Delay in Large Scale Construction Projects due to

Cost overrun and poor planning in Pakistan.

Waqas Anjum
MS-Project management
CIIT/FA15-RPM-018/CVC
Department of Management Sciences
COMSATS Institute of Information Technology Islamabad (Virtual
Campus)

Research supervisor: Dr. Waqas Farooq

Contents

 Brief Introduction
 Objectives of the study
 Problem statement
 Abridged Literature review
 Research Methodology and analysis
 Results
 Findings and conclusion
 Introduction
 The Study is conducted to highlight the effects of construction delays in large scale
construction projects due to cost overrun and poor planning in Pakistan. Delay will result
to a negative impression of the nation's Construction industry. Financial specialists won't
do Construction projects in the country. Furthermore, Delays will ruin the Construction
organizations, which includes contractors, consultants and architects. This will result to
the nation's Construction industry to be less focused.
 Construction can defined as an activity of the physical creation of infrastructure, High rise
buildings and related Facilities. It therefore comprises all civil engineering works and all
types of buildings projects including; housing, development of infrastructure, and repair
of existing structures (Wells, 1984).
 Different investigations by (Cohen and Palmer 2004 & Baloi and Price 2003) have
discovered bases and classifications of Construction hazards that should be overseen as a
component of the project administration. Delays are very frequent in present day
Construction practices (Yates and Epstein, 2006). The study expressed that project delay
begins from the start period of the project to the ending stages of the project.
 Objectives of the study
Following are the objectives of the study:

To analyze the effects of poor planning on project delays on

large scale construction projects in Pakistan.

To analyze the effects of cost over-run on project delays on

large scale construction projects in Pakistan.
Problem Statement

The instant endeavor is to determine the effects of

delays that are clearly outlined, avoiding delays
can be measured as the critical success factors of
the project. Moreover a study on delay will help
stakeholders to be able to pin point exactly where
the delay is form or what produces the delay and
which of the stakeholder should be detained
responsible. With this the problem of disputes,
litigation and arbitration can be avoided.
Literature review
 The project should be a big success if it completes within the schedule budget and
the cost control analysis is done. (Stehben 1989).
 More than 80% of the Construction projects in Pakistan Faced Delays, and only
20% of Construction Project were done inside allocated time, terms and assessed
costs. (Haseeb M. 2011)
 Aibinu and Jagboro, 2002, found out two major ways of avoiding construction
delays to be acceleration of site activities and contingency allowances.
 Odeh M.A & Battaineh H.T (2002) Analyzed that delays are costly and often
result in disputes and claims, impair the feasibility for project owners, and retard
the development of the construction industry.
 Rathi A.S & Khandve P.V (2014) Analyzed that the budget of the development
venture or project is massively important from the feasibility point of view.
 Shanmugapriya S & Subramanian K (2008) reported that Time and Cost overruns
is a severe problem faced by large construction industries in India.
Hypothesis Development

 Hypothesis:
 H1: There is a positive connection between cost viability and
project success.

 H2: There is a positive connection between effective planning and

project success.
 Theoretical Framework
 The study by (Haseeb 2011) recognized a considerable element which stimulus project
results are several significant relationships between personal, specialized and
management elements and project achievement and disappointment. The explanation
behind this emphasis is that awful choices or poor execution will impact the project
final products. The various risks related to Projects delays are cost and planning
connected where deferral will generally be an indication to an overall hike in the cost
and time of the venture.
 In light of literature analysis/reviews, a structure for assessing the Delays in
Construction projects in Pakistan because of cost overrun and poor planning is
constructed. The investigation familiar from the past universal studies, in these
investigations the analyst portrays that the cost control and, effective planning leads to
Project success (Stehben 1989). In this Study we adapt the pervious international
research for Pakistan situation. The theoretical framework of the study shows that there
is a positive connection between two Independent Variables that are cost overrun and
poor planning and one depended variable which is delay is large scale construction
projects.
Methodology and Analysis
Variables (Dependent and Independent)

(Independent variables) (Dependent variables)

Effect of Cost Overrun on

construction Projects Delay in
Construction
Projects
Effect of Poor Planning on
construction Projects
Data Analysis
Frequency Descriptive of Organization
Variable Categories Frequency Percent

Organization Consultant 62 40.3

type
Contractor 42 27.3

Client 45 29.2
Frequency Descriptive of Qualification

Variable Categories Frequency Percent

Education Intermediate 2 1.3

Bachelors 77 50

Master 59 38.3

PhD 15 9.7
Frequency Descriptive of Participants Positions

Variable Categories Frequency Percent

Position Support Staff 23 14.94

Supervisor 26 16.88

Site Engineer 59 38.31

Managers 20 12.99

Senior Engineers 21 13.64

 Reliability Analysis
The term Reliability generally refers to the consistency of a measure, Cronbach's alpha is the most
common measure of internal consistency ("reliability"). It is most commonly used when you have
multiple Likert questions in a survey/questionnaire that form a scale and you wish to determine if the
scale is reliable.
Section Cronbach ’s Alpha Number of Questions

Delays in 0.797 4
Construction
Projects
Delays due to Cost 0.785 5
overrun
Delays due to Poor 0.831 5
Planning
 Correlation
Correlation analysis is a method of statistical evaluation used to study the strength of a relationship between two,
numerically measured, continuous variables (e.g. height and weight). This particular type of analysis is useful when a
researcher wants to establish if there are possible connections between variables.

Delays in Construction Delays due to Cost Overrun Delays due to

Projects Poor Planning

Delays In Pearson Correlation 1 .570** .527**

Construction
Projects Sig. (2-tailed) 0 0
N 154 154 154
Delays due to Cost Pearson Correlation .570** 1 .733**
Overrun
Sig. (2-tailed) 0 0
N 154 154 154
Delays due to Poor Pearson Correlation .527** .733** 1
Planning
Sig. (2-tailed) 0 0
N 154 154 154
 Regression Analysis
Regression analysis is also used to understand which among the independent variables are related to the dependent
variable, and to explore the forms of these relationships. In restricted circumstances, regression analysis can be
used to conclude causal relationships between the independent and dependent variables.
Standardized
Model Coefficients t Sig.
Beta
Standardized
Unstandardized Coefficients Coefficients
t Sig
Model B Std. Error Beta
4.377 .000
1 (Constant) 1.465 .335
Delays due to Cost .000
Overrun .429 .104 .396 4.109
Delays due to Poor .015
Planning .249 .101 .237 2.461

Dependent Variable: Delay in Construction projects

Findings and conclusion

In Hypothesis 1 which states that there is a positive relation

between cost effectiveness and project success, the Beta value of
independent variable Funding is .396 which means cost overrun is
effecting positively on dependent variable Delays in Construction
projects. The t value of funding is 4.109 which is significant. . The
result is supported by Haseeb, Dyain, and Rabbani, (2011). They
concluded that cost overwhelm plays a vital role in deferral of
projects in developing countries.
In Hypothesis 2 which states that there is a positive
connection between effective planning and project sucess, the
Beta value of independent variable is .237 which means
effective planning is effecting positively on dependent
variable which is delay is construction projects. The t value of
effective planning is 2.461 which is significant. The result is
supported by Chan, E. W. (2011). He analyzed that effective
planning will be very curial for the success of Project in
Construction industry.
Conclusion
The outcomes of building Construction Project are constantly negative in this manner
delay should be avoided at all cost. To keep away construction deferrals, it is basic for
project stakeholders to first of all recognize the conceivable factors that can defer and
mark them as critical success factors. Once these factors have been distinguished,
appropriate pre-emptive measures can also be put to counter the negative impacts that may
emerge because of their occurrence. Pakistan is an immature nation lacking at the resource
needed to effectively complete a Construction project inside apportioned time and budget.
The study discussed about the results for various factors and check the reliability,
correlation, and regression of the model and after that check the significance by utilizing
regression with control factors. Demography of the respondents does not assume any part
in the delay of the project with the exception of Education which plays huge part in the
delay procedure.
Thank You