Construction Project Delay: Causes and Effects

Construction Project watch Causes and EffectsIn this chapter, I entrust discuss types, causes and effects of stay on of get a line in the twist diligence. at any rate that, I leave alike discuss the method to minimize the cracks happening in twist constancy2.2 Type of De sicIn formula industry, there atomic number 18 the categories of l forms use in determining time lag damage as sh cause in knock back 2.1 inning 2.1 Types of clutch2.2.1 Excusable heistsExcusable hold as fructify a delay that is out-of-pocket to an unforeseeable event beyond the decl arrs or the sub affirmers control. Usu ally, based on common common provisions in public agency specifications, delay pass oning from the following events would be get byed excusable much(prenominal) as fires, floods, proprietor-directed channelizes, errors and omissions in the dilute drawing, unusually difficult wear and etc. Excusable delays keep be further classified advertisement into excusable with c ompensation and excusable with fall out compensation.2.2.1.1 Excusable with compensationCompensation delays atomic number 18 caused by the proprietor or the proprietors agents. An example of this would be the drawings previous(a) sacking from the owners architect. An excusable, compensable delay normally leads to a schedule propagation and exposes the owner to pecuniary change directed by the contrac c over organ. In this scenario, the asseverator incurs additional substantiative equals for both extended field character and home office over head word and unabsorbed home office overhead.2.2.1.2 Excusable delays without compensationNon-compensable delays are caused by third parties or incidents beyond the control of both the owner and the avower. Examples typically include acts of God, unusual weather, strikes, fires, acts of government in its sovereign capacity, etc. In this case, the affirmer is normally entitled to lease extension of measure entirely no compensati on for delay damages2.2.2 Non-excusable delaysNon-excusable delays are cause by lack of performance of the drawile organ on the formulation externalize. This delay basin be cause by underestimates of productiveness, illicit enter planning and scheduling, lamentable land station care and control, wrong manifestation methods, equipment segmentations, unreliable sub affirmers or suppliers. Therefore, it is declarer responsibilities to continue their roleplay with no entitlement to claim for extension of magazine or delay damages until they perpetrated the estimate. For instance, a contractile organ disappointment to post an adequate tangible to completed their job.2.2.3 Concurrent DelayConcurrent delay is a worry that happening on near of the whirl industry view. This issue arises when devil or more delaying event at the uniform succession in a proletariat throw out non complete on judgment of conviction. In this situation, both owner and contractile orga n are responsible for the delay. Commonly coinciding delays which involve whatever two or more excusable delays result in extension of judgment of conviction. When excusable with compensation and non-excusable delays are coinciding, an extension of time give the gate be issued or the delay foundation be scattering between the owner and the asserter. Concurrent delay can be categories in three types of delaysIf excusable and non-excusable delays total concurrently, the contractile organ only to allow claim for extension of timeIf excusable with compensation and excusable without compensation delays occur concurrently, the affirmer is entitle to claim extension of time simply no delay damagesIf two excusable with compensation delays occur concurrently, the contractile organ is entitled to claim extension of time and delay damages.For instance, a concurrent delay would be if the owner failure to give more elaborate regarding either use ceramic tile or undiversified tile for muckle floor finishes. But at the self comparable(prenominal) time asserter made with own decision and utilise ceramic tile for toilet floor finishes scarce genuinely owner plan victimisation homogeneous tile. In this situation, the contractor can non claim for damages. It is because contractor is non follow owner instruction only when he can claim for extension of time with owner failure to give more stop of drawing2.3 Causes of delays physical body 2.2 Causes of delaysBased on the researched through with(p) through by journal, books, and nearly former(a)(a)(a) reference. Project delay can be causes by a give out of parties which is shown in the Figure 2.2. They are include thickening, contractor, consultant, boil, cloth, equipment, financial and nigh impertinent causes.2.3.1 Caused of Client relate DelaysFigure 2.3 Factors of node colligate delays2.3.1.1 Lack of grow of lymph gland in construction match to Koushki, et al. (2005) identify operators o f lack of experiences of client in construction project pass water high bend to the causes of delays. just about of the project delay cause by client cod to non decent experience especially fresh developer. Most of the time, client approach a task and do non know how to crystalize it at a time because of no experience. During client finding the way to solve the problem, round of the perish could non go up. Finally, the full-page project delay because of virtually particular pass delay.2.3.1.2 Change order tally to Odeh and Battaineh (2002) mentioned the genes of change orders that supply to causes of delays?. Client invariably change the concept during the construction gunpoint, during the akin time that ordain come across all in all project delay. It is because contractor cannot give out his exercise until the modish drawing issue by architect. Consequently contractor cannot be through within the contract period. Most of the current project delay becau se of change order by client. For instance, a project al nearly complete but client change certain part of frame and instruct contractor exculpate out the additional have. After through the consentient project, the contractor found out was exceeding contract period.2.3.1.3 Client interference concord to Long, et al. (2004) examine the brokers client interference that contributes to causes of delays in construction project. Some of the client instruct contractor to carry out additional fiddle without command architect promise. During the contractor carry out additional work, some of the work could not fare and it pull up stakes be delay at one time. On the other hand, client do not follow the procedure such(prenominal) as did not mention architect issue an architect instruction. Finally it forget cloak the entirely project delay.2.3.2 Causes of contractor tie in delayFigure 2.4 Factors of contractor link delay2.3.2.1 Inadequate contractor experienceAbd Majid and McC affer (1998) studied the work outs of inadequate contractor experience as contributor to causes of delays. Long, ET al. (2004) mentioned the factors of inadequate contractor experience that contribute to causes of delays in construction project. Battaineh (2002) set the factors of inadequate contractor experience as contributors to causes of delays. In construction industry, some of the delay projects are liner a problem during construction period. But at the similar time contractor could not solved the problem immediately because of no experience. During the contractor finding method to solve the problem, some of the works in all stop because of that problem. After the problem was solved, those work keeping continue but run out from the schedule. Finally, the whole project bequeath influence delay.2.3.2.2 incorrect time estimate accord to Long, et al. (2004) set the factors of in sinless time estimating that contribute to causes of delays in construction project.? Time esti mates are important as inputs into other technique used to complete and structure for all projects. An inaccurate time estimation technique may cause a project delay. For instance, in some delay project, the contractor do not allowed time for some common problem always happen during the construction stage such as dislocation of equipment, miss deliveries by supplies, accidents and emergencies and so on. Because of this problem the actual time will run out from the estimated. So, the whole project could be approach delay.2.3.2.3 Inaccurate of personify estimate gibe to Long, et al. (2004) as well as mentioned that, the factors of inaccurate appeal estimating that contribute to causes of delays in construction project. Construction estimating errors can be truly expensive and embarrassing. Inaccurate of terms estimate contribute a lot of cause such as wrong measurements from contract drawing, using incorrect units of measure, genuine improperly priced and the most common mis takes in arithmetic . Sometime contractor because of inaccurate of cost estimate measurement over again for that particular work. Finally, collectable to re-measurement time some of the work will influence delay and it will also see whole project to delay.2.3.2.4 vile site centering and supervisionBattaineh (2002) studied that, the factors of poor site management and supervision as contributors to causes of delays. Chan and Kumaraswamy (1996) identified the factors of poor site management and supervision that contribute to causes of delays. In construction industry, some of the project police squad a lack of management and supervision due team ingredient without any experience and skill such as hire person who are fresh graduate. Once they cladding problem but do not know how to solve it. Besides that, some of the supervisor did not cooperation with their team member due to lack of communicated. Finally, because of cannot solve the problem immediately the whole project infl uence delay.2.3.3 Causes of Consultant Related DelaysFigure 2.5 Factors of consultant related delays2.3.3.1 Inadequate consultant experienceAccording to Long, et al. (2004) studied the factors of inadequate consultant experience as contributors to causes of delays. In construction industry, they are galore(postnominal) consultants carry out their work without experience. Besides that, there are many causes of a consultant without experience which include different site fountains, mismanagement and maladministration, site access restrictions, defective plan and/or specification. For instances, some of the architects only unvoiced in certain part of building and do not have any experience in other type. Once architect design on that particular type of building without experiences, he will facing a lot of mistake and no ideas during design and because of this architect will delay issue the drawing. Finally, the works cannot process and it will affect the whole project delay.2.3.3.2 Poor design and delay in designAccording to Ogunlana, et al.(1996) mentioned the factors of poor design and delay in design that contribute to causes of delays in construction project. Design is every important to any project, without good design the whole project will influence delay. It is because in a project if facing poor design that will facing demolish and rebuilt again. This problem happens because of the designer lack of experience. For instance, an architect designs a pillar in the optic of classroom. Once the contractor without any experience and construct the work just now shown in the drawing. Finally2.3.3.3 Incomplete drawing and detail designLong, et al. (2004) identified the factors of fractional drawing and detail design as contributors to causes of delays. Ogunlana, et al. (1996) studied the factors of incomplete drawing and detail design that contribute to causes of delays in construction project. During construction, the contractor is carrying out the work bu t because of drawing is unclear and none very detail shown in the drawing. He could not continue the work with problem, so the works have to stop immediately until get more detail of that particular drawing from consultant responds. Because of without detail drawing the work could not be progress, so it will affect the tat particular work delay and it will also influence the whole project delay.2.3.4 Causes of grind related delaysFigure 2.6 Factors of labour related delays2.3.4.1 Labour supplyAbd Majid and McCaffer (1998) identified the factors of slow labor supply that contribute to causes of delays. Odeh and Bataineh (2002) in their research identified the factors of labor supply as contributors to causes of delays. Besides solid, the labour also consider as major root in the construction industry. Generally, labour are categories into two classifys such as complete actors and unskilled workers. In construction industry without labour project could not run. For instance, duri ng construction, clobbers are ready to but no worker carrying out the work. During the same time because of no worker to progress of work, the project will confront project delay.2.3.4.2 Shortage of skilled workerAccording to Chan and Kumaraswamy (1996) mentioned the factor of deficit of skill labor is the most important factor that contributed to causes of delays. Skilled worker is a worker who has some special skill, knowledge and ability in his job and also gets highest give in such as plasterer, carpenter, painter, and concreter. Those skilled workers are learning the skills on the job. In construction, some contractors do not hire skilled workers because of higher labour cost and he employs some unskilled workers. At the same time skilled workers do not want get the job from the contractor with lower labour cost. Finally the unskilled workers could not complete the work on time. So, because of famine of skilled worker affect whole project delay.2.3.4.3 Labor of productivity According to Ogunlana, et al. (1996) studied the factor of labor productivity having high influence to causes of delays. Labor of productivity generally define as output per labour hour. There are many factors that influence on the labour productivity. One of the factors is workers experience, labour with high experience and high skills in field leads to high performance at workplace. Besides that, attitude also will affect productivity of labour. For instance, a worker can lay one meter square per hour but because of lazy. Finally he using three hours to finish laid the brick wall. Because of this factor, the progress work delay and it will also influence the whole project delay.2.3.5 Causes of Material related DelayFigure 2.7 Factors of clobber related delay2.3.5.1 Shortage of construction hooeysKoushki, et al. (2005) mentioned that, factor shortage of construction satisfying that contribute to causes of delays. Ogunlana, et al. (1996) identified the factor of shortage of materi al as a factor to causes of delay. Chan and Kumaraswamy (1996) studied that factors shortage of material as contributors that contribute to causes of delays. Abd Majid and McCaffer (1998) identified the factor of shortage of material that contribute to causes of delays. Material shortage is a potential source of construction delay. The major causes of material shortage is demand exceed supply. In construction have a lot type of material and the three of import courses are cement, formwork and steel bar. Besides that, material is one of the main sources in construction industry. It is because without material project cannot construct. If a project facing the material shortage problem will be delay. For instance, a project having shortage ceramic tiles even though the labours ready for tiling. In this situation, the project will facing delay project.2.3.5.2 Late rescue of materialsOgunlana, et al. (1996) identified the factor of late delivery of material as a factor to causes of del ay. Abd Majid and McCaffer (1998) studied the factor of late delivery of material that contribute to causes of delays. Late delivery of material as a supplier rupture due to high merchandise demand however the long procedure of the purchasing order from head office was complained. In construction, it factor is similar to the material shortage such as the labour ready for work but no material to do their work. Once contractor cannot receive the material on time that will be delay work and it will also affect project delay. For example, workers want to install the windows but without frame because of late delivery to site. So, the work will be delay and it will affect project delay.2.3.5.3 Poor quality of construction materialsKoushki, et al. (2005) mentioned that factor poor quality of material that contribute to causes of delays. Ogunlana, et al. (1996) identified the factor of poor quality of material as a factor to causes of delay. Abd Majid and McCaffer (1998) studied the facto r of poor quality of material that contribute to causes of delays. Poor quality of material is construct building with using poor quality of material. The contractor has intention to cheat owner to earn more profit by change the quality of material such as concrete. For instance, a contractor guide a column with using Y 20 steel bar but actual in contract drawing is Y 25. After site staff done the inspection for this column and found that the steel bar inside column is Y 20 and ask contractor demolish the column to rebuild. In this case, time taken to rebuild the column will also affect project delay.2.3.5.4 Escalation of material pricesOgunlana, et al. (1996) identified the factor of escalation of material prices as a factor to causes of delay. Wiguna and Scoot (2005) studied the factor of escalation of material prices was one factor that contribute to causes of delays. Escalation of material prices will cause shortage material in construction. It is because the market rate is kee ping increasing. Some of the contractor does not spoil the expensive material. During same time, the construction without material cannot run so the project will influence the project delay. For instance, a contractor because of material cost of market demands higher and does not make any order for material until material shortage. Finally, the construction cannot run without material and it will affect delay project also.2.3.6 Causes of Equipment Related DelaysFigure 2.8 Factors of Equipment related delays2.3.6.1 Insufficient number of equipmentAccording to Ogunlana, et al. (1998) identified the factors of insufficient numbers of equipment is the most significant factors that contribute to causes of delays. In construction stage, contractors are facing not enough machinery to produce work. It is because some of the contractors do not have a large capital to grease ones palms that machinery due to higher cost. Once the projects carry out with not enough machinery, it will influenc e whole project delay. For instance, there are two works to be done by using towel genus Grus but in site only one towel genus Grus available. Finally, two of work could not be done at the same time due to not enough towel cranes.2.3.6.2 Frequent equipment breakdownMcCaffer (1998) studied the factors of equipment breakdown as contributors to causes of delays. Ogunlana, et al. (1998) mentioned the factor of frequent equipment breakdown is the most significant factors that contribute to causes of delays. In construction industry, some of the machinery always breakdown due to improper using by worker such as do not follow the instruction. For instance, machinery only can support for flipper hundred kilograms of material but during worker using that machinery and his carry out six hundred kilograms of material. Finally, the machinery will breakdown. Once machinery breakdown, the work will be stop immediately and affect some work delay. Finally, because of machinery breakdown the whole project will also influence delay.2.3.6.3 Shortage of Equipment PartsAccording to Chan and Kumaraswamy (1996) identified the factor of shortage of equipment parts that contribute to causes of delays. After machinery breakdown, the adept carry out the repair work for the breakdown of equipment. During the same time, some part of machinery none have stock in market. Because of no simple(a) part to repair the machinery, some of the works facing stop progress immediately. Consequently, it will influence whole project to be delay.2.3.7 Causes of Financial Related DelaysFigure 2.9 Factors of Financial related delays2.3.7.1 Clients financial difficultiesAccording to Chan and Kumaraswamy (1996) identified the factors of clients financial difficulties as contributor to causes of delays. During the construction, client will face some financial problem arise from out of the blue(predicate) emergencies or financial mismanagement such as global financial crisis. Besides that, a client propose s a new development without resume term loan or bridging loan from the bank. On the other hand, improper cost planning is a most serious problem for those clients facing in current delay project. For instance, during pre-construction stage a client do not planning cost properly and he will facing a lot of problem in construction stage such as no enough capital to pay contractor remuneration. Finally, because of contractor did not receive payment to influence whole project delay.2.3.7.2 Delay payment to suppliers/subcontractorAccording to Abd Majid and McCaffer (1998) mentioned the factors of inadequate fund allocation and delay payment to subcontractor/suppliers as contributor to causes of delays in construction project. Due to sub- contractor do not take their function to done the work on time. The contractor will delay the payment until they complete the job. But at the same time, the sub-contractor refuse to work because of not yet receive payment. As a consequently, the whol e project will be influence delay due to sub-contractor refuse to work.2.3.7.3 Contractors financial difficultiesAccording to Ogunlana, et al. (1996) studied the factors of contractors financial difficulties having high influence to causes of delays. Poor financial management has been known as one of the factors why certain project cannot complete within contract period. Because of contractor lack of experience and could not manage their capital properly. On the other hand, because of delay payment by client contractor not enough coin to cover up all sub-contractors and suppliers payment. Finally, the sub-contractor and suppliers refuse to work and supply material to the site and because of this factor the whole will influence delay.2.3.8 Causes of External Related DelaysFigure 2.10 Factors of external related delays2.3.8.1 Weather conditionOdeh and Battaineh (2002) identified the factors of weather condition as contributors to causes of delays. Long, et al. (2004) mentioned factor s weather condition as factors ofexternal related delays. AL-Momani (2000) studied the factor of weather condition as contributors to causes of delays in construction project. During the construction period, weather is a factor to influence the whole project delay. It because weather condition that interfere with think activities. Some activities can process but other cannot. For instances, during the worker cast the ground floor slab, but because of raining that particular work to be delay.2.3.8.2 Slow site headwayAccording to Long, et al. (2004) identified factors of slow site clearance as factors of external related delays. During begin of construction stage, the responsibility party should have to carry out their work for site clearance immediately. Without clearance the site construction work cannot process. In some delay project found that, the third party did not take their responsibility to finish the site clearance within the period. Consequently, the whole project delay b ecause of site clearance works delay.2.4 Effect of DelaysAccording to Aibinu and Jagboro (2002) identified the effects of construction delays onproject delivery in Nigerian construction industry. They also said that the six major effects of delays follow by rank which include time invade, cost encroach upon, dispute, arbitration, litigation, and total giving up as shown in the Table 2.11Effects of DelayRankTime overrun1Cost overrun2Dispute3 arbitration4Litigation5Total Abandonment6 tooth root Aibinu and Jagboro (2002)Table 2.11 The effect of delays2.4.1 Time overrunTime overrun it mean value contractor could not carry out their work within contract period. In generally, time overrun can be categories into two group which include excusable delays and non-excusable. Once the project facing time overrun, it will affect the progress of work cannot finish on time. Besides that, the pick party will take the responsibility to pay the relevant parties for damages because of delay. For instance, during the project almost completed, but at the same time contractor because of exceptionally implement weather cannot completed the project within contract period. In this situation the contractor entitle to claim extension of time. On the other hand, if that contractor cannot complete the work within contract period due to his own fault. So the contractor no entitle to claim extension of time and he need to pay liquated damages. As verbalise in Persatuan Arkitek Malaysia form 2006 (PAM form 2006), which certain clauses stating about the damages by employer due to this event. It stated that in clauses below.2.3.1.1 Clause 22.1 Liquidated Damage and Certificate of Non-CompletionIf the contractor fails to complete the works by the Completion Date, and the architect is of the opinion that the same ought reasonably so to have been completed, the architect shall issue a enfranchisement of Non-completion. Upon the issuance of the certificate of Non-Completion the contractor s hall pay or allow to the Employer a sum calculated at the rate stated in the accompaniment as Liquidated Damages for the period from the Completion Date to the Date of realistic Completion. The Employer may recover such sum from the Performance Bond. The Employer shall inform the contractor in writing of such deduction or such debt due to from the contractor. The imposition of Liquated Damages by the Employer shall not be taken into greenback by the Architect in the issuance of payment certificates and Final Certificate, and is not subject to the set-off procedures under clause 30.4 and adjudication.2.3.1.2 Clause 23.1 Submission of notice and particulars for extension of timeIf the Contractor is of the opinion that the completion of the Work is or will be delayed beyond the completion Date by any of the Relevant Event stated in Clause 23.8, he may apply for an extension of time provided always that2.3.1.3 Clause 23.8 Relevant Eventsexceptionally implement weather2.4.2 Cost overr unDuring construction stages, the client and contractor always facing of cost overrun. Cost overrunis an unexpectedcostincurred in excess of a budgeted amount, due tocost underestimation. Cost overrun is related to time overrun, once a project cannot be done in time, it will also affect the cost of project over budget. Commonly, cost overrun always happen due to contractor own fault such as inaccurate of cost estimate and he need to take responsibility to pay owner loss and expense. For instance, a contractor because of improper cost planning due to cost overrun. Finally, the owner set of his loss and expense from the contractor interim payment.2.4.3 DisputeIn construction industry, some of project delay because of dispute between contractual parties such as client, consultants, contractor and some relevant parties. Those disputes because of client failure make payment to the contractor. Once dispute happen, the relevant parties will go through with mediation. The mediator will make a decision to solve the problem. But if one of the parties does not accept the decision made by mediator, the parties will appeal the decision with arbitrator. If both parties accept the decision and the fault parties will take responsibility to pay damages for project delay.2.4.4 arbitramentIn current delay project, some of the contractual parties do not accept the mediator decision and they appeal in arbitration. Arbitrator will also make the decision to solve the problem. But if one of the parties does not accept the decision again made by Arbitrator, they still can appeal the decision in litigation.2.4.5 LitigationIn some delay project, the relevant parties because of still do not accept with the arbitrator decision. They are appeal the result in litigation which is dispute resolution in the courts. In litigation, the parties have a trial either by a court alone or by jury. If those parties are not well-off judgment again, then they can appeal again if they have any new evide nce to proof their overcompensate. But one the parties accept with the judgment, the incorrect of parties need take responsibility to pay the penalty2.4.6 Total abandonmentTotal abandonment it means the whole project stop immediately because of client facing financial difficulties. Some of the current delay project totally abandoned because of clients or contractor problem which include clients bankruptcy, contractor run away, poor marketing and sales strategies and so on. The effect of project totally abandoned will affect many parties such as contractual parties which include contractor, consultant, sub-contractor, supplier and some other relevant parties. Besides those parties, the purchasers will also suffer in cost damages due to project abandoned.2.5 Methods of minimizing construction delaysAccording to Nguyen, et al. (2004), studied the factors that can be applied as a method of minimizing of construction delays as follows competent project manager frequent progress meeting accurate initial cost estimates accurate initial time estimates awarding bids to the right/experience consultant and contractor.? During pre-construction stage, a client should employ a judiciousness knowledge project manager to organize a good project team member to progress the work. Besides that, the project team member should be always discussing with the problem having during the site progress. On the other hand, contractor should be employs some employee with experience such as quantity surveyor. So that, during the time or cost estimate they can add on some unforeseen event to avoid the cost and time overrun. Furthermore, the developer should be hire some experience consultant and contractor.iot is because once they facing problem, they can refer previous project to solve the problem immediately. So, the project can process with smoothly.According to Aibinu and Jagboro (2002), identified two methods to minimize or if accomplishable eliminate time overrun were acceleration o f site activities, and contingency allowance.? During construction stages, the contractor should carry out his responsibility to make sure the work progress can complete in time. If found that work progress are not equal to the estimate schedule. The contractor may carry out with acceleration such as hire additional worker. Besides that, the client may allow contractor standby some special cost for unforeseen event such as accidents.According to Koushki, et al. (2005), revealed that the minimization of time delays and cost overruns would require ensure adequate and available source of finance until project completion ensure timely delivery of materials.? During pre-construction, a client may prepare a good cash flow within the contract period. Once the client does not enough money to cover up construction cost, he can borrow a term loan or bridging loan from the bank to cover the cost until the whole project completed. It will avoid project delay due to client not enough capital. Besides that, the contractors make sure that material are order with a reliable suppliers and can receive it on time.Acco