CRITICAL ANALYSIS OF DELAYS IN GOVERNMENT ROAD CONSTRUCTION PROJECTS IN GHANA
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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
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
ii
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
iv
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
v
references..........................................................53APPENDIX A..........................................................57
QUESTIONNAIRE COVER LETTER.........................................57APPENDIX B..........................................................63
OVERALL RANKING OF THE FACTORS THAT CAUSE DELAYS...................63
vi
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
vii
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
viii
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
1
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.
2
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
3
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
4
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.
5
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
6
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.
7
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.
9
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
10
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
12
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.
13
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.
14
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.
15
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.
16
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,
18
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
19
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
20
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.
21
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
22
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:
23
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
24
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
25
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
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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93
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
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