Delay in Construction Management

CHAPTER 1 - INTRODUCTION

Introduction:

In India Construction Industry is the second largest growing, dominant, and ever
green field next to agriculture, in which delay is the most enveloping factor in it. Delay
may be pronounced `foreseeable and may take place at any stage of the construction
progress and leads to the delay in the project delivery. Hence delay in a particular
activity may also influence the initiation of another activity and it creates adversarial
relationship, mistrust, litigations, mainly dissatisfaction, and finally leads to overall
project delay. Delays in construction project are very pricey since that engages the
financial investments of the clients and the resources of contractors and consultants.

Construction management:

Construction project planning is the initial and most important phase of project
management. Planning comprises defining objectives of the project, sequence of works,
construction methods, planning of resources, preparing estimation, and durations for various
activities to bring about the satisfactory completion of project.

A construction project is basically a temporary endeavour with specified time & cost,
initiated to create a unique product, service or result, tend to be limited edition.

Construction delays are often result of a mismanaged event/s and can be seen as a risk
for the projects, which if identified, analysed and managed in a systematic process at inception,
could be managed, minimized, shared, mitigated or accepted to give some good results and
minimize chances of further delay.

Delay in construction project has a negative effect on clients, contractors, and

consultants in terms of growth in adversarial relationships, mistrust, litigation, arbitration, and
cash-flow problems. A construction project may be regarded as a successful endeavour until it
satisfies the cost, time, and quality limitations applied to it. However, it is not uncommon to
see a construction project failing to achieve its goal within the specified cost, time, and quality.

In order to counter the unforeseen delays beforehand the realm of “Project management”
is resorted to which helps mitigating the delays. Project management is the application of
knowledge, skill, tools and techniques to project activities to meet the project requirement and
requires the effective management of the project management processes.

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 Delay in Construction Management

Delay in Construction:

Construction delays in residential and light construction are often the result of
miscommunication between contractors, subcontractors, and property owners. These types of
misunderstandings and unrealistic expectations are usually avoided through the use of detailed
critical path schedules, which specify the work, and timetable to be used, but most importantly,
the logical sequence of events which must occur for a project to be completed. Delays in
construction projects are frequently expensive, since there is usually a construction loan
involved which charges interest, management staff dedicated to the project whose costs are
time dependent, and ongoing inflation in wage and material prices.

However, in more complex projects, problems will arise that are not foreseen in the original
contract, and so other legal construction forms are subsequently used, such as change orders,
lien waivers, and addenda.

In construction projects, as well in other projects where a schedule is being used to plan
work, delays happen all the time. It is what is being delayed that determines if a project, or
some other deadline such as a milestone, will be completed late.

Objective of the study:

The main objective of this study is:

1. To identify the major causes of delays in construction project.

2. To identify the effects of delays in construction project.
3. To recommend strategies for minimizing delay in the project based on the findings
of the study.

Types of Delays:

A. Critical or non-critical Delays:

A delay that is responsible for extending project duration is a critical delay. Few results are
mentioned below:

1. Extended Field Overhead

2. Unabsorbed home office overhead
3. Liquidated Damage
4. Idle labour & equipment cost
5. Labor & Material Cost Escalation and many more.

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A delay that is not the cause of extended project duration is a non-critical delay; however, it
will have an effect in terms of activities getting completed late than scheduled completion.
These activities will also affect project cost estimates as reiterated below:

1. Idle Labour & equipment cost

2. Labour & Material Cost Escalation and many more.
B. Excusable & non-excusable Delay:

A delay where the contractor is entitled for extension of time or compensation or both,
under the terms & conditions of contract is excusable delay. In this case, contractor does not
have any control on the activity getting delayed. The causes may be:

1. Force Measure Clause

2. Natural Calamities
3. Political/Social Unrest
4. Terrorist Attacks
5. Delay from Client (Approvals, Decisions, etc.), etc.

A delay where the contractor is fully responsible for the activities getting delayed and
resulted in extending project duration (responsible for critical delays) are non-excusable
delays. In this case, the contractor has to bear the risk of cost consequences including the
liability to pay damages for itself but possibly for the other parties as well. The causes may be:

1. Delayed Mobilization
2. Delayed Procurement
3. Delayed submission of important documents
4. Planning & Scheduling
5. Critical events that were not highlighted to client on right time, etc.

C. Concurrent Delays in Construction Projects:

A situation where more than one delay event occurs at the same time affecting multiple
activities simultaneously/independently affecting the completion is concurrent delay.
However, not all those events enable the contractor to be entitled for extension of time & cost
claim. Importantly, it is the causes of delay rather the delay themselves, that must overlap.

D. Compensable or non-compensable Delays in in Construction Projects:

Scenario where contractor is liable for Time Extension & Cost compensation
is compensable delays. All compensable delays fall under excusable delays-Whereas, if the

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contractor is solely at fault for a delay event, it is termed as non-compensable delay. However,
non-compensable may fall under critical, non-critical, excusable or non-excusable; depending
upon the situation it has created and conditions of contract.

Possible Causes of Delay:

1) Material
 Shortages of materials on site or market
 Late delivery of material
2) Manpower
 Shortage of unskilled labour
 Shortage of skilled labour
3) Equipment
 Equipment failure or breakdown
 Unskilled equipment operators
4) Financing
 Delay in honouring payment certificates
 Difficulties in assessing credit
 Fluctuation of prices
5) Environmental
 Bad weather conditions
 Unfavourable site conditions
6) Changes
 Client initiated variations
 Necessary variations
 Mistakes in soil investigation
 Poor design
 Foundation conditions encountered on site
G) Government action
• Delays in obtaining permit from municipality
• Public holidays
• Discrepancy between design specification and building code
H) Contractual relations
• Legal disputes

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 Delay in Construction Management

• Insufficient communication between parties

• Poor professional management
• Delay in instructions from consultants
• Delay by subcontractors
I) Scheduling and controlling techniques
• Poor site management
• Poor supervision
• Lack of programme of works
• Accidents during construction
• Construction methods
• Underestimation of costs of projects
• Underestimation of complexity of projects
• Underestimation of time of completion

CHAPTER 2: LITERATURE REVIEW

Operations management is a form of optimal and comprehensive management that covers

several issues including labour, products (services or goods), equipment, machinery and raw

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material. The management of systems or processes that create goods and/or provide services
is called operations management. Some various activity in a company that has a start and
finish time called projects. A project includes many temporary activities with limited period
of time, specific resource allocations and specific targets. The project is concerned by defining
and selecting a task which will give benefit to the company. Project activities is limited by
time and cost. Projects are dynamic, non-routine, multi-activity with varying intensity, short
cycles, have start and finish point, and fund restrictions. Successful project management
requires planning, scheduling and coordinating of interrelated activities. The one of the most
significant project management techniques used in planning, scheduling, and controlling a
project is network planning.

Scheduling is needed to shows the relationship among activities and the whole project and
demonstrate realistic cost and time estimates for each activity. Plan, coordination and control
has an important role in achieve the goal. There are several techniques in the network planning
that can be used. The most widely used techniques of network planning are CPM and PERT.

2. RESEARCH PAPERS:

2.1 Desai Megha, Dr. Bhatt Rajiv, Birla Vishwakarma Mahavidyalaya, Gujarat, India.

“A methodology for ranking of causes of delay for residential construction project in Indian
context". International journal of emerging technology and advanced engineering. Vol. 3,
March 2013. This paper identified 59 causes under nine major groups.

Different techniques: Relative importance index and Importance index based on degree of
severity and degree of frequency was used. This paper was determined major causes of delay
for residential construction projects in Indian context.

2.2 Rahul Kolhe, Milind Darade, “Detail analysis of delay in construction projects”.
International journal of innovative science, engineering & technology, Vol. 1, Issue 10, 2014.
Mr. Rahul was conducted interviews on various sites with help of questionnaire. The
questionnaire divided mainly nine groups are project related delay, owner, contractors,
consultants, design, material, equipment, labour, external related delays. He was analysed on
survey based that time increases for doing work, increased with cost of project. Cost overrun
and time overrun are the two most frequent effects of delays, which significantly affects the
construction projects like loss, expense claims and fluctuation claims.

2.3 Mohamad, M. R. (2010). “The factors and effect of delay in government construction
project (case study in Kuantan)”. Mohamad M. R. (2010) studies the factors and effects of

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delay in government construction project. Research indicates that, the most important causes
of delay from 45 different causes and 5 different effects of delays. They were cost overrun,
rescheduling and rearrangement, litigation, disputes and arbitration

2.4 Saleh, H. T., Abdelnaser, O., and Abdul H. P., “Causes of delay in construction industry in
Libya”. In this study, the items of contractor’s factors that cause delay and gave ranking based
on the mean value criteria. And in further analysis they identified the impact of delay in
construction projects i.e. loss of interest by stakeholder, blacklist by authorities, waste of
money and time and declination of reputation.

2.5 Koushki P.A, Al-Rashid K and Kartam N. “Delays and Cost increase in the Construction
of Private Residential Projects in Kuwait”, Journal of Construction Management and
Economics, Vol 23, Issue 3, pp. 285-294, 2005. Regarding cost overrun Koushki (2005)
identified three main causes that were contractor related problems, material related problems,
and owners, financial constraints, whereas Wiguna and Scott (2005) identified the most critical
factors included as High inflation/increased material price, Design change by client; defective
design, Weather conditions, Delayed payment on contracts, Defective construction work. This
paper was representing 450-person interview in survey which include private residential
project in Kuwait. Koushki et al states that minimization of time delays and cost overruns in
private residential projects would require availability of adequate funds, allocation of sufficient
time and money at the design phase, and selection of a computer consultant and reliable
contractor to carry out work.

CHAPTER 3: METHODOLOGY

3.0 CONSTRUCTION MANAGEMENT:

Construction project planning is the initial and most important phase of project management.
Planning comprises defining objectives of the project, sequence of works, construction

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methods, planning of resources, preparing estimation, and durations for various activities to
bring about the satisfactory completion of project.

A construction project is basically a temporary endeavour with specified time & cost,
initiated to create a unique product, service or result, tend to be limited edition. Construction
delays are often result of a mismanaged event/s and can be seen as a risk for the projects, which
if identified, analysed and managed in a systematic process at inception, could be managed,
minimized, shared, mitigated or accepted to give some good results and minimize chances of
further delay.

Delay in construction project has a negative effect on clients, contractors, and consultants in
terms of growth in adversarial relationships, mistrust, litigation, arbitration, and cash-flow
problems.

A) A construction project may be regarded as a successful endeavour until it satisfies the cost,
time, and quality limitations applied to it. However, it is not uncommon to see a construction
project failing to achieve its goal within the specified cost, time, and quality.

B) In order to counter the unforeseen delays beforehand the realm of “Project management” is
resorted to which helps mitigating the delays. Project management is the application of
knowledge, skill, tools and techniques to project activities to meet the project requirement and
requires the effective management of the project management processes.

3.1 Network Analysis

In order to construct a complete and detailed WBS, the work packages of a WBS need to be
further subdivided into activities. In doing so, it might improve the level of detail and accuracy
of cost, duration and resource estimates which serve as inputs for the construction of a project
network and scheduling phase. Note that a clear distinction between the project. The definition
phase, which determines the list of activities, the precedence relations, possible resource
requirements and the major milestones of the project, is different from the scheduling phase in
the level of detail and the timing of project activities. Indeed, the scheduling phase aims at the
determination of start and finish times of each activity of the project, and consequently,
determines the milestones in detail. This can only be done after the construction of the network
in the definition phase. Therefore, the activity description with the corresponding WBS-code
and the estimates for its duration, cost and resource requirement are the main outputs of the
definition phase and serve as inputs for the scheduling phase. In the latter phase, the earliest
and latest possible start (and finish) time will be determined, given the technological

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precedence relations and limited resource constraints. The construction of a project schedule
based on a project network with precedence relations. Many activities involve a logical
sequence during execution. The links between the various activities to incorporate these logical
sequences are called technological precedence relations.

3.1.1Types of Network

A) Activity-on-the-Arc (AoA)

i i 2

1 2j 1

j j 3

Figure No. 3.1

B) Activity- on- the- Node (AoN)

Figure No. 3.2

An AoN network displays the activities by nodes and precedence relations by arcs. Most
commercial software tools rely on the activity-on-the-node format. The construction of an AoN
network is very simple and is, in contrast to an AoA network, not subject to a set of rules.
Dummy activities are not necessary, apart from a single initial start and a single end activity,
which makes an AoN network always unique. The AoN representation of the technological
link between activity i and activity j can be displayed as in figure above.

3.1.2 Types (AoN) Networks:

A) CPM -Critical Path Method: -

CPM is intended to plan and control a large number of activities that have a complex
dependence on design and construction issues. CPM is a project scheduling using time and

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cost functions. The time estimate used in CPM is only one that represents the normal time.
There are several notations used in CPM to identify the critical path:

1. The earliest start (ES), is the earliest time an activity can begin, assuming all predecessors
are done.

2. The earliest finish (EF), is the time before an activity can be completed.

3. The last start (LS), is the last time an activity can start, so the completion time of the whole
project will not delay.

B) PERT- Program Evaluation and Review Technique: -

PERT is also known as back research technique. The time estimate used in PERT are three
types. The difference between these three types of time is a relative measure of the uncertainty
of each activity:

1. The most optimistic time (Wo), is the shortest possible time of completion, if all work goes
well.

2. The most pessimistic time (Wp), is the most likely time of completion, account possible
delays.

3. The normal time (Wn), is a possible completion time as appropriate.

C) ERP Software (HIT-OFFICE)

ERP -Enterprise Resource planning – Is a integrated management of core business process,

often in real-time and medicated by software and technology. ERP provides an integrated and
continuously updated view of core business process using common database maintained by a
database management system.

Table No. 3.1- Difference between CPM and PERT:

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CPM- Critical Path Method PERT- Program Evaluation and Review

Technique

CPM works with fixed deterministic time PERT works with probabilistic time

CPM is useful for repetitive and noncomplex PERT is useful for non-repetitive and
projects with a certain degree of time complex projects with uncertain time
estimated. estimates.

CPM includes time-cost trade off. PERT is restricted to time variable.

CPM for construction projects. PERT is used for Research & Devlopment
programs.

3.2 Steps for Network Analysis

The six steps of network analysis are as follows:

1)Prepare the list of activities

2)Define the inter relationship among the activities.

3)Estimate the activity duration

4)Assemble the activities in the form of a flow diagram

5)Draw the network

6)Analyse the network i.e. compute EST and LST; identify critical events, critical path and
critical activities.

CHAPTER 4 CASE STUDY

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4.0 SITE DETAILS:

Type of Construction: RCC Framed

Type of Building: G+2 Residential Bungalow

Area: 4000 Sq. ft

Status: Ongoing (Plinth Beams Casted)

Address: Plot No. 107, Amar Shrushti, Hadapsar, Pune -411028.

4.1 SITE VISIT PHOTOGRAPHS:

Photograph No. 4.1

Photograph No. 4.2

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Photograph No. 4.3

Photograph No. 4.4

Photograph No. 4.5

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4.2 QUESTIONARY SURVEY:

1.Type of construction

RCC Framed

2.Type of Building

G+2 Residential Bungalow

3.Is Updation (Rescheduling) done?

Yes,

Initial Duration of completion – 8 Months

Duration of completion after updating - 10 Months

4.Causes of delay.

a. Unavailability of material (River sand), right from foundation stage.

b. Inadequate Labour.

c. Delay in getting the revised drawings from RCC Designer / Architect.

d. Permissions from competitive authority.

e. Water logging during excavation.

5.Methods adopted for reducing the delay

a. Use of crush sand instead of river sand according to proper mix design.

b. Labours working in double shifts.

c. Proper and continuous follow up of the consultant and architect.

d. Appointing more working agencies.

e. Installation of water pumps, to remove water from excavation pit.

6.Any software used?

-No.

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Questions Answered By: Keshav Shinde (Owner)

Designation : Civil Engineer

CHAPTER 5: RESULTS AND CONCLUSION

CPM Method Project activities and duration shown in Table 1. Predecessor is activity that
precedes current activity.

Table No. 5.1 - Project Activities and Duration

Sr. Activity Code Time Predecessors

No (Days)

1 Preparatory Works A 3 -

2 Excavation Works B 5 A

3 Foundation Works C 10 B

4 Column Structure Works D 12 C

5 Sloof Works E 6 C

6 Wall and Frame Works F 12 E

7 Roof Trust Works G 10 D

8 Roof (Ceilings and Tiles) Works H 17 G

9 Sanitary Works and Electrical I 20 F, H

Installations

10 Plaster Works J 25 F, H

11 Floor Works K 18 I

12 Installation Works (Lamps, Glass, Doors, L 15 F

Windows, Switches, Outlets, Locks,

Sanitation)

13 Painting Works M 30 J, K

14 Fencing Works N 10 L

15 Complementary Works O 6 M, N

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The next step is drawing the network diagram as shown in Figure 1.

Figure No. 5.1 The Network Diagram (CPM Method)

5.1CPM CALCULATION

The forward calculation in the completion of a home construction project as follows:

TE (1): since TE (1) is an initial event, then TE (1) is 0.

TE (2): EF (1,2) = ES (1) + t(1,2) = 0 + 3 = 3, then TE (2) is 3.

Figure No. 5.2 The forward calculation result (CPM Method)

The countdown calculation in the completion of the house building project as follows:

TL (14): since TL(14) is the event terminal, then TL(14) is

131. TL(13): LS(14,13) = LF(14) + t(14,13) = 131 - 6 =
125, then TL(13) is 125.

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Figure No. 5.3 The Countdown Calculation Result (CPM Method)

After the forward and the countdown calculation, the next step is calculating the total float
and free float. The results as shown in Table 3.

Table No. 5.2 – Total Float and Free Float Calculation Results (CPM Method)

SR ACTIVITY TIME START FINISH START FINISH FREE TOTAL

NO (DAYS) (ES) (EF) (ES) (EF) FLOAT FLOAT

1 A 03 0 3 3 3 0 0

2 B 05 3 8 8 8 0 0

3 C 10 8 18 18 18 0 0

4 D 12 18 30 18 30 0 0

5 E 06 18 24 45 45 0 21

6 F 12 24 36 30 57 0 21

7 G 10 30 40 40 40 0 0

8 H 17 40 57 57 57 0 0

9 I 20 57 77 57 77 0 0

10 J 25 57 95 77 95 13 13

11 K 18 77 95 57 95 0 0

12 L 15 36 51 95 115 0 64

13 M 30 95 `125 95 125 0 0

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14 N 10 51 125 115 125 64 64

15 O 06 125 131 125 131 0 0

The sequence of activities of the critical path using the CPM method is A-B-C-D-G-H-I-K-
M-O, where the critical path can be seen in the figure below with the completion of the
project within 131 days.

Figure No. 5.4 The critical path of the project (CPM Method)

5.2. PERT Method

The data used in PERT method is the primary data from interview and discussion with
project team.

Average time score is calculated with the formula written before. Then calculate the critical
path with PERT by calculate the slack, shown in Table 3. This table is also showing the
calculation results of variance and standard deviation.

Table No. 5.3 - PERT CALCULATION

ACTIVITY DURATION TC V S BEFORE AFTER FS TS NOTE

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TO TM TP TEi TEj TLi TLj

A 2 3 4 3 0,11 0,33 0 3 0 3 0 0 *CRITICAL

B 3 5 8 5 0,25 0,5 3 8 3 8 0 0 *CRITICAL

C 10 10 15 11 0,69 0,83 8 19 8 19 0 0 *CRITICAL

D 10 12 17 13 1,36 1,17 19 32 19 32 0 0 *CRITICAL

E 5 6 8 6 0,25 0,5 19 25 19 46 0 21

F 12 12 18 13 1 1 25 38 46 59 0 19

G 8 10 13 10 0,69 0,83 32 42 32 42 0 0 *CRITICAL

H 15 17 20 17 0,69 0,83 42 59 42 59 0 0 *CRITICAL

I 20 20 25 21 0,69 0,83 59 80 59 80 0 0 *CRITICAL

J 25 25 35 27 2,78 1,67 59 98 59 98 12 12

K 15 18 23 18 1,78 1,33 80 98 80 98 0 0 *CRITICAL

L 13 15 18 15 0,59 0,83 38 53 59 119 0 66

M 30 30 40 32 2,78 1,67 98 130 98 130 0 0 *CRITICAL

N 9 10 14 11 0,69 0,83 53 130 119 130 66 66

O 6 6 7 6 0,28 0,17 130 136 130 136 0 0 *CRITICAL

The network diagram with PERT calculation is shown in Figure 5.5.

Figure No. 5.5 The critical path of the project (PERT Method)

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From the calculation of PERT is known the critical activity is A-B-C-D-G-H-I-K-M-O.

Te critical = 136 days, Χ = 131 days (assuming CPM completion) critical = V (A)
+ V (B) + V (C) + V (D) + V (G) + V (H) + V (I) + V (K) + V (M) + V (O)

= 0,11 + 0,25 + 0,69 + 1,36 + 0,69 + 0,69 + 0,69 + 1,78 + 2,78 + 0,028 = 9,068

Z = -0.66 0,2546 (from the normal distribution table)

Probability = 1 - 0.2546 = 0.7454

Based on the above calculation result, Z = -0.66, the value of 0.2546 (from the normal
distribution table), d the probability or probability of completing the project is 74.54%. This
result means that the possibility of home construction project activities can be completed on
time is high enough.

Table No. 5.4 Comparison of house construction project time with CPM and PERT and
ERP software

Comparison CPM PERT ERP Difference

Time (Days) 131 136

Based on the table, it can be seen that the CPM method is more effective and efficient than
PERT method. The total duration required for completion of a home construction project
using the CPM method is 131 days, and by the PERT method is 136 days. This is because
the CPM method has a definite duration estimation, whereas the PERT method has three
estimation estimates.

FUTURE SCOPE:

1.

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2.
3.
4.

REFERENCES

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