A COMPARATIVE STUDY OF CONSTRUCTION PROJECT DELAYS IN
JOHOR AND SABAH REGION
DAYANG SABRIAH BINTI SAFRI
A project report submitted in partial fulfillment of
the requirement for the award of the degree of
Master of Science (Construction Management)
Faculty of Civil Engineering
Universiti Teknologi Malaysia
NOVEMBER, 2009
iii
To my beloved parent, my siblings and my late mama,
Thank you for all the love and support.
iv
ACKNOWLEDGEMENT
Praise to the Almighty Allah the God of the Universe who gave me strength to
complete this thesis. This piece of work would not become possible without His bless.
I would like to express my heartfelt gratitude to my supervisor, Associate
Professor Aziruddin Ressang, for his kind assistance, wise counsel, professional
comments and suggestions throughout this master project.
Greatest thanks to all respondents in Johor and Sabah, who participated in this
questionnaire survey and patient enough to spent their precious time in replying the
questionnaires, and my colleagues in faculty who assist me during the data distribution.
Your kind and generous help will always be in my mind.
Deepest thanks to my family especially my beloved father and mother, Mr. Hj.
Safri Idris and Mrs. Mary Ambrose Anjun, and my siblings, Dayang Marina Sabrina and
Dayang Safwan, for their constant support and prayers throughout the process of
producing this project report. I would like to take this opportunity to express my
appreciation to my friends. My special thanks to Jumaydin Jum, Rohaida, Jahara, Nadia,
Maria, Adilah and Ewi for their valuable advice, support and assistance throughout the
period of my project.
Finally, I would also like to acknowledge each and every person who has
contributed their effort in this study by whatever means directly or indirectly. Without
the contribution of all those mentioned above, this work would not have been possible,
thank you to all of you.
v
ABSTRACT
A timely completion of construction project is a major criterion of project
success. Failure to complete the project on time will ultimately results in delay. The
need to control the causes of delays during the construction process comes out when the
number of delay project has been increase from time to time. Hence, it is essential to
identify the causes of this problem from the early stage of construction project. The
objectives of this study are to study the causes of delay in term of frequency occurrence
and severity effect, and finally to identify the methods available to minimize
construction project delays. A questionnaire survey was conducted to identify the
significant causes of delay in order to avoid or minimize their impact on construction
project. The perspective of contractors, consultants and client has been analyzed and
ranked based on Relative Important Index (RII). A comparison of frequency occurrence
and severity effect on the delay causes was done between Johor and Sabah. The study
established that there were unlike results on the pattern of significant delays causes in
both regions. Respondents in Johor believe that ‘contractor’s financial problem’, ‘poor
subcontractor performance’ and ‘shortage of manpower’ are the major causes of delay in
construction project. Meanwhile, ‘poor site management and supervision’, ‘slowness of
client decision making’ and ‘slow payment of completed work’ are the major concern
from the respondents’ point of view in Sabah. Finally, appropriate project management
practices are thus identified to curb the significant causes of delays in construction
projects.
vi
ABSTRAK
Penyiapan projek pembinaan yang mengikut masa adalah kriteria penting dalam
menentukan kejayaan sesebuah projek. Kegagalan menyiapkan projek mengikut masa
akan mengakibatkan kelewatan dalam projek pembinaan. Keperluan untuk mengawal
punca-punca kelewatan semasa proses pembinaan timbul apabila jumlah projek-projek
yang mengalami kelewatan telah meningkat dari semasa ke semasa. Oleh itu, ianya
penting untuk mengenalpasti punca-punca masalah ini pada permulaan projek
pembinaan. Objektif kajian ini adalah untuk mengkaji punca-punca kelewatan
berdasarkan kekerapan dan tahap kesannya, dan akhir sekali untuk mengenalpasti
kaedah mengurangkan kelewatan dalam projek pembinaan. Kajian mengunakan borang
soal selidik telah dijalankan untuk mengenalpasti punca-punca utama kelewatan dalam
usaha mengurangkan impak negatif terhadap projek pembinaan. Perspektif kontraktor,
konsultan dan klien telah dianalisis dan diranking berdasarkan Relative Important Index
(RII). Perbandingan di antara kekerapan dan tahap kesan terhadap punca-punca
kelewatan projek telah dilakukan di antara Johor dan Sabah.
Keputusan kajian
menunjukkan terdapat perbezaan pada punca-punca penting kelewatan projek untuk
kedua-dua negeri. Responden di Johor percaya bahawa ‘masalah kewangan kontraktor’,
‘prestasi subkontraktor yang rendah’ dan ‘kekurangan tenaga kerja’ merupakan puncapunca utama kelewatan dalam projek pembinaan. Manakala, ‘penyeliaan dan
pengurusan tapak yang lemah’, ‘lambat membuat keputusan’ dan ‘lambat membuat
pembayaran terhadap kerja yang siap’ adalah punca-punca yang menjadi perhatian
utama dari pandangan responden di Sabah. Akhir sekali, amalan pengurusan projek yang
sesuai telah dikenalpasti untuk mengekang punca-punca kelewatan projek ini.
vii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
TITLE OF PROJECT
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xiii
LIST OF ABBREVIATION
xiv
LIST OF APPENDICES
xv
INTRODUCTION
1.1
Introduction
1
1.2
Problem Statement
2
1.3
Aims and Objectives
6
1.4
Scope of the Research
6
1.5
Significant of the Research
7
1.6
Research Methodology
7
1.7
Chapters Organization
9
LITERATURE REVIEW
2.1
Introduction
12
viii
3
4
2.2
Definition of Delays
13
2.3
Types of Delay
14
2.3.1
Excusable Delays
15
2.3.1.1 Excusable Delays With Compensation
16
2.3.1.2 Non-Compensable Excusable Delays
16
2.3.2
Non-Excusable Delays
17
2.3.3
Concurrent Delays
19
2.4
Causes of Delays
21
2.5
Group Causes of Delays
24
2.6
Identify Causes of Delay
25
2.6.1
Client-related factors
26
2.6.2
Consultant-related factors
27
2.6.3
Contractor-related factors
28
2.6.4
Materials-related factors
29
2.6.5
Labour-related factors
29
2.6.6
Plant/Equipment related factors
30
2.6.7
Contract relationship related factors
31
2.6.8
External factors
32
2.7
Delay Responsibility
32
2.8
Procedure When Delays Occur
33
2.9
Documentation of Delays
35
2.10
Summary
35
EFFECTS AND MINIMIZING DELAYS
3.1
Introduction
36
3.2
Effects of Delay in Construction Project
37
3.3
Methods in Minimizing Construction Project Delays
39
3.4
Summary
42
RESEARCH METHODOLOGY
4.1
Introduction
43
4.2
Data Collection
43
ix
5
6
4.2.1
Literature Review
44
4.2.2
Development of Questionnaire
44
4.2.2.1 Section A
45
4.2.2.2 Section B
46
4.2.2.3 Sections C
47
4.3
Questionnaire Distribution
47
4.4
Data Analysis
48
4.5
Summary
50
DATA COLLECTION AND PRELIMINERIES ANALYSIS
5.1
Introduction
51
5.2
Data Collection
51
5.3
Questionnaire Response
52
5.3.1
Respondent’s Position
52
5.3.2
Respondents Experience in Construction Industry
53
5.3.3
Organization Involvement in Construction Industry 54
5.3.4
Respondents’ Most Delayed Project
55
ANALYSIS AND DISCUSSION
6.1
Introduction
6.2
Finding 1: Frequency and Severity Effects on the
56
Causes of Delays
56
6.2.1
Causes of Contractor Related Delays
57
6.2.2
Causes of Client Related Delays
58
6.2.3
Causes of Consultant Related Delays
59
6.2.4
Causes of Material Related Delays
61
6.2.5
Causes of Plant/Equipment Related Delays
61
6.2.6
Causes of Contract-Relationship Related Delays
62
6.2.7
Causes of Labour Related Delays
63
6.2.8
Causes of External Related Delays
64
6.2.9
Ranking of Frequency on Delay Causes
65
6.2.10 Ranking of Severity Effect on Delay Causes
67
x
6.3
6.4
6.5
7
Finding 2: Comparison of Significant Causes of Delays
between Johor and Sabah
69
6.3.1
Comparison of Top Twenty Significant Causes
69
6.3.2
Comparison of Significant Group of Causes
74
Finding 3: Suggestion Methods of Minimizing Delays
76
6.4.1
77
Suggestion Methods from Survey Result
Summary
79
CONCLUSION AND RECOMMENDATION
7.1
Introduction
80
7.2
Conclusions of the findings
80
7.2.1
Objective 1: To study the causes of delays in
term of degree of occurrence and severity effects
7.2.2
Objective 2: To compare the significant causes
of delays in Johor and Sabah
7.2.3
REFERENCES
APPENDICES
81
Objective 3: To suggest the methods of minimizing
project delays.
7.3
81
Recommendations
82
83
xi
LIST OF TABLES
TABLES NO
TITTLE
PAGE
1.1
Research methodology
8
2.1
Group causes of delays
25
2.2
Standard procedure related to construction project delay
34
3.1
Methods of minimizing construction delays
41
4.1
Likert scale for frequency of occurrence of related delay
causes
4.2
46
Likert scale for the severity of effects of related delay
causes
46
4.3
Rating scale for the proposed methods that minimize delays
47
5.1
Percentage feedback from group of respondents in Johor and
Sabah
52
5.2
Statistical results for the respondents’ type of position
53
5.3
Statistical results of respondents’ working experience
54
5.4
Statistical results of organization involvement in construction
Industry
54
5.5
Statistical results for the most delayed project by respondents 55
6.1
The result of contractor related delays
58
6.2
The result of client related delays
59
6.3
The result of consultant related delays
60
xii
LIST OF TABLES
TABLES NO
TITTLE
PAGE
6.4
The result of material related delays
61
6.5
The result of plant/equipment related delays
62
6.6
The result of contract-relationship related delays
63
6.7
The result of labour related delays
63
6.8
The result of External related delays
64
6.9
Ranking of frequency in Johor
66
6.10
Ranking of frequency in Sabah
66
6.11
Ranking of severity effect in Johor
68
6.12
Ranking of severity effect in Sabah
68
6.13
Top twenty significant causes of project delays
69
6.14
Comparison on significant causes of delays
71
6.15
Ranking of major delays groups
74
6.16
Ranking of the top fifteen methods of minimizing delays
78
xiii
LIST OF FIGURES
FIGURE NO
TITTLE
PAGE
1.1
Research Methodology
8
2.1
Classification of types of delay
18
2.2
Classifications of Construction Project Delays
20
2.3
Breakdown factors of client related delays
26
2.4
Breakdown factors of consultant related delays
27
2.5
Breakdown factors of contractor related delays
28
2.6
Breakdown factors of materials related delays
29
2.7
Breakdown factors of labour-related delays
30
2.8
Breakdown factors of Plant/Equipment related delays
31
2.9
Breakdown factors of contractual relationship related
Delays
31
2.10
Breakdown of External Factors
32
3.1
Major effects of delay in construction project
38
6.1
Comparison on groups of causes delays
75
xiv
LIST OF ABBREVIATION
BNM
CIDB
Bank Negara Malaysia
-
Construction Industry Development Board
EOT
Extension of Time
GDP
Gross Domestic Product
SCL
Society of Construction Law
SDC
Sabah Development Corridor
PGA
Pasukan Gerakan Am
PWD
Public Work Department
xv
LIST OF APPENDICES
APPENDIX
TITTLE
PAGES
A
Cover Letter
93
B
Questionnaire Form
94
CHAPTER 1
INTRODUCTION
1.1
Introduction
Many problems may arise during construction project implementation; one main
concern is delay. Delay is the time overrun either beyond completion date specified in a
contract, or beyond the date that the parties agreed upon for delivery of a project (Assaf
and Al-Hejji, 2006). There are many reasons that cause delays. According to Ogunlana
(2008), although the principle reasons for delays are comparable across developing
countries, several factors pertaining to local industry, social-economic, cultural issues
and project characteristics also contribute to delays. Delays may occur as a result of the
actions or inaction on the part of owner, contractor, subcontractors, consultants or the
government. In addition, delays are always interrelated which led to the more
complicated situation.
Delays in construction projects are considered one of the most common problems
causing a multitude of negative effects on the project and its participating parties. Along
with delay, the frequently faced consequences are project failure, reduction of profit
margin, and loss of belief of citizen in government funded projects, etc. When delays do
2
occur, they are either accelerated or have their duration extended beyond the scheduled
completion date. These are not without some cost consequences. Delays also give rise to
disruption of work and loss of productivity, late completion of project increased time
related costs, third party claims, abandonment and termination of contract (AbdulRahman H., 2006).
In conventional approach, this extra cost is included a percentage of the project
cost as contingency in the pre-contract budget (Aibinu and Jagboro, 2002). Akinsola
(1996) cited common practice allow a percentage of project cost as a contingency
allowance in the contract price and this allowance is generally based on judgment.
There is a room for improvement in present practices for keeping track of delays.
This research is carried out to study the causes and the severity effects on the delay
causes arising during construction phase of projects. In addition, the result of this
research would lead to recommendations aimed at reducing the impact of delay. If
construction delays can be avoided or mitigated, there could be substantial financial
savings on projects.
1.2
Problem Statement
Malaysia construction sector forms a high percentage of the economy contract
(Abdul-Rahman H. et al, 2006). In year 2008, the construction sector grew 2.1% from
the total of Gross Domestic Product (GDP), emanated mainly from the civil engineering
sub-sector (BNM, 2009). GDP by state showed that the state economic structure was
varied and unique.
3
Johor, for instance, is known as one of the developed state in Malaysia and
among the three main urban centers on the Peninsular Malaysia. It is a main contributor
of the national GDP in the country after Selangor and WP Kuala Lumpur (Department
of Statistics Malaysia, 2009). With a population of approximately 500,000 in the city, it
is an important industrial, tourism and commercial hub for Southern Malaysia and is part
of Southeast Asia's most populous urban areas. Tourism is a significant contributor to
the state's economy, as it receives 60% of the country's annual 16 million foreign tourists
via its bridges and road links to Singapore. Johor is expected to be the top economic
contributor to the country particularly after the completion of Iskandar Malaysia (The
Star, 2008).
Meanwhile, Sabah is the second largest of the 14 states in Malaysia with
population of 3.2 million peoples (Sabah Tourism Board, 2008). It is strategically
located in the center of BIMP, stands of Brunei, Indonesia, Malaysia, Philippines, largest
regional grouping and spanning territories of four ASEAN Countries. Sabah economics
is open and is subject to the vagaries of exogenous factor, with an increasingly globalize
and rapidly changing world economy. The buoyant economic activities at manufacturing
services have been identified as the main growth sectors in the state. Sabah was also
known as the major contributor in agriculture sector with 21.0% of GDP (Department of
Statistics Malaysia, 2009). Other main driver of its economy was the construction sector
particularly in both commercial and residential properties (Sabah Budget Speech, 2009).
In year 2008, Malaysian Federal Government have allocated about RM2.37 billion to the
state for Sabah Development Corridor (SDC) projects. SDC is believed as a commitment
from the government to boost up the development and economy of Sabah to a renowned
level (Utusan Malaysia, Aug 2008).
4
Despite of their developments, delay becomes a problem that associates in the
construction project. The need to control the factors of delays during the construction
process comes out when the number of delays project have been increase from time to
time. Malaysian Treasury Secretary-general, Dr Wan Abdul Aziz stated that projects
with 30% or three months’ behind schedule are categorized as ‘sick project’ (The Star,
2007). When a delay can no longer be absorbed by the client, it will lead in the project
being abandoned. According to numbers released by Ministry of Housing and Local
Government, about 115 abandoned housing projects are recorded since 1990 until June
2008 (Ministry of Housing and Local Government, 2008).
In Sabah, the most notable delay projects include the Kota Kinabalu International
Airport (KKIA) expansion project, road project from Kalabakan to Sapulut, Kinarut
PGA project and Karamunsing flyover (Daily Express, 2007). Similarly, in Johor, about
23 abandoned housing projects have been recorded until 30 June 2008 (Ministry of
Housing and Local Government, 2008). This record is excluded other types of project,
for example school building and infrastructure projects. In fact, the total number
reported by the Ministry also does not include projects undertaken by independent
contractors, cooperatives and others who are not under the purview of Housing
Development Act (Control and Licensing) 1966 (Act 118) (Bernama, 2008). If these
unrecorded projects are taken into considered, the actual figure of delays must be
enormous.
Regarding these problems, Malaysia government has acknowledged the
construction delays and cost overruns problems as the big headache, especially with
government-related funded projects. Minister of Public Work Department, Datuk
Shaziman Abu Mansor, cited about RM200 million have been provide for the
construction industry to revive most of abandoned government projects under Economic
Stimulus Package (Utusan Malaysia, May 2009). This showed that the Government
always takes a cognizance of the important role of the construction sector to stimulate
5
domestic economic activities and in enhancing economic growth in view of its linkages
to construction-related industries.
Nevertheless, with less effort to minimize delays in construction project, it is
possible for the construction industry performance become lower when compare to other
industries. This will show that construction industry is too dependent to the government
in order to settle down the impact of delays issue such as abandoned projects.
Additionally, more delays on construction projects are expected to be increased due to
the unstable economic (Bernama, Nov 2008). This was reinforced by Quarterly Bulletin
which reported that there has significant external demand deteriorated following the
deepening recession in several advanced economies as well as slower growth in the
regional economic (Quarterly Bulletin, 2009).
Chang (2002) suggested that identifying factors is usually the first step when
addressing a problem and then corrective actions can be taken. Hence, it is essential to
identify the causes of this problem in early stages of construction project. This research
will diagnose the main causes and effects of delays. The researcher will make a
comparison between two regions according to the scope. This is because the principle
reasons for delays may diverse at different places (Ogunlana and Prokuntong 2008).
Subsequently, researcher will determine the ways to minimize project delays
from the perspective of construction industry players. Based on the findings, researcher
can generate the appropriate recommendations aimed at reducing the impact of delays. It
also believed that the study would clarify and thus create an awareness of the extent to
which delays can adversely affect project delivery.
6
1.3
Aims and Objectives
The aim of this research are to study and evaluate issues related to the major
causes of construction project delays in Sabah and Johor region through a survey. In
achieving this aim, it is necessary to thoroughly review the existing literature and
research’s findings. Therefore, the objectives of this study are as follows:
i.
To study the causes of delays in term of degree of occurrence and
severity of effects
1.4
ii.
To compare the significant causes of delays in Johor and Sabah
iii.
To suggest the methods of minimizing project delays.
Scope of the Research
The research will be focused on the following matter:
i.
This research was comprised in Johor and Sabah region.
ii.
The group of respondents for this research involves client, consultant
and contractor companies that registered with Construction Industrial
Development Board (CIDB).
7
1.5
Significant of the Research
There are several valuable benefits expected by implementing this study. The
significance of establishing the issues related to the construction project delays was to
provide a greater insight and understanding on the causes of delays particularly among
the main project players: contractors, client and consultants. This can be achieved by
applying theoretical concepts discussed in many literatures into practice in real projects.
It is hoped that these findings will guide efforts to improve the performance of the
construction industry and will be useful to the construction players. Therefore, these
findings might encourage the practitioner to focus on delay problem that might have
existed in their present or future projects. Other than that, this study is expected to
provide a better ways and methods in delivering construction projects by minimize the
major causes of delays.
1.6
Research Methodology
In achieving these objectives, a research methodology is required. Figure 1.1
highlights the critical stages of conducting this study. This figure comprises four
essential stages of conducting the study which includes the following:

Literature review

Main survey

Analysis Data

Conclusion
8
Research Topic Selection
Identifying Issue and Problem Statement
Identifying Objective and Scope
Literature Review Formulation of the Objectives
1. Study the causes of delays in
term of degree of occurrence and
severity of effects
2. Compare the significant causes
of delays in Johor and Sabah
3. Suggest the methods of
minimizing project delays.
Main Survey
(Structured Questions)
To obtain sample data of the
objectives no. 1, 2 and 3
Analysis & Discussion
Recommendation
Conclusion
Figure 1.1: Research Methodology
Relative Importance
Index (RII)
Suggest methods to
mitigate delays based
on finding
9
This research will be adopted field survey methodology to uncover factors
influencing on delay arising during construction stage. To identify the delay factors in
construction market, a comprehensive literature review was conducted as to identify the
essential information such as the main causes and effects of delay to the projects. This
useful information will be included in the preparation of the main survey questionnaire.
The technical materials researched include: technical papers, articles, conference
proceedings, the internet, and leading construction management and engineering
journals.
After that, main survey questionnaires are prepared. The designed questionnaire
will be distributed to three principal construction parties namely; owner, consultant and
contractor. Upon the completion of the data analysis, discussion of these findings,
conclusions and recommendations will be presented.
1.6
Chapters Organization
The followings are the summary for each chapter on this research project paper.
This project paper organized into six chapters which can be summarized as follow:
a) Chapter 1: Introduction
This chapter presents the background and general information which comprises
of introduction, issues and problem statements, research objectives, research
scopes, research significance, research methodology and chapters organization.
10
b) Chapter 2: Concept and Causes of Construction Delays
From the available literature, this chapter composed an overview of the
definition and various types of delay encountered in a project. It also includes the
overall delays concept along with the causes and further classification of delays,
responsibilities that the parties have in a delay, procedure taken when delays and
the documentation of delays.
c) Chapter 3: Effect and Mitigation of Delays
This chapter reviews the effects of delays from the available literature. In
addition, it also contains a section that discusses the methods on minimizing
delays in construction project which recommended by previous researchers.
d) Chapter 4: Research Methodology
This chapter give an overall view of research methodology for the research and
includes the method of data collection and questionnaire structure
e) Chapter 5: Data Collection and Preliminaries Analysis
This chapter is presents on the data collected and the preliminaries analysis on
several data carried out.
f) Chapter 6: Analysis and Findings
This chapter focuses on analyzing collected data and discussing the findings. It
contains the analysis of the information gathered through the questionnaire
survey, identifies the critical causes of delay based on the chance of occurrence.
Various suitable techniques and methodologies are used in analyzing the data
gathered appropriate with the information needed and the types of data collected.
11
Analysis and discussion in this chapter is carried out with regards to fulfilling the
objectives of the research.
g) Chapter 7: Conclusion and Recommendation
This chapter is provides the conclusions of the research. There are also several
recommendations discussed in this chapter.
CHAPTER 2
THEORETICAL CONCEPT AND CAUSES OF DELAYS
2.1
Introduction
Literature Review is an important process of conducting research in which it
provides to propagate the formulation of the research problems in addition to review the
critical points of current knowledge on a particular topic. Its ultimate goal is to bring the
reader up to date with current literature and forms a basis for expanding the knowledge
within the topic. The subject of delays has been discussed by several researchers in the
past decades. Delays, however, were still being reported among construction projects.
Many factors relate to delay are vary along with types of project, locations, sizes,
and scopes. Some projects are only a few days behind the schedule, but some are
delayed over a year. Construction projects with their features of complexity and capital
requirement have resulted interest to many researchers. Therefore, it is necessary to
define the actual causes of delay in order to minimize the delays in construction projects.
13
This chapter explores the findings on the literature search. Before focusing on the
specific issue, the concepts of delays were explored including the definition and types of
delays. Subsequently, researcher presents the review of the groups causes and the factors
identified for each group causes. Most of materials that obtained from the literature are
cited in the references.
2.2
Definition of Delays
Delays of a construction project can be defined as the late in progress or actual
completion of works compared to the baseline construction schedule or contract
schedule. Vast majority of project delays occur during the construction phase, where
many unforeseen factors are always involved. Previous researchers defined construction
delays by their own sentence, however it bring similar meaning.
According to Braimah (2008), the term ‘delay’ in construction contracts has no
precise technical meaning. It can be used in different sense to mean different conditions
in project execution. However, the term is often used in its basic sense to mean any
occurrences or events that extend the duration or delay the start or finish of any of the
activities of a project.
In the study of Assaf et al. (1995) construction delay was defined as the time
overrun either beyond completion date specified in a contract, or beyond the date that
the parties agreed upon for delivery of a project. Abd. Majid (1997) defined delays as
the time overrun beyond the contract date or beyond the date that the critical activities
have been delayed.
14
Delay, from the view of Bartholomew (1998) is slowing down of a work without
stopping it entirely. It is different from suspension, which means stoppage of work
directed to the contractor by a formal form from client. Aibinu and Jagboro (2002)
described delay as a situation when the contractor and the project owner jointly or
severally contribute to the non-completion of the project within the original or the
stipulated or agreed contract period.
Delay was also defined as an act or event which extends required time to perform
or complete work of the contract manifests itself as additional days of work (Zack,
2003). Majid I.A. (2006) interprets delay as a loss of time. ‘Time’ refers to the duration
for completing the construction project. When the project period is delayed, it means the
project cannot be completed within original schedule.
2.3
Types of Delay
There are two main types of delay that occur on construction project, namely
excusable and non-excusable delays (Alkass et al., 1996). In actual practice, delays are
frequently difficult to sort out, separate and accurately access particularly in term of
claim process (Yates and Epstein, 2006). The terms of excusable and non excusable are
come from the perspective of contractor. A delay that is compensable is compensable to
the contractor but non-excusable to the employer. On the other part, a delay deemed as
non-excusable is compensable to the employer because it results in levying of liquidated
damages.
15
2.3.1 Excusable Delays
Delays that excuse a contractor from performing within the contract period and
justify an extension of time (EOT) to perform are ‘excusable’. According to Alkass et al.
(1996), excusable delays are those not attributable to the contractor’s actions or inactions
and typically include unforeseen events. These events are beyond the contractor’s
control and are without fault or negligence on his part. This type of delays can have an
impact on non-critical activities which need a more detailed analysis to determine
whether additional time extension is warranted, or if the reduction of float time can be
justified (Alkass et al. 1996). However, whether the delays are excusable is depends on
contract provision. Excusable delays can be further classified into delays with
compensation and without compensation. Figure 2.1 show the types of delay in
construction project.
2.3.1.1 Excusable Delays With Compensation
A delay is deemed compensable to the contractor when its cause is within the
control of, is the fault of, or is due to the negligence of the project owner (Sweet 1977).
According to Alkass et al, (1996), contractors are entitled to a time extension as well as
monetary compensation due to this type of delays. However, the contractor must show
that the delay was "unreasonable" and prove the extent of the additional expense
involved (Clough, 1975). These delays result from circumstances such as:
1)
Failure of the owner to have the work site available to the contractor in a timely
manner;
2)
Owner initiated changes in the work;
3)
Owner delays in issuing a notice to proceed;
16
4)
Architect/Engineer supplied designs which are defective;
5)
Owner not properly coordinating the work of other contractors;
6)
Owner not providing owner furnished equipment in a timely manner;
7)
Owner providing misleading information;
8)
Owner interfering with the performance of the contractor;
9)
Owner, or the Architect/Engineer, delaying the approval of contractor submitted
shop drawings;
10)
Owner, or the Architect/Engineer, using the shop drawing process as a means by
which to change the contract requirements
11)
Contractor encountering differing site conditions.
(Yates and Epstein, 2006)
2.3.1.2 Non-Compensable Excusable Delays
Non-compensable excusable delays are result by the factors that beyond of the
contractor’s reasonable control and not attributable to the Contractor’s fault or
negligence (Ahmed et al., 2002). In Public Work Department (PWD) 203A standard
form of contract, this type of delays contain in a clause called the force majeure. When
this type of delay is encountered, the contractor will not receive any compensation for
the cost of delay, but he will be entitled only for an extension of time (EOT) to complete
the work and relieved from any contractually imposed liquidated damages for the period
of delay.
In order for delay to warrant an extension of contract time, the delay must affect
the completion of the project. This provides the basis for the high importance attached to
the use of critical path method (CPM) of scheduling for proving or disproving time
related claims such as extension of time and prolongation cost (Bramble and Callahan,
17
1992 ). The major elements that represent of non-compensable excusable delays include
events such as following (Sweet 1977):
1)
Unforeseen events. Unforeseeable causes generally refer to future events, not
existing causes. By contrast, conditions of which the contractor should have been
aware are not considered unforeseeable.
2)
Events beyond the contractor's control. These are cases in which work on the
project is impossible.
3)
Events without fault or negligence. Such events are those in which the contractor
is blameless, such as acts of god and labor or material shortages beyond what
was expected at the time the contract was made
2.3.2 Non-Excusable Delays
In this category, the contractor's own actions or inactions have caused the delay.
It is a delay on which the contractor could have foreseen or prevented, but failed to do so
(Last, 1997). Consequently, this type of delay presents no entitlement to a time
extension or delay damages for the contractor, if the delay can be proved to have
affected the whole project. The owner, however, could be entitled to liquidated damages
(Alkass et al., 1996).
According to Abd. Majid (1997), the amount of damages is depends on the
contract value of the project, which is based on the length of delay and the rate of
damages per day. Such delays are inherently the Contractor’s responsibility and no relief
is allowed. Last (1997) cited an unexcused delay may be considered as a breach of
contract. There are numerous types of non-excusable delays as shown in Figure 2.1.
18
Owner-initiated changes
Late contract award
Differing site condition
With Compensation
Design problems
Suspension of work
Incomplete drawings or specifications
Excusable Delay
Owner providing misleading information
Acts of God
Unprovoked strikes
Without Compensation
Unusually severe weather
Unforeseen events
Types of Delay
Events beyond the contractor’s control
Events without faults or negligence
Contractor’s management
Materials
Manpower
Non-Excusable Delay
Equipment
Sub-contractor
Improper planning
Financial difficulties
Poor coordination
Inadequate supervision
Improper construction method
Poor contract management
Lack of competence and skill
Materials shortages
Late delivery material delivery
Damages goods
Labour shortage
Poor workmanship
Slow mobilization of workers
Low productivity
Equipment shortages
Equipment breakdown
Low efficiency
Improper selection of equipments /tools
Sub-contractor delays
Sub-contractor interference
Figure 2.1: Classification of types of delay
19
2.3.3 Concurrent Delays
According to Braimah (2008), the terms of “independent delays”, “serial delays”
and “concurrent delays” are used to describe delays based on the interrelation of the
above delay types with respect to their duration and time of occurrence. Independent
delays are delays that occur in isolation or without other consecutive or simultaneous
delays while serial delays occur in sequence consecutively and not overlapping with
each other on a particular network path.
On the other hand, when two or more separate delay events occur during the
same time period, which affects the completion date experienced on a project are often
termed “concurrent delays” (Reynolds and Revay, 2001). If the delays are inextricably
intertwined, neither the contractor can be held responsible for the delay or recover the
delay damages from the owner (Ahmed et al, 2002).
It is difficult to determine which delays are concurrent. The resolution of this
type of delay has been a contentious legal and technical subject in construction and
engineering contracts (SCL, 2002). The reason for this is largely due to the fact that
resolving it requires the consideration of the interaction of different factors such as the
time of occurrence of the delays, their length of duration, their critically, the legal
principles of causation and float ownership (Bubshait and Cunningham, 2004). For more
clarification, see Figure 2.2 which classifies the different types of delays based on their
various attributes.
DELAY
CLASSIFICATION
RESPONSIBILITIES
Neither Party
Owner
TYPES OF DELAYS
Excusable
Non-Excusable
Compensable
Liquidated
(Prolonged Cost +
Ascertained Damages
Extension of Time)
(LAD)
TIMING AND
DURATION OF DELAYS
Concurrent
Nonconcurrent
Serial
Independent
Non-Compensable
(Extension of Time)
Contractor
Figure 2.2: Classifications of Construction Project Delays (Braimah N, 2008)
21
2.4
Causes of Delay
Traditional contractual approach is still dominant in Malaysia construction sector
and this may likely continue to be a trend. Malaysia construction sector comprises the
clients or project owners, contractors, subcontractors, suppliers, and others key
professional actors responsible for design and supervision of projects. These
professionals include architects, engineers and quantity surveyors. Due to this mixed
variety of parties involves in projects, they often encounter difficult situations and some
degree of pressures. Many of these problematic conditions are beyond control and often
lead to delays or project time overrun (Odeh and Battaineh, 2002).
Bramble and Callahan (1992) cited a project may be delayed as a result of the
direct action of major parties, or of their failure to act especially if they have a duty to
act in the circumstances. The outside forces also could intervene to delay a project.
Hence, it is important to describe the causes of delay by looking at factors relating to
actions and inactions of project participants.
Naha, Norelina (2008) studied the causes of delay in building projects limited in
in Johor Bahru only. The study found that (1) contractor’s financial prolems, (2)
shortage in material, (3) fluctuation of materials price, (4) poor management and
planning, (5) poor subcontractor performance, (6) inclement weather, (7) inadequate of
contractor’s experience, (8) construction mistake and (9) poor monitoring and
controlling were the major causes of delays at the time.
Sambasivam and Soon (2007) conducted a study by taking an integrated
approach and analyze the impact of specific causes on specific effects of delays in
Malaysia. Based on their survey, the most important causes of delay were: (1)
22
contractor’s improper planning, (2) contractor’s poor site management, (3) inadequate
contractor experience, (4) inadequate client’s finance and payments for completed work,
(5) problems with subcontractors, (6) shortage in material, (7) labour supply, (8)
equipment availability and failure, (9) lack of communication between parties, and (10)
mistakes during the construction stage.
Majid, I.A. (2006) carried out a study on causes and effect of construction
project delays in Acheh Indonesia. Contractor-related delays was ranked the most
significant groups that cause delays, followed by equipment-related delay, client-related
delays, material-related delays, finance related delays, consultant-related delays,
external-related delays, and labour related delays.
Aibinu and Odeyinka (2006) have assesses the causes of delays in Nigeria. They
have analyzed quantitative data from completed building projects to assess the extent of
delays factors contributed to overall delays on a project. By using a Pareto analysis, they
revealed that 88% of the factors (representing 39 highest priority factors) were
responsible for 90% of the overall delays. The result of the study indicated that financing
projects in Nigeria continue to be one of the major sources of project delays and of poor
time performance.
Ahmed S.M. et al. (2002) conducted an empirical study regarding construction
delays in Florida. Based on the contractor surveyed the most critical categories of delays
are Code-Related Delays followed by Design-Related Delays and Construction-Related
Delays. Odeh and Battaineh (2002) evaluated the result of their survey aimed at
identifying the most important causes of delays in construction projects with traditional
type contracts. The results indicate that contractors and consultants agreed that owner
interference, inadequate contractor experience, financing and payments, labour
23
productivity, slow decision making, improper planning, and subcontractors were among
the top ten most important factors.
Mezher and Tawil (1998) carried out a study on causes of delays in Lebanon
from the viewpoint of owners, contractors and architectural/engineering firms. It was
found that owners had more concerns with regard to financial issues, contractors
regarded contractual relationships the most important, while consultants considered
project management issues to be the most important causes of delays.
Chan and Kumaraswamy (1997) conducted a survey to determine and evaluate
the relative importance of the significant factors causing delays in Hong Kong
construction projects. They analyzed and ranked the main reasons of delays according to
different groups classified on the basis of the role of the parties in the local construction
industry (i.e. whether clients, consultants or contractors) and the type of projects. Results
indicate that the five principal and common causes of delays are: 'poor site management
and supervision', 'unforeseen ground conditions', 'low speed of decision making
involving all project teams', 'client-initiated variations' and 'necessary variations of
works'.
Ogunlana and Promkuntong (1996) studied the delays in building project in
Thailand. They concluded that the problems of the construction industry in developing
economies could be nested in three layers: (1) problem of shortages or inadequacies in
industry infrastructure, mainly supply of resources; (2) problems caused by clients and
consultants; and (3) problems caused by incompetence of contractors.
Assaf et al. (1995) have addressed 56 main causes of delay in Saudi Arabia large
building construction projects and their relative importance. Based on the contractors
24
surveyed the most important delay factors were: preparation and approval of shop
drawings, delays in contractor’s progress, payment by owners and design changes. From
the view of the architects and engineers the cash problems during construction, the
relationship between subcontractors and the slow decision making process of the owner
were the main causes of delay. However, the owners agreed that the design errors,
labour shortages and inadequate labour skills were important delay factors.
There were many possible causes that contribute to construction project delay.
However, according to Ogunlana (2008), although the principle reasons for delays are
comparable across developing countries, several factors pertaining to local industry,
social-economic and cultural issues and project characteristics also contribute to delays.
2.5
Group Causes of Delay
There are many factors that contributed to causes of delays in construction
projects. Previous researches have classified factors of delays under various categories
(group) of causes. The benefit of grouping was to determine the factors which are related
through a common characteristic. It was not only revealed the common factor but also
helped to focus attention in generating the possible factors for a particular group.
Moreover, it is essential to determine the correct factors that cause the problem
in order to establish appropriate permanent corrective actions (Abd. Majid, 1997).
Therefore, the groups of causes by previous researchers are used as to provide a basis in
establishing the groups of delays causes with parallel to these research objectives.
25
Table 2.1: Group causes of delays
Group Causes of Delays
1.
2.
3.
4.
5.
Act of God,
Design-related
Construction-related
Financial/Economical
Management/
Administrative
6. Code related
Ahmed S.M. et al. (2002)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Client-related
Contractor-related
Surveyor-related
Architect-related
Structural engineer related
Services engineer-related
Supplier-related
Subcontractor-related
External causes
Aibinu and Odeyinka (2006)
1. Client related factors
2. Contractor related factors
3. Consultant/Design team
related factors
4. Material related factors
5. Labour and equipment
related factors
6. Contract related factors
7. Contract relationship
related factors
8. External factors
9. Project-related factors
Chan and Kumarasamy
(1997); Odeh and Battaineh
(2002); Sambasivam and
Soon (2006); Long et al.
(2008)
Classification of the above groups of causes may not be limited to those
mentioned. The classification of groups of causes however, is depends on how the
researchers derive the research’s result to meet the objective. The following section
presents the factors of delays for each group of causes that review earlier. A set of
factors that belong to a group of causes are cited from literature review.
2.6
Identify Causes of Delay
For the purpose of this research, the causes of delay that been established by
Chan and Kumarasamy (1997); Odeh and Battaineh (2002); Sambasivam and Soon
26
(2006); Long et al. (2008) are used. Following are the classification, the sources of
delays that arise from each of these factor categories were identified from literature. All
of these will be used in designing the questionnaire as to achieve the objectives of this
research.
2.6.1 Client-related factors
Several studies identified the factors of client related delays. Chan and
Kumarasamy (1997) in their study have listed the client characteristic, project financing,
client variation and interim payment to contractor. Sambasivam and Soon (2006)
identified the factor of interference, slow decision making and unrealistic contract
duration. Aibinu and Odeyinka (2006) have added the factors of late contract award by
client. Based on the literature review, there are eight factors of client related delays were
identified as shown in Figure 2.2.
Slow payment of completed works
Slow decision making
Unrealistic contract duration
Client related delay
Change order
Financial difficulties
Uncooperative client
Client interference
Slow decision making
Figure 2.3: Breakdown factors of client related delays
27
2.6.2 Consultant-related factors
Previous researchers have used this group of factors in their study. Chan and
Kumarasamy (1997) used the term of ‘design team related factors’. They elaborate the
factors into three: inadequate experience, project complexity and mistake in design.
Similarly, Ahmed S.M., et al. (2002) identified the factors of design development,
change order, changes in drawing and specifications, and incomplete document as
contributors to this group of delays. They grouped these factors into ‘design related’.
Aibinu and Odeyinka (2006) separated the consultant related factors into each
design team participant: architect, structural engineer, services engineer and quantity
surveyor. They added the factors of late valuation work, late preparation of interim
valuation, inadequate supervision, late issuance of instruction and delay work approval.
Therefore, researcher concludes the consultant-related factors as in Figure 2.4.
Defects in design
Changes in drawings and specification
Mistake in design
Incomplete document/drawing
Consultant
related delay
Inadequate supervision to contractor
Slow inspection of completed works
Late valuation work
Late preparation of interim valuation
Late issue of instruction
Delay of work approval
Figure 2.4: Breakdown factors of consultant related delays
28
2.6.3 Contractor-related factors
Numerous researchers were identified the factors of contractor related delays as
the main contributor to the causes of construction project delays. Delay caused by
contractors’ attributes most often were classified into five main items: failure to evaluate
the site or design, management problem, inadequate resources, poor workmanship and
subcontractor failures (Abdul-Rahman H. et al., 2001).
Odeh and Battaineh (2002) identified the factors of inadequate contractor
experience, inappropriate construction methods, poor site management and supervision
and unreliable subcontractor as contributors to causes of delays. Aibinu and Odeyinka
(2006) elaborated this group cause into contractor financial difficulties, inadequate site
supervision and planning and schedule problem. Hence, the factors were finally
categorized as shown in Figure 2.5.
Poor site management/coordination on site
Poor site management/supervision
Unsuitable construction method
Contractor
related delay
Construction mistakes
Inadequate experience
Defective of works
Poor subcontractor performance
Improper planning
Figure 2.5: Breakdown factors of contractor related delays
29
2.6.4 Materials-related factors
For this group cause, Chan and Sambasivam (1997) established the root causes
such as shortages, materials changes, delay in procurement and proportion of off-site
prefabrication. Other causes of delay are attributed to material-related factors include:
poor quality, damages materials, late delivery and shortage (Abd. Majid, 1997;
Sambasivam and Soon, 2006). Based on the previous literature review, researcher
decides to establish six factors of material-related delays as shown in Figure 2.6.
Shortage of materials
Materials
related delay
Material procurement problem
Material fabrication delay
Unforeseen material damages
Slow delivery of ordered materials
Noncompliance of material to specification
Figure 2.6: Breakdown factors of materials related delays
2.6.5 Labour-related factors
Several studies identified the factors of labour related delay. Sambasivam and
Soon (2006) in their study combined the labour factors and equipment related factor.
They identified the factors of labour supply, low productivity, equipment availability
and equipment failure. Chan and Kumarasamy (1997) identified the factors of low skill
30
level and weak motivation. Abd. Majid (1997) identified the factors of strike, poor
labour planning, slow mobilization, absenteeism and low morale. Based on the literature
review, there are seven factors of labour related delays were identified as shown in
Figure 2.7.
Labour disputes and strikes
Weak motivation
Labour related
delay
Unskilled labour
Low productivity
Shortage of manpower
Labour injuries/accident in site
Absenteeism
Figure 2.7: Breakdown factors of labour-related delays
2.6.6 Plant/Equipment related factors
Delay caused by plant/equipment attributes most often is classified into main
items: shortage, low efficiency, breakdown and wrong selection (Chan and
Kumarasamy, 1997; Abd. Majid 1997). Aibinu and Odeyinka (2006) added the factors
of maintenance problems, delivery problem and inadequate skill of operator. Therefore,
the delay factors related to plant/equipment were listed as shown in Figure 2.8.
31
Equipment shortage
Wrong selection
Plant/Equipment
related delay
Low efficiency
Equipment breakdown and maintenance problem
Equipment delivery problem
Inadequate skill of operators
Figure 2.8: Breakdown factors of Plant/Equipment related delays
2.6.7 Contract relationship related factors
Sambasivam and Soon (2006) in their study established the contract relationship
related delay. They identified the factors of dispute and negotiation, inappropriate
organizational structure linking to the project and lack of communication. Not many
previous studies have focused to this group of causes. Researcher found that this factor
is essential to be considered. Therefore, the delay factors related to contract relationship
were listed as shown in Figure 2.9.
Conflict between parties
Contract
relationship
related delay
Lack of communication between parties
Difficulties of coordination between parties
Figure 2.9: Breakdown factors of contractual relationship related delays
32
2.6.8 External factors
Delay that not caused by project participants are demarcated as external causes.
Following are the identified factors that arise from the external factors, particularly from
the work of Aibinu and Odeyinka (2006), Sambasivam and Soon (2006) and Chan and
Kumarasamy (1997). The external factors were listed as shown in Figure 2.10.
Inclement weather condition
Act of God
Price fluctuation
Slow process of Building permit
External factors
Government regulation
Problem with neighbour
Unforeseen site condition
Civil disturbance
Figure 2.10: Breakdown of External Factors
2.7
Delay Responsibility
The issue of delay responsibilities is related to whether the Contractor is
awarded, or is liable for costs and additional time to complete the project. According to
Ahmed et al. (2002) the categories of responsibilities are:
33
1)
Owner Responsible (or Agent): Contractor will be granted time extension and
additional costs (indirect), where warranted.
2)
Contractor or subcontractor Responsible: Contractor will not be granted time or
costs and may have to pay damages/penalties.
3)
Neither Party Responsible (force majeure): Contractor will receive additional
time to complete the project but no costs will be granted and no
damages/penalties assessed.
4)
Both Parties Responsible: Contractor will receive additional time to complete the
project but no costs will be granted and no damages/penalties assessed.
2.8
Procedure When Delays Occur
With time being the essence in most of the construction standard form of
contracts and with the project duration clearly defined, it is also important to follow the
procedures when delays occur. Table 2.2 indicates the procedure for an extension of
time under PAM 98 and PWD 203A standard form of contract.
Table 2.2: Standard procedure related to construction project delay
PAM 98
PWD 203A
Clause
Contractor’s Obligations
Clause
3.1
43
23.4
 If and when it become reasonably apparent that the progress
of the works is being or likely to be delayed, forthwith of the
occurrence of such event notify the architect in writing
identifying the relevant events causing the delays, giving
particular’s of the expected effect and estimate of the EOT
required.
 The notice shall contain sufficient information and reasons
why delay to completion will result.
 Submit to the architect his application for EOT complete
with particulars and estimates in a reasonable time before the
Date of Completion.
 Constantly use his best endeavours to prevent delay.
Clause
S.O’s / Architect’s Obligations
Clause
S.O’s / Architect’s Obligations
23.2
 Upon receipt a contractor’s notice, consider events causing
delay and by written notice to the contractor give a fair and
reasonable EOT.
 He regard to the sufficiency of the particulars and estimates
submitted by the contractor, ascertain and fix such new date
for completion within a reasonable time form receipt of the
notice.
 Not fix a date for completion earlier that the Date of
Completion stated in the Appendix.
43
 If in his/ her opinion the completion of the works is likely
to be delayed or has been delayed by specified events as
soon as he/ she is able to estimate the length of the delay.
23.1
23.3
23.3
23.5
43
Contractor’s Obligations
 Upon it becoming reasonably apparent that the progress
of the works is delayed, forthwith give written notice of
delay to the S.O.
 Constantly use his best endeavours to prevent delay.
35
2.6
Documentation of Delays
Proper construction delay management requires an extensive documentation.
This is essential particularly for the purpose of delay claim. The time to start
documenting, or maintaining detailed records regarding construction delays, is not when
it is first realized that a project is being delayed but much earlier. A delay claim
documentation/prevention program should be implemented at the beginning of the
project (Yates and Epstein, 2006). After the fact documentation is extremely costly, is
distracting, and often produces inaccurate and misleading results. The preferred
approach is to institute a proper project documentation program throughout the course of
the project.
Two important areas of proper construction claims management are CPM
scheduling and notice compliance (Yates and Epstein, 2006). CPM is a widely
recognized method of establishing and measuring construction delays. The effective use
of CPM in the presentation, or defense, of construction delay claims requires the
establishment of several accurate schedules for a particular project. These are as-planned
schedules, as-built schedules, and as-adjusted schedules.
2.7
Summary
From the discussion and explanation on this chapter, a lot of information
regarding the concept of delays as well as the causes of delays in construction project
has been identified. Methods of mitigating construction delays can be established when
causes of delays are identified. In the following chapter, the available strategy to reduce
or mitigate delays in construction project will be explored.
CHAPTER 3
EFFECTS AND MINIMIZING DELAYS
3.1
Introduction
A completion of construction project within time was seen become a key
criterion of project success. Delays in construction project can increase the time and cost
allocated for executing the various project activities, resulting in project cost overruns
and late completions. Causes of time and cost extensions can result from all phases of
projects, works, and circumstance; however, major troubles usually thrive during
construction phases.
The latter effect will only occur when the delay lies on the critical path of the
programme. This chapter is a continuation of the findings on the literature search. It is
focusing on the review of delays effects that been identified by previous researchers. In
addition, it explored widely the methods of mitigation of delays recommended by
several researchers.
37
3.2
Effects of Delay in Construction Project
Delays in construction project completion seem to be a perennial problem. When
projects are delayed, they are either accelerated or have their duration extended beyond
the scheduled completion date. Delays are usually accompanied by cost increases. The
subject of delay has been addressed by several researchers and they found that delay
always led to the negative effects.
Abd. Majid (1997) state that delay may lead to disputes, low productivity and
increases in cost. Alkass et al. (1994) addressed that delay are costly and often result in
prolonged litigation by the parties. Additionally, associated delay problems can also
result in total abandonment of project (Aibinu and Jagboro, 2001).
Abdul-Rahman H. et al. (2006) in their study found that delays effect to the
disruption of work, loss of productivity, late completion of project, increased time
related costs, third party claims and termination of contract. Li et al. (2000) have shown
that additional costs, decline in quality and rework, are three possible situations due to
the delay.
Some extent the contract parties through claims usually agree upon the extra cost
and time elongation associated with delay. This has in many cases given rise to heated
arguments between the owner and contractor. Thus, delay could generate distrust and
create tension between the contractor, owner and the owners’ project management team
(Aibinu, 2009). It reduces the ability of the parties to resolve the claims expeditiously
due to delay. These have a debilitating effect on clients, contractors, and consultants in
terms of growth in adversarial relationships, mistrust, arbitration, cash-flow problems,
and a general feeling of trepidation towards each other (Ahmed, et al., 2002).
38
Aibinu and Odeyinka (2006) added that processing time and cost related claims
associated with delays always generate dispute and further delays. Disputes may arise
from questions relating to causal factors, contract interpretation, and quantum of the
claims. In some instances delays occur that are neither the fault of the owner, nor their
consultants or contractors, or that may have concurrent or multiple causes which have to
be carefully analyzed in order to properly assess responsibility (Yates and Epstein,
2006). Enormous amounts of time and energy are expended to resolve issues related to
the causes of delays.
In gist, delays give rise to disruption of work, late completion of project,
increased time related costs, third party claims, total abandonment and termination of
contract. Based on the literature review, researcher identified major effects of delay as
shown in Figure 3.1.
Time overrun
Cost Overrun
Major Effect
of Delays
Dispute
Arbitration
Litigation
Abandonment
Termination of Contract
Figure 3.1: Major effects of delay in construction project
39
3.3
Methods in Minimizing Construction Project Delays
Several researchers have recommended the methods of minimizing delay in
construction project. Chan and Kumarasamy (1997) suggested that the minimization of
time overrun would require: strong management teams; thorough investigation of site
conditions, together with the design of groundwork and foundations. They added that
developing communication systems linking all project teams was the significant way to
mitigate this matter.
Aibinu and Jagboro (2002) conducted a study on the effect of delays on project
delivery in Nigeria. They identified two methods to minimize or if possible eliminate
time overrun. There were acceleration of site activities and contingency allowance.
Odeh and Battaineh (2002) recommended the following to improve the delays
situation in Jordan: enforcing liquidated damage clauses; offering incentives for early
completion; developing human resources through proper training and classifying of
craftsmen; adopting a new approach to contract award procedure by giving less weight
to prices and more weight to the capabilities and past performance of contractors; and
adopting new approaches to contracting, such as design-build and construction
management types of contracts.
Ahmed S.M. et al. (2002) in their study of delays in Florida have recommended
streamlining the Buildings Permit Approval Process as much as possible. The issues
such as changes in drawings, incomplete and faulty specifications and change orders
must be controlled with proper design process management and timely decision making.
40
Abdul-Rahman H. et al (2006) identified the procedures taken by contractor as to
recover delays. From their survey, recommended procedures were increasing the
productivity by working overtime hours or working by shifts, followed by asking for
extension of time. If the problem was shortage of resources, they suggested rescheduling
the activities within the available resources, using skilled labours and by using
subcontractors. The respondent also agreed that site meetings are essential in solving the
problems with the condition that it should not be too frequent.
Majid, I.A. (2006) has conducted study of delays in Acheh Indonesia. He listed a
total of thirty five methods in order to minimize construction delays as shown in the
following.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Competent project manager;
Ensure adequate and available source of
finance;
Multidisciplinary/competent project team;
Availability of resources;
Commitment to projects;
Adopting a new approach to contract award
procedure by giving less weight to prices and
more weight to the capabilities and past
performance of contractors;
Adopting new approaches to contracting such
as Design-Build (D/B) and Construction
Manager (CM) type of contract;
Complete and accurate project feasibility
study and site investigation;
Acceleration of site clearance;
Comprehensive contract documentation;
Frequent progress meeting;
Project management assistance;
Use up to date technology utilization; and
Use of experienced subcontractors and
suppliers;
Complete and proper design at the right time;
Competent personnel of consultant/designer;
Competent and capable of client’s
representative
18. Site management and supervision;
19. Use of proper and modern construction
equipment;
20. Proper project planning and scheduling;
21. Accurate initial cost estimates;
22. Use of appropriate construction methods;
23. Community involvement;
24. Proper emphasis on past experience;
25. Frequent coordination between the parties
involved;
26. Absence of bureaucracy;
27. Clear information and communication
channels;
28. Accurate initial time estimates;
29. Proper material procurement;
30. Developing human resources in the
construction industry through proper
training;
31. Allocation of sufficient time and money at
the design phase;
32. Awarding bids to the right/experience
consultant and contractor;
33. Perform a preconstruction planning of
project tasks and resources needs;
34. Systematic control mechanism; and
35. Effective strategic planning.
41
Kaliba, Muya and Mumba (2009) studied the schedule delays in road
construction projects in Zambia. They suggest the following recommendation to
minimize the causes and effect of schedule delays: project timing and scheduling; well
defined scope; accurate cost estimate; availability fund for project; effective
communication; deliberate scheme to build capacity building; and legislation and good
corporate government.
Based on several studies of project success factors and minimizing delays in
construction project, a total of twenty three methods have been identified in order to
minimize construction delays as shown in Table 3.1.
Table 3.1: Methods of minimizing construction delays
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Methods
Utilization of the latest construction technology method
Frequent site meeting with all functional parties
Not awarding contract based on the lowest bid
Increase productivity by working overtime, shift, etc
Offer incentive for early project completion
Ask for extension of time
Execute delayed activities by subcontractors
Promote team working among project participants
Developing human resources management (training, day courses, etc)
Timely decision making by all functional group
Proper project planning and scheduling
Developing appropriate communication system linking to all functional group
Early in obtaining permit and approval from relevent authority
Thorough project feasibility study and site investigation
Accurate initial project cost estimation
Hire experience personnel for project implementation
Build a systematic project control and monitoring mechanism
Absence of bureaucracy
Proper emphasis on past experience of project parties
Accurate initial time estimation
42
21
22
23
3.4
Ensure the availability of resources ( finance, materials, equipment, workmen, etc)
Select the competent project manager
Use the appropriate construction methods
Summary
By understanding this chapter, various information regarding the effects of
delays and methods to mitigate delays were obtained. In the following chapter, the
methodologies used to perform this study will be discussed. Methodologies for data
collection, data analysis and reporting results will be elaborated in detail.
CHAPTER 4
RESEARCH METHODOLOGY
4.1
Introduction
Research methodology is a way to provide a guideline for researcher to achieve
the aim and objectives of the study. This chapter shows the chronological of research
methodology and discusses the methods of conducting research in order to achieve the
objectives. It is essential to describe the methodologies used throughout this research to
ensure all the data and information gathered is reliable and to show that it is
systematically collected and analyzed. The raw data obtained from the respondent will
be analyzed and studied in depth before deriving conclusion.
4.2
Data Collection
Data collection is the most critical part since the accuracy of the data obtained
will determine the success or failure of this research. The data of this research were
collect through the literature review and survey questionnaires.
44
4.2.1 Literature Review
All information regarding delays in construction project was gathered through a
literature review. Literature reviews was carried out to enhance the understanding of
theory regarding the research problem. The materials for literature reviews are such as
books, articles, magazines, internet, journals, documents and other’s research papers.
These reading materials provided a good primary source for the research. The
information, which is relevant, was used as a benchmark against primary data collected
to support the research.
4.2.2 Development of Questionnaire
The questions were designed related to the research objectives especially on the
causes of delays and proposed methods to minimize delays. Before designing the
questionnaire, there a very important point that needs to be considered. The questions
have to be short and precise without touching any sensitive or confidential issues as
reject may be offended (Taylor S, 2005). The purpose is to facilitate the respondent’s
understanding. Subsequently, the questionnaires were sent to 90 respondents (clients,
consultants and contractors) with the proportion of 50:50 in Johor and Sabah.
Questionnaires were created based on the information gathered from literature
review. A thorough checking for the questionnaire has been made to evade any mistake
and also to ensure only relevant questions is included in the form. The design and
structure of the questionnaire was subsequently rechecks by the supervisor for any
45
correction and reasonable amendment. After the form had been approved, it is made into
a numbers of copies and ready to be distributed.
The questionnaires were divided into three main sections. The respondents were
first asked about their personal and organization background in section A. Subsequently
in section B, the respondents were asked to state the frequency and severity effects on
the fifty six delay causes, according to their local working experience in construction
industry. Section C is about the methods that minimize construction project delays.
Respondent were required to give their opinion regarding the effectiveness of
minimizing delays method. In addition, respondents were also encouraged to cite
additional causes thought to extend the construction duration project by overall.
4.2.2.1 Section A
Section A is to obtain the information of respondent’s background as well as
their organization. The typical questions that been asked include the following:

The company in which the respondent represents

The position of the respondent in the company

The experience of the respondent in construction project

The experience of the company in construction industry

The actual time spent for the delayed project
The organization or respondents name and official stamp are essential as to prove
that the questionnaire form was answered by respondent. In addition, it is to ease
researcher to contact the respondent for any clarification or follow-up questions purpose.
46
4.2.2.2 Section B
Section B is to obtain the information on causes of delays in construction
projects from the perspective of client, contractors and consultants. There were eight
categories with fifty six factors of delay causes identified in this structures question.
This section requires the respondent to answer the frequency of occurrence as well as the
severity of effect associate with their project based on the delay causes given.
The questionnaire is based on Likert Scale of five ordinal measures from one (1)
to five (5) according to level contributing. According to John F. (2001), Likert Scale is
easier to use for respondent to express their level of opinion. For the frequency of
cause’s occurrence, each scale represents the rating as shown in Table 4.1. In a
meanwhile, Table 4.2 shows the rating for the severity of effects for the causes.
Table 4.1: Likert scale for frequency of occurrence of related delay causes.
Category
Never
Rarely
Sometimes
Often
Greatly often
Rating
1
2
3
4
5
Table 4.2: Likert scale for the severity of effects of related delay causes.
Category
Not affect
Slightly
affect
Moderate
affect
Great
affect
Very great
affect
Rating
1
2
3
4
5
47
4.2.2.3 Sections C
This section is to identify the effective methods of minimizing construction
delays. Twenty three methods were identified from several literature reviews which used
in the structured question. The questionnaire is mainly based on Likert’s scale of five
ordinal measures from one (1) to five (5) according to level of effectiveness. Each scale
represents the following rating as shown in Table 4.3.
Table 4.3: Rating Scale for the proposed methods that minimize delays
Categories
Rating
Not effective
1
Low effective
2
Moderate effective
3
High effective
4
Very high effective
5
4.2.3 Questionnaire Distribution
The respondents involved in this research were the clients, consultants and
contractors respectively in Johor and Sabah. According to Paul Cozby (2003) a large
sample data can give more accurate result. Therefore, researcher had distributed about
fifteen sets of the questionnaire form to each party in Johor and Sabah with the total is
ninety sets. The respondent is randomly selected, but for the contractor party, only grade
7 and 6 were been anticipated.
48
Their addresses were obtained from internet particularly through the
Construction Industry Development Board (CIDB) directory 2009, Board of Quantity
Surveyor Malaysia, Institution of Engineer Malaysia and Public Work Department
website. A questionnaire accompanied by covering letter briefly stating the objectives of
the survey, was issued to the selected respondents who were later followed up by
telephone.
There were two main method been used for the purpose of this questionnaire
distribution; via mail delivery and by hand method. Even though there were another
alternatives that can be applied, but due to the time limited the researcher think that it is
reasonable to use those mention methods to fulfill the objectives.
4.2.4 Data Analysis
According to Odeh and Battaineh (2002), Relative Importance Index (RII) is the
appropriate method in determining the ranking of different factors from the different
group of respondents. Since in this research need to rank the frequency of occurrence
and severity effect, therefore, to avert any confusion, RII in this context is named as
Frequency Index (F.I.) and Severity Index (S.I) as adopted from Lee et al., (2008).
Lee et al. (2008) used the ‘frequency and severity index’ method to determine
the frequency of occurrence and level of severity effects on the delay causes. Five-point
scale ranged from 1 (Never) to 5 (Greatly Often) was adopted and transformed to
frequency index. Frequency index or F.I. expresses occurrence frequency of factor
responsible for delay and cost overruns. It is computed as shown in equation (1). Where:
49
a = constant expressing the weight assigned to each responses (ranges from 1 for Never
to 5 for Greatly Often), n = frequency of each response, N = total number of responses.
. .=
∑
∗
. (1)
The same procedure was adopted for ranking the severity of effect on the delay
causes. Severity index or S.I. is an index expresses severity of factor that caused delay
and cost overruns. The indices were evaluated using the similar expression, shown in
equation (2). Where: a = constant expressing the weight assigned to each responses
(ranges from 1 for Not Affect to 5 for very Great Affect), n = frequency of each response,
N = total number of responses.
. .=
∑
∗
. (2)
In addition, a similar RII was used to analyze objective 3. To obtain significant
causes of delay, importance index need to be computed. Importance index (IMP.I.) is the
index expresses the overview of causes based on both their frequency and severity. It is
computed as per following formula shown in equation (3). Subsequently, the results of
analysis obtained was presented in tables and graphs and discussed to establish a
conclusion and add any recommendation.
. = . x .
. (3)
50
4.2.5 Summary
In order to achieve the objectives of the study, the research methodology has
been established. This study was carried out based on literature review and questionnaire
survey. Next chapter would be the analysis and discussion for the research findings.
CHAPTER 5
DATA COLLECTION AND PRELIMINERIES ANALYSIS
5.1
Introduction
This chapter is presents in detail on the data collected and the analysis carried out
based on the methodology described in chapter 4. The analysis performs on the
information obtained through questionnaire survey. This chapter discusses the outcome
of the survey.
5.2
Data Collection
As described in chapter 4, the questionnaire has three sections. Section A
comprises of respondents background, Section B comprises of frequency of occurrence
and severity effects on the fifty six delay causes, and Section C asked for the effective
methods that minimize project delays.
52
5.3
Questionnaire Response
Out of 90 questionnaires, the proportion of distribution is (15:15:15) x 2 to the
group of clients, consultants and contractors in Johor and Sabah. 56 responded fully to
the questionnaire, giving 62.0 percent responds rate. The feedbacks comprise 39.29
percent contractors, 32.14 percent representing consultants, remaining 28.57 percent
from clients/developers from each region. The response rate enables statistical analysis
to be performed and conclusions to be made. The total of respondent feedback is shown
in Table 5.1.
Table 5.1: Statistical results for the respondents’ feedback in Johor and Sabah
Johor
Sabah
Group of
Respondents
Frequency
Percentage
Frequency
Percentage
Total
Percentage
Clients /Owners
Consultants
Contractors
Total
8
9
11
28
28.57
32.14
39.29
100.0
8
9
11
28
28.57
32.14
39.29
100.00
28.57
32.14
39.29
100.0
5.3.1 Respondent’s Position
Table 5.2 represent for the distribution of the respondents by type of positions.
The highest percentage of respondents are consist of 39.29 percent engineers, 32.14
percent project manager, 14.29 percent quantity surveyor, 1.79 percent site manager and
the remaining are from types of ‘others’; town planners, development manager and site
officer. Thus, the respondents are eligible person to giving this research’s data.
53
Table 5.2: Statistical results for the respondents’ type of position
Johor
Position
Engineer
Quantity Surveyor
Project Manager
Site Manager
Others
Total
Sabah
Frequency
Percentage
Frequency
Percentage
Total
Percentage
12
1
9
1
5
28
42.9
3.6
32.1
3.6
17.8
100.0
10
7
9
1
1
28
35.7
25.0
32.1
3.6
3.6
100.00
39.3
14.3
32.1
3.6
10.7
100.0
5.3.2 Respondents Experience in Construction Industry
Regarding number of years involved in construction, 17.86 percent of
respondents have less than 5 years, 57.14 percent of those have between 5 to 15 years
and 25.0 percent of those have 15 years or more. The experience possess by the
respondents may helps in providing a better understanding of this matter and in better
position in giving much precise answer required to the questionnaires form.
However, it would be better if the percentage of respondents whose experiences
are 15 years or more can be increased. In fact, these ratios reflect the current
phenomenon of local industry, that is a large amount of young practitioners have been
graduated in current years to meet the vast human demand, and they have got high
positions in their organizations. Table 5.3 shows the result of working experience by
respondents involved in this study.
54
Table 5.3: Statistical results of respondents’ working experience
Johor
Sabah
Years working
experience
Frequency
Percentage
Frequency
Percentage
Total
Percentage
Less than 5 years
5 – 15 years
More than 15 years
Total
6
14
8
28
21.4
50.0
28.6
100.0
4
18
6
28
14.3
64.3
21.4
100.0
17.9
57.1
25.0
100.0
5.3.3 Organization Involvement in Construction Industry
Regarding number of years the organization involved in construction, 12.5
percent of respondents have less than or equal to 5 years, 37.5 percent of those have
between 5 to 15 years and 50.0 percent of those have 15 years or more. The experience
possess by the respondents may helps in providing a better understanding of this matter
and in better position in giving much precise answer required to the questionnaires form.
Table 5.4: Statistical results of organization involvement in construction industry
Johor
Sabah
Years working
experience
Frequency
Percentage
Frequency
Percentage
Total
Percentage
Less than 5 years
5 – 15 years
More than 15 years
Total
3
10
15
28
10.7
35.7
53.6
100.0
4
11
13
28
14.3
39.3
46.4
100.0
12.5
37.5
50.0
100.0
55
5.3.4 Respondents’ Most Delayed Project
Table 5.4 represents the results for the most delayed project by respondents. The
highest rate of 46.4 percent of the respondents having 3 to 6 month late, 33.95 percent of
having less than 3 month late and 19.65 percent of more than 6 month late for the actual
time spent for the most delayed project. This is important to ensure they are well
qualified to offer reliable opinions on the questionnaire.
Table 5.5: Statistical results for the most delayed project by respondents
Range of delay
duration
Less than 3 month
3 to 6 month late
More than 6 month
Total
Johor
Sabah
Frequency
Percentage
Frequency
Percentage
Total
Percentage
11
12
5
28
39.3
42.8
17.9
100.0
8
14
6
28
28.6
50.0
21.4
100.0
34.0
46.4
19.6
100.0
CHAPTER 6
ANALYSIS AND DISCUSSIONS
6.1
Introduction
This chapter is presents the outcomes of the analysis on the data collected
through questionnaire survey. The analysis on the data and information gathered will be
based on the objectives to achieve the pre determined objectives of the study. This
chapter is divided under several headings. Under the heading, there would be sub
headings to ensure analysis and discussion is carried out in detail and specifically.
6.2
Finding 1: Frequency and Severity Effects on the Causes of Delays
The objective of this section is to study the causes of delays by frequency of
occurrence and its severity effect to construction project. A total fifty six causes that
contribute to construction project delays have been identified from the literature review.
The fifty six causes were categorized into eight major groups: contractor-related, client-
57
related,
consultant-related,
material-related,
contract-relationship
related,
plant
/equipment-related, labour-related and external factors. These causes will be ranked
within their group of causes based on relative importance index as mentioned in the
chapter 4.
There must be disparities in the ranking order of frequency occurrence and
severity effect by overall. It means that not necessarily the more the causes frequently
happens, the more it contribute severe impacts to the project. Therefore, it is essential to
consider both frequency of occurrence and the severity effect of the causes into
construction project. Derivation of importance index (IMP.I.) is important as they can
point out the significant causes that contribute to project time overrun. Thus, the
suggestion of corrective action in minimizing project delays can be established based on
these significant causes. The following is the brief description and discussion of these
causes according to their groups.
6.2.1
Causes of Contractor Related Delays
There are eight delay causes related to contractor were identified and ranked
from the viewpoint of respondents in Johor and Sabah. Table 6.1 shows the results of
survey analysis on the causes of contractors’ related delays. These causes were ranked
based on frequency and severity index between group of client, contractor and
consultant.
According to Table 6.1, ‘financial difficulties’ was ranked as the most frequent
factor in Johor. This is followed by ‘poor site management and supervision’ and ‘poor
subcontractor performance’. In term of its severity of effect to the project, ‘financial
58
difficulties’ and ‘poor site management and supervision’ remain the first and second
causes among the category of contractor-related delay. However, ‘improper planning’
which is at the sixth rank in frequency, has been ranked 3 in severity index. Contrarily in
Sabah, the top frequent causes of delay are ‘poor site management’, ‘financial
difficulties’ and ‘improper planning’. Meanwhile, the top severity indexes are ‘financial
difficulties’, ‘poor site management and supervision’ and ‘improper planning’.
Table 6.1: The result of contractor related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Poor site management and
supervision
0.6786
2
0.6857
4
0.6857
1
0.7143
2
Financial difficulties
0.7214
1
0.7929
1
0.6286
2
0.7143
1
Unsuitable construction
method
0.5500
7
0.5714
8
0.5143
6
0.5429
7
Mistakes during construction
0.5143
8
0.5786
7
0.4571
8
0.5500
6
Inadequate contractor
experience
0.6071
4
0.6500
5
0.5000
7
0.5714
5
Defective of works
0.5786
5
0.6429
6
0.5357
5
0.5413
8
Poor subcontractor
performance
0.6786
3
0.7429
2
0.5571
4
0.6214
4
Improper planning
0.5643
6
0.7214
3
0.6286
3
0.6714
3
6.2.2 Causes of Client Related Delays
Table 6.2 represents the results of survey analysis on the causes of clients’
related delays. ‘Slow payment of completed work’ is the factor that always happens in
59
Johor, followed by ‘financial difficulties of client’ and ‘client interferences’. However,
the severity effects of these causes were ranked at first, second and fifth respectively.
Differently in Sabah, ‘slow decision making’ is the most frequent factor of delay with
the highest frequency index of 0.6929. This factor is underlying at rank 2 in term of its
severity effect to the project. The most severe cause is ‘slow payment of completed
work’.
Table 6.2: The result of client related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Client interference
0.6214
3
0.6071
5
0.5357
5
0.6000
5
Slow decision making
0.5929
5
0.5786
7
0.6929
1
0.6857
2
Contract modification
0.5357
8
0.5786
8
0.5357
4
0.5929
7
Change order
0.6143
4
0.6643
2
0.5929
3
0.6000
4
Financial difficulties of client
0.6357
2
0.6429
4
0.4929
6
0.6429
3
Uncooperative client
0.5643
6
0.6000
6
0.4857
7
0.5929
6
Slow payment of completed
work
0.6643
1
0.6714
1
0.6071
2
0.7786
1
Unrealistic contract duration
0.5429
7
0.6429
3
0.4357
8
0.5357
8
6.2.3 Causes of Consultant Related Delays
There are ten causes of consultant related delays that been ranked by respondents
in Johor and Sabah as shown in Table 6.3. Among the causes in this group, ‘late issue of
instruction’ is the frequent delay factor in Johor. However, this factor brings less severe
impact to project (rank 6). Similarly for the ‘changes in drawings/specification’,
whereby its severity is at the rank 7.
60
In Sabah, ‘changes in drawings/specification’ are ranked as the first factor for
both frequency and severity index. Frequent changes in drawings or specifications can
result severe impact to the progress of work. Construction industry in Sabah should put a
major concern for this factor. Apart from that, the frequency index and severity index for
‘inadequate supervision to contractor’ were slightly similar. However, they were
different in rank.
Table 6.3: The result of consultant related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Mistake in Design
0.5357
9
0.6286
4
0.4357
9
0.5643
6
Changes in drawings
/specifications
0.6071
2
0.6071
7
0.6286
1
0.6500
1
Incomplete
documents/drawing
0.5500
7
0.6286
3
0.5714
3
0.6071
5
Defects in design
0.5500
5
0.6071
5
0.4143
10
0.5500
7
Inadequate supervision to
contractor
0.6071
3
0.6643
1
0.5000
6
0.5500
8
Delay of work approval
0.5000
8
0.6429
2
0.5500
4
0.6429
3
Late issue of instruction
0.6143
1
0.6071
6
0.5929
2
0.6500
2
Slow correction of design
problem
0.5714
4
0.6000
8
0.4714
7
0.5214
9
Late valuation work
0.5500
6
0.5786
9
0.5429
5
0.6286
4
Slow inspection of completed
works
0.4929
10
0.5143
10
0.4500
8
0.5071
10
61
6.2.4 Causes of Material Related Delays
In Table 6.4, shows the results on causes of materials-related delays. In Johor,
the ranking of frequency index was lead by ‘material shortage’, followed by ‘material
fabrication problem’ and ‘slowness of delivery materials’. ‘Shortage of materials’ and
‘material procurement problem’ had been ranked as the factors which give the most
severe impact to the project. Similarly in Sabah, ‘shortage of materials’ ranked as the top
1 for both frequency and severity index. Subsequently, ‘material procurement problem’
was ranked at 2 with its severity index is higher than frequency index.
Table 6.4: The result of material related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Shortage of material
0.6357
1
0.6929
2
0.4929
1
0.6286
1
Material procurement
problem
0.5500
2
0.6929
1
0.4857
2
0.5643
6
Material fabrication delay
0.5857
4
0.5857
6
0.4714
5
0.5786
5
Unforeseen material damages
0.5071
6
0.5929
5
0.4786
4
0.5857
4
Slow delivery of ordered
materials
0.5857
3
0.6000
4
0.4857
3
0.6143
2
Noncompliance of material to
specification
0.5714
5
0.6214
3
0.4571
6
0.6071
3
6.2.5 Causes of Plant/Equipment Related Delays
Table 6.5 highlights the responses of survey expressed in frequency and the
severity indices for the plant/equipment related delays. Both respondents in Johor and
62
Sabah agreed that ‘equipment breakdown and maintenance problem’ is the frequent
factors in their project. In term of severity, the similar factor shows the highest ranking
for both regions.
Table 6.5: The result of plant/equipment related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Equipment shortage
0.5500
2
0.6214
1
0.4214
3
0.5214
5
Wrong selection
0.5214
3
0.5286
5
0.3857
6
0.5000
6
Low efficiency
0.5000
5
0.5143
6
0.4000
5
0.5214
4
Equipment delivery problem
0.5143
4
0.5786
3
0.4071
4
0.5357
3
Inadequate skill of operators
0.4929
6
0.5571
4
0.4357
2
0.5429
2
Equipment breakdown and
maintenance problem
0.6143
1
0.6143
2
0.4714
1
0.5500
1
6.2.6 Causes of Contract-Relationship Related Delays
Table 6.5 presents the result of contract-relationship related delays. It can be seen
that ‘lack of communication’ is always happen in Johor, followed by ‘coordination
problem’ and ‘conflict between parties’. Likewise, in Sabah, the similar factor; ‘lack of
communication’, is the most often factor that contribute to project delay. This factor also
brings severe impact since the severity index is higher than frequency index.
63
Table 6.6: The result of contract-relationship related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Conflict between parties
0.5500
3
0.5500
2
0.5071
2
0.6357
1
Difficulties of coordination
between parties
0.5714
2
0.5571
1
0.5000
3
0.5786
3
Lack of communication
between parties
0.5786
1
0.5286
3
0.5214
1
0.6071
2
6.2.7 Causes of Labour Related Delays
Table 6.7 shows the result of labour related delays in Johor and Sabah. In Johor,
it can be seen that the top in ranking are ‘shortage of manpower’, followed by ‘low
productivity’ and ‘lack of skilled labour’, for the both frequency and severity index.
However, the severity indices are higher than frequency indices for these causes.
Differently in Sabah, the most frequent factor is the ‘shortage of manpower’, ‘lack of
skilled labour’ and ‘low productivity’. However, it brings less impact to the project.
Respondents in Sabah agreed that ‘shortage of manpower’ can bring the biggest impact
to project.
Table 6.7: The result of labour related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Labour disputes/strikes
0.4857
5
0.5786
4
0.3500
7
0.5286
5
Weak motivation
0.5071
4
0.5786
5
0.4000
5
0.5214
6
Lack of skilled labour
0.5714
3
0.6071
3
0.5071
2
0.5429
4
Low productivity
0.5929
2
0.6429
2
0.5357
3
0.5143
2
Shortage of manpower
0.6500
1
0.7214
1
0.5214
1
0.7000
1
64
Labour injuries/accident in
site
0.4571
7
0.4857
7
0.3714
6
0.4714
7
Absenteeism
0.4714
6
0.5214
6
0.4071
4
0.6000
4
6.2.8 Causes of External Related Delays
There are eight factors of external related delays that contribute to construction
project delays, have been ranked by the respondents in Johor and Sabah as shown in
Table 6.8 ‘Inclement weather condition’ was ranked as the most frequent and severe to
the construction project by respondents from both regions. The causes that less happen
in term of ranking in Johor and Sabah are ‘civil disturbance’, ‘price fluctuation’ and ‘act
of God’. In both regions, there have similarity in ranking order for the severe delay
causes. They are ‘unforeseen site condition’, ‘bad weather’, ‘act of God’ and ‘price
fluctuation’.
Table 6.8: The result of External related delays
Johor
Sabah
Causes
F.I
Rank
S.I
Rank
F.I
Rank
S.I
Rank
Act of God
0.4929
6
0.5786
3
0.4643
6
0.6357
3
Inclement weather condition
0.5857
1
0.6143
2
0.6214
1
0.6643
2
Price fluctuation
0.4929
6
0.5786
3
0.4643
6
0.6357
3
Government regulation
0.5143
5
0.5643
5
0.5286
4
0.6071
6
Problem with neighbour
0.5571
2
0.5786
4
0.5714
2
0.6286
4
Unforeseen site condition
0.5429
3
0.6429
1
0.5286
5
0.7000
1
Civil disturbance
0.4500
7
0.4714
7
0.4286
7
0.5571
7
Slow process of Building
permit
0.5357
4
0.5214
6
0.5286
3
0.6214
5
65
6.2.9 Ranking of Frequency on Delay Causes
Previous section is the brief description on the result and analysis for the
objective 1. The result and analysis are based on the group causes respectively. This
section will be the analysis of delay causes based on overall fifty six causes. Table 6.9
and Table 6.10 were highlights the ranking of frequency of occurrence for the causes of
delays by overall. Top ten frequent causes of delays have been listed.
From table 6.9, the result reveals that contractor in Johor often encounter
financial problem during the construction phase. ‘Poor site management/supervision’,
‘poor subcontractor performance’, ‘slow payment of completed work’ and ‘shortage of
manpower’ were ranked as the main problems. Two of them are related to incompetence
of managerial and operational problem in construction project. ‘Slow payment’ by client
was affect to the contractor financial problem. ‘Shortage of manpower’, ‘shortage of
materials’ and ‘equipment breakdown problem’ represent as a sole factor from the group
of labour related, material related and equipment related delays. Overall, it was observed
that the top ten frequent causes were contributed from the group of client and contractor
related delays.
Table 6.10 shows the ranking of top ten causes based on its frequency of
occurrence. Contractor related, client related and consultant related delays were equally
the main group causes of delay in Sabah construction industry. . These group causes
contribute three factors from each group respectively. The causes with higher in
occurrence was led by ‘slow decision making’, ‘poor site management and supervision’
and changes in drawing and specification’ ‘Inclement weather condition’ was the sole
factors represent from the group of external factor.
66
Table 6.9: Ranking of frequency in Johor
Causes
Group
Number of respondents scoring
5
4
3
2
1
6
12
5
3
2
F.I.
Rank
0.7214
1
Financial difficulties
Contractor
Poor site management/supervision
Contractor
4
9
10
4
1
0.6786
2
Poor subcontractor performance
Contractor
1
12
12
3
0
0.6786
3
Slow payment of completed work
Client
6
6
8
7
1
0.6643
4
Shortage of manpower
Labour
3
8
10
7
0
0.6500
5
Material
6
5
7
8
2
0.6357
6
Financial difficulties of client
Client
4
9
5
8
2
0.6357
7
Client interference
Client
1
7
14
6
0
0.6214
8
Change order
Client
4
5
8
11
0
0.6143
9
Equipment
2
7
12
5
2
0.6143
10
F.I.
Rank
0.6929
1
Shortage of material
Equipment breakdown problem
Table 6.10: Ranking of frequency in Sabah
Causes
Slow decision making
Group
Client
Number of respondents scoring
5
4
3
2
1
6
8
7
7
0
Poor site management /supervision
Contractor
4
9
11
3
1
0.6857
2
Changes in drawings/specifications
Consultant
4
7
9
5
3
0.6286
3
Financial difficulties
Contractor
4
7
8
7
2
0.6286
4
Improper planning
Contractor
3
9
7
7
2
0.6286
5
External
0
9
14
4
1
0.6214
6
Client
2
8
9
7
2
0.6071
7
Consultant
5
3
6
14
0
0.5929
8
Client
2
9
5
10
2
0.5929
9
Consultant
2
5
11
7
3
0.5714
10
Inclement weather condition
Slow payment of completed work
Late issue of instruction
Change order
Incomplete documents/drawing
67
6.2.10 Ranking of Severity Effect on Delay Causes
Previously is the brief description on the result and analysis for the frequency of
occurrence. This section will be the analysis of the severity effect on the delay causes
based on overall fifty six causes. Top ten frequent causes of delays have been listed.
Table 6.11 and table 6.12 were highlights the ranking of severity effect for the
causes of delays by overall. In table 6.11, respondent in Johor agreed that ‘contractor’s
financial problem’, ‘poor subcontractor performance’, ‘improper planning’, ‘shortage of
manpower’ and ‘shortage of material’ are ranked as the main causes that bring severe
effect to the project. By overall, the causes from the contractor related category were
ranked as the severe causes to construction project. ‘Shortage of manpower’ was among
the most severe factor in delay causes. It is quite difficult to prevent the movement of
these laborers from one construction company to another causing disruption of work.
Meanwhile, table 6.12 shows the ranking of severity effect for Sabah
construction project. Problems ranking from one to ten are mainly contributed by
contractors. The results indicate that there has linkage between the slow payment of
work by client and the financial difficulties of contractor. Both of these factors were
ranked at first and second. The contractors blame client’s inability to pay for the
completed work. These causes can be attributed to the contractor’s financial position and
improper planning.
68
Table 6.11: Ranking of severity effect in Johor
Causes
Group
Number of respondents scoring
5
4
3
2
1
11
8
6
3
0
S.I.
Rank
0.7929
1
Financial difficulties
Contractor
Poor subcontractor performance
Contractor
7
8
11
2
0
0.7429
2
Improper planning
Contractor
6
9
9
4
0
0.7214
3
Shortage of manpower
Equipment
4
10
10
4
0
0.7214
4
Shortage of material
Material
5
9
10
2
2
0.6929
5
Material procurement problem
Material
5
9
8
6
0
0.6929
6
Poor site management/supervision
Contractor
4
10
8
6
0
0.6857
7
Slow payment of completed work
Client
9
9
8
2
0
0.6714
8
Change order
Client
5
8
7
7
1
0.6643
9
Consultant
2
10
11
5
0
0.6643
10
S.I.
Rank
0.7786
1
Inadequate supervision to contractor
Table 6.12: Ranking of severity effect in Sabah
Causes
Slow payment of completed work
Group
Client
Number of respondents scoring
5
4
3
2
1
9
9
8
2
0
Financial difficulties
Contractor
8
6
8
6
0
0.7143
2
Poor site management/ supervision
Contractor
4
11
10
3
0
0.7143
3
Labour
4
10
10
4
0
0.7000
4
External
4
9
12
3
0
0.7000
5
Client
3
9
13
3
0
0.6857
6
Contractor
2
13
6
7
0
0.6714
7
External
2
8
15
3
0
0.6643
8
Labour
4
9
6
9
0
0.6571
9
Consultant
4
7
11
4
2
0.6500
10
Shortage of manpower
Unforeseen site condition
Slow decision making
Improper planning
Inclement weather condition
Low productivity
Changes in drawings/specifications
69
6.3
Finding 2: Comparison of Significant Causes of Delays between Johor and
Sabah
The objective of this section is to compare the significant causes of construction
project delays between Johor and Sabah. The significant causes were derived from both
their frequency and severity. The purpose of this comparison is to see any differences or
similarities on the delay causes between construction project in Johor and Sabah. The
comparison is divide into two; comparing the overall causes and comparing according to
the group of causes.
6.3.1 Comparison of Top Twenty Significant Causes
In this section, the importance index (IMP.I) from all causes of delays in Johor
and Sabah were compared. A top twenty significant causes have been point out for this
comparison purpose as shown in Table 6.13.
Table 6.13: Top twenty significant causes of project delays
Group of Causes
Causes
Contractor
Financial difficulties
Poor subcontractor performance
Poor site management
Improper planning
Inadequate contractor
experience
Defective of works
Client
Slow decision making
Slow payment of completed
work
Financial difficulties of client
Change order
Client interference
Group of Causes
Causes
Consultant
Inadequate supervision to
contractor
Late issue of instruction
Incomplete documents/drawing
Delay of work approval
Material
Shortage of material
Labour
Shortage of manpower
External
Inclement weather condition
Unforeseen site condition
Problem with neighbour
70
In Table 6.13 shows the comparison of importance index (IMP.I.) and ranking
between Johor and Sabah. There are no similarities either in ranking order or the
importance indices between Johor and Sabah. Few significant causes of delay in Johor
are found to be insignificant in Sabah construction industry and vice versa.
The top causes with highest difference of IMP.I between Johor and Sabah were
‘poor subcontractors’ performance’ (0.1579), ‘slow decision making by client’ (0.1321),
‘shortage of materials’ (0.1307), ‘inadequate supervision to the contractor’ (0.1283) and
financial difficulties of contractors’ (0.1230). The facts indicate that construction work
culture was different between these regions.
Table 6.14 shows the financing projects in Johor construction industry become a
top major source of project delays. It is followed by ‘poor subcontractor performance’
and ‘poor site management/supervision’. The respondents in Sabah have opposite view
about financial issue. The difference of IMP.I.for this factor is 0.1230. It indicates that
‘financial difficulties’ is not a significant factor in Sabah. Contractor’s poor site
management is the most significant causes in causing the construction project delays in
Sabah.
This result indicates that local contractors in the Sabah face problem in site
planning, implementation and controls of project. The highest differences of IMP.I.
among this group causes is ‘poor subcontractor’s performance’. This factor is more
significant in Johor but less important in Sabah. The capability of a subcontractor is
essential to complete a project on time. High degree of subcontracting in Malaysia often
leads to the risk of delays (Sambasivam and Soon, 2007).
71
Table 6.14: Comparison on significant causes of delays
Causes
Group
Johor
IMP.I
Rank
Sabah
IMP.I
Rank
Financial difficulties
Contractor
0.5720
1
0.4490
4
Poor subcontractor performance
Contractor
0.5041
2
0.3462
14
Labour
0.4689
3
0.3650
9
Poor site management/supervision
Contractor
0.4653
4
0.4898
1
Slow payment of completed work
Client
0.4460
5
0.4727
3
Material
0.4405
6
0.3098
17
Financial difficulties of client
Client
0.4087
7
0.3168
16
Change order
Client
0.4081
8
0.3557
11
Improper planning
Contractor
0.4071
9
0.4220
5
Inadequate supervision to contractor
Consultant
0.4033
10
0.2750
20
Inadequate contractor experience
Contractor
0.3946
11
0.2857
19
Client
0.3773
12
0.3214
15
Late issue of instruction
Consultant
0.3730
13
0.3854
7
Defective of works
Contractor
0.3719
14
0.2900
18
Inclement weather condition
External
0.3598
15
0.4128
6
Unforeseen site condition
External
0.3490
16
0.3700
8
Consultant
0.3457
17
0.3469
13
Client
0.3430
18
0.4751
2
Problem with neighbour
External
0.3223
19
0.3592
10
Delay of work approval
Consultant
0.3214
20
0.3536
12
Shortage of manpower
Shortage of material
Client interference
Incomplete documents/drawing
Slow decision making
The analysis of the significant causes revealed that ‘slow payment of completed
work’ is at rank 5 in Johor. Differently in Sabah, slowness of decision making is the
second major source of delay in client related category. The highest difference of IMP.I
is 0.1321, underlie at ‘slowness of decision making’ by client. It is significant in Sabah
but less important in Johor. ‘Poor site management and supervision’ was ranked at one
in Sabah. Ineffective management of the site operations can be due to a lack of
experience and training at both the technical and the managerial level.
72
Clients are taking the leading roles in the development of construction industry.
If their action is slow, it can retard the construction team’s works. Slow payment of
completed works is a common complaint among contractors, particularly in government
funded project. The progress of works can be delayed due to the late payments because
of scarcity cash flow in contractors’ financial. ‘Slowness of decision making’ by client
have caused schedule and expenditure increase from the side of contractors. This
problem is due to the heavy workload of the persons, especially who handle the project
from the side of client. Several numbers of projects handled by one person are resulting
slow decision making to the project.
In Johor, ‘inadequate supervision to contractor’ was at the rank 5 for the most
significant factor in construction project. The factor with highest difference of IMP.I is
‘inadequate supervision’, whereby it is very significant in Johor but not as much of
imperative in Sabah. Monitoring for workmanship quality during construction phase is
one of the major tasks for the consultants. On other part, main contractor are required to
report on the design and supervision works directly to client team on a regular interval.
Failure to make a proper supervision on the contractor’s work can lead to deficiency in
the quality of construction. Rework might be order during the final inspection. This
leads to the incomplete project as planned schedule.
‘Shortage of material’ presents as the highest importance index among the
materials related delays in both regions. Though, the ‘shortage of materials’ actually is
not a major problem in Sabah if compare to Johor. This is because in term of the IMP.I
value, there are major differences of IMP.Is for both regions. Instead, this factor has
much effect on construction project in Johor. In this recent year, construction industry in
Johor has funded several large projects under Iskandar Malaysia Plan. A Large project
required special materials from other places either within Malaysia or others countries.
Therefore, increase the demand of a large amount of construction materials such as
73
cement, steel, bricks and so on. This result is similar in term of significant causes in
previous research by Naha, Norelina (2008).
'Unforeseen ground condition' was ranked at eight in Sabah. This factor is
identified as among the significant that causing delays to projects after work commences
on site. These are concerned either with soil conditions or obstructions, such as by
services which are either not identified at all or wrongly located on plans. Proper
precautions should be taken in the procedures and approaches used for the site
investigations and the subsequent design of groundwork and foundations. Many project
sites contain a number of obstructions such as sewers, cables and pipes. The design team
should be fully responsible for advising on the nature and extent of site investigations.
‘Shortage of manpower’ is less significant in Sabah if compare to Johor. Rapid
development in local construction sector requires a large number of workers, especially
the skill workers. The scarcity of workers in market will impact on the progress of
projects; especially large construction projects. Based on statistics of CLAB Foreign
Construction Workers in Malaysia (2009), Johor has 1868 foreign workers in record
until end of May 2008. This number is excluding the illegal foreign workers. However,
it is quite difficult to avoid the movement of these workers from one construction
company to another.
The illegal foreign workers particularly from neighbouring country are
abundance available.
However, local authority plays strict actions regarding the
acquisition of foreign workers in Johor. The illegal workers are frequently caught by the
Malaysian immigrant officials and deported and this results shortage of labour pool in
the industry market. Differently in Sabah, the flooding of illegal workers particularly
from Philippine is no-end issue and become the national problem. Workers are plenty
available for construction projects
74
6.3.2 Comparison of Significant Group of Causes
There are many reasons may consequence to project delay during the
construction phase. In this research, based on data analyzed earlier, fifty six causes of
delays were grouped into eight in local construction project. In order to make a
comparison results between data from Johor and Sabah, the group of delay causes was
ranked based on the average of importance index between two group of respondent;
Johor and Sabah as shown in Table 6.15. The following is a brief discussion of the
groups to causes of delays according to the ranking of major delays groups.
Table 6.15: Ranking of major delays groups
Group
Johor
Sabah
Mean
Rank
0.3530
1
Contractor Related Delays
Mean
0.4159
Rank
1
Client Related Delays
0.3726
2
0.3476
2
Material Related Delays
0.3620
3
0.2855
6
Consultant Related Delays
0.3397
4
0.3058
5
Labour Related Delays
0.3199
5
0.2470
7
Contract-relationship Related
0.3089
6
0.3094
4
Plant/Equipment Related
0.3040
7
0.2225
8
External Factors
0.2979
8
0.3276
3
As shown in Figure 6.15, contractor related delays ranked as the most critical
category followed by client related delay in both regions. Subsequently, in Johor, rank 3
was lead by material related, consultant related, labour related, contract-relationship
related, plant/equipment related and external factors. In Sabah, the next important
category of delay causes were external factors, contract-relationship related, consultant
related, material related, labour Related and plant/equipment related. Figure 6.1
illustrates the comparison of major group of causes for these regions.
75
Based on Figure 6.1, the highest differences of mean index between these two
regions were underlie at plant/equipment related (0.0815), materials related (0.0765),
labour related (0.0729) and contractor related (0.0629). The categories of contractrelationship related almost reach similar mean index with difference of mean index is
0.0005.
0.4500
Mean of RII
0.4000
0.4159
0.3530
0.3500
0.3726
0.3476 0.3397
0.3058
0.3000
0.3620
0.2855
0.3094
0.3089 0.3040
0.3199
0.3276
0.2979
0.2470
0.2500
0.2225
0.2000
0.1500
Johor
0.1000
Sabah
Group of Causes
Figure 6.1: Comparison on groups of causes delays
The group of contractor related delays and client related delays were ranked
among top group of causes. From a total of eights causes in contractor-related group,
there are six causes include in the top twenty most important factors that causes of
project delays. It is indicates that contractors plays key roles to determine the success of
project completion on time.
76
Poor site management and supervision, improper project planning, financial
difficulties, inadequate experience in construction, defective of works and poor
performance were the causes lead to project delays. The client related group was ranked
as the most important group mainly due to changes orders, which are considered very
intricacy among project team. By referring to Table 6.13, there are five of eight causes
of client related delays were among the top twenty most important.
It was interesting to realize that slow payment of completed works is very
affecting to contractors. Delay in the payments for the work completed can directly
affect the completion of the project and cause time overrun. This is because there is
inadequate cash flow to support construction expenses especially for those contractors
who are not financially sound. In most of the government related projects, payments to
the contractors take relatively longer time (Sambasivam and Soon, 2006). It is the
responsibility of the contractors to factor in this time during the planning process.
Additionally, slowness in making decision from client side have give affect to
project team. This is because in certain cases the client has no priority/urgency to
complete the project. This issue can be controlled with proper process management and
timely decision making. It is a well know fact that decisions made early in the life of a
project have the most profound effect on the project’s objectives of delivering a safe,
quality project within the time and budget allocated.
6.4
Finding 3: Suggestion Methods of Minimizing Delays
Mitigation efforts are necessary to minimize losses due to major problems.
Previous analysis on the causes of delay is crucial as to recommend the appropriate
action or method to mitigate delay and minimize the effect that might be raised.
77
6.4.1 Suggestion Methods from Survey Result
Project delays have been a topic of concern in the construction industry. Delays
can be minimized only when their causes are identified. Knowing the cause of any
particular delay in a construction project would help avoiding the effects. In Table 6.16
shows ranking of the top fifteen effective methods of minimizing construction delays
from the viewpoint of respondents in Johor and Sabah.
These methods were ranked based on the relative importance index as mention in
chapter 4. There have a closer consensus between respondents in Johor and Sabah. Both
are agreed that ‘emphasize on the availability of resources’, ‘proper project planning and
scheduling’ and ‘hire competent project manager’ are among top 5 effective methods to
mitigate delays. The availability and competency of resources (money, workmen,
materials, equipment, etc) are very essential parts to ensure the construction projects run
smoothly.
On the other part, Johor respondents suggest the incentive for early project
completion is the most effective methods since this is one type of motivation to the
construction team as encouraging them to expedite works and complete project on time.
Contrarily in Sabah, the respondents agreed that the better method to avert delays is the
competency of project manager. A competent project manager possibly can handle well
his project from time overrun.
78
Table 6.16: Ranking of the top fifteen methods of minimizing delays
Johor
Sabah
Proposed Method
RII
Rank
RII
Rank
Utilization of the latest construction
technology method
0.7500
5
0.6929
7
Frequent site meeting with all functional
parties
0.7000
10
0.6500
10
Offer incentive for early project
completion
0.7929
1
0.6643
9
Promote team working among project
participants
0.7000
10
0.6714
8
Proper project planning and scheduling
0.7714
3
0.7286
5
Developing appropriate communication
system linking to all functional group
0.7214
8
0.7357
4
Early in obtaining permit and approval
from relevant authority
0.7214
8
0.7000
6
Thorough project feasibility study and
site investigation
0.7143
9
0.6357
11
Accurate initial project cost estimation
0.7357
7
0.6357
1
Hire experience personnel for project
implementation
0.7571
4
0.6929
7
Build a systematic project control and
monitoring mechanism
0.7429
6
0.7071
6
Accurate initial time estimation
0.7000
10
0.6929
7
Ensure the availability of resources
0.7857
2
0.7429
3
Select a competent project manager
0.7714
3
0.7857
1
Use the appropriate construction
methods
0.7571
4
0.7786
2
79
6.5
Summary
By conducting analysis and discussion in this chapter, various findings and
results are obtained. The pre-defined objectives are achieved by focusing to answer the
research question during the analysis and discussion. The major delays groups and
significant causes of delays were identified, ranked and compare. From a total of fifty
six causes of delays, twenty top most significant causes have been identified. The
methods in minimizing project delays also establish.
Thus, the following chapter, which is the final chapter, will comprise of
conclusion, and recommendation for this study, and recommendation for further
research on this topic. Problems that exist during the study and the limitation will also be
described in the following chapter.
CHAPTER 7
CONCLUSION AND RECOMMENDATION
7.1
Introduction
From the previous chapter analysis and discussions, it is seen that the
objectives of this study are achieved. Therefore, in this final chapter of the research
project paper, the overall conclusion and summary of the study will be made. Along
with that, any recommendation for this study as well as recommendation for pursuing
this study will also be described in this chapter.
7.2
Conclusion of the Findings
The followings are the conclusions derived from the literature study and questionnaire
survey conducted.
7.2.1 Objective 1: To study the causes of delays in term of degree of
occurrence and severity of effects
81
First objective has been achieved through literature review. From the
literature review, about fifty six causes of delay in local construction market have
been identified. The delay causes were grouped into eight; Contractor related, Client
related, Consultant related, Material related, Plant/equipment related, Labour related,
contract-relationship related and External factors. All these causes of delay are
shown in chapter 2. The results for the objective 1 are shown in Table 6.9, Table
6.10, Table 6.11 and Table 6.12.
In Johor, the results for the frequency of occurrence based on priority are:
‘Contractor’s financial difficulties’, ‘Poor site management/supervision’, ‘Poor
subcontractor performance’, ‘Slow payment of completed work’ and ‘Shortage of
manpower’. Subsequently, the causes with highest severity effect to construction
project are: ‘Contractor’s financial difficulties’, ‘Poor subcontractor performance’,
‘Improper planning’, ‘Shortage of manpower’ and ‘Shortage of material.
Meanwhile, the most frequent in occurrence for delay causes in Sabah are:
‘Slow decision making’, ‘Poor site management/supervision’, ‘Changes in
drawings/specifications’,
‘Contractor’s
financial
difficulties’
and
‘Improper
planning’. Causes of delay that bring severely impact to project are: ‘Slow payment
of
completed
work’,
‘Contractor’s
financial
difficulties’,
‘Poor
site
management/supervision’, ‘Shortage of manpower’ and ‘Unforeseen site condition’.
7.2.2 Objective 2: To compare the significant causes of delays in Johor and Sabah
To acquire the most significant causes among the fifty six delay causes, the
Importance index are computed based on both frequency and severity indices.
Comparison results between Johor and Sabah were made into two ways; comparing
the overall causes and comparing according to the group of causes.
82
No similarities in ranking order or importance indices obtain between Johor
and Sabah as shown in Table 6.13. Few significant causes of delay in Johor are found
to be insignificant in Sabah construction industry and vice versa. The delay causes
with highest difference of importance index between Johor and Sabah are: ‘poor
subcontractors’ performance’ (0.1579), ‘slow decision making by client’ (0.1321),
‘shortage of materials’ (0.1307), ‘inadequate supervision to the contractor’ (0.1283)
and financial difficulties of contractors’ (0.1230).
The most significant delay causes in Johor are based on priority are:
‘Contractor’ financial difficulties’, ‘Poor subcontractor performance’, ‘Shortage of
manpower’, ‘Poor site management/supervision’ and ‘Slow payment of completed
work’. Contrarily in Sabah, the important causes of delay are lead by ‘Poor site
management/supervision’, ‘Low speed of decision making by client’, ‘Slow payment
of completed work’, ‘Contractor’ financial difficulties’ and ‘improper planning of
works by contractor’.
For the comparison of group causes, Johor has higher mean of importance
index for six groups of delay causes than Sabah. There are: contractor related delay,
client related delay, consultant related delay, materials related delay, plant/equipment
related delay and labour related delay.
7.2.3 Objective 3: To suggest the methods of minimizing project delays.
The third and last objective was achieved through questionnaire survey. A
total of thirty three methods of minimizing delays were identified. The most effective
methods proposed by respondents in Johor include: incentive offer for early project
completion; proper project planning and scheduling; hire experience personnel for
83
project implementation; emphasizing on the availability of resource and ‘hire
competent project manager’.
Subsequently in Sabah, the respondents agreed that the effective methods in
minimizing delays are: Proper project planning and scheduling; developing
appropriate communication system linking to all functional group; ensure the
availability of resources; hire a competent project manager and utilization of
appropriate construction methods.
7.3
Recommendations
Following is the recommendation to minimize delays, derived based on the
analysis result of top twenty significant causes.
i.
Contractor related delays have contributed a large part for significant causes
of delay. The result of the study indicated that financing projects is one of the
major sources of project delays. Therefore, contractor selection stage must
receive more serious consideration. It is essential to choose a contractor with
strong financial background. Apart from that, the selected contractor must
have sufficient experience, technical capability, and sufficient manpower to
execute the works. A mechanism that closely stipulates feasibility study,
contractor selection must have to strictly apply. Any red tape during the
tender bidding should be removed to improve the local construction industry.
ii.
Poor site management is one of the most significant causes in causing the
construction delays in Sabah. This factor is responding to the issues that arise
at the site and causes negative impact on the overall work progress. This
84
failure is interconnected with lack of systematic site management and
inadequate contractor’s experience towards the projects. It is important to
early recognize the need for better site management and supervision by
contractors to meet the needs of more efficient and timely completion of
projects. The knowledge of constructability should be possessed by
contractor to achieve a better site management.
iii.
Poor subcontractor performance is among of the significant causes in causing
the construction delays in both regions. The incapability of subcontractor to
complete the work can result problems to the main contractor. The project
can be delayed if the subcontractor under performs because of inadequate
experience. High degree of subcontracting in Malaysia leads to high risk of
delays and this leads to inefficiencies in the Malaysian construction industry
(Sambasivam and Soon, 2007). Therefore, the selection of subcontractor must
consider the past records particularly on their performance.
iv.
Client related delay also contribute a large portion among these twenty
significant causes of delay. Clients must make quick decisions regarding any
matter that arise during the project execution. Low speed of decision is due to
incompetent person who handle the project from the side of client. In
addition, the person might be having too much project to be handled in at the
same time. Therefore, government should establish a standard number of
projects to be handled in one time. One staff should handle appropriate
number of project. Sufficient number of professionals should be provided in
client part. Hence, this can avert the slowness of decision making made by
client.
v.
Project feasibility study must receive a serious attention and must do
carefully, particularly for government funded project. Planning at the early
stage of construction is crucial to minimize any major risk of difficulties
during the execution of works. Effective project planning and implementation
85
require a competent and experience personnel. Where possible, project
managers need to have experience and qualifications in project or
construction management so that they can effectively utilize well the project
management tools that are available (project planning and scheduling tools).
vi.
The consultants play a very important roll in Design-Related Delays because
as they are in charge of the design process in conjunction with the owner of
the project. Design related issues such as changes in drawings, incomplete
and faulty specifications have a very damaging effect on project completion
times and invariably lead to cost escalations as well. These are issues that can
be controlled with proper design process management and timely decision
making. It is a well know fact that decisions made early in the life of a project
have the most profound effect on the project’s objectives of delivering a safe,
quality project within the time and budget allocated.
vii.
Insufficient knowledge of the sites causes many delays in projects.
Investigation of site conditions, together with the design of groundwork and
foundations, should be thorough, complete and clearly presented before
commencement of construction so as to reduce the impact of any unforeseen
ground conditions.
This finding could help the practitioners in construction industry to gain
better understanding about the problems time of projects during construction stage.
By taking care of these potential causes in their present and future projects,
construction participants can reduce and control the extent of delays and cost
overruns.
86
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APPENDICES
STRICTLY CONFIDENTIAL
FACULTY OF CIVIL ENGINEERING
UNIVERSITI TEKNOLOGI MALAYSIA
81310 SKUDAI, JOHOR
QUESTIONNAIRE
A COMPARATIVE STUDY OF CONSTRUCTION PROJECT DELAYS
IN JOHOR AND SABAH REGION
Details of researcher:
Name
:
DAYANG SABRIAH BINTI SAFRI
Course
:
Master of Science (Construction Management)
Matric No.
:
MA081333
Contact No.
:
016-8242093
E-mail
:
dayangsabriah@yahoo.com
Supervisor
:
ASSOCIATE PROFESSOR AZIRUDDIN RESSANG
Contact No.
:
016-7124248
All data compiled are solely for academic purposes only. All your answers will be treated
as CONFIDENTIAL. Your cooperation is much appreciated. Once you have filled in the
questionnaire, please return it by using the envelope provided. A timely reply is crucial
for analysis.
STRICTLY CONFIDENTIAL
Introduction
This is a comparative study between two region, respectively located in East and West
Malaysia; Johor and Sabah. It is expected that this research will provide some good
empirical data on the extent and ways to reduce delay in construction projects. The reasons
for these delays will also be documented with an overall aim to provide guidelines for
future owners, builders, designers, and managers of construction projects on the dos and
don’ts for devising effective systems to deliver projects on time, within budget, and to
quality standards, which fully satisfy the clients as well as the intended end-users.
Objectives
Objectives of the Study:
1.
To study the causes of delays in term of degree of occurrence and severity of effects
2.
To compare the significant causes of delays in Johor and Sabah
3.
To suggest the methods of minimizing project delays.
Instructions
This questionnaire consist of three (3) section:
Section A : Company Respondent Profile and Project Description
Section B : The Causes and Effect of Delays
Section C : Methods of Minimizing Project Delays
Please take a look at the following questionnaire and try to answer correctly and accurately.
All the information gathered here will be kept strictly confidential and will be used only for
research and analysis without mentioning the person or company names.
THANK YOU VERY MUCH FOR YOUR KIND COORPERATION AND TIME
96
SECTION A: RESPONDENT DETAILS
All the answers in this questionnaire will be treated with the strictest confidential. Please thick  the
box and fill in the blanks if you select others.
1. State the type of your organization or company.
 Client (government or developer)
 Consultant
 Contractor
 Others: …………………
2. State your position in the organization or company.
 Engineer/Designer
 Project Manager
 Site Manager
 Others: …………………
3. State the number of years you involved in the construction industry.
 Less than 5 years
 5 – 15 years
 More than 15 years
4. State the number of years your organization/company involved in the construction industry
 Less than 5 years
 5 - 15 years
 More than 15 years
5. State the type of project that your organization/company have experienced with delay.
 Building and industrial
 Infrastructure
 Others:………………….
 Never experienced on any delay project (Ignore for Question 6 & 7)
6. State the project duration based on contract document for your most delayed project.
 Less than 12 month
 12 to 18 month
 More than 18 to 24 month
 More than 24
7. State the actual time spent for the most delayed project.
 Less than 3 month late
 3 to 6 month late
 More than 6 month late
Name of respondent: ……………………………………………………………………………
Organization/Company Name:
…………………………………….…
……………………………………….
……………………………………….
……………………………………….
Company Official Stamp:
…………………………………………...
…………………………………………...
…………………………………………...
…………………………………………...
Contact No. : ………………………..
Signature: ……………………………
Date: …………………………………….
96
97
SECTION B: CAUSES AND EFFECTS OF DELAYS
Read through the list. For each option, please circle to show your answers based on the rating scale
given below and fill in the blanks if you select others.
Question 1: What is the frequency of occurrence for the following related causes of delays associated
with your project(s)?
Question 2: What is the severity of effects for following related causes of delays associated with your
project(s)?
Rating Scale for Question 1
Greatly often
Often
Sometimes
Rarely
Never
Contractor Related Delays
Rating Scale for Question 2
5
4
3
2
1
Very great affects
Great affects
Moderate affects
Slightly affects
Not affects
Frequency of Occurance
5
4
3
2
1
Severity of effect
Poor site management and supervision 5
4
3
2
1
5
4
3
2
1
Financial difficulties
5
4
3
2
1
5
4
3
2
1
Unsuitable construction method
5
4
3
2
1
5
4
3
2
1
Mistakes during construction
5
4
3
2
1
5
4
3
2
1
Inadequate contractor experience
5
4
3
2
1
5
4
3
2
1
Defective works
5
4
3
2
1
5
4
3
2
1
Poor subcontractor performance
5
4
3
2
1
5
4
3
2
1
Improper planning
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
Client Related Delays
Frequency of Occurance
Severity of effect
Client interference
5
4
3
2
1
5
4
3
2
1
Slow decision making
5
4
3
2
1
5
4
3
2
1
Contract modification
5
4
3
2
1
5
4
3
2
1
Change order
5
4
3
2
1
5
4
3
2
1
Financial difficulties of client
5
4
3
2
1
5
4
3
2
1
Uncoorperative client
5
4
3
2
1
5
4
3
2
1
Slow payment of completed work
5
4
3
2
1
5
4
3
2
1
Unrealistic contract duration
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
97
98
Consultant Related Delays
Frequency of Occurance
Severity of effect
Mistakes in design
5
4
3
2
1
5
4
3
2
1
Changes in drawings/specifications
5
4
3
2
1
5
4
3
2
1
Incomplete documents/drawing
5
4
3
2
1
5
4
3
2
1
Defects in design
5
4
3
2
1
5
4
3
2
1
Inadequate supervision to contractor
5
4
3
2
1
5
4
3
2
1
Delay of work approval
5
4
3
2
1
5
4
3
2
1
Late issue of instruction
5
4
3
2
1
5
4
3
2
1
Slow correction of design problem
5
4
3
2
1
5
4
3
2
1
Late valuation work
5
4
3
2
1
5
4
3
2
1
Slow inspection of completed works
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
Material Related Delays
Frequency of Occurance
Severity of effect
Shortage of material
5
4
3
2
1
5
4
3
2
1
Material procurement problem
5
4
3
2
1
5
4
3
2
1
Material fabrication delay
5
4
3
2
1
5
4
3
2
1
Unforeseen material damages
5
4
3
2
1
5
4
3
2
1
Slow delivery of ordered materials
5
4
3
2
1
5
4
3
2
1
Noncompliance of material to
specification
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
Contract-relationship Related
Frequency of Occurance
Severity of effect
Conflict between parties
5
4
3
2
1
5
4
3
2
1
Difficulties of coordination between
parties
5
4
3
2
1
5
4
3
2
1
Lack of communication between
parties
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
98
99
Plant/Equipment Related
Frequency of Occurance
Severity of effect
Equipment shortage
5
4
3
2
1
5
4
3
2
1
Wrong selection
5
4
3
2
1
5
4
3
2
1
Low efficiency
5
4
3
2
1
5
4
3
2
1
Equipment delivery problem
5
4
3
2
1
5
4
3
2
1
Inadequate skill of operators
5
4
3
2
1
5
4
3
2
1
Equipment breakdown and
maintenance problem
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
Labour Related Delays
Frequency of Occurance
Severity of effect
Labour disputes/strikes
5
4
3
2
1
5
4
3
2
1
Weak motivation
5
4
3
2
1
5
4
3
2
1
Lack of skilled labour
5
4
3
2
1
5
4
3
2
1
Low productivity
5
4
3
2
1
5
4
3
2
1
Shortage of manpower
5
4
3
2
1
5
4
3
2
1
Labour injuries/accident in site
5
4
3
2
1
5
4
3
2
1
Absenteeism
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
External Factors
Frequency of Occurance
Severity of effect
Act of God
5
4
3
2
1
5
4
3
2
1
Inclement weather condition
5
4
3
2
1
5
4
3
2
1
Price fluctuation
5
4
3
2
1
5
4
3
2
1
Government regulation
5
4
3
2
1
5
4
3
2
1
Problem with neighbour
5
4
3
2
1
5
4
3
2
1
Unforeseen site condition
5
4
3
2
1
5
4
3
2
1
Civil disturbance
5
4
3
2
1
5
4
3
2
1
Slow process of Building permit
5
4
3
2
1
5
4
3
2
1
Others : _____________________
5
4
3
2
1
5
4
3
2
1
99
100
SECTION C: METHODS OF MINIMIZING PROJECT DELAYS
Please, thick  for your selected answer based on the rating scale given below and fill in the blanks if
you select others.
Questions 3 : How did the effectiveness of the following methods minimise delays?
Rating Scale for Question 3
Very high effective
High effective
Moderate effective
Low effective
Not effective
5
4
3
2
1
Proposed Methods
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
1 2
3 4
5
Utilization of the latest construction technology method
Frequent site meeting with all functional parties
Not awarding contract based on the lowest bid
Increase productivity by working overtime, shift, etc
Offer incentive for early project completion
Ask for extension of time
Execute delayed activities by subcontractors
Promote teamworking among project participants
Developing human resources management (training, day courses, etc)
Timely decision making by all functional group
Proper project planning and scheduling
Developing appropriate communication system linking to all functional group
Early in obtaining permit and approval from relevent authority
Thorough project feasibility study and site investigation
Accurate initial project cost estimation
Hire experience personnel for project implementation
Build a systematic project control and monitoring mechanism
Absence of bureaucracy
Proper emphasis on past experience of project parties
Accurate initial time estimation
Ensure the availability of resources ( finance, materials, equipment, workmen, etc)
Select the competent project manager
Use the appropriate construction methods
Others (please specify if any) :
Others (please specify if any) :
Others (please specify if any) :
Thank you for completing this questionnaire
100