date. The nature of delay is important as well. Lowered productivity of a workers' brigade can make the execution of the task longer, the same as forced breaks in their efficient work. The reaction of a site manager to such causes of delay should be different, as the origin of the delays is different. The impact of the delay noticed on the single task is discussed in the paper and possible reaction (varied on the type of a delay and a task location too) are proposed. The proposed solutions aim at cost minimizing considering the total expenses spent by a contractor and possible penalties in case of the delayed completion date of a construction contract.
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Factors Affecting Delays in Infrastructure Construction Projects
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- Arun Kumar Ahuja 10 &
- Awanish Gaurav 10
Part of the book series: Lecture Notes in Civil Engineering ((LNCE,volume 172))
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- International Conference on Advances in Civil Engineering
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Construction delays have always been a major cause of concern for construction industry and attained focus from many researchers. Projects having long life cycle, particularly infrastructure projects, are highly uncertain in delivering projects within contractual time frame. Infrastructure projects in developing nation have seen various factors impacting the project delivery which in turn measured as overall time, cost and quality of projects. An attempt is made in this paper to understand and to identify various factors contributing to delays based on claim settlement and to see the pattern followed by these factors. In this study secondary data have been collected from reliable sources which translate verdicts of arbitration cases arise in construction industry. The collected data have been analyzed to identify the factors affecting construction project delays and reflecting in decisions of verdict. The study reveals that the factor “delay in taking approval and availing permits to the contractor from statutory authorities and handover” plays predominant role and generally resulted in monetary compensation and time extension, factor titled “delay due to change orders/change in scope of work and work stoppage” generally resulted in time extension and “delay due to late handing over of site and late delivery drawings and documents” has resulted in monetary compensation. Findings of this study enable us to exercise suitable strategy during project execution as a part of decision making.
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Arun Kumar Ahuja & Awanish Gaurav
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Ahuja, A.K., Gaurav, A. (2022). Factors Affecting Delays in Infrastructure Construction Projects. In: Laishram, B., Tawalare, A. (eds) Recent Advancements in Civil Engineering. ACE 2020. Lecture Notes in Civil Engineering, vol 172. Springer, Singapore. https://doi.org/10.1007/978-981-16-4396-5_10
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EXAMINING THE CAUSES AND EFFECTS OF CONSTRUCTION PROJECT DELAYS: AN EMPIRICAL STUDY BASED ON EXPERIENCES BY SPVET PROJECT IMPLEMENTING PARTNERS IN MALAWI
2021, UNIVERSITY OF BOLTON
Most of the construction projects commence or are completed after extensions on initial timelines. This study examined the causes and effects of delays in completion of construction projects in Malawi, based on experiences by individuals and institutions who were part of the implementers of the SPVET project implemented in Malawi. To achieve the objective above, the study employed a mixed methods design where both quantitative and qualitative research methods were used to capture and analyse data on respondent perspectives about the causes and effects of delays to start or finish construction. Both structured and open-ended questions were included in the interview questionnaire and responses to structured questions sought to objectively triangulate those to open-ended questions. Data from the research study was analysed using qualitative and quantitative techniques, with the quantitative techniques validating the qualitative data.The study found out that most of the causes of delays to finish construction projects are human in nature and includes unresponsive funding disbursement practices, lack of urgency in decision-making, communication challenges, and poor project management practices. With regard to the effects of the delays, the study found out that most of the recognized effects include deferred enjoyment or provision of services, cost overruns, staff turnover, resultant constraints on infrastructure improvement efforts, changes on the commitments of funders,distortions on schedules and income flows, and reputational damage. Based on the findings, the study recommends that project implementers and funders needed to ensure more stable funding, thoroughness and realism in planning and budgeting, implementation capacity and monitoring, synergy during implementation capacity and monitoring, adherence to terms and conditions, and participatory design phase
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Please note you do not have access to teaching notes, underlying causes and mitigation measures of delays in construction projects: an empirical study.
Journal of Financial Management of Property and Construction
ISSN : 1366-4387
Article publication date: 25 February 2020
Issue publication date: 16 July 2020
The purpose of this study is to contribute to the theory and practice of project management in the construction industry by identifying the primary causes and extracting the underlying causes of construction delays and providing recommendations on delay mitigation measures.
Design/methodology/approach
AA survey was used to identify the importance of 47 causes of delays. The relative importance index was used to rank them, factor analysis was applied to extract the underlying causes and focus group interviews were used for discussion and development of mitigation measures.
Six of the ten most important causes are in the top ten universal delays in construction projects. Factor analysis revealed six underlying causes: improper planning, poor consultant performance, inefficient site management, owner influence, bureaucracy and sub-standard contracts.
Practical implications
The owner/sponsor/client must have adequate engineering and project management skills to be able to evaluate proposals and contractors more accurately, economically and technically. The bidding and contract award process should focus on the most economically advantageous proposal and contracts should provide for mechanisms for managing risks while executing projects. Contractors should select reliable, high-quality subcontractors and suppliers and should have competent site managers.
Originality/value
This work expands and improves the understanding of the causes of delays in construction projects by providing an empirical study of the causes of delays and respective mitigation measures in Portugal.
- Project management
- Construction/project management
- Delays in project delivery
- Factor analysis
- Delay causes
- Construction industry
Arantes, A. and Ferreira, L.M.D.F. (2020), "Underlying causes and mitigation measures of delays in construction projects: An empirical study", Journal of Financial Management of Property and Construction , Vol. 25 No. 2, pp. 165-181. https://doi.org/10.1108/JFMPC-03-2019-0029
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Copyright © 2020, Emerald Publishing Limited
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study, 76% of the contractors & 56% of the consultants specified a delay ranging between 10%. to 30% and about 25% of the consultants specified a delay of 30% to 50% of original contract. duration ...
2.1. Delays in construction project. Project delay can be defined as an incident that causes an extension in the time for the completion of all or part of a particular project (Chan & Kumaraswamy, Citation 2014).The delay can also be defined as the time overrun, either ahead of the date for the completion of the project as specified by the contract or further than the extended contract period ...
Many research works have also suggested that challenges associated with delay in different projects particularly, in construction project can be reduced drastically by a vigorous implementation of project management concepts (Azis et al., 2012; Fashina et al., 2020b). Hence, a vital factor that contributes to this challenge is the absence of ...
The effects of the delay in construction contract execution are always negative for every party being involved. Cancelling the delays of the time schedule means the use of more production means that it was planned. It creates an additional cost. If the delays of the schedule are not cancelled, the contractor suffers from the cost increase.
Analysing construction projects in India, Doloi et al. [30] reported that one of the most critical factors of project delay is the lack of commitment. In 2013, Akogbe et al. [10] prioritised the delay causes peculiar to Beninese construction projects by considering their severity and frequency of occurrences as evaluated by the respondents.
4. Project Delay Analysis Using the Various Techniques 4.1. As-Planned vs. As-Built Under this method, all delaying events (EC, EN and NN delays) encountered on the project are depicted on the as-built schedule. The difference between the as-planned and as-built completion dates ", the Delay 3 10
The paper reports the results from an investigation of delays in construction projects in the Oil-Gas-Petrochemical (OGP) sector using SNA. The method's capacity to identify and rank delay causes, which can assist managers in selecting appropriate measures for eliminating them, are empirically examined and discussed.
The most influential factors were: inefcient site management, lack of commitment, fi. improper planning, poor site coordination, lack of clarity in project scope; substandard contract and lack of communication. In Denmark, Lindhard and Wandahl [15] inves-tigated causes of delays through the Last Planner System theory.
Delay is the main source of dispute and its proactive and timely resolution plays a core role in business success. However, most construction projects fail in resolving time-related disputes [3-5] and this interminable issue triggers the researchers' attention to concentrate on studies to overcome time-related disputes.
Delays have commonly been a serious problem. This study aims to evaluate, criticize, and synthesize the literature on the causes of delays in construction. A total of 70 journal articles from 33 countries focussing on identifying the causes of delays were critically analysed.
Research Proposal Date: 10.08.2019 Master Thesis for Mr. GAURANG GHULE Student number: S0562614 Topic: Delay & Cost Overrun in Construction Projects: Implementation of Lean Techniques for minimizing the risks on Time & Cost General Introduction: The Construction business greatly affects the economic structure of most developed countries.
Extensive research work has already been performed to establish the argument that delays are the potential source of conflicts in construction projects. They negatively affect the project participants in perspective of work progress, mutual relationship & communication, monetary matters and can lead to conflicts, disputes, and other legalities ...
Thorat et al. [] defined delay as "the extension of time for the completion of the project".It can also be defined as "failure to complete the project in the targeted time". Delay of the construction is one of the major problems which affect the economy and has severe consequences for most project goals [].According to Sunjka and Jacob [], project delay is risky, costly and has ...
ill-communication that are the prominent causes of delays in a project. While reviewing literature, it has been observed that most of the research and findings are conducted in the horizon of delay analysis, whereas only a few of the research papers, journals are available to understand the claims management and claim settlement in the ...
It was determined that the three main causes of construction project delay are problems that occur during execution, administrative problems and labor conflicts; together they account for almost 80 percent of the causes found in the literature. Moreover, it was deduced that problems during execution are based on unpredictable events, while ...
This paper proposes suitable measures to manage delays in construction projects, improving the quality of work and managing cost and schedule overruns. Keywords . Project delays, construction industry, project management . 1. Introduction. In the modern era, the construction industry significantly contributes towards the global economy through ...
Furthermore, the synthesis of the findings with respect to some of the classic theoretical perspectives on organizational performance and inefficiency will help in validating existing findings in literature on human or behavior related causes of construction project delays. 1.6. Research Objectives and Questions 1.6.1. Research Objectives i.
The purpose of this study is to contribute to the theory and practice of project management in the construction industry by identifying the primary causes and extracting the underlying causes of construction delays and providing recommendations on delay mitigation measures.,AA survey was used to identify the importance of 47 causes of delays.
cause delays in construction project delivery in Egypt and Saudi Arabia. In order to propose solutions to overcome delay causes or mitigate their effects from the perspective of Total Quality Management (TQM). 1.6. Research Problem It was common for construction projects to encounter many challenges, including delays in completing contracts