Analysis of Causes, Effects, and Mitigation of Construction Delays

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This report delves into the critical issue of delays in construction projects, examining their causes, effects, and potential mitigation strategies. The introduction establishes the significance of the construction industry in economic development and highlights the detrimental impacts of project delays, including financial losses and hindered progress. The report identifies various factors contributing to delays, such as multiple-party involvement, technological complexities, financial constraints, and external influences. The research objectives focus on identifying key causes, analyzing the effects of delays, and recommending methods for minimizing them. The literature review provides a theoretical framework, exploring the concept of delays, the distinction between excusable and compensable delays, and the impact of market dynamics. The methodology section outlines the research design, data collection tools, and analysis techniques employed to investigate the research questions. The report aims to offer insights into the complexities of construction projects, providing valuable information for industry professionals and students seeking to understand and address the challenges of project delays. The study intends to equip the construction industry with the knowledge required to minimize delays and enhance the construction process.
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CAUSES, EFFECTS, AND MINIMISATION OF DELAYS IN
CONSTRUCTION PROJECTS
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Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................3
1. Research Background.............................................................................................................3
2. Problem Statement.................................................................................................................4
3. Research Questions, Research Objectives, and Scope of the research..................................6
CHAPTER 2 – LITERATURE REVIEW.................................................................................6
1. Theoretical Framework..........................................................................................................6
2. Conceptual framework.........................................................................................................11
CHAPTER 3- METHODOLOGY...........................................................................................15
3. Research Design...................................................................................................................15
4. Data collection tools:............................................................................................................18
5. Data Analysis......................................................................................................................19
Bibliography.............................................................................................................................21
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CHAPTER 1: INTRODUCTION
1. Research Background
In this modern era, there are numerous types of business organisation, institutions, and
industries, which lead to the growth of the economy of a country. In the perspective of
González et al. (2013), the industry linked with construction is one such important industry,
which works towards the developing the economy of a country. In the view of Sears et al.
(2015), construction is a very important instrument or tool utilised by any country for the
purpose of development of both the rural areas, as well as, the urban areas.
In the perspective of González et al. (2013), construction is a very necessary sector that can
lead a country on the path of success and glory. However, in this modern and competitive era,
there arise a huge number of competitions in the sector of construction, as there are huge
numbers of construction industries competing with each other. Moreover, it is very necessary
to note that the competition is not the only problem faced by the constructions industries.
There exist even other problems.
In this chapter of the proposal, the researcher will analyse the importance of the construction
industries in building up the economy of a country. Along with it, the researcher will also
discuss the demerits caused due to the delays in the construction projects. Moreover, the very
important topic of which the researcher will deal with this particular proposal is to derive the
causes that linger behind the delay in the functioning of the construction project, as well as,
the effect of this delay in the growth of the construction industry. Moreover, the researcher
will also describe various ways to minimize the delay in the field of the construction project.
This chapter includes the problem statement on which the researcher will conduct further
work. Furthermore, this chapter holds important research objectives, as well as, research
questions that will be considered by the researcher in the work of research.
In the opinion of Owolabi (2014), the new and the advanced form of technologies are
incorporated in the works of construction, this makes the process easy. However, the
inclusion of modern and advanced technology in the functioning of the construction industry
makes the process more sophisticated, as well as, complicated. In the opinion of Assaf &
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Hejji (2016), the complication faced due to the involvement of the modern technology causes
in the delay of the activities performed by the construction industries.
In the perspective of Love & Irani (2014), construction is a very important instrument to
measure the level of development of a country. Countries with enormous and picturesque
construction are considered the most developed and economically prosperous country.
However, delay in the functioning of the construction projects turns out to be a huge loss to
the finance of the construction industry, as well as, it turns out to be a loss for the economy of
a country. There are many reasons for the cause of this delay some of them are multiple-
participation, where numerous construction industries are competing with each other, as well
as, use of complex technologies. Furthermore, the other problem faced in the sector of
construction, which leads to delay is the financial issues and even the lack of proper
instruments, which are required in the field of construction.
2. Problem Statement
In the opinion of Sambasivan & Soon (2016), construction is a very necessary and important
sector, which is known for building the strong economy of a country. The economy of a
country is dependent to some extent on the industries of construction. One major problem
faced by the construction industries is the delay in the construction projects. These delays
arise as a hurdle on the path of growth of not only the construction industry but also of the
country. In this particular proposal, the researcher will deal with the various problems that
arise in the path of construction projects leading to the delay in the construction project. The
delay in the construction project actually refers to the over run of the time, which was
scheduled for the accomplishment of any construction activity.
This delay caused in the project or the functioning of construction leads to many adverse
effects, affecting the economy of a company, resisting the development of a country etc. The
problem projected in this particular research is intermingled with the delay in the construction
project and the effect, which this delay reflects on the country, as well as, the company itself.
A Huge amount of changes could occur due to the delay in the functioning of construction,
such as the project will take longer time to be completed, there will be loss of productivity,
the cost of the project may increase, as well as, the project may even be terminated.
In the opinion of Owolabi (2014), the delay in the construction project is a major issue in this
modern era. With the passage of time, the world has turned extremely competitive. The
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various industries in this modern era tend to utilise the modern and the far more advance
technologies in order to achieve competitive advantage over the other competitors in the field
of construction business. The extreme competition leading to multiple- participation is an
important factor for the increase in delay. Moreover, other important causes tend to resist the
functioning of the construction industries and thus force them to delay the project based on
construction. Some of the causes of the construction delay can be categorised into various
groups, such as the Project group, the Labourer group, Equipment and material group,
External group, Design group, Contractor group, Construction group, Owner group etc. The
functioning of all these groups is necessary for the fulfilment of the construction project; if
these groups do not function properly, they may lead to the delay of the project of
construction.
The construction industries face many problems during the functioning of their construction
activities, which resists the process of construction delaying the construction activity. For
example, in many cases, the clients cause the delay. There are many clients of the
construction industries those who deliver the designs and other necessary instruction for the
cause of construction at a much delayed period, which subsequently causes the delay of the
construction project. Many other reasons involve the poor skills of the employees, as well as,
the lack of proper planning by the construction industries.
Many problems resist the speed of the construction activities. Those reasons involve natural
disaster. The natural disasters are completely unpredictable; they cause huge loss to the
construction industry. Similarly, other major causes of delay that will be discussed in this
proposal by the researcher are the political situation of a country. The political situation is a
major concern for the construction industry, as the activities of construction will not be
performed properly if the political environment of a country is violent. Such violent political
environment resists the construction activities leading to unpredictable delay in the activities
of construction. Other cause of delay includes the shortage of instruments or the equipment,
which are to be used for the process of construction.
Though technology appears as a boon to most of the industries, by in some cases the
advanced technology also turns into a hurdle or a barrier causing the delay. The complexities
linked with modern technology are the cause of delay, as well as, if the employees of
construction industry are unable to utilise the equipment properly they will certainly cause
the delay of the activities of construction.
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3. Research Questions, Research Objectives, and Scope of the research
Research Objectives
The research objectives of this proposal are as follows:
1. To identify the most important causes for the delay in the construction project
2. To analyse the various effects of delay in the construction projects
3. To recommend various means of minimising the delay in the sector of construction project
Research Questions
The research questions are as follows:
1. What are the most important causes for the delay in the construction project?
2. What are the various effects of delay in the construction projects?
3. What are the recommendations on minimising the delay in the sector of a construction
project?
Scope of Study
This particular study will help the construction industry to visualise the causes, which leads
to the delay in the construction activities. Moreover, by visualising the main reasons or
causes behind the delay, the industry will be able to rectify the problems in order to improve
the process of construction, by minimising the delay in the functioning of the construction
projects. Moreover, this particular proposal will be beneficial in driving necessary measures,
which will help in resisting the delay and increasing the speed of construction activities,
leading to building a strong economy of the construction industry, as well as, the respective
country.
CHAPTER 2 – LITERATURE REVIEW
1. Theoretical Framework
Delays in Construction
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The delays in the construction imply to the failure on the part of the construction workers to
complete the construction work in the specified time. The delay in the construction has been a
recurring phenomenon in mostly the developing countries owing to the complexities in the
political and economical scenario as well as the changing and the complex demands of the
labour. However Rao & Camron (2014), argued in his article Causes of delay in
Construction Projects, that the delay in the construction work has become a global
phenomenon owing to the wide spread demands of the skilled and efficient workers as well
as the changing preferences of the customers. The global market has also faced delay in the
completion of the construction owing to the change in the price of the raw materials as well
as the equipments used in the construction process. The change in the price of the raw
materials also change the overall cost of the project, thus halting it in mid construction. Here
it can also be mentioned that there are certain factors that are not in the control of the
construction company as well as the construction. According to Arantes, Silva & Ferreira
(2015), in his article Delays in construction projects-causes and impacts. In Industrial
Engineering and Systems Management (IESM), says that the factor that cannot be
controlled by using any financial or technological assistance by the authorities is known as
the Excusable non-compensable. These factors do not provide the construction workers any
additional time while organising the construction work. The non – compensable factors are
not the responsibility of the construction company thus the company refuses to take any
responsibility of the factors and the effects of the factors will have on the overall construction
work. The factors in many cases have been realised affects the flow and the interest of the
workers engaged in the construction. The definition of the factors mentioned in the article
enhances the vagueness in the process and the lack of initiatives on the part of the workers.
On the other hand Assaf & Al-Hejji (2006), in his article Causes of delay in large
construction projects. International journal of project management, opined that there are
also some Excusable compensable factors that are includes the factors that falls under the
complete responsibility of the construction worker as well as the construction workers
involved in the process. Onset of strike, discontent or chaos in the construction process falls
within the responsibility of the construction company. Here it can also be mentioned that
compensable factors also allows the construction company to gain additional time and
assistance from the customers. The compensable factors further includes a wide range of
factors like the inability on the part of the customers to finalise the design and provide
acceptance on the raw materials that are to be used in the process. The factors also include the
situations where the untimely request has been made by the customers to change the already
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selected and finalised design. The cases mentioned above results in the compensation from
the organisations to carry out the additional specifications mentioned. The customers tend to
compensate the time lost by the construction company.
Causes of Delays in Construction
The delay in the construction work can include a number of factors as the cause. The causes
that led to the delay in the construction work can range from the lack in the effective defining
of the scope of the construction, to impractical demands on the part of the clients as well as
the lack funds for the construction work. The factor that causes the delay in the construction
process tends to change according to the demands and the role of the managers and the
workers of the organisation. Pai & Bharath (2013) in his article Analysis of critical causes of
delays in Indian infrastructure projects. International Journal of Innovative Research
and Development defined that the inability on the part of organisation to clearly point out the
scope and the requirement of the construction company leads to delay and improper
construction work. The exact definition of the scope of the construction program in many
cases is not enough as the skills and the knowledge of the construction workers leads to
different interpretation of the scope and designing of different organisational process. Here it
can also be mentioned that the execution time as well as cost of the construction process are
directly related to the proper identification of the scope of the construction process. The mere
definition of the scope is also not the only criteria that determine the effectiveness of the
scope. Evaluation of the scope from an engineering point of view is also important to analyse
the feasibility of the scope of the construction process. Odeh, A. M., & Battaineh, H. T.
(2002) however, in his article Causes of construction delay: traditional
contracts. International journal of project management, describes the lack of resources and
skills of the workers as another important factor that causes delay in the construction. The
more effectively the construction process is able to use the latest skills and the technologies
the higher are the chances of timely completion of the projects. Despite of the development of
advanced technologies the lack on the part of the workers to use the most innovated and time
efficient technologies that are not only effective in reducing the time needed to complete the
project but reduces the cost of the construction work. As an explanation to the factor it can be
stated that any organisation employees the technology or the man power in the project after
final approval of the project is given. The last minute approval of the project reduces the
scope of the contractor in utilising the latest technology available. The cause of delay in the
construction work may further result in the lack of productivity among the workers and
reduces the motivation with which they were first involved in the project. Keane & Caletka
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(2015) on the other hand in his book Delay analysis in construction contracts, observed that
the final decision made any the client to large extent determines the success of the
construction project. The slow and ineffective decisions made by the clients reduce the
effectiveness of the process selected by the construction workers. The lack of timely
decisions reduces the workflow of the organisational process. Apart from the main client of
the project the stakeholders also play an important part in the smooth running of the
construction process. The increased political pressure and interference from the external
factors restricts the clients from making any constructive decisions. Here it can also be
mentioned that lack on political stability and effective use of the economical resources leads
to unprofessional attitude of the workers and lack initiatives to complete the construction
process on time.
Effects of Delays in Construction
The delay in the construction process has the most important result as increased budget of the
construction process. The delay in the completion of the project demands that the workers are
paid for higher number of days as well as the technologies is to be used for more number of
days. This can lead to a huge overturn of the budget that is fixed by the client. Kikwasi
(2013), in his article Causes and effects of delays and disruptions in construction projects
in Tanzania stated that in many case it has been realised that to reduce the overall cost of the
construction process the clients opt to use reduced quality of materials and the technologies.
This in turn have a major impact on the quality of the overall project. The lack on the part of
the skills and the knowledge of the workers reduces the efficiency and the final output. The
construction work as designed to facilitate a number of other customers has to take in to
account the safety and the legal issues involved. The lack on the part of the construction
workers may result in legal litigations and penalties. Here it can also be mentioned that
ongoing legal cases and lack of ability of the organisation to maintain the safety of the clients
reduces hampers the public relations of the organisation. On the other hand Marzouk & El-
Rasas (2014), in his article analyzing delay causes in Egyptian construction projects
mentioned that the most important factor that is related to the delay in the construction
process is the time barrier that the construction company has to face. The inability of the
organisation to complete the construction project within the specified time results in the loss
of interest of the client from the project as well as the workers associated with the project.
Furthermore, it can also be mentioned that the construction company and the failure on the
part of the organisation to meet the time requirements results in the inability to retain the
most effective employees and technologies select the resources and the workers. The
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organisation has to bear additional cost pressure to retain the professionals within the project.
Beaty, Glover & Stockton (2016), however opined in his article Assessing the Costs
Attributed to Project Delay During Project Pre-Construction Stages that the delay in the
completion of the project leads to a chaos and confusion not only among the clients but the
workers as well. The workers tend to loss the interest from the project and leads to a reduced
productivity in the process. Moreover, the company has to face huge financial losses owing to
the additional amount that they have to spend to carry on the process. Many a times it has
been realised that the additional cost that the company has to face leads to recurring losses to
the organisation. It can be also mentioned here that increased losses on the part of the
company may lead to the abandonment of the project before the proper completion of the
same. The timely resolution of the issues that leads to the delay of the project can save the
project. A number of instances have shown that the abandonment of the construction process
is the direct result of the failure on the part of the company to maintain the time specified for
the research.
Gap in the literature
The gap in the literature can be defined as the areas that are not addressed in the previous
research done by the scholars on the topic. The gap identified from the literature review can
be described as the change in the responsibilities of the managers within the construction
company. Apart from describing the scope of the project the managers has to take an
initiative to ensure that there is proper implantation of polices and the designs selected by the
organisation. The gap of the research can also be realised by lack of study on the role of the
managers in organising the skills and the knowledge of the workers.
Furthermore the gap of the research can also be pointed out as the change in the skills and the
knowledge of the workers. The change in the globalised world market and the increasing
demands of more advanced technology has led to a scarcity in the available resources. The
lack of resources is one of the major issues that the research has to meet.
Another gap that the research has highlighted is the change in the preferences of the
customers. The globalised world with higher economic capability results in higher
interference from the client. Research has to be conducted to device the ways by which the
demands of the clients and the changes can be addressed. The globalised world has also
provided huge number of options to the clients. Thus research has to cater the needs to
highlight the most effective technologies and process to meet changing demands of the
customers.
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2. Conceptual framework
TQM- It signifies the Total Quality Management System, where the entire process needs to
maintain a high quality. The TQM process considers different factors related to the project. It
needs to pinpoint on a particular sector as per the requisition of the work. It could focus on
the customers related to the project. On the other hand, it could be regulated based on the
engagement of the employees in the project work. According to Calvo-Mora et al. (2014), the
article ‘Mediation effect of TQM technical factors in excellence management systems’ shows
that some TQM systems give focus on the process of the project. The total process considers
the input, processing, and output of the system. On the other hand, as depicted by Hawrysz,
(2014), the TQM system focuses on the system integrity. Through this approach, the integrity
and internal connection of the total process could be enhanced. As stated in the article ‘The
guidelines of improvement: relations among organizational culture, TQM, and performance’
by Valmohammadi & Roshanzamir (2015), Total Quality Management enhances the internal
culture and productivity of the business process. It could bring stability in the job process and
in some cases; the stability of the work gets more priority than the flexibility of the system.
On the other hand, this process considers proper strategy and a systematic approach towards
the entire system. The continuous improvement is another factor, which is considered in this
system. As stated in the article ‘The existing barriers in Implementing Total quality
Management’ by Cătălin, Bogdan & Dimitrie (2014), it improves the communication level of
the total business process and it facilitates the decision making process in a proper way. As
depicted in the article ‘TQM tools and techniques in promoting team working culture in the
manufacturing organizations’ by Ramesh & Ravi, (2013), total quality management system
needs to consider several methodologies and the workforce of the company need to be active
in nature. It considers an expertise viewpoint, where minimum effort could bring maximum
productivity. On the other hand, in the software platform, the Constructive Cost Model
(COCOMO) is helpful for ensuring the quality of the software and the total quality
management. It is an essential model for ensuring the quality of the project. As stated in the
article ‘Enhancement in COCOMO Model Using Function Point Analysis to Increase Effort
Estimation’ by Garg et al. (2014), it shows the effectiveness of the COCOMO model in the
software development project. The estimation process confirms the total calculation of the
costs, which is associated with the performance related activities of the project. The
coordinator of the constructional project needs to maintain the proper balance among the
processes to ensure the productivity of the project.
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JIT- It represents the Just in Time approach for enhancing the delivery services of the
project. This process represents proper delivery of the item within stipulated period. It
enhances the production and regulation of the project work. As mentioned in the article ‘Just-
In-Time code Reuse: On the Effectiveness of Fine-Grained Address Space layout
randomization’ by Snow et al. (2013), this approach ensures the goods delivery process on
proper time and it minimizes the inventory costs related to the project work. This approach
also protects the entire project work from the runtime attacks. The runtime attacks should be
mitigated in the project work; otherwise, it could bring various problems in its regulation
process. In any constructional work, the main concern of the project manager is to arrange the
resources properly and execute the entire process on right time. In addition, this process
ensures the minimum investment plan, which could bring maximum productivity within a
calculated period. On the other hand, as per the viewpoint of Zimbardo & Boyd (2015), the
article ‘Putting Time in Perspective: A Valid, Reliable Individual- Differences Metric’
represents the main disadvantage of this approach. Gradually, the constructional project’s
success depends on the timely supply of the raw material. Otherwise, the project could not
run in a proper way. The production department of the project will suffer various problems
for pursuing the project activities. The on time perspective is important in this regard and it
ensures the productivity enhancement of the project. As depicted by Melnyk, Narasimhan &
DeCampos (2014), in the article ‘Supply chain design: issues, challenges, frameworks and
solutions’ the difficulty related to the Just in Time Approach has been discussed. For
ensuring the delivery of the goods on time, the project work must follow effective supply
chain management system. All the transportation and export and import costs need to be
considered in this regard. The logistics department of the business is responsible for planning
an effective supply chain management system for maintaining the workflow and the service
in a proper way. As stated in the article ‘The Advantages of Using Project management tools
in Industries’ by Pathak (2015), the Just in Time approach is considered as an effective
project management tool. In a constructional project, it is needed for defining the project
activities properly. On the other hand, JIT is essential for providing effective customer
support. The query, as well as the problems of the customers, should be solved timely. In this
way, the effective service delivery enhances the brand image of the company and it could
enhance the reliability of the customers. The just in time approach is responsible for
minimizing the delay in the construction work. Effective service maintenance is required in
this regard. Along with that, the project development plan should be structured in a proper
way. The supply chain management system considers the Just in Time approach for
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