The document reviews 41 studies from around the world about construction delays and cost overruns. It identifies 113 causes of delays categorized into 18 groups. Most research analyzed questionnaire survey responses to rank problem factors and determine their importance, frequency, severity, and impact. However, the rankings given by different researchers are not consistent. The review finds that the causes of delays and cost overruns are not universal and constant across all projects. It concludes that different research methods are needed to better understand these issues.
The document reviews 41 studies from around the world about construction delays and cost overruns. It identifies 113 causes of delays categorized into 18 groups. Most research analyzed questionnaire survey responses to rank problem factors and determine their importance, frequency, severity, and impact. However, the rankings given by different researchers are not consistent. The review finds that the causes of delays and cost overruns are not universal and constant across all projects. It concludes that different research methods are needed to better understand these issues.
The document reviews 41 studies from around the world about construction delays and cost overruns. It identifies 113 causes of delays categorized into 18 groups. Most research analyzed questionnaire survey responses to rank problem factors and determine their importance, frequency, severity, and impact. However, the rankings given by different researchers are not consistent. The review finds that the causes of delays and cost overruns are not universal and constant across all projects. It concludes that different research methods are needed to better understand these issues.
The document reviews 41 studies from around the world about construction delays and cost overruns. It identifies 113 causes of delays categorized into 18 groups. Most research analyzed questionnaire survey responses to rank problem factors and determine their importance, frequency, severity, and impact. However, the rankings given by different researchers are not consistent. The review finds that the causes of delays and cost overruns are not universal and constant across all projects. It concludes that different research methods are needed to better understand these issues.
The paper reviews 41 studies which analyzed over 100 causes of delays in construction projects and categorized them into groups. The causes of delays vary between different projects and regions. There is no universal agreement on the ranking of causes.
Some of the main causes of delays mentioned include issues with contractors, poor site management and supervision, financing and payment problems, changes in design and scope, and problems with subcontractors.
Delays can lead to cost overruns, disputes and litigations between parties, loss of reputation for contractors and developers, and failure to deliver projects on time.
Construction Delays Causing Risks on Time and
Cost - a Critical Review
Chidambaram Ramanathan, SP Narayanan and Arazi B Idrus, (Universiti Teknologi Petronas, Malaysia)
Abstract There is an increase in the number of construction projects experiencing extensive delays leading to exceeding the initial time and cost budget. This paper reviews 41 studies around the world which has surveyed the delay factors and classified them into Groups. The main purpose of this paper is to review research which has categorized the causes responsible for time delays and cost overruns in projects. The intention was to see whether these causes are valid for projects being executed in Sabah East Malaysia allowing a mitigation plan to be prepared. The collected list has 113 causes for delays which were categorized into 18 different groups. Most of the research has analysed the responses from Questionnaire surveys. The collected data are used to rank the problem factors. The data are further used to investigate and analyse the reported Importance Index, Frequency Index, Severity Index, Relative Importance Index, Relative Importance Weight, Weighted Average, Mean, Standard Deviation and Variance. The collective comparison has revealed that the ranking given by all the researchers is not the same. Further each and every study has different rank ratings from different group. This review paper attempts to provide an updated compilation of the earlier studies on ranking of the delay causers, which are never similar and constant for universal projects. From the critical review, it is concluded that this type of research requires a different method or approach to generate meaningful answers and that there is a strong case against opinion surveys.
Keywords: Construction delays, Cost risk, Time risk, Project Management
Introduction The purpose of this study is to critically review and identify the applicability of past studies on determining the factors causing time delays and cost overrun in current projects. This goal has been accomplished by reviewing articles published during the last 15 years (since 1995) in various project management journals like: International Journal of Project Management (IJPM), Journal of Construction Management Economics (JCME), Journal of Management in Engineering (JME), Engineering Construction and Architectural Management Journal (ECAMJ) and others.
The biggest customer of the construction industry in most countries is the government (Okpala and Aiekwu, 1988). To the dislike of owners, contractors and consultants, many government projects experience extensive delays and thereby exceed the initial time and cost estimates (Odeh and Bataineh, 2002). This problem is more evident in the traditional type of contracts in which the contract is awarded to the lowest bidder. This procurement strategy is adopted by majority of government projects in developing countries. The Latham Report (Latham, 1994) suggested that ensuring timely delivery of projects is one of the important needs of clients of the construction industry. Severe criticisms of the industry arise if it takes much longer than the stipulated project time (Bennett et al., 1979; Flanagan et al., 1986). Completing projects on time is an indicator of an efficient construction industry (NEDO, 1988). Contractors are primarily
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 38 concerned with quality, time and cost and yet the majority of construction projects are procured on the basis of only two of these parameters, namely time and cost (Bennet and Grice, 1990). The literature emphasises time as an indicator for project success.
The construction process can be divided into three important phases, i.e. project conception, project design and project construction. Usually, the vast majority of project delays occur during the construction phase, where many unforeseen factors are always involved (Chan and Kumaraswamy, 1997). In construction, delay could be defined as the time overrun either beyond completion date specified in a contract, or beyond the date that the parties agreed upon for the delivery of a project. It is a project slipping over its planned schedule and this is a common problem in construction projects. To the owner, delay means loss of revenue through non availability of production facilities and rentable space or a dependence on present facilities. In some cases, delay causes higher overhead costs to the contractor because of longer work period, higher material costs through inflation, and due to labour cost increases. Completing projects on time is an indicator of efficiency, but the construction process is subject to many variables and unpredictable factors, which result from many sources. The sources are the performance of parties, resources availability, environmental conditions, involvement of other parties, and contractual relations, and the completion of a project within the specified time is rare (Assaf, 2006).
Cost and schedule overruns occur due to wide range of factors. If project costs or schedules exceed their planned targets, client satisfaction would be compromised. The funding profile no longer matches the budget requirement and further slippage in the schedule could result (Kaliba et al., 2009). According to Ahmed et al. (2002), delays on construction projects are a universal phenomenon and road construction projects are no exception. Delays are usually accompanied by cost overruns. These have a debilitating effect on contractors and consultants in terms of growth in adversarial relationships, mistrust, litigation, arbitration, cash-flow problems, and a general feeling of trepidation towards other stakeholders (Ahmed et al., 2002). This problem is not unique to developed countries and is being experienced in most of the developing economies.
When projects are delayed, they are either extended or accelerated and therefore, incur additional cost. The normal practices usually allow a percentage of the project cost as a contingency allowance in the contract price and this allowance is usually based on judgment (Akinsola, 1996). Although the contract parties agree upon the extra time and cost associated with delay, in many cases there are problems between the owner and contractor as to whether the contractor is entitled to claim the extra cost. Such situations result in questioning facts, causal factors and contract interpretations (Alkass et al., 1996). Therefore, delays in construction projects cause dissatisfaction to all parties involved and the main role of the project manager is to make sure that projects are completed within the budgeted time and cost. Several studies have been undertaken on factors causing delays and cost overruns, and affecting quality, safety and productivity, etc. and specific problems in special types of projects. These studies usually focus on specific aspects of project performance. Practitioners need to develop the capacity to foresee potential problems likely to confront their current and future projects. Identification of the common problems experienced on past projects in their construction business environment is a good option (Long et al., 2004).
Frimpong et al. (2003) revealed that project management tools and techniques play an important role in the effective management of a project. PMBOK defines Project Management as the application of knowledge, skills, tools and techniques to project activities to meet the project requirements (PMI, 2008). Project management involves managing the resources
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 39 workers, machines, money, materials and methods used (Giridhar and Ramesh, 1998). Some projects are effectively and efficiently managed while others are mismanaged, incurring much delay and cost overruns. Any construction project comprises two distinct phases: the preconstruction phase (the period between the initial conceptions of the project to awarding of the contract) and the construction phase (period from awarding the contract to when the actual construction is completed). Delays and cost overruns occur in both phases. However the major instances of project overruns usually take place in the construction phase (Frimpong et al., 2003).
Unfortunately, due to various reasons, project successes are not common in the construction industry, especially in developing countries. From several studies and empirical evidence it is clear that project overruns comprising delays and cost overruns occur during the construction phase. Therefore, professionals and scholars have been motivated to take steps to meet this challenge.
Review of Construction Delays across the World Realistic construction time has become increasingly important because it often serves as a crucial benchmark for assessing the performance of a project and the efficiency of the contractor (Kumaraswamy and Chan, 2002). This study aims to identify the uncertainties and to foresee potential problems likely to confront the current and future projects, helping project teams to be proactive in managing their projects in which potential problems are fully anticipated (Long et al., 2004).
Research literature from all around the world has been collated and consolidated for the better understanding and to conceive the overall picture of the issues. This critical review is presented in five sections; Firstly Identification of Factors and Category, Secondly the Research Methodology adopted in earlier studies (reorganizing and tabulating the data from literature), Thirdly Analysis of Data, Fourthly Results and discussions and Fifthly Conclusions.
Identification of Factors and Category The factors identified in the research articles are collated and grouped into 18 categories. The set of factors studied by different authors are collected and presented in Table 1. Different authors focus on selected categories for study and analysis. Table 1 tabulates the type of effect studied by different authors and the respective category as classified in their studies. From the review it is observed that certain factors have been categorized under different Groups by different authors. This has been tabulated in detail and discussed in following section of this paper.
Category No. Category No. of causes / factors / problems Type of Effect Studied References 1 Financier 4 Time delay Long et.al 2004 3 Time delay Assaf et.al. 1995
2 Project 6 Time delay Assaf and Hejji 2006 5 Time overrun Chan & Kumaraswamy 1997
3 Project Attributes 8 Time and cost overrun Long et.al 2004
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 40 Table 1 cont Category No. Category No. of causes / factors / problems Type of Effect Studied References 4 Owner / Client 10 Time and cost overrun Assaf and Hejji 2006 10 Time and cost overrun Long et.al 2004 5 Time delay Alaghbari et.al. 2007 4 Time delay Odeh & Battaineh 2002 4 Time overrun Chan & Kumaraswamy 1997
5 Contractor 13 Time and cost overrun Assaf and Hejji 2006 17 Time and cost overrun Long et.al 2004 12 Time delay Alaghbari et.al. 2007 6 Time and cost overrun Odeh & Battaineh 2002 4 Time overrun Chan & Kumaraswamy 1997
6 Consultant 7 Time and cost overrun Assaf and Hejji 2006 7 Time and cost overrun Long et.al 2004 6 Time delay Alaghbari et.al. 2007 4 Time and cost overrun Odeh & Battaineh 2002
7 Design 8 Time and cost overrun Assaf and Hejji 2006 3 Time overrun Chan & Kumaraswamy 1997
8 Coordination 7 Time and cost overrun Long et.al 2004
9 Materials 7 Time and cost overrun Assaf and Hejji 2006 2 Time and cost overrun Odeh & Battaineh 2002 4 Time overrun Chan & Kumaraswamy 1997 5 Time and cost overrun Assaf et.al. 1995
10 Plant / Equipment 5 Time and cost overrun Assaf and Hejji 2006 1 Time delay Odeh & Battaineh 2002 4 Time overrun Chan & Kumaraswamy 1997 5 Time and cost overrun Assaf et.al. 1995
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 41 Table 1 cont Category No. Category No. of causes / factors / problems Type of Effect Studied References 11 Labour / Manpower 5 Time and cost overrun Assaf and Hejji 2006 2 Time and cost overrun Odeh & Battaineh 2002 4 Time overrun Chan & Kumaraswamy 1997 3 Time and cost overrun Assaf et.al. 1995
12 Environment 9 Time and cost overrun Long, et.al 2004 4 Time and cost overrun Assaf et.al. 1995
14 Contractual relationships 3 Time & cost effects Odeh & Battaineh, 2002 14 Time delay Assaf et.al. 1995
15 External 12 Time and cost overrun Assaf and Hejji 2006 4 Time delay Odeh & Battaineh 2002 2 Time overrun Chan & Kumaraswamy 1997 8 Time delay Alaghbari et.al. 2007
16 Changes 7 Time delay Assaf et.al. 1995
17 Scheduling & Controlling 11 Time delay Assaf et.al. 1995
18 Government relations 4 Time delay Assaf et.al. 1995
Table 1 Factors and Categories
Research Methodology Chan and Kumaraswamy (1997) adopted a Questionnaire survey with 83 hypothesized delay factors which was designed in late 1994 on the basis of a pilot survey. The 83 factors have been grouped into eight major factor categories. Odeh and Battaineh (2002), Frimpong et al (2003), Long et al (2004), Assaf and Al-Hejji (2006), Abdul-Rahman et al. (2006), Sambasivan and Soon (2007), Alaghbari et al. (2007), Adnan (2008), and Kaliba et al. (2009) also designed their research methodologies with questionnaire surveys comprising individual set of well recognized causes of delay.
The questionnaires were designed to evaluate the frequency of occurrence, severity and the importance of the identified causes (Assaf, 2006). The questionnaire was distributed to Contractors, Consultants and Clients. In the field survey the respondents were asked to indicate the level of importance of each cause using five-point Likert scale ranging from 1 (not important)
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 42 to 5 (extremely important). The number of firms that completed and returned the questionnaire sets are listed in Table 2 and graphically represented in Figures 1 and 2. Figure 1 shows the total number of questionnaires distributed and the total responses of the individual study. Figure 2 shows the response rate of individual sectors of respondents in Percentage.
Questionnaire Design and Methods: The Questionnaire study adopted by each author has a different approach. They have been designed based on previous literature, current construction practice, personal experience and location of the project.
Assaf et al. (1995) conducted the investigation in two phases. The first phase included a literature search and interviews. The first phase identified 56 causes of delay. In the second phase a questionnaire was developed using these delay causes. His scope was limited to large public building projects in the Eastern Province of Saudi Arabia. The total population consisted of contractors, architects/engineers (A/Es), and public owners (Government agencies).
Chan and Kumaraswamy conducted two studies in 1997 and 2002. In the earlier study, a pilot study was carried out in early 1994 to investigate the principal causes of construction delay of both building and civil engineering projects which were completed in Hong Kong between 1990 and 1993. The latter survey was supplemented by site visits by industry experts with the aim of identifying the principal factors facilitating faster construction in Hong Kong projects.
Odeh and Battaineh (2002) distributed the questionnaire to a random sample of 100 contractors and 50 consultants representing different specializations in large projects. The sample size of each specialization is proportional to the distribution of the population of the different specializations. Given the sample size, the samples were selected randomly from the population in each specialization. Sambasivan and Soon (2007) adopted the same method in their study on the causes and effects of construction delays.
Long et al. (2004) developed their questionnaire survey to investigate several issues relating to large construction projects focusing only on the problems experienced. To suit the Vietnam construction conditions, the preliminary questionnaire was pilot tested. Six experienced professionals in the Vietnam construction industry were involved in the pilot test. Their comments were used to revise and prepare the final questionnaire. Responses to the questionnaire were then collected and analysed. The analysis included ranking the problems in terms of degree of occurrence and level of influence.
Frimpong et al. (2003) developed a questionnaire of 26 factors designed from previous preliminary investigations conducted in groundwater drilling projects between 1970 and 1999 in Ghana. The questionnaire was directed towards three groups in both public and private organisations: owners of the groundwater projects, consulting offices, and contractors working in the groundwater works.
Alaghbari et al. (2007) distributed the questionnaire among government bodies, main contractors, consultants and developers who were connected with the building systems construction projects. In order to accomplish this, the researchers contacted professional institutions, agents and government bodies. The sample was restricted to building system companies. The respondents were contractors, consultant, developers, subcontractors, engineers and architects who were involved in building system construction projects.
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 43 All the other studies were conducted by the random sampling of the three principal construction parties (Owners, Consultant and Contractor).
Figure 1 Total number of questionnaires distributed and response
Figure 2 Response rate for different categories for the Questionnaire
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 44
Sl. No . Description of study Questionnaires distributed Questionnaire Respondents Proportional Response Rate* References Total Owners Consultant s Contractor s Total Owner s Consultant s Contractor s Overall Owner Consulta nt Contractor 1 Causes of delay 144 27 51 66 57 15 19 23 40% 26% 33% 40% Assaf and Hejji 2006 2 Large projects in Vietnam 287 82 85 120 109 36 27 46 38% 33% 32% 42% Long et.al 2004 3 Causes of delay Ghana Case study 125 55 30 40 72 28 19 25 58% 39% 26% 35% Frimpong et.al 2003 4 Risk in D&B Projects in Malaysia 60 - - - 30 - - - 50% - - - Adnan et.al 2008 5 Causes and effects of delay in Malaysian projects 200 100 50 50 150 67 48 35 75% 45% 32% 23% Sambasivan & Soon, 2007 6 Quantify schedule risk in projects 200 - - - 166 - - - 83% - - - Luu et.al. 2009 7 Schedule delays and cost escalation in Zambia projects 60 - - - - - - -
Table 2 Details of the Questionnaire distribution in various studies and their response * The decimals more than 0.5 are rounded to next whole number
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 45
Data Analysis Abbreviation Proposed Expression Parameters Reference Place of study Importance Index I
Where I = importance index; ai = constant expressing the weight of the ith response, where ai = 0,1,2,3 for I = 1,2,3,4, respectively; xi = frequency of the ith response given as a percentage of the total response for each cause; i = response ategory index. Assaf et.al. 1995 Saudi Arabia Rank correlation coefficient
Where, D= difference between ranks given by one party and the rank given by another party for an individual cause and N= umber of cause or groups. Assaf et.al. 1995 Saudi Arabia Relative Importance Index RII
where w = weighting given to each factor by the respondentsand ranges from 1 to 5 where '1' is 'not significant' and '5' is 'extremely significant', A = highest weight (i.e. 5 in this case), and N = total number of respondents. Chan & Kumaraswamy, 1997 Hong Kong Relative Importance Index RII
where r = rating given to each factor by the respondents and ranges from 1 to 5 where '1' is 'not significant' and '5' is 'extremely significant', A = highest rating (i.e. 5 in this case), and N = total number of respondents. Chan & Kumaraswamy, 2002 Hong Kong Relative Importance Index RII
Where i = response category index, Wi = the weight assigned to the ith resonse. Xi = frequency of the ith response given as percentage of the total responses for each case. Odeh & Battaineh, 2002 Jordan Relative Importance Weight RIW
where: xj=the sum of the jth factor; j=the factors 1, 2, 3, 4, . . .. . .N; N=total number of factors (26); ai=constant expressing the weight given to the ith response: i=1, 2, 3, 4, 5 Frimpong et al. 2003 Ghana Frequency Index (%) F.I. (%)
a is the constant expressing weighting given to each response (ranges from 1 for Assaf and Hejji 2006 Saudi Arabia
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 46 rarely up to 4 for always), n is the frequency of the responses, and N is total number of responses. Severity Index (%) S.I. (%)
a is the constant expressing weighting given to each response (ranges from 1 for rarely up to 4 for always), n is the frequency of the responses, and N is total number of responses. Assaf and Hejji 2006 Saudi Arabia Importance Index (%) IMP.I. (%)
Assaf and Hejji 2006 Saudi Arabia Relative Importance Index RII
where w = weighting given to each factor by the respondentsand ranges from 1 to 5 where '1' is 'not significant' and '5' is 'extremely significant', A = highest weight (i.e. 5 in this case), and N = total number of respondents. Sambasivan & Soon 2007 Malaysia Mean Score MS
Where MS is the mean score, f is the frequency of responses to each rating (1-4), s is the score given to each factor by the respondents (ranges from 1 to 4), and N is the total number of responses concerning that factor Alaghbari et al. 2007 Malaysia Frequency Index (%) F.I. (%)
a = constant expressing the weight assigned to each responses (ranges from 0 for No happen to 4 for Always), n = frequency of each response, N = total number of responses. Le-Hoai et al. 2008 Vietnam Severity Index (%) S.I. (%)
a = constant expressing the weight assigned to each responses (ranges from 0 for No happen to 4 for Always), n = frequency of each response, N = total number of responses. Le-Hoai et al. 2008 Vietnam Relative Importance Index RII
Le-Hoai et al. 2008 Vietnam Table 3 Data Analysis Expressions used for various studies reported in literature.
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 47 Analysis of Data Each and every study has a different scope and different conclusions. Hence, different approaches have been used and the data analysed with different expressions. Table 3 includes the expressions used by individual researchers to produce the results to meet the set objectives. It shows the data analysis approaches with abbreviations and the equations used to calculate the results. The table explains the parameters used in the expressions. The place where the study was performed is denoted in column 6 of the Table 6.
Results and Discussions The data from the responses were analyzed by the authors of each and every study and the groups were ranked as shown in Table 4. It has collective listing of 18 different Groups/Category. The respective rankings results of the studies have been summarized to obtain an over view on the Groups that are highly responsible for the project delays.
The review findings shows that the group and factor ranking differs based on the location like Hong Kong, Jordan, Vietnam, etc. Sambasivan and Soon (2007) stated that the effects of delays in construction projects can be country-specific whereas other studies has proven that project characteristics may even be region-specific. None of the studies is comparable to any other and each study has different rankings for the groups/categories/sources of the delays and cost overruns. The groups most influential in earlier studies (in 1995) are now (2010) not considered high risk factors. The possible variations in the ranking results are most unlikely to be because of the different respondents. Table 4 clearly outlines that the studies have yielded different results. Even Sambasivan & Soon (2007) adopting the same 28 factors derived by Odeh & Battaineh (2002) has obtained different results of group influence and their responsible levels. Figure 3 shows the scatter diagram of the ranks obtained from the various related studies.
As there is no correlation in the ranking of the different studies, the first five rankings influencing project delays and cost overruns from the entire set of results of each author has been collected. In the different studies the groups with Rank 1 to Rank 5 has been listed. The groups which appear more than once have been identified. This is tabulated in Table 5.
Even though the groups like Owner (Rank 1), Contractor (Rank 2), Design related and Plant and Equipments (Rank 3), Labour (Rank 4) and Consultant and Contractual relationships (Rank 5) fall more frequently within the first 5 rank category, other groups like Finance related, Materials, Schedule and Controlling, Coordination, Changes are also found in some studies but occurs only once in the collated studies. So out of all 18 categories 7 categories appears among the first five ranks and other 11 categories are rated consistently below Rank 5. This provides an overall view of the study, and is shown in Table 5.
The critical review has resulted in a consolidated list of factors/causes and their ranking (Table 6). This review study has identified 113 factors from the studies discussed in this article. Further analysis ranked all these factors according to the results in the respective studies. Table 6 compares the results of ten studies in 12 different sectors of the projects. The corresponding Factors and their Group wise categories are mentioned in the last column of the table 6. This comparative study brings together the results of various studies and combines the Factors / Causes, Ranking and Group classification.
The serial numbers in row 1 of table 6 represents authors, whose details are as follows: Column [1] Assaf et.al. 1995, col.[2] Chan & Kumaraswamy 1997, col. [3] Odeh & Battaineh
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 48 2002, col.[4] Frimpong et.al. 2003, col.[5] Long, et.al 2004, col. [6] Sambasivan& Soon 2007, col.[7] Alaghbari et al. 2007, col.[8] Le-Hoai. et al. 2008, col.[9] Luu et al. 2009 and col.[10] Tumi et al. 2009. Also (a) indicates Contractor, (b) Consultants, (c) Occurrence and (d) Influence.
From the list of factors obtained in Table 6 from the previous studies, the first five important causes of delay and cost overruns in different developing countries are determined and summarized in Table 7.
The problem of delays in the construction industry is a global phenomenon. In Saudi Arabia, Assaf and Al-Hejji (2006) found that only 30% of construction projects were completed within the scheduled completion dates and that the average time overrun was between 10% and 30%. In Nigeria, Ajanlekoko (1987) observed that the performance of the construction industry in terms of time was poor. Odeyinka and Yusif (1997) have shown that seven out of ten projects surveyed in Nigeria suffered delays in their execution. Ogunlana and Promkuntong (1996) conducted a study on construction delays in Thailand. Al-Momani (2000) carried out a quantitative analysis on construction delays in Jordan. Frimpong et al. (2003) conducted a survey to identify and evaluate the relative importance of the significant factors contributing to delay and cost overruns in Ghana groundwater construction projects. Chan and Kumaraswamy (1997) studied delays in Hong Kong construction industry.
Conclusions The critical review undertaken in this paper covers research studies in the area of construction delay with time and cost risks. Totally 18 categories of causes were identified from the various related studies reported in the literature. These 18 categories or Groups are (1) Finance- related, (2) Project-related, (3) Project Attributes, (4) Owner/Client, (5) Contractor, (6) Consultant, (7) Design-related, (8) Coordination, (9) Materials, (10) Plant/Equipment, (11) Labour/Manpower, (12) Environment, (13) Contract-related, (14) Contractual relationships, (15) External, (16) Changes, (17) Scheduling & Controlling and (18) Governmental relationship.
Generally, all the research studies were conducted by questionnaire surveys using randomly sampled responses and analysis of data obtained from the responses. The review study has ranked the responsible groups by combining the analysis results which are: Owner (Rank 1), Contractor (Rank 2), Design related and Plant and Equipments (Rank 3), Labour (Rank 4) and Consultant and Contractual relationships (Rank 5). These fall into the first 5 rank categories.
Each study has a unique approach and unique results are derived from the questionnaire response data. Various indices like Importance Index (I), Rank Correlation Coefficient, Relative Importance Index (RII), Frequency Index (FI), Severity Index (SI) and Mean Score (MS) have been determined to assess the impact of the Factors at various angles based on the requirement for the project.
Each study has rated the groups or factors with Ranks of influence. These ranks are compared for better understanding. But two studies have similar rating of ranks. Each and every Group in the various studies arrived at different weights of Ranks. It would appear that the Groups and Factors causing delays are country, location and project specific and that there are no root causes that can be generalised.
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 49 Sl. No. Group Overall / Average Ranking Studied Assaf et.al. 1995 Chan& Kumaraswamy, 1997 Odeh & Battaineh 2002 Long et.al 2004 Assaf and Hejji 2006 Sambasivan& Soon 2007 Combined Ranking Contractors Consultants Occurrence Influence Frequency Severity Importance 1 Finance related 1 - - - 7 7 - - - - 2 Project related - 5 - - - - 7 9 8 - 3 Project Attributes - - - - 6 5 - - - - 4 Owner / Client related - 7 1 1 5 3 1 1 1 4 5 Contractor related - 1 3 2 2 4 2 2 2 1 6 Consultant related - - 6 4 1 1 3 5 5 7 7 Design related - 2 - - - - 5 3 3 - 8 Coordination - - - - 3 6 - - - - 9 Materials 2 8 7 5 - - 6 6 6 2 10 Plant/Equipments 7 6 2 3 - - 9 7 9 3 11 Labour 6 3 2 3 - - 4 4 4 3 12 Environment 9 - - - 4 2 - - - - 13 Contract - - 4 7 - - - - - 6 14 Contractual Relationship 3 5 6 - - - - - 5 15 External - 4 8 8 - - 8 8 7 8 16 Changes 4 - - - - - - - - - 17 Scheduling and Control 5 - - - - - - - - - 18 Government relationship 8 - - - - - - - - - Table 4 Group rankings
Figure 4 Scatter diagram of rank distribution 0 1 2 3 4 5 6 7 8 9 10 0 2 4 6 8 10 12 14 16 18 20 R a n k s
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 50
Research Study Groups Results Place of study Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Assaf et.al. 1995 Finance-related Materials Contractual relationship Changes Schedule and controlling Overall Saudi Arabia Chan & Kumaraswamy, 1997 Contractor Design Labour External Project related Overall Hong Kong Odeh & Battaineh, 2002 Owner Plant and Equipment Contractor Contract Contractual relationship Contractors response Jordan Owner Contractor Plant and Equipments Consultant Materials Consultants response Long et.al 2004 Consultant Contractor Coordination Environment Owner Occurrence Vietnam Consultant Environment Owner Contractor Project attributes Influence Assaf and Hejji, 2006 Owner Contractor Consultant Labour Design Frequency Saudi Arabia Owner Contractor Design Labour Consultant Severity Owner Contractor Design Labour Consultant Importance Sambasivan & Soon, 2007 Contractor Materials Plant and equipment Owner Contractual relationship Overall Malaysia
Many occurrence (No.) and % Owner (5) 50% Contractor (5) 50% Design (2) + Plant & Equipment (2) 40% Labour (3) 30% Consultant (2) & Contr. Relationship (2) 40%
Table 5 Factors securing the first five rank in different studies
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 51 Sl. No. Factors / Causes [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] Groups (a) (b) (c) (d) 1 Slow payment for completed works 5 4 2 1 4 7 6 9 Financing 2 Contractor financial difficulties 2 5 14 5 2 4 4 4 Financing 3 Cash problems during construction 1 7 5 Financing 4 Inflation 4 Financing 5 Financial difficulties to owner 1 3 1 4 6 Necessary variations of works 8 7 Project 7 Obsolete technology 9 9 Project attributes 8 Unsatisfactory site compensation 10 7 Project attributes 9 Lack of involvement through project life 16 19 Project attributes 10 Incompetence project team 20 12 Project attributes 11 Slow site handover 5 8 12 Owner interference 2 4 20 13 Long waiting time for approval of drawings 3 Owner / Client 14 Client initiated variations 5 18 19 Owner / Client 15 Unrealistic contract durations imposed by client 13 13 6 18 24 Owner / Client 16 Unrealistic client initial requirement 20 Owner / Client 17 Low speed of decision making 4 8 5 26 13 8 4 Owner / Client 18 Slow site clearance difficulties 2 1 13 Owner / Client 19 Delays in subcontractors work 9 9 3 5 13 6 Contractor 20 Poor site management and supervision 11 5 13 17 2 5 1 11 6 Contractor 21 Unstable management structure and style of contractor 12 15 20 Contractor 22 Shortage of Technical, managerial and supervisory personnel 15 20 7 4 14 Contractor 23 Construction method 5 17 15 13 8 Contractor 24 Improper planning 10 8 1 Contractor 25 Mistakes during construction 17 11 22 10 6 16 9 17 Contractor 26 Inadequate contractor experience 3 1 8 3 2 10 Contractor 27 Severe overtime 5 Contractor 28 Excessive contracts and subcontracts 18 11 Contractor 29 Lack of responsibilities 10 Contractor 30 Contract Management 12 7 19 11 Consultant 31 Delay in work approval 18 11 Consultant 32 Preparations and approval of drawings 21 19 16 Consultant 33 Quality assurance/Control 25 21 25 22 11 Consultant 34 Waiting for information 24 11 35 Long waiting time for approval of test samples of material 16 18 15 25 23 11 Consultant 36 Poor contract management 2 Consultant 37 Supervision too late & slowness in making decision 3 15 11 38 Slow to give instructions 4 39 Lack of consultants experience 9 10 40 Poor project management assistance 2
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 52 Sl. No. Factors / Causes [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] Groups (a) (b) (c) (d) 41 Delay in design information 2 Design - related 42 Inadequate design team experience 6 15 Design - related 43 Mistakes and discrepancies in design 7 10 3 Design - related 44 Impractical design 19 11 Design - related 45 Slow information flow between project team 10 17 Coordination 46 Lack of communication between consultant and contractor 14 20 14 9 2 Coordination 47 Lack of communication between client and consultant 17 20 14 9 2 Coordination 48 Shortage 11 11 10 15 6 4 9 3 3 Materials 49 Change in type & Spec. 6 Materials 50 Procurement 3 Materials 51 Slow / late delivery 16 11 7 13 Materials 52 Damage in storage while needed at site 45 Materials 53 Delay in special manufacturer from foreign country (Imported) 16 17 Materials 54 Quality 26 23 12 Materials 55 Escalation in prices 6 Materials 56 Difficulty in obtaining at official current prices 13 Materials 57 Failure 42 7 16 16 8 Plant/Equipments 58 Shortage/Availability 36 7 16 15 6 17 8 16 Plant/Equipments 59 Unskilled operators 50 Plant/Equipments 60 Slow / late delivery 41 11 Plant/Equipments 61 Poor productivity 41 Plant/Equipments 62 Shortage / Supply 27 16 12 21 7 19 Manpower 63 Labour skills/Productivity 27 1 9 11 19 Manpower 64 Nationality of labour 49 Manpower 65 Hot weather effect on construction activity 42 Environment 66 Rain / inclement weather effect on construction activity 55 18 23 24 8 27 20 12 21 Environment 67 Insufficient available utilities on site 51 Environment 68 Social and cultural factor 54 Environment 69 Project delivery systems used. (#) 33 17 Contract 70 Mistakes and discrepancies in contract documents 14 22 10 18 Contract 71 Deficiencies/inaccurate in cost estimates 10 12 15 8 Contract 72 Low warded bid price 14 7 Contract 73 Conflicts between contractor & consultant 20 21 Contractual Relationship 74 Uncooperative owner 9 Contractual Relationship 75 Slowness of owners decisionmaking process 2 19 26 Contractual Relationship 76 Joint owner ship of project 51 Contractual Relationship 77 Poor organization of contractor or consultant 11 22 18 25 Contractual Relationship 78 Difficulty of coordination with various parties in the project 11 Contractual Relationship
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 53 Sl. No. Factors / Causes [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] Groups (a) (b) (c) (d) 79 Insufficient communication between the owner & design in the design phase. 21 Contractual Relationship 80 Unavailability of professional construction management 31 Contractual Relationship 81 Controlling subcontractors by general contractors in execution of works 6 Contractual Relationship 82 Unavailability of financial incentive for contractor to finish ahead of schedule 32 Contractual Relationship 83 Negotiations and obtaining of contracts 46 Contractual Relationship 84 Legal disputes between various parties in the const. project 46 15 20 14 Contractual Relationship 85 Problems with neighbors 28 27 28 External 86 Unforeseen ground conditions 24 25 23 18 6 External 87 Fraudulent practices and kickbacks 11 External 88 Price fluctuation 12 10 89 Design changes by owner 9 19 26 3 13 21 5 14 Changes 90 Design changes made by designers (*) 14 3 13 21 5 14 Changes 91 Foundation conditions encountered in the field 33 1 Changes 92 Mistakes in soil investigation 27 16 Changes 93 Water table conditions on site 24 Changes 94 Geological problems on site 46 12 Changes 95 Errors committed during field construction on site 27 Changes 96 Inaccurate time estimates 1 3 1 Scheduling & Control 97 Planning and scheduling deficiencies 8 13 6 Scheduling & Control 98 Preparation and approval of shop drawing 11 Scheduling & Control 99 Waiting for sample materials approval 27 Scheduling & Control 100 Preparation of schedule networks and revisions by consultant during construction 33 Scheduling & Control 101 Lack of training personnel and management support to model construction operation 24 Scheduling & Control 102 Lack of database in estimating activity duration and resources 16 Scheduling & Control 103 Poor judgment and experience of involved people in estimating time and resources 6 Scheduling & Control 104 Inadequate early planning of project 16 Scheduling & Control 105 Inspection and testing procedures used in project 36 Scheduling & Control 106 Application of quality control based on foreign specification 42 Scheduling & Control 107 Traffic control regulation practiced at site 53 Scheduling & Control 108 Accident during construction 56 Scheduling & Control 109 Inadequate control procedures 19 Scheduling & Control 110 Obtaining permits from Government 21 4 2 21 Govt. relations 111 Obtaining permits from labourers 24 21 Govt. relations 112 Excessive bureaucracy in project-owner operation 11 8 14 7 Govt. relations 113 Building codes used in design of projects 8 27 28 26 Govt. relations Table 6 Consolidated list of Factors / Causes and their Ranking * (Due to unfamiliarity with local conditions and environment) # (Design & Build, General Contracting, turnkey, etc.)
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 54
Major Causes Author 1 2 3 4 5 Vietnam (a) Poor site management and supervision Poor site management and assistance Financial difficulties of owner Financial difficulties of contractor Design Change Le-Hoai et. al. 2007 Malaysia (b) Improper planning Site management Inadequate contractor experience Finance and payments of completed works Subcontractors Sambasivan, 2007 Jordan (b) Financial difficulties faced by the contractor Too many change order from the owner Poor planning and scheduling by the contractor Presence of unskilled labours Shortage of Technical professionals with the contractor Sweis, 2007 South Korea (b) Public interruptions Changed site conditions Failure to provide site Unrealistic time estimation Design Error Acharya et al. 2006 Hong Kong (b) Inadequate resources due to contractor/lack of capital Unforeseen ground conditions Exceptionally low bids Inexperienced contractor Works in conflict with existing Utility Lo, 2006 UAE (b) Preparation and approval of drawings Inadequate early planning of the project Slowness of the owners decisions making process Shortage of manpower Poor supervision and poor site management Faridi, 2006 Nigeria (b) Contractors financial difficulties Clients cash flow problem Architects incomplete drawing Subcontractors slow mobilization Equipment breakdown and maintenance problem Aibinu, 2006 Saudi Arabia (b) Changes in orders by owner during construction Delay in progress payments Insufficient planning and scheduling Shortage of labour Difficulties in financing contract Assaf 2006 Kuwait (b) Change orders Financial constraints Owners lack of experience Materials Weather Koushki, 2005 (c) Contractor Materials Financial constraints Change orders Weather Ghana (a) Monthly payment difficulties Poor contract management Material procurement Inflation Contractors financial difficulties Frimpong, 2003 Jordan (b) Poor design Changes in orders/design Weather Unforeseen site conditions Late deliveries Al-Moumani 2000 Saudi Arabia (b) Cash flow problem financial difficulties Difficulties in obtaining permits Lowest bid wins system Al-Khal 1999 Lebanon (b) Owners more concern in financial issues Contractors regarded the contractor relationship the most important Consultant considered project management most important Mezher et al. 1998 Saudi Arabia (b) Slow preparation and approval of shop drawings Delays in payment to contractors Changes in Design/Design errors Shortage of Labour supply Poor workmanship Assaf et al. 1995 Table 7 Comparison of previous studies on delay and cost overrun in construction projects in different Countries (a): Delay and cost overruns; (b): Delays only; (c): Cost overruns only
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 55 This study has identified 113 distinct factors classified into 18 groups responsible for delays through critical review of 41 previous research studies performed in the relevant field. This gives all the combination of factors and categories responsible for construction delays. But this critical review of forty one studies also demonstrates that none of the studies can be generalised and directly applicable as is. This presents a strong case against opinion surveys when as in this case, statistical analyse of actual projects could be done which potentially could generate meaningful answers.
REFERENCES Abdul-Rahman, H., Berawi, A.R., Berawi, A.R., Mohamed, O., Othman, M. and Yahya, I.A. (2006) Delay Mitigation in the Malaysian Construction Industry, Journal of Construction Engineering and Management, 132 (2), 125-133 Acharya, N.K., Lee, Y.D. and Im, H.M. (2006) Investigating delay factors in construction industry: A Korean perspective, Korean Journal of Construction Engineering and Management, 10, 177-190 Adnan, H., Jusoff, K. and Salim, M.K. (2008) The Malaysian Construction Industrys Risk Management in Design and Build, Journal of Modern Applied Science, 2 (5), 27-33 Ahmed, S., Azher, S., Castillo, M. and Kappagantula, P. (2002) Construction delays in Florida; an empirical study, Florida, 2002. http://www.cm.fiu.edu/publication/Delays .pdf Aibinu, A.A. and Odeyinka, A. (2006) Construction delays and their causative factors in Nigeria, Journal of Construction Engineering Management, 132 (7), 667-677 Ajanlekoko, J.O. (1987) Controlling cost in the construction industry, Lagos QS Digest, Lagos, 1 (1), 812 Akinsola, A.O. (1996) Neural network model for predicting building projects contingency, In Conference proceedings of association of researchers in construction management, ARCOM 96, Sheffield Hallam University, England, 50716 Alaghbari, W., Kadir, M.R.A., Salim, A. and Ernawati (2007) The significant factors causing delay of building construction projects in Malaysia. Engineering, Construction and Architectural Management Journal, 14 (2), 192-206 Alkass, S., Mazerolle, M. and Harris, F. (1994) Construction delay analysis techniques, Journal of Construction Management Economics, 14 (5), 37594 Al-Khalil, M. and Al-Ghafly, M. (1999) Important causes of delay in public utility projects in Saudi Arabia, Journal of Construction Management Economics, 17 (5), 64755 Al-Moumani, A. (2000) Construction delay: a quantitative analysis, International Journal of Project Management, 20, 5159 Assaf, S.A. and Al-Hejji, S.A. (2006) Causes of delay in large construction projects, International Journal of Project Management, 24, 349-357 Assaf, S.A., Al-Khalil, M. and Al-Hazmi, M. (1995) Causes of Delay in Large Building Construction Projects, Journal of Management in Engineering, 45-50 Bennett, J. and Grice, T. (1990) Procurement systems for building, In:Brandon, P. (ed) Quantity Surveying Techniques: New Directions, Blackwell Scientific Publications, Oxford Bennett, J., Flanagan, R., Goodacre, P., Gray, C., McLaughlin, N. and Norman, G. (1979) UK and US Construction Industries: A comparison of Design and Contract Procedures Surveyors Publications, UK London
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 56 Bowen, P.A., Hall, K.A., Edwards, P.J., Pearl, R.G. and Cattell, K.S. (2002) Perceptions of Time, Cost and Quality Management on Building Projects, The Australian Journal of Construction Economics and Building, 2, 48-56 Chan, D.W.M and Kumaraswamy, M.M. (1997) A comparative study of causes of time overruns in Hong Kong construction projects, International Journal of Project Management, 15 (1), 55-63 Chan, W.M.C. and Kumaraswamy, M.M. (2002) Compressing construction durations: lessons learned from Hong Kong building projects, International Journal of Project Management, 20, 23- 35 Faridi, A.S. and El-Sayegh, S.M. (2006) Significant factors causing delay in the UAE construction industry, Journal of Construction Management and Economics, 24 (11), 1167-1176 Flanagan, R., Norman, G., Ireland, V. and Ormerod, R. (1986) A Fresh Look at the UK and US construction Industry Building Employers Confederation, UK, London Frimpong, Y., Oluwoye, J. and Crawford, L. (2003) Causes of delay and cost overruns in construction of groundwater projects in a developing countries; Ghana as a case study, International Journal of Project Management, 21, 321-326 Giridhar, P. and Ramesh, K. (1998) Effective management of Turnkey projects, Aace Transactions, PM7- PM11. Istanbul Kaliba, C., Muya, M. and Mumba, K. (2009) Cost escalation and schedule delays in road construction projects in Zambia, International Journal of Project Management, 27, 522-531 Koushki, P.A., Al-Rashid, K. and Kartam, N. (2005) Delays and cost increases in the construction of private residential projects in Kuwait, Journal of Construction Management and Economics, 23 (3), 285-294 Latham, M. (1994) Constructing the Team, HMSO, London, 87-92 Le-Hoai, L., Lee, Y.D. and Lee, J.Y. (2008) Delay and Cost Overruns in Vietnam Large Construction Projects: A comparison with other selected countries, KSCE Journal of Civil Engineering, 367-377 Lo, T.Y., Fung, I.W.H. and Tung, K.C.F. (2006) Construction delays in Hong Kong civil engineering projects, Journal of Construction Engineering Management, 132 (6), 636-649 Long, N.D., Ogunlana, S., Quang, T. and Lam, K.C. (2004) Large construction projects in developing countries: a case study from Vietnam, International Journal of Project Management, 22, 553-561 Luu, T.V., Kim, S., Tuan, N.V. and Ogunlana, S.O. (2009) Quantify schedule risk in construction projects using Bayesian belief networks, International Journal of Project Management, 27, 39- 50 Mezher, T. and Tawil, W. (1998) Causes of delays in the construction industry in Lebanon, Engineering Construction Architecture Management Journal, 5 (3), 25260 NEDO (1988) Faster Building for Commerce HMSO, UK. London Odeh, A.M. and Battaineh, H.T. (2002) Causes of construction delay: traditional contracts, International Journal of Project Management, 20, 67-73 Odeyinka, H.A. and Yusif, A. (1997) The causes and effects of construction delays on completion cost of housing project in Nigeria, Journal Financial Manage Property Construction, 2 (3), 3144
Australasian Journal of Construction Economics and Building Ramanathan, C et al. (2012) Construction delays causing risks on time and cost a critical review, Australasian Journal of Construction Economics and Building, 12 (1) 37-57 57 Ogunlana, S.O. and Promkuntong, K. (1996) Construction delays in a fast growing economy: comparing Thailand with other economies, International Journal of Project Management, 14 (1), 3745 Okpala, D.C. and Aiekwu, A.N. (1988) Causes of high costs of construction in Nigeria, Journal of Construction Engineering and Management, 114 (2), 233-244 Project Management Institute (PMI) (2008) A guide to the Project Management Body of Knowledge, Fourth Edition, PMBOK, Atlanta Sambasivan, M. and Soon, Y.W. (2007) Causes and effects of delays in Malaysian construction industry, International Journal of Project Management, 25, 517-526 Swies, G., Swies. R., Hammad. A. A. and Shboul, A. (2008) Delays in construction projects: The case of Jordan, International Journal of Project Management, 26, 665-674 The Hindu (2007) Hit by delays and cost escalation http://www.hindunnet.com/2007/07/06/stories/2007070657310100 Tumi.S.A.H., Omran.A. and Pakir.A.H.K. (2009) Causes of delay in construction Industry in Libya, The International Conference on Administration and Business, 265-272 Yang.J., Yang.C. and Kao.C. (2010) Evaluating schedule delay causes for private participating public construction works under the Build-Operate-Transfer model, International Journal of Project Management, 28, 569-579