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Study on the Quantification of Delay Factors in Construction Industry

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)

Study on the Quantification of Delay Factors in Construction

Industry
K. L. Ravisankar1., Dr. S. AnandaKumar2 M.E., Ph.D., V. Krishnamoorthy3 M.com., M.B.A., M.Phil.
1
Student of Final Year- M.E (CE&M), 2Professor, Department of Civil Engineering, Kongu Engineering College, Perundurai,
Tamil Nadu.
3
Assistant Professor, Department of management studies, Kongu Engineering College, Perundurai, Tamil Nadu.
Abstract-The Construction industry of India is an In the United Kingdom (U.K), a 2001 report by the
important indicator of the development, as it creates National Audit Office, entitled “Modernizing
investment opportunities across various related sectors. The Construction”, revealed that 70% of the project undertaken
construction industry has contributed an estimated 670,778 by Government department and agencies were delivered
crores to the national gross domestic product (GDP) in 2011-
late, and a recent research by Building Cost Information
12 (a share of around 8%). Delay in construction projects is
considered one of the most common problems causing a Service (BCIS) found that nearly 40% of all studied project
multitude of negative effects on the construction projects. had overrun the contract period. In India, a study conducted
Construction delays can be minimized only when their cause by the infrastructure and Project Monitoring Division of the
are identified. The objective of this study was to identify the Ministry of Statistics and Programmed Implementation in
major causes of construction delays. A literature review was 2004 reported that out of 646 central sector projects costing
conducted to compile a list of delay causes in construction about 2500Cr, approximately 40% are behind schedule,
industry. with delay ranging from 1-252 months. In the United Arab
The data for this study will be gathering through a detailed Emirates (UAE), where construction contributes 14% to the
questionnaire survey. The questionnaire consists of total
gross domestic product (GDP).
factors of seventeen group were contributed to the causes of
construction delay based on literature review. In that Delay could be defined as the time over run either
seventeen groups have been consist of total 50 factors for beyond completion date specified in a contract or beyond
delay. The questionnaire form is forwarded to various the date that the parties agree upon for delivery of a project.
construction industries through email and in personal. Based It is a project slipping over its planned schedule and is
on the questionnaire survey the overall results indicated that considered as common problem in construction projects.
the most important causes are: (1)Shortage of unskilled & Delay in construction project is considered one of the
skilled labor; (2)Design changes by owner or his agent during most common problems causing a multitude a negative
construction; (3)Fluctuation of prices; (4)High waiting time effect on the project and its participating parties. Therefore,
for availability of work teams; (5)Rework due to errors; these it is essential to identify the actual causes of delay in order
are all the top five delay factors which affect construction
to minimize and avoid the delays and their corresponding
project.
expenses.
Keywords - Construction delay, Delay causes, Mean score Delays in construction can cause a number of changes in
value, Quantification, Questionnaire survey, Ranking. a project such as late completion, lost productivity,
acceleration, increased costs, and contract termination. The
I. INTRODUCTION party experiencing damages and the parties responsible for
them in order to recover time and cost.
Delays are one of the biggest problems in construction
firm’s face. Delay can lead to many negative effects such
II. PROBLEM STATEMENT
as lawsuits between owners and contractors, increased
costs, loss of productivity and revenue, and contract Many construction projects have faced various problems
termination. According to the World Bank (2007), for and delay of time is one of the major problems. The delay
many projects completed worldwide between 1999 - 2005, in dispute settlement has manifold effects such as it will
the overrun varied between 50% - 80%. give detrimental to the relationship between owner and
The construction companies in many countries around contractor. Moreover, it will also contribute to the cost and
the world experience significant delay. In the past few time overruns. The most serious problem is it sends bad
years, the number of claims submitted to the American signals to foreign investors thereby slowing down the
Arbitration Association (AAA) reached almost 25% of the national progress.
1.7 million claims submitted over the past 74 years.
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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
It is generally said that the contract language is In the process of determining the effect of a delay on the
considered difficult to comprehend and they are therefore a project, the analyst must determine whether the delay is
major source of disputes. critical or noncritical. The analyst must also assess if delay
are concurrent. All delays that are identified in the analysis
III. AIM AND OBJECTIVES OF THE STUDY will be either excusable or non-excusable. Delay can be
In the current world, construction projects are becoming further categorized into compensable or non-compensable
bigger with a lot of complications. Though we have a lot of delays.
method to make sure that we finish our project on schedule A. Critical Versus Non-Critical Delays
so that we improve our profit margins, still delay is Delays that affect the project completion, or in some
inevitable, which ultimately results the reduction in profit cases a milestone date, are considered as critical delays,
margins. and delays that do not affect the project completion, or a
So far lots of studies have been carried out by various milestone date, are noncritical delays. If these activities are
researches to identifying the factors that affect the schedule delayed, the project completion date or a milestone date
and profitability of the project. Still there are a lot of will be delayed. The determining which activities truly
projects which run behind schedule and suffer a heavy loss. control the project completion date depends on the
Lot of study has been carried out by various researches to following:
find out the factors that affect the schedule of the project,
but the root cause of all these factors are the contract  The project itself
clauses which are the binding between the Employer and  The contractor’s plan and schedule (particularly the
Contractor. This factor made us to identify the clauses that critical path)
affect the schedule performance and project profitability of  The requirement of the contract for sequence and
the construction project. phasing
 The physical constraint of the project, i.e. how to build
IV. NEED FOR STUDY the job from a practical perspective
Construction is a dynamic, competitive, ever changing B. Excusable versus Non-Excusable Delays
and challenging industry. This research was aimed at All delays are either excusable or non-excusable. An
identifying the major causes of delay. To achieve the aims, excusable delay is a delay that is due to an unforeseeable
objectives have been identified as following: event beyond the contractor’s or the subcontractor’s
 To identify the main reasons of construction delay. control. Normally, based on common general provisions in
 To identify the effect of construction delay. public agency specifications, delays resulting from the
 To identify the methods of minimizing following events would be considered excusable:
Construction delay.  General labor strikes
 Fires
V. SCOPE OF WORK  Floods
The scope of the research is mainly focus on literature  Acts of God
review and a questionnaire survey. The questionnaire  Owner-directed changes
survey would be designed based on the causes of  Errors and omissions in the plans and specifications
construction delays, effects of construction delays and the  Differing site conditions or concealed conditions
methods of rectification of the construction delays.  Unusually severe weather
 Intervention by outside agencies
VI. TYPES OF DELAY
 Lack of action by government bodies, such as
There are four basic ways to categorize type of delays: building inspection
A. Critical or noncritical Non-excusable delays are events that are within the
B. Excusable or non-excusable contractor’s control or that are foreseeable. These are some
C. Compensable or non-compensable examples or non-excusable delays:
D. Concurrent or non-concurrent

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
 Late performance of sub-contractors Lastly, if two excusable with compensation delays occur
 Untimely performance by suppliers concurrently, the contractor is entitled to both time
 Faulty workmanship by the contractor or sub- extension and damages.
contractors In addition, although the guidelines are useful for the
 A project-specific labor strike caused by either the purpose of carrying out the delay analysis, it is in the best
contractor’s unwillingness to meet with labor interest of all parties involved in a construction project to
representative or by unfair labor practices agree, at the beginning, the definitions of such delays and
accommodate them throughout the contract language.
C. Compensable Delays versus Non-Compensable
Delays VII. GOVERNMENTAL REPORT ON PROJECT DELAY
A compensable delay is a delay where the contractor is Annual report of 2010-2011, Government of India,
entitled to a time extension and to additional compensation. Ministry of statistics and programme implement, sardar
Relating back to the excusable and non-excusable delays, patel bhavan, New Delhi.
only excusable delays can be compensable. Non-
compensable delays mean that although an excusable delay TABLE 7.1
Extent of the time overrun in projects with respect to original
may have occurred, the contractor is not entitled to any Schedule
added compensation resulting from the excusable delay.
Thus, the question of whether a delay is compensable must
Sector

Anticipate
No.
of project

(months)
Original

overrun
project

Range
Sl .No

Time
be answered.

cost

cost
Whether or not a delay is compensable depends
primarily on the terms of the contract. In the most cases, a
contract specifically notes the kinds of delays that are non- Atomic
compensable, for which the contractor does not receive any 1 4 21982.9 24167.9 3 12-36
Energy
additional money but may be allowed a time extension.
D. Concurrent Delays Civil
2 8 4512.40 4812.40 2 3-5
Aviation
The concept of concurrent delay has become a very
common presentation as part of some analysis of 3 Coal 44 25210.2 28547.29 19 3-64
construction delays. The concurrency argument is not just
from the standpoint of determining the project’s critical 4 Fertilizers 6 5317.41 5317.41 0 -
delays but from the standpoint of assigning responsibility
5 Mines 1 4091.51 4401.76 1 6-36
for damages associated with delays to the critical path.
Owners will often cite concurrent delays by the contractor 6 Steel 19 437803 65379.56 11 27-37
as a reason for issuing a time extension without additional
compensation. Contractors will often cite concurrent delays 7 Petroleum 70 142330 155206 31 1-74
by the owner as a reason why liquidated damages should
8 Power 83 179759 185289.3 41 1-83
not be assessed for its delays. Unfortunately, few contract
specifications include a definition of concurrent delay and 9 Railways 147 68578.5 126174.4 26 3-225
how concurrent delays affect a contractor’s entitlement to
additional compensation for time extension or Shipping &
10 22 16082.2 16926.26 11 3-78
responsibility for liquidated damages. ports
In analysed concurrent delays, each delay is assessed
Telecomm
separately and its impact on other activities and the project 11
unication
42 20234.9 20696.79 38 3-58
duration is calculated. There are some guidelines for
concurrent delays classification. Firstly, if excusable and Urban
non-excusable delays occur concurrently, only a time 12 developme 2 15071.0 30503.36 2
extension is granted to the contractor. Next, if excusable nt 6-15
with compensation and excusable without compensation
Water
delays occur concurrently, the contractor is entitled to time 13 1 542.90 1187.00 1 60-70
resources
extension, but not to damages.

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
An analysis of the total 572 projects as on 30.11.2010 VIII. METHIDOLOGY
shows that 299 projects have contributed to time overrun  Literature collection
w.r.t their original schedule. The time overrun accounted  Review of literature
by these Projects ranges from 1-225 months. The overall  Factors identification
cost overrun has resulted in 20.7% increase in original cost.  Questionnaire preparation
The cost overrun for all projects together is 122516.89  Questionnaire survey
crore. The chart below depicts the percentage of delayed  Data Collection
projects during the last 18 years. This shows a decline in  Analysis of data
the delayed projects.
IX. CAUSES OF DELAY IN PREVIOUS STUDIES
Aibinu et.al (2002) studied effects of delay in Nigerian
construction sector and concluded time and cost overrun to
be most frequent causes of delay, one of the primary causes
of delay has been attributed to contractors.[3]
M. E. Abd El-Razek et.al (2008) in his study on the
contraction sector in Egypt found that the delay are
primarily caused by the delays in contractor’s payment by
the owner, design changes by the owner or his agent during
construction ,non utilization of professional and contractual
labour used in construction management. [14]
Fig 7.1 Trend of project running behind schedule w.r.t.original B.Umasankar et al (2006) in his study on factor causing
schedule construction delays in large housing projects in India.
According to that, slow decision making by the client, late
Time and Cost overrun in projects
release of interim payment, contractor’s low overall
Time and cost overruns have been a major problem productivity, subcontractor’s delay and insufficient
affecting the implementation of Central Sector Projects. working capital late release of interim payments, late
With the support of all the Ministries concerned, the time release of drawings/ details, contractor’s low overall
overrun in projects is coming down resulting in reduction productivity and poor resource allocation as the key factors
in the cost overrun of the projects due to close monitoring, resulting in construction delays are the major causes of
timely resolution of problems and systems improvement delay. [7]
brought out by the Ministry of Statistics & Programme Tommy Y. Lo et al (2006), revealed that Natural ground
Implementation,. An analysis of the trend in the last 19 conditions, poor Communication, Manpower problem,
years shows that the cost overrun has come down from Insufficient knowledge on work are lead the delay in
61.6% in March, 1991 to 20.7% in November, 2010 construction project in Hong Kong region. [20]
resulting in savings. The Chart below depicts the trend of Jyh-Bin Yang et al (2010), who evaluated Delays, which
cost overrun during the last 19 years. have become universal phenomena, are almost always
accompanied by cost and time overruns. Although schedule
delays seem to be embedded in all projects, identifying the
main causes and preventing these problems from occurring
are better than resolving subsequent delay-related disputes.
Most previous studies have focused on the construction
phase; this study identified the most significant delay
causes in the planning and design phases of construction
projects using questionnaire results. [11]
Frank D.K. Fugar (2010) has done a study on delays in
building construction projects in Ghana. financial group
factors were delay in honouring payment certificates,
difficulty in accessing credit and fluctuation in prices.
Fig 7.2 Trend Of Cost Overrun w.r.t.original Cost Materials group factors are second followed by scheduling
and controlling factors. [9]
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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
External factors such as inflation have also been seen to Table10.1
cause delay. Kaming et al(1997) studied influencing factors Causes for Delay in Construction Project
on 31 high-rise project in Indonesia and found that cost 1 Non availability of bank loan
overrun occur more frequently and are perceived as more
2 Fluctuation of prices
severe problems than time overruns. The study pointed out
that the major factors influencing cost overrun are material Delay in financial support by owner to the contractor (Stage by
3
cost increases due to inflation inaccurate material stage payment)
estimation and degree of complexity. [8] 4 Shortages of materials on site or market
Megha Desai & Rajiv Bhatt (2013) carried out a study to
5 Late delivery of material
identify the main causes of delay in construction projects in
Egypt from the point of view, in that financing by 6 Poor material procurement planning
contractor during construction, delays in contractor’s 7 Receiving materials that do not fulfill project requirements
payment by owner, design changes by owner or his agent 8 Lack of program on works
during construction, partial payments during construction, 9 Accidents during construction
and non-utilization of professional construction/contractual
management are the major causes of delay. [15] 10 Underestimation of time of completion
Hyun-Soo Lee et al (2005) has done a study on causes 11 Preparation and approval of shop drawings
and effects of delays and disruptions in construction 12 Lack of data base in estimating activity duration and resources
projects in Tanzania. In this he recommended that adequate 13 Legal disputes
construction budget, timely issuing of information,
14 Lack of communication between parties
finalization of design and project management skills should
be the main focus of the parties in project procurement 15 Equipment failure or breakdown
process. [10] 16 Unskilled equipment operators
Yasemin Nielsen et al (2013) studied the effects on 17 Equipment allocation problem
delay on Turkey construction project and concluded that
18 Wrong selection of type /capacity of equipment
planning and scheduling, Fluctuation of prices, Rework due
to errors, Late delivery of material, Owners demand, Poor 19 Inadequate modern equipment
site management, Complexity of project are all the major 20 Delays in obtaining approval from municipality
causes of delay. [13] 21 Discrepancy between design specification and building code
Wail Menesi (2007) identified two reason for causing of
22 Shortage of unskilled & skilled labor
waste, i) Not listening and ii)Not speaking. Lack of proper
communication leads to waste. These causes of wastes are 23 Personal conflicts among workers
due to poor communication between the client and the 24 Strike
contractor. Not asking includes fear of asking top level 25 High waiting time for availability of work teams
managers for clarifications on how exactly the work is to
26 Complexity of project design
be done. [22]
27 Design changes by owner or his agent during construction
X. QUESTIONNAIRE DEVELOPMENT 28 Insufficient data collection and survey before design
The researcher has drawn the questionnaire from the 29 Unclear and inadequate details in drawings
previous works of Safer Ali Abbas Ali and Arun C [19], B Delay in performing final inspection & certification by a third
Umasankar et al [7], Tommy Y Lo. et al [20], Jyh-Bin 30
party
Yang And Pei-Rei Wei [11], Fran D.K, et al [9], M.E.Abd
31 Changes in government regulations and laws
el-Razek et al [15], Yesemin Nielsen et al [23], Ajibade
Ayodeji Aibinu and Henry Agboola Odeyinka [4], Sadi 32 Bad weather conditions /Natural disasters (flood, earthquake)
A.Assaf et al [18]. 33 Obsolete technology
34 Rework due to errors

35 Lack of experience of consultant in construction projects

36 Improper project feasibility study

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
37 Lack of experience of owner in construction projects

38 Lack of incentives for contractor to finish ahead of schedule

39 Slowness in decision making

40 Project complexity

41 Geological problems on site

Lack of coordination among project-teams

Fig 10.1 Factors That Contributed To The Causes Of Delays (Ishikawa

42

43 Inaccurate bills of quantities

Design errors made by designers due to unfamiliarity with local

44 conditions & environment

45 Poor site management &Inaccurate site investigation

46 Imbalance in the risk allocation

Diagram)
47 Defective materials provided by client

48 Choice of wrong construction method

49 Application of quality control based on foreign specification

50 Application of safety aspect

The above mentioned fifty delay factors were grouped

into seventeen major groups based on their category as
shown below.

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
XI. QUESTIONNAIRE DESIGN Wrong selection of type /capacity of equipment 3.97 8
A questionnaire was designed based on the objectives of
Bad weather conditions /Natural disasters
the study, which are causes of construction delays. A 3.90 9
(flood, earthquake)
questionnaire survey was developed to get the opinion and
understanding from the experienced respondents regarding Design errors made by designers due to
to the construction delays problem. The questionnaires are unfamiliarity with local conditions & 3.84 10
all classified into 3 sections: environment
 SECTION A: Company and respondent profile
Equipment allocation problem 3.84 10
 SECTION B: Construction delay factors
 SECTION C: Respondent opinion about delay in Inadequate modern equipment 3.81 11
construction
Based on the literatures and factors considered, a Preparation and approval of shop drawings 3.71 12
Questionnaire was designed as a measurement tool for
delay in construction. The above mentioned seventeen Shortages of materials on site or market 3.68 13
factors were adapted to measure delay in construction
Unclear and inadequate details in drawings 3.65 14
project. The Questionnaire consists of 50 questions relating
factors influencing delay. Also the respondents were asked Non availability of bank loan 3.61 15
to rate their level of argument according to 5 point scale.
Slowness in decision making 3.61 15
XII. ANALYSIS OF DATA
Obsolete technology 3.58 16
The survey data were analysed by using SPSS software,
to find out the major causes of delay in construction Complexity of project design 3.55 17
industry. In that Mean score value (MSV) to be calculate,
based on this Mean score value Ranking is to be assigned Choice of wrong construction method 3.52 18
for the corresponding delay factors.
Project complexity 3.45 19
Table 12.1
Mean Score Value (MSV) & Ranking
Unskilled equipment operators 3.39 20
Mean
Causes of Delay Rank Lack of data base in estimating activity
Score 3.35 21
duration and resources

Shortage of unskilled & skilled labor 4.32 1 Application of safety aspect 3.32 22

Design changes by owner or his agent during Insufficient data collection and survey before
4.29 2 3.29 23
construction design

Fluctuation of prices 4.23 3 Imbalance in the risk allocation 3.29 23

High waiting time for availability of work Lack of coordination among project-teams 3.26 24
4.16 4
teams
Application of quality control based on foreign
Rework due to errors 4.13 5 3.26 24
specification

Delay in financial support by owner to the Equipment failure or breakdown 3.19 25

4.10 6
contractor (Stage by stage payment)
Underestimation of time of completion 3.16 26
Geological problems on site 4.06 7
Poor material procurement planning 3.13 27
Poor site management &Inaccurate site
4.06 7
investigation Delays in obtaining approval from municipality 3.13 27

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 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 1, January 2014)
Lack of experience of owner in construction
3.10 28
A detailed questionnaire is prepared based on the various
projects factors influencing construction delay such as Financing,
Material, Scheduling and controlling techniques, Planning,
Late delivery of material 3.06 29 Contractual, Equipment, Governmental action, Labor,
Design, External, Contractor, Consultant, Owner, Project,
Improper project feasibility study 3.03 30
Engineer, Client, Operation factors are considered in this
Personal conflicts among workers 3.03 30 project.
The most important causes identified by the survey, and
Lack of experience of consultant in based on overall results, were: (1)Shortage of unskilled &
3.03 30
construction projects skilled labor; (2)Design changes by owner or his agent
during construction; (3)Fluctuation of prices; (4)High
Delay in performing final inspection & waiting time for availability of work teams; (5)Rework due
3.03 30
certification by a third party to errors;(6) Delay in financial support by owner to the
contractor (Stage by stage payment); (7)Geological
Receiving materials that do not fulfill project
2.94 31 problems on site; (8)Poor site management &Inaccurate
requirements
site investigation; (9)Wrong selection of type /capacity of
Strike 2.94 31 equipment; (10) Bad weather conditions /Natural disasters
(flood, earthquake); these are all the top ten delay factors
Legal disputes 2.87 32 which affect construction project.

Lack of communication between parties 2.84 33 REFERENCES

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 International Journal of Emerging Technology and Advanced Engineering
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