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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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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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research proposal on managing delays in construction projects

  • Arun Kumar Ahuja 10 &
  • Awanish Gaurav 10  

Part of the book series: Lecture Notes in Civil Engineering ((LNCE,volume 172))

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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

Profile image of Pachalo Mfune

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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research proposal on managing delays in construction projects

Delays and disruptions are among the challenges faced in the course of executing construction projects. Delays as well as disruptions are sources of potential risks that current studies are looking into ways to manage such as technical, social, economic, legal, financial, resource, construction and commercial. The purpose of this research is to assess causes and effects and disruptions in construction projects. This study is descriptive, designed to obtain views from clients, consulting firms, regulatory boards and construction firms in regard to causes and effects of delays in construction projects. Two sampling techniques were used to select respondents namely: purposive and random sampling. Literature review, questionnaires and interviews techniques were used to collect data for the study. Findings reveal that the main causes of delays and disruptions are: design changes, delays in payment to contractors, information delays, funding problems, poor project management, compensation issues and disagreement on the valuation of work done. On the other hand, time overrun, cost overrun, negative social impact, idling resources and disputes are the main effects of delays and disruptions. The study concludes that there still exist a number of causes of delays and disruptions and their effects put construction projects at great risk that have an effect on their performance. It is therefore recommended that adequate construction budget, timely issuing of information, finalization of design and project management skills should be the main focus of the parties in project procurement process.

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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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    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.

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    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

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  8. PDF Causes of Delay in Various Construction Projects: A ...

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  9. PDF An Overarching Review on Delay Analyses in Construction Projects

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  10. An integrative literature review on the causes of delays in

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    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.

  12. Study the delays and conflicts for construction projects and their

    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 ...

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