CRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION PROJECTS IN GHANA

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GHANA TECHNOLOGY UNIVERSITY COLLEEGE/ COVENTRY UNIVERSITY PROJECT THESIS: CRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION PROJECTS IN GHANA By NAME: JOHN KWABLA GOMELESIO MSc ENGINEERING PROJECT MANAGEMENT (INDEX NUMBER: COVEP0912005) SUBMISSION OF: CHARPTER ONE - INTRODUCTION CHARTER TWO – LITERATURE REVIEW CHARTER THREE - METHODOLOGY AND DATA COLLECTION CHARTER FOUR - DATA ANALYSIS CHAPTER FIVE – CONCLUSION AND RECOMMENDATION

Transcript of CRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION PROJECTS IN GHANA

GHANA TECHNOLOGY UNIVERSITY COLLEEGE/ COVENTRY UNIVERSITY

PROJECT THESIS:

CRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION

PROJECTS IN GHANA

By

NAME: JOHN KWABLA GOMELESIO

MSc ENGINEERING PROJECT MANAGEMENT

(INDEX NUMBER: COVEP0912005)

SUBMISSION OF:

CHARPTER ONE - INTRODUCTION

CHARTER TWO – LITERATURE REVIEW

CHARTER THREE - METHODOLOGY AND DATA COLLECTION

CHARTER FOUR - DATA ANALYSIS

CHAPTER FIVE – CONCLUSION AND RECOMMENDATION

DATE: 22ND AUGUST, 2013

ii

ACKNOWLEDGEMENT

i

ABSTRACT

This study is primarily aimed at analysing critically, the delays in government road

construction projects in Ghana. It identifies the perceptions of the major stakeholders in

the construction industry on the issue of delays in government road construction

projects. It addresses the causes and effects of delays and goes on to make

recommendations to curb the menace.

The study used questionnaires as the data collection instrument to gather appropriate

data to answer the research questions. A total sample size of 40 respondents was

targeted in the questionnaire distribution. This included contractors, consultants and

subcontractors who were engaged in the government road sector. The population was

based on government road construction projects that were scheduled for completion in

2012. It was discovered that none of these projects was completed on schedule.

The findings of the research revealed that, government road construction project delays

have resulted mainly due to government’s failure to pay contractors, consultants and

subcontractors on time. This has led to excusable delays without compensation as can

be seen in the responses from the survey. Aside the government, other high ranking

delay factors were mostly contractor, consultant and subcontractor related. These

resulted in cost and time overruns which had adverse repercussions on the entire

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project. Recommendations were made to prevent future occurrence of this

phenomenon.

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TABLE OF CONTENT

Table of ContentsGHANA TECHNOLOGY UNIVERSITY COLLEEGE/ coventry university............i

PROJECT THESIS:.........................................................iCRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION PROJECTS IN GHANA.............................................................iACKNOWLEDGEMENT......................................................i

ABSTRACT............................................................iiLIST OF FIGURES.....................................................vi

LIST OF TABLES.....................................................viiCHAPTER ONE..........................................................1

1.0 OVERVIEW.......................................................11.1 GHANA GOVERNMENT CONSTRUCTION PROJECTS.........................3

1.2 CAUSES OF DELAYS IN GOVERNMENT CONSTRUCTION CONTRACTS..........51.3 OBJECTIVE......................................................5

1.4 SIGNIFICANCE...................................................61.5 PROBLEM STATEMENT..............................................6

1.6 METHODOLOGY....................................................71.7 SCOPE AND LIMITATION...........................................7

1.8 CONCLUSION.....................................................81.9 CHAPTER ORGANISATION...........................................8

CHAPTER TWO..........................................................92.0 INTRODUCTION...................................................9

2.1 TYPES OF DELAYS...............................................102.1.1 Excusable Delays..............................................11

2.1.2 Non excusable Delays..........................................122.1.3 Critical Delays and Non Critical Delays..............................14

2.1.4 Concurrent and Non Concurrent Delays.............................15

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2.2 CAUSES OF DELAYS..............................................172.3 IMPACT OF CONSTRUCTION DELAYS.................................21

2.4 CONCLUSION....................................................23CHAPTER THREE.......................................................25

3.0 INTRODUCTION..................................................253.1 RESEARCH QUESTIONS............................................25

3.2 METHODOLOGY...................................................263.3 SAMPLE........................................................27

3.4 DATA COLLECTION...............................................28CHAPTER FOUR........................................................30

4.0 INTRODUCTION..................................................304.1 BACKGROUND INFORMATION OF RESPONDENTS.........................30

4.2 FACTORS CAUSING DELAY.........................................344.2.1. Consultant Related Factors.......................................35

4.2.2. Contractor Related Factors.......................................364.2.3. Design Related Factors..........................................38

4.2.4. Equipment Related Factors.......................................394.2.5. External Related Factors.........................................40

4.2.6. Labour Related Factors.........................................414.2.7. Material Related Factors........................................43

4.2.8. Client Related Factors..........................................444.2.9. Project Related Factors.........................................46

4.2.10. Overall Ranking of Factors that Cause Delays.........................464.3 EFFECTS OF CONSTRUCTION DELAYS................................47

4.4 CONCLUSION....................................................49CHAPTER FIVE........................................................50

5.1 INTRODUCTION..................................................505.2 FINDINGS......................................................50

5.3 CONCLUSION....................................................50

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references..........................................................53APPENDIX A..........................................................57

QUESTIONNAIRE COVER LETTER.........................................57APPENDIX B..........................................................63

OVERALL RANKING OF THE FACTORS THAT CAUSE DELAYS...................63

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LIST OF FIGURES

Figure 1: Delay Categories..........................................13

Figure 2: Types of Delays...........................................13

Figure 3: Classification of Delay Factors...........................21

Figure 4: Years of Operation........................................31

Figure 5: Responses per Stakeholder (Consultant Related Factors)....36

Figure 6: Responses per Stakeholder (Labour Related Factors)........42

Figure 7: Responses per Stakeholder (Material Related Factors)......44

Figure 8: Responses per Stakeholder (Client Related Factors)........45

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LIST OF TABLES

Table 1: Categories of Construction Projects.........................4

Table 2: Various Researches on Causes of Delays.....................18

Table 3: General Causes of Delay....................................19

Table 4: Construction Project and Completion Period.................32

Table 5: Consultant Related Factors Results.........................35

Table 6: Contractor Related Factors.................................37

Table 7: Design Related Factors.....................................38

Table 8: Equipment Related Factor...................................40

Table 9: External Related Factors...................................41

Table 10: Labour Related Factors....................................42

Table 11: Material Related Factor...................................43

Table 12: Client Related Factors....................................45

Table 13: Project Related Factors...................................46

Table 14: Top 20 Factors of Delay Causes............................47

Table 15: Effects of Construction Delays............................48

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CHAPTER ONE

INTRODUCTION

1.0 OVERVIEW

Delays in the construction in industry in Ghana are a well

known menace that has cast a slur on the image of

construction professionals across the country. This

phenomenon has been a major concern for professionals and

lay men alike since the impact of such delays are felt by

all stakeholders. This is particularly so in the case of

government related construction contracts. This has raised

concerns from tax payers as to why such delays have been

persistent in government contracts as compared to similar

construction projects for private entities. This has

prompted the interest of this researcher to find out what

the causes of these delays are and what possible solutions

could be recommended to avert such occurrences in the

future. According to Sanders and Eagles (2001) delay is an

event that causes extended time to complete all or part of a

project. Alternatively delay could be considered as the

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excess time that extends beyond the date of completion as

stipulated in the contract or beyond the extended time if

any. The focus of the study on the delay in government

construction project is on the time that elapses beyond the

date for completion specified by the contract with the

exception of the extended time granted within the contract.

Delays are costly to a project especially the time lapse,

over expenditure, litigation, disputes and abandoned

projects (Sambasivan and Soon, 2007). In most cases,

projects which are delayed beyond the time specified in the

contract goes a long way to bring hardship, loss of revenue,

bad reputation and increase in avoidable cost (Clough,

1986). Further consequences resulting from the delay of a

project in terms of its cost includes labour cost of non-

productive workers, supervisors, leased equipments, material

delivery schedules and additional overhead costs (Clough,

1986). This gives a clear indication that in the cause of a

delay, not only the contractor suffers loss but also, all

other stakeholders in the project are affected in one way or

the other.

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A delay in projects of the Ghanaian construction industry

has become a major problem which is often discussed because

of its economic and social impact. However, not many

research papers have been written on the subject with the

exception of those by Frimpong and Oluwoye (2003) and Fugar

et al. (2010) who investigated the significant factors that

cause delay and cost overruns in the construction of

underground projects in Ghana and delays in the building

construction projects in Ghana respectively. The four major

delays as identified by Frimpong and Oluwoye (2003) in

response obtained from stakeholders in the industry

(consultants, owners, contractors) revolve around project

financing, economic factors, natural conditions and material

supply. Fugar et al. (2010) also analysed the result of

their study by ranking the major factors of construction

delays as indicated by their respondents. Financial delays

ranked top most in that category. They explained that delays

in honouring payment certificates, difficulty in accessing

credit and volatility of borrowing costs all contribute to

the delays. Material supply comes next after the financial

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challenges in the delay of construction projects. This

includes shortages of materials on site or market and late

delivery of material. The third highest ranking factors in

delays in construction projects is scheduling and

controlling factors.

There still remains a yawning gap in the subject area for

which this research seeks to help fill and this bothers on

delays in government construction projects. The contribution

of the construction industry to the economy of Ghana cannot

be overemphasised. On the average 8.5% of the Gross Domestic

Product is from the construction sector (Ghana Statistical

Service, 2007). It employed about 2.3 % of the economically

active population in 2002 (Amankwa, 2003). This industry

helps in increasing the consumer base of other industries

such as cement manufacturers, quarries and plant & equipment

sellers and even facilitates the work of other industries as

well, for example transport industry. Much importance should

be ascribed to the construction sector particularly in the

light of the recent discovery of oil in commercial

quantities in order to accelerate our attainment of the full

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middle income status objective of the nation by 2015. These

events provide a compelling case for looking into the

factors that contribute to the delays in the construction

industry with particular reference to government

construction projects in Ghana.

1.1 GHANA GOVERNMENT CONSTRUCTION PROJECTS.

Like any other country, the government of Ghana plays a

dominant role in the construction industry due to the

capital intensive nature of its operations. Billions of

cedis contributed by taxpayers’ are invested into various

government construction projects. The sources of funding for

these projects, though largely from budgetary allocation

include contributions from donor agencies and other

development partners.

Government construction projects mainly cover four (4) basic

areas. They are construction of building, roads, other

construction and maintenance.

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Table 1: Categories of Construction Projects

Building Roads Others Maintenance

a. Domestic

b. Commercial

c. Factories

/

industries

d. Estate –

investment

e. Offices /

public

a. Highway/

trunk

b. Urban /

town

c. Feeder/

village

d. Estate

e. Runway

for

airports

a. Dams /

irrigatio

n

b. Railways

/

stations

For all

three (3)

preceding.

The government is significantly involved in the construction

of roads, dams, airport runways and railway lines. These

projects are national assets that the government often

undertakes due to the capital intensive nature of their

construction. With the construction of buildings, we usually

see the involvement of individuals and other private

partners in such ventures. There is however more delays in

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the government projects than in those of private

individuals. This may be as a result of little or no

bureaucracy and red-tapes in the operations of the private

companies or individuals. The procedures involved in the

construction projects of government from start to finish can

sometimes be an albatross around the neck of the project

contractors and consultants. Aside these, there are several

other factors which have been elaborated further in the

subsequent chapter of this research paper.

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1.2 CAUSES OF DELAYS IN GOVERNMENT CONSTRUCTION CONTRACTS

There are several factors that contribute to contract delays

in government projects. Very often, complains of poor

performance and delays are received from the general

population in relation to government projects but very

little is done to address these concerns. These delays could

emanate from the actions or inactions of any of the parties

to the contract (that is, government, consultants and

contractors). Some of these delays include irregular

payments and disturbed cash flow of main contractors, the

bureaucracies of government approvals and authorisations,

poor planning and management of resources and many others.

These factors have been classified into excusable and non-

excusable delays by Bolton J. (1990). What makes a delay in

the execution of a construction contract excusable or non-

excusable depends largely on the agreement between the owner

(government) and the main contractor as stipulated by the

contract. This express agreement should indicate which

delays are deemed as the risk of the owner (government) or

the prime contractor. This is very crucial in the event of a8

dispute and helps prescribe remedies for any such delays

when they arise.

1.3 OBJECTIVE

The main objective of this study was to identify the major

causes of delays of government road construction projects in

Ghana using an opinion survey. The primary aim is to collate

the opinions of the major stakeholders in the construction

industry such as contractors, subcontractors and consultants

regarding the causes of delays and to suggest possible ways

of eradicating or minimising them. In summary, this research

work seeks to fulfil the following:

Identify the causes of delays in government

construction projects in Ghana

Identify the roles of the various stakeholders in

relation to the delays

Identify the effects of these delays on the nation

Propose solutions to rectify the delay factors

indentified.

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1.4 SIGNIFICANCE

This research is a contribution to the field of Project

Management which could guide policy makers (particularly

government), contractors and consultants to address the

challenges facing the construction industry to make them

more efficient and effective in executing projects in a

timely manner. This paper also is to inform readers about

the government construction projects in Ghana, the

challenges faced by the contractors, subcontractors and

consultants, the effect on stakeholders in the construction

project and the way forward. This paper will also serve as a

guide for future studies in the area of project management

and the construction field in Ghana.

1.5 PROBLEM STATEMENT

Most researchers have focused on the delay in government

road construction projects, the impact of such delays and

the possible solutions to this menace. However, very few of

these researches relate to Ghana and even so, they have been

limited to underground construction projects (Frimpong and

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Oluwoye, 2003) and building construction projects (Fugar et

al., 2010). This research therefore seeks to add to the few

existing papers on the subject matter in the Ghanaian

setting with emphasis on government contracts. The choice of

government road construction projects is to give the

research a broader spectrum since government is the biggest

client in the construction industry. This research seeks to

explore the following issues;

What are the major causes of delays in government

construction projects?

How do these delays affect the stakeholders identified?

What is the way forward?

1.6 METHODOLOGY

There are several delay factors that have been identified by

several literatures and these do require some classification

for a more synchronized data collection and analysis. The

researcher therefore started by identifying the relevant

delays which are applicable to the Ghanaian context and

classify them appropriately into major factors for easy

identification and analysis. Questionnaire surveys11

comprising individual set of well recognized causes of delay

will be issued to the target population (namely contractors,

subcontractors and consultants) to collate primary data for

the research. Data gathered will be analysed both

quantitatively and qualitatively. Graphs, tables and figures

will be used to explain the data analysed. The

questionnaires were designed to evaluate the relative

importance of the various factors causing of delays. In the

field survey the respondents were asked to indicate the

level of importance of each cause’s contribution to delay

using the Likert five-point scale ranging from 1 (Very Low)

to 5 (Very High).

1.7 SCOPE AND LIMITATION

This research looks at the construction industry in Ghana

with emphasis on government construction contracts.

Government construction contracts spans a large spectrum of

projects from road construction, buildings and other social

infrastructure. The time frame of this research will not

permit the researcher to delve into all the government

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related construction projects and as such, this research has

been narrowed down to government road construction projects

with particular reference to highway road projects.

Similarly, financial constraints will also pose a challenge

to the researcher and that may inform him on the selection

of the locations of the construction sites. These

limitations identified are what will determine the scope of

this research. This is to enable the researcher to

concentrate on quality rather than quantity.

1.8 CONCLUSION

The cost of delays in government road construction projects

cannot be down played. Its economic, political and social

implications deserve much attention to save stakeholders

from their repercussions. Identifying what the issues are

and finding practical solutions to them are very vital for

Ghana’s development. This is the reason why this research

work still remains a relevant subject matter to national

development and the field of academia, hence the motivation

for this research.

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1.9 CHAPTER ORGANISATION

This study is categorized into five chapters. Chapter one

covers the introduction to the study. It gives a general

overview of the entire study, the cause and reasons for the

study as well as the hindrances’ to the study. Chapter two

examines the existing literature on delays in the

construction industry in Ghana (Ho). Issues covering the

types of delays, causes and impact of delays in the

construction sector were discussed. Chapter three is the

methodology. It identifies the hypothesis and explains into

details the concepts as well as their indicators and

measurement in the study. Chapter four entails the data

analysis, discussion and findings gathered from the field.

Chapter five summarizes the key findings of the study,

recommendations and conclusion.

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CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

Delay in government construction projects, especially the

road sector, has had a significant impact on economic

activities in the country. Several road construction

projects have littered the length and breadth of the country

for which government has commenced that has yet to be

completed. Unfortunately the time line for these projects

are unknown to the citizens of the country and for that

matter, they are not able to demand accountability for such

wasteful ventures. This has led to an increased number of

uncompleted road construction projects by government and has

further compounded the woes of Ghanaians. Those road

constructions projects for which people have asked questions

about the inefficient manner in which they are being

executed, the parties to those contracts have resorted to

the blame game leaving the ordinary citizens with no hope in

sight.

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The construction delay menace is not peculiar to Ghana but

almost every country has a fair share of this trouble. Assaf

and Al-Hejji (2006) in their work on the Saudi Arabia

construction industry observed that only 30% of construction

projects were completed on time with an average overrun

between 10% and 30%. This leaves a significant proportion of

delayed construction projects in Saudi Arabia standing at

about 70%. Similarly, Odeyinka (1997) also saw a similar

trend in the Nigerian construction industry where 70% of the

construction projects surveyed were plagued with delays in

their execution. Ajenlekoko (1987) whose research was based

on the performance of construction projects in Nigeria and

their time to completion also discovered that the

construction industry’s adherence to the contract schedule

was very low. Several other researchers such as Ogunlana and

Promkuntong (1996), Al-Momani (2000), Frimpong et al (2003)

and Chan and Kumaraswamy (1997) all carried out similar

surveys in their respective countries and concluded that

delays in construction projects are pervasive in the

industry irrespective of the geographical location.

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Delay has been defined severally by many researchers often

times with some bias towards the central theme of their

research work. That notwithstanding, there are some

definitions that explain the concept of delays with

precision. A few of these definitions have been considered

in this chapter to lay a solid foundation for the rest of

the work. One of such definitions is by A.A. Aibinu et al

(2002) who define delay as a situation where the contractor

and the project owner jointly or severally contribute to the

non-completion of the project within the agreed contract

period. Likewise, Sanders and Eagles (2001) also define

delay as an event that causes extended time to complete all

or part of a project.

2.1 TYPES OF DELAYS

Delays in construction projects have been put in various

classifications by several authors but most of these

classifications have a lot in common in terms of their

fundamentals. Although various types of delays have been put

forth in several studies, they are somewhat linked to one

17

another. These classifications have been elaborated in the

arguments below.

Most importantly, delays can be seen in these three major

categories as explained by Bramble (1987);

Excusable or Non Excusable,

Compensable or Non Compensable

Critical or Non Critical and

Concurrent or Non Concurrent.

2.1.1 Excusable Delays

Generally, delays that arise from incidents outside the

control of the parties to the construction project projects

are classified under excusable delays. Because of the

unexpected nature of such events, nothing can be done by any

of the parties to avert their occurrence. Events such as

acts of God, acts of God, severe weather conditions, strike

actions by labour force and sovereign acts. This is mostly

included in the contract terms as force majeure for which

all parties will be relieved of any liability that may be

levied on them for non performance. That notwithstanding,

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not all excusable delays are necessarily outside the control

of the parties to the construction contract. This type of

delay could be either the fault of the owner (such as

restricting access to the project site or even failure to

provide needed funds as agreed upon) or the contractor (such

as poor planning and management of project resources) or

even the consultant (such as delayed approval of drawings).

Based on the two conditions that give rise to excusable

delays, there is a further sub classification of excusable

delays as elaborated by Bolton J. (1990). They are excusable

delays with compensation also known as compensable delays

and excusable delay without compensation also known as non

compensable delays. Excusable delays with compensation are

those that arise from the actions or inactions of the owner

(client). Usually this kind of delay comes with some

financial damages at the expense of the defaulting owner and

also time extension is also granted. On the other hand,

where the delay is not the fault of any of the parties to

the contract (like an act of God), no damages are awarded to

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any party to the contract. As to whether there will be an

extension of the time or how much compensation will be

sufficient, most often will be determined by the terms of

contract.

The general principle of contracts permits the parties to a

contract to include anything in the agreement as they deem

fit. This empowers the courts or arbitrators to enforce the

terms agreed upon by the parties to the contract, should any

dispute arise. For that matter, whether or not a delay in a

construction contract can be excused or otherwise, is mostly

dependent on what the owner and the contractor have agreed

in principle to.

2.1.2 Non excusable Delays

As can be inferred from the name, such delays are ones that

they do not have any excuse or no excuse can be given for

them. Such delays are often caused by the negligence or

actions of the contractor and or the consultant. These

delays are not accompanied by financial settlements and time

extensions as to the contractor and or consultant. This

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rather gives the owner the right to seek reliefs in the form

of liquidated damages. For instance, a delay could be caused

when drawings given and the construction work on going are

distinct from each other or even resources needed to get the

job done are not properly allocated.

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Figure 1: Delay Categories

Figure 2: Types of Delays

The diagram above summarises the major types of delays as

expounded by Bolton (1990) and Bolton J. (1990). In other

words, excusable delays are those caused by the owner and or

an external force outside the control of the parties to the

contract whereas inexcusable delays are those caused by the

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Delay CategoriesExcusableBeyond the Contractor's ControlOwner changesUnforeseeable weatherDiffering site conditionsStrikesActs of GodCompensableWithin Owner's ControlOwner changesDiffering site conditionsNon CompensableBeyond Owner's ControlStrikesAct of GodNon ExcusableWithin the Contractor's ControlContractor slow progressSubcontractor slow progressBroken equipment

contractor and or the consultant. There are other types of

delays that have been identified by other researchers. They

include critical or non critical delays, and concurrent or

non concurrent delays. This is an extension of the types of

delays as explained by El-Saadi (1998).

2.1.3 Critical Delays and Non Critical Delays

As indicated earlier in the above classification of delays

as portrayed by Bolton J. (1990), this set of delay

classification has some connection with previous ones.

Critical delays are delays which prevent the contractor from

finishing the work on the scheduled completion date as

agreed upon in the contract. This concept has roots

entrenched in the Critical Path Method (CPM) schedule which

helps identify the critical activities in a construction

project. All projects have critical activities embedded in

their execution irrespective of the kind of schedule being

run. These critical activities are sometimes referred to as

the controlling item of work. CPM seeks to accomplish three

main objectives:

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To calculate the project’s completion date

To identify the extent to which each activity in the

schedule could slip without delaying the project and

then

To identify which activities in the schedule would have

the highest risk of affecting the project completion

date if they slipped.

How is the CPM used to estimate the project’s finish

date? There are basically two methods of estimating the

project’s date using the CPM, the Forward Pass

Calculation and the Backward Pass Calculation. The

Forward Pass computes the early start and the early

finish dates of the project whiles the Backward Pass

estimates the late start and the late finish dates. That

notwithstanding, identifying which activities truly

impact the completion date of the project also depends on

the following factors as given by Trauner (2009):

The project itself

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The contractors plan and schedule (particularly the

critical path)

The requirements of the contract for sequence and

phasing

The physical constraints of the project – how to

build the job from a practical perspective.

It is important to note that irrespective of how one

chooses to analyse a construction project schedule to

identify delays, there will always be an overriding factor

which will need much attention. This is known as the

contemporaneous information which refers to the daily

reports, the schedules in effect and any other job data

available to reflect the existing situation at the time of

the delay (Trauner, 2009). From the above explanation, non

critical delays can be seen as those delays that do not

impact the completion date of the project but in a way,

affect the progress of the work. It can therefore be said

that both excusable and non excusable delays are all

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critical delays. This leaves non critical delays as a

standalone delay classification.

2.1.4 Concurrent and Non Concurrent Delays

Concurrent delays like most other delays have several

definitions as put forth by practitioners in the industry. A

few definitions as prescribed by the Association for the

Advancement of Cost Engineering (AACE) (Recommended Practice

10S-90) have been considered below;

Two or more delays that occur or overlap within the

same period, either of which occurring alone would have

affected the ultimate completion date.

Where two or more independent causes of delay occur

during the same time period. The same time period being

referred to is not always literally within the exact

period of time but can be related by circumstance, even

though the circumstance may not have occurred during

the exact same period.

True concurrent delay is the occurrence of two or more

delay events at the same time, one an employer risk

26

event, the other a contractor risk event and the

effects of which are felt at the same time.

Concurrent delay mostly refers to the situation where two or

more delay activities occur at different times but the

impact is felt (in whole or in part) at the same time. It

occurs when both parties to the construction contract (owner

and contractor) delay the project during an excusable but

non compensable delay (such as severe weather conditions).

Such delays do not necessarily have to occur simultaneously

but can be on two parallel critical path chains. Concurrent

delays may also be an excusable delay with compensation

which may grant some reliefs to the contractor in the form

of extension of time, remission of liquidated damages and

sometimes potential delay of damages subject to the given

circumstance and the contractual agreement. In the same

vein, a concurrent delay may also be inexcusable where the

delay of the contractor, though concurrent with that of the

owner, had a more severe impact on the finishing date. For

instance, the owner’s delay occurred from the 5th to the 8th

month of the project period while the contractors delay was27

from 4th to the 10th of the project period. Though these two

delays happened around the same time, the contractor’s delay

would impact the completion date rather than the owner’s.

Concurrent delays could be caused by the delaying effects of

events that were either excusable (i.e. the events for which

the employer takes the risk of time and for which extensions

of time should be granted to the contractor) or culpable

(i.e. events for which the contractor takes the risk of

time) (Rawlings, 2003). However, the effects of two delaying

events by both parties to the contract, which impacted upon

progress of the contract at mutually exclusive time frames,

could not be said to be concurrent.

2.2 CAUSES OF DELAYS

There are several causes of delays that have been identified

by researchers in the field of project management in the

construction industry. Some of these researchers have even

attempted to categorise the causes of delays based on

certain factors. These categories may have some geographical

limitations and as such cannot be applied using a wholesale

28

approach. This probably explains why there are several

researches on the causes of delays in construction projects

from several countries. Although there are some similarities

in these findings, the differences reiterate the need to

have geographic dimension to this subject matter. Some

causes are major whiles some are minor in their prevalence

as observed by various researchers hence, those who

attempted classifying the causes based them on the ones

identified by stakeholders as very pervasive in nature.

In Nigeria for instance, the study conducted by Mansfield

(1992) pointed out 16 major delay causes in construction

projects. His survey sought responses from owners,

contractors and consultants in the country’s construction

industry. The delays identified include financial

arrangements, poor project management, material shortages,

and price volatility which distort estimates, just to

mention a few. In the case study of Saudi Arabia as

explained by Assaf et al. (2006) they came up with 56 major

causes of delays from large building projects. In terms

29

relative importance, most contractors outlined the following

as the main causes of delays in construction projects;

financial settlement by clients, preparation and approval of

drawings, delays in contractor’s progress and changes in

designs. Consultants also pointed out that financial issues,

the work of subcontractors and the slow decision making

process of clients as being the major causes of delays.

Similarly, on the part of clients, design errors, labour

shortages and inadequate labour skills were the delay causes

identified. Several researches have also done their work on

other countries as shown in the table below:

Table 2: Various Researches on Causes of Delays

Researcher Geographical Location

Causes of Delays Identified

Chan and Kumaraswamy (2002) Hong Kong

They analysed and considered delays fromthe perspective of thecontracting parties and the types of projects

Ayman (2000) Jordan He identified project design, weather, site conditions, owner alterations, late deliveries and economic conditions as

30

major delay causes.Frimpong et al. (2003) Ghana Factors identified

include payment issues, poor contractor management,material outages, poortechnical performance and price volatility.

Ren et al. (2008) summarised the general causes of delays in

construction projects under client, consultant and

contractor based on analyses of a number of research

findings. This categorisation is based on who the fault is

emanating from. As per their classifications, they only

focused on the parties to the construction contract as

stated earlier. This is summarised in the table below:

Table 3: General Causes of Delay

Client Consultant Contractor

Regular interference

and poor

communication

Incomplete contract

documents

Inappropriate

organisation

management

Variation order and

late approval for

payment

Incomplete drawings Lack of technical

professional in the

organisation

31

Late supply of

information and late

decision making

Poor design

management

Shortage and poor

quality of materials

Project objectives

are not very clear

Slow response Lack of coordination

with sub-contractors

Nomination of sub-

contractors and

suppliers

Delayed approval of

drawings and bill of

quantities for

construction

Unexpected weather

conditions

Many provisional

sums and prime cost

Inadequate duration

for inspection

Unavailability of

equipments on

request

Duration is not

enough for

constructing the

project

Experience of staff

in management and

technical inspection

Incompetent

contractor staff

Irregular payments

and disturbed cash

flow of main

contractor

Delay in submittal

and approval

Poor planning,

scheduling or

resource management

32

Routine of

government

authorities and

approvals

Poor communication

between consultant

staff

Poor quality control

Irregular attending

of weekly meetings

Poor quality control Congested

construction site

Source: Ren et al. (2008)

The above is a good attempt at classifying the causes of

delays but this omits another important category of causes

from this list. This is the external factor category which

is not caused by the parties to the contracts as seen above

in the table.

Ahmed et al. (2003) came up with a classification that is

more conclusive in content than Ren et al (2008). This may

be because their focus was on excusable delays with

compensation and non excusable days. Ahmed et al. in their

earlier work in 1995 also towed along a similar

categorisation but they added the external factors in their

latest work. This has been illustrated in the diagram below:

33

Figure 3: Classification of Delay Factors

Ahmed et al. (2003) begin with the classification into

internal and external factors of delay causes. The internal

factors have been explained earlier under the client,

consultant and contractor classification. The external

factors are those that do not arise from the actions and

inactions of parties to the construction contract. They

include acts of God, shortage of materials from suppliers,

government actions, labour unrest and stakeholders’

dissatisfaction just to mention a few.

34

Delay FactorsInternal FactorsContractor RelatedConsultant RelatedClient RelatedExternal FactorsActs of God, Government Laws, Economic Conditions, etc.

2.3 IMPACT OF CONSTRUCTION DELAYS

The effect of construction delays carries a rippling effect

on the contracting parties and the citizens in an economy.

Unlike the causes that may have some geographical

restrictions, the impact is universal in nature. In the

survey conducted by Sambasivan and Scon (2007), they ranked

the feedback from the respondents in terms of the frequency

of responses received for individual effects identified. It

turned out that all the respondents chose time and cost

overrun giving it the highest ranking.

Cost overrun will be the cost in excess of the estimated

project cost. This excess cost is an inconvenience to the

parties to the construction project. In the case of

government, tax payers’ are not getting value for money as a

result of the cost overrun. Similarly for the contractors,

they experience abnormal losses and sometimes a cash flow

crisis. To the consultants, it remains a dent in their

reputation as clients lose confidence in their execution

plan (Mbachu and Nkado, 2004).

35

Time overrun also looks at the excess time beyond the

estimated project completion date. Since these construction

projects are often financed with loans, time overrun

increases the finance cost of the client or contractor. Ameh

and Osegbo (2011) in their study on the relationship between

time overrun and productivity, observed a significant

negative relationship between the two variables. This shows

the effect time overrun can have on the labour force. There

is also the findings of Sambasivan and Soon (2007) which

reveals that there is a correlation between cost overrun and

time overrun (showing a correlation coefficient = 0.487,

significant at 0.01 level of significance).

Delays in construction projects may lead to disputes between

stakeholders to the project. Irrespective of which party’s

negligence that results in the dispute, if not handled

tactfully, it can lead to arbitration or litigation. A

dispute can be a very expensive situation to deal with. The

direct impacts may include hiring of attorneys, expert

witnesses and damage settlements whereas the indirect

impacts may include opportunity costs of dispute resolution,36

assigning company resources to the dispute and lost business

relationships. Experts have estimated the expenditures in

construction disputes and litigations in the United States

to have increased by an average of 10% over the last decade

with a total annual value of $5 billion (Michel 1998, Pena-

Mora, Sosa and McCone 2003).

Another effect of construction delays is the total

abandonment of projects. Delays in construction projects can

lead to the parties abandoning the project entirely. If a

construction project gets abandoned, it reduces employment

opportunities, slows down economic activities, government

loses revenue and foreign investors get deterred from

funding construction projects in the economy. Aside these,

there is a serious damage to the reputation of the parties

to the construction contract.

Construction delays lead to arbitrations among the parties

concerned. Arbitration is an incremental cost to the

construction for which no money has been set aside for. For

disputes handled by the American Arbitration Association

37

(AAA), the initial processing fee charged ranges from $750

for claims less than $10,000 to more than $10,000 for claims

over $5 million but less than $10 million. This excludes

administrative fees, professional fees and expenses of the

arbitrators.

Just like arbitration, the cost of litigation in terms of

time and money can be overwhelming often times. Huge amount

of monies can be claimed in damage settlements, licences can

be revoked and several other sanctions could also apply.

2.4 CONCLUSION

In summary, delays in construction projects are a widely

researched area for which more researches are constantly

being carried out. Due to the wide coverage of construction

projects in terms of size, type, geography and so on, there

is still the need to investigate the causes and assess the

effect of delays on various construction projects at various

levels. This may eventually lead to the much needed

development in the industry. For this reason, this

researcher sought to analyse the construction of government

38

road projects in Ghana to address the inefficiencies in the

system and prescribe some solutions to mitigate them.

39

CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

For an extensive analysis of delays in government road

construction projects in Ghana, there is the need to look at

the best approach to adopt for such a study. For that

matter, this research took an inclusive approach in the data

collection to obtain both primary and secondary data for the

analyses. The primary data source was main focus of the

analysis whereas the secondary data source was relied on to

augment the former. For the primary data collection, a

questionnaire was designed and distributed to the targeted

respondents as selected in the sample whereas the findings

of other research works and periodicals were referred to for

the secondary data. Also, qualitative and quantitative

techniques were employed in the data analyses. This research

has more qualitative issues than quantitative however, the

good blend of the two techniques ensured improved quality of

the analyses. The qualitative issues covered the causes of

40

delays, the impact of delays and the way forward in dealing

with issues of delays in government road construction

projects. These qualitative issues were presented in

quantitative forms using tables, graphs and figures to

interpret them effectively.

3.1 RESEARCH QUESTIONS

This research sought to explore the following issues;

What are the major causes of delays in government road

construction projects?

How do these delays affect the stakeholders identified?

What is the way forward?

3.2 METHODOLOGY

To successfully analyse the delays in government

construction projects, one has to first understand the

causes of these delays and their resultant effect. One of

the most appropriate ways to possibly carry out this task is

to put together the opinions of all the stakeholders in the

government construction industry (that is, the client, the

consultants and the contractors). Their opinions on the

41

causes and effects of the delays were ranked in order of

importance using the Relative Importance Index technique. A

similar approach was adopted by Kometa et al (1995) in their

assessment of the various causes and effects of delays. The

responses on the causes of delay were measured on a four

point scale starting from 1 (Very Low) to 5 (Very High). The

Relative Importance Indices (RII) is computed as follows;

RII=∑ WA∗N

Where,

W is the weighting given to each factor by the

respondents starting from 1 to 5,

A is the highest weight in the scale which is 5,

N is the total number of respondents (which is 45

people).

The RII is the yard stick that was used to rank the

identified causes and effects of delays as seen several

literatures. The respective RIIs perceived by the

respondents was used to judge the overall rankings to give a42

better view of the big picture of causes and effects of

delays in the construction industry of Ghana.

3.3 POPULATION

Research data collection becomes a mere mirage when a

researcher attempts to collate the data from an infinite

population. This is so because to every research there are

some constraints that will inhibit the scope of the study

and the most popular are time and financial constraints.

However, in order to successfully carry out a study of this

nature the researcher has to apply sampling techniques to

the data collection method. The choice of an appropriate

sampling technique is critical to the quality of the final

outcome of the study. The population for this study

consisted of delayed government highway road construction

projects which were due for completion in the year 2012 but

were not completed in that year. Some of them may have been

completed by the time of this research whereas others may

still be pending. Highway road construction projects

constitute about 33% of all the government road construction

projects in Ghana. It can be confirmed that about 99% of all43

government road construction projects have experienced

delays. This makes the population homogenous and as such the

random sampling technique was used to select the sample.

This eliminates the possibility of subjectivity in the

choice of sample selection. Again, since this is a

government project, the client (which is the government) was

represented by the government official who has oversight

over the respective road projects. Therefore the number of

clients was the same as the number of road construction

projects selected as sample. Likewise for the consultants

and the contractors, the figures would be similar to the

number of construction projects being considered for this

study. Although there are instances where a construction

project can have more than contractor and/or consultant, if

the respondent is an experienced individual in the

construction business, he or she will be conversant with the

issues delays irrespective of his or her position as a

contractor or consultant.

44

Based on the above explanations for the choice of sample

size, the researcher settled on 40 stakeholders who have

engaged in government construction projects that were due

for completion in 2012. The makeup of this number consisted

of 6 project consultants, 23 project contractors and 11

project subcontractors. This number was chosen purposely for

effective follow up of responses and also because of the

time and financial constraints pointed out earlier. Due to

the homogenous nature of the sample any simple size above

what has been selected will yield significantly the same

results. There is therefore no need to consider higher

numbers for the sample size as is the case in other types of

research methodologies. Basically, 5 government road

construction projects were considered, out of which these

number of respondents were drawn from. Each construction

project contains a number of experts in the team of the

consulting company, the team of the contractor and the team

of the subcontractor. These are the people the researcher

relied on to obtain the responses needed to answer the

research question and fulfil the research objective.

45

3.4 DATA COLLECTION

Two main channels were employed to source for data for this

study. For the primary data gathered, the questionnaire was

the conduit for the data collection whereas other research

materials and periodicals were considered for the secondary

data collection. The reliance on such secondary data was to

add to the quality of the data obtained from the primary

source and to provide a comparative view as well. Priority

was however given to the primary data since they contained

the facts on the ground. The questionnaire was designed by

taking into consideration the research objectives and

research questions discussed in Chapter 1 of this paper.

Attached to this work in Appendix A is a copy of the full

questionnaire.

3.5 Ethical Issues

Respondents are very particular about the protection of

their identity when giving out information for a research

work. In order to assure the respondents of the

confidentiality of the information given out, the researcher

46

brought to the attention of the respondents, their rights

with regards to the provision of data for the survey and

also assured them of protecting their identity and any other

sensitive information. Respondents were made to understand

that their involvement in the study was not mandatory and

that they could choose to pull out from the study at any

point in time if they so wish. To ensure that we got

accurate responses from the respondents, the researcher also

explained the purpose of the study to them as well as the

meanings of the questions contained in the questionnaire.

3.6 Data Analysis

The core objective of data analysis is to find solutions to

the research problems stated in the first chapter. The

responses gathered from the questionnaires obtained aided

the researcher to identify the major causes of delays in

government construction projects, the roles of the major

stakeholders in relation to project delays and the effect of

delays on the economy. Statistical Package for Social

47

Sciences (SPSS) version 20 was used in analysing and coding

the data. The outcome from the data analysis was ranked

based on the Relative Importance Index (RII) as explained

earlier. Microsoft excel was also used to demonstrate the

data analysis in graphical and chart representations.

48

CHAPTER FOUR

DATA ANALYSIS AND DISCUSSION OF RESULTS

4.0 INTRODUCTION

This chapter discusses the outcome of data collected from

the various respondents in the construction field. The

development of a framework within which the analysis of the

data can be carried out is also considered. The perspective

drawn from the practioners in the construction industry was

also used in this chapter to answer the research problem

identified in the earlier chapters. The analysis was done

along the lines of the perceived views of stakeholders in

the construction industry on the factors that lead to delays

in government construction projects and the effects. The

group of factors identified included contractor related

factors, consultant related factors, design related factors,

client related factors among others. The perceptions of the

stakeholders were ranked using Relative Importance Index

(RII) technique in order to ascertain which factors were

more in tune with the issues being discussed. This technique

49

makes use of quantitative analysis, however, some

qualitative aspects were introduced where necessary. Due to

the simplicity and clarity of the questionnaire circulated

coupled with the personal follow up, a 100% response rate

was achieved. Results of the data collected were analysed

with the aid of graphs, charts and tables. The following

paragraphs contain the details of the results.

4.1 BACKGROUND INFORMATION OF RESPONDENTS

It is important to start with the demographic information of

the construction companies that the respondents represent.

This gives an indication of their experience and their

capacity to undertake government road construction projects

to completion. As far as the sample is concerned, 5

government road construction projects were chosen randomly

from the list of government road projects expected to be

completed in 2012. From these five government construction

projects, the three stakeholders being considered have been

engaged in the construction business for a significant

number of years as shown in the graph below.

50

Figure 4: Years of Operation

<5yrs 5 - 10yrs

11-15yrs

>15 yrs0

0.5

1

1.5

2

2.5

3

3.5

4

ContractorsSubcontractorsConsultants

For the contractors, 4 of them have been working in the

construction business for over 15 years now whereas the

subcontractors average between 11 to 15 years. With

consultants, most of them have been working in the industry

within 5 to 15 years with only one having over 15 years of

experience in the industry. Having such a rich working

experience in the construction industry to a great extent

implies they know a lot about the industry and what the

issues on the ground are. They are therefore in the best

position to identify the causes of delays in government

construction projects which is the reason for this study.

51

The questionnaire further enquired about the type of

construction project, the completion date of the project as

stipulated in the contract, the actual date completed and

for those still pending, the expected completion date. Table

4 presents a summary of the responses obtained on those

issues.

Table 4: Construction Project and Completion Period

Name of construction

project

Completion date

per the contract

Actual

date

complete

d

Expected

Completion

date

Construction of Ho - Fume

Roads

(km 7-28.7)

15th May, 2008

(18 months)

07/06/20

12

Upgrading of Ho - Adidome

roads Lot 3 (km 37.2 -

52.2)

15th March, 2011

(9 months)

Not yet When

certificates

are honoured

Upgrading of Ho - Adidome

roads Lot 2 (km 52.2 - 67)

15th March, 2011

(9 months)

Not yet When

certificates

are honoured

Dualization of Achimota -

Ofankor road (5.7km)

15th November,

2009 (36 months)

25/09/

2012

Upgrading of Ho - Adidome

roads Lot 1(km 67.9 -

79.8)

15th March, 2011

(9 months)

Not yet Unknown

52

The construction of the Ho – Fume roads which spans

approximately 21.7 kilometres which started on 15th

December, 2006 with the duration of 18 months was actually

completed on 7th June, 2012. This project was completed 4

years after the contracted completion date. The upgrading of

the Ho – Adidome roads Lot 3 which spans approximately 15

kilometres with an expected completion date of 15th March,

2011 also suffered delay. The upgrading project which

started 15th June, 2010 and was supposed to be completed

over a period of 9 months has still not been completed as at

the time of this study. The contractor indicated that the

project will be completed when the certificates are

honoured. Another upgrading project of the Ho – Adidome road

Lot 2 which covers 14.8 kilometres still remains uncompleted

to date (as at the time of this study). This second Lot has

the same time frame as the Lot 3. Though all the three Lots

under the Ho – Adidome road have been allocated to different

contractors, the second and third Lots have similar

challenges. The contractor handling the Lot 2 also confirmed

that expected completion date is dependent on the date when

53

the contract certificate will be honoured but the contractor

in charge of Lot 1 could not confirm when he would complete

his allocation.

The main reason given for the cause of the delay for the

above mentioned projects was the delay in payment by

government with the exception of the upgrading of Ho –

Adidome road Lot 1. The Lot 1 according to the data gathered

on the field had experienced delay because of managerial

incompetence. Other reasons cited by the respondents for the

delay of the above projects apart from Lot 1 include the

following:

Ground variation: the route had a clayed and muddy terrain

which required massive excavation and filling with

boulders before work could be carried out. This was not

taken into account as at the time of the contract and

therefore was not included in assessing the duration of

the project at the initial planning of the contract.

Redesign or Change in Scope: This is the situation where the

client (government) changes the design of the

54

construction project at any point in the execution of

the project. For instance changing a single lane road

to a dual carriage road. This usually comes at a

substantial cost which is usually borne by the client

(government).

Alteration: This is a situation where the client

(government) makes minor changes to the construction

project. This could be a minor change in the dimension

of the project as in the case of reducing the height of

the retaining wall of the road. The costs associated

with alterations are very minimal as compared to that

of the change in scope or redesign.

So as per the responses obtained, the delay in the

completion of the Ho – Fume road, the Ho – Adidome Lot 3 and

Lot 2, aside the delay in payment by the government, were

also partially caused by ground variations and alterations.

As for the Achimota – Ofankor road, it included a later

change in the scope of the construction project and the

other two former two factors.

55

4.2 FACTORS CAUSING DELAY

The analysis of the factors causing delay in government

construction projects was conducted based on the groups of

causes discussed earlier on in the literature review. These

groups of causes have been ranked based on their significant

influence towards government construction project delays.

The Relative Importance Index (RII) approach was employed in

ranking the group factors. A detailed description of the

formula can be seen in the chapter three of this study.

56

4.2.1. Consultant Related Factors

Table 5: Consultant Related Factors Results

Groupof

factors

Rank

Factors causingschedule delays

VeryHigh High

Medium Low

veryLow

RII

Consultant

relatedfactors

1

Inadequate projectmanagement assistance 2 9 29 0 0

0.67

2

Poor communicationand coordination with other parties 4 8 23 5 0

0.66

3Inaccurate site investigation 0 0 40 0 0

0.60

4

Lateness in reviewing and approving design documents 0 0 40 0 0

0.60

5

Delay in approving major changes in the scope of work by consultant 0 0 27 13 0

0.54

6

Delay in performinginspection and testing 0 0 16 24 0

0.48

7

Lack of experience of consultant in construction projects 0 0 11 23 6

0.43

8

Conflicts between consultant and design engineer 0 0 0 24 0

0.24

Table 5 above depicts the results of the survey analysis

based on the Relative Importance Index. This represents the

views of the respondents on the consultant related factors

that lead to delays in government construction projects.

57

Most important factor identified by the respondents is the

inadequate project management assistance. A breakdown of the

results can be seen in Figure 5 below. For the consultants’

responses, all 6 of them rated the importance of the highest

ranking factor in the above category as medium. The

contractors also had differing opinions as 5 of them rated

this factor as “high” whereas the remaining 18 sided with

the consultants’ ratings, medium. The subcontractors also

had a similar dilemma where 2 rated this factor as “high”

with the other 9 also rating it as medium. In all, 33 of the

respondents rated the importance of this factor as medium

whereas 7 rated it as high. It can be seen that, the

respondents consider the support provided by the consultants

in managing the construction project is not up to

expectation. This shows how vital the role of consultants in

government construction projects is. They need to understand

clearly what function they are expected to undertake for

which the appropriate resources should be made available to

them in order to ensure they can work effectively. This may

help avoid causing delays to the construction project.

58

Figure 5: Responses per Stakeholder (Consultant Related Factors)

Very High

High Medium Low very Low

024681012141618

consultantcontractorsubcontractor

4.2.2. Contractor Related Factors

The next category under the causes of delay is the

contractor related factors. For contractor related factors,

the most important factor that received the highest rank was

that of inadequate cash flow due to non payment. This has to

do with the financial status of the contractor which is

usually dependent on the government paying for the

certificates that have been presented by the contractor.

Usually some government contract jobs require that the

contractor should have the capacity to pre-finance the

project. That notwithstanding, the contractor usually goes

to borrow from a financial institution to pre-finance the

59

project with the hope that payments will be prompt so that

the financing cost would be minimal. When payments are not

forthcoming, the contractor then uses the money available to

pay off the financial institution at the expense of buying

materials and other logistics to get the job done. This then

drags the work past the completion date and sometimes it

never gets done. All the 40 respondents ranked this factor

as very high which means that it is a very important factor

within this category. This means that as long as the

contractor is beset with cash flow problems, the

construction project will suffer delay.

Table 6: Contractor Related Factors

Group of factors

Rank

Factors causing scheduledelays

Very

High

High

Medium

Low

veryLow

RII

Contractor

relatedfactors

1Inadequate cash flow, due to non payment 40 0 0 0 0 1

2 Inappropriate construction methods 0 17 23 0 00.685

3 Incompetent project team 0 2 29 8 10.56

4 Ineffective project planning and scheduling 0 0 32 8 0

0.56

5 Obsolete technology 0 0 32 8 00.56

6 Poor site management and supervision 0 0 32 8 0 0.56

60

7 Inadequate contractor experience 0 0 33 3 40.545

8 Rework due to errors 0 0 24 16 00.52

9 Unreliable subcontractors 0 0 8 32 00.44

10 Frequent change of subcontractors 0 0 0 34 60.37

11 Poor communication and coordination with other parties 0 0 40 0 0

0.275

The ranking is a unanimous decision by all the stakeholders

and the chart below (Figure 7) gives a breakdown of the

responses per the three stakeholders. From the breakdown,

all 6 consultants, 23 contractors and 11 subcontractors

ranked this cash flow factor as very high. This leaves no

doubt about the seriousness of this factor and it even

overshadows other identified contractor related factors.

Figure 6: Responses per Stakeholder (Contractor Related Factors)

Very High

High Medium Low very Low

024681012141618

consultantcontractorsubcontractor

61

4.2.3. Design Related Factors

The questionnaire identified certain delay factors that are

peculiar to the design of the construction project itself.

These design related factors are known widely in the

construction sector and thus all the stakeholders do have an

idea what they entail and their likely consequences on the

entire construction project.

Table 7: Design Related Factors

Group offactors

Rank Factors causing schedule delays

Very

High

High

Medium

Low

veryLow

RII

Desig

n

relat

ed

facto

rs

1 Design changes by client or his agent during construction 0 20 20 0 0

0.7

2 Mistakes and delays in producing design documents 0 8 32 0 0

0.64

3 Complexity of project design 0 0 40 0 00.6

4 Design errors made by designers 0 0 40 0 00.6

5 Insufficient data collection and survey before design 0 0 40 0 0

0.6

6 Unclear and inadequate details in design drawings 0 0 40 0 0

0.6

7 Poor use of advanced engineering design software 0 0 32 8 0

0.56

8 Misunderstanding of client requirements by design engineer 0 0 16 24 0

0.48

From the responses obtained from the stakeholders, the most

important design related factor as per the ranking is that

62

pertaining to changes in design by the client (government)

or his agent during the execution of the construction

project.

Figure 7: Responses per Stakeholder (Design Related Factors)

Very High

High Medium Low very Low

024681012141618

consultantcontractorsubcontractor

The breakdown of the responses per stakeholder is shown in

the graph above. The highest ranking design related factor

was rated high by all 6 consultants and 11 subcontractors.

However, for the contractors, only 9 of them rated the above

design factor as high. The remaining 14 contractors rated it

as medium.

63

4.2.4. Equipment Related Factors

Another major factor in the construction industry that

carries such great potential to delay any construction

project is the equipment factor. If the right equipments are

not used to execute the work, it does not only affect the

quality of the output but also can delay the completion of

the construction project as more time will be spent in

correcting defects that are identified. From the responses

obtained, the highest ranked equipment related factor is

more than one this time round. There are four of such

factors that have been ranked same by the respondents. These

can be seen in the table below.

Table 8: Equipment Related Factor

Group of factors

Rank

Factors causing scheduledelays

VeryHigh

High Medium Low

veryLow

RII

Equipme

nt

related

factors

1 Inadequate modern equipment   8 32    0.6

2 Low efficiency of equipment   8 32    0.6

3 Equipment allocation problem     40    0.6

4 Improper equipment     40    0.6

5 Frequent equipment breakdowns     24 16   0.

64

5

6 Shortage of equipment     16 24  0.5

7 Slow mobilization of equipment       40  0.4

For the breakdown of the equipment related factors into the

various stakeholders, it was observed that only 6

contractors rated “Low efficiency of equipment” and

“Inadequate modern equipment” as high. The rest of the

contractors together with the consultants and subcontractors

gave a medium rating to these two factors. However, for the

rank 3 and 4, all the respondents rated them as medium.

4.2.5. External Related Factors

Another delay factor category that was captured by the

questionnaire is the external factor. These factors refer to

those circumstances that are outside the control of the

parties to the construction agreement. They span from

economic conditions, the weather, political to disasters.

There were two external factors that had the highest

ratings. They are price fluctuations and delay in

compensation to affected property owners.

65

Table 9: External Related Factors

Group offactors

Rank Factors causing schedule delays

Very

High

High

Medium Low

veryLow

RII

Externalrelated

factors

1 Price fluctuations   40      0.8

2Compensation delays to affected property owners   40      

0.8

3 Unexpected ground conditions (such as soil, high water table)   20 20    

0.7

4 Unfavourable weather conditions   20 20    0.7

5 Delay in providing services from utilities (such as water, electricity)   16 24    

0.7

6 Accidents during construction     24 16  0.5

7 Loss of time by traffic control and restriction at job site     24 16  

0.5

8 Natural disasters (flood, hurricane, earthquake)     24 16  

0.5

9 Problem with the inhabitants of the community     16 24  

0.5

10 Changes in government regulations and laws       40  

0.4

11 Conflict, war, and discontentment from the general public       40  

0.4

12 Delay in obtaining permits from municipality       40  

0.4

13 Delay in performing final inspection andcertification by a third party       40  

0.4

14 Global financial crisis       40  0.4

As per the breakdown of the results into the ratings of the

three stakeholders, all 40 respondents ranked both of the

external factors mentioned earlier as being of high

importance.66

4.2.6. Labour Related Factors

Labour issues were not left since they are very key to

construction projects. For the survey, eight labour related

factors were presented to the respondents to select which

ones they considered important. The respondents chose “Low

motivation and morale of labour” as the most important

factor within that category that contributes to delayed

construction projects. From the 40 responses, 32 of them

rated this factor as medium whereas the remaining 8 rated it

as low.

Table 10: Labour Related Factors

Groupof factors

Rank

Factors causing scheduledelays

VeryHigh

High Medium Low

veryLow

RII

Labourrelatedfactors

1 Low motivation and morale of labour     32 8   0.6

2 Low productivity of labour     24 16   0.5

3 Unqualified / inadequate experienced labour     24 16   0.5

4 Absenteeism     8 32   0.45 Shortage of labour     8 32   0.46 Strike     8 32   0.4

7 Personal conflicts among labour       40   0.4

8 Slow mobilization of labour       40   0.4

67

In the breakdown of the results into the various

stakeholders, aside the contractors, all the consultants and

the subcontractors gave this factor a medium rating. As for

the contractors, 6 of them did not even see this particular

labour factor as an issue that can cause a delay but 14 of

them did. The 14 rated this labour issue as medium where as

the remaining 3 gave it a low rating.

Figure 6: Responses per Stakeholder (Labour Related Factors)

Very High High Medium Low very Low024681012141618

consultantcontractorsubcontractor

4.2.7. Material Related Factors

Construction materials also play a part in the timely

execution of construction projects. Delays in material

supply, erratic movement of material prices, inferior

68

quality of materials and a host of other factors that relate

to construction materials can have an adverse impact on the

completion of the construction project. When asked which

material related factor is significant enough to cause

delays in government construction projects, the respondents

indicated that the escalation of material prices has the

greatest tendency to create delays. In all, 6 of the

respondents rated this factor as very high while the

remaining 34 considered it to be high.

Table 11: Material Related Factor

Group offactors

Rank

Factors causing scheduledelays

VeryHigh

High Medium Low

veryLow

RII

Mater

ial

relat

ed

facto

rs

1 Escalation of material prices 6 34      0.8

2 Changes in material types and specifications during construction     40    

0.6

3 Damage of materials     40    0.6

4 Shortage of construction materials     40    0.6

5 Unreliable suppliers     40    0.6

6 Poor procurement of construction materials     12 23  

0.5

7 Poor quality of construction materials     14 26  

0.5

8 Late delivery of materials     6 34   0.

69

4

9 Delay in manufacturing materials       40  0.4

To further sort out the details of the response according to

the three stakeholders in consideration, 6 out of the 23

contractors rated the factor as very high and they were the

only stakeholders to have given that rating. All the

consultants, subcontractors and the remaining contractors

rated it at high.

Figure 7: Responses per Stakeholder (Material Related Factors)

Very High

High Medium Low very Low

024681012141618

consultantcontractorsubcontractor

4.2.8. Client Related Factors

Much of the construction progress depends on as much on the

actions and inactions of the client just as much as that of

70

the contractor. The client can vary the nature of the

construction project at will and the resulting effect will

come to bear on the entire project. If the client sticks to

the terms and conditions as stated in the contract that has

been agreed upon by all parties, there will be little

disruptions to the construction project plan. The

disruptions that the client can cause the project as

identified by the researcher include payment delays, poor

communication and coordination with other parties, slow

decision making process, poor feasibility study, among

others. The responses obtained revealed that delay in

payment by the client is the most prominent cause of delay

within the client related factor category.

71

Table 12: Client Related Factors

Groupof factors

Rank Factors causing schedule delays

VeryHigh High

Medium Low

veryLow

RII

Clien

t

relat

ed

facto

rs

1 Delay in payments 34     6  0.9

2 Improper project feasibility study   17 23    0.7

3 Lack of incentives for contractor to finish ahead of schedule   22 6 12  

0.7

4 Delay in approving design documents     40    0.6

5 Delay in site possession     40    0.6

6 Poor communication and coordination with other parties     40    

0.6

7 Slowness in decision making     34 6  0.6

8 Lack of capable representative     28 12  0.5

9 Change orders       40  0.4

10 Conflicts between joint-ownership       40  0.4

11 Suspension of work by client       40  0.4

12 Lack of experience of client in construction projects       6  

0.1

With a Relative Importance Index of 0.9 resulting from 34

very high and 6 low, client’s delay in paying contractors,

consultants and subcontractors leads to the project not

being completed on time. For the breakdown analysis, aside 5

contractors who rated this factor as low, all the

72

consultants, subcontractors and other remaining consultants

rated it as very high.

Figure 8: Responses per Stakeholder (Client Related Factors)

Very High

High Medium Low very Low

024681012141618

consultantcontractorsubcontractor

4.2.9. Project Related Factors

The last factor considered in the survey that has the

tendency to cause delays in government road construction

projects is the project related factors. For this category,

6 commonly known causes were presented to the respondents to

solicit their opinions on. Two of the factors had the same

RII which makes them the highest ranked causes. They are

ineffective delay penalties and unfavourable contract

clauses. All the respondents rated them as being of medium

importance.

73

Table 13: Project Related Factors

Group offactors

Rank

Factors causing scheduledelays

VeryHigh

High

Medium Low

veryLow

RII

Proj

ect

rela

ted

fact

ors

1 Ineffective delay penalties     40    0.6

2 Unfavourable contract clauses     40    0.6

3 Legal disputes between project participants     12 28  

0.5

4 Inadequate definition of substantial completion     11 29  

0.5

5 Complexity of the project     6 34  0.4

6 Original contract duration is short     6 34  

0.4

4.2.10. Overall Ranking of Factors that Cause Delays

From the list of factors that cause delays in government

construction projects discussed above, an overall ranking of

these factors was done to ascertain which of them are

pervasive in terms of their prominence. Below is a list of

the top 20 factors identified by respondents. The full list

of the overall ranking can be found in Appendix B below.

Overall, financial factors have made it to the top 5 causes

of delays in government construction projects.

Table 14: Top 20 Factors of Delay Causes

Ran Factors causing schedule delays Ver Hig Mediu Low ver RI74

k

yHigh h m

yLow I

1Inadequate cash flow, due to non payment 40 0 0 0 0 1

2 Delay in payments 34     6  0.9

1

3 Escalation of material prices 8 32      0.8

44 Price fluctuations   40       0.8

5Compensation delays to affected property owners   40       0.8

6 Design changes by client or his agentduring construction 0 20 20 0 0 0.7

7 Unexpected ground conditions (such assoil, hw table)   20 20     0.7

8 Unfavourable weather conditions   20 20     0.7

9 Inappropriate construction methods 0 17 23 0 00.685

10 Improper project feasibility study   17 23    0.685

11 Delay in providing services from utilities (such as water, electricity)   16 24    

0.68

12 Inadequate project management assistance 2 9 29 0 0

0.67

13 Poor communication and coordination with other parties 4 8 23 5 0

0.66

14 Lack of incentives for contractor to finish ahead of schedule   22 6 12  

0.65

15 Mistakes and delays in producing design documents 0 8 32 0 0

0.64

16 Inadequate modern equipment   8 32    0.6

4

17 Low efficiency of equipment   8 32    0.6

4

18 Inaccurate site investigation 0 0 40 0 0

0.60

19 Lateness in reviewing and approving design documents 0 0 40 0 0

0.60

75

20 Complexity of project design 0 0 40 0 0 0.6

4.3 EFFECTS OF CONSTRUCTION DELAYS

The questionnaire went on further sought to find out about

the effects of these construction delays identified in the

study. The main effects of delays mentioned in the

questionnaire are time overrun, cost overrun, dispute,

litigation, arbitration and total abandonment. These effects

were picked from the literatures reviewed in the second

chapter of this study. Below is the summary of the findings

on the effect of delays as perceived by the respondents.

Cost overrun and time overrun are the most pervasive effects

of construction delays in government road projects. Though

the other 4 effects are also experienced but they are rare

as compared to the first two.

Table 15: Effects of Construction Delays

Effects of delays Extreme

Great Moderate

Little

VeryLittle

RII

Time overrun 40         1Cost overrun 40         1Dispute       40   0.4Arbitration       40   0.4

76

Litigation       40   0.4Total abandonment       40   0.4

Finally, the researcher conducted an interview on the

effects of road construction delays in the surrounding

communities where these construction projects were carried

out. For the five projects considered, five community

residents from each of the five construction locations were

interviewed to find have an idea of their sentiments about

the impact of these delays on their community. From the

interview, the researcher gathered from these 25

interviewees indicated that their primary concern was on

the health and environmental impact that these prolonged

projects had on them. During the execution of the projects,

the dust from the construction site engulfs the community

and motorists who ply that route worsen it by leaving a

dusty trail behind. They also made mention of the fact that

when construction projects are delayed, they leave the road

worse off than it was previously. This makes it hard for

vehicles to use the road and it affects their economic

livelihood as commercial vehicles do not want to provide

77

services to the community or those who are willing to, do

so at a high price. Again, they added that these delayed

projects pollute their water bodies and make them unsafe to

drink. Artificial ponds created by the road sides due to

the road construction also breed mosquitoes. Delayed road

projects increases road accidents and car breakdowns. This

highlights a few of the most recurrent sentiments drawn

from the residents interviewed.

4.4 CONCLUSION

This chapter discussed the results of the data collected

through the distributed questionnaires. The analyses of the

results were carried out based on the chosen methodology for

this study. Data on the background of the respondents were

considered in the initial stages of the analysis. This was

followed by the presentation of the major factors of delay

as identified in existing literatures which the researcher

has examined thoroughly. The responses on the major factors

causing delay were ranked in order of importance from the

perspective of the consultants, contractors and

78

subcontractors. Finally the effects of delays were also

analysed and the responses were ranked.

79

CHAPTER FIVE

FINDINGS, RECOMMENDATION AND CONCLUSION

5.1 INTRODUCTION

This research work has been carried out to understand and

identify why government road construction projects have been

experiencing delays over a long period of time. In order to

achieve this, the researcher identified the major causes of

delays and categorised them under several factors as

proposed by Theodore (2009) and ranked the responses

obtained. This chapter focuses on the findings of the study,

the conclusion drawn based on the analyses and some

recommendations for the challenges identified.

5.2 FINDINGS

The study focused much on the factors that cause delays in

government construction projects. In answering the research

questions, the causes of delay were grouped into nine major

delay factors. Responses were then arranged in order of

importance using the Relative Importance Index. From the

data analysis, the major causes of delays in government

80

construction projects have been identified, the roles of the

various stakeholders in relation to the delays have also

been identified and the effects these delays on the economy.

On the major causes of the delays in the Ghanaian

construction industry, a summary of the top 20 factors have

been displayed in table 14 above. The top 5 factors are all

financially related. The highest ranking cause of delay is

the inadequate cash flow due to non payment. Since

government is the main client in this study, all funds

needed to undertake the project smoothly according to the

scheduled completion is dependent on the government’s

ability to make funds available for the project execution.

Without the funds, any delay in the construction project is

excusable. Additionally, price fluctuations also affect the

project flow. Price fluctuations adversely affect the

project budget and make it difficult for the work to carry

on. Additional funding will then have to be sourced by

government before the project can progress. In short, the

top 5 causes of project delays lead to excusable delays.

81

These factors accounts for the reason why all government

construction projects are always completed later than

scheduled.

In relation to the roles of the various stakeholders in the

delay process, the study gathered data on client related

factors, consultant related factors and contractor related

factors. This gave a good indication on how these identified

stakeholders also contribute to the delays in government

construction projects. As mentioned earlier, for the role of

the client, it has everything to do with the availability of

funding. If the client can ensure that the project is

carried out in line with the budget, there is the

possibility of the other players completing the work on

time. Hence, any delays that may arise will then be non-

excusable delay which could attract some compensation. For

the contractor’s role, aside the overlapping problem of non

payment by government, issues such as inappropriate

construction methods, incompetent project team, ineffective

project planning and scheduling as well as the use of

82

obsolete technology were identified. So if the government

makes funding readily available for the project, the

contractor in turn will have to plan the effectively and

select competent people to carry out the work. This way, non

excusable delays would be avoided. Finally, with the

consultants, inadequate project management assistance, poor

communication and coordination with other parties,

inaccurate site investigation, lateness in reviewing and

approving design documents and delay in approving major

changes in the scope of work were among the delay factors

attributed to them. These delays from the consultant is also

non excusable and can be avoided if the consultant works

hand-in-hand with the contractor and the client to ensure

that both parties agree on what should be done, how it

should be done and when it should be done.

On the effects of delays, all the respondents agreed on the

time and cost overrun effects. This shows the adverse

financial impact that delays have on the economy of Ghana.

When projects go past the completion time, the budget

83

initially allocated for the project will have to be revised

to take into consideration the inflationary effect and other

environmental changes as well. The inconvenience to road

users and the traffic impact also add to the cost overrun.

For instance, it will take for motorist to move from point A

to point B will be more than usual, not to talk of the wear

and tear on vehicles, road accidents and other harmful

impact on the citizens. When the construction projects are

delayed, an extension of time will be required to complete

the project. This is mostly applicable in the case of

excusable delays.

5.3 CONCLUSION

From the findings of this study, government road

construction project delays have resulted mainly due to

government’s failure to pay contractors, consultants and

subcontractors on time. This has led to excusable delays

without compensation as can be seen in the responses from

the survey. Out of the 5 government construction projects

considered in the survey, none of them has been completed on

84

schedule. The time overrun increased from 125 to 300%. Only

two projects have been completed as at the date of this

research whereas the remaining three are yet to be

completed. Two out of the three roads that are pending will

only be completed when government makes funding available.

It is over two years since the scheduled completion date,

but as is the case with most government road construction

projects, it will not be totally abandoned but will be

continued but with the cost overrun effect. The direct cost

overrun ranges between 75 – 200%. These cost overruns can

easily be used in executing additional project for

accelerated development of the nation. The indirect cost

effects due to delays in project execution are enormous.

Delays cause bad roads to deteriorate further posing danger

to motorists and causing accidents on the roads leading to

loss of lives and properties. Vehicles plying these

uncompleted road projects continue to suffer frequent

breakdowns of vehicles. These parts have to be replaced

through importation putting unbearable pressure on the local

currency. Towns, villages, and communities along road

85

projects corridor, turn to suffer health hazards such as

inhaling polluted dusty air, drying-up and pollution of

their sources of drinking water. Artificial ponds created by

road sides in towns and villages due to road construction

activities, provides breeding grounds for mosquitoes, thus

resulting in malaria. These health problems in the long run

do have economic implications for the country. It may cost

the government almost the same amount, if not more, to

complete these projects.

5.4 RECOMMENDATION

In the light of all factors that have been identified as

causes of delays of road construction projects, the

followings have been recommended to reduce delays in project

execution, if not to eliminate the delays as much as

possible.

(A) Non payment of project certificates on time by the

client (Government) was identified as the single most

important factor causing the delay of road construction

project. This problem may be mainly due to inadequate

86

budgeting and funding before road projects are awarded. The

government should therefore, budget and award projects that

its funds can support within a particular period of time.

This is to say “government should cut its coat according to

its size”.

(B) Another important factor identified in the survey is

the contribution of consultants in the delay of project

execution. Consultants should improve upon their project

packaging to avoid excessive issuing of variation orders as

the project progresses. Poor feasibility studies, bad

designs, inadequate contract documentation, can lead to

increase in scope of work and alterations which are all

sources of delays.

(C) Contractors who are key partners in project execution

must also improve on their management capacities through

training to execute projects on time. They must support

their employees, by providing resources for effective

project management to take place on their respective

project sites.

87

(D) Delays in payment by the client have become almost a

norm in Ghana Government projects. Insurance companies can

take this as a potential risk and package a product to suit

the situation. It is the believe of the writer that, these

insurance policies can take care of the non payment issues

to guarantee contractors’ cash flow for timely project

delivery.

(E) The communities, ordinary citizens could put pressure

on government to demand accountability and value for money

for all government construction projects. There is the

probability that these demands may force government to

initiate projects through proper budgeting and funding

contribution to project execution delays.

88

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APPENDIX A

QUESTIONNAIRE COVER LETTER

Dear Sir/Madam,

I am a student of Ghana Telecom University College and I am

currently undertaking my Masters dissertation, which critically

analyses delays in government road construction projects in

Ghana. The aim of my dissertation is to be able to answer the

following question: ‘

What are the major causes of delays in government

construction projects?

How do these delays affect the stakeholders identified?

What is the way forward?

I am confident that your input will go a long way to help achieve

my research goal since the issues concerned are within your

ambit. For the purposes of my dissertation, all information

provided will be handled with utmost confidentiality. I would be

most grateful if you could take some few minutes to fill in the

questionnaire attached to this letter.

94

If you would like, I would be more than happy to send you a short

summary of my dissertation including the questionnaire findings,

when it is completed in August.

Thank you for your help.

Yours Sincerely

JOHN KWABLA GOMELESIO

95

DELAY IN GOVERNMENT CONSTRUCTION PROJECT

QUESTIONNAIRE

BACKGROUND INFORMATION ABOUT THE RESPONDENT

1. Name of company :

.....................................................................................................................................................

2. Location:

.....................................................................................................................................................

3. How many years has your company been engaged in the construction business?

(a) <5yrs [ ] (b) 5 – 10yrs [ ] (c) 11 – 15 yrs [ ] (d) >15yrs [ ]

4. Is your company operating outside Ghana? :

Yes [ ] No [ ] If yes, state where (place)...........................................

.....................................................................................................................................................

5. What role does your company play in the construction business?

(a) Client [ ] (b) Consultant [ ] (c) Contractor [ ] (d) Sub-contractor [ ]

6. What was the project name that your company undertook?

……………………………………………………………………………………………………………………………………….

96

7. What was the expected completion date (duration/period) as per contract?

……………………………………………………………………………………………………………………………………….

8. When was the project actually completed?

…………………………………………………………………………………………………………………………………….

(i) If not completed yet, when will it be completed? When fundsare available

.....................................................................................................................................................

Please tick (√) where appropriate

Factors Causing Delays in the Construction Industry.

Group of factors

No. Factors causing schedule delays

VeryHigh

High

Medium Low

Very Low

Consult

ant

related

factors

1Lack of experience of consultant in construction projects

2Conflicts between consultant and designengineer

3Delay in approving major changes in thescope of work by consultant

4 Delay in performing inspection and testing

97

5 Inaccurate site investigation

6 Inadequate project management assistance

7 Late in reviewing and approving designdocuments

8 Poor communication and coordination with other parties

Contrac

tor

related

factors

1 Frequent change of subcontractors

2 Inadequate contractor experience

3 Inappropriate construction methods

4 Incompetent project team

5 Ineffective project planning and scheduling

6 Obsolete technology

7 Poor communication and coordination with other parties

8 Poor site management and supervision

9 Rework due to errors

10 Unreliable subcontractors

11Inadequate cash flow, due to non payment

Design

related

factors

1 Complexity of project design

2 Design changes by client or his agent during construction

3 Design errors made by designers

4 Insufficient data collection and survey before design

5 Mistakes and delays in producing design documents

6 Misunderstanding of client

98

requirements by design engineer

7 Poor use of advanced engineering design software

8 Unclear and inadequate details in design drawings

Equipme

nt

related

factors

1 Equipment allocation problem

2 Frequent equipment breakdowns

3 Improper equipment

4 Inadequate modern equipment

5 Low efficiency of equipment

6 Shortage of equipment

7 Slow mobilization of equipment

Externa

l

related

factors

1 Accidents during construction

2 Changes in government regulations and laws

3 Conflict, war, and discontentment fromthe general public

4 Delay in obtaining permits from municipality

5 Delay in performing final inspection and certification by a third party

6 Delay in providing services from utilities (such as water, electricity)

7 Global financial crisis

8 Loss of time by traffic control and restriction at job site

9 Natural disasters (flood, hurricane, earthquake)

10 Price fluctuations

11 Problem with the inhabitants of the

99

community

12Compensation delays to affected property owners

13 Unexpected ground conditions (such as soil, high water table)

14 Unfavourable weather conditions

Labour

related

factors

1 Absenteeism

2 Low motivation and morale of labour

3 Low productivity of labour

4 Personal conflicts among labour

5 Shortage of labour

6 Slow mobilization of labour

7 Strike

8 Unqualified / inadequate experienced labour

Materia

l

related

factors

1 Changes in material types and specifications during construction

2 Damage of materials

3 Delay in manufacturing materials

4 Escalation of material prices

5 Late delivery of materials

6 Poor procurement of construction materials

7 Poor quality of construction materials

8 Shortage of construction materials

9 Unreliable suppliers

Client 1 Change orders

100

related

factors

2 Conflicts between joint-ownership

3 Delay in approving design documents

4 Delay in payments

5 Delay in site possession

6 Improper project feasibility study

7 Lack of capable representative

8 Lack of experience of client in construction projects

9 Lack of incentives for contractor to finish ahead of schedule

10 Poor communication and coordination with other parties

11 Slowness in decision making

12 Suspension of work by client

Project

related

factors

1 Complexity of the project

2 Inadequate definition of substantial completion

3 Ineffective delay penalties

4 Legal disputes between project participants

5 Original contract duration is short

6 Unfavourable contract clauses

Effects of delays in construction industry

Effects of delays Extre

me

Grea

t

Modera

te

Litt

le

Very

Little

101

Time overrun

Cost overrun

Dispute

Arbitration

Litigation

Total abandonment

102

APPENDIX B

OVERALL RANKING OF THE FACTORS THAT CAUSE DELAYS

Rank Factors causing schedule delays

Very

High

High

Medium Low

veryLow

RII

1 Inadequate cash flow, due to non payment 40 0 0 0 0 1

2 Delay in payments 34     6  0.9

1

3 Escalation of material prices 8 32      0.8

44 Price fluctuations   40       0.8

5Compensation delays to affected property owners   40       0.8

6 Design changes by client or his agent during construction 0 20 20 0 0 0.7

7 Unexpected ground conditions (such as soil, hw table)   20 20     0.7

8 Unfavourable weather conditions   20 20     0.7

9 Inappropriate construction methods 0 17 23 0 00.685

10 Improper project feasibility study   17 23    0.685

11 Delay in providing services from utilities (such as water, electricity)   16 24    

0.68

12 Inadequate project management assistance 2 9 29 0 0

0.67

13 Poor communication and coordination with other parties 4 8 23 5 0

0.66

14 Lack of incentives for contractor to finish ahead of schedule   22 6 12  

0.65

15 Mistakes and delays in producing design documents 0 8 32 0 0

0.64

16 Inadequate modern equipment   8 32    0.6

4

17 Low efficiency of equipment   8 32    0.6

4

103

18 Inaccurate site investigation 0 0 40 0 0

0.60

19 Lateness in reviewing and approving design documents 0 0 40 0 0

0.60

20 Complexity of project design 0 0 40 0 0 0.621 Design errors made by designers 0 0 40 0 0 0.6

22 Insufficient data collection and survey before design 0 0 40 0 0 0.6

23 Unclear and inadequate details in design drawings 0 0 40 0 0 0.6

24 Equipment allocation problem     40     0.625 Improper equipment     40     0.6

26 Changes in material types and specifications during construction     40     0.6

27 Damage of materials     40     0.628 Shortage of construction materials     40     0.629 Unreliable suppliers     40     0.630 Delay in approving design documents     40     0.631 Delay in site possession     40     0.6

32 Poor communication and coordination with other parties     40     0.6

33 Ineffective delay penalties     40     0.634 Unfavourable contract clauses     40     0.6

35 Slowness in decision making     34 6  0.5

7

36 Incompetent project team 0 2 29 8 10.5

6

37 Ineffective project planning and scheduling 0 0 32 8 0

0.56

38 Obsolete technology 0 0 32 8 00.5

6

39 Poor site management and supervision 0 0 32 8 00.5

6

40 Poor use of advanced engineering design software 0 0 32 8 0

0.56

41 Low motivation and morale of labour     32 8  0.5

6

42 Inadequate contractor experience 0 0 33 3 40.545

43 Lack of capable representative     28 12   0.5

104

4

44Delay in approving major changes in the scope of work by consultant 0 0 27 13 0

0.54

45 Rework due to errors 0 0 24 16 00.5

2

46 Frequent equipment breakdowns     24 16  0.5

2

47 Accidents during construction     24 16  0.5

2

48 Loss of time by traffic control and restriction at job site     24 16  

0.52

49 Natural disasters (flood, hurricane, earthquake)     24 16  

0.52

50 Low productivity of labour     24 16  0.5

2

51 Unqualified / inadequate experienced labour     24 16  

0.52

52 Poor procurement of construction materials     12 23  

0.485

53 Delay in performing inspection and testing 0 0 16 24 0

0.48

54 Misunderstanding of client requirements by design engineer 0 0 16 24 0

0.48

55 Shortage of equipment     16 24  0.4

8

56 Problem with the inhabitants of the community     16 24  

0.48

57 Poor quality of construction materials     14 26  0.4

7

58 Legal disputes between project participants     12 28  

0.46

59 Inadequate definition of substantial completion     11 29  

0.455

60 Unreliable subcontractors 0 0 8 32 00.4

4

61 1 Absenteeism     8 32  0.4

4

62 Shortage of labour     8 32  0.4

463 Strike     8 32   0.4

105

4

64 Late delivery of materials     6 34  0.4

3

65 Complexity of the project     6 34  0.4

3

66 Original contract duration is short     6 34  0.4

3

67Lack of experience of consultant in construction projects 0 0 11 23 6

0.43

68 Slow mobilization of equipment       40   0.4

69 Changes in government regulations and laws       40   0.4

70 Conflict, war, and discontentment from the general public       40   0.4

71 Delay in obtaining permits from municipality       40   0.4

72 Delay in performing final inspection and certification by a third party       40   0.4

73 Global financial crisis       40   0.474 Personal conflicts among labour       40   0.475 Slow mobilization of labour       40   0.476 Delay in manufacturing materials       40   0.477 Change orders       40   0.478 Conflicts between joint-ownership       40   0.479 Suspension of work by client       40   0.4

80 Frequent change of subcontractors 0 0 0 34 60.3

7

81 Poor communication and coordination with other parties 0 0 40 0 0

0.275

82Conflicts between consultant and design engineer 0 0 0 24 0

0.24

83 Lack of experience of client in construction projects       6  

0.06

106