Construction delays causing risks on time and cost - a critical review

Chidambaram Ramanathan, S P Narayanan, Arazi B Idrus
2012 Australasian Journal of Construction Economics and Building  
There is an increase in the number of construction projects experiencing extensive delays leading to exceeding the initial time and cost budget. This paper reviews 41 studies around the world which has surveyed the delay factors and classified them into Groups. The main purpose of this paper is to review research which has categorized the causes responsible for time delays and cost overruns in projects. The intention was to see whether these causes are valid for projects being executed in Sabah
more » ... g executed in Sabah East Malaysia allowing a mitigation plan to be prepared. The collected list has 113 causes for delays which were categorized into 18 different groups. Most of the research has analysed the responses from Questionnaire surveys. The collected data are used to rank the problem factors. The data are further used to investigate and analyse the reported "Importance Index, Frequency Index, Severity Index, Relative Importance Index, Relative Importance Weight, Weighted Average, Mean, Standard Deviation and Variance". The collective comparison has revealed that the ranking given by all the researchers is not the same. Further each and every study has different rank ratings from different group. This review paper attempts to provide an updated compilation of the earlier studies on ranking of the delay causers, which are never similar and constant for universal projects. From the critical review, it is concluded that this type of research requires a different method or approach to generate meaningful answers and that there is a strong case against opinion surveys. concerned with quality, time and cost and yet the majority of construction projects are procured on the basis of only two of these parameters, namely time and cost (Bennet and Grice, 1990) . The literature emphasises time as an indicator for project success. The construction process can be divided into three important phases, i.e. project conception, project design and project construction. Usually, the vast majority of project delays occur during the 'construction' phase, where many unforeseen factors are always involved (Chan and Kumaraswamy, 1997). In construction, delay could be defined as the time overrun either beyond completion date specified in a contract, or beyond the date that the parties agreed upon for the delivery of a project. It is a project slipping over its planned schedule and this is a common problem in construction projects. To the owner, delay means loss of revenue through non availability of production facilities and rentable space or a dependence on present facilities. In some cases, delay causes higher overhead costs to the contractor because of longer work period, higher material costs through inflation, and due to labour cost increases. Completing projects on time is an indicator of efficiency, but the construction process is subject to many variables and unpredictable factors, which result from many sources. The sources are the performance of parties, resources availability, environmental conditions, involvement of other parties, and contractual relations, and the completion of a project within the specified time is rare (Assaf, 2006) . Cost and schedule overruns occur due to wide range of factors. If project costs or schedules exceed their planned targets, client satisfaction would be compromised. The funding profile no longer matches the budget requirement and further slippage in the schedule could result (Kaliba et al., 2009 ). According to Ahmed et al. (2002) , delays on construction projects are a universal phenomenon and road construction projects are no exception. Delays are usually accompanied by cost overruns. These have a debilitating effect on contractors and consultants in terms of growth in adversarial relationships, mistrust, litigation, arbitration, cash-flow problems, and a general feeling of trepidation towards other stakeholders (Ahmed et al., 2002) . This problem is not unique to developed countries and is being experienced in most of the developing economies. Category No. Category No. of causes / factors / problems Type of Effect Studied References
doi:10.5130/ajceb.v12i1.2330 fatcat:ew7kutqrzjcjlmyvhnku53wxni