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Bottom of FormStakeholders' Perception of the Causes and Effects of Construction Delays on Project Delivery

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302 Info KICEM Journal ofConstruction Engineering and Project ManagementOnline ISSN 2233-958225www.jcepm.orghttp://dx.doi.org/10.6106/JCEPM.2012.2.4.025 Doctoral Student,Department of Building, University of Lagos, Nigeria,email: eoakinsiku@yahoo.comQuantity Surveyor, WSP Group, Victoria Island,Nigeria, email:akintunde.akinsulire@wspgroup.com.ngStakeholders Perception of the Causes and Effects ofConstruction Delays on Project DeliveryOlusegun Emmanuel Akinsiku1and Akintunde Akinsulire2Received August22, 2012 / Revised October10, 2012 /Accepted November16, 2012ABSTRACT:Thegrowing rateof delaysis adversely affecting the timely delivery of construction projects. Thisstudy thereforeassesses construction stakeholdersperception ofthe causesof delays and its effects on project delivery ina bid to proffersolutionin minimizing the occurrencesof delays.Questionnaire wasused to elicitresponsesfrom construction stakeholders;a totalof thirty three causesofdelays, seventeen resultanteffects ofdelays and fifteen methodsof minimizingconstruction delays wereidentified for the study based on literature reviews. The results suggest that clients cash flow related problems are the maincausesof delays while timeand cost overruns are the majoridentifiable effects of delaysinconstruction projects. However, adequateproject planning and budgeting were suggested as possible ways of minimizing the occurrences of delays.Keywords: Cost; Delay; Project delivery; Stakeholders; TimeI.INTRODUCTIONDelay is a pervasive phenomenon in constructionproject delivery. It is branded as the most common, costlyand risky problem encountered in construction projectwith a debilitating effect on the parties to a contract [1]. Itcreates adversarial relationships, distrust, litigation, cash-flow problems, project abandonment and general feelingof apprehension towards each other [2]; [3]. Delaysfrequently occur in all phases of construction projects andhave been seen as inevitable [4]; [5] which consequentlyresults in cost and time overruns [6]. It is seen as the mostprolific factor affecting project performance [7].The demand of construction clients for the timelydelivery of construction projects and the susceptibility ofprojectstodelaysandcostoverrunshasattractedtheattention of researchers all over the world, most of whotried to identify the immediate as well as the root causesof project delay. However, despite the various study andinvestigation into the causes of delays, it has continued tobeadeadlymonsterwhichplaguestheconstructionindustry.The objective of this paper is therefore to evaluateconstruction stakeholders perception of the major factorsthat causes delay in construction projects, evaluate theeffects of delays on construction project delivery and todevise a method by which these effects on delays onconstruction project delivery could be minimized instakeholders perception. This is envisioned to help thestakeholders: construction clients, contractors andconsultants to understand the dynamics of delaysassociated with construction projects.II.LITERATUREREVIEWA.Types of DelayDelay in projects is almost inevitable. Some delay willtake place at a particular period in the completion of anactivity and some other ones may be capable of leeway inwhen they have their effects. According to Scott [8] heidentified three major typesof delay namely: employersresponsible delay; contractors responsible delay andneither party responsible delay. He describedemployers responsible delay as those that results intovariation and failure to provide site information.Ezeokonkwo[9] further elaborated that the delaysemanated from the Employer are found in the areas ofextension to time and escalation of costs due to inflation,delay in the payment of interim certificates; inability ofthe client or his representatives in taking quick decision,late handing over of site, delay in the supply of materialsand inadequate planning.Contractors responsibledelays are caused by inabilityof the contractor to proceed with the project diligentlyand efficiently as a result of inadequate labour/ plantprovisionsandinsolvencyofthecontractor.Neitherpartyresponsibledelay(Extraneousconditions)existinsituations that are beyond the capacity of either thecontractor or the client. Such extraneous circumstancesare resultants from strikes, riot, exceptional adverseweather, force majeure and acts of God, loss and damagedue to fire and storm, Inability of the contractor to reasonbeyondhiscontrolandwhichhecouldnotreasonablyhave foreseen at the date of the contract to secure suchresources and delays caused by nominated subcontractorsor suppliers which the contractor has taken all possiblesteps to avoid or reduce [9].Ahmed et al.[2] is of the opinion that delay could be

Olusegun Emmanuel, Akinsiku andAkintunde Akinsulire26KICEM Journal of Construction Engineering and Project Managementnon-excusable; excusable (with or without compensation)and concurrent delays. He further explained that non-excusable delays are either caused by the contractor, sub-contractor or other party but are within the control of thecontractor. These non- excusable delays are as a result ofequipment breakdown; inadequate scheduling ormismanagement; underestimation of productivity;construction mistakes; improper project planning; poorsite management and supervision; unreliablesubcontractors or suppliers and general staffing problems.Consequently, this type of delay presents no entitlementto a time extension or delay damages for the contractor ifthe delay can be proved to have affected the wholeproject but thus entitled the client to claim for a liquidateddamages. A typical example is when the contractor failsto provide sufficient manpower to complete his task ontime.Excusable delays on the other hand are caused byunforeseen factors beyond the contractor or any otherparty and are not attributed to their negligence or faults. Itis however within the terms of contract that whenexcusable delays occur, both parties will have toshare therisks involved. The contractor will not receivecompensation for the cost of delays, butwill be entitled toan additional time to complete his work and is relievedfrom any contractually imposed liquidated damages forthe period of delays.This type of delay can also have an impact on non-critical activities which need a more detailed analysis todetermine whether an extension of time is warranted, or ifthe reduction of float time can be justified. Excusabledelays can therefore be further classified into excusablewith compensation and excusable without compensation.B.Causes of DelayDelays can be minimized only when their causes areidentified. Knowing the cause of any particular delay in aconstruction project would help avoiding the same.Table I shows the causes of delays as identified byprevious researchers:TABLE IMAJORCAUSES OFDELAYSResearcherCountry Majorcausesofdelay1OkpalaandAniekwu[10]Nigeria1Failuretopayforcompletedworks2Poor contract management3Shortages of materials2Mansfield,UgwuandDoran [11]Nigeria1Fluctuations incosts2Improper financial and payment arrangements3Inaccurate cost estimates4Poor contract management5Shortages of materials3Semple,HartmanandJergeas [12]Canada1Increasesinthescopeofwork2Inclement weather3Restricted access4Assaf,Al-KhalimandAl-Hazmi [13]Saudi-1Changesindesign/designerrors2Delay in payment to contractors3Poor workmanship4Shortages of laboursupply5Slow preparation and approval of shopdrawingArabia5ChanandKumaraswamy[14]HongKong1Client-initiatedvariation2Poor site management andsupervision3Slow decision making by project team4Unforeseen siteconditions6OgunlanaandPromkuntong [15]Thailand1Changesindesign/designerrors2Liaisons problems among the contracting parties3Shortages of materials7OdeyinkaandYusif[16]Nigeria1Variationinorders.2Slow decision making.3Financial/Cash flow difficulties4Resources management problems5Planning and Scheduling problems6Inadequate site inspection7Inclement weather and acts of nature8Labour disputes and strikesMezhelandTawil[17]Lebanon1Materialshortagesandchangesintypeandspecificationduringconstruction2Skilled and Unskilled labour shortages and Poor productivity.3Shortages of equipment, Unskilled operators, slow maintenance and oldequipment.4Cash flow during construction, Delay incontractors progress payment by owners, contractorfinancing problems and varying material costs.5Design changes by owners, design errors byconsultants, geographical problems and unexpected site conditions6Permits from municipals, permits for foreignexpatriates, building codes, bureaucracy in government agencies and Urban planning permits.7Shop drawings, preparation of network scheduling, lack ofpersonnel training and managementsupport, poor judgment in estimating time andresources and poor initial siteplanning.

Stakeholders Perception of the Causes and Effects of Construction Delays on Project Delivery27Vol.2, No.4 / Dec 20129Al-Momani[18]Jordan1Changeorders/design2Inclement weather3Late delivery4Poor design5Unforeseen siteconditions10Lo,FungandTung[19]HongKong1Exceptionally lowbid2Inadequate resources due to contractor/lack ofcapital3Inexperienced contractors4Poor site management and supervision by consultants5Unforeseen ground conditions6Works inconflict with existing utilitiesC. Effects of DelayConstruction delays occur either as a liability on part ofthe client and his team, liability on part of the contractorand his team, nature i.e. causes of force majeure andsocial political issues through the changes bye-laws,statues etc. The effects of these delays is alwaysdebilitating on construction project performance. Studiesconducted on the effect of delay on project delivery haverevealed that delays are associated with time and costoverruns as well as litigation and project abandonment.Haseeb et al.[20] identified dispute, lawsuit, totaldesertion, litigation and project abandonment as theeffects of delays. Aibinu&Jagboro [21] identified timeoverrun, cost overrun, dispute, arbitration, totalabandonment and litigation as the resulting effects ofdelays.Survey conducted by Kaming et al.[22] studiedinfluencing factors on 31 high-rise projects in Indonesiaand found out that cost overruns occur more frequentlyand are more severe problem than time overruns. Theypointedoutthatthemajorfactorsinfluencingcostoverrun are material cost increase due to inflation,inaccurate material estimation and degree of complexities.Li, Love and Dawe[23] argue that when delay occursthere are three possible situations that a project managermay be confronted with additional costs, a decline inquality and rework. Yet, a project manager is often facedwith the following options: either prescribes overtimework and/or injects additional resources, in order to meetthe project's schedule. While injecting additionalresources can significantly increase project costs,prolongedovertimeworkmaycausedeclinesinproductivityandperformance,whichmayalsogeneraterework.III.METHODOLOGYA. Research DesignThis survey was carried out base on the review ofrelevant literatures and questionnaire surveys. Data usedfor the survey were primary and secondary. The primarydata are the responses of the three main classifications ofconstruction stakeholders of clients, consultants andcontractors. Information regarding causes and effects ofdelays were extracted from the study of [11]; [13]; [16];[19]; [20] and domesticated to the study population.Data for this research were primarily gathered througha structured questionnaire. The questionnaire wasdesigned with three major parts. The first part seeks forthe general information about the respondents. Thesecond part obtains the information on factors thatcontribute to the causes of delay in construction projectswhile in the final part, respondents were asked to rank theindividual effect of delay in construction project based onfrequency of occurrence according to their own judgmentand working experience as clients contractors orconsultants.B.Population and SampleThe population of this research was drawn from thepractitionersoftheconstructionindustryinLagosstate,Nigeria.Lagosbeingthecommercialnervecentre.Highconcentration of construction works is prevalent in thisarea. Judgmental sampling technique was adopted inchosen respondents; construction clients, consultants andcontractors were identified to provide their perceptionsand opinions on the causes and effects of delays onproject delivery based on their experience.C.CharacteristicsofRespondentsTable II presents the characteristics of respondents withrespect to their organisation types. From thetable, 16% ofthe respondents are professionals that work in clientsorganisation, while 39% and 45% represent respondentsworking in contracting and consulting organizationsrespectively.TABLE IICHARACTERISTICS OFRESPONDENTSTypeofOrganisationNo.PercentClientOrganisation616ContractingOrganisation1539ConsultingOrganisation1745Total30100

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