Investigation into the Impacts of Delays in Construction in terms of time, cost and quality.
Investigation into the Impacts of Delays in Construction in terms of time, cost and quality.
Asaad Wehbe
19690504
A Research Topic Report submitted for BLDG4010 Construction Research Methods
in partial fulfilment of the requirements for the degree of
Construction Research Methods
Supervisor: Robert Osei-KyeiSchool of Engineering, Design and Built Environment
Western Sydney University
April, 2022
Table of Contents
TOC o "1-3" h z u 1.Background PAGEREF _Toc105778355 h 12.Research Problem/ Question(s) PAGEREF _Toc105778356 h 23.Aim and Objectives PAGEREF _Toc105778357 h 34.Scope PAGEREF _Toc105778358 h 35.Work Plan/Timeline PAGEREF _Toc105778359 h 46. Literature Review PAGEREF _Toc105778360 h 57. Methodology PAGEREF _Toc105778361 h 138. Research Design PAGEREF _Toc105778362 h 149. How should the delay be avoided or managed PAGEREF _Toc105778363 h 1510. Conclusion PAGEREF _Toc105778364 h 1611. References PAGEREF _Toc105778365 h 18
BackgroundConstruction projects are the backbone of the infrastructural development of any country. It is important for healthy sustainable economic growth. From the research, it is evident that most construction projects fail to achieve the planned objectives in terms of time and cost (Gupta and Thakkar 2018). Project delay is an area of concern for the delivery of a successful project. It is the most common issue, and the magnitude of delay differs from project to project (Alaghbari et al. 2007). Delays not only hinder project implementation, but they can also lead to additional inefficiencies such as cost overruns, as well as administrative and stakeholder relationship concerns (Sambasivan and Soon 2007). In his study of Indonesian construction projects, Trigunarsyah (2004) discovered that 38 percent of the projects were behind schedule, and only 47 percent were finished on time, with just 15 percent completed earlier than scheduled.
Yang and Ou (2008) determined the causes of construction delays, classifying them as management-related, non-human-related, human-related, finance-related, contract-related, and design-related. Construction projects are impacted by numerous external elements, according to Yang and Kao (2012). Construction projects have extremely intricate conditions during implementation, include many interfaces and project stakeholders, and are affected by many external influences. Construction projects, according to Gardezi et al. (2014), have a higher level of risk and ambiguity than other industries, since they have complicated and time-consuming structures, including procedures and methodologies that are more prone to be influenced by unforeseen circumstances.
Comparable research for the western region of Australia was done by Wong and Vimonsatit (2012). They categorized 48 causes of delay into 10 categories, with the primary reasons for project delays being an absence of trained labour and challenges in financing projects. This survey also uncovered other delays mentioned by participants in their comments, which will be addressed in future work. Contractors' overwhelming workload, contractors' insufficient resources to complete the work, political issues, client's lack of coherence, lack of heritage or environmental approvals, poor or lack of risk management plan, poor quality management, audit delays, and supplier issues were among these factors.
Two goals are established in this study. The first goal is to perform a quantitative assessment to analyse the impact of delays in construction projects on time and cost. There has not been much work done in the literature on quantitative assessment of the same phenomenon. The technique provided in this study is likely to help professional managers obtain a better understanding of the important high-risk areas that require urgent attention. The second goal of this study is to provide the groundwork for future research in the construction industry's risk assessment and risk response plan selection. The insights gained from applying the suggested methodology to a case study in the Australian construction sector direct practitioners' focus to critical areas for reform. This is supposed to help decision-makers gain a better knowledge of their specific operational areas, as well as develop risk minimization and control methods.
Research Problem/ Question(s)Construction project delays are a worldwide issue that affects not just the construction sector but also a country's entire economy (Hisham and Yahya 2016). Various scholars undertake research in various locations throughout the world. Construction projects are unique ventures with many several features, such as a long timeline, multifaceted operations, a harsh environment, high financial strength, and dynamic coordination mechanisms. Such technological and organizational complexity creates significant risks, such as bureaucracy, land acquisition delays, economic uncertainty, and so on. The issue of project delay is a prominent one and needs immediate attention. Following are the research questions for this research;
What are the main reasons behind the delay of construction projects in Australia?
How severely the quality, cost and time is impacted because of the delay?
How can the delay be avoided or managed?
What are the managerial implications of the findings of this research?
Aim and ObjectivesThe aim of this research is to analyse the impact of delay in construction projects in terms of time, cost and quality. This analysis will help in coming up with a practical solution to eradicate or minimise the issue. Following are the objectives to achieve the determined aim;
Perform a quantitative assessment to evaluate the impact of delay on construction projects
Conduct a case study on an Australian construction project and assess the factors behind the delay
Identify the main causes of delay by performing a literature review
With the help of the findings, suggest a mitigation strategy against the delay in the construction project for managerial implications
ScopeThis research will majorly focus on construction projects within Australia. The case study selected for the purpose of this study will be a recognised construction project within Australia. The findings of this research will be useful for the project managers working in the construction sector. The study's methodology and limited sample size may restrict the degree to which the findings may be applied to other situations. This study will provide information to individuals who want to continue their investigation on the same issue. Future studies may use an empirical approach to help the Australian construction sector account for these types of delays as a key component of their risk management strategy. All stakeholders in the construction business can benefit from the proposed recommended procedures to reduce or eliminate delays in meeting project timelines and obligations.
Work Plan/TimelineTask Deadline
Preparing proposal. Draft 1 20/04/2022
Submitting the proposal for review. 22/04/2022
Revising and finalising the proposal. Draft 2 24/04/2022
Start writing the literature review. Draft 3 26/04/2022
Submitting literature review for feedback. 10/05/2022
Revising and finalising literature review. Draft 4. 16/05/2022
6. Literature ReviewConstruction projects in Australia, like those in other non-industrialized countries, are often delayed. The wild shift in the Australian building industry's limit and volume over several years necessitates a rigorous analysis of the delays (Hwang et al. 2017). As a result, it is important to get familiar with the major components that influence delays in Australia and to understand the link between the fundamental qualities for reducing the effects of these elements on delays. The postponement of these projects allowed the master to focus on the overall impact of various delay causes in the Australian construction sector and suggest predicted reactions to the current situation.
As illustrated by the viewpoint, the duration of a seeing's performance has a significant impact on the productivity of building projects. For project clients, lost advantages or benefits result from not being able to use the project on the agreed-upon date, while the contractor will incur more costs because of the wide proximity (Aziz and Abdel-Hakam 2016). The majority of standard forms of seeing appropriately feature techniques that prevent delay caused by the acts and inactions of the fundamental created authority, the customer, or events that are beyond the control of the two social affairs. When delays are caused by events or situations beyond the contractor's control, the contractor is sometimes excused from the outcomes and permitted to return any expenses incurred. Guaranteed plans can entice the customer to seek liquidated costs from the contractor for failing to complete the project within the estimated execution term. Liquidated damages provisions entitle the customer to a predetermined sum of money for each day or seven-day period of unjustified delay (Samarah and Bekr 2016).
There has been little enquiry into the standard reasons affecting these essential execution checks in Australia, therefore this creating study was extensive in its attempt to analyse the factors influencing building project delays, such as accommodating techniques. The findings of this enquiry are expected to be applied to numerous locations around the country functioning under similar conditions.
Building Projects
Building projects must take the required efforts to avoid becoming projects that coordinate infrastructure, building, and industrial structure construction. Construction accounts for 8-13 percent of the gross domestic output in developed countries (Bekr 2015). Construction begins with planning, designing, and funding, and continues until the project is completed and ready for use. Construction is divided into three categories: industrial, infrastructure, and buildings. Building construction is frequently divided into two categories: private and non-private.
Infrastructure, which includes totally open works, dams, ranges, highways, rail lines, water or wastewater, and utility undertakings, is sometimes referred to as heavy engineering or heavy vigilant. Gathering plants, manufacturing lines, process material, treatment working conditions, and power age are all part of an industrial building (Durdyev et al. 2017).
Types of Delays
Several academics have represented the time delay in construction projects. Delay may be defined as the amount of time that has passed after the project contract was signed. Delays extend the time required to finish the project past the agreed-upon completion date (Amoatey et al. 2015). As a result, reasonable projects are those that are completed on schedule, under budget, and by certification criteria as a whole, as evidenced by a progress report. In this analysis, delays in construction projects will be defined as the required additional time to finish projects beyond the planned completion date, or, to put it another way, the degree of separation between the project's planned construction time and the guaranteed completion date.
Delays in building projects can be represented in a variety of ways. Starting on one side of the world and working our way around, an astounding number of studies have looked into building project delays. Shortages of labourers, excused planning from contractors, staggering site relationships from contractors, nonappearance of relationships in contractors, nonattendance of resources from clients, conflicts with sub-contractors, irredeemable correspondence among all arrangements, and riddles in the middle of construction fill in as reasons for delays, according to various scholars in the Australian construction industry (Sepasgozar et al. 2015). In Australia, a study identified several factors that contribute to delays in public-sector projects, including new rules and headings, environmental circumstances, structure in referring to cases, design modifications, and ground conditions.
Excusable compensable delays are those for which the construction contract provides for more money, such as the money lost by the contractor as a result of the delay, as well as additional time (Jung et al. 2016). This delay was caused by late floods towards the contractor, delays in material support, and a lack of construction, as well as a revised requirement made to the contractor. Non-excusable delays occur when the contractor is not prepared to guarantee additional time or pay.
Excusable Delays
In the case of excusable delays, an increase in execution time is justified, and the contractor may be prepared to recoup delay costs from the customer (Chen et al. 2019). Excusable delays consistently coordinate delays that the client is concerned about, as well as delays that the provider is especially aware of. Generally, delays caused by circumstances beyond the contractor's control and unanticipated delays caused by social gatherings at the time of contracting will be considered excusable delays by the courts. In a standard method excusable delay condition, such as the one used by the AIA, the contractor is exempt from liability solely for delays caused by the client's acts or inactions, as well as other social gatherings working directly with the client and occurrences outside the contractor's control. Work disagreements, the disillusionment of the contractor's subcontractors or material suppliers to perform on schedule, altering damaged work or dislodging broken materials, or an unintelligible environment that is not amazing nearby are all reasons for delays and mounting unemployment deficits (Yaseen et al. 2020).
Moving ahead through a court or authority request that a delay is appropriate under the appreciation conditions, the contractor is not required to pay the client penalties for late fulfilment and is prepared for a period of improvement to finish the organisation. Regardless, if the court or authority determines that the delay was not justified, the contractor will be held liable for the client's damages. The court or authority might award damages based on the estimated lost project utilisation between the construction impeccability date and the assured satisfaction date, or, in some cases, the benefits whose tragedy was sufficiently obvious due to the delay (Senouci et al. 2016). However, these general guidelines are not unflinchingly basic, and within unambiguous limits, social affairs to an appreciation are permitted to make their norm by truly agreeing on those events that will work with inexcusable, compensable, and excusable delays, as well as the legitimately confining structures that should be followed for delays to be considered compensable or excusable. Courts are biassed to remain conscious of building plans as created by tenaciously making recurrence, even where the assertion is excessive, and the client interacts with the terms. Genuine criticism of the contractor's design to receive more remuneration for loosening up work is necessary to retain the parties' agreement if the scope of work is enlarged (Durdyev and Hosseini 2019).
Concurrent Delays
When two unessential delays influence work at the same time, this is known as a concurrent delay. These delays might originate from a variety of factors, including a shady party, such as a two-party or no-party situation, for example. The delays are consistent in various forms. For example, a client should not be at risk of compensable delay as a result of their failure to generously provide the contractor with plans or options during a period of massive flooding that causes the project to be delayed uninhibitedly. When concurrent delays are used, the client and the contractor are both responsible for the costs incurred as a result of the delay and may not seek reimbursement from one another (Atibu 2015).
Several courts, on the other hand, collaborate with social gatherings to transfer grievances between them, anticipating the desire of large strong areas for truly genuinely is. Modern planning tactics have aided courts in resolving disputes about the impact of each party's delays and the true extent of each party's most recent delay (Bagaya and Song 2016). To recoup delays from the customer, the contractor does not have to be fully removed from project management.In situations when the client's actions or inactions force the contractor to operate inefficiently or haphazardly, the contractor may be able to seek delay damages. For example, if a contractor is required to work around a client's large party, and this approach causes the contractor to complete the job faster than anticipated, the customer should be liable to the contractor for the additional time (Atibu 2015).
Compensable Delays
Delays in the completion of a project do not always occur in the context of a spectacular event. Various social situations as frequently as possible keep them firmly above the level of the job. Construction delays were investigated in several parts of the world. A significant portion of construction project delays are not an unquestionably foreseeable and unavoidable effect of contractor issues; rather, it is common to either the client's shortfall or a nonpartisan event summing up these delays are excusable and compensable (Bajjou and Chafi 2020). Late piece plans, stunning figuring out the union, nonappearance of supplies, stirred up assessment, and general cost needs are among the main evaluations. The insane-looking layer is the result of the contractors' requirements (Larsen et al. 2016). The second layer includes the reasons for erroneous data and rich heading shifts between owners and experts, and the third layer includes industry-related issues such as a lack of materials, and assets, government tactics towards outside experts, and the country's situation. Two of the delays caused by these three levels are a regular and predictable result of compensable and excusable delays.
Construction delay is a wellspring of huge debates and cases provoking instances because of the trading value of time for the two customers in terms of execution and contractor in terms of cash. To regulate these circumstances, a concept is illustrated in which the possible delay situation is seen precisely on time near the commitment to meet such needs (Lessing et al. 2017). This topic is addressed in a significant number of general conditions techniques in typical types of construction contracts. Under certain circumstances, a contractor may be entitled to an extension of time and guarantee delay damages if the delays are an obvious and unavoidable result of the client's issue or a fair event, and in any case, the contractor will be liable for liquidated damages if the delay is due to the contractor's failure to deliver (Safapour et al. 2017).
Critical Delays
Critical delays, according to the researchers, occur when the contractor is significantly distant from finishing the job on the scheduled satisfaction date specified in the Contract. This idea is based on the Critical Path Method (CPM) plan, which outlines the fundamental tasks of a building project (Gebrehiwet and Luo 2017). Basic exercises are offered in the execution of all projects, regardless of the type of timetable being used. The controlling piece of work is sometimes shown as these fundamental activities. CPM needs to attain three top positions: To determine the project's completion date, to determine how much each improvement in the timetable might slide without causing the project to fail, and to determine which exercises in the schedule would cause the supervisor to bet on the project's end date slipping if they lapsed.
Non-critical delays should be identified as those that do not affect the project's completion date in any manner but do impede job progress (Zidane and Andersen 2018). Both non-excusable and excusable delays, it is fair to say, are thinking about everything delays. Non-critical delays are now a free delay technique.
Causes of Costs and Time Overrun
In Australia, researchers discovered 16 major elements that cause mishaps and cost overruns. Association research was conducted with the client, which revealed the link between enabled specialists and contractors in Australia (Nyoni and Bonga 2017). They discovered that back and piece tactics, astonishing sorting out associations, requires materials, swindled assessments, and general cost insufficiencies were the foundations for cost overruns and delays in Australian building projects. The most fundamental delay causes, according to the contractors, were straightforwardness and sponsorship of shop drawings, contractor progress delays, customer location, and diagram alterations. The actual sources of delay, according to the fashioners and modellers, were financial concerns throughout construction, subcontractor coordination, and the client's sluggishness (Shah 2016).
Causes of Delay in Time
In the construction sector, delays are a major concern that prevents projects from being completed on time. The usual source of building delays is project partners, such as specialists and clients, as well as contractors. These three main meetings bring together many reasons for building project delays.
External factors
External linked delay factors have been identified as one of the tactics for explaining plan delays in building projects in a few studies. Cost increases, a bad atmosphere, work disputes and strikes, government regulations, tardy award issuing, and, for the most part, typical unrests and convictions were all significant, according to researchers. In another assessment, the most significant legitimisation for the delay was established as a delay in receiving work licences from specialists, with dreadful climatic circumstances as a big side interest for outside linked delays. As a result, there has been a delay in obtaining licences from a massive pile of shown instructed specialists, a fluctuating climate impact on construction exercises, a storm impact on construction exercises, division of utilities in site, such as water, impact, and phone, the impact of social and social parts, improvement control and limitation at the work site, misfortune amidst construction, changing site conditions, changes in government heading and rules, and a delay in giving relations.
Identifying the Factors That Affect Delays in Cost
The reasons for construction project delays vary, starting with one expert and then moving on to the next. The usual tactics of building delay reasons were summarised by the researchers. They organised them into nine groups: money, changes, planning and controlling structures, government development, environment, gear, work, extremely limited connections, and materials.
Critical Factors
Researchers looked into the causes of delays at 180 public workouts in Melbourne. Plot structures, office and private, educational structures, healthcare workplaces, and media transmission working conditions were among the projects (Ansah and Sorooshian 2017). The findings revealed that communication with the project's originators, client changes, climate, site circumstances, late supply, financial constraints, and augmentation in degree are all important factors in project delays. According to the perspectives of made experts and contractors, the top ten most important reasons for delays in construction projects with standard charts in Melbourne were: client block, inexperienced contractor, spreads and supporting, subcontractors, slow appearance to a decision, confusing planning, and word limit.
7. MethodologyFollowing the trim review and evident need for answers for project delays, a blueprint study was created to gather data from Australian building professionals. The above meaningless summary has gathered over 50 elements that impact project time and expense overruns in various countries, starting with one side of the world and progressing across timespans (Jalal and Shoar 2017). In any case, these solid regions for are the conditions and normal parts of Australia from a financial level, project types, geographic area, and occupation factors that are told about Australia, so it has been chosen factors proportionate to the chance of progress projects and stresses in Australia.
8. Research DesignThe initial step of this enquiry is the notion of seeing and displaying the concerns, as well as spreading out the evaluation objectives and evaluating the research approach. The investigation's second phase focuses on research. Time and cost overruns were taken into consideration. The third stage of the evaluation included a field outline, which included the owners, specialists, and contractors, as well as a few guaranteed examples obtained throughout the field research (Al-Hazim et al. 2017). The fourth time the establishes the chart layout and approach, wrapping the graph into a representation of conferring contractors, owners' affiliations, and specialists. The purpose of the pilot research was to ensure that the strategic questions are evident and that a large store of that aid is available to achieve the investigation's goal. The chart was reevaluated in light of the pilot study's potential delayed aftereffects (Mahamid 2017).
9. How should the delay be avoided or managed1. Deal with scope creep and stick to a strict schedule
Failure to adhere to the project timeline might put the contractor in danger. Scope creep is a great way to avoid delays on various construction projects. Scope creep occurs when a project's requirements grow as it progresses (Alsuliman 2019). The extra effort, resources, and time required to finish the project are all considered scope creep costs. When scope creep starts to cause issues that might lead to reorganisation, you need to be sure you have fully focused on it.
2. Show both acceptable and unacceptable delays
There are acceptable and unacceptable delays, and they should be identified before the project begins. The contractor's setback is an unforgivable delay. This includes suppliers and subcontractors, as well as anybody else who is bound by the contractor's obligations. The contractor is responsible for the charges as soon as an unavoidable delay develops (Al-Hazim and Salem 2015).
3. Plan ahead of time to avoid inexcusable construction delays.
It might take up to a month to attract an organiser or master to your site. Various contractors require time to prepare quotations and schedule fill, among other things. You should know who you will need ahead of time and keep an eye out for when you will need them. Begin gathering bids and planning the resources you will need to arrive on time and on budget. This avoids any issues with contractors and untouchables that you have agreed to (Zarei et al. 2018). You commit to any delays caused by not acquiring them soon enough if you want them to be devoted to their task. It is suggested that you begin offering and booking around 3 months ahead of time.
4. Better Management
Project managers are the persons who are ultimately responsible for ensuring that a project stays on track. Not having the greatest frontal cortex managers leads to delays and other problems. A good manager understands how to commit to jobs and duties. Subject matter experts, subcontractors, product suppliers, and orders are all coordinated by them. Moving aside from the fact that they are powerful, they do so with a specific goal in mind: to minimise delays. They will also know how to collect data in the event of delays. A profitable building project requires organised administration (Ruqaishi and Bashir 2015).
10. ConclusionBuilding projects are generally hampered, especially during the construction phase. Australia's construction projects are not very impressive. They can cause delays as well as cost overruns. Construction delays can be caused by a variety of factors. Construction projects in Australia were at risk of unexpected delays, delaying their advantages and improvements. This was the result of a variety of containable and uncontainable factors. Construction is one of the most promising areas of Australia's agricultural economy, accounting for about 6.8% of GDP. Dams, seaports, air terminals, roads, buildings, and other infrastructure projects are all being built at a rapid pace. Government investment in construction projects reached a record high of 5.478 billion Australian dollars in 2018. This is a clear indication of the government's intention to invest in transportation infrastructure. Obviously, the lawmaking body has encountered delays in construction projects due to dissatisfaction with government planning along its opulent length. This situation is clearly growing all the time, and the compromising conclusion and results have had an impelling influence in the fifth planning period of 2017-2021, which is essentially more unreasonably influencing the project's end customer through delays and a limit miscalculation. Similarly, delays in major projects like roads, buildings, and dams impose a halt on the affiliation's core ambitions and put pressure on the social affair, resulting in additional costs that were not anticipated. The Australian government is committed to assisting the construction industry by providing workspace to contractors, who are the primary clients of building projects.
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