CAUSES, EFFECTS AND METHODS OF MINIMIZING DELAYS IN CONSTRUCTION PROJECTS

CAUSES, EFFECTS AND METHODS OF MINIMIZING DELAYS IN CONSTRUCTION PROJECTS KANG SIK WEI UNIVERSITI TEKNOLOGI MALAYSIA

CAUSES, EFFECTS AND METHODS OF MINIMIZING DELAYS IN CONTRUCTION PROJECTS KANG SIK WEI A report submitted in partial fulfillment of the requirement for the award of the degree of Bachelor of Civil Engineering Faculty of Civil Engineering Universiti Teknologi Malaysia APRIL 2010

iii ` To my Beloved Parents

iv ACKNOWLEDGEMENT I would like to express my sincere appreciation to my supervisor Professor Madya Dr. Rosli bin Mohamed Zin and Professor Dr. Wahid bin Omar for the guidance, assistance, criticism, and suggestions on this study. To those who had contributed assistance and advice in this study, either directly or indirectly, yet their names are not cited here, they deserve my greatest gratitude. Millions thanks to all. Last but not least, I would like to thank my family members and my friends, who had given a lot of encouragement and motivation to complete this study.

v ABSTRACT Construction delays can be defined as the late completion of work compared to the planned schedule or contract schedule. Construction delays can be minimized only when their cause are identified. The objective of this study was to identify the major causes of construction delays, the effects of delays, and methods of minimizing construction delays. This study was carried out based on literature review and a questionnaire survey. A total of eight groups were contributed to the cause of construction delays, six factors that effects delays and fifteen methods of minimizing construction delays were identified based on literature review. The questionnaire survey was distributed to the target respondent in UTM construction site. The objectives of the study were successfully achieved. The top three most important factors that contributed to the causes of delays were late in revising and approving design documents, delays in sub-contractors work, and poor communication and coordination change orders by owner during construction. Contractor-related delays was ranked the most significant groups that cause delays, followed by client-related delays, and consultant-related delays. Time and cost overrun were the common effects of delays in construction projects. To minimize delays in construction projects it has been identified that the top three effective methods of minimizing construction delays includes: site management and supervision, effective strategic planning, and clear information and communication channels.

vi ABSTRAK Kelewatan dalam pembinaan dapat didefinasikan sebagai kelewatan atas segala kerja yang patut disiapkan jiika berbanding dengan jadual yang direncanakan ataupun jadual kontrak. Kelewatan dalam pembinaan boleh dikurangkan sebaik sahaja punca-punca tersebut dikenalpasti. Objektif bagi kajian ini adalah untuk mengenalpasti punca-punca utama, kesan-kesan dan kaedah yang dapat digunakan untuk mengurangkan kelewatan dalam pembinaan. Kajian ini telah dibuat berdasarkan tinjauan literatur dan soal selidik. Sebanyak lapan kumpulan puncapunca bagi kelewatan dalam pembinaan, 6 faktor kesan-kesan kelewatan dalam pembinaan dan lima belas kaedah yang dapat digunakan untuk mengurangkan kelewatan dalam pembinaan telahpun dikenalpasti berdasarkan tinjauan literatur. Soal selidik telahpun diedar kepada pihak-pihak yang berkerja dalam UTM projek pembinaan. Objektif bagi kajian ini telahpun dicapai dengan kerjasama kontraktor dan konsultan. Tiga punca utama yang telah menyebabkan kelewatan dalam projek pembinaan ialah kelewatan dalam penyemakan dan pengesahan reka bentuk dokumen, kelewatan dalam kerja sub kontraktor, dan kelemahan dalam komunikasi dan kordinasi bagi pertukaran arahan oleh klien semasa pembinaan dijalankan. Punca yang dikaitkan dengan kontraktor adalah factor yang paling banyak yang dikaitkan dengan kelewatan projek pembinaan, diikuti dengan klien, dan konsulta. Selain itu, penggunaan masa dan wang yang di luar jangkaan adalah kesan-kesan utama yang menyebabkan kelewatan projek pembinan. Bagi kaedah untuk mengurangkan kelewatan projek pembinaan, terdapat tiga kaedah paling berkesan untuk mengurangkan kelewatan dalam projek pembinaan iaitu pengurusan dan pengawasan dalam tapak pembinaan, perancangan yang strategik dan berkesan, dan informasi dan komunikasi yang jelas.

vii TABLE OF CONTENTS CHAPTER TITLE PAGE TITLE DECLARATION DEDICATION ACKNOWLEDGEMENT ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF SYMBOLS LIST OF APPENDICES i ii iii iv v vi vii xi xii xiv xv 1 INTRODUCTION 1.1 Introduction 1 1.2 Problem Statement 2 1.3 Aims and Objectives of the Study 4 1.4 Scope of Work 4

viii 2 LITERATURE REVIEW 2.1 Introduction 5 2.2 Type of Delays 6 2.3 Cause of Construction Delays 11 2.4 Effect of Construction Delays 16 2.5 Methods of Minimizing Construction 18 Delays 2.6 Extension of Time (EOT) 19 2.7 Liquidated Damaged 20 2.8 Conclusion 21 3 RESEARCH METHODOLOGY 3.1 Introduction 22 3.2 Literature Review 22 3.3 Data Collection 23 3.4 Questionnaire Design 23 3.4.1 Section A: 24 Respondent Background 3.4.2 Section B: 24 Causes of Construction Delays 3.4.3 Section C: 25 Effects of Construction Delays 3.4.4 Section D: 26 Methods of Minimizing Construction Delays

ix 3.5 Data Analysis 26 3.5.1 Relative Important Index 27 3.6 Research Methodology 28 3.7 Conclusion 29 4 ANALYSIS AND DISCUSSIONS 4.1 Introduction 30 4.2 Data Collection 30 4.3 Analysis of Results 33 4.3.1 Factors and Groups that Causes Delays 33 4.3.1.1 Factors of Clients Related Delays 34 4.5.1.2 Factors of Contractor Related Delays 37 4.3.1.3 Factors of Consultant Related Delays 40 4.3.1.4 Factors of Material Related Delays 42 4.3.1.5 Factors of Labor Related Delays 44 4.3.1.6 Factors of Equipment Related Delays 45 4.3.1.7 Factors of External Related Delays 48 4.3.1.8 Ranking of Factors that Causes Delays 50 4.3.1.9 Group Analysis. 53 4.3.2 Effect of Construction Delays 54 4.3.3 The Methods of Minimizing Construction Delays 56 4.4 Summary 58

x 5. CONCLUSIONS AND RECOMMENDATION 5.1 Introduction 59 5.2 Conclusions 59 5.2.1 The Major Causes of Delays 60 5.2.2 The Common Effects of Delays 60 5.2.3 The Methods of Minimizing Construction Delays 61 5.3 Recommendation 61 REFERENCES 62 APPENDICES 65

xi LIST OF TABLES TABLE NO TITLE PAGE 2.1 List of causes of delay categorized into 8 groups 11 2.2 Methods of minimizing construction delays 18 4.1 Questionnaire distribution and responses 31 4.2 The result of factors of client related delays 35 4.3 The result of factors of contractor related delays 38 4.4 The result of factors of consultant related delays 40 4.5 The result of factors of material related delays 42 4.6 The result of factors of labor related delays 44 4.7 The result of factors of equipment related delays 46 4.8 The result of factors of external related delays 47 4.9 Ranking of factors that causes delays 49 4.10 Result of effect of delays 54 4.11 Result of methods of minimizing construction 56 delays

xii LIST OF FIGURES FIGURE NO TITLE PAGE 2.1 Delay categories 9 2.2 Factors that contributed to the causes of delays 15 2.3 Effects of Construction Delays 17 3.1 A flow chart of Research Methodology 28 4.1 Total number of distributed 31 4.2 Total number of respondents 32 4.3 Factors of client related delays 36 4.4 Factors of contractors related delays 39 4.5 Factors of consultant related delays 41 4.6 Factors of material related delays 43 4.7 Factors of labor related delays 45 4.8 Factors of equipment related delays 46

xiii 4.9 Factors of external related delays 48 4.10 Top twenty factors that contributed to the 52 causes of delays 4.11 The common effects of delays 54

xiv LIST OF SYMBOLS I - Relative Importance Index Wi - Weight assigned to ith response Xi - Frequency of the ith response given as percentage of the total responses for each factors i - Response category index = 1, 2, 3, 4, 5

xv LIST OF APPENDICES APPENDIX TITLE PAGE A Questionnaire Form 65

1 CHAPTER 1 INTRODUCTION 1.1 Introduction In the study of Assaf & Al-Hejji (2006), delay could be defined as the time over run either beyond completion date specified in a contract or beyond the date that the parties agrees upon for delivery of a project. It is a project slipping over its planned schedule and is considered as common problem in contruction projects. Bassioni & El-Razek (2008) identified that delay in construction project is considered one of the most common problems causing a multitude a negative effect on the project and its participating parties. Therefore, it is essential to identify the actual causes of delay in order to minimize and avoid the delays and their corresponding expenses. Arditi & Pattanakitchamrron (2006) stated that delays in construction can cause a number of changes in a project such as late completion, lost productivity, acceleration, increased costs, and contract termination. The party experiencing damages and the parties responsible for them in order to recover time and cost. However, in general delay situations are complex in nature. A delay in an activity may not result in the same amount of project delay. A delay caused by a party may or may not affect the project completion date and may or may not cause damage to

2 another party. A delay may occur concurrently with other delays and all of them may impact the project completion date. Delays caused by the client such as late submission of drawings and specifications, frequent change orders, and inadequate site information generate claims from both the main contractors and subcontractors which many times entail lengthy court bettles with huge financial repercussions. Delays caused by contractors can generally be attributes to poor managerial skills. Lack of planning and a poor understanding of accounting and financial principles have led to many a contractor s downfall. 1.2 Problem Statement Many construction projects have faced various problems and delay of time is one of the major problems. The delay in dispute settlement has manifold effects such as it will give detrimental to the relationship between owner and contractor. Moreover, it will also contribute to the cost and time overruns. The most serious problem is it sends bad signals to foreign investors thereby slowing down the national progress. It is generally said that the contract language is considered difficult to comprehend and they are therefore a major source of disputes. The study of Assaf (2006) was carried out the main causes of delay in large building projects in Saudi Arabia. The survey covered a random sample of contractors, consultants, and owners. Ahmed (2000) carried out a study to identify the major causes of delays in building construction in Florida, and then allocated the responsibilities and types of delays for each cause. In the study of Ahmad (2003), delays of time in a project, which has divided the reason of construction delays into 2 parts, i.e. lacking of material and other factors include labour, material and equipment, and financial problem. Besides those

3 factors, other additional factors are weather, late of receiving order, change of structure, plan specification error, force majeure, and workers strike. This research had been divided into 8 factors of the reasons of construction delays. Elina (2008) studied the project construction delay which is focus in Johor Bahru about the reasons and impact of construction delays. Although our research are in the same state, but my research would be more concentrate on campus construction project and the problems faced in university construction site would be slightly different from other area. Sambasivan and Yau (2007) conducted a survey on the causes and effects of delays in Malaysian Construction Industry, which was focus on the reasons and impact to the project delays in all Malaysia. Their scope of work is very wide while my research is just focus on UTM construction site.

4 1.3 Aim and Objectives of the Study This research was aimed at identifying the major causes of delay, effect of delay and methods of minimizing delays in construction project in UTM construction project. To achieve the aims, objectives have been identified as following: a) To identify the main reasons of construction delay in UTM construction project b) To identify the effect of construction delay in UTM construction project c) To identify the methods of minimizing construction delay in UTM construction project 1.4 Scope of work The scope of the research is mainly focus on literature review and a questionnaire survey. Project is focus on UTM main campus construction site. The questionnaire survey would be designed based on the causes of construction delays, effects of construction delays and the methods of rectification of the construction delays.

5 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction In the study of Alaghbari, et al. (2007), delay is generally acknowledged as the most common, costly, complex and risky problem encountered in construction projects. Because of the overriding importance of time for both the Owner (in terms of performance) and the Contractor (in terms of money), it is the source of frequent disputes and claims leading to lawsuits. Delays caused by the client such as late submission of drawings and specifications, frequent change orders, and incorrect site information generates claims from both the main contractors and sub-contractors which many times entail lengthy court battles with huge financial repercussions. Delays caused by contractors can generally be attributed to poor managerial skills. Lack of planning and a poor understanding of accounting and financial principles have led to many a contractor s downfall. Under some circumstances, a Contractor may be entitled to claim delay damages if he finishes later than an Owner-accepted early completion schedule but is still ahead of the official contract completion date. This may occur if the Contractor establishes a direct cause-and-effect relationship between Owner s breach of a

6 contractual obligation and the delay. In addition, the Contractor has the burden of establishing its increased costs as a result of the delay. Majid (2006) stated that delays can be minimized when their causes are identified. Identification of the factors that contributed to the causes of delays has been studied by numerous researchers in several countries. Delay is a situation when the contractor, consultant, and client jointly or severally contributed to the noncompletion of the project within the original or the stipulated or agreed contract period. 2.2 Types of delay Theodore (2009) mentioned that there are four basic ways to categorize type of delays: a) Critical or noncritical b) Excusable or non-excusable c) Compensable or non-compensable d) Concurrent or non-concurrent In the process of determining the effect of a delay on the project, the analyst must determine whether the delay is critical or noncritical. The analyst must also assess if delay are concurrent. All delays that are identified in the analysis will be either excusable or non-excusable. Delay can be further categorized into compensable or non-compensable delays.

7 2.2.1 Critical Versus Non-Critical Delays Delays that affect the project completion, or in some cases a milestone date, are considered as critical delays, and delays that do not affect the project completion, or a milestone date, are noncritical delays. If these activities are delayed, the project completion date or a milestone dater will be delayed. The determining which activities truly control the project completion date depends on the following: a) The project itself b) The contractor s plan and schedule (particularly the critical path) c) The requirement of the contract for sequence and phasing d) The physical constraint of the project, i.e. how to build the job from a practical perspective

8 2.2.2 Excusable versus Non-Excusable Delays All delays are either excusable or non-excusable. An excusable delay is a delay that is due to an unforeseeable event beyond the contractor s or the subcontractor s control. Normally, based on common general provisions in public agency specifications, delays resulting from the following events would be considered excusable: a. General labor strikes b. Fires c. Floods d. Acts of God e. Owner-directed changes f. Errors and omissions in the plans and specifications g. Differing site conditions or concealed conditions h. Unusually severe weather i. Intervention by outside agencies j. Lack of action by government bodies, such as building inspection Non-excusable delays are events that are within the contractor s control or that are foreseeable. These are some examples or non-excusable delays: a. Late performance of sub-contractors b. Untimely performance by suppliers c. Faulty workmanship by the contractor or sub-contractors d. A project-specific labor strike caused by either the contractor s unwillingness to meet with labor representative or by unfair labor practices

9 Figure 2.1: Delay Categories (Theodore, 2009) 2.2.3 Compensable Delays versus Non-Compensable Delays A compensable delay is a delay where the contractor is entitled to a time extension and to additional compensation. Relating back to the excusable and nonexcusable delays, only excusable delays can be compensable. Non-compensable delays mean that although an excusable delay may have occurred, the contractor is not entitled to any added compensation resulting from the excusable delay. Thus, the question of whether a delay is compensable must be answered. Additionally, a nonexcusable delay warrants neither additional compensation nor a time extension. Whether or not a delay is compensable depends primarily on the terms of the contract. In the most cases, a contract specifically notes the kinds of delays that are non-compensable, for which the contractor does not receive any additional money but may be allowed a time extension.

10 2.2.4 Concurrent Delays The concept of concurrent delay has become a very common presentation as part of some analysis of construction delays. The concurrency argument is not just from the standpoint of determining the project s critical delays but from the standpoint of assigning responsibility for damages associated with delays to the critical path. Owners will often cite concurrent delays by the contractor as a reason for issuing a time extension without additional compensation. Contractors will often cite concurrent delays by the owner as a reason why liquidated damages should not be assessed for its delays. Unfortunately, few contract specifications include a definition of concurrent delay and how concurrent delays affect a contractor s entitlement to additional compensation for time extension or responsibility for liquidated damages. In analyzed concurrent delays, each delay is assessed separately and its impact on other activities and the project duration is calculated. There are some guidelines for concurrent delays classification. Firstly, if excusable and nonexcusable delays occur concurrently, only a time extension is granted to the contractor. Next, if excusable with compensation and excusable without compensation delays occur concurrently, the contractor is entitled to time extension, but not to damages. Lastly, if two excusable with compensation delays occur concurrently, the contractor is entitled to both time extension and damages. In addition, although the guidelines are useful for the purpose of carrying out the delay analysis, it is in the best interest of all parties involved in a construction project to agree, at the beginning, the definitions of such delays and accommodate them throughout the contract language. There was no reliable method to differentiate the impact of contractor caused delays from client caused delays until the development of CPM schedule analysis is developed. By the available of sophisticated computerized techniques, the possibility to segregate the impacts of apparently concurrent client and contractor delays would be higher.

11 2.3 Causes of Delay There are many factors that contributed to causes of delays in construction projects. These range from factors inherent in the technology and its management, to those resulting from the physical, social, and financial environment. There are in total of seven groups of causes for delay in construction project: Table 2.1: List of causes of delay categorized into 8 groups (Theodore, 2009) Group 1 : Causes of delay by client No. Causes of delay 1 Delay in progress payments by owner 2 Delay to furnish and deliver the site 3 Change orders by owner during construction 4 Late in revising and approving design documents 5 Delay in approving shop drawing and sample materials 6 Poor communication and coordination 7 Slowness in decision making process 8 Conflicts between joint-ownership of the project 9 Suspension of work

12 Group 2 : Causes of delay by contractor No. Causes of delay 1 Difficulties in financing project by contractor 2 Conflicts in sub-contractors schedule in execution of project 3 Rework due to errors during construction Conflicts between contractor and other parties 4 (consultant and owner) 5 Poor communication and coordination 6 Ineffective planning and scheduling of project 7 Improper construction methods implement 8 Delays in sub-contractors work 9 Inadequate contractor's work 10 Frequent change of sub-contractors 11 Poor qualification of the contractor's technical staff 12 Delays in site mobilization Group 3: Causes of delay by Consultant No. Causes of delay 1 Delay in approving major changes in the scope of work 2 Poor communication and coordination 3 Inadequate experience of consultant 4 Mistakes and discrepancies in design documents 5 Delays in producing design documents 6 Unclear and inadequate details in drawings 7 Insufficient date collection and survey before design 8 Un-use of advanced engineering design software

13 Group 4 : Causes of delay by materials No. Causes of delay 1 Shortage of construction materials in market 2 Changes in material types and specifications during construction 3 Delay in material delivery 4 Damage of sorted material while they are needed urgently 5 Delay in manufacturing special building materials 6 Late procurement of materials Group 5 : Causes of delay by equipment No. Causes of delay 1 Equipment breakdowns 2 Shortage of equipment 3 Low level of equipment-operator's skill 4 Low productivity and efficiency of equipment 5 Lack of high-technology mechanical equipment Group 6 : Causes of delay by labors No. Causes of delay 1 Shortage of labors 2 Workinng permit of labors 3 Low productivity level of labors 4 Personal conflicts among labors

14 Group 7 : Causes of delay by external factors No. Causes of delay 1 Effects of subsurface conditions (e.g. soil, high water table, etc.) 2 Delay in obtaining permits from municipality 3 Hot weather effect on construction activities 4 Traffic control and restriction at job site 5 Accident during construction 6 Changes in government regulations and laws Delay in providing services from utilities (such as water, 7 electricity) Delay in performing final inspection and certification by a third 8 party

CLIENT Conflicts between joint-ownership of the project LABOR Delay in progress payments Delay to furnish and deliver the site Change orders by owner during construction Late in revising and approving design documents Delay in approving shop drawing and sample materials Poor communication and coordination Low productivity level of labors Personal conflicts among labors Shortage of labors Slowness in decision making process Suspension of work by client Working permit of labors MATERIAL Changes in material types and specifications during construction Poor communication and coordination Delay in approving major changes in the scope of work Inadequate experience of consultant Unclear and inadequate details in drawings Delays in producing design documents Insufficient date collection and survey before design Mistakes and discrepancies in design documents Un-use of advanced engineering design Shortage of construction materials in market Delay in material delivery Damage of sorted material while they are needed urgently Delay in manufacturing special building materials Late procurement of materials EQUIPMENT CONTRACTOR Conflicts between contractor and other parties Lack of high-technology mechanical equipment Low productivity and efficiency of equipment Low level of equipmentoperator's skill Shortage of equipment Equipment breakdowns Difficulties in site mobilization Poor communication and coordination Rework due to errors during construction Conflicts in sub-contractors schedule in execution of project Difficulties in financing project Delays in sub-contractor s work Effects of subsurface conditions Hot weather effect on construction activities Accident during construction Delay in providing services from utilities EXTERNAL Poor qualification of the contractor's technical staff Improper construction methods implement Ineffective planning and scheduling of project Frequent change of sub-contractors Delay in obtaining permits from municipality Traffic control and restriction at job site Changes in government regulations and laws Inadequate contractor's work Delay in performing final inspection and certification by a third party CONSTRUCTION DELAYS CONSULTANT Figure 2.2: Factors that contributed to the causes of delays

16 2.4 Effects of Delay Aibinu and Jagboro (2002) studied the effects of construction delays on project delivery in Nigerian construction industry. The six effects of delay identified were: a) Time overrun; b) Cost overrun; c) Dispute; d) Arbitration; e) Total abandonment; and f) Litigation. In the study of Manavazhia and Adhikarib (2002), delays in the delivery of materials and equipment to construction sites are often a contributory cause to cost overruns in construction projects in developing countries. The actual impact of these delays on project costs was found to be on average, only about 0.5 per cent of the total budgeted cost of the projects.

17 Effect of Construction Delays Time Overrun Cost Overrun Dispute Arbitration Total Abandonment Ligitation Figure 2.3: Effects of Construction Delays

18 2.5 Methods of Minimizing Construction Delays When a construction delay occurs, there is no question that the Owner suffers financially. But the extent to which an Owner can recover its loss of income from the Contractor, and more importantly minimize the risk that such delays will occur, depends largely on how the construction contract was drawn up. Based on several studies of project success factors and rectification of delays in construction project, a total of 15 methods have been identified as follows: Table 2.2: Methods of Minimizing Construction Delays No Methods 1 Frequent progress meeting (Majid, 2006) 2 Use up-to-date technology utilization (Majid, 2006) 3 Use proper and modern construction equipment (Majid, 2006) 4 Use appropriate construction methods (Majid, 2006) 5 Effective strategic planning (Majid, 2006) 6 Proper material procurement (Majid, 2006) 7 Accurate initial cost estimates (Majid, 2006) 8 Clear information and communication channels (Majid, 2006) 9 Frequent coordination between the parties involved (Majid, 2006) 10 Proper emphasis on past experience (Majid, 2006) 11 Proper project planning and scheduling (Majid, 2006) 12 Complete and proper design at the right time (Assaf, 2006) 13 Site management and supervision (Long, 2008) 14 Collaborative working in construction (Kumaraswamy,1997) 15 Compressing construction durations (Long, 2008)

19 2.6 Extension of time (EOT) Hamid and Torrance (2006) identified extension of time (EOT) as an excusable delay that occurs when the contractor is delayed by occurrences beyond his control. The Government of Malaysia P.W.D. Form 203A (Rev. 10/83) form of contract is widely used in public sector construction projects (Government of Malaysia, 1983). It provides 11 clauses whereby the contractor is eligible for an extension of time. Data related to extension of time were: (1) Extension of time (EOT) due to clause 43a, force majeure; (2) EOT due to clause 43b, exceptionally inclement weather; (3) EOT due to clause 43c, direction given by Superintending Officer (SO) consequential upon disputes with neighboring owner; (4) EOT due to clause 43d, loss or damage occasioned by allowable contingencies; (5) EOT due to clause 43e, Superintending Officer s instructions; (6) EOT due to clause 43f, contractor not having received in due time necessary instructions, drawings, levels or instructions in regard to the nomination of subcontractors and/or suppliers; (7) EOT due to clause 43 g, delays in giving possession of site; (8) EOT due to clause 43 h, any action due to local combination of workmen strike, or lockout affecting any of the trades employed upon the works; (9) Extension of time due to clause 43i, delay on the part of artists, tradesmen or others engaged by Government in executing work not forming part of the contract; (10) EOT due to clause 43j, contractor s inability, for reasons beyond his control, which he could not reasonably have foreseen at the date of closing tenders; (11) EOT due to clause 43k, delays on the part of nominated suppliers.

20 2.7 Liquidated damages According to Twyford (2007), in the construction contracts liquidated damages clauses are usually inserted to encourage compliance with time provisions, in particular, completion of the work and payment on time. In regard to completion of the work, a typical clause will provide that if the work is not completed by the extended date for completion, liquidated damages, at the daily rate provided by the schedule, shall become due and payable. A similar provision is made for overdue payments under the contract. Liquidated damages clauses have the virtue of informing both parties to a contract in advance what the damages payable for an identified breach will be at the time of entering the contract. This can be equal advantage to the party who must pay the damages as it is to the party receiving the damages. The upper limit of the damages payable is fixed and a party can take this into account in the initial negotiations. It is not uncommon for a contractor who knows he or she cannot complete within the required time to add the liquidated damages equivalent of the time overrun to the tendered price.

21 2.8 Conclusion Delays occur in every construction project and the magnitude of these delays varies considerably from project to project. Some projects are only a few days behind the schedule; some are delayed over a year. So it is essential to define the actual causes of delay in order to minimize and avoid the delays in any construction project. There is a wide range of views for the causes of time delays for engineering and construction projects. Some are attributable to a single party, others can be ascribed to several quarters and many relate more to systemic faults or deficiencies rather than to group or groups. The successful execution of construction projects and keeping them within estimated cost and prescribed schedules depend on a methodology that requires sound engineering judgment.

22 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction This research methodology will described and explained based on the objectives and the aims of the study. In this study, we will focus on the literature review and the questionnaire survey targeted at UTM construction project. Furthermore, statistical methods would be used to analyze the data collection from the questionnaire survey and follows by discussions section, recommendations, and conclusion. 3.2 Literature Review The literature review was done through internet, construction management books, and engineering journals. By referring to the previous literature, the information from the causes of construction delays, effects of construction delays, and the method of rectification of construction would be used to develop the questionnaire survey in order to collect data from the targeted respondent.

23 3.3 Data Collection Data which is obtained from the questionnaires will be used to analyzed with an appropriate method which may result in the successful of the research. Data collection from the different type of questionnaire would be analyzed and answered to the objective of the study. 3.4 Questionnaire Design A questionnaire survey was designed based on the objectives of the study, which are causes of construction delays, effects of construction delays and the method rectification of construction delays. A questionnaire survey was developed to get the opinion and understanding from the experienced respondents regarding to the construction delays problem. The questionnaires are all classified into 4 sections: a) SECTION A : Respondent Background b) SECTION B : Causes of Construction Delays c) SECTION C : Effects of Construction Delays d) SECTION D : Method of Minimizing Construction Delays

24 3.4.1 Section A: Respondent Background In this section, we are trying to obtain the respondents information. The questionnaire includes: The respondent organization The position of the respondent in the company The experience of the respondent in the construction project 3.4.2 Section B: Causes of Construction Delays This section is designed to evaluate the factor that contributes to the causes of construction delays from the previous literature review. There are in total of seven groups of causes for delay in construction project: a) Client b) Contractor c) Consultant d) Materials e) Equipment f) Labor g) External factors

25 The questionnaire is mainly based on Likert s scale of 5 ordinal measures from 1 to 5 according to level of contributing. (5) = Strongly Agree (4) = Agree (3) = Moderate (2) = Disagree (1) = Strongly Disagree 3.4.3 Section C: Effects of Construction Delays For this section, respondents should evaluate the effects of construction delays based on their working experience and their own judgment. There are consists of 6 impacts of construction delays, i.e. time overrun, cost overrun, dispute, arbitration, litigation, total abandonment. The questionnaire is mainly based on Likert s scale of 5 ordinal measures from 1 to 5 according to level of contributing. (5) = Always (4) = Mostly (3) = Sometimes (2) = Seldom (1) = Never

26 3.4.4 Section D: Methods of Minimizing Construction Delays This section is to identify the effective methods of minimizing construction delays. There are in total of 15 methods are identified for this questionnaire used. The questionnaire is mainly based on Likert s scale of 5 ordinal measures from 1 to 5 according to level of contributing. (5) = Very high effective (4) = High effective (3) = Effective (2) = Low effective (1) = Very Low effective 3.5 Data Analysis This data analysis was determined to establishing the relative importance of the various factors that contribute to causes of construction delays, effects of construction delays, and methods rectification of construction delays. There are consists of 3 steps to analyzing the data: Calculating the Relative Importance index (RI) Ranking of factors in each category based on the Relative Importance Index (RI) Determine degree of correlation on ranking the factors among the two groups

27 3.5.1 Relative Important Index Odeh and Battaineh (2002), to determine the ranking of different factors from the viewpoint of contractors and consultants, the Relative Importance Index (I) was computed as: I = ΣWi Xi Σxi (1) Where : i = response category index W i = the weight assigned to ith response = 1, 2, 3, 4, 5, respectively. X i = frequency of the ith response given as percentage of the total responses for each factors.

28 3.6 RESEARCH METHODOLOGY Exploration of sources Discussion with supervisor Problem Identification, Objective, aims of study, and scope of study Title Data Collection Primary Data Secondary Data Records Reference books Observation Journal Questionnaire Newspaper Magazines Analysis of Results Discussion of Results Recommendations and Conclusion Figure 3.1: A Flow Chart of Research Methodology

29 3.7 Conclusion In conclusion, all those steps should be planned before the implementation so that we are always in the track towards the objective of study.

31 CHAPTER 4 ANALYSIS AND DISCUSSIONS 4.1 Introduction This chapter presents the data analysis and discussions based on the questionnaire survey. The collected data were analyzed using the method as mentioned in Chapter Three. 4.2 Data Collection There are in total of seventy sets of survey questionnaire was distributed to the targeted respondent in order to identify the most important factors that cause delays, the common effect of delays, and methods of minimizing construction delays. The survey questionnaires were distributed to the contractors and consultants who are take part in the UTM construction site. The questionnaire was completed by experienced directors, project managers, projects engineers, site manager and designers. The total number of questionnaire distribution and responses has been analyzed and shown in table below.

31 Table 4.1 Questionnaire Distribution and Responses Description Number of Number of Percentage of Distributed respondents Number of Responses Contractor 45 18 52.94 Consultant 25 16 47.06 Total 70 34 100 Consultants 36% Contractors 64% Figure 4.1 Total Number of Distributed Based on the table 4.1 and figure 4.1, the total number of questionnaire distributed to both contractor and consultant are seventy sets which includes contractors forty five sets and consultants twenty five sets. Sixty four per cent of questionnaire survey have been distributed while consultants consist of thirty six per cent of questionnaire survey have been distributed. The total of fifty sets questionnaire have been distributed to both consultants and contractors during their meeting and another twenty sets of questionnaire has been distributed on-site. follow: Twenty sets of questionnaire have been distributed to the construction site as 2 sets from FKA construction site 2 sets from FPPSM construction site

32 4 sets from FAB construction site 2 sets from FKBSK construction site 2 sets from FKE construction site 2 sets from FKM construction site 4 sets from stadium construction site 2 sets from FSKSM construction site Consultants 47% Contractors 53% Figure 4.2: Total Number of Respondents Referring to the table 4.1 and figure 4.2, there are in total thirty four sets of questionnaire has been return back, there were consist of eighteen sets from contractors and sixteen sets from consultants. Fifty three per cent of feedback was come from contractors while another forty seven per cent was come from consultants.

33 4.3 Analysis of Results The objective of conducting the analysis for this section is to establish the factors under the groups of causes identified from the literature review and the ranking according to their significant influence towards construction project delays. A ranking method was used to achieve this objective and the significant of using these methods is it can reveal the most influential factors within each category of causes. 4.3.1 Factors and Groups that Causes Delays The first objective of study related to causes of delays from thirty four sets of questionnaire have been identified and grouped into seven major groups. These factors were ranked in each group based on Relative Importance Index (RI) from the viewpoint of contractor and consultant. The following is a brief description of these factors in each group.

34 4.3.1.1 Factors of Client Related Delays Table 4.2 shows the results of survey analysis of factors of client related delays. Factors to causes of delays were ranked based on relative important index between group of respondent of contractor and consultant. Referring to Table 4.2 and Figure 4.3, late in revising and approving design documents was contribute the most for client related delays by contractors and consultants. Besides that, change orders by owner during construction was ranked second in overall while delay in approving shop drawing and sample materials ranked third. Late in revising and approving design documents ranked first as the most important factor that cause construction delays, the design documents is needed as a reference for the project and also act as a permit so that contractor does not proceed the construction without permission and wasting money for unnecessary site activity. Next, the change orders by owner during construction was ranked second highest among the client related delays group. Change orders in frequent might extend the site activity and affect the whole project scheduling which comes to unable to complete the project on time. Thirdly, delay in approving shop drawing and sample materials which might postpone the site activity to the back and delay the whole project schedule.

35 Table 4.2: The result of factors of client related delays Contractors Consultants Overall Factor Index Rank Index Rank Index Rank Late in revising and approving design documents Change orders by owner during construction Delay in approving shop drawing and sample materials 3.56 1 3.38 1 3.47 1 3.50 2 3.25 3 3.38 2 3.44 3 3.00 9 3.22 3 Slowness in decision making process 3.11 5 3.31 2 3.21 4 Poor communication and coordination 3.28 4 3.13 5 3.20 5 Conflicts between joint-ownership of the project 2.94 6 3.25 3 3.10 6 Delay to furnish and deliver the site 2.89 7 3.13 5 3.01 7 Suspension of work by owner 2.72 8 3.06 8 2.89 8 Delay in progress payments 2.61 9 3.13 5 2.87 9

36 3.70 3.50 3.30 3.10 2.90 CONTRACTORS CONSULTANTS OVERALL 2.70 2.50 1 2 3 4 5 6 7 8 9 Figure 4.3: Factors of Client Related Delays Where: 1 Late in revising and approving design documents 2 Change orders by owner during construction 3 Delay in approving shop drawing and sample materials 4 Slowness in decision making process 5 Poor communication and coordination 6 Conflicts between joint-ownership of the project 7 Delay to furnish and deliver the site 8 Suspension of work by owner 9 Delay in progress payments

37 4.3.1.2 Factors of Contractor Related Delays As shown in Table 4.3, both group of respondent agreed on the ranking of the factors based on relative important index. As referring to table and diagram above, contractors ranked conflicts in sub contractors schedule in execution of project and inadequate contractor s work as top of all the contractors related factors while consultants give the poor communication and coordination factor as the first. Besides that, the contractors choose the poor qualification of the contractor s technical staff as the less contributing to construction delays among all the contractors related factors while consultants prefer the delays in site mobilization as the lowest mark among the factors. Although contractors and consultants are working in the same sector, but their working responsibility are totally different. This is the main reason that both contractors and consultant have different point of view of this contractor related delays factors. In overall, delay in sub-contractors work was ranked top while poor communication and coordination and inadequate contractor's work were ranked second and third. The quality of sub-contractor s work was highly dependent for the construction to proceed faster, otherwise it may delays the construction project. Effective communication and coordination is essential to develop a good team work which may indirectly give a successful to the project. Furthermore, inadequate contractor s work not only will cause the time overrun but also cost overrun. The construction site activity need to redo or demolish as the construction project does not fulfill the requirement.

38 Table 4.3: The result of factors of contractor related delays Contractors Consultants Overall Factor Index Rank Index Rank Index Rank Delays in sub-contractors work 3.06 3 3.81 2 3.43 1 Poor communication and coordination 2.83 9 3.94 1 3.39 2 Inadequate contractor's work 3.11 1 3.63 4 3.37 3 Ineffective planning and scheduling of project Conflicts in sub-contractors schedule in execution of project Improper construction methods implement 2.94 6 3.75 3 3.35 4 3.11 1 3.56 6 3.34 5 3.06 3 3.50 8 3.28 6 Frequent change of sub-contractors 2.89 8 3.63 4 3.26 7 Rework due to errors during construction Conflicts between contractor and other parties 2.94 6 3.56 6 3.25 8 3.00 5 3.50 8 3.25 8 Difficulties in financing project 2.83 9 3.50 8 3.17 10 Delays in site mobilization 2.61 11 3.38 12 2.99 11 Poor qualification of the contractor's technical staff 2.39 12 3.50 8 2.94 12

39 4.10 3.90 3.70 3.50 3.30 3.10 2.90 CONTRACTORS CONSULTANTS OVERALL 2.70 2.50 2.30 1 2 3 4 5 6 7 8 9 10 11 12 Figure 4.4: Factors of Contractor Related Delays Where: 1 Delays in sub-contractors work 2 Poor communication and coordination 3 Inadequate contractor's work 4 Ineffective planning and scheduling of project 5 Conflicts in sub-contractors schedule in execution of project 6 Improper construction methods implement 7 Frequent change of sub-contractors 8 Rework due to errors during construction 9 Conflicts between contractor and other parties 10 Difficulties in financing project 11 Delays in site mobilization 12 Poor qualification of the contractor's technical staff

40 4.3.1.3 Factors of Consultant Related Delays In Table 4.4 shows the results of survey analysis of factors of consultant related delays. Factors of causes of delays were ranked based on relative importance index between respondents of contractor and consultant. Due to different point of view for contractors and consultants, their rank have a big gap if compare with each other. For example, contractors ranked the un-use of advance engineering design software as the first choice to contributing the construction delays for consultant related delays while the survey from consultants had stated that this factor would be the least contributing among the consultant related factors. Table 4.4: The result of factors of consultant related delays Contractors Consultants Overall Factors Index Rank Index Rank Index Rank Delay in approving major changes in the scope of work 3.33 4 3.38 1 3.35 1 Mistakes and discrepancies in design documents 3.50 2 3.06 3 3.28 2 Un-use of advanced engineering design software 3.78 1 2.63 8 3.20 3 Unclear and inadequate details in drawings 3.39 3 2.94 4 3.16 4 Delays in producing design documents 3.28 5 2.94 4 3.11 5 Insufficient data collection and survey before design 2.94 7 3.13 2 3.03 6 Poor communication and coordination 3.06 6 2.94 4 3.00 7 Inadequate experience of consultant 2.83 8 2.81 7 2.82 8

41 4.00 3.80 3.60 3.40 3.20 3.00 CONTRACTORS CONSULTANTS OVERALL 2.80 2.60 1 2 3 4 5 6 7 8 Figure 4.5 Factors of Consultant Related Delays Where: 1 Delay in approving major changes in the scope of work 2 Mistakes and discrepancies in design documents 3 Un-use of advanced engineering design software 4 Unclear and inadequate details in drawings 5 Delays in producing design documents 6 Insufficient data collection and survey before design 7 Poor communication and coordination 8 Inadequate experience of consultant

42 4.3.1.4 Factors of Material Related Delays There are six factors that contributed to the causes of delays related to material delays were identified and ranked from the viewpoint of contractors and consultant. Referring to the table and diagram above, the delay in material delivery was ranked in first for contractors and consultants. This is the most important factor that affects the construction delays. Besides that, the shortage of construction materials in market and changes in material types during construction was ranked third for contractors and second for consultants. Moreover, the damage of sorted material while they are needed urgently was ranked on the bottom for contractors and consultants. This factor can be said as the least influence to the construction delay under the factor of material related delays. Delays in material delivery will affect the cash flow and scheduling while the problem of shortage of construction material at local market, generally, related to material transportation problems to the local market from the place of material production or material distribution centre. Table 4.5: The result of factors of material related delays Contractors Consultants Overall Factors Index Rank Index Rank Index Rank Delay in material delivery 2.89 1 3.38 1 3.13 1 Shortage of construction materials in market Changes in material types during construction Delay in manufacturing special building materials 2.83 3 3.31 2 3.07 2 2.83 3 3.31 2 3.07 2 2.89 1 3.19 4 3.04 4 Late procurement of materials 2.78 5 3.19 4 2.98 5 Damage of sorted material while they are needed urgently 2.56 6 3.00 6 2.78 6

43 3.50 3.40 3.30 3.20 3.10 3.00 2.90 2.80 CONTRACTORS CONSULTANTS OVERALL 2.70 2.60 2.50 1 2 3 4 5 6 Figure 4.6 Factors of Material Related Delays Where: 1 Delay in material delivery 2 Shortage of construction materials in market 3 Changes in material types during construction 4 Delay in manufacturing special building materials 5 Late procurement of materials 6 Damage of sorted material while they are needed urgently

44 4.3.1.5 Factors of Labor Related Delays As shown in Table 4.6, there are five factors of labor related delays were ranked based on relative important index from the perspective of contractor and consultants. Shortage of labors was ranked in first for contractors and consultants. Besides that, the working permit of labors was ranked in second for contractors and third for consultants. The personal conflict among labors was ranked fourth for both contractors and consultants. The shortage of labor will slow down the project progress due to low productive of site activity. In addition, labor productivity is typically measured as a ratio of output per labor-hour, an input. If the low quality of labors is being occupied, therefore it might affect the project schedule and cause the project to delay. Table 4.6: The result of factors of labor related delays Contractors Consultants Overall Factors Index Rank Index Rank Index Rank Shortage of labors 3.33 1 3.38 1 3.35 1 Low productivity level of labors Working permit of labors Personal conflicts among labors 2.89 3 3.19 2 3.04 2 3.00 2 3.00 3 3.00 3 2.39 4 2.75 4 2.57 4

45 3.60 3.40 3.20 3.00 2.80 2.60 CONTRACTORS CONSULTANTS OVERALL 2.40 2.20 1 2 3 4 Figure 4.7 Factors of Labor Related Delays Where: 1 Shortage of labors 2 Low productivity level of labors 3 Working permit of labors 4 Personal conflicts among labors

46 4.3.1.6 Factors of Equipment Related Delays In Table 4.7 shows the results of survey analysis of factors of equipment related delays. Factors of causes of delays were ranked based on relative importance index from the viewpoint of contractor and consultant. This factor of equipment related delays have some different view point among contractors and consultants. Although contractors thought the low level of equipment operator s skill would be the most factors that affect the construction delays but consultants have ranked lack of high technology mechanical equipment as their first choice. By the way, both contractors and consultants still have the same point of view that the equipment breakdown would be the less among all the factors that able to affect the construction delays. The lack of high technology of mechanical equipment is related to low productivity and efficiency of equipment which is particularly true due to old model equipment not able to produce high production and frequent equipment breakdown problem. Table 4.7: The result of factors of equipment related delays Contractors Consultants Overall Equipment Related Index Rank Index Rank Index Rank Lack of high-technology mechanical equipment 2.61 2 3.25 1 2.93 1 Low productivity and efficiency of equipment 2.61 2 3.19 2 2.90 2 Low level of equipment-operator's skill 2.72 1 3.06 3 2.89 3 Shortage of equipment 2.61 2 3.06 3 2.84 4 Equipment breakdowns 2.50 5 2.88 5 2.69 5

47 3.30 3.20 3.10 3.00 2.90 2.80 2.70 2.60 2.50 2.40 1 2 3 4 5 CONTRACTORS CONSULTANTS OVERALL Figure 4.8 Factors of Equipment Related Delays Where: 1 Lack of high-technology mechanical equipment 2 Low productivity and efficiency of equipment 3 Low level of equipment-operator's skill 4 Shortage of equipment 5 Equipment breakdowns

48 4.3.1.7 Factors of External Related Delays There are eight factors of external related delays that contributed to the causes of delays were ranked based on relative important index between contractor and consultant as shown in Table 4.8. Contractors has ranked effective of subsurface and ground conditions, weather effect on construction activities, and changes in government regulations and laws as top three of the external related delays factors while consultants rank delay in providing services from utilities, effect of subsurface and ground conditions, and delay in obtaining permits from municipality as top three of the related factors. The subsurface and ground condition can be considered as the most important external factors that affect the construction delays. If the ground condition is not stable, mean the foundation work are not able to start as settlement might occur in future time. Moreover, weather effect such as thunder storm might affect the construction activity due to safety consideration. Table 4.8: The result of factors of external related delays Contractors Consultants Overall Factors Index Rank Index Rank Index Rank Effects of subsurface and ground conditions 3.11 1 2.88 2 2.99 1 Weather effect on construction activities 2.83 2 2.75 4 2.79 2 Delay in providing services from utilities 2.50 8 2.94 1 2.72 4 Delay in obtaining permits from municipality 2.61 6 2.81 3 2.71 5 Traffic control and restriction at job site 2.67 4 2.75 4 2.71 5 Changes in government regulations and laws Delay in performing final inspection and certification 2.83 2 2.50 7 2.67 7 2.67 4 2.63 6 2.65 8 Accident during construction 2.56 7 2.25 8 2.40 9

49 3.20 3.10 3.00 2.90 2.80 2.70 2.60 2.50 CONTRACTORS CONSULTANTS OVERALL 2.40 2.30 2.20 1 2 3 4 5 6 7 8 Figure 4.9 Factors of External Related Delays Where: 1 Effects of subsurface and ground conditions 2 Weather effect on construction activities 3 Delay in providing services from utilities 4 Delay in obtaining permits from municipality 5 Traffic control and restriction at job site 6 Changes in government regulations and laws 7 Delay in performing final inspection and certification 8 Accident during construction

50 4.3.1.8 Ranking of Factors that Causes Delays Based on the results of analysis the factors in each group, as discussed above, the overall ranking of factors that causes delays have been established as shown in Table 4.9. Table 4.9: Ranking of factors that causes delays Factors Late in revising and approving design documents Contractor Consultant Overall Index Index Index Rank 3.56 3.38 3.47 1 Delays in sub-contractors work 3.06 3.81 3.43 2 Poor communication and coordination 2.83 3.94 3.39 3 Change orders by owner during construction 3.50 3.25 3.38 4 Inadequate contractor's work 3.11 3.63 3.37 5 Delay in approving major changes in the scope of work 3.33 3.38 3.35 6 Shortage of labors 3.33 3.38 3.35 7 Ineffective planning and scheduling of project Conflicts in sub-contractors schedule in execution of project Mistakes and discrepancies in design documents Improper construction methods implement 2.94 3.75 3.35 8 3.11 3.56 3.34 9 3.50 3.06 3.28 10 3.06 3.50 3.28 11 Frequent change of sub-contractors 2.89 3.63 3.26 12 Rework due to errors during 2.94 3.56 3.25 13

51 construction Conflicts between contractor and other parties Delay in approving shop drawing and sample materials 3.00 3.50 3.25 14 3.44 3.00 3.22 15 Slowness in decision making process 3.11 3.31 3.21 16 Poor communication and coordination 3.28 3.13 3.20 17 Un-use of advanced engineering design software 3.78 2.63 3.20 18 Difficulties in financing project 2.83 3.50 3.17 19 Unclear and inadequate details in drawings 3.39 2.94 3.16 20 Delay in material delivery 2.89 3.38 3.13 21 Delays in producing design documents Conflicts between joint-ownership of the project Shortage of construction materials in market Changes in material types during construction Delay in manufacturing special building materials 3.28 2.94 3.11 22 2.94 3.25 3.10 23 2.83 3.31 3.07 24 2.83 3.31 3.07 25 2.89 3.19 3.04 26 Low productivity level of labors 2.89 3.19 3.04 27 Insufficient data collection and survey before design 2.94 3.13 3.03 28 Delay to furnish and deliver the site 2.89 3.13 3.01 29 Working permit of labors 3.00 3.00 3.00 30 Poor communication and coordination 3.06 2.94 3.00 31 Delays in site mobilization 2.61 3.38 2.99 32 Effects of subsurface and ground 3.11 2.88 2.99 33

52 conditions Late procurement of materials 2.78 3.19 2.98 34 Poor qualification of the contractor's technical staff Lack of high-technology mechanical equipment Low productivity and efficiency of equipment 2.39 3.50 2.94 35 2.61 3.25 2.93 36 2.61 3.19 2.90 37 Suspension of work by owner 2.72 3.06 2.89 38 Low level of equipment-operator's skill 2.72 3.06 2.89 39 Delay in progress payments 2.61 3.13 2.87 40 Shortage of equipment 2.61 3.06 2.84 41 Inadequate experience of consultant 2.83 2.81 2.82 42 Weather effect on construction activities Damage of sorted material while they are needed urgently Delay in providing services from utilities Delay in obtaining permits from municipality Traffic control and restriction at job site 2.83 2.75 2.79 43 2.56 3.00 2.78 44 2.50 2.94 2.72 45 2.61 2.81 2.71 46 2.67 2.75 2.71 48 Equipment breakdowns 2.50 2.88 2.69 49 Changes in government regulations and laws Delay in performing final inspection and certification 2.83 2.50 2.67 50 2.67 2.63 2.65 51 Personal conflicts among labors 2.39 2.75 2.57 52 Accident during construction 2.56 2.25 2.40 53

53 4.3.1.9 Group analysis Based on the above data, a total of fifty three factors that contributed to the causes of delays in construction project were identified, ranked and analyzed. The top five most important factors that contributed to the causes of delays in construction project are late in revising and approving design documents, delays in sub-contractors work, poor communication and coordination, change orders by owner during construction and inadequate contractor s work. Furthermore, delay in approving major changes in the scope of work, shortage of labors, ineffective planning and scheduling of project and conflicts in sub-contractors schedule in execution of project are among the top ten ranked factors with sequence. From the top twenty factors, there are five factors of client related delays, ten factors of contractors related delays, four factors consultant related delays and one factor of labor related delays. This mean that the contractor s related delays occupy a fifty per cent of the top twenty factors while twenty-five per cent is belongs to client related delays. contractor 50% consultant 20% Client 25% labor 5% Figure 4.10: Top twenty factors that contributed to the causes of delays

54 4.3.2 Effects of Construction Delays The questionnaire surveyed on the effects of delays in construction project from the viewpoint of contractor and consultant was analyze as shown in Table 4.10.In order to identify the effect of delays in construction project, there are factors that effects delays were identified and ranked based on the mean value which calculate the average indexes of factors between contractor and consultant, as shown in Table 4.10. Referring to Table 4.10 and Figure 4.11, shows time overrun and cost overrun were the two most common effects of delays in construction project from the view of point of contractor and consultant. According to the top ten factors that contributed to the causes of delays, there are at least five factors having high influence that caused of time overrun in construction project such as late in revising and approving design documents, delays in sub-contractors work, delay in approving major changes in the scope of work and conflicts in sub-contractors schedule in execution of project. For cost overrun, there are also contain at least five factors having high influence in construction project, such as poor communication and coordination, change orders by owner during construction, inadequate contractor s work, ineffective planning and scheduling of project, and mistakes and discrepancies in design documents.

55 Table 4.10: Result of effect of delays Factors CONTRACTORS CONSULTANTS OVERALL Index Ranking Index Rank Index Rank Time overrun 3.56 1 3.75 1 3.65 1 Cost overrun 3.17 2 3.63 2 3.40 2 Dispute 3.06 3 2.88 3 2.97 3 Litigation 2.94 5 2.88 3 2.91 4 Total abandonment 3.00 4 2.81 5 2.91 4 Arbitration 2.94 5 2.56 6 2.75 6 Arbitration Total abandonment Litigation Dispute Overall Consultants Contractors Cost overrun Time overrun 2.40 2.60 2.80 3.00 3.20 3.40 3.60 3.80 4.00 Figure 4.11: The Common Effects of Delays

56 4.3.3 The Methods of Minimizing Construction Delays In Table 4.11 shows the results of methods of minimizing construction delays from the viewpoint of contractor and consultant. These methods were ranked based on the mean value which calculating the average indexes of methods identified by the contractor and consultant. The results of research revealed that the site management and supervision, effective strategic planning, clear information and communication channels, collaborative working in construction and proper project planning and scheduling has made the top five effective for overall ranked by contractors and consultants. The site management and supervision is the most important factor among the fifteen factors. In construction, we need to ensure the coordination among the various professionals, supervise construction quality and standard compliance, and will ensure that the contractors meets the required timetables, without attempting to take shortcuts or deviate from budgetary restraints. Besides that, the project manager also needs to ensure that the material used are those agreed to the contract and that they meet the standards. Moreover, the strategic planning is important for construction company as it will give you the direction and measurement tools you need to be competitive in the industry. Among various type of construction, the influence of market pressure on the timing of initiating a facility is most obvious in industrial construction. In order to gain time, effective strategic planning is needed to precede the project without any major mistakes. For the third ranked factors of clear information and communication channels, the clear communication is essential when managing activities. Communication is the passing on of ideas and information, therefore site supervisor must ensure that their workers are able to understand his command before starts any site activities.

57 Table 4.11: Result of methods of minimizing construction delays Factors Contractors Consultants Overall Index Rank Index Rank Index Rank Site management and supervision 3.44 3 4.13 1 3.78 1 Effective strategic planning 3.56 1 4.00 3 3.78 1 Clear information and communication channels Collaborative working in construction Proper project planning and scheduling Frequent coordination between the parties involved Complete and proper design at the right time Use appropriate construction methods 3.50 2 4.00 3 3.75 3 3.39 5 4.06 2 3.73 4 3.44 3 4.00 3 3.72 5 3.39 5 3.94 6 3.66 6 3.33 7 3.88 7 3.60 7 3.33 7 3.63 13 3.48 8 Accurate initial cost estimates 3.11 10 3.81 9 3.46 9 Proper material procurement 3.06 11 3.81 9 3.43 10 Proper emphasis on past experience 3.06 11 3.81 8 3.43 10 Frequent progress meeting 2.94 13 3.75 11 3.35 12 Compressing construction durations 3.22 9 3.44 15 3.33 13 Use proper and modern construction equipment 2.89 15 3.75 11 3.32 14 Use up-to-date technology utilization 2.94 13 3.56 14 3.25 15

58 4.4 Summary The major delays groups were identified and ranked, which group of contractor related delays is the top main groups that contribute to the causes of delays. The top five most important factors that contributed to the causes of delays are factors of late in revising and approving design documents, delays in subcontractors work, poor communication and coordination, change orders by owner during construction, and inadequate contractor s work. The effects of delays have been identified which time overrun and cost overrun were the most common effects of delays on construction projects. To minimize delays in construction project, effective strategic planning, site management and supervision and clear information and communication channels are the top three recommended methods to minimizing the construction delays from a total of fifteen methods.

59 CHAPTER 5 CONCLUSIONS AND RECOMMENDATION 5.1 Introduction This chapter presents the conclusions on the finding of the research based on the literature review and a questionnaire survey. The main survey of contractors and consultants as discussed in previous chapter related to the construction projects. 5.2 Conclusions There are three objectives of this study which have been achieved. The first objective was to identify the major causes of delays, the effects of delays, and the methods of minimizing delays in construction projects.

60 5.2.1 The Major Causes of Delays The first objective of the study has been successfully identified. A total of fifty three factors that causes delays were identified. Some of these factors were the top ten most important factors that contributed to the causes of delays include: late in revising and approving design documents, delays in sub-contractors work, poor communication and coordination, change orders by client during construction, inadequate contractor s work, delay in approving major changes in the scope of work, shortage of labors, ineffective planning and scheduling of project, conflicts in subcontractors schedule in execution of project, and mistakes and discrepancies in design documents. The factors were grouped into seven groups of causes of delays. Group of contractor related delays was ranked the most significant groups that cause delays, followed by group of client related delays, consultant related delays, material related delays, labor related delays, and equipment related delays and external related delays. 5.2.2 The Common Effects of Delays The second objective of this research was to identify the common effects of delays in construction projects. This objective has been success fully achieved. There are six factors that affect delays in construction project which includes: times overrun, cost overrun, dispute, total abandonment, arbitration, and litigation. The results of analysis shown time overrun and cost overrun were two most common effects of delays in construction project.

61 5.2.3 The Methods of Minimizing Construction Delays The third objective of this study was to identify the effective methods of minimizing delays in construction project has been successfully achieved. The most effective methods of minimizing delays includes: site management and supervision; effective strategic planning; clear information and communication channels; collaborative working in construction; proper project planning and scheduling; frequent coordination between the parties involved; complete and proper design at the right time; use appropriate construction methods; accurate initial cost estimates; proper material procurement; and proper emphasis on past experience. 5.3 Recommendation From this study, some recommendations are given as follows: 1. A construction delay occurs mostly during the construction phrase. This is mostly caused by the poor labor s skill, supervisor not able to coordinate the project very well and also low quality of material used in the construction projects. Therefore, contractor need to give awareness on these three factors stated above in order to minimize the construction delays problems. 2. Low technical and managerial skills of contractors are the problems that faced by contractors which might cause construction delays. Therefore, contractors should organize some training programs for their workers in order to update their knowledge and improve their management skill. 3. Due to the dynamic nature of project environments, it is inevitable that conflicts among the project team will arise. All project participants should recognize that conflict are inevitable and actually can be beneficial if resolved in an appropriate manner. Therefore, the conflict management is a need to produce a good working environment.

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65 APPENDIX A QUESTIONNAIRE FORM

QUESTIONNAIRE CAUSES, EFFECTS AND METHODS OF MINIMIZING DELAYS IN CONSTRUCTION PROJECTS This questionnaire consists of 4 sections: SECTION A: Respondent Background SECTION B: Factors that Contributing to Causes of Construction Delays SECTION C: Effect the Construction Delays SECTION D: Methods of Minimizing Construction Delays Objective of the Study 1. To identify the main reasons of construction delay in UTM construction project 2. To identify the effect of construction delay in UTM construction project 3. To identify the methods of minimizing construction delay in UTM construction project STUDENT NAME MAIN SUPERVISOR : Kang Sik Wei : Prof. Dr. Wahid Omar ASSIST. SUPERVISOR : PM Ir. Dr. Rosli bin Mohamad Zin NOTE: Your answer will be treated confidentially. The findings of the study will be used for academic purposes. Your name is optional in this questionnaire. Thank you for your corporation

SECTION A Respondent Background Please tick and fill in the blanks if you select others. Name : Organization/ Company name: 1 State respondent organization/company type. Client Contractor Consultant Others Please specify: 2 State respondent position in the organization/company. Director Site Manager Project Manager Engineer/ Designer 3 State the number of year respondent has experienced in construction industry. < 5 years 5-10 years 11-15 years > 15 years 4 State the number of construction project that involved by respondent 1-3 projects 4-6 projects 7-9 projects > 9 projects 5 State the number of project delays which is faced by respondent. 1-3 projects 4-6 projects 7-9 projects > 9 projects

5 State the number of project delays which is faced by respondent. 1-3 projects 4-6 projects 7-9 projects > 9 projects 6 State the type of building which involved the most frequent for delays. School Hospital Public facilities Housing Estate Others, Please specify: 7. State the percentage of delay from estimated project duration. 0 5 % 5% - 10% 10% - 15% 15% - 20% > 20%, Please specify:

SECTION B Factors that Contributing to Causes of Construction Delays Objective of the study: To identify the main reasons of construction delay in UTM construction project. Please tick and fill in the blanks if you select others. Each scale represents the following rating: (5) Very high contributing (4) High contributing (3) Medium contributing (2) Low contributing (1) Very low contributing Question: Which of the following related factors stated below that contribute to causes of delays of UTM construction project? Categories Causes of delay 1 2 3 4 5 Owner- 1 Delay in progress payments related 2 Delay to furnish and deliver the site 3 Change orders by owner during construction 4 Late in revising and approving design documents 5 Delay in approving shop drawing and sample materials 6 Poor communication and coordination 7 Slowness in decision making process 8 Conflicts between joint-ownership of the project 9 Suspension of work by owner contractor- 1 Difficulties in financing project related 2 Conflicts in sub-contractors schedule in execution of project 3 Rework due to errors during construction 4 Conflicts between contractor and other parties 5 Poor communication and coordination 6 Ineffective planning and scheduling of project 7 Improper construction methods implement 8 Delays in sub-contractors work 9 Inadequate contractor's work 10 Frequent change of sub-contractors 11 Poor qualification of the contractor's technical staff 12 Delays in site mobilization

Categories Causes of delay 1 2 3 4 5 Consultant- 1 Delay in approving major changes in the scope of work related 2 Poor communication and coordination 3 Inadequate experience of consultant 4 Mistakes and discrepancies in design documents 5 Delays in producing design documents 6 Unclear and inadequate details in drawings 7 Insufficient data collection and survey before design 8 Un-use of advanced engineering design software Materials- 1 Shortage of construction materials in market related 2 Changes in material types during construction 3 Delay in material delivery 4 Damage of sorted material while they are needed urgently 5 Delay in manufacturing special building materials 6 Late procurement of materials Equipment- 1 Equipment breakdowns related 2 Shortage of equipment 3 Low level of equipment-operator's skill 4 Low productivity and efficiency of equipment 5 Lack of high-technology mechanical equipment Labor- 1 Shortage of labors 2 Working permit of labors 3 Low productivity level of labors 4 Personal conflicts among labors External 1 Effects of subsurface and ground conditions factors (e.g. soil, high water table, etc.) 2 Delay in obtaining permits from municipality 3 Weather effect on construction activities 4 Traffic control and restriction at job site 5 Accident during construction 6 Changes in government regulations and laws 7 Delay in providing services from utilities (such as water, electricity, telephone, etc.) 8 Delay in performing final inspection and certification

SECTION C Effects of Construction Delays Objective of the study: To identify the effect of construction delay in UTM construction project Please tick and fill in the blanks if you select others. Each scale represents the following rating: (5) Always (4) Mostly (3) Sometime (2) Seldom (1) Never Question: What is the effect of construction delays? EFFECT 1 2 3 4 5 1 Time overrun 2 Cost overrun 3 Dispute 4 Arbitration 5 Total abandonment 6 Litigation

SECTION D Methods to Minimizing Construction Delays Objective of the study: To identify the methods of minimizing construction delay in UTM construction project Please tick and fill in the blanks if you select others. Each scale represents the following rating: (5) Very high effective (4) High effective (3) Medium effective (2) Low effective (1) Very low effective Question: Which of the following methods will minimize the construction delays? Proposed Method 1 2 3 4 5 1 Frequent progress meeting 2 Use up-to-date technology utilization 3 Use proper and modern construction equipment 4 Use appropriate construction methods 5 Effective strategic planning 6 Proper material procurement 7 Accurate initial cost estimates 8 Clear information and communication channels 9 Frequent coordination between the parties involved 10 Proper emphasis on past experience 11 Proper project planning and scheduling 12 Complete and proper design at the right time 13 Site management and supervision 14 Collaborative working in construction 15 Compressing construction durations Please state out your comment for any recommendations.