iii

Especially dedicated to :
my beloved wife, Liza Shalawati; my dear sons, Muhammad Zhafran and Muhammad Naufal; my dear daughter, Siti Sarah Shafira.

iv

ACKNOWLEDGEMENT

I would like to express my sincere appreciation to my supervisor Associate Professor Dr. Muhd. Zaimi Abd Majid for the guidance, assistance, criticism, and suggestions he provided for this research.

This research involved several discussions and information from the construction practice in Aceh, Indonesia construction industry. I would also like to thank the Chairman of GAPENSI, the Chairman of INKINDO, all contractors and consultants in Aceh, Indonesia, who have extended their valuable times and resources in providing necessary information for the research.

Deepest thanks to my family especially my parents, my wife, my sons and daughter for their constant support and prayers throughout the process of producing this project report.

ABSTRACT

One of the most common problems in the construction project is delays. Delays of a construction project can be defined as the late completion of works as compared to the planned schedule or contract schedule. Projects can be delayed due to number of reasons that may be due to the client, the contractor, acts of God, or a third party. They may occur early or later in the project development, alone, or with other delays. Delays can be minimized only when their cause are identified. The objective of this study was to identify the major causes of delays, the effects of delays, and methods of minimizing delays in construction project. This study was carried out based on literature review and a questionnaire survey. A total of fifty seven factors and eight groups that contributed to the causes of delay, the six factors that effects delays and thirty five methods of minimizing construction delays were identified based on literature review. The questionnaire survey was distributed to the targeted respondent in Aceh, Indonesia construction industry. The objectives of the study have been successfully achieved. The top ten most important factors that contributed to the causes of delays, i.e., insufficient numbers of equipment; inaccurate time estimate; monthly payment difficulties; changes orders; inaccurate cost estimate; poor site management and supervision; inadequate modern equipment; shortage of construction materials; incompetent project team; improper project planning and scheduling; and contractors financial difficulties. Contractor-related delays was ranked the most significant groups that cause delays, followed by equipment-related delay, client-related delays, material-related delays, financerelated delays, consultant-related delays, external-related delays, and labor related delays. Time and cost overrun were the common effects of delays in construction projects. To minimize delays in construction projects it has been identified that the top ten most effective methods of minimizing construction delays includes: ensure adequate and available source of finance until project completion; competent project manager; availability of resources; frequent progress meeting; awarding bids to the

vi

right/experience consultant and contractor; use of experienced subcontractors and suppliers; multidisciplinary/competent project team; accurate initial cost estimates; competent and capable of clients representative; use of appropriate construction methods; performs a preconstruction planning of project task and resources needs; and project management assistance.

vii

ABSTRAK

Salah satu masalah yang paling umum berlaku dalam projek pembinaan adalah kelewatan. Kelewatan projek pembinaan boleh didefinisikan sebagai lewat siap kerja dibandingkan dengan jadual perancangan atau jadual kontrak. Kelewatan projek boleh disebabkan oleh bebrapa sebab diantaranya adalah sebab pemilik projek, kontraktor, takdir Allah, dan pihak ketiga. Ini boleh terjadi pada awal atau di akhir pembangunan projek secara tersendiri atau bersamasama dengan kelewatan yang lain. Kelewatan boleh diminimalkan hanya apabila sebabnya dikenal pasti. Objektif kajian ini adalah untuk mengenal pasti sebab utama kelewatan, kesan kelewatan, dana tatacara bagi mengurangkan kelewatan projek pembinaan. Kajian ini dijalankan berdasarkan kajian literatur dan pengumpulan maklumat menggunakan borang borang soal selidik. . Sejumlah lima puluh tujuh faktor dan lapan kumpulan yang telah menyumbang kepada sebab kelewatan, enam jenis kesan kelewatan, dan tiga puluh lima tatacara bagi mengurangkan kelewatan pembinaan telah dikenal pasti berdasarkan kajian ini. Kajian borang soal selidik telah diedarkan kepada sasaran responden pada industri pembinaan di Aceh, Indonesia. Objektif kajian telah diperolehi dengan jayanya. Sepuluh teratas faktor utama yang menyumbang kepada sebab kelewatan adalah: kekurangan bilangan peralatan; ketidaktepatan anggaran masa; kesusahan dalam bayaran bulanan; arahan perubahan; ketidaktepatan anggaran kos; pasukan projek yang tak berkebolehan; perancangan dan penjadualan projek yang salah; dan kesusahan kewangan kontraktor. Kelewatan berkaitan kumpulan kontraktor telah ditarafkan sebagai kumpulan yang paling penting yang

menyebabkan kelewatan., diikuti oleh kelewatan berkaitan peralatan, kelewatan berkaitan pemilik projek, kelewatan berkaitan material, kelewatan berkaitan

kewangan, kelewatan berkaitan perunding, kelewatan berkaitan faktor luaran, dan kelewatan berkaitan faktor pekerja. Lebihan masa dan kos adalah kesan yang paling

viii

umum berlaku daripada kelewatan di projek pembinaan.

Bagi mengurangkan

kelewatan di projek pembinaan, telah dikenal pasti sepuluh tatacara yang paling berkesan iaitu: memastikan kecukupan dan perolehan sumber kewangan sehingga siap projek; pengurus projek yang berkebolehan; terdapatnya/perolehan sumber; mensyuarat kemajuan kerja yang kerap; pemberian tender kepada kontraktor dan perunding yang berpengalaman; subkontraktor dan pembekal yang berpengalaman; pasukan projek yang berkebolehan; anggaran kos permulaan yang tepat; wakil pemilik projek yang berkebolehan dan berpengetahuan; penggunaan tatacara pembinaan yang betul; menjalankan perancangan pra pembinaaan projek bagi aktiviti kerja dan keperluan sumber, dan bantuan pengurusan projek.

ix

TABLE OF CONTENTS

CHAPTER

TITLE

PAGE

TITLE DECLARATION DEDICATION ACKNOWLEDGEMENT ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF SYMBOLS LIST OF APPENDICES

i ii iii iv v vii ix xiii xv xvi xvii

INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Background of the Study Problem Statement Aim and Objectives of the Study Scope of the Study Research Methodology 1 2 5 5 6 6

CAUSES OF CONSTRUCTION DELAYS 2.1 2.2 Introduction Type of Delays 2.2.1 2.2.2 Excusable Delays Non-Excusable Delays 8 9 10 10

2.2.3 2.3 2.4

Concurrent Delays

11 12 17 18 20 21 23 24 26 27 29 30 32

Causes of Delays Identify Factors and Groups of Causes of Delays 2.4.1 Factors of Material Related Delays

2.4.2 Factors of Labor Related Delays 2.4.3 2.4.4 2.4.5 Factors of Equipment Related Delays Factors of Finance Related Delays Factors of Contractor Related Delays

2.4.6 Factors of Client Related Delays 2.4.7 2.4.8 2.4.9 2.5 Factors of Consultant Related Delays Factors of External Related Delays Groups and Factors that Causes Delays

Summary

EFFECTS AND MINIMIZING CONSTRUCTION DELAYS 3.1 3.2 3.3 3.4 3.5 Introduction Effects of Delays Minimizing Construction Delays Identify the Factors and Methods Summary 34 35 36 37 39

RESEARCH METHODOLOGY 4.1 4.2 4.3 4.4 Introduction Literature Review Data Collection Questionnaire Design 4.4.1 4.4.2 4.4.3 4.4.4 4.5 4.6 Section A: Company and Respondent Profile Section B: Causes of Delays Section C: Effects of Delays Section D: Methods of Minimizing Delays Questionnaire Distribution 40 40 41 41 41 42 42 43 44 44 44

Data Analysis 4.6.1 Relative Importance Index

xi

4.6.2 4.7

The Spearmans Rank Correlation Coefficient Summary

45 46

ANALYSIS AND DISCUSSIONS 5.1 5.2 5.3 Introduction Data Collection Analysis of Results 5.3.1 Factors and Groups that Causes Delays 5.3.1.1 Factors of Material Related Delays 5.3.1.2 Factors of Labor Related Delays 5.3.1.3 Factors of Equipment Related Delays 5.3.1.4 Factors of Finance Related Delays 5.3.1.5 Factors of Contractor Related Delays 5.3.1.6 Factors of Client Related Delays 5.3.1.7 Factors of Consultant Related Delays 5.3.1.8 Factors of External Related Delays 5.3.1.9 Groups of Causes of Delays 5.3.1.10 Ranking of Factors that Causes Delays 5.3.2 5.3.3 5.4 Effects of Delays Minimizing Construction Delays 59 62 63 65 67 68 68 69 70 70 71 71 72 74 47 47 48 48 49 50 51 52 53 55 56 57 58

Identify the Major Causes of Delays 5.4.1 5.4.2 5.4.3 Contractor Related Delays Equipment Related Delays Client Related Delays

5.4.4 Material Related Delays 5.4.5 5.4.6 5.4.7 5.4.8 5.5 5.6 Finance Related Delays Consultant Related Delays External Factor Related Delays Labor Related Delays

The Most Important Factors that Causes Delays The Common Effects of Delays

xii

5.7

The Effective Methods of Minimizing Construction Delays 76 78

5.8

Summary

CONCLUSIONS AND RECOMMENDATION 6.1 6.2 Introduction Conclusions 6.2.1 6.2.2 6.2.3 The Major Causes of Delays The Common Effects of Delays The Effective Methods of Minimizing of Construction Delays 6.3 Recommendation 80 81 79 79 79 80

REFERENCES

82

APPENDICES

85

xiii

LIST OF TABLES

TABLE NO

TITLE

PAGE

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.1 3.2 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Factors of material related delays Factors of labor related delays Factors of equipment related delays Factors of finance related delays Factors of contractor related delays Factors of client related delays Factors of consultant related delays Factors of external related delays Groups and factors that causes delays The effects of delays Methods of minimizing construction delays Questionnaire distribution and responses The result of factors of material related delays The result of factors of labor related delays The result of factors of equipment related delays The result of factors of finance related delays The result of factors of contractor related delays The result of factors of client related delays The result of factors of consultant related delays

19 21 22 24 25 27 29 30 32 35 38 48 50 51 52 53 54 55 56

xiv

5.9 5.10 5.11 5.12 5.13 5.14 5.15

The result of factors of external related delays The result of major delays groups Ranking of factors that causes delays The results of effect of delays The Result of methods of minimizing Construction Delays Ranking of major delays groups Ranking of the top twenty most important factors that causes delays

57 58 59 63 64 66

73 74

5.16 5.17

Ranking of the common effects of delays Ranking of the top fifteen effective methods of minimizing construction delays

77

xv

LIST OF FIGURES

FIGURE NO

TITLE

PAGE

1.1 2.1 2.2 2.3. 2.4 2.5 2.6 2.7 2.8 2.9

Flowchart of Research Methodology Breakdown of factors of material related delays Breakdown of factors of labor related delays Breakdown of factors of equipment related delays Breakdown of factors of finance related delays Breakdown of factors of contractor related delays Breakdown of factors of client related delays Breakdown of factors of consultant related delays Breakdown of factors of external related delays The Ishikawa Diagram of factors that contributed to the causes delays

7 18 20 22 23 24 26 28 29

31 66 75

5.1 5.2

The major delays groups that causes delays The common effects of delays

xvi

LIST OF SYMBOLS

I Wi Xi

Relative Importance Index Weight assigned to ith response. Frequency of the ith response given as percentage of the total responses for each factors.

Response category index = 1,2,3,4,5. Sum of The Spearmans rank correlation coefficient The difference in ranking between the contractors and consultants The number of variables. Significant value The null hypothesis Alternative hypothesis

rs d N Z H0 H1

xvii

LIST OF APPENDICES

APPENDIX

TITLE

PAGE

Questionnaire Form

85

CHAPTER 1

INTRODUCTION

1.1.

Introduction

A construction project is commonly acknowledged as successful, when it is completed on time, within budget, in accordance with the specifications and to stakeholders satisfaction. Functionality, profitability to contractors, absence of claims and court proceeding and fitness for purpose for occupiers have also been used as measures of project success.

One of the most important problems in the construction project is delays. Delays occur in every construction project and the magnitude of these delays varies considerably from project to project. Some projects are only a few days behind the schedule: some are delayed over a year. So it is essential to define the actual causes of delays in order to minimize and avoid the delays in any construction projects.

Delay is a situation when the contractor, consultant, and client jointly or severally contribute to the non-completion of the project within the original or the stipulated or agreed contract period. Delays give rise to disruption of work and loss of productivity, late completion of project, increased time related cost, and third party claims and abandonment or termination of contract. It is important that general management keep track of project progress to minimize the possibility of delay occurrence or identify it at early stages.

1.2.

Background of the Study

Numerous researchers have also examined and identified the causes of delays in construction project. Assaf, et al. (1995), for example, studied the causes of delays in large building construction projects in Saudi Arabia. They identified that the most important causes of delay included are the approval of shop drawings, delays in payment to contractors and the resulting cash problems during construction, design changes, conflicts in work schedules of subcontractors, slow decision making and executive bureaucracy in owners organizations, design errors, labor shortage and inadequate labor skills. Ogunlana, et al. (1996) studied the delays in building project in Thailand, as an example of problem faced by the developing economies. They concluded that the problems of the construction industry in developing economies can be nested in three layers: problem of shortages or inadequacies in industry infrastructure, mainly supply of resources; problems caused by clients and consultants; and problems caused by incompetence of contractors.

Chan and Kumaraswamy (1996) surveyed and classified the causes of construction delays in Hongkong as seen by clients, contractor and consultants, and examined the factors affecting productivity. The results of their research indicate that the five principal and common causes of delays are: poor site management and supervision; unforeseen ground condition; low speed of decision making involving all projects team; client initiated variations; and necessary variation of works. Mezher and Tawil (1998) conducted the survey of the causes of delays in the construction industry in Lebanon from the viewpoint of owners, contractors and architectural/engineering firms. It was found that 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.

A comprehensive classification of causes of construction delays has also been recommended by Abd. Majid and McCaffer (1998). They studied factors of nonexcusable delays that influence contractors performance. The classification the main

causes of non-excusable delays according to the sources of occurrence, then identified the factors contributing to those causes. It is assumed that the client has more control over the compensable delays and can take action to prevent them. The contractor is expected to have control over the non-excusable delays and, presumably, do more prevent them. Al-Momani (2000) conducted a quantitative analysis of construction delays by examining the records of 130 public building projects constructed in Jordan during the period of 1990-1997. The researcher presented regression models of the relationship between actual and planned project duration for different causes of delays. The researcher concluded that the main causes of delays in construction projects relate to designers, user changes, weather, site conditions, late deliveries, economic conditions, and increase in quantities.

Odeh and Battaineh (2002) studied causes of construction delay in Jordan. In their study presents the results of the survey which indicate that contractors and consultants have agreed that the owner interference, inadequate contractor experience, financing and payments, labor productivity, slow decision making, improper planning, and subcontractors are among the top ten most important factors. Frimpong, et al. (2003) studied the factors contributing to delay and cost overruns in Ghana groundwater construction projects. The results of the study revealed the main causes of delay and cost overrun in construction of groundwater projects includes: monthly payment difficulties from agencies; poor contractor management; material procurement; poor technical performances; and escalation of material prices. Long, et al (2004), studied the problems on large construction projects in developing countries, a case study from Vietnam. They revealed that the problems could be grouped under five major factors; incompetent designers/contractors; poor estimation and change management; social and technological issues; site related issues; and improper techniques and tools.

Koushki, et al. (2005) conducted a survey of the time-delay and cost-increase associated with the construction of private residential projects in the state of Kuwait. They identified three main causes of time-delays includes: changing orders; owners financial constraints; and owners lack of experience in the construction business.

Regarding cost overruns, the three main causes were identified as contractor related problems, material-related problems, and owners financial constraints. Wiguna and Scott (2005) studied on the risks affecting construction delays and cost overruns in building projects in Surabaya and Denpasar, Indonesia. They identified the most critical factors are: high inflation/increased material price; design change by client; defective design; weather conditions; delayed payment on contracts and defective construction work.

Studies the effects of delays in construction projects have been undertaken by numerous researchers. AIbinu and Jagboro (2002) identified the six effects of delays were time overrun, cost overrun, dispute, arbitration, total abandonment, and litigation. The results of their studied about the effects of construction delays on project delivery in Nigerian construction industry, shows time overrun and cost overrun were the frequent effects of delays in construction projects. Koushki and Kartam (2004) studied on the impact of construction materials in construction project in Kuwait. They obtained that time and cost overrun were the impact of the material selection time, their availability in the local market, and the presence of the supervising engineer.

Several studies have been studied and recommended the methods of minimizing delays in construction projects. Nguyen, et al (2004), identified five critical success factors could be applied to reduce the effects of delays includes: competent project manager; adequate funding until project completion;

multidisciplinary/competent project team; commitment to projects; and availability of resources. Aibinu and Jagboro (2002) in their study also identified two methods to reduce or if possible eliminate time overrun were acceleration of site activities, and contingency allowance.

A comprehensive study to improve the situation of construction project also has been recommended by Odeh and Battaineh (2002). They recommended four methods includes: developing human resources in the construction industry through proper training and classification of craftsman; adopting a new approach to contract

award procedure by giving less weight to prices and more weight to the capabilities and past performance of contractors; and adopting new approaches to contracting, such as design-build and construction management (CM) type of contracts.

1.3

Problem Statement

Construction projects can be delayed for a large number of reasons. Differences categories of delays and different types of delays found on construction projects. Delay has significant effect on completion cost and time of construction project. Delays can be minimized when their causes are identified. Knowing the cause of any particular delay in a construction project would help avoiding the same.

Although various studies have been undertaken to identify the factors affecting the causes of delays, since the problems are rather contextual, the studies need to focus on specific geographical area, country or region. A major criticism of the Aceh, Indonesia construction industry is due to the growing rate of delays in project delivery. In Aceh, Indonesia most public work projects, including any construction projects under government authority or under state owned companies, are awarded on a competitive basis using the traditional approach. The consultants and contractors are engaged in separate contracts. The contractors usually would be involved until the designs have been completed.

1.4

Aim and Objective of the Study

This research was therefore, aimed at identifying the major causes of delays, effects of delays and methods of minimizing delays in construction projects in Aceh, Indonesia construction industry. To achieve this aims the following objectives have been identified:

To identify the major causes of delays in construction project; To identify the effects of delays in construction project; and To identify the methods of minimizing construction delays.

1.5

Scope of the Study

The scope of the research was mainly focus on literature review and a questionnaire survey. Projects investigated in this research included office and administration buildings, school building, medical center, communication facilities and civil engineering projects. The survey was conducted in Aceh, Indonesia.

The questionnaire survey was designed based on factors identified from literature review that contributed to causes of delays, effects of delays and methods to minimize delays. A questionnaire was developed to assess the perceptions of contractors and consultants of the relative importance of the causes and the effects of construction delays. The developed survey questionnaire was distributed to the targeted respondent in Aceh, Indonesia.

1.6

Research Methodology

The methodology of this study started from identifying the problem statement, literature review, collecting data, analysis of results, discussion of results, conclusions and recommendations. Figure 1.1 shows a flowchart of the research methodology in order to achieve the objectives of the study.

PROBLEM STATEMENT

LITERATURE REVIEW

TO IDENTIFY THE MAJOR CAUSES OF DELAYS

TO IDENTIFY TO THE EFFECTS OF DELAYS

TO IDENTIFY THE METHODS OF MINIMIZING DELAYS

QUESTIONNAIRE DESIGN

DATA COLLECTION

ANALYSIS AND DISCUSSIONS

CONCLUSIONS AND RECOMMENDATION

Figure 1.1

Flowchart of Research Methodology

CHAPTER 2

CAUSES OF CONSTRUCTION DELAYS

2.1.

Introduction

Delays of a construction project can be defined as the late completion of works as compared to the planned schedule or contract schedule. It could be possibly be interpreted as a loss of time. Time refers to the duration for completing the construction project. Time in a construction project is the construction period or in contract administration is the contract period. When the project period is delayed, it means the project cannot be completed within original schedule. Delays in construction project will lead to either: extension of time; non-completion; termination of contract; or a combination of two or more than the factors mentioned above.

The duration of a construction project is an important factor to set forth when entering into a construction agreement. If a contractor works with a planned parameter, he or she should be able to finish the construction project in a timely manner. However, compared to other industries, it is difficult to complete a construction project in which many construction trades participate and numerous unknown variables exist. When such difficulties arise, construction schedules are delayed, and consequently delay claim occur.

Delays in construction may be caused by the client, the contractor, the consultants, acts of God, or a third party. They may occur early or late in the job, alone, or with other delays. In whatever cases, negotiating a fair and timely damage

settlement is beneficial to all parties (Bubshait and Cunningham, 1998). Thus, the ascertainment of the period of project delay serves as a basic information from the appointment of responsibility, which may be a highly complex operation in cases with concurrent causes (Shi, et al. 2001). Assigning responsibility for project delays is critical to the allocation of responsibility for time-related costs (Al-Saggaf, 1998). In this respect, when a delay claim occurs, it is very important to assign responsibility and magnitude to delays exist, and it is often difficult to analyze the ultimate liability in delay claims (Kraiem and Dieknam, 1987). Lost productivity or loss of productivity is one the most important causes of delay among the various causes of construction delays.

Delays can be minimized 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 agreed contract period.

2.2.

Types of Delays

Abd Majid and McCaffer (1998) revealed that there are three basic ways to classify delays:

Excusable delays with compensation; Excusable delays without compensation; and Non-excusable delays.

10

2.2.1

Excusable Delays

Excusable delays are those not attributable to the contractors actions or inactions, and typically include unforeseen events. These events are beyond the contractors control and are without fault or negligence on his/her part. Excusable delays, when founded, entitle the contractor to a time extension if the completion date is affected. This type of delay can also have an impact on non-critical activities which need a more detailed analysis to determine whether additional time extension is warranted, or if the reduction of float time can be justified. Excusable delays can be further classified into excusable with compensation and excusable without compensation.

Excusable with compensation are caused by the clients actions or inactions. When contractors encounter this type of delay, they are entitled to time extension as well as monetary compensation due to the delays. An example of an excusable delay with compensation would be when an owner denies access to the site once the notice to proceed is given.

Excusable without compensation are delays where neither the client nor the contractor is deemed responsible. When this type of delay is encountered, only a time extension will be warranted since there are no grounds for damages. Some examples of excusable without compensation delays are unprovoked strikes, or any act of God.

2.2.2

Non-excusable Delays

Non-excusable delays are delays which result from the contractors or subcontractors actions or inactions. These delays might be the results of underestimates of productivity, improper project planning and scheduling, poor site management and supervision, wrong construction methods, equipment breakdowns, unreliable

11

subcontractors or suppliers. Consequently, this type of delay presents no entitlement to a time extension or delay damages for the contractor if the delay can be proved to have affected the whole project. The client, however, could be entitled to liquidated damages. An example of a non-excusable delay would be when a contractor fails to provide sufficient manpower to complete the job on time.

2.2.3

Concurrent Delays

Concurrent delays refer to delay situations when two or more delays occur at the same time or overlap to some degree either of which, had the delays occurred alone, would have affected the ultimate completion date. Normally concurrent delays which involve any two or more excusable delays result in a time extension. When excusable with compensation and non-excusable delays are concurrent, a time extension can be issued or the delay can be apportioned between the owner and the contractor.

In analyzing concurrent delays, each delay is assessed separately and its impact on other activities and the project duration is calculated. The following guidelines for classifying these kinds of concurrent delays:

If excusable and non-excusable delays occur concurrently, only a time extension is granted to the contractor; If excusable with compensation and excusable without compensation delays occur concurrently, the contractor is entitled to time extension, but not to damages; and

If two excusable with compensation delays occur concurrently, the contractor is entitled to both time extension and damages.

An example of a concurrent delay would be if the client failed to supply detailed designs for specified machine installations (excusable delay with

12

compensation) while at the same time, the contractor who would have installed those machines was on strike (excusable delay without compensation). In this scenario, since both excusable with compensation and excusable without compensation delays are present, the contractor would be entitled to a time extension, but not to damages.

Although such guidelines are useful for the purpose of carrying out delay analysis, it is in the best interest of all parties involved in a construction project to agree, at the beginning, the definitions of such delays and accommodate them throughout the contract language. Until the development of CPM schedule analysis, there was no reliable method to differentiate the impact of the impact of contractor caused delays from client caused delays. With the sophisticated computerized

techniques now available, however, it has become possible to segregate the impacts of apparently concurrent client and contractor delays.

2.3.

Causes of Delays

There are many factors that contributed to causes of delays in construction projects. These range from factors inherent in the technology and its management, to those resulting from the physical, social, and financial environment. Assaf, et al. (1995) studied the causes of delays in large building construction projects in Saudi Arabia. The most important causes of delay includes: approval of shop drawings; delays in payment to contractors and the resulting cash problems during construction; design changes; conflicts in work schedules of subcontractors; slow decision making and executive bureaucracy in owners organizations; design errors; labor shortage and inadequate labor skills.

Ogunlana, et al.(1996) studied the delays in building project in Thailand, as an example of developing economies. They concluded that the problems of the construction industry in developing economies can be nested in three layers: problem of shortages or inadequacies in industry infrastructure, mainly supply of resources;

13

problems caused by clients and consultants; and problems caused by incompetence of contractors. They were classified source and causes of delays into six groups:

Owners related factors include change orders and slow decision making; Designers related factors include incomplete drawings and low response; CM or inspector related factors include deficiencies in organization, deficiencies in coordination; and uncompromising attitude; Contractors related factors include materials management problem, deficiencies in organization, coordination deficiencies, planning and scheduling problems, equipment allocation problems, financial difficulties, and inadequacy of site inspection;

Resources suppliers related factors include shortage of construction materials, late delivery, price escalation, low quality of materials, shortage of site workers, shortage of technical personnel, insufficient numbers of equipment, and frequent equipment breakdown; and

Others factors include confined site, problems with neighbors, and slow permits by Government agencies.

Mezher and Tawil (1998) conducted a survey of the causes of delays in the construction industry in Lebanon from the viewpoint of owners, contractors and architectural/engineering firms. It was found that 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. Chan and Kumaraswamy (1996) surveyed the causes of construction delays in Hongkong as seen by clients, contractor and consultants, and examined the factors affecting productivity. The results of their research indicate that the five principal and common causes of delays are: poor site management and supervision; unforeseen ground condition; low speed of decision making involving all projects team; client initiated variations; and necessary variation of works. These causes were categorized into the following into eight groups:

14

Project-related factors include project characteristics, necessary variations, communication among the various parties, speed of decision making involving all project teams, and ground conditions;

Client-related factors include those concerned with client characteristics, project financing, their variations and requirements, and interim payments to contractors;

Design team-related factors include design team experience, project design complexity, and mistakes and delays in (producing) design documents; Contractor-related factors include contractor experience in planning and controlling the projects, site management and supervisions, degree of subcontracting, and their cash-flow;

Materials related factors include shortages, materials changes, procurement programming, and proportion of off-site prefabrication; Labor factors related include labor shortages, low skill levels, weak motivation, and low productivity; Plant/Equipment related factors include shortages, low efficiency,

breakdowns, and wrong selection; and External factors include waiting time for approval of drawings and test samples of materials and environmental concerns and restrictions.

Abd. Majid and McCaffer (1998) studied the factors of non-excusable delays that influence contractors performance. They classified the main causes of nonexcusable delays according to the source of occurrence, and then identified the factor contributing to those causes. It is assumed that the client has more control over the compensable delays and can take action to prevent them. The contractor is expected to have control over the non-excusable delays and, presumably, do more to prevent them. They classified the factor of causes of non-excusable delays into twelve groups: material-related delays; labor-related delays; equipment-related delays;

financial-related delays; improper planning; lack of control; subcontractor-related delays; poor coordination; inadequate supervision; improper construction methods; technical personnel shortages; and poor communication. The following are a brief description of these factor categories:

15

Material-related delays factors include late delivery, unreliable supplier, damaged materials, poor quality, poor materials planning, poor monitoring and control, and inefficient communication;

Labor-related

delays

factors

includes

low

mobilization,

unreliable

subcontractor, poor labor planning, strikes, poor workmanship, low morale/motivation, absenteeism, poor monitoring and control, and inefficient communication; Equipment-related delays factors include poor equipment planning, late delivery, equipment breakdown, improper equipment, unreliable supplier, poor monitoring and control, and inefficient communication; Improper planning factors include attitude, inappropriate

practices/procedures, lack of facilities, and lack of experience; Financial-related delays factors include delay payment to supplier and/or subcontractor, inadequate fund allocation, poor monitoring and control, and poor financial planning; Lack of control factors include lack of experience, attitude, shortages of personnel, inappropriate practices/procedures, low morale/motivation, and deficient contract; Subcontractor-related delays factors include unreliable subcontractor, subcontractor bankruptcy, interferences with other trade, poor monitoring and control, absenteeism, poor quality, and slow mobilization; Poor coordination factors include inappropriate practices/procedures, shortages of personnel, and lack of experience; Inadequate supervision factors include too many responsibilities, shortages of personnel, shortages of personnel, absenteeism, inappropriate

practices/procedures, poor quality, and poor labor planning; Improper construction methods factors include wrong methods statement, lack of experience, inadequate fund allocation, inappropriate

practices/procedures, and unavailability of proper resources; Technical personnel shortages factors include strike, absenteeism, lack of experience, poor planning, and slow mobilization; and

16

Poor communication factors include lack of facilities, lack of experience, and inappropriate practice/procedures.

Al-Momani (2000) conducted a quantitative analysis of construction delays by examining the records of 130 public building projects constructed in Jordan during period of 1990-1997. The researcher presented regression models of the relationship between actual and planned project duration for different causes of delays. The researcher concluded that the main causes of delays in construction projects relate to designers, user changes, weather, site conditions, late deliveries, economic conditions, and increase in quantities. Odeh and Battaineh (2002) studied causes of construction delay in Jordan. In their study presents results of the survey indicate that contractors and consultants agreed that owner interference, inadequate contractor experience, financing and payments, labor productivity, slow decision making, improper planning, and subcontractors are among the top ten most important factors. They classified the causes of delays into the following eight major groups:

Client related factors include finance and payments of completed work, owner interference, slow decision-making by owners, and unrealistic imposed contract duration;

Contractor

related

factor

include

subcontractors,

site

management,

construction methods, improper planning, mistakes during construction, and inadequate contractor experience; Consultant related factor include contract management, preparation and approval of drawings, quality assurance/control, and waiting time for approval of test and inspections; Material related factor include quality of material and shortage in material; Labor and equipment related factor include labor supply, labor productivity, and equipment availability and failure; Contract related factor include change orders, mistakes and discrepancies in contract documents, contractual relationship related factor include, major disputes and negotiations, inappropriate overall organizational structure

17

linking all parties to the project, and lack of communication between the parties; and External factors include weather condition, regulatory changes and building code, problems with neighbors, and unforeseen ground conditions.

Frimpong, et al. (2003) revealed the main causes of delays in construction of groundwater projects in Ghana included: monthly payment difficulties from

agencies, poor contractor management; material procurement, poor technical performances, and escalation of material prices. Koushki, et al. (2005) identified the main causes of delays in the construction of private residential projects in Kuwait included: changing orders; owners financial constraints; owners lack of experience in the construction business; contractor-related problem; and material related problem.

Wiguna and Scott (2005) studied the risks affecting construction delay and cost overruns in building projects in Surabaya and Denpasar, Indonesia. The most critical risk affecting cost overrun and delay perceived by the building contractors were: high inflation/increased material price; design change by owner; defective design; weather conditions; delayed payments on contract; and defective construction work. Long, et al. (2004), studied the problems in large construction projects in developing countries, a case study from Vietnam. They revealed that the problems could be grouped under five major factors; incompetent designers/contractors; poor estimation and change management; social and technological issues; site related issues; and improper techniques and tools.

2.4.

Identify Factors and Groups

The literature review was done through books, conference proceedings, the internet, and engineering journals. In the next step, all the causes for delays that may

18

be encountered in a construction project were identified through a detailed review of literature.

2.4.1

Factors of Material Related Delays

Category of material related delays was identified as one of the groups of causes of delays in construction projects. Any factor that is related to materials was categorized under this group of causes. One of the sources used to identify the factors under materials group of causes was the literature review. Not all the possible factors could be cited from the literature hence the cause-and-effect diagram as shown in Figure 2.1 was employed to assist in identifying additional factors.

Poor procurement of materials

Poor quality of material

Shortage of material Material

related delays

Imported of Escalation of material materials prices

Late delivery of material

Unreliable suppliers

Figure 2.1

Breakdown of factors of material related delays

Several studies identified the factors of material related delays. Abd Majid and McCaffer (1998) identified the factor of shortage of material, poor quality of material, poor procurement of material, late delivery of material, and unreliable suppliers that contribute to causes of delays. Chan and Kumaraswamy (1996) revealed that factors shortage of material and poor procurement of material as

19

contributors that contribute to causes of delays. Ogunlana, et al. (1996) the result of their studied that factor shortage of material, poor quality of material, escalation of material prices and late delivery were identified as factors to causes of delays in construction project. Odeh and Bataineh (2002) identified the factor of poor quality of materials having high influence to causes of delays. Koushki, et al. (2005) revealed that factor shortage of construction material, poor quality of material, and poor procurement of material that contribute to causes of delays. Frimpong, et al. (2003) identified the factor of poor procurement of materials that contributed to causes of delays. Wiguna and Scoot (2005) identified the factor of escalation of material prices was one factor that contribute to causes of delays.

Based on this previous literature review, there are seven factors of material related delays were identified as shown in Table 2.1.

Table 2.1: Factors of material related delays Groups Material related delays Factors 1. Shortage of construction materials 2. Poor quality of construction materials 3. Poor procurement of construction materials 4. Imported of construction materials 5. Escalation of material prices 6. Late delivery of materials 7. Unreliable suppliers

20

2.4.2

Factors of Labor Related Delays

Group of labor related delays, one of the groups of causes identified earlier, was commonly cited in the literature that caused of delays. Several factors that related to labor can be distinguished and categorized under the principle cause. The methodology of establishing the factors of this group of causes was similar to that of the material related delays. . Not all the possible factors could be cited from the literature hence the cause-and-effect diagram as shown in Figure 2.2 was employed to assist in identifying additional factors.

Labor productivity

Shortage of skill Labor

Slow mobuilization of labor Labor related delays

Labor Supply

Absenteeism

Strike

Low motivation and morale

Figure 2.2

Breakdown of factors of labor related delays

Abd Majid and McCaffer (1998) identified the factors of slow mobilization of labor, labor supply, absenteeism, strike, and low motivation and morale are the critical factors that contribute to causes of delays. Odeh and Bataineh (2002) in their research identified the factors of labor of productivity and labor supply as contributors to causes of delays. Chan and Kumaraswamy (1996) identified the factor of shortage of skill labor is the most important factor that contributed to causes of delays. Ogunlana, et al. (1996) identified the factor of shortage of skill labor and labor productivity having high influence to causes of delays.

21

Based on this previous literature review, there are seven factors of labor related delays were identified as shown in Table 2.2.

Table 2.2: Factors of labor related delays Groups Labor related delays Factors 1. Slow mobilization of labor 2. Shortage of skill labor 3. Labor productivity 4. Labor supply 5. Absenteeism 6. Strike 7. Low motivation and morale

2.4.3

Factors of Equipment Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays and labor related delays. One of the sources used to identify the factors under equipment group of causes was the literature review. Not all the possible factors could be cited from the literature hence cause-and-effect diagram as shown in Figure 2.3 was employed to assist in identifying additional factors.

There are several studies by numerous researchers identified the factors of equipment related delays. Ogunlana, et al. (1998) identified the factors of insufficient numbers of equipment; frequent equipment breakdown, and equipment allocation problem are the most significant factors that contribute to causes of delays. Abd Majid and McCaffer (1998) identified the factors of equipment breakdown, improper

22

equipment, slow mobilization of equipment, and equipment allocation problem as contributors to causes of delays. Chan and Kumaraswamy (1996) identified the factor of shortage of equipment and improper equipment as factors that contribute to causes of delays. Odeh and Bataineh (2002) identified the factor of equipment allocation problem having high occurrence to causes of construction delays. Long, et al. (2004), identified the factor of inadequate modern equipment as factors of equipment related delays.

Shortage Frequent equipment of equipment breakdown

Insufficient numbers of equipment

Equipment related

delays Slow mobilization of equipment Equipment Inadequate allocation modern problem equipment

Improper Equipment

Figure 2.3

Breakdown of factors of equipment related delays

Based on this previous literature review, there are seven factors of equipment related delays that were identified as shown in Table 2.3.

Table 2.3: Factors of equipment related delays Groups Equipment related delays Factors 1. Insufficient numbers of equipment 2. Frequent equipment breakdown 3. Shortage of equipment parts 4. Improper equipment 5. Slow mobilization of equipment 6. Equipment allocation problem 7. Inadequate modern equipment

23

2.4.4

Factors of Finance Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays, labor related delays, and equipment related delays. One of the sources used to identify the factors under finance group of causes was the literature review. Not all the possible factors could be cited from the literature hence cause-and-effect diagram as shown in Figure 2.4 was employed to assist in identifying additional factors.

Contractors Financial difficulties

High interest rate

Inadequate fund allocation Finance related delays

Clients Financial Difficulties

Unreasonable Delay payment Monthly constraints to suppliers/ payment to client subcontractors difficulties

Figure 2.4

Breakdown of factors of finance related delays

Abd Majid and McCaffer (1998) identified the factors of inadequate fund allocation and delay payment to subcontractor/suppliers as contributor to causes of delays in construction project. Long, et al.(2004), identified the factors of high interest rate that contribute to causes of delays. Ogunlana, et al. (1996) identified the factors of contractors financial difficulties having high influence to causes of delays. Chan and Kumaraswamy (1996) identified the factors of clients financial difficulties and monthly payment difficulties as contributor to causes of delays. Koushki, et al. (2005) revealed that the factor of unreasonable constraints to client have high influence to causes of delays. Frimpong, et al. (2003) identified the factor of monthly payment difficulties is the most important factors that contribute to causes of delays.

Based on this previous literature review, there are seven factors of finance related delays were identified as shown in Table 2.4.

24

Table 2.4: Factors of finance related delays Groups Finance related delays Factors 1. Inadequate fund allocation 2. High interest rate 3. Contractors financial difficulties 4. Clients financial difficulties 5. Unreasonable constraints to client 6. Delay payment to suppliers/subcontractors 7. Monthly payment difficulties

2.4.5

Factors of Contractor Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays, labor related delays, equipment related delays, and finance related delays. One of the sources used to identify the factors under contractor group of causes was the literature review. Not all the possible factors could be cited from the literature hence the cause-and-effect diagram as shown in Figure 2.5 was employed to assist in identifying additional factors.

Inaccurate cost estimate

Inaccurate Inappropriate Inadequate time construction contractor estimate methods experience

Contractor

related delays

Poor Site Improper Management Project Incompetent Unreliable and super- Planning & project SubObsolete vision Scheduling team contractor technology

Figure 2.5

Breakdown of factors of contractor related delays

25

Numerous researchers were identified the factors of contractor related delays that contribute to causes of delays. Abd Majid and McCaffer (1998) identified the factors of inadequate contractor experience, inappropriate construction methods, and improper project planning and scheduling, and unreliable subcontractor as

contributor to causes of delays. Long, et al. (2004), identified the factors of inadequate contractor experience, inappropriate construction methods, inaccurate time estimating, inaccurate cost estimating, improper project planning and scheduling, incompetent project team, unreliable subcontractor, and obsolete technology that contribute to causes of delays in construction project. Odeh and Battaineh (2002) identified the factors of inadequate contractor experience, inappropriate construction methods, poor site management and supervision, and unreliable subcontractor as contributors to causes of delays. Chan and Kumaraswamy (1996) identified the factors of poor site management and supervision and improper project planning and scheduling that contribute to causes of delays. Ogunlana, et al. (1996) identified the factor of improper project planning and scheduling as factors of contractor related delays.

Based on this previous literature review, there are seven factors of contractor related delays were identified as shown in Table 2.5.

Table 2.5: Factors of contractor related delays Groups Contractor related delays Factors 1. Inadequate contractor experience 2. Inappropriate construction methods 3. Inaccurate time estimate 4. Inaccurate cost estimate 5. Poor site management and supervision 6. Improper project planning and scheduling 7. Incompetent project team 8. Unreliable subcontractor 9. Obsolete technology

26

2.4.6

Factors of Client Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays, labor related delays, equipment related delays, finance related delays and contractor related delays. One of the sources used to identify the factors under client group of causes was the literature review. Not all the possible factors could be cited from the literature hence cause-and-effect diagram as shown in Figure 2.6 was employed to assist in identifying additional factors.

Change order

Lack of experience of client in construction

Slow decision making by client Client related delays

Lack of Client capable Interference representative

Lack of communication and coordination

Improper project feasibility study

Figure 2.6 Breakdown of factors of client related delays

Based on literature review, there are several studies identified the factors client delays. Odeh and Battaineh (2002) identified the factors of change orders, and slow decision making by client that contribute to causes of delays. Long, et al. (2004) identified the factors client interference, lack of capable representative, lack of communication and coordination, and improper project feasibility study that contribute to causes of delays in construction project. Ogunlana, et al. (1996)

identified factors change orders and slow decision making by client as contributors to causes of delays. Koushki, et al. (2005) identified factors of change orders and lack of experiences of client in construction project have high influence to the causes of delays.

27

Based on this previous literature review, there are seven factors of client related delays were identified as shown in Table 2.6.

Table 2.6: Factors of client related delays Groups Client related delays Factors 1. Slow decision making by client 2. Lack of experience of client in construction 3. change orders 4. Client interference 5. Lack of capable representative 6. Lack of communication and coordination 7. Improper project feasibility study

2.4.7

Factors of Consultant Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays, labor related delays, equipment related delays, finance related delays, contractor related delays and client related delays. To identify the factors to causes of delays related to consultant responsible based on literature review and the cause-and-effect diagram as shown in Figure 2.7.

28

Inadequate project management assistance

Poor design and delay in design

Inadequate consultant experience Consultant related delays

Slow response & Poor inspection

Incomplete drawing and Inaccurate detail design site investigation

Figure 2.7

Breakdown of factors of consultant related delays

Several studies identified the factors of consultant related delay. Long, et al. (2004) identified the factors of inadequate consultant experience, inadequate project management assistance, incomplete drawing and detail design, and inaccurate site investigation as contributors to causes of delays. Odeh and Battaineh (2002) identified the factors of slow response and poor inspection as factors of consultant related delays. Ogunlana, et al. (1996) identified the factors of poor design and delay in design, slow response and poor inspection, and incomplete drawing and detail design that contribute to causes of delays in construction project.

Based on this previous literature review, there are seven factors of consultant related delays were identified as shown in Table 2.7.

29

Table 2.7: Factors of consultant related delays Groups Consultant related delays Factors

1. Inadequate consultant experience 2. Poor design and delays in design 3. Inadequate project management assistance 4. Slow response and poor inspection 5. Incomplete drawing/detail design 6. Inaccurate site investigation

2.4.8

Factors of External Related Delays

The methodology of establishing the factors of this group of causes was similar to that of the material related delays, labor related delays, equipment related delays, finance related delays, contractor related delays, and consultant related delays. One of the sources used to identify the factors under external group of causes was the literature review and cause-and-effect diagram as shown in Figure 2.8 was employed to assist in identifying additional factors. Several studies by numerous researchers identified factors of external related delays.

Inflation/ Price Fluctuation

Unexpected geological condition

Unforeseen ground condition External related delays

Slow site Clearance

Problem with neighbors

Weather Conflict, war/ condition public enemy

Figure 2.8

Breakdown of factors of external related delays

30

There are several studies identified the factors that contribute to causes of delays. Odeh and Battaineh (2002) identified the factors of unforeseen ground condition, problem with neighbours, and weather condition as contributors to causes of delays. Long, et al. (2004) identified factors unforeseen ground condition, inflation/price fluctuation, slow site clearance, and weather condition as factors of external related delays. Wiguna and Scott (2005) identified the factor of inflation/prices fluctuation having high influence to causes of delays. Ogunlana, et al. (1996) identified the factors of problem with neighbours that contribute to causes of delays. And AL-Momani (2000) identified the factor of weather condition as contributors to causes of delays in construction project.

Based on this previous literature review, there are seven factors of external related delays were identified as shown in Table 2.8.

Table 2.8: Factors of external related delays Groups External related delays Factors 1. Unforeseen ground condition 2. Unexpected geological condition 3. Inflation/Prices fluctuation 4. Slow site clearance 5. Problem with neighbours 6. Weather condition 7. Conflict, war, and public enemy

2.4.9

Groups and Factors that Causes Delays The Ishikawa diagram (Fish Bone diagram)) has been used to establish the

factors that contributed to the causes of delays as shown in Figure 2.9.

FINANCE Monthly Payment Difficulties . Delay Payment to Supplier/ Subcontractor Unreasonable Constraint to the Client Clients Financial Difficulties

EQUIPMENT Inadequate Modern Equipment Equipment Allocation Problem Slow Mobilization of Equipment . Improper Equipment .

LABOR Low Motivation/Morale Strike . Absenteeism . .

MATERIAL Unreliable Supplier .

Late Delivery of Material Escalation of Material Prices . . Imported Construction Material . Poor Procurement of Construction Material

Labor Supply Labor Productivity Shortage of Skill Labor .

Contractors Financial Difficulties High Interest Rate Inadequate Fund Allocation . .

Shortage of Equipment Parts . Frequent Equipment Breakdown Insufficient Numbers of Equipment

Slow Mobilization of Labor . . . . CONSTRUCTION DELAY Poor Quality of Material Shortage of Material .

Inadequate Contractor Experience Inappropriate Construction Methods . Inaccurate Time Estimate Inaccurate Cost Estimate Poor Site Management and Supervision Improper Planning & Scheduling Incompetent Project Team Unreliable Subcontractor Obsolete Technology CONTRACTOR . . . . .

. Slow Decision Making by Client Inadequate Consultant Experience . Poor Design / Delays in Design Inadequate Project Management Assistance . Lack of Experience of Clients in Construction Change Orders Clients Interference Lack of Capable Representative . Lack of Communication & Coordination between parties . . Improper Project Feasibility Study CLIENT . War/Conflict/Public Enemy EXTERNAL Weather Condition .. . . Unforeseen Ground Condition Unexpected Geological Condition Inflation Slow Site Clearance . .

Slow Response and Poor Inspection Incomplete Drawing/ Detail Design Inaccurate Site Investigation CONSULTANT

Problem with Neighbors .

Figure 2.9

The Ishikawa Diagram (Fish Bone Diagram) of factors that contributed to the causes of delays

32

2.5.

Summary

A total of fifty seven factors in eight groups of causes of delays used on questionnaire survey in order to collect data from the targeted respondent. Table 2.9 shows completely the groups and factors were identified based on literature review which contributed to the causes of delays in construction project.

Table 2.9: Groups and factors that causes of delays

Groups Material related delays

Factors that causes of delays 1. Shortage of construction materials 2. Poor quality of construction materials 3. Poor procurement of construction materials 4. Imported of construction materials 5. Escalation of material prices 6. Late delivery of materials 7. Unreliable suppliers 1. Slow mobilization of labor 2. Shortage of skill labor 3. Labor productivity 4. Labor supply 5. Absenteeism 6. Strike 7. Low motivation and morale 1. Insufficient numbers of equipment 2. Frequent equipment breakdown 3. Shortage of equipment parts 4. Improper equipment 5. Slow mobilization of equipment 6. Equipment allocation problem 7. Inadequate modern equipment 1. Inadequate fund allocation 2. High interest rate 3. Contractors financial difficulties 4. Clients financial difficulties 5. Unreasonable constraints to client 6. Delay payment to suppliers/subcontractors 7. Monthly payment difficulties

Labor related delays

Equipment related delays

Finance related delays

33

Groups Contractor related delays

Factors to causes of delays

1. Inadequate contractor experience 2. Inappropriate construction methods 3. Inaccurate time estimate 4. Inaccurate cost estimate 5. Poor site management and supervision 6. Improper project planning and scheduling 7. Incompetent project team 8. Unreliable subcontractor 9. Obsolete technology 1. Slow decision making by client 2. Lack of experience of client in construction 3. change orders 4. Client interference 5. Lack of capable representative 6. Lack of communication and coordination 7. Improper project feasibility study 1. Inadequate consultant experience 2. Poor design and delays in design 3. Inadequate project management assistance 4. Slow response and poor inspection 5. Incomplete drawing/detail design 6. Inaccurate site investigation 1. Unforeseen ground condition 2. Unexpected geological condition 3. Inflation/Prices fluctuation 4. Slow site clearance 5. Problem with neighbors 6. Weather condition 7. Conflict, war, and public enemy

Client related delays

Consultant related delays

External related delays

CHAPTER 3

EFFECTS AND MINIMIZING CONSTRUCTION DELAYS

3.1.

Introduction

Projects are classically defined by the need to complete a task on time, to budget, and with appropriate technical performance/quality. In recent decades, projects have tended to become more time constrained, and the ability to deliver a project quickly is becoming an increasingly important element in winning a bid.

A project consists of collections of activities. An activitys completion may be delayed due to a delayed start or extended activity duration. While an activitys start may be delayed due to certain reasons, its duration may be extended due to some other reasons. Activitys delayed completion may cause delays in the succeeding activities, which in turn can cause a delay in the project completion.

Shi, et al. (2001), delays can occur in any and all activities, and these delays can concurrently or simultaneously cause delays in the project completion. In other words, a project delay is the accumulated effect of the delays in individual activities.

Delays can give rise to disruption of work and loss of productivity, late completion of project, increased time related costs and third party claims and abandonment or termination of contract.

35

Methods of minimizing construction delays can be established when causes of delays are identified. Knowing the cause of any particular delay in a construction project would help avoiding the same.

3.2.

Effects of Delays

Aibinu and Jagboro (2002) studied the effects of construction delays on project delivery in Nigerian construction industry. The six effects of delay identified were: time overrun, cost overrun, dispute, arbitration, total abandonment, and litigation as shown in Table 3.1. By a questionnaire evaluates and through empirical method assesses the effects of construction delays, and the findings showed that time and cost overruns were the frequent effects of delay. Delay had significant effects on completion cost and time of sixty one building projects studied.

Table 3.1: The effects of delays

Effects of Delay Time overrun Cost overrun Dispute Arbitration Litigation Total Abandonment Source : Aibinu and Jagboro (2002)

Rank 1 2 3 4 5 6

Construction cost overrun is a common problem in the construction industry. It is believed that construction projects experience an increase in cost of about 33% on average (Hartley and Okamoto, 1997). Over the past few years state transportation agencies have experienced an increasing trend of construction cost overruns. To illustrate the problem, in a survey of 102 recently completed projects with initial budget USD 302.7 million conducted by the Florida Department of Transportation, the construction cost overruns were found to be USD 28.6 million

36

(9.5%). Over half of this amount (USD 15.6 million or 5.2% of the budget) was classified as avoidable costs, and the remaining amount was considered to be unavoidable. About USD 4.2 million (1.4% of the budget) in avoidable cost overruns did not add value for citizens and represent wasted money. In general, steps need to be taken to minimize cost overruns.

3.3.

Minimizing Construction Delays

The success of construction projects is very important for all project participants as well as the community and the nation to sustain national development. However, various factors affect whether or not a project is completed successfully.

Several researchers conducted studies, recommended and identified the method of minimizing delay in construction project. Nguyen, et al. (2004) studied the project success factors in large construction projects in Vietnam. A questionnaire survey was used to collect data from construction practitioners. The following are factors that can be applied as a method of minimizing of construction delays as follows: competent project manager; multidisciplinary/competent project team; availability of resources; commitment to projects; frequent progress meeting; accurate initial cost estimates; accurate initial time estimates; awarding bids to the right/experience consultant and contractor; proper emphasis on past experience; community involvement; systematic control mechanism; comprehensive contract documentation; effective strategic planning; clear information and communication channels; use up to date technology utilization; and absence of bureaucracy.

Aibinu and Jagboro (2002) identified two methods to minimize or if possible eliminate time overrun were: acceleration of site activities, and contingency allowance. 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; allocation of sufficient time and money at the design phase;

37

select of a competent consultant and a reliable contractor to carry out the work; perform a preconstruction planning of project tasks and resource needs; hire an independent supervising engineer to monitor the progress of the work; and ensure timely delivery of materials.

Odeh and Battaineh (2002) recommended to improve the situation of construction project were require: enforcing liquidated damage clauses and offering incentives for early completion; developing human resources in the construction industry through proper training and classifying of craftsman; adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities and past performance of contractors; and adopting new approaches to contracting such as design-build and construction management (CM) type of contracts.

3.4.

Identify the Factors and Methods

Based on the literature review identified the six factors were common effects of delays in construction project. Furthermore, these factor used in questionnaire survey in order to identify the common effects of delays in construction project. The following are six factors that were common contributed to construction delay which includes:

Time Overrun; Cost Overrun; Dispute; Arbitration; Total abandonment; and Litigation.

38

Based on several studies of project success factors and minimizing delays in construction project, a total of thirty five methods have been identified in order to minimize construction delays as shown in Table 3.2

Table 3.2: Methods of minimizing construction delays

No 1 2 3 4 5 6 Competent project manager;

Methods

Ensure adequate and available source of finance; Multidisciplinary/competent project team; Availability of resources; Commitment to projects; Adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities and past performance of

contractors; Adopting new approaches to contracting such as Design-Build (D/B) and Construction Manager (CM) type of contract;

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Complete and accurate project feasibility study and site investigation; Acceleration of site clearance; Comprehensive contract documentation; Frequent progress meeting; Project management assistance; Use up to date technology utilization; and Use of experienced subcontractors and suppliers; Complete and proper design at the right time; Competent personnel of consultant/designer; Competent and capable of clients representative; Site management and supervision; Use of proper and modern construction equipment; Proper project planning and scheduling; Accurate initial cost estimates; Use of appropriate construction methods;

39

No 23 24 25 26 27 28 29 30 Community involvement;

Methods

Proper emphasis on past experience; Frequent coordination between the parties involved; Absence of bureaucracy; Clear information and communication channels; Accurate initial time estimates; Proper material procurement; Developing human resources in the construction industry through proper training;

31 32 33 34 35

Allocation of sufficient time and money at the design phase; Awarding bids to the right/experience consultant and contractor; Perform a preconstruction planning of project tasks and resources needs; Systematic control mechanism; and Effective strategic planning.

3.5.

Summary

Six factors that common contributed to delays and thirty five methods of minimizing delays were identified based on literature review. These factors and methods are used to develop the questionnaire survey.

CHAPTER 4

RESEARCH METODOLOGY

4.1.

Introduction

The research methodology will explain how the objectives of this study can be achieved. This study was carried out based on literature review and questionnaire survey. Subsequently, data collection from the questionnaire survey being analyzed using the statistical methods, and their results are presented. It follows by some discussions, conclusions and recommendation.

4.2

Literature Review

In achieving the objectives of this study, the information regarding causes of delays, effects of delays, and methods of minimizing delays were obtained from various sources i.e., international journal, international conference, and published books. Based on previous literature were identified fifty seven factors that contributed to the causes of delays, six factors that effect delays, and thirty five methods of minimizing delays in construction project. These factors and methods were used to develop the questionnaire survey in order to collected data from the targeted respondent.

41

4.3

Data collection

Data collection is the most critical part of the study since the accuracy of the data will determine the success or failure of the research. Data obtained through these questionnaires will be analyzed accordingly using appropriate analysis techniques. Responses from questionnaires will then be compiled and analyzed. Data collected from different questions will be gathered to answer different objectives. Analysis is done based on various categories by using the statistical methods.

4.4

Questionnaire Design

The questionnaire was designed based on factors were identified that contributed to the causes of delays, the effects of delays and the methods to minimize delays. A questionnaire survey was developed to assess the perceptions of contractors and consultants of the relative importance of causes and the effects of construction delays.

The questionnaire was designed into four sections: section A; section B; section C; and section D.

4.4.1

Section A: Company and Respondent Profile

This section is to obtain the information about the respondents. The questionnaire includes the following:

The company in which the person respondent represents (serve); The position of the respondent in the company;

42

The experience of the respondent in construction project; The experience of the company in construction industry; and The range of project cost involved.

4.4.2

Section B: Causes of Delays

This section is to obtain the information on factors that contribute to the causes of delays in construction projects from the perspective of contractors and consultants. There are eight categories with fifty seven factors of causes of delays identified are then constructed into structured question. The questionnaire is mainly based on Linkerts scale of five ordinal measures from one (1) to five (5) according to level of contributing. Each scale represents the following rating:

(5) (4) (3) (2) (1)

= = = = =

Very high contributing; High contributing; Medium contributing; Low contributing; and Very low contributing.

4.4.3 Section C: Effects of Delays

This section is focus to identify the frequent effects of delays in construction project. The respondents were asked to rank the individual effect of delays in construction project based on frequency of occurrence according to their own judgment and working experience in contractors and consultants. There are six identified the frequent effects of delays in construction project are then constructed into structured

43

question. The questionnaire is mainly based on Linkerts scale of five ordinal measures from one (1) to five (5) according to level of frequent. Each scale represents the following rating:

(5) (4) (3) (2) (1)

= = = = =

Always; Mostly; Sometimes; Seldom; and Never.

4.4.4

Section D: Methods of Minimizing Construction Delays

This section is to identify the effective methods of minimizing construction delays. There are thirty five methods were identified from several literature review is used in the structured question. The questionnaire is mainly based on Linkerts scale of five ordinal measures from one (1) to five (5) according to level of effectively. Each scale represents the following rating:

(5) (4) (3) (2) (1)

= = = = =

Very high effective; High effective; Medium effective; Low effective; and Very low effective.

44

4.5

Questionnaire Distribution

The developed survey questionnaire was distributed a hundred sets to the targeted respondent. About fifty sets were distributed to the contractors selected randomly from the list of GAPENSI, the National Association of Construction Company, Indonesia, and fifty sets were distributed to the consultants selected randomly from the list of INKINDO, the National Association of Consultants, Indonesia, in Aceh.

4.6

Data Analysis

The procedure used in analyzing of data was aimed at establishing the relative importance of the various factors that contribute to causes of delays, effects of delays, and methods of minimizing construction delays. There are three steps used in analyzing the data: calculating the relative importance index; ranking of factors in each category based on relative importance index, and to determine degree of correlation on ranking the factors among the two groups.

4.6.1

Relative Importance Index

Odeh and Battaineh (2002), to determine the ranking of different factors from the viewpoint of contractors and consultants, the Relative Importance Index (I) was computed as:

45

I=

W X
i =1 5 i

X
i =1

(1)
i

Where : i = response category index = 1,2,3,4, and 5 for: (Section B : Very high~, High~, Medium~, Low~, and Very~ contributing, respectively.); and (Section C : Always~, Mostly~, Sometimes~, Seldom~, and Never~ frequent, respectively.); and (Section D : Very high~, High~, Medium~, Low~, and Very~ effective, respectively.

Wi = the weight assigned to ith response = 1, 2, 3 , 4, 5, respectively. Xi = frequency of the ith response given as percentage of the total responses for each factors.

4.6.2

The Spearmans Rank Correlation Coefficient Test

The Spearmans Rank correlation coefficient is a measure of association, in this case between two groups of respondents and the variables were measures in ordinal scale.

In order to determine there is significant correlation of the ranking of factors that causes delays, effects of delays, and methods of minimizing construction delays the Spearmans Rank correlation

between contractors and consultants perspective, coefficient (Sheskin, 2004) was computed as:

46

rs = 1

6 d 2 N ( N 2 1)

(2)

where : rs = d = N = Spearmans rank correlation coefficient; the difference in ranking between the contractors and consultants; and the number of variables, respectively.

The association between the ranking of contractors and consultants is verified by a hypothesis testing at 95% significance where Z = rs N 1 .

In order to know whether there is disagreement or agreement between the two groups on ranking factors, a test of hypothesis is needed.

Null hypothesis: Ho :

No significant agreement in the rankings among the two groups.

Alternative hypothesis: H1: Agreement in rankings among the two groups.

4.7.

Summary

In order to achieve the objectives of the study, the research methodology has been established. This study was carried out based on literature review and questionnaire survey.

CHAPTER 5

ANALYSIS AND DISCUSSIONS

5.1.

Introduction

This chapter presents the analysis of data and the finding of the research, based on the questionnaire survey. The collected data were analyzed using the method discussed earlier in Chapter Four.

5.2.

Data Collection

In order to identify the most important factors that causes delays, the common effect of delays, and methods of minimizing construction delays, a hundred sets of survey questionnaire was distributed to the targeted respondent. About fifty sets were distributed to the contractors selected randomly from the list of GAPENSI, the National Association of Construction Company, Indonesia, and fifty sets were distributed to the consultants selected randomly from the list of INKINDO, the National Association of Consultants, Indonesia, in Aceh, Indonesia. The

questionnaire survey was completed by directors, project managers, project engineers, site manager, designers/engineer, and supervision engineers.

The total of respondent that completed and returned the questionnaire which comprised of forty six sets from consultants and forty five sets from contractors as shown in Table 5.1.

48

Table 5.1: Questionnaire distribution and responses

Description

Number of Distributed 50 50

Number of Respondents 45 46

Percentage of Number of Responses 49.4 50.6

Contractors Consultants Total

100

91

100.0

5.3.

Analysis of Results

The objective of conducting the analysis for this section is to establish the factors under the groups of causes identified from the literature review and the ranking according to their significant influence towards construction project delays. A ranking method was used to achieve this objective and the significant of using these methods is it can reveal the most influential factors within each category of causes.

5.3.1. Factors and Groups that Causes Delays

A total fifty seven major factors that contributed to causes of delays were identified. The fifty seven factors were grouped into eight major groups: materialrelated; labor-related; equipment-related; finance-related; contractor-related; clientrelated; consultant-related; and external factors. These factors were ranked in each group based on relative importance index from the viewpoint of contractor and consultant. In order to establish the level of agreement of correlation in the ranking between both groups of respondents, the Spearmans Rank correlation coefficient was calculated and the null hypothesis was analyzed. The null hypothesis will be

49

accepted if the level significant observed is more than 5%. This indicates that a probability of 95% is required to conclude that there is a significant agreement in the ranking between both groups of respondents. The following is a brief description of these factors in each group.

5.3.1.1 Factors of Material Related Delays

There are seven factors that contributed to the causes of delays related to material delays were identified and ranked from the viewpoint of contractors and consultants. Table 5.2, shows the results of relative importance index and the ranking of factors of materials related delays between respondent of contractor and consultant. In this category, the null hypothesis, H0 is accepted and this shows that there is no significant agreement in the ranking among the groups of respondents. The Spearmans Rank correlation coefficient, rho (rs) is 0.679 and has a significant value (Z) of 0.094. This value is much higher than 0.05 (5%) which rejected the alternative hypothesis, H1 at a confidence level of 95%.

50

Table 5.2: The result of factors of material related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Shortage of construction materials Poor Quality of construction materials Poor Procurement of construction materials Imported of construction materials Escalation of material prices Late delivery of Materials Unreliable suppliers

4.20

4.24

1 rs = 0.679

3.70

3.73

5 Z = 0.094

3.85

3.60

7 Thus H0 is accepted,

3.89

3.82

3.57

3.71

4.09 3.07

2 7

3.96 3.76

2 4

5.3.1.2

Factors of Labor Related Delays

As shown in Table 5.3, there are seven factors of labor related delays were ranked based on relative importance index from the perspective of contractor and consultants. The results of analysis show that factor of labor productivity is the top most significant factor that contributed to causes of delays among seven factors of labor related delay.

In Table 5.3, shows the results of relative importance index and the ranking of factors of labor related delays between two groups of respondent. The ranking

51

between two groups of respondent of this category has the Spearmans Rank correlation coefficient, rho (rs) is 0.893 and a significant value (Z) of 0.007. Thus the null hypothesis (Ho) is rejected and alternative hypothesis, H1 is accepted. Therefore, concluded that there is a significant degree of agreement between the two groups with respect to their ranking.

Table 5.3: The result of factors of labor related delays Factors Consultant Index Slow mobilization of labor Shortage of Skill labor Labor productivity Labor supply Absenteeism Strike Low motivation/ Morale Rank Contractor Index Rank Spearman's Rank coeff. rho (rs)

3.85

3.76

4 rs = 0.893

4.04 4.11 4.00 3.09 3.30

2 1 3 7 6

3.98 4.00 3.89 3.71 3.31

2
Z = 0.007

1 3 thus 5 Rejected 7 Ho

3.35

3.69

5.3.1.3 Factors of Equipment Related Delays

In Table 5.4 shows the results of survey analysis of factors of equipment related delays. Factors of causes of delays were ranked based on relative importance index from the viewpoint of contractor and consultant. Referring to Table 5.4, this category has the Spearmans Rank correlation coefficient, rho (rs) is 0.764 and a significant value (Z) is 0.046. The null hypothesis, Ho is rejected and alternative

52

hypothesis H1 is accepted. This shows that there is a significant degree of agreement between the ranking of the viewpoint of contractor and consultant.

Table 5.4: The result of factors of equipment related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Insufficient numbers of equipment Frequent equipment Breakdown Shortage of equipment parts Improper equipment Slow mobilization of equipment Equipment allocation Problem Inadequate modern Equipment

4.46

4.4

1 rs = 0.764

4.13

3.93

3
Z = 0.046

3.30 3.59

7 6

3.76 3.73

4 Thus 5 Rejected Ho

3.87

3.73

3.85

3.76

4.33

4.18

5.3.1.4 Factors of Finance Related Delays

There are seven factors that contributed to the causes of delays related to finance were ranked based on relative importance index. Table 5.5, shows the results of relative importance index and the ranking of factors of finance related delays between respondent of contractor and consultant. In this category, the null hypothesis, H0 is rejected and alternative hypothesis, H1 is accepted. The Spearmans

53

Rank correlation coefficient, rho (rs) is 0.901 and has a significant value (Z) of 0.006. This value is much higher than 0.05 (5%) which rejected the alternative hypothesis, H1 at a confidence level of 95%. Therefore, concluded that there is significant degree of agreement in the ranking among the groups of respondents.

Table 5.5: The result of factors of finance related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Inadequate fund allocation High interest rate Contractor's financial difficulties Client's financial difficulties Unreasonable constraints to client Delay payment to suppliers/subcontractors Monthly payment Difficulties

3.85 3.57 4.26

3 5 2

3.76 3.76 4.04

3 3 2 rs = 0.901 Z = 0.006

3.02

3.69

thus Rejected Ho

3.70

3.71

3.09

3.64

4.43

4.29

5.3.1.5 Factors of Contractor Related Delays

In Table 5.6 shows the results of survey analysis of factors of contractors related delays. Factors to causes of delays were ranked based on relative importance index between group of respondent of contractor and consultant. Referring to Table

54

5.6, this category has the spearmans rank correlation coefficient, rho (rs) is 0.983 and a significant value (Z) is 0.001. The null hypothesis, Ho is rejected and alternative hypothesis H1 is accepted. This shows that there is a significant degree of agreement between the ranking of contractor and consultant.

Table 5.6: The result of factors of contractor related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank Coeff. Rho (rs)

Inadequate contractor experience Inappropriate construction methods Inaccurate time estimating Inaccurate cost estimating Poor site management and supervision Improper project planning and scheduling Incompetent project team Unreliable subcontractor Obsolete technology

3.83

3.73

8 rs = 0.983

4.22

4.07

7
Z = 0.001

thus 4.48 1 4.36 1 Rejected Ho 4.35 2 4.27 2

4.30

4.22

4.24

4.13

4.28

4.16

4.17 3.26

7 9

4.11 3.4

6 9

55

5.3.1.6 Factors of Client Related Delays

As shown in Table 5.7, both group of respondent agreed on the ranking of the factors based on relative importance index. The Spearmans Rank correlation, rho (rs) is 0.929, and significant value (Z) is 0.003, which indicates a significant agreement in the ranking hence the null hypothesis, Ho is rejected and alternative hypothesis, H1 is accepted.

The result of data analysis and the ranking of factors that contributed to the causes of delays between contractor and consultant as shown in Table 5.7, from the analysis factor of change order is the most significant factor that contributed to the causes of delays among seven factors of client related delays.

Table 5.7: The result of factors of client related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Slow decision making by client Lack of experience of client in construction Change orders Clients interference Lacks of capable Representative Lack of communication and coordination Improper project feasibility study

3.96

3.87

2 rs = 0.929

3.91 4.39 3.48

4 1 7

3.78 4.31 3.73

4 Z = 0.003 1 Thus 6 Rejected Ho

3.85

3.76

4.02

3.8

3.80

3.71

56

5.3.1.7 Factors of Consultant Related Delays

In Table 5.8 shows the results of survey analysis of factors of consultant related delays. Factors of causes of delays were ranked based on relative importance index between respondents of contractor and consultant. Referring to Table 5.8, this category has the Spearmans Rank correlation coefficient, rho (rs) is 0.928 and a significant value (Z) is 0.008. The null hypothesis, Ho is rejected and alternative hypothesis H1 is accepted. This shows that there is a significant degree of agreement between the ranking of contractor and consultant.

Table 5.8: The result of factors of consultant related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Inadequate consultant Experience Poor design and delays in design Inadequate project management assistance Slow response and poor inspection Incomplete drawing/ detail design Inaccurate site Investigation

3.43

3.73

4 rs = 0.928

3.98

4.02

1 Z = 0.008

3.76

3.76

3 thus Rejected Ho

3.93

3.84

3.52

3.76

3.46

3.71

57

5.3.1.8

Factors of External Related Delays

There are seven factors of external related delays that contributed to the causes of delays were ranked based on relative importance index between contractor and consultant as sown in Table 5.9. The Spearmans Rank correlation coefficient, rho (rs) is 0.070 and significant value (Z) is 0.882 which much greater than 0.005 . The null hypothesis, Ho is accepted and alternative hypothesis, H1 is rejected. This shows that there is no significant degree of agreement in the ranking between both contractor and consultant perspective.

Table 5.9: The result of factors of external related delays

Factors

Consultant Index Rank

Contractor Index Rank

Spearman's Rank Coeff. rho (rs)

Unforeseen ground Condition Unexpected geological Condition Inflation/Prices Fluctuation Slow site Clearance Problem with Neighbours Weather condition Conflict, War and Public enemy

3.83

3.73

rs = 0.070 3.80 3 3.73 3 Z = 0.882 thus 3.83 2 3.71 4 Accepted Ho 4.07 1 3.91 1

3.17 3.59 3.76

6 5 4

3.73 3.76 3.73

3 2 3

58

5.3.1.9 Groups of Causes of Delays

The survey is based on 57 factors that were grouped into eight groups of causes of delays. Calculating the average index of the factors to causes of delays in each group provides the relative importance index of the main groups as shown in Table 5.10. Based on relative importance index, the major causes of delays group were ranked between two groups of respondent of contractors and consultants. Referring to Table 5.10, the Spearmans Rank correlation coefficient, rho (rs) is 0.885 and significant value (Z) is 0.003, which less than 0.005 (5%). The null hypothesis, Ho is rejected and alternative hypothesis, H1 is accepted. Therefore, concluded that there is a significant degree of agreement in the ranking between contractor and consultant.

Table 5.10: The result of major delays groups

Groups

Consultant Index

Spearman's Rank coeff. rho (rs) Rank Index Rank 4 7 2 6 1 3 7 5 3.83 3.76 3.92 3.84 4.05 3.85 3.80 3.76 4 7 2 rs = 0.886 5 Z = 0.003 1 thus 3 Rejected 6 Ho 7

Contractor

Overall Mean 3.80 3.72 3.93 3.77 4.09 3.89 3.74 3.74 Rank 4 7 2 5 1 3 6 6

Material Labour Equipment Finance Contractor Client Consultant External Factor

3.76 3.68 3.93 3.70 4.12 3.92 3.68 3.72

59

5.3.1.10 Ranking of Factors that Causes Delays

Based on the results of analysis the factors in each group, as discussed above, the overall ranking of factors that causes delays have been established as shown in Table 5.11.

Table 5.11: Ranking of factors that causes delays No. Factors Consultant Index 4.46 4.48 Contractor Index 4.40 4.36 Overall Mean Rank 4.43 4.42 1 2

1 Insufficient Numbers of Equipment 2 Inaccurate Time Estimate Monthly Payment 3 Difficulties 4 Change Orders 5 Inaccurate Cost Estimate 6 Poor Site Management and Supervision 7 Inadequate Modern Equipment 8 Shortage of Construction Materials 9 Incompetent Project Team 10 Improper Project Planning and Scheduling 11 Contractor's Financial Difficulties 12 Inappropriate Construction Methods 13 Unreliable Subcontractor 14 Labor Productivity

4.43 4.39 4.35

4.29 4.31 4.27

4.36 4.35 4.31

3 4 5

4.30

4.22

4.26

4.33

4.18

4.25

4.20 4.28

4.24 4.16

4.22 4.22

8 8

4.24

4.13

4.19

4.26

4.04

4.15

10

4.22 4.17 4.11

4.07 4.11 4.00

4.14 4.14 4.05

11 11 12

60

No.

Factors

Consultant Index

Contractor Index

Overall Mean Rank

15 Frequent Equipment Breakdown 16 Late Delivery of Materials 17 Shortage of Skill Labor 18 Poor Design & Delays in Design 19 Slow Site Clearance 20 Labor Supply 21 Slow Decision Making by Client 22 Lack of Communication/ Coordination 23 Slow Response and Poor Inspection 24 Imported Construction Material 25 Lack of Experience of Client in Construction 26 Slow Mobilization of Labor 27 Slow Mobilization of Equipment 28 Equipment Allocation Problem 29 Inadequate Fund Allocation 30 Lack of Capable Representatives 31 Inadequate Contractor Experience

4.13 4.09 4.04

3.93 3.96 3.98

4.03 4.02 4.01

13 14 15

3.98 4.07 4.00

4.02 3.91 3.89

4.00 3.99 3.95

16 17 18

3.96

3.87

3.91

19

4.02

3.80

3.91

19

3.93

3.84

3.89

20

3.89

3.82

3.86

21

3.91

3.78

3.85

22

3.85

3.76

3.80

23

3.87

3.73

3.80

23

3.85

3.76

3.80

23

3.85

3.76

3.80

23

3.85

3.76

3.80

23

3.83

3.73

3.78

24

61

No.

Factors

Consultant Index

Contractor Index

Overall Mean Rank

32 Unforeseen Ground Condition Unexpected Geological 33 Condition 34 Inflation/Prices Fluctuation Improper Project 35 Feasibility Study 36 Inadequate Project Management Assistance Conflict/War/Public 37 Enemy 38 Poor Procurement of Construction Material 39 Poor Quality of Construction Material 40 Unreasonable Constraints to Client 41 Weather Condition 42 Improper Equipment 43 High Interest Rate 44 Escalation of Material Prices 45 Incomplete Drawing/Detail Design 46 Client's Interference 47 Inadequate Consultant Experience 48 Inaccurate Site Investigation 49 Shortage of Equipment Parts

3.83 3.80 3.83

3.73 3.73 3.71

3.78 3.77 3.77

24 25 25

3.80

3.71

3.76

26

3.76 3.76

3.76 3.73

3.76 3.75

26 27

3.85

3.60

3.73

28

3.70

3.73

3.71

29

3.70 3.59 3.59 3.57

3.71 3.76 3.73 3.76

3.70 3.67 3.66 3.66

30 31 32 32

3.57

3.71

3.64

33

3.52 3.48

3.76 3.73

3.64 3.60

33 34

3.43

3.73

3.58

35

3.46

3.71

3.58

35

3.30

3.76

3.53

36

62

No.

Factors

Consultant Index 3.35 3.17 3.07 3.09 3.02 3.26 3.30

Contractor Index 3.69 3.73 3.76 3.71 3.69 3.40 3.31

Overall Mean Rank 3.52 3.45 3.41 3.40 3.35 3.33 3.31 37 38 39 40 42 43 44

50 Low Motivation/Morale 51 Problem with Neighbors 52 Unreliable Supplier 53 Absenteeism Client's Financial 54 Difficulties 55 Obsolete Technology 56 Strike 57 Delay Payment to Supplier/Subcontractor

3.09

3.64

3.36

45

5.3.2

Effects of delays

Based on literature review and some interviews with construction practices as the preliminary investigation at the outset of this research, it was possible to identify certain major effects of delays on project delivery. The six effects of delays identified were: time overrun; cost overrun; dispute; arbitration; total abandonment; and litigation as shown in Table 5.12. The questionnaire survey was designed and distributed to targeted respondent in order to obtained information on the perception of contractor and consultant about the effects of delays in construction project.

The questionnaire surveyed on the effects of delays in construction project from the viewpoint of contractor and consultant was analyzed as shown in Table 5.12. This Table shows, the ranking of two groups has the Spearmans Rank correlation coefficient, rho (rs) is 0.9436 and significant value (Z) is 0.004. The null hypothesis, Ho is rejected and alternative hypothesis, H1 is accepted. Therefore,

63

concluded that there is a significant degree of agreement in the ranking of effects of delays factors between respondents of contractor and consultants.

Table 5.12: The result of effect of delays

Effects of delays

Consultant Index Rank

Contractor Index Rank

Spearman's Rank coeff. rho (rs)

Overall Mean Rank

Time overrun Cost Overrun Dispute Arbitration Litigation Total Abandonment

3.67 2.54 2.08 1.04 1.02

1 2 3 5 6

3.51 2.76 1.19 1.03 1.01

1 2 rs = 0.943 4 Z = 0.004 5 Thus 6 Rejected

3.59 2.65 1.64 1.04 1.02

1 2 3 5 6

1.98

1.20

Ho

1.59

5.3.3

Minimizing Construction Delays

A total of thirty five methods of minimizing construction delays were identified based on the literature review. The questionnaire survey was developed and distributed to the targeted respondent. Data from a questionnaire survey was analyzed and ranked based on relative importance index as shown in Table 5.13. The ranking of methods of minimizing of construction delays has the Spearmans Rank correlation coefficient, rho (rs) is 0.919 and significant value (Z) is 0.001, which less than 0.005 (5%). The null hypothesis, Ho is rejected and alternative hypothesis, H1 is accepted. This shows that there is a significant degree of agreement in the ranking between two groups of respondents of contractor and consultants.

64

Table 5.13: The results of methods of minimizing construction delays

No.

Methods

Consultant Index Rank

Contractor Index Rank

Overall Mean Rank

1 2 3 4 5 6

9 10 11 12 13 14 15

Competent Project Manager Ensure adequate and available source of source Multidisciplinary/competent project team Availability of resources Commitment to projects Adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities Adopting new approaches to contracting such as DesignBuild (D/B) and Construction Management (CM) contract Complete and accurate project feasibility study and site investigation Acceleration of site clearance Comprehensive contract documentation Frequent progress meeting Project management assistance Use Up to date technology utilization Use of experienced subcontractors & Suppliers Complete and proper design at the right time

4.41 4.37 4.22 4.35 3.72

1 2 7 3 29

4.29 4.38 4.11 4.27 3.73

2 1 10 3 26

4.35 4.37 4.16 4.31 3.73

2 1 6 3 25

3.72

29

3.71

27

3.71

26

4.20

3.91

18

4.05

11

3.93 3.91 3.78 4.30 4.09 3.76 4.28 3.96

20 21 26 5 13 27 6 19

4.04 4.16 3.71 4.24 4.09 3.73 4.20 3.82

13 8 27 4 11 26 6 22

3.99 4.03 3.75 4.27 4.09 3.75 4.24 3.89

15 12 24 4 10 24 5 18

16 17 18 19 20 21 22 23

Competent personnel of consultant/designer Competent and capable of Client's representative Site Management and Supervision Use of proper and modern construction equipment Proper Project Planning and scheduling Accurate initial cost estimates Use of appropriate construction methods Community involvement

3.89 4.11 4.04 3.98 3.74 4.07 4.15 3.72

22 12 15 18 28 14 10 29

3.87 4.13 3.96 3.98 3.64 4.18 4.07 3.69

20 9 16 15 29 7 12 28

3.88 4.12 4.00 3.98 3.69 4.12 4.11 3.70

19 7 14 16 28 7 8 27

65

24

Proper emphasis on past experience 3.85 24 3.76 25 3.80 21 25 Frequent coordination between the parties 3.87 23 3.80 23 3.83 20 26 Absence of bureaucracy 3.61 30 3.56 31 3.58 29 27 Clear information and communication channels 3.78 26 3.73 26 3.76 23 28 Accurate initial time estimates 4.00 17 3.84 21 3.92 17 29 Proper material procurement 4.02 16 3.93 17 3.98 16 30 Developing human resources in the construction industry through proper training 3.80 25 3.78 24 3.79 22 31 Allocation of sufficient time and money at the design phase 4.13 11 3.89 19 4.01 13 Awarding bids to the 32 right/experience consultant and contractor 4.33 4 4.22 5 4.27 4 Perform a preconstruction 33 planning of project tasks and resources needs 4.17 9 4.02 14 4.10 9 34 Systematic control mechanism 3.78 26 3.73 26 3.76 23 35 Effective strategic planning 3.20 31 3.62 29 3.41 30 The Spearman's Rank correlation coefficient, rho ( rs) = 0.919 and Z = 0.001, thus rejected Ho

5.4

Identify the Major Causes of Delays

During a construction project, delays may result from many circumstances. In this research, based on data analyzed earlier, a total of fifty seven factors to causes of delays were grouped into eight groups of causes of delays in construction project. In order to identify the major delays groups or the major causes of delays, the group that causes delays was ranked based on mean value (the average indexes) between two group of respondent contractors and consultants as shown in Table 5.14. The following is a brief discussion of the groups to causes of delays according to the ranking of major delays groups.

66

Table 5.14: Ranking of major delays groups

No. 1 2 3 4 5 6 7 8

Groups Contractor Equipment Client Material Finance Consultant External Labor

Consultant Mean Rank 4.12 1 3.93 3.92 3.76 3.70 3.68 3.72 3.68 2 3 4 6 7 5 7

Contractor Mean Rank 4.05 1 3.92 3.85 3.83 3.84 3.80 3.76 3.76 2 3 4 5 6 7 7

Overall Mean Rank 4.09 1 3.93 3.89 3.80 3.77 3.74 3.74 3.72 2 3 4 5 6 6 7

As shown in Figure 5.1, contractor related delays having high influence to the causes of delays followed by equipment related delays, client related delays, material related delays, finance related delays, consultant related delays, external related delays, and labor related delays.

Major delays groups

4.20 4.10 4.00 3.90 3.80 3.70 3.60 3.50 3.40 Groups 3.93 3.76 3.68 3.70 4.12 Material 3.92 3.72 Labor Equipment 3.68 Finance Contractor Client Consultant External

Figure 5.1

Mean

The major delays groups that causes delays

67

5.4.1. Contractor Related Delays

As shown in Table 5.14, both consultants and contractors ranked this group of causes very high. From a total of nine factors of contractor-related delays were identified, there are seven factors include the top twenty most important factors that causes of delays. It is worth noticing that consultants and contractors are mainly concerned with technical and management factors such as inaccurate time estimate, inaccurate cost estimate, poor site management and supervision, improper project planning and scheduling, incompetent project team, lack of competent

subcontractors, and inappropriate construction methods.

Referring to Table 5.6, shows factor of inaccurate time estimate were ranked second among the top twenty factors that contribute to causes of delays. Factor of inaccurate cost estimate was ranked fifth, factor of poor site management and supervision ranked sixth, factor of incompetent project team was ranked eighth, factor of improper project planning and scheduling ranked ninth, and factor of inappropriate construction methods and unreliable subcontractor was ranked eleventh.

Accurate estimations require accurate project information in terms of quality of information and information flow, availability and supply of resources, and the expertise of the consultants involved. Time and cost estimates involve and/or are prepared by many parties. Although contractors were perceived to cause these inaccurate estimates in this research since they are the ultimate party who produce estimates, clients and consultants were also responsible. For example, designs are often not clear or detailed not enough to ensure accurate estimation by contractors.

Besides, excessive change orders are issued for many reasons such as unclear project objectives and scope from the clients, problems of constructability of designs, use changes, etc. Excessive change orders can cause significant disruption projects and, consequently, cause change in the planned schedules, increase costs through rework and decrease labor efficiency. Unclear project objectives and scope from the

68

clients cause unexpected design changes while issues of constructability of designs lead to many changes during the construction stage. Poor estimation and change management reflect lack of efficient and effective project management procedures resulting from project parties not being proactive in their roles to ensure that projects run smoothly.

5.4.2

Equipment Related Delays

The groups of equipment related were ranked second by both consultants and contractors as shown in Table 5.14. Referring to Table 5.4, there are three factors of equipment related delays that include the top twenty most important factors to causes of delays. Factor of insufficient numbers of equipment was ranked among the top twenty factors both by consultants and contractors. Factor of inadequate modern equipment was ranked seventh and factor of frequent equipment breakdown ranked thirteenth. Equipment allocation problem, frequent equipment breakdown, and shortage of equipment parts are related to factor of insufficient numbers of equipment. Factor of inadequate modern equipment of this group was ranked seventh among the top ten factors. This is particularly true for the old model equipment related to low production and frequent equipment breakdown.

5.4.3

Client Related Delays

The client related group of delay factors was the most important group to both consultants and contractors as shown in Table 5.14. This is mainly due to changes orders, which are considered very important by both parties. Referring to Table 5.7, there are three of seven factors of client related delays were among the top twenty most important factors of causes of delays. The factor of change orders was ranked fourth, factor of slow decision making by client was ranked; and factor of lack of communication and coordination between parties ranked twentieth. It was

69

interesting to find out that slow decision making by client are of importance to both parties. This is particularly true when in certain cases the client has no priority/urgency to complete the project. Factor of change orders was ranked fourth among the top five factors both by the consultants and contractors. Change orders in construction projects can occur caused by the construction needs and administration needs. In the construction needs, there are four types of causes, namely planning and design, underground conditions, safety considerations, and natural incidents. In the administration needs, another four types can be distinguished, including changes rules/regulations, changes of decision-making authority, special needs for project commissioning and ownership transfer, and neighborhood pleading.

5.4.4

Material Related Delays

Referring to Table 5.14, the group of material related was ranked fourth by both consultants and contractors. As shown in Table 5.2, there are two factors of material related delays which are among the top twenty most important factors to causes of delays. Factor of shortage of construction material was ranked eighth and factor of late of delivery material ranked fourteenth.

Problem of shortage of construction material in construction site related to factors poor site management and supervision, poor procurement programming of materials, and contractors financial difficulties. And problem of shortage of construction material at local market, generally, related to material transportation problems to the local market from the place of material production or material distribution centre, or escalation of material prices and inflation/prices fluctuation.

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5.4.5

Finance Related Delays

This group of causes was ranked low, fifth by contractors and sixth by consultants as shown in Table 5.14. Referring to Table 5.5, factor of monthly payment difficulties was ranked third among the top twenty factors both consultants and contractors. This problem may be due to the existing culture in the construction industry. Like most developing countries, most public work projects, including any construction projects under government authority. However, there is delay in

payment for the completed work due to bureaucracy in governments departments.

Regular monthly payment to contractors for work done may removed constraints which otherwise may have impeded project progress that cause of delay. The other factors of finance related is factor of contractors financial difficulties was ranked ninth by consultants and ranked thirteen by contractors. This factor related to funding shortage, high interest rate, and cash flow of contractor during construction.

5.4.6

Consultant Related Delays

As shown in Table 5.14, neither contractors nor consultants ranked this group of factors high among the major groups of delay causing factors. Referring to Table 5.8, there are only one factor of consultant related delays among the top twenty most important factors that contributed to the causes of delays. Factor of poor design/delay in design was ranked sixteenth. Poor design related to inaccurate site investigation, lack of coordination in design, unclear, incomplete drawing/design details, impractical design, lack of standardization, impractical design, designer did not understand material, and shortage of experience designers.

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5.4.7

External Factor Related Delays

This group of causes was ranked low, seventh by contractor and fifth by consultant as shown in Table 5.14. In Table 5.9, factor of slow site clearance was ranked seventeenth among the top twenty most important factors that contributed to the causes of delays in construction project. This is particularly true for the acceleration of site activities.

Project site clearance usually faces many conflicts internal and interface conflicts, between project teams and communities. This is a major cause of interruption in civil engineering projects. Comprehensive project feasibility study and accurate site investigation have visible and considerable benefits. Therefore, it is recommended that the project site should be well prepared before commencing construction or mobilizing facilities and equipment. The affected people near the project site should be well informed about projects and satisfactory compensation offered for their properties. Environmental and social impact assessments should be fairly carried out when necessary. These will ensure that projects run smoothly and without interruptions during the construction phases.

5.4.8

Labor related delays

Referring to Table 5.14, this group of causes received very low ranking by both consultants and contractors. There are three factors of labor related delays among the top twenty most important factors that contributed to the causes of delays from the opinion of contractor and consultant as shown in Table 5.3.

As expected, this group of causes is more important to contractors than to consultants. Generally, labor problems related to labor supply/slow mobilization of labor, low productivity, lack of skill, low motivation, low morale, absenteeism, and lack of commitment to project.

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5.5.

The Most Important Factors that Causes Delays

Based on the above discussion, a total of fifty seven factors that contributed to the causes of delays in construction project were identified, ranked and analyzed. In order to identify the most important factors that contribute to the causes of delays analysis was conducted to determined top twenty factors of the overall ranking factors that cause delays as shown in Table 5.15.

Referring to Table 5.15, shows factors of insufficient of equipment, inaccurate time estimate, monthly payment difficulties, change orders, and inaccurate cost estimate have been ranked in the top five most important factors that contributed to the causes of delays in construction project. Moreover, factors of poor site management and supervision, inadequate modern equipment, shortage of construction material, incompetent project team, improper project planning and scheduling, and contractors financial difficulties are among the top ten ranked factors by both groups.

From the top ten factors to causes of delays, there are five factors of contractor related delays, two factors of equipment related delays, two factors of finance related delays, one factor of client related delays and one factor of material related delays. This shows that there is 50% factors of contractor related delays.

According to type of delays, from the top ten factors that causes delays from Table 5.15, there are nine factors fall under the type of non-excusable delays, i.e., factors of insufficient numbers of equipment, inaccurate time estimating, inaccurate cost estimating, poor site management and supervision, inadequate modern equipment, shortage of construction materials, incompetent project team, improper project planning and scheduling, and contractors financial difficulties. And there are two factors fall under the type of excusable delays with compensation, i.e., factors of change orders and monthly payment difficulties. Therefore, it can be concluded that there are 80% construction delays caused by the contractor, and 20% caused by the client.

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Table 5.15: Ranking of the top twenty most important factors that causes delays
Factors to causes of delays Overall Mean Rank Insufficient Numbers of Equipment Inaccurate Time Estimate Monthly Payment Difficulties Change Orders Inaccurate Cost Estimate Poor Site Management and Supervision Inadequate Modern Equipment Shortage of Construction Materials Incompetent Project Team Improper Planning and Scheduling Contractor's Financial Difficulties Inappropriate Construction Methods Unreliable Subcontractor Labor Productivity Frequent Equipment Breakdown Late Delivery of Materials Shortage of Skill Labor Poor Design/Delays in Design Slow Site Clearance Labor Supply Slow Decision Making by Client Lack of Communication & Coordination 4.43 4.42 4.36 4.35 4.31 1 2 3 4 5 Consultant Index 4.46 4.48 4.43 4.39 4.35 Rank 2 1 3 4 5 Contractor Index Rank 4.40 4.36 4.29 4.31 4.27

1 2 4 3 5 7 8 6 9 10 13 12 11 15 18 17 16 14 19 20 21 24

4.26 4.25 4.22 4.22 4.19 4.15 4.14 4.14 4.05 4.03 4.02 4.01 4.00 3.99 3.95 3.92

6 7 8 8 9 10 11 11 12 13 14 15 16 17 18 19

4.30 4.33 4.20 4.28 4.24 4.26 4.22 4.17 4.11 4.13 4.09 4.04 3.98 4.07 4.00 3.96

7 6 12 8 10 9 11 13 15 14 16 18 21 17 20 22

4.22 4.18 4.24 4.16 4.13 4.04 4.07 4.11 4.00 3.93 3.96 3.98 4.02 3.91 3.89 3.87

3.91

20

4.02

19

3.80

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5.6

The Common Effects of Delays

In order to identify the effect of delays in construction project, there are six factors that effects delays were identified and ranked based on the mean value which calculate the average indexes of factors between contractor and consultant, as shown in Table 5.16.

Referring to Table 5.16 and Figure 5.2, shows time overrun and cost overrun were the two most common effects of delays in construction project from the view of point of contractor and consultant.

According to the top ten factors that contributed to the causes of delays, as discussed earlier, there are at least five factors having high influence that caused of time overrun in construction project, i.e., change orders, monthly payment difficulties, insufficient numbers of equipment, shortage of construction material, and construction financial difficulties. And at least five factors having high influence that caused cost overrun in construction project, i.e., inaccurate cost estimate, inaccurate time estimate, poor site management, incompetent project team, and improper project planning and scheduling.

Table 5.16: Ranking the common effects of delays No. Effects of Delays Consultant Index Contractor Index Mean Overall Rank

1 2 3 4

Time Overrun Cost Overrun Dispute Total Abandonment

3.67 2.54 2.08

3.51 2.76 1.19

3.59 2.65 1.64

1 2 3

1.98 1.04 1.02

1.20 1.03 1.01

1.59 1.04 1.02

4 5 6

5 6

Arbitration Litigation

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4.00 3.50 3.00 2.50 M ean 2.00 1.50 1.00 0.50 Effect of delays
Figure 5.2 The common effects of delays

Time Overrun Cost Overrun Dispute Total Abandonment Litigation Arbitration

As shown in Figure 5.2, dispute was ranked third. This is particularly true, because three factors that causes delays as discussed above that having high influence on caused of dispute, i.e., factor of poor design/delays in design, incomplete drawing/detail design, and unforeseen ground condition are not the most important factors that contribute to causes of delays. One of the key factors in avoiding disputes and claims is to ensure completion of the design in all respects before the start of construction. Another factor that can reduce claims and disputes are factor of adequate and properly conducted site investigations. If unforeseen ground conditions are revealed at a late stage, they can be disastrous to the overall project aims and objectives. Tang, et al. (2003), resolution of disputes can be used methods arbitration, litigation, and Alternative Dispute Resolution (ADR). An ADR is a voluntary process in which the parties are assisted in solving their disputes by a neutral third party without the need of a judge or arbitrator. ADR techniques are (a) mediation, (b) conciliation, (c) adjudication, and (d) executive tribunal. ADR

procedures, unlike litigation and arbitration, are not binding until a mutually agreed settlement is reached and is put in writing. That is to say that either party can resort to other methods of disputes resolution if the ADR procedure fails.

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5.7.

The Effective Methods of Minimizing Construction Delays

In Table 5.17 shows ranking of the top fifteen effective methods of minimizing construction delays from the viewpoint of contractor and consultant. These methods were ranked based on the mean value which calculating the average indexes of methods identified by the contractor and consultant.

The results of the research revealed that ensure the methods of adequate and available source of finance, competent project manager, availability of resources, frequent progress meeting and awarding bids to the right/experience consultants and contractors have made the top five effective for both consultants and contractors. These methods emphasize that successful projects were implemented in with ease. That is, finance, resources, efforts, and leadership should always be available throughout the projects life. They ensure that construction projects run smoothly.

Finance and others resources in terms ensure adequate and available source of finance until project completion and availability of resources are obvious imperatives to carry out projects. Efforts, in terms of continuing involvements of all stakeholders and comprehensive contract documentation, are needed to ensure the existence of general agreements and collective genius of professionals in concerned organizations as well as proper project control. Leadership is a crucial aspect in project

management. There are three different kinds of competencies required in leadership: leadership competencies such as the ability to lead change; functional competencies such as technical and human resources management skills, and personal skills such as high achievement motivation and persistence. Therefore, a competent project manager possesses not only technical and managerial skills but also good leadership to do the right thing right and search suitable tangible and intangible assets in todays knowledge-based economy.

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Table 5.17: Ranking of the top fifteen effective methods of minimizing delays
Methods Consultant Contractor Index Index Overall Mean Rank

Ensure adequate and available source of finance Competent Project Manager Availability of resources Frequent progress meeting Awarding bids to the right/experience consultant and contractor Use of experienced subcontractors and suppliers Multidisciplinary/competent project team Accurate initial cost estimates Competent and capable of client's representative Use of appropriate construction methods Perform a preconstruction planning of project task and resources needs Project management assistance Adopting new approaches to contracting such as Design-Build and Construction Management (CM) type of contract Acceleration of site clearance Allocation of sufficient time and money at the design phase. Site Management and Supervision Complete and accurate project feasibility study & site investigation 3.93 4.04 3.99 15 4.13 4.04 3.89 3.96 4.01 4.00 13 14 4.20 3.91 3.91 4.16 4.05 4.03 11 12 4.17 4.09 4.02 4.09 4.10 4.09 9 10 4.15 4.07 4.11 8 4.11 4.13 4.12 7 4.22 4.07 4.11 4.18 4.16 4.12 6 7 4.28 4.20 4.24 5 4.33 4.22 4.27 4 4.37 4.41 4.35 4.30 4.38 4.29 4.27 4.24 4.37 4.35 4.31 4.27 1 2 3 4

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5.8

Summary

The major delays groups were identified and ranked, which group of contractor related delays is the top main groups that contribute to the causes of delays. From a total of fifty seven factors to causes of delays, twenty top most important factors have been identified. The top five most important factors that contributed to the causes of delays are factors of insufficient numbers of equipment, inaccurate time estimate, monthly payment difficulties, change orders, and inaccurate cost estimate. The effects of delays have been identified which time overrun and cost overrun were the most common effects of delays in construction projects. To minimize delays in construction project have been identified the top fifteen effective methods of minimizing construction delays from a total of thirty five methods.

CHAPTER 6

CONCLUSIONS AND RECOMMENDATION

6.1.

Introduction

This chapter presents the conclusions on the findings of the research based on the literature review and a questionnaire survey. The main survey of contractors and consultants as discussed in previous chapter relates to the construction projects.

6.2.

Conclusions

There are three objectives of this study which have been achieved. The first objective was to identify the major causes of delays, the effects of delays, and the methods of minimizing delays in construction projects.

6.2.1. The Major Causes of Delays

The first objective of the study has been successfully identified. A total of fifty seven factors that causes delays were identified. Some of these factors were the top ten most important factors that contributed to the causes of delays includes: insufficient numbers of equipment; inaccurate time estimate; monthly payment difficulties; changes orders; inaccurate cost estimate; poor site management and

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supervision; inadequate modern equipment; shortage of construction materials; incompetent project team; improper project planning and scheduling; and contractors financial difficulties. The factors were grouped into eight groups of causes of delays. Group of contractor-related delays was ranked the most significant groups that cause delays, followed by group of equipment-related delay, clientrelated delays, material-related delays, finance-related delays, consultant-related delays, external-related delays, and labor related delays.

6.2.2. The Common Effects of Delays

The second objective of this research was to identify the common effects of delays in construction project. This objective has been successfully achieved. There are six factors that effect delays in construction project which includes: time overrun, cost overrun, dispute, arbitration, total abandonment; and litigation. The results of analysis shown time overrun and cost overrun were the two most common effects of delays in construction project.

6.2.3. The Methods of Minimizing Construction Delays

The third objective of this study was to identify the effective methods of minimizing delays in construction project has been successfully achieved. A total of thirty five methods of minimizing delays were identified. The most effective methods of minimizing delays includes: to ensure adequate and available source of finance until project completion; competent project manager; availability of resources; frequent progress meeting; awarding bids to the right/experience consultant and contractor; use of experienced subcontractors and suppliers; multidisciplinary/competent project team; accurate initial cost estimates; competent and capable of clients representative; use of appropriate construction methods;

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performs a preconstruction planning of project task and resources needs; and project management assistance.

6.3.

Recommendation

From this study, some recommendations are given as follows:

(1)

Construction project delays caused by contractors are due mainly to the low technical and managerial skills of contractors in developing countries. In order to improve contractors managerial skills there is a need for continuous work-training programs for personnel in the industry to update their knowledge and be familiar with project management techniques and processes.

(2)

Delays in construction projects can be reduced through the joint efforts of participants in the construction industry. Clients, designers/consultants, contractors, suppliers, finance sources, educational institutions,

manufacturers, and the government should cooperate to provide the infrastructure necessary for efficient management. A means of achieving this is to formulate and execute a participatory program for the development of the construction industry through a dedicated national agency.

(3)

All parties involved in project agreed that delay occurs mostly during the construction phase. Therefore, in resolving those problems, suggestion to increase construction productivity, followed by enhancing the expertise and skill of human resources, and conducted site meetings more frequently. A strategic view of solving delay problems should be considered as an importance of management aspects, the effects of knowledge and information flow between the organization levels, and importance of top management contribution in solving the problems.

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REFERENCES

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APPENDIX - A

QUESTIONNAIR FORM

QUESTIONNAIRE

CAUSES AND EFFECTS OF DELAYS IN CONSTRUTION PROJETS

This questionnaire consist of four section: Section A : Section B : Section C : Section D : Company Respondent Profile and Project Description Factors That Contribute To Causes Of Delays Factors Effect Of Delays Methods of Minimizing Construction Delays

Objective of the Study The objectives of the study are as follows: 1. To identify the major causes of delays in construction project. 2. To identify the effects of delays in construction project. 3. To identify the methods of minimizing construction delays.

Student Name : Ibnu Abbas Majid

Supervisor

: Assoc. Prof. Dr. Muhd. Zaimi B. Abd. Majid

NOTE : Your answer will be treated confidentially. The findings of the study will be used for academic purposes. Your name is optional in this questionnaire. Thank you very much for your corporation

SECTION A COMPANY RESPONDENT PROFILE AND PROJECT DESCRIPTION Please, thick one box and fill in the blanks if you select others. Organization/Company Name Address : : 1. What is the type of respondent organization or company ? Client Contractor Consultant Others, please specify . 2. State respondent position in the organization/company. Director Project Manager Site Manager Engineer/Designer 3. State the number of year respondent has experience in the construction industry. 0 5 years 6 10 years 11 15 years 16 20 years More than 20 years 4. State the number of year the organization / company have experience in construction. 0 5 years 5 10 years 10 15 years 15 20 years More than 20 years 5. State the number of construction projects have respondent involved. 14 47 7 10 More than 10 6. State type of project that you have experienced. Building School Office and Administration Building Medical Center (Hospital) Hotel and Business Center Building Civil Engineering Project Others, please specify: . 7. State type of contracts. Traditional contracts Design - Build Turnkey Others, please specify:. 8. State, contract price. Below RM.5,000,000.00 RM.5,000,000.00 to 10,000,000.00 RM.10,000,000.00 to 15,000,000.00 RM.15,000,000.00 to 20,000,000.00 More than RM. 20,000,000.00 9. State estimate project duration. Less than 12 month 12 month to 18 month 18 month to 24 month 24 month to 30 month 30 month to 36 month Others, please specify... 10. State actual time spent for the project. Less than 12 month 12 month to 18 month 18 month to 24 month 24 month to 30 month 30 month to 36 month Others, please specify

Name : . Date : ..

Signature :

SECTION B FACTORS THAT CONTRIBUTE TO CAUSES OF DELAYS Objective of the Study: To identify the major causes of delays in construction project. Please, thick and fill in the blanks if you select others. Each scale represents the following rating: (5) = Very high contributing (4) = High contributing ( 3) = Medium contributing (2) = Low contributing (1) = Very low contributing. Question: What did the following related factors below that contribute to causes of delays of construction project? CATEGORY FACTORS 1 2 3 4 5 1. Material-related 1. Shortage of Construction Materials 2. Poor Quality of Construction Materials 3. Poor Procurement of Material 4. Imported Construction Material 5. Escalation of Material Prices 6. Late Delivery of Materials 7. Unreliable Supplier 2. Labor-related 1. Slow Mobilization of Labor 2. Shortage of Skill Labor 3. Labor Productivity 4. Labor Supply 5. Absenteeism 6. Strike 7. Low Motivation/Morale 3. Equipment-related 1. Insufficient Numbers of Equipment 2. Frequent Equipment Breakdown 3. Shortages of Equipment Parts 4. Improper Equipment 5. Slow Mobilization of Equipment 6. Equipment Allocation Problems 7. Inadequate Modern Equipment 4. Financial-related 1. Inadequate Fund Allocation 2. High Interest Rate 3. Contractors Financial Difficulties 4. Clients Financial Difficulties 5. Unreasonable Constraints to Client 6. Delay Payment to Supplier/Subcontractor 7. Monthly Payment Difficulties 5. Contractor-related 1. Inadequate Contractor Experience 2. Inappropriate Construction Methods 3. Inaccurate Time Estimating 4. Inaccurate Cost Estimating 5. Poor Site Management & Supervision 6. Improper Project Planning & Scheduling 7. Incompetent Project Team 8. Unreliable Subcontractor 9. Obsolete Technology

CATEGORY 6. Client-related

7. Consultant-related

8. External Environment

FACTORS 1. Slow Decision Making by Client 2. Lack of Experience of Client in Construction 3. Change Orders 4. Clients Interference 5. Lack of Capable of Client Representative 6. Lack of Communication/Coordination 7. Improper Project Feasibility Study 1. Inadequate Consultant Experience 2. Poor Design & Delays in Design 3. Inadequate Project Management Assistance 4. Slow Response and Poor Inspection 5. Incomplete Drawing/Details Design 6. Inaccurate Site Investigation 1. Unforeseen Ground Condition 2. Unexpected Geological Condition 3. Inflation/Prices Fluctuation 4. Slow Site Clearance 5. Problem with Neighbors 6. Weather Condition 7. Conflict/War/Public Enemy

SECTION C EFFECT OF DELAYS

Objective of the Study: To identify the effects of delays in construction project

Please, thick and fill in the blanks if you select others. Each scale represents the following rating: (5) = Always (2) = Seldom (4) = Mostly (1) = Never. (3) = Sometimes

Questions : What Effect due to delays?

EFFECT 1. Time Overrun

1 2 3 4 5

2. Cost Overrun

3. Dispute

4. Arbitration

5. Litigation

6. Total Abandonment

7. Others, please specify ..

8. Others, please specify ..

9. Others, please specify ..

10. Others, please specify ..

SECTION D METHODS TO MINIMIZING OF CONSTRUCTION DELAYS Objective of the Study: To identify the methods of minimizing construction delays Please, thick and fill in the blanks if you select others. Each scale represents the following rating: (5) = Very high effective (4) = High effective (3) = Medium effective (2) = Low effective (1) = Very low effective. Questions : What did the following methods will minimizing of construction delays? PROPOSED METHODS 1 2 3 4 5 1. Competent Project Manager 2. Ensure adequate and available source of finance until project completion 3. Multidisciplinary/competent project team 4. Availability of resources 5. Commitment to projects 6. Adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities and past performance of contractors. 7. Adopting new approaches to contracting such as Design-Build (D/B) and Construction Management (CM) type of contract. 8. Complete and accurate project feasibility study and site investigation 9. Acceleration of site clearance 10. Comprehensive contract administration 11. Frequent progress meeting 12. Project management assistance 13. Use up to date technology utilization 14. Use of experienced subcontractors and suppliers 15. Complete and proper design at the right time 16. Competent personnel of consultant/designer 17. Competent and capable of clients representative 18. Site management and supervision 19. Use of proper and modern construction equipment 20. Proper project planning and scheduling 21. Accurate initial cost estimates 22. Use of appropriate construction methods 23. Community involvement 24. Proper emphasis on past experience 25. Frequent coordination between the parties 26. Absence of bureaucracy 27. Clear information and communication channels 28. Accurate initial time estimates 29. Proper material procurement 30. Developing human resources in the construction industry 31. Allocation of sufficient time and money at the design phase 32. Awarding bids to the right/experience consultant and contractor 33. Perform a preconstruction planning of project tasks and resources needs 34. Systematic control mechanism 35. Effective strategic planning