Running head: ACCELERATING RECONSTRUCTION Significant Factors of Delay in Construction Projects in Afghanistan Submitted by Ahmad Khalid Afridi Thesis Presented to the Faculty of Economics Yamaguchi University Yamaguchi, Japan In Partial Fulfillment of the Requirements for the Degree of Master in Economics June 29, 2016 Supervisor: Professor Tetsuji Umada Student id: 14 - 8201 - 504 - 1 ACCELERATING RECONSTRUCTION ii Abstract This thesis investigates the factors, which cause delay in construction projects in Afghanistan. Delay is one of the major challenges during the implementation of the construction projects, and it is the late completion of the activities or works of a project compared to the planned. A large number of construction projects in Afghanistan are facing delay during the implementation. Project delay negatively affects the prestige and dignity of the government organizations and in general, failures and weaknesses of the projects created distance between the people and the government and shows incapacity of the Government in the implementation of the projects all around the country in Afghanistan. Several similar studies from developing countries have been reviewed and a survey has been conducted for data collection from the different public organizations of Afghanistan. The analysis of the collected data points out the significant causes of delay in construction project in Afghanistan as; ineffective planning and scheduling of a project by contractor, delay in progress payments by client, poor site management and supervision of contractors by consultant and client, financial difficulties by contractor, insufficient controlling and monitoring by consultant and client, non availability of experienced technical staff of contractor, late in reviewing and approving design documents by client, lack of communication and coordination between the parties, delay in delivery of materials to site, inadequate contractor experience, political influences and warlords intervention. Finally, this thesis provides applicable recommendations to minimize or eliminate the causes of delay in construction projects in Afghanistan. Keywords: significant factors, delay, construction projects, Afghanistan ACCELERATING RECONSTRUCTION iii Acknowledgements First of all, I would like to thank almighty Allah for giving me enough strength and patient throughout the completion of my studies here in Japan. Besides, I would like to thank the government of Afghanistan and Japanese government for providing me such a marvelous opportunity to purse my master degree. Moreover, I would like to express my sincere appreciation and gratitude to my supervisor professor Tetsuji Umada for his patience, motivation, immense knowledge, instructions, productive supports, and suggestions provided during the formulation and development of my thesis. You have been a tremendous mentor for me, your advices have been priceless, and you have dedicated a lot of your precious time giving me feedback on my academic works. Besides my advisor, I would like to thank the rest of my thesis committee: Prof. Tomimoto, and Prof. Nabeyama, for their insightful comments and recommendations. Furthermore, I thank my fellow lab-mates Abdullah Ahmadi, Mohammad Amin Azimi, Ahmad Zia Zia, Lutfullah Aqil and Azimullah Hakimee for their supports, and for all the fun we have had in the last three years. Also I would like to thank each and every single person who have extended their valuable time and contributed to this thesis. Finally, I would like to extend My heartfelt gratitude to my family especially my Father, my mother, my wife and my sons for their support, devotions, and patience throughout the completion of my studies. Best Regards Ahmad Khalid Afridi Yamaguchi University Yamaguchi, Japan ACCELERATING RECONSTRUCTION iv Table of Contents Chapter 1: Introduction ......................................................................................................... 1 Background ................................................................................................................................................................................ 1 1.1 Problem Statement .......................................................................................................................................................... 3 1.1.1 Time overrun.........................................................................................................................................................................3 1.1.2 Cost overrun ..........................................................................................................................................................................3 1.1.3 Dispute .....................................................................................................................................................................................4 1.1.4 Arbitration .............................................................................................................................................................................4 1.1.5 Litigation ................................................................................................................................................................................4 1.1.6 Total abandonment ...........................................................................................................................................................4 1.2 Purpose of this research................................................................................................................................................ 5 1.3 Research Question ........................................................................................................................................................... 6 1.4 Research Scope ................................................................................................................................................................. 6 1.5 Thesis Organization ........................................................................................................................................................ 7 Chapter 2: Portfolio, Program, and Project Management ....................................................... 8 2.1 Portfolio Management.................................................................................................................................................... 8 2.2 Program management.................................................................................................................................................... 8 2.3 Project Management ....................................................................................................................................................... 9 2.3.1 Definition of project. ..........................................................................................................................................................9 2.3.2 Project life cycle. ..................................................................................................................................................................9 2.3.3 Initiation phase. ................................................................................................................................................................ 10 2.3.4 Planning phase. ................................................................................................................................................................. 10 2.3.5 Implementation phase. .................................................................................................................................................. 10 2.3.6 Monitoring and controlling phase. .......................................................................................................................... 11 2.3.7 Closing phase. .................................................................................................................................................................... 11 Chapter 3: Project management Challenges in Afghanistan .................................................. 12 3.1 Logistic, Security and Capacity ................................................................................................................................. 12 3.1.1 Logistics and security. .................................................................................................................................................... 12 3.1.2 Capacity. ............................................................................................................................................................................... 13 3.2 The Key Challenges of Development Projects in Afghanistan ..................................................................... 13 3.3 Internal and External Factors ................................................................................................................................... 14 ACCELERATING RECONSTRUCTION v 3.3.1 Internal factors. ................................................................................................................................................................ 14 3.3.2 External factors. ............................................................................................................................................................... 15 Chapter 4: Related Studies................................................................................................... 21 4.1 Causes and Effects of Delay in Iranian Construction Projects ..................................................................... 21 4.2 Identification, Evaluation and Classification of Time Delay Risks of Construction Projects in Iran ....................................................................................................................................................................................................... 22 4.3 Significant Factors Causing Time Overrun in Construction Projects of Peninsular Malaysia ........ 23 4.4 Delays in building construction projects in Ghana .......................................................................................... 23 4.5 Study on the Quantification of Delay Factors in the Construction Industry .......................................... 24 4.6 Causes and Effect of Delay on Project Construction Delivery Time .......................................................... 25 4.7 Causes and Effects of Delays and Disruptions in Construction Projects in Tanzania ........................ 26 4.8 Causes, Effects and Methods of Minimizing Delays in Construction Projects ....................................... 26 4.9 Identification of Causes of non-excusable Delays of Construction Projects .......................................... 27 4.10 The Significant Factors Causing Delay of Building Construction Projects in Malaysia .................. 28 4.11 Causes of Project Delay in the Construction Industry in Afghanistan ................................................... 29 4.12 Causes and Effects of Delays in Large Construction Projects of Pakistan ............................................ 29 Chapter 5: Data Collection and Analysis ............................................................................... 31 5.1 Data Collection ................................................................................................................................................................ 31 5.2 Data Analysis.................................................................................................................................................................... 32 5.3 Result and Discussion................................................................................................................................................... 36 5.3.1 Ineffective planning and scheduling of project by contractor. ................................................................... 36 5.3.2 Delay in progress payments by client. .................................................................................................................... 37 5.3.3 Poor site management and supervision of contractors by consultant and client. ............................ 38 5.3.4 Financial difficulties by contractor. ........................................................................................................................ 38 5.3.5 Insufficient controlling and monitoring by consultant and client. ........................................................... 39 5.3.6 Non availability of experienced technical staff of contractor. .................................................................... 39 5.3.7 Slow in reviewing and approving design documents by client. .................................................................. 39 5.3.8 Lack of communication and coordination between the parties ................................................................ 39 5.3.9 Delay in delivery of materials to site....................................................................................................................... 40 5.3.10 Inadequate contractor experience. ....................................................................................................................... 40 5.3.11 Political influences and warlord intervention. ................................................................................................ 40 5.4 Comparative analysis ................................................................................................................................................... 41 ACCELERATING RECONSTRUCTION vi Chapter 6: Conclusion and Recommendations ..................................................................... 45 Conclusion ................................................................................................................................................................................ 45 6.1 Summary of Findings .................................................................................................................................................... 46 6.2 Recommendations ......................................................................................................................................................... 47 6.3 Recommendations for Top 11 Causes of Delay in Construction Projects in Afghanistan ................ 47 6.3.1 Ineffective planning and scheduling of a project by contractor. ............................................................... 47 6.3.2 Delay in progress payments by client. .................................................................................................................... 51 6.3.3 Poor site management and supervision of contractors by consultant and client. ............................ 52 6.3.4 Financial difficulties by contractor. ........................................................................................................................ 52 6.3.5 Insufficient controlling and monitoring by consultant and client. ........................................................... 53 6.3.6 Non availability of experienced technical staff of contractor. .................................................................... 54 6.3.7 Late in reviewing and approving design documents by client. .................................................................. 54 6.3.8 Lack of communication and coordination between the parties. ............................................................... 55 6.3.9 Delay in delivery of materials to site by contractor. ........................................................................................ 56 6.3.10 Inadequate contractor experience. ....................................................................................................................... 56 6.3.11 Political influences and warlords’ intervention. ............................................................................................. 57 References .......................................................................................................................... 59 Appendices ......................................................................................................................... 64 ACCELERATING RECONSTRUCTION Abbreviations ADB Asian Development Bank AIF Afghanistan Infrastructure Fund ANA Afghan National Army ANSU Afghan National Security University ARTF Afghanistan Reconstruction Trust Fund DABS Da Afghanistan Breshna Sherkat GoIRA Government of the Islamic republic of Afghanistan KMTC Kabul Military Training Center KV Kilovolt MEW Ministry of Energy and Water MOEc Ministry of Economy MOF Ministry of Finance MOPW Ministry of Public Works MOUDA Ministry of Urban Development Affairs MRRD Ministry of Rural Rehabilitation and Development NEPS North East Power Systems NGO Non Governmental Organization PMBOK Project Management Body of Knowledge PMF Project Management Firm PMI Project Management Institute RII Relative Important Index vii ACCELERATING RECONSTRUCTION SEPS South East Power System SIGAR Special Inspector General for Afghanistan Reconstruction Ss Substations TL Transmission Line UNDP United Nations Development Program USAID United States Agency for International Development WBS Work Breakdown Structure viii ACCELERATING RECONSTRUCTION 1 Chapter 1 Introduction Background Afghanistan is a country, which has been a battlefield for almost 4 decades. During the war the entire infrastructure in the country was destroyed and the people deprived of the basic needs of life such as, water sanitation, education, shelter, electricity, and health, etcetera. In 2001 after the collapse of the Taliban administration, Afghanistan has been approached to the attention of the world community with two objectives; first, the world community including the United States of America and its allies made a commitment to abolish the insurgencies from the country, and the second intention was to help Afghanistan to improve and develop its infrastructure in different sectors. Donor countries helped Afghanistan to construct development projects all over the country to improve the living quality of the people, but due to some obvious and hidden challenges during the last 15 years, most of the projects have failed to be completed on schedule. Failure of the projects negatively affects the donors’ contribution to construction projects of Afghanistan. In 2011 Afghanistan was ranked as 172 out of 187 countries on the UNDP's Human Development Index, and is one of the world's poorest countries in the world. Since the establishment of the new government in Afghanistan in 2001, most of the ministries are facing challenges during the implementation of development projects in all over the country, therefore they are unable to spend more than 50 % of its development budget annually. It explains that implementation of the development projects are facing challenges that is why the budget expenditure is below 50 percent. There are two types of budget in the government of Afghanistan, Development Budget and Operational Budget. Development Budget: is the second largest portion of the government budget, which is being used for the implementation of the development projects all over the country in Afghanistan. ACCELERATING RECONSTRUCTION 2 Operational Budget: is the largest portion of the government budget that is used for the government expenditure and salaries of the officials (etc.) in the country. according to the Fiscal budget expenditure sheet of the Ministry of Finance in Afghanistan, in last 15 years most of the public organizations of the government could not spend more the 50% of their development budget due to several reasons and factors, and mainly due to the problems in the construction phase of the projects’ implementation. Afghanistan is a country, which has been dependent on donors’ aids since the collapse of the Taliban regime in 2001. Meanwhile USD 100 Billion has been spent for development purposes by the donor countries. According to the reports from the Ministry of Finance of Afghanistan almost 22 % of the assisted capital was spent through government channels and the rest (78%) was spent through the donor countries. The money was not spent efficiently, most of the projects were not well implemented or failed, and that is why it could not make significant changes to the people’s life in the country. There are several challenges that are commonly faced during projects implementation in Afghanistan. Some of the most obvious challenges are insecurity, corruption, poor qualification of the contractor’s technical staff, payment delays by clients, and poor site management and supervision by client and contractor, as well as some hidden challenges. Due to the lack of capacity and necessary equipment and machinery the government organizations are unable to implement the projects by themselves. In principle, implementations of the development projects are the responsibility of the designated government authority. Hiring contractors is the easiest way to implement the projects, rather than training the officials for and preparing the facilities to implement the projects by themselves. Unfortunately, due to many reasons, in Afghanistan a large number of construction projects fail to meet their original contract deadlines. This thesis investigates to find the significant causes of delay in construction projects of Afghanistan and explores and provides recommendations to decrease the impact of delays on construction projects in Afghanistan. ACCELERATING RECONSTRUCTION 3 1.1 Problem Statement A huge number of Public Construction projects in Afghanistan are not implemented on time due to several factors. Majid (2006) demonstrates that a construction project is commonly acknowledged successful when it is completed on time, within budget and accordance to the specifications and satisfaction of the project stakeholders (Client, Consultant, and Contractor). In Afghanistan a large number of construction projects are unsuccessful, because the projects are not completed on time, so the construction projects fail to meet its contract deadline and it negatively impacts the development process of the country. On the other hand, Aibinu and Jagboro (2002) conducted a study to find out the effects of construction delays on project delivery in the Nigerian construction industry. The outcome of the study pointed out the effect of delay as: a) Time overrun b) Cost overrun c) Dispute d) Arbitration e) Litigation f) Total abandonment 1.1.1 Time overrun Time overrun means that the contractor could not complete the project on the planned schedule. There are two kinds of delay, excusable and non-excusable. Excusable delay occurs due to the excusable factors that could happen during the project implementation and there would be no objections from the other project stakeholders to the contractors. In case of non-excusable delay, there are factors which caused the delay to occur, and mainly those delays could be avoided if necessary steps could be taken by project stakeholders. 1.1.2 Cost overrun Cost overrun is a term used when the contractor could not complete the project within the designated budget and requires more funds for the implementation of the project. There could be ACCELERATING RECONSTRUCTION 4 several factors causing the projects cost to overrun such as underestimation of the project cost, or increase in the price of materials in the market, etcetera. 1.1.3 Dispute Project delay causes the project stakeholders such as contractor, consultant, and client to argue on the factors of delay whether the delay factors are excusable or non excusable, 1.1.4 Arbitration During the project implementation if delay occurred, the project stakeholders appeal for an arbitration to make a judgment so that all parties agree on the decision made by the arbitrator. 1.1.5 Litigation If the project stakeholders such as client, consultant, and contractor do not agree on the arbitrator’s decision then legal actions are taken and the court would decide who is the faulty party, and the defective party will pay the penalty of the project delay. 1.1.6 Total abandonment One of the effects of delay could be total abandonment of a project, so the overall activities of project will immediately stop, and it will negatively affect all project parties. There could be different factors causing the total abandonment of a project such as, client or contractors bankruptcy and so on. The effect of project delay negatively impacts all the project stakeholders therefore necessary action and process should be undertaken to minimize the effect of project delay. Furthermore; Owolabi James, Amusan Lekan, Oloke, Olusanya, and Tunji-Olayeni (n.d.) pointed out the effects of delay as: 1. Increase in final cost of a project 2. Tying down the client capital due to non completion of the project 3. Wastage and under utilization of manpower and resources 4. Abandonment of building project 5. Reduced profit ACCELERATING RECONSTRUCTION 6. Dispute between involved parties 7. Litigation 8. Arbitration 5 However, one of the main causes of delay in construction projects in Afghanistan could be; insecurity inside the country, or environmental condition such as flooding, weather condition and son on, but controlling and minimizing the insurgencies in the country or weather condition is beyond control. Also, as for establishing peace in the country, the security forces are striving to do so and it may take an indeterminate time, so this thesis mainly considers those factors that could be controlled or minimized by undertaking applicable solutions. The failure of the projects in Afghanistan negatively affects the prestige and dignity of the public sector in the country. Some of the project failures destroyed the hope of the people. And most importantly as Afghanistan is striving to recover from the war and since the Afghanistan government financially depends on donor aid, the factors of delay mainly affect the contribution of the donor agencies in the country. On the other hand, construction project delay negatively affects the overall economy of the country. The simultaneous incidences of delay in development projects funded by donors in Afghanistan minimized their contribution to development projects. In general, failures and weaknesses of the projects generated a huge gap between the people and the public sector, and shows disability and incapacity of the public sector in the implementation of the projects all around the country of Afghanistan. Projects delay causes the country to remain undeveloped for a longer time. For instance, if development projects such as construction of schools, educational institutes, water sanitation, hospitals, etcetera are not completed on schedule, then the people would remain uneducated, there would be no clean water for drinking, and there would be health challenges for the time delay occurred in development projects. So project delay could negatively affect people’s life and overall project delay could affect the economy of the country. 1.2 Purpose of this research For achieving the purpose of this research the following objectives need to be developed: ACCELERATING RECONSTRUCTION 6 1. To find the cause of delay in construction Projects in Afghanistan. 2. To distinguish the significant factors that causes delay in construction projects in Afghanistan (Top ten Factors). 3. To find out how developing and developed nations handled these challenges through literatures review. 4. To propose applicable solution to avoid delay in construction projects in Afghanistan 1.3 Research Question The objectives of this research could be achieved only if appropriate answers are provided for the following research questions: 1. What are the significant factors that are causing delay in construction projects in Afghanistan? 2. What are the applicable solutions to minimize or abolish the causes of delay in construction projects in Afghanistan? 1.4 Research Scope The scope of the research generally concentrates on literature review and a questionnaire survey. This research aimed to study delay factors in construction projects of Afghanistan, and the main target is public organizations for data collection purposes. Ministries that are targeted for data collection are the: Ministry of Rural Rehabilitation and Development (MRRD), Ministry of Energy and Water (MEW), Ministry of Public Works (MoPW), Ministry of Urban Development Affairs (MoUDA), and Ministry of Economy (MoEC). For data collection purpose, 50 questionnaires were distributed to the 5 related government organizations in Afghanistan, and 30 Reponses received. However, initially the aim of this research was to collect data from the 3 main stakeholders of the projects (Client, Consultant & Contractor), but due to unavailability of time and occurrence of numerous challenges the researcher could not collect data from consultants and contractors, (to learn the view points of ACCELERATING RECONSTRUCTION 7 the consultant and the contractor) and basically this thesis focuses on the collected data from the public organizations side as the client of the construction projects. Though data collection from the public and private organizations is very difficult nowadays as in some cases the government officials are afraid that they may face problem if they fill out a questionnaire, exposing weaknesses of a public organization, or disclose an unsavory fact to the people, so most of the time they refuse to fill out a questionnaire. And the case of the private organizations, it is really problematic as they never waste their time by answering a questionnaire. I hope in the future they change their attitudes for cooperating with scholars and researchers. The boundaries of this study could not be expanded for this thesis due to the time constraint and various challenges. 1.5 Thesis Organization The second chapter discusses the terms portfolio management, program management, project management, and project itself. Furthermore, it discusses on project lifecycle, which comprises different phases of projects including initiation, planning, implementation, monitoring and controlling, and closing phase. Third chapter describes the project management challenges in Afghanistan including: Security, Capacity, Logistics, internal factors, and external factors and as well providing examples of a number of projects that experienced delay during implementation. Fourth chapter deliberates on similar studies in developing countries such as Iran, Pakistan, India, Malaysia, Nigeria, Tanzania, and Ghana and describes significant factors, which cause project delay in related countries. Fifth chapter explains the data collection method and data analysis process in this thesis. The methodology of the research including data collection method and analysis has been discussed in this chapter and data is analyzed and ultimately the top 10 factors of delay in construction projects of Afghanistan identified based on data collection and analysis. Sixth Chapter consists of a conclusion and recommendations to allay the significant factors of delay in construction projects of Afghanistan as the main objective of this thesis. ACCELERATING RECONSTRUCTION 8 Chapter 2 Portfolio, Program, and Project Management The term portfolio, program, and project management provides a broad view to the overall activities and objectives of an organization, its strategies, programs and projects. These terms are similar to a pyramid hierarchy (PMI, 2013). At the top portfolio management as division concerns of strategic objective of an organization consist of programs and projects, then at middle program management concerns of many coordinated projects and at the bottom projects concerns of different activities to achieve the objectives of an organization. Additionally, for better understanding portfolio, program, and project management, below definitions are listed. 2.1 Portfolio Management Portfolio management refers to the collection or set of programs, projects, sub portfolios, and operations for achieving the strategic objectives of an organization (PMI, 2013). Moreover, portfolio management is the process of many activities, and one of the main purposes of portfolio management is to align with organizational strategies by indicating the right programs or projects, prioritizing the work, and delivering the required resources. In general, portfolio covers a large area for management including many programs and projects. 2.2 Program management Program management is the process of applying knowledge, techniques, tools, and resources to manage a number of related and coordinated projects. Therefore, program management concerns of more than one project and is much more complex than a single project. In general, program management is the process of managing multiple projects to achieve the purpose of the organization. According to Project Management Institute (2013) a program is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually. ACCELERATING RECONSTRUCTION 9 2.3 Project Management Project management is the application of knowledge, skills, tools and techniques to achieve the project objectives (PMI, 2013). Moreover, project management is a method for managing a project from the beginning up to the end. Also, PMI describes project management as the process for overseeing the multiple project phases’ activities, including; initiation, planning, implementation and closure, parallel with monitoring and controlling phase. 2.3.1 Definition of project. Project is a set of processes and activities, which have been undertaken by an individual or an organization to create an outcome in a certain period of time within the defined scope, budgeted cost, and satisfactory quality. A project is successful when it is completed on time, within the budgeted cost with a quality outcome to satisfy and meet the need of the stakeholders. Project Management Institute (2013) defines a project as temporary endeavor undertaken to produce a product or a service. 2.3.2 Project life cycle. Project life cycle is a chain of activities that a project passes through from the beginning until the end of a project. Different phases of project life cycle are to simplify the activities and for effective controlling and implementing the project. According to Project Management Institute (2013) a project generally has 5 phases as a life cycle, which are: 1. Initiation 2. Planning 3. Implementation/execution 4. Monitoring and controlling 5. Closing ACCELERATING RECONSTRUCTION 10 2.3.3 Initiation phase. The Project Management Institute (2013) defines Initiation phase as the starting or foundation stage of a project. During the initiation phase, the project objectives and goals are being set, scope of the work are identified, the cost and quality would be set, the stakeholders of the project would be identified, financial resources are committed, project team would be assigned including a project manager, the project management team will write and prepare the charter of the project and would be approved and accepted by the project stakeholders. Additionally, the scope of the project, schedule or duration of the project, budget, quality of the project, resources and risk of the project would be modified. 2.3.4 Planning phase. The next phase after initiation is the planning phase of a project. Project planning is a manual for achieving the objectives of the project, and it generally provide a chart which project team can refer during execution. The project plan states the intentions and necessities of a project in terms of: 1. Project scope 2. Project schedule 3. Resource requirement 4. Project cost estimation 5. Project quality 6. Project risk Furthermore, work breakdown structure (WBS), tasks list, Gantt charts, Milestone, resource assignment and risk register would be prepared in this phase of a project (PMI, 2013). 2.3.5 Implementation phase. After creating project plan the next step of a project is to coordinate the resources to execute the task and generate the outcome. Implementation or execution phase of a project is the core part of a project that mainly provides the deliverables. Project execution consists of those processes to ACCELERATING RECONSTRUCTION 11 complete the work, which is defined in planning phase of the project to satisfy the project specifications (PMI, 2013). 2.3.6 Monitoring and controlling phase. During the project implementation, lots of things could happen unexpectedly, therefore, the monitoring and controlling phase, as tool to look for any sort of mismanagement is required to correct any mistakes during the implementation of a project (PMI, 2013). 2.3.7 Closing phase. Closing phase is the last stage of a project (PMI, 2013). In this phase of a project the deliverables are prepared based on the specifications and the project is ready to be closed. Project closure includes handover of project deliverables and documentation to the required party and most importantly for the project implementer, lessons learned session could be very important because this session enlightens and describes the weaknesses and difficulties which the project faced during different phases, so this lessons learned session would be a tool to enable each individual in the organization to improve their ability and performance so they could get necessary steps for precaution or eliminating the challenges in the future projects, and the overall project management team consider those challenges and teach the team for better performance in the future so that the future projects would not face these types of challenges. ACCELERATING RECONSTRUCTION 12 Chapter 3 Project management Challenges in Afghanistan Afghanistan is a country, which has remained dependent on donors’ aids, and since 2001 more then USD 100 Billion has been spent for development purposes in the country. For reconstruction purposes, donor countries aimed to implement the infrastructure projects, but projects have faced challenges during implementation. There are several challenges that are commonly faced by construction projects during project implementation in Afghanistan. However, insecurity is one of the main challenges against implementation of development projects all over the country. In this regard, there are several observations form the people involved in project management professions in Afghanistan. 3.1 Logistic, Security and Capacity In 2010 a question was asked to Mr. David who has been involved in project management in Africa, Europe, South America, the Caribbean, and central Asia and he is currently working in Afghanistan, providing oversight support for infrastructure projects funded by the United States government that, (What major challenges have you observed with completing construction projects in Afghanistan?). He responded that there are mainly 3 challenges during the implementation of the construction projects in Afghanistan; these problems are generally categorized as logistics, security and capacity. 3.1.1 Logistics and security. Based on the location of a project, security could be a huge expense, usually in the range of 5 to 15 percent of the total project cost (David, 2010). Logistics and security are closely related to each other. delays at the border due to security or custom clearance issues causes the cost of the project to increase. Custom problems with neighboring countries due to political issues and corruption in the government could be another big challenge. Some times assaults on projects are not only performed by the Taliban or insurgent elements but also can be triggered by disgruntled employees or terminated subcontractors. David observed that a contractor’s relationship with the local community is sometimes a more important part of security planning than the number of ACCELERATING RECONSTRUCTION 13 armed guards employed. If local residents are hired to work on a project, they tend to help protect it. 3.1.2 Capacity. In 2010, David observed that the local and domestic construction firms in Afghanistan suffers from a lack of capacity, causing in project quality issues and delays. Local contractors benefit from an international donor emphasis to hire Afghanistan domestic contractors for implementation of the construction projects, but in many cases, they are not able to deliver on contracts because of their inability and incapacity to find skilled workers and managers. Local contractors mainly suffer from lack of capacity in design and construction management, so they can not deliver projects based on the methods utilized by donors. There are several capacity development programs held by the international community to help address these issues, However, the construction industry need much more time and more capacity building programs to strengthen the construction firms for better and effective services delivery. 3.2 The Key Challenges of Development Projects in Afghanistan Sadeqi (2014) demonstrated the main challenges of development projects in Afghanistan as the following factors. 1. Projects are mainly contracted outside of Afghanistan and there is no close monitoring by the Afghanistan government authorities. 2. In past 10 years internal and external non-governmental organizations (NGOs) were the biggest project implementers in the country. All the government organizations implemented the development projects through these NGOs. 3. NGOs were passing or selling projects to another NGO and subcontractors; which led to fewer funds to be used and finally leading to a very low quality work. 4. Due to the lack of capacity and necessary equipment and machinery, the government organizations are unable to implement the projects by themselves. In principle, the implementation of development projects is the responsibility of the designated government authority in the country; Hiring contractors is the easiest way to implement the projects, ACCELERATING RECONSTRUCTION 14 rather then training the officials for and preparing the facilities to implement the projects by themselves. 5. In the past years, unfortunately there was not proper monitoring of these NGOs, while they are implementing the projects. Additionally, former Minister of MRRD (Barmak, 2013) deliberated the main challenges of national solidarity projects in Afghanistan through a radio and television channel, which was later on published on the Internet, pointed out the following factors as the main challenges of projects failure in Afghanistan: â–ª â–ª â–ª Insecurity Intervention of the local leaders to hinder the projects implementation Low capacity of the Afghan contractors 3.3 Internal and External Factors Nushin (2012) indicates two major factors that are causing projects failure in Afghanistan as internal and external factors. 3.3.1 Internal factors. The following factors as the internal factors negatively contributed to the projects in Afghanistan. • • • • • • • • • Lack of capacity Lack of professional and skilled project managers Lack of project management in institutions curriculum Corruption in the government system Cost of a project from first contractor up the last one decreases up to (1million falls to 3 hundred thousand) Lack of information Projects were not prioritized Lack of cooperation between the public organizations and private sector Lack of coordination between the government and donor countries 15 ACCELERATING RECONSTRUCTION • Lack of coordination between government planning and the actual needs of the people 3.3.2 External factors. As Afghanistan depends on donor aid the external factors had more of an affect on the projects in Afghanistan, and as well there are several other challenging external factors contributing to the project challenges in the country as follows: • Miscommunications between the donors and project implementers (Private Sector) and the government of Afghanistan • • Dependency of the projects on donor aid Donor makes a contract with a company outside the country, then the project goes to second and third subcontracts which cause the quality to decrease • Government is not allowed to monitor and control the projects which are funded and contracted by the donor countries directly. • Massive corruption usually in contract phase of project as the first contractor sells the project to another contractor for the implementation. • • Lack of expenditure reports on project implementation by the donor countries to Afghanistan’s public sector. Government cannot monitor and control projects while implemented by the donor countries, as the donor countries contend that the government of Afghanistan does not have sufficient capacity to monitor and control the projects. 16 ACCELERATING RECONSTRUCTION 3.4 Project Delay in Afghanistan A large number of construction projects in Afghanistan have experienced delay. The evaluation reports from different international organizations on Afghanistan’s infrastructure projects indicated several factors contributing to project delay in Afghanistan. The assessment reports from the office of Special Inspector General for Afghanistan’s Reconstruction (SIGAR), World bank, and Asian Development Bank (ADB) indicated some of the projects that experienced delay in different parts of Afghanistan: a) SIGAR (2009) pointed out several factors altering the duration of the project; construction of detention facility at a US funded counter narcotics justice center in Kabul, Afghanistan. The project started in 2007 and finished in 2009, finishing 18 months behind schedule due to several factors including: o Insufficient funding o Inadequate electricity o Scope modification and changes during construction of the project b) SIGAR (2010a) indicated several factors contributing to project delay in a joint regional Afghanistan national security forces compound (JRAC), 4 projects including regional logistic center (RLC), Afghanistan national civil order police (ANCOP), uniformed police (UP), border police (BP). Projects started in 2008, so the following table describes the projects original completion date based on the contract and actual project completion date, Table 3.1 JRAC 4 projects completion date based on the contract and actual completion date Name of the project RLC ANCOP UP BP Source: SIGAR, 2010 Original completion date Sep 3, 2007 Nov 16, 2009 Aug 16, 2009 July 29, 2009 Actual completion date Oct 22, 2009 June 30, 2010 March 28, 2010 July 15, 2010 The first project RLC experienced almost two years of delay, ANCOP and UP projects experienced 7 months of project delay, and BP project experienced a one-year delay. ACCELERATING RECONSTRUCTION 17 Land dispute and project relocation issues, inadequate project planning and oversight contributed to the project lengthy duration. c) SIGAR (2010b) observed numerous challenges during the implementation of projects: construction of Afghan national police district headquarters facilities in Garm Ser, Nad Ali, and Nahri Saraj district of Helmand and Takhta Pul, Spin Boldak, and Zehellin district of Kandahar province. The project started in May, 2007 and has expected to be completed in January, 2009 but different factors caused the projects to incur delay. The projects were completed on May 2010 with one year and five months of delay. Numerous factors contributed to the project duration such as; contract modification including scope changes, delay in construction due to confusion between project stakeholders on design issues, and delay due to issuance of suspension letter from the client to the contractor due to security issues. d) SIGAR (2011a) indicated that the project of the construction of Kabul military training center (KMTC), a training base for newly recruited personnel into the Afghanistan National Army (ANA) experienced delay during the construction. The project started in November 8, 2006 and has expected to be completed in January 20, 2010, but the project was not completed and ultimately the project was completed on Aug 16, 2011 with almost 20 months of delay. Several factors contributed to the project’s delay such as: additional work added to the contract, unanticipated site condition, contractor’s performance problem, security issues, and inadequate planning of the project. e) SIGAR (2011b) observed that the construction of Afghan National Security University (ANSU) has faced delay during the implementation. The project started in September 2008 and has expected to be completed in June 2010 but the project was completed in October 2011 with one year and 10 months of delay. There are several factors, which caused the project to experience delay including: scope changes by adding additional work to the scope of the project, waiting for demining the area, project design change, and weakness in contract administration. ACCELERATING RECONSTRUCTION 18 f) Since 2001 the GIRoA were unable to provide reliable electricity to a number of big cities in Afghanistan due to numerous factors therefore, the United States funded 5 power projects in different provinces of Afghanistan to provide electricity for the designated areas. SIGAR (2012) observed that the projects including south east power system (SEPS), transmission lines (TLs) and Substations (Ss), SEPS Kandahar city to Durai Junction TL&Ss, North East Power System (NEPS), Dasht-i-Barchi to Gardez TL&Ss, Neps Dasht-i-Barchi to Maydan Shahr to Gardez TL&Ss were not completed on time due to several reasons including: the late arrival of fiscal year 2011 Afghanistan Infrastructure Fund (AIF) funds, project team reorganization, personnel changes, programmatic changes to project execution, and difficulties of field personnel travelling to the proposed project sites to assess projects. g) SIGAR (2013) observed that the construction of building facilities at the ANP provincial headquarters in Kunduz Province has faced delay during construction. The project started in August 2010, and during the site inspection of SIGAR from the project almost 50 percent of the project was completed, and the project was over one year behind schedule due to unstable soil conditions and sink holes on the project site as well due to weather condition. And as a result the contractor required modification of the contract leading to the project experiencing delay. h) In 2010, Asian Development Bank (ADB) reviewed Andkhoy to Qaisar Road project completion report in Afghanistan: the project was supported by ADB and had 3 components I. A 55 km road from Qaisar to Almar, II. A 70 km road from Almar to Shirin Taghab III. A 85 km road from Shirin Taghab to Andkhoy and were constructed by a single contractor. The projects started in August 2006 and was completed in June 2010. The first component of the project experienced 33 months of delay, the second component experienced 32 months’ delay and the third component experienced 20 months of delay. Numerous factors contributed to the project delay such as: 1. Delays in appointing the supervision consultant due to the withdrawal of the first-rank firm on security concerns ACCELERATING RECONSTRUCTION 19 2. Slow mobilization of equipment and resources by the contractors 3. Design change of vertical alignment in mountainous areas 4. Abnormal rains and flash flooding from March to May 2009 5. The Afghan presidential election in 2009 6. Numerous security incidents, and 7. MOPW's weak management capacity and supervision consultant’s slow actions that led to lengthy negotiations with the contractors and prolonged processing and approval of extra work variation claims. i) The World bank provided a grant under the program of the Afghanistan Reconstruction Trust Fund (ARTF) for Kabul Aybak Mazar-e-Sharif power project (World bank, 2012). The project aimed to provide reliable and quality power in the target areas of the cities of Kabul, Aybak and Mazar-e-Sharif. The project had four components: 1: Distribution system for the rehabilitation of Kabul electricity 2: Establishment of a new 220/20 kV substation at Aybak and inter- connection with the distribution system; 3: Rehabilitation of the Mazar-e-Sharif power system 4: Institutional capacity building and support The duration of the project was from December 26, 2007 to December 31, 2009. The project was not completed on time and due to numerous factors 39 months of delay occurred to the project and the project was supposed to be completed on March 31, 2013. The World bank demonstrated that the project as a whole has suffered significant delays due to: â–ª â–ª â–ª â–ª Weak capacity, particularly for project management, which has been addressed by extensive reliance on supervision consultants. Demobilization of the previous project management firm (PMF) resulted in a considerable slowdown in physical progress on site, Delays in payments to contractors and progress reporting. The arrival of goods has been delayed by slow issuance of duty exemption certificates and so goods have not been released by customs. ACCELERATING RECONSTRUCTION â–ª â–ª â–ª â–ª 20 Poor Cooperation between DABS and MEW, Insufficient packing of containers Poor road condition Security challenges j) U.S. Agency for International Development (USAID) provided fund for the construction of a 105-megawatt power plant on the outskirts of Kabul. SIGAR (2010c) pointed out that the project started in July 2007 and was scheduled for completion on March 31, 2009, but the project was not completed on time and due to several factors 12 months’ delay occurred and finally the project was completed on March 31, 2010. The factors contributed to the project delay include: â–ª â–ª â–ª â–ª â–ª â–ª â–ª â–ª An initial inability to obtain adequate title to land for construction USAID’s inclusion of an ambiguous statement of work resulting in poor planning and implementation Contractors delays in subcontractor awards and mobilization Subcontractor performance problems related to generator delivery delays and an inability to find enough qualified workers to keep the project on schedule Lack of on-site quality assurance Delays in getting timely approvals from USAID’s contracting officer Poor communication between USAID and the project contractor Transportation and customs clearance problems ACCELERATING RECONSTRUCTION 21 Chapter 4 Related Studies Based on the significance of the subject, and frequency of occurrence during the projects implementation, projects delay has become a common problem especially in developing countries therefore, numerous studies have been conducted regarding project delay, its factors and effects. Project delay could be minimized only when its factors would be identified, the findings of these studies have been reviewed to complete this thesis. 4.1 Causes and Effects of Delay in Iranian Construction Projects Pourrostam and Ismail (2012) investigated on significant factors causing project delay on residential buildings, offices, administration buildings and roads projects to identify the main factors that are causing delay in Iranian construction projects. The study was completed based on a literature review and questionnaire survey. The questionnaire was distributed to the consultants and contractors. The researchers concluded ten most important causes of delay in construction projects in Iran as: 1. Delay in progress payment by client 2. Change orders by client during construction 3. Poor site management 4. Slowness in decision making process by client 5. Financial difficulties by contractor 6. Tardiness in reviewing and approving design documents by client 7. Problems with subcontractors 8. Ineffective planning and scheduling of project by contractor 9. Mistakes and discrepancies in design documents 10. Bad weather condition ACCELERATING RECONSTRUCTION 22 4.2 Identification, Evaluation and Classification of Time Delay Risks of Construction Projects in Iran Alavifar, Resalat, and Motamedi (2014) conducted a study to Identify, Evaluate and Classify the Time Delay Risks of Construction Projects in Iran. The researchers did a field study and distributed questionnaires to 32 representatives of public and private companies including consultant, contractor and client. They have classified the delay factors based on the different points of view of the project stakeholders (Owner, Consultant and Contractor). From the owner point of view: 1. Insufficient data collection and survey before design 2. Improper construction methods implemented by contractor 3. Difficulties in financing project by contractor 4. Delay in progress payments by owner 5. Change orders by owner during construction, are ranked as the top factors causing delay in a construction project. Based on the consultant view: 1. More than expected increase in Inflation rate 2. Delay in progress payments by owner 3. Delay in obtaining permits from municipality 4. Suspension of work by owner 5. Poor communication and coordination by owner and other parties are the top factors of project delay. Based on the contractor view: 1. Rework due to errors during construction 2. Insufficient data collection and survey before design 3. Late in revising and approving design documents by owner 4. Original contract duration is too short ACCELERATING RECONSTRUCTION 23 5. Legal disputes between various parties are ranked the highest delay factors in construction project. 4.3 Significant Factors Causing Time Overrun in Construction Projects of Peninsular Malaysia Memon, Rahman, Akram and Ali (2014) have conducted a study to identify the significant factors causing time overrun in the Malaysian construction industry. The study focused on a survey in central and southern Malaysia. Questionnaires were distributed to 300 companies and 75 responses were received, and based on their findings, significant factors that contribute to construction time overruns are: 1. Cash flow and financial difficulties faced by contractors 2. Poor site management and supervision by contractor 3. Incompetent subcontractors 4. Shortage of site workers 5. Financial difficulties of owner 6. Frequent design changes by consultant 7. Shortages of materials 8. Delay in progress payment by owner 9. Unforeseen ground condition 10. Delay in preparation and approval of drawings 11. Late delivery of materials and equipment 12. Changes in the scope of the project were ranked most important among the 30 factors listed for the research. 4.4 Delays in building construction projects in Ghana Fugar, Agyakwah-Baah, and others (2010) conducted a study in Ghana to find out the most important factors of delay in construction projects. From the research, 32 causes of delay were ACCELERATING RECONSTRUCTION 24 identified by literature review and interviews, and then based on a literature review a questionnaire was formulated to find out the most important factors of projects delay. The findings of this study describes the top ten factors which are causing project delay in construction projects of Ghana as follows: 1. Delay in honoring certificates 2. Underestimation of the costs of projects 3. Underestimation of the complexity of projects 4. Difficulty in accessing bank credit 5. Poor supervision 6. Underestimation of time needed for completion of projects by contractors 7. Shortage of materials 8. Poor professional management 9. Fluctuation of prices/rising cost of materials 10. Poor site management 4.5 Study on the Quantification of Delay Factors in the Construction Industry Nadu (n.d.) carried out a research to find out the causes of project delay in construction projects in India. Literature was reviewed to compile a list of delay causes in the constriction industry, and then data was collected through questionnaire from numerous construction industries. The outcome of this study describes the most important factors as follows: 1. Shortage of unskilled & skilled labor 2. Design changes by owner or his agent during construction 3. Fluctuation of prices 4. High waiting time for availability of work teams 5. Rework due to errors 6. Delay in financial support by owner to the contractor (Stage by stage payment) 7. Geological problems on site ACCELERATING RECONSTRUCTION 25 8. Poor site management and inaccurate site investigation 9. Wrong selection of type /capacity of equipment 10. Bad weather conditions /Natural disasters (flood, earthquake) 4.6 Causes and Effect of Delay on Project Construction Delivery Time Researchers conducted a study to find out the causes and effect of delay on project construction delivery times in Nigeria. From the study the researchers found significant factors that causing project delay. The factors comprise: 1. Lack of funds to finance the project to completion 2. Changes in drawings and specifications 3. Lack of effective communication among the parties involved 4. Lack of adequate information from consultants 5. Slow decision-making 6. Contractor’s insolvency, variations 7. Project management problems 8. Mistakes and discrepancies in contract document 9. Equipment availability and failure 10. Mistakes during construction 11. Bad weather condition 12. Fluctuation in prices of building materials 13. Inappropriate overall organizational structure linking to the project and labor strikes. The findings from the study also pointed out the effect of delay which are causing time overruns, increase in the final cost of project, wastage and underutilization of manpower and resources, ACCELERATING RECONSTRUCTION 26 tying down of client capital due to non completion of the project, and disputes among parties (Owolabi James, Amusan Lekan, Oloke, Olusanya, and Tunji-Olayeni, n.d.). 4.7 Causes and Effects of Delays and Disruptions in Construction Projects in Tanzania Kikwasi (2013) conducted research to find out the causes and effects of delays and disruption in construction projects in Tanzania. Literature review, questionnaire and interview techniques were used for data collection purposes. The findings of this research points out: 1. Design changes 2. Delays in payment to contractors 3. Information delays 4. Funding problems 5. Poor project management 6. Compensation issues 7. Disagreement on the valuation of work done as the main factors, which are causing delay and disruption in construction projects in Tanzania. The research also reveals the effects of delay and disruption as; time overrun, cost overrun, negative social impact, idling resources and disputes in the construction projects. 4.8 Causes, Effects and Methods of Minimizing Delays in Construction Projects Wei (2010) researched to find out the causes, effects and methods of minimizing delays in construction projects. A questionnaire was formulated and distributed to University Teknolgi Malaysia (UTM) construction site for data collection purposes. The finding describes: 1. Tardiness in revising and approving design documents 2. Delays in subcontractors’ work 3. Poor communication and coordination ACCELERATING RECONSTRUCTION 27 4. Change orders by client during construction 5. Inadequate contractor’s work 6. Delay in approving major changes in the scope of work 7. Shortage of labor 8. Ineffective planning and scheduling of project 9. Conflicts in subcontractor’s schedule in execution of project 10. Mistakes and discrepancies in design documents Based on the second objective of the research, the effects of delay were found as time overrun, cost overrun, dispute, total abandonment, arbitration, and litigation. And for the third objective of the research, on how to minimize delay he recommends the most effective methods of minimizing delays include: a) Site management and supervision b) Effective strategic planning c) Clear information and communication channels d) Collaborative working in construction e) Proper project planning and scheduling f) Frequent coordination between the parties involved g) Complete and proper design at the right time h) Use appropriate construction methods i) Accurate initial cost estimates j) Proper material procurement k) And proper emphasis on past experience 4.9 Identification of Causes of non-excusable Delays of Construction Projects Afshari, Khosravi, Ghorbanali, Borzabadi and Valipour (2010) conducted a study on identification of causes of non-excusable delays of construction projects. The data was collected through questionnaire from the personnel involved in the construction industry. The findings reveal important factors of delay in construction projects as follows: ACCELERATING RECONSTRUCTION 28 1. Not selecting competent subcontractors 2. Poor management of the project changes 3. Lack of mechanism for recording, analyzing, and transferring project lessons learned 4. Delay in forwarding material and equipment to the site 5. Delay in awarding subcontractors’ contracts 6. Lack of effective managing and controlling subcontractors 7. Delay in detail design by project engineer subcontractor 8. Delay in supplying or shortage of equipment 9. Poor management of project site 10. Poor management of project contract 4.10 The Significant Factors Causing Delay of Building Construction Projects in Malaysia Alaghbari, Razali A. Kadir, Salim, and Ernawati (2007) conducted a study to identify the major factors causing delay in building construction projects in Malaysia. A questionnaire survey was used for data collection purposes. The outcome of the research exposes the top ten significant factors of delay which are: 1. Owners financial difficulties and economic problems 2. Contractors financial problems 3. Supervision too late and slowness in making decisions by consultant 4. Slow to give instructions by consultant 5. Lack of materials on the market 6. Poor site management by contractor 7. Contractor’s materials shortages on site 8. Contractor’s construction mistakes and defective work 9. Delay in delivery of materials to site by contractor 10. Slowness in making decisions by owner 11. Lack of consultant’s experience 12. Incomplete documents by consultant ACCELERATING RECONSTRUCTION 29 4.11 Causes of Project Delay in the Construction Industry in Afghanistan Gidado and Niazai (2012) conducted a case study entitled causes of project delay in the construction industry in Afghanistan. Data was collected through questionnaire from 3 points of view, Client or the owner of the project, Consultant and Contractor. The findings of the study revealed the top 10 significant factors causing delay in the construction industry of Afghanistan as fallowing: 1. Security 2. Corruption 3. Poor qualification of the contractor’s technical staff 4. Delay in progress payments by owner 5. Poor site management and supervision by contractor 6. Ineffective planning and scheduling of project by contractor 7. Type of project bidding and award (negotiation, lowest price and etc.) 8. Difficulties in financing project by contractor 9. Poor communication and coordination by contractor with other parties 10. Frequent change of subcontractors because of their inefficient work 4.12 Causes and Effects of Delays in Large Construction Projects of Pakistan A study has been conducted to find out the cause and effect of delay in large construction projects in Pakistan. The researcher developed a questionnaire and conducted a survey for data collection purposes. The outcome of the study pointed out 16 factors causing projects delay in large construction projects in Pakistan including: o Finance and payments o Inaccurate time estimation o Quality of material o Delay in payments to supplier and subcontractor o Poor site management ACCELERATING RECONSTRUCTION o Old technology o Natural disasters o Unforeseen site conditions o Shortage of material o Delays caused by subcontractors o Changes in drawings and specifications o Improper equipment o Inaccurate cost estimation o Change orders o Organizational changes o Regulatory changes (Pakistan, 2011) 30 ACCELERATING RECONSTRUCTION 31 Chapter 5 Data Collection and Analysis The methodology of this study is based on qualitative and quantitative data collection methods. The qualitative data is collected through review of books, observations, interviews and review of other scholars’ papers concerning similar research in developing countries such as Iran, India, Malaysia, Tanzania, Nigeria, Ghana, and Pakistan. Literature was reviewed to find out the observation of other scholars concerning projects delay. Initially similar research has been reviewed and as well findings from the project management challenges are pointed out, and then from the aforementioned studies reviews, the questionnaire has been formulated with 30 factors; these factors were selected based on their frequency, which have high potential of occurrence in Afghanistan. Furthermore, these factors were selected based on the frequency of occurrence in developing countries. 5.1 Data Collection For the purpose of data collection, the questionnaires have been distributed to those organizations of the Afghanistan’s government that are mainly involved in infrastructure projects in all around the country. 50 questionnaires have been distributed to the related Ministries (MRRD, MOUDA, MOE, MOPW, and MEW) of the Afghanistan's government and 30 out of 50 questionnaires, which shows 60% of response rate here, returned and properly filled out for the purpose analysis. For the distribution of the questionnaire the researcher personally visited each organization and in some cases the questionnaires have been collected through emails from some officials. The period of data collection through questionnaire was between August 15, 2015 and September 14, 2015. Regarding the ranking of the officials responding to the questionnaire, around 40 percent of respondents are first and second rank officials which are mainly director generals and directors in the government of Afghanistan, and the remaining 60 percent are project employees such as project manager, deputy project managers, project engineers, site engineers, project inspectors and so on. And the distributions of respondents are as follows: 32 ACCELERATING RECONSTRUCTION 10 respondents from MEW, 9 respondents from the MOPW, 6 respondents from MRRD, 3 respondents from MOUDA, and the final 2 respondents from MOEc. The following table sheds light on the number and percentage of respondents from 5 different organizations of Afghanistan. Table 5.1 response rate based on the organizations Organization Number of respondents Percentage of respondents MEW 10 33.33 MOPW 9 30 MRRD 6 20 MOUDA 3 10 MOEc 2 6.67 Total 30 100% Source: Survey conducted by the researcher, 2015 5.2 Data Analysis For analyzing the calculated data, the relative important index (RII) method is used. The relative importance index (RII) is calculated as follow: RII = ΣW/A*N Where; W = weight given to each factor by respondents A = highest weight N = total number of respondents. For the purpose of this study A=4 and N=30. (0.25 ≤ RII ≤ 1) and calculated in Microsoft excel sheet as (=SUM(C2*4+D2*3+E2*2+F2*1)/(4*30)). Based on the responded questionnaires top 10 factors need to be identified, and to calculate the rankings in excel sheet this formula is used (=RANK(G2,$G$2:$G$31)) . The following table describes the analysis of the project delay based on the collected data from different public organizations of Afghanistan, which is sorted basedRECONSTRUCTION on the RII. ACCELERATING 33 Table 5.2 Data analysis of project delay based on the calculated data Causes of project delay Very Important Important Less Important Not Important RII Ranks Ineffective planning and scheduling of project by contractor 17 10 3 0 0.866666667 1 Delay in progress payments by client 14 15 1 0 0.858333333 2 Poor site management and supervision of contractors by consultant and client 14 13 3 0 0.841666667 3 Financial difficulties by contractor 12 13 5 0 0.808333333 4 Insufficient controlling and monitoring by consultant and client 11 15 4 0 0.808333333 4 Non availability of experienced technical staff of contractor 8 19 2 1 0.783333333 6 Late in reviewing and approving design documents by client 7 18 5 0 0.766666667 7 Lack of communication and coordination between the parties 9 14 6 1 0.758333333 8 34 ACCELERATING RECONSTRUCTION Delay in delivery of materials to site Inadequate contractor experience 6 7 19 5 0 0.758333333 8 17 5 1 0.75 10 Political influences and warlord intervention 7 18 3 2 0.75 10 Scope changes by client during construction 4 21 5 0 0.741666667 12 Long waiting time for approval of tests and inspection by consultant 8 13 9 0 0.741666667 12 Late procurement of materials 7 15 8 0 0.741666667 12 Lack of incentives for contractor to finish ahead of schedule 10 11 6 3 0.733333333 15 Slowness in decision making process by client 1 24 5 0 0.716666667 16 Impractical allocation of resources 4 15 10 1 0.683333333 17 Low productivity level of labors 2 19 7 2 0.675 18 Shortage of materials in the market 5 10 15 0 0.666666667 19 35 ACCELERATING RECONSTRUCTION Low motivation and morale of labor 2 17 9 2 0.658333333 20 Unrealistic contract duration 6 10 11 3 0.658333333 20 Unclear and inadequate details in drawings 3 12 15 0 0.65 22 Changes in materials types and specifications during construction 2 16 9 3 0.641666667 23 Problems with subcontractors 4 10 14 2 0.633333333 24 Unreliable suppliers 3 11 15 1 0.633333333 24 Controlling subcontractors by main contractor in the execution of work 4 11 10 5 0.616666667 26 Rework due to the Mistakes during construction stages 5 5 18 2 0.608333333 27 Materials price changes due to the currency fluctuation 2 12 13 3 0.608333333 27 Excessive bureaucracy in project owner operation 2 9 16 3 0.583333333 29 Contractors with political clout 4 8 11 7 0.575 30 Source: Table is designed based on the survey conducted by the researcher, 2015 36 ACCELERATING RECONSTRUCTION Based on the calculation of relative important index in table 5.2, top 10 factor is observable with the highest (RII) of 0.866666667 and lowest of 0.75, and as the RII of number 11 is same with top 10, then it is necessary to consider top 11 factors altering projects delay in construction projects of Afghanistan. And finally narrowing down to the following table, which describes the top 11 factors, that causes projects delay in construction projects in Afghanistan. Table 5.3 Significant factors of delay Causes of project delay RII Ranks Ineffective planning and scheduling of a project by contractor 0.866666667 1 Delay in progress payments by client 0.858333333 2 Poor site management and supervision of contractors by consultant and 0.841666667 3 client Financial difficulties by contractor 0.808333333 4 Insufficient controlling and monitoring by consultant and client 0.808333333 4 Non availability of experienced technical staff of contractor 0.783333333 6 Late in reviewing and approving design documents by client 0.766666667 7 Lack of communication and coordination between the parties 0.758333333 8 Delay in delivery of materials to site 0.758333333 8 Inadequate contractor experience 0.75 10 Political influences and warlords intervention 0.75 10 Source: result of the conducted survey by the researcher on 2015 5.3 Result and Discussion Based on the analysis of the collected data, the researcher deliberates the top 11 factors, which are causing delay in construction projects in Afghanistan. 5.3.1 Ineffective planning and scheduling of project by contractor. This factor has the highest influence to the projects duration with the RII of 0.866666667. As it is clear; Afghanistan is a country, which has suffered for almost 4 decades of war and ACCELERATING RECONSTRUCTION 37 insurgency, and as a result the people have been deprived of proper education and knowledge in different aspects of life, especially the education system remained very archaic and could not fulfill the requirements of modern life. People educated from these old system institutions are being hired by the contractors; So most domestic contractors do not have proper skills of managing projects activities therefore, these contactors have less experience and knowledge about project planning and scheduling, this factor primarily causes delay in the projects. 5.3.2 Delay in progress payments by client. In this study, ministries in the government of Afghanistan as clients of the construction projects in the country are responsible to make payments to the contractors on time, based on the executed work by contractors, but due to several problems delay occurs in payment of the liquidation to the contractors. Normally based on the procurement policy, when a government body signs a project contract with a contractor, the government body as the client of the project is required to pay some percentage of the overall contract amount to the contractor for mobilization purposes so the contractor could start the project, then based on the executed work, the rest of the project funds would be released by the client to the contractor based on their performance and completed work. The required amount of the money for mobilization purposes should be handed over to the contractors some time after the contract is signed with the contractor through Ministry of Finance, but as the prolonged procedure of the payments by the client which is very lengthy and usually it takes months, causing project delay even before a project kicks off. Another problem is the financial disbursement during the projects progress stages. It happens when the contractor accomplishes a certain amount of work and request payment for the executed work. Then ministry as client issues a certificate based on the supervision of the project manager from the projects. The project manager and other technical staff visits the project and confirms the amount of completed work and then they issue the certificate, which usually takes time for the supervision and certificate issuing purpose. Then based on the certificate the Ministry of Finance releases a certain amount of money to the contractor and it takes longer time to release the money. the prolonged procedure of payments by the government and time- ACCELERATING RECONSTRUCTION 38 consuming supervision of the project manager and other technical officials from the projects takes time and causes the contractors to face a lack of liquidation during project implementation and in some cases the contractor stops the work because they are not paid in a reasonable time. 5.3.3 Poor site management and supervision of contractors by consultant and client. The donor countries require the government bodies to hire consultants to supervise the overall activities of the contractors and report it to the donor agencies. Due to several factors in the government of Afghanistan, the government does not have much ability and personnel to supervise work progress of the projects. Therefore, the government hires consultants to directly supervise the projects and report to the government, but in some cases the consultant as supervisor of the projects are not going to site for the supervision due to some reason or another and causes poor site management and poor supervision of the projects. For most of the infrastructure projects, the government is directly supervising the overall activates of the contractors, and for this purpose the government hires a project manager with a project facilitator such as administrator and finance assistant to supervise the project and report the progress of work to the government authorities. As the government is unable to pay high wages to the officials, professional and skilled personnel are not willing to work in the government sector due to the low wages. So most of the government official capacities are low and they don't have much experience in projects supervision and site management, causing projects delay. There are also some other factors such as corruption in the whole system of the government which are influencing poor site management and supervision of the projects in the government of Afghanistan. 5.3.4 Financial difficulties by contractor. Most of the contractors of the construction projects are local contractors and they do not have financial capability to complete a project with their own cash so mainly they depend on the client’s money. In this case when a certain amount of work is completed, the contractor requests the client to make payment of the executed work. So if the client could not make disbursement, then the contractor will not be able to continue the projects work until they are paid, so it causes delay. ACCELERATING RECONSTRUCTION 39 5.3.5 Insufficient controlling and monitoring by consultant and client. The Government of Afghanistan as client mostly lacks experts and professionals of project management. The people who get experience and becomes professional in the government is leaving from the government sector, because government is unable to pay enough wages to fulfill the needs of the daily life of its employees. Mainly officials remaining in the government sector have less capacity to sufficiently monitor and control the overall activities of the projects, However, Foreign consultants are good at monitoring and controlling over the activities of the projects but in some cases when they face problem in monitoring and controlling, it causes delay. 5.3.6 Non availability of experienced technical staff of contractor. Most contractors are domestic organizations, and in generally the country is lacking expertise in different sectors. The technical field is also a major area in which there is less experienced staff working in the organization which are undertaking the infrastructure projects. If there is less technical staff or unavailable technical staff in an organizations contracting the infrastructure project, they will definitely face problem in different stages of projects implementation and it takes time to overcome those problems which causes delay in the projects. 5.3.7 Slow in reviewing and approving design documents by client. Project managers in the Government of Afghanistan as client is required to approve design documents prior to the start of a project. As there is less qualified and few professionals working in the government, they are taking much time to review and approve the design documents of the projects, therefore delay occurs. 5.3.8 Lack of communication and coordination between the parties Although there have been efforts for e-Government in Afghanistan, most of the communication between the projects stakeholders is paper-based. The contractor is reporting the progress of the work through memos and documents and paper based communication is time consuming, and moreover most of the officials in the government have less capacity and knowledge of project management. Coordination between the parties are mainly based on their communication. If communication is weak then most probably there is less coordination. However communication is a key to ACCELERATING RECONSTRUCTION 40 successful project delivery. 5.3.9 Delay in delivery of materials to site. Contractors mostly imports materials from the neighboring countries for the projects, and custom clearance issues are increasing time to import the goods and in some cases, due to the political situation with the neighboring countries, the materials are being detained at the border until the situation improves and the contractor gets the goods and delivers to the site. Furthermore, roads are not well constructed and also there is lack of highways to the projects. So, due to aforementioned reasons, delay occurs. 5.3.10 Inadequate contractor experience. Most of the contractors of the construction projects for the government of Afghanistan are local contractors with less experience and less qualified people. As Afghanistan continues to recover from the war, international contractors are not willing to implement the infrastructure projects in the countryside, so government have only one choice but to implement the projects by the domestic contractors even though they have less experience and less technical personals. 5.3.11 Political influences and warlord intervention. Some of the warlords became politicians through democratic elections, and they are directly or indirectly influencing the projects work. Usually they intervene in projects activities, which are being implemented in their home province or district. In some cases, they take kickbacks from the contractors. Most of the warlords are active in their home territory and are causing loss to the contractors by demanding bribes, and in some cases even warlords force the contractors to hire their people for the projects. 41 ACCELERATING RECONSTRUCTION 5.4 Comparative analysis The fallowing table Compares project delay factors of countries Iran, Pakistan, India, Nigeria, Ghana with Afghanistan to indicate the common factors contributing to project duration and on the other hand, determining the particular project delay factors in Afghanistan. Table 5.4 Comparative analysis for the significant factors of delay in different countries Country Iran Pakistan India Nigeria Ghana (Pourrostam & (Pakistan, 2011) (Nadu, n.d.) (Owolabi et al., n.d.). (Fugar et al., 2010) Citation Ismail, 2012) Significant â–ª factors of Delay in project payment by delay client. â–ª â–ª by client â–ª â–ª â–ª Inaccurate time estimation. â–ª â–ª payments to management. supplier and decision making process â–ª Quality of Delay in subcontractor. â–ª Poor site â–ª skilled labor. Design changes by Poor site Slowness in Shortage of unskilled & owner during material. during Construction. â–ª payments. progress Change orders Finance and â–ª â–ª â–ª Delay in This Thesis â–ª Ineffective finance the honoring planning and project to certificates. scheduling of a Underestimation project by Changes in of the costs of contractor. drawings. projects. completion. Lack of â–ª â–ª â–ª Delay in Underestimation progress effective of the payments by Fluctuation of communication complexity of client. prices. among the projects. High waiting parties involved. construction. â–ª â–ª Lack of funds to Afghanistan â–ª â–ª Poor site Difficulty in management Lack of accessing bank and supervision availability of adequate credit. of contractors work teams information Poor by consultant supervision. and client. time for â–ª from consultants â–ª 42 ACCELERATING RECONSTRUCTION by client. â–ª Financial management. â–ª difficulties by contractor. â–ª Late in reviewing and approving â–ª design documents by client. â–ª support by disasters. owner to the â–ª â–ª Geological problems on Shortage of â–ª site. â–ª Poor site making and of time, for difficulties by contractor’s completion of contractor. insolvency, projects by variations. contractors. controlling and Shortage of monitoring by materials. consultant and Poor client. Project management contractor. Unforeseen site Financial problems. of experienced Fluctuation of technical staff document. prices/rising of contractor. Equipment cost of materials. reviewing and Poor site approving management. design and Inaccurate availability and planning and subcontractors. site failure. project by contractor. Mistakes and â–ª drawings. â–ª discrepancies in design Changes in â–ª â–ª Wrong selection of Improper type /capacity equipment. of equipment. Inaccurate cost â–ª Bad weather conditions â–ª â–ª â–ª management. by â–ª â–ª Insufficient discrepancies in Ineffective investigation. â–ª â–ª professional contract â–ª â–ª Mistake and management scheduling of â–ª Delay in Underestimation â–ª Slow decision- Delays caused subcontractors. â–ª â–ª â–ª Natural material. Problems with â–ª financial conditions. â–ª Rework due to errors. Old technology. â–ª â–ª Mistakes during â–ª â–ª â–ª Non availability Late in construction. documents by Bad weather client. condition. â–ª Lack of Fluctuation in communication prices of and building coordination 43 ACCELERATING RECONSTRUCTION documents. â–ª Bad weather condition. estimation. /Natural â–ª materials. between the Inappropriate parties. â–ª Change orders. â–ª Organizational organizational delivery of changes. structure linking materials to site. â–ª disasters. overall to the project Regulatory changes. â–ª â–ª and labor strike. Delay in Inadequate contractor â–ª experience. Political influences and warlords intervention. Source: Table is designed based on the literature review, 2016 ACCELERATING RECONSTRUCTION 44 Table 5.5 Common delay factors in Iran, Pakistan, India, Nigeria, Ghana, and Afghanistan o Financial challenges, such as delay in progress payment by client, delay in financial support by owner to the contractor, lack of funds to finance the project to completion, financial difficulties by contractor, and delay in payments to supplier and subcontractors o Design and scope changes during construction o Poor site management and supervision o Ineffective planning and scheduling including underestimation of the project duration o Fluctuation of prices o Materials concerns such as, availability, quality, capacity, type, and transportation to the site o Natural disaster/weather condition o Communication and coordination between the parties o Slowness in decision making by client o Lack of skilled personnel Source: researcher analysis, 2016 Table 5.5 demonstrates the common delay factors concerning the countries Iran, Pakistan, India, Nigeria, Ghana, and Afghanistan. There are several factors observable which have high potential of occurrence in the mentioned countries, on the other hand there are 3 delay factors which are Particular to Afghanistan including: o Insufficient controlling and monitoring by consultant and client o Inadequate contractor experience o Political influences and warlord intervention These factors are completely different from the other developing countries. The above mentioned causes are due to several influences including the client of the project which mainly depend on monitoring and controlling the project by consultant firms and the client itself do not perform the monitoring and controlling tasks. Incase with contractor experiences, as the construction industry is new in Afghanistan and mainly emerged after year 2001, the construction firms lacking enough experience to deliver services based on the norms and standards. ACCELERATING RECONSTRUCTION 45 Chapter 6 Conclusion and Recommendation Conclusion A large number of Public Construction projects in Afghanistan are not implemented on time; due to several factors delay arises, so the construction projects fail to meet their contract time and project delay negatively impacts the development process of the country. The impact of project failure in Afghanistan negatively affects the prestige and dignity of the government organizations. Some of the project failures caused the destruction of hope of the people. Since the Afghanistan government depends on donor aid, the factors of delay mainly affect the contribution of the donor agencies in the country. Due to simultaneous occurrences of the delay in development projects funded by donors in Afghanistan, it would minimize their contribution to the development projects. In general, failures and flaws of the projects created distance between the people and the government and shows the weakness of the government in the implementation of the projects all over the country in Afghanistan. As human living quality depends on the implementation of infrastructure projects in a country, so the aim of this research is to find out projects delay factors and mainly the significant causes of delay in construction projects in Afghanistan and to recommend appropriate solutions to avoid delay in construction projects in Afghanistan. The qualitative data is collected through review of books, observations, interviews and review of other scholars’ papers concerning the similar research in developing countries such as Iran, India, Malaysia, Tanzania, Ghana, Nigeria, and Pakistan. Literature was reviewed to find out the observations of other scholars concerning projects delay, Furthermore the questionnaire has been formulated based on the literature review so initially similar studies have been reviewed, and then from the aforementioned studies reviews, the questionnaire has been formulated with 30 factors; based on their frequency which have high potential of occurrence in Afghanistan. For the data collection purposes 50 questionnaires have been distributed to the organizations of the Afghanistan’s government that mainly are involved in construction projects all over the ACCELERATING RECONSTRUCTION 46 country and 30 out of 50 questionnaires were returned and properly filled in for the purpose of analysis. The Relative Important Index (RII) method was used for data analysis purpose to identify the significant factors, which cause delay in construction projects in Afghanistan. 6.1 Summary of Findings Based on the analysis of the collected data, significant causes of delay in construction projects in Afghanistan have been revealed as in the fallowing table. Table 6.1 Significant factors of delay Causes of project delay RII Ranks Ineffective planning and scheduling of a project by contractor 0.866666667 1 Delay in progress payments by client 0.858333333 2 Poor site management and supervision of contractors by consultant and 0.841666667 3 client Financial difficulties by contractor 0.808333333 4 Insufficient controlling and monitoring by consultant and client 0.808333333 4 Non availability of experienced technical staff of contractor 0.783333333 6 Late in reviewing and approving design documents by client 0.766666667 7 Lack of communication and coordination between the parties 0.758333333 8 Delay in delivery of materials to site 0.758333333 8 Inadequate contractor experience 0.75 10 Political influences and warlords intervention 0.75 10 Source: Result of the conducted survey by researcher on 2015 Table 6.1 describes the top 11 factors causing delay in construction projects in Afghanistan. However, the aim of this research was to identify the top 10 significant causes of delay in construction projects in Afghanistan, but based on the analysis of the data, the relative important index RII value of top 10 and top 11 is equal, therefore the researcher provides recommendations for the top 11 significant factor which cause delay in construction projects in Afghanistan. ACCELERATING RECONSTRUCTION 47 6.2 Recommendations The purpose of this thesis is to find out a method or technique for minimizing or abolishing the factors of delay in construction projects in Afghanistan, so in the future the project management associations in the government of Afghanistan would not be faced with these types of challenges. Based on the identified significant factors of delay in construction projects in Afghanistan, this paper provides applicable recommendations and possible suggestions and solutions that how to avoid and or abolish the factors of delay in construction projects. The first step for better project management is true commitment. Projects should not be considered as the way of earning money but should be considered as a good opportunity for the development of the country, and in the development of this process, collaborative efforts are needed from every single person involved in the project. Sense of ownership in the working environment should be built in a way, that all personnel involved in the project think that each and everyone is contributing for himself in the project and also staff must be given motivation to work better without pressure in the projects. 6.3 Recommendations for Top 11 Causes of Delay in Construction Projects in Afghanistan 6.3.1 Ineffective planning and scheduling of a project by contractor. The outcomes of this thesis indicate, ineffective planning and scheduling of a project by contractor as the highest influencer to the projects duration with the RII of 0.866666667. To minimize or abolish this factor from causing delay, the Project Management Institute endorse the underneath process for better planning and scheduling of a project by contractor. For the effective planning and scheduling of projects the project stakeholders, especially the contractors need to have sufficient knowledge to plan a project, and the planning phase of a project consists of the following components. ACCELERATING RECONSTRUCTION 48 Project planning. Following the project initiation, the planning phase begins. All the project stakeholders collaborate to develop a comprehensive plan for achieving the purpose of the project and typically, project managers are responsible for managing the project activities based on a welldetailed plan. Project planning is a field guide for attaining the success of a project. During the project implementation, project planning clearly describes that, how much have you progressed towards your project goal and how far you are from your destination. Lack of planning creates ambiguity in projects activities. Huge portion of times would be spent on making decision for the next task, or many unnecessary and insufficient steps might be taken which may cost a lot including waste of time. Phillips, Brantley, and Phillips (2012) Suggested several valuable tools for effective and efficiently planning of a project including: Work breakdown structure WBS. Projects are complex in their nature. To make it easier to manage, WBS breaks down the project into small and more manageable components. It is essentially the disassembly of the activities into smaller and more controllable sections, and dedicating time and cost for each component for effective estimation and supervision. Scheduling. The project schedule as a tool describes, when, what task and by which involved organization resources should be performed, so project managers should be able to track the project schedule, resources and budget in real time. The project schedule provides a charter for accomplishing the project activities. Gantt charts basically describe the amount of performed activities in a period of time versus the planned activities. And as well project schedule provides projects deliverables, activities, and milestones with intended start and finish date. Time Estimating. Time estimation is a tool, which describes, how long the projects takes from the beginning up to ACCELERATING RECONSTRUCTION 49 the end. Projects should be estimated realistically and accurately and here are some steps that could simplify the project time estimation: o Initially projects activities should be identified o Identified tasks and activities should be disassembled and broken down into smaller activities. o Managing and ordering the tasks, which tasks should be performed in what order, o Involving the personnel, who should perform and what task based on the human resources available in the organization o And finally, it is easier to estimate the time of each individual task. Budget estimation. Budget estimation could be a difficult task of a project. For accurate budget estimation of a project the personnel involved requires vast information on the cost of each single item and activity in a project. A bar chart could act to simplify to track the planned value, earned value and actual cost of the activities in a project. Human Resource Planning. Human resource planning is the allocation and management of the personnel to the activities of a project. Assigning the right people in the right places is essential for better performance. In some cases, project personnel are not willing to report to the project managers and they are habitually reporting to some else. In this case project managers are need to be familiar with a number of leadership and management skills so they can motivate and convince the employees for better team performance. Risk Management. There are several factors that could alter project activities during different phases of a project. In ACCELERATING RECONSTRUCTION 50 general risk management provides a list of potential risk that could occur during project implementation. For minimizing, abolishing or taking precautions from the risks, initially potential risks should be identified and categorized and then these risks should be prioritized and finally strategies should be developed to avoid or minimize the risks. Quality management. The quality plan defines the acceptable level of quality, which is typically defined by the customer, and describes how the project will ensure this level of quality in its deliverables and work processes. Quality management is a process to ensure that the product meets the need and satisfies the project stakeholders and it consist of 4 processes: Quality definition, quality assurance, quality control, and quality improvement (PM4DEV, 2016). Quality Definition In this process the project manager and the team must identify and decide on what quality standards would be used in the project Quality Assurance Quality assurance provides evidence to create confidence between stakeholders. This process ensures that the quality related activities are done effectively. Quality Control Quality control is a method where the actual quality of the product would be compared with the quality criteria set in project specifications. Quality control monitor the project result if it is produced based on the specifications so if anything halters the project quality, necessary actions would be taken to eliminate the drawbacks so the final product could satisfy the costumer. Quality improvement It refers to the application of methods and tools to close that gap between current and expected ACCELERATING RECONSTRUCTION 51 level of quality in a project. If the quality of the final product was not satisfactory then at the earlier stages of production, necessary techniques and methods would be undertaken to improve the quality of the project outcome. Procurement plan. Procurement plan is the process of deciding what to buy, when and from what source. By planning your procurement carefully, you can ensure that you buy the right products for your business, at the right price. Procurement plan will help to: • Identify all of the items you need to procure • Define the process for acquiring those items • Schedule the timeframes for delivery. The management plan. A project management plan addresses all the actions necessary to manage and complete a project. The plan defines how the project is executed, monitored, controlled, and closed. 6.3.2 Delay in progress payments by client. Considering the collected data, the second most important factor, which cause delay in construction projects in Afghanistan is delay in progress payment by client with the RII of 0.858333, and it is a critical cause of delays. As a result of this factor many projects in Afghanistan failed to meet their original contract duration. The client needs to formulate a mechanism or a system, which could speed up the process of payment to the contractors. The government has to find a way to streamline the payment process as bureaucracy in the government directly affects the payment process. On the other hand, qualified consultants and collaborative employees should be hired to ease the process of measuring the work scope and providing payment certificates for projects. ACCELERATING RECONSTRUCTION 52 6.3.3 Poor site management and supervision of contractors by consultant and client. Contractors are required to improve the skills and abilities of their personnel including project managers for effectively managing the project site. On the other hand, in order to prevent delay from happening the consultant and client need to hire qualified personnel for this purpose. In principle a site manager is responsible to oversee the day to day operations and ensure that all the duties and responsibilities are performed safely based on the specification and within the project constraints such as cost, schedule, quality. Before a project starts, the site manager prepares the site, planning the work to be done, installing temporary compound as the office for the site personnel. During the project, the site manager should monitor the progress of works and activities, monitor the personnel, oversee the materials delivery to the site. And also the site manager should keep close contact with all the personnel involved in the project, and ensure that all the activities are being performed according to the design and specification of the contract and based on the defined quality. The site manager needs to report regularly to client of the project. The site managers are responsible to make sure that all the activities are done based on the schedule and ensure that the project completion work is met with the actual performance. 6.3.4 Financial difficulties by contractor. A clear and well-defined method for selecting the contractors who are financially capable to run the projects without incurring delays is required. In this case the client should set financial capability criteria before awarding a project to the contractors, and those contractors should be hired which have sufficient liquid funds for accomplishing a project even if the payment process delayed by the client. And as well the client needs to take necessary actions for disbursing the work progress payment on time in order to avoid delay from occurring. The government of Afghanistan need to take initiatives to strengthen the construction industry in the country. The initiatives such as provision of loans with less interest rate to construction firms would enable them to overcome this challenge. ACCELERATING RECONSTRUCTION 53 6.3.5 Insufficient controlling and monitoring by consultant and client. The book of project management body of knowledge PMBOK by the Project Management Institute (2013) suggests that, due the to integrative nature of project management the project monitoring and controlling should be conducted parallel with the other process groups in project management. Monitoring and controlling of a project should be performed parallel with all phases of the project process such as project initiation phase, project planning, project execution and project closure phase. The following figure sheds light on the issue and clarifies the monitoring and controlling process of a project as the project monitoring and controlling is an interrelated task and it concerns to all the phases of the project and is performed parallel with project initiation, planning, execution, and closure phase. Source: (PMI, 2013) The continuous monitoring and controlling keeps the project team aware of the project strengths and weaknesses and enables the project members to identify the weakness points thus the team could pay more attention to remove the challenges. The client and consultant need to pay attention to this challenge and provide capacity building programs for the personnel to improve the knowledge of their staff for better performance in the projects. Project monitoring and controlling oversee the overall project activities and coordinates project phases from initiation to project closure and ensures that the work is performed according ACCELERATING RECONSTRUCTION 54 to the criteria and specifications. And if the project activities were not being performed based on the specification, then corrective and applicable actions would be taken to resolve the problem. 6.3.6 Non availability of experienced technical staff of contractor. One of the important concerns for selecting the contractor is whether the contractor has sufficient experienced technical staff who are capable of performing the duties. A mechanism should be set to study the contractor resources, whether the contractor has sufficient technical staff or not. If the mechanism is already exists, then it needs to be developed to obtain better results. On the other hand, the contractors need to prepare their organization with a strategically planning scheme, so they could train and equip their personnel with a modern technology and knowledge to perform better in the projects. So capacity building programs are needed to improve the performance of the project staff to deliver better services to the projects. 6.3.7 Late in reviewing and approving design documents by client. The client has to accelerate evaluation and approval of the design documents in order to avoid delay. For this purpose, qualified personnel are required to undertake this process and usually the client hires personnel including a project manager or design engineer for reviewing and approving the design documents with the coordination and approval of the client based on the planning and survey phases. In addition, the client has to consider hiring well-qualified personnel for their projects in order to speed up the required tasks and avoid delay in the project. The government should build a transparent and effective system to monitor and evaluate the projects from the beginning to the end, and as well the government need to take necessary action for the development of the logical project management. If the client of the project lacks the professionals for the design documents approval, then employing professionals in the project is very important; it could prevent projects from the different threats. ACCELERATING RECONSTRUCTION 55 6.3.8 Lack of communication and coordination between the parties. According to PMI, 2013; communication is one of the major reasons for failure or success of a project. Proper communication is required between all project members and stakeholders. Communication is a doorway for better performance in the project. Communication improves the relationship between project members and stakeholders and creates trust among them. For better communication the project manager should identify different communication techniques, the kind of information they need and what kind of information the other stakeholders would require. And the personality they need for interacting effectively with the other stakeholders. Good communication is the way for effective coordination between all project parties. Additionally, delay could be reduced by joint efforts of the project stakeholders. Therefore, the client has to build a system for smooth and easy communication between the project members and stakeholders (Client, Consultant and Contractor). Good internal and external communication is necessary for managing projects effectively. Internal communication between the project members and external communication between the project stakeholders. Good communication ensures a smooth way for information sharing among the project stakeholders. A project manager needs to have a good communication with all the personnel involved in the project as well as the project stakeholders, unless the project manager decides to do everything himself. Communication is a tool that the project manager communicates his ideas, plans and instructions to the personnel. Communication could be formal and informal. Formal communication is required in the case of sharing technical information with the project stakeholders. Lester (2014) recommends the informal communication as the most effective way of interaction between the project team. Also communication plan is necessary for project managers to keep a project on task. On the other hand, project communication plan sets a standard for how and when communication takes place. Setting a standard such as meetings, memos, mails and phone calls are required for communication. Weekly meeting with project staff will keep them updated of the project. Good communication among the project members will enable them to be productive, so they would be equipped with the necessary information and they keep working rather then stopping and seeking information they miss. Communication will keep all the project stake holders informed of the project activities and they would be updated of the necessary ACCELERATING RECONSTRUCTION 56 information. If some stakeholder is not informed of the project, there is possibility that the project would face risk of delay. 6.3.9 Delay in delivery of materials to site by contractor. Contractors need to improve the capacity of their personnel in order to perform the activities effectively and efficiently so that the project would not face any challenge. Proper planning and scheduling of the project from the beginning to the end is needed. Also work to match and track the activities and resources. Lester (2014) discusses that in order to insure that all the equipment and required materials are delivered at the correct location, a tracking system is needed to be informed about the location of materials. So tracing technique is necessary for the transport of materials to the site. In the case of overseas purchasing, the contractor needs to ensure that there is no shipping, landing, or customs problems. Therefore, contractors should be required to have a strategic plan and applicable routes for delivery of material to the site at the very early stages of implementation. The client as the owner of the project needs to properly monitor and control the activities of the contractors in the case of delivery of the materials to the site. Also the contractor needs to communicate the applicable delivery routs to the project stakeholders, so if the contractor faces challenges, the other stakeholders could find appropriate way to shift the materials to the site. 6.3.10 Inadequate contractor experience. An effective method of selecting contractors is required in order to evaluate the companies before awarding a project. Criteria should be set to scrutinize the experience of the contactors properly to ensure that the contractors have enough and required experience and qualified personnel for undertaking the project. The success of a project depends on the capacity and experience of a contractor. The personnel involved in a project should have enough capability and proficiency to accomplish the duties effectively and efficiently towards achieving the goals of the organization. ACCELERATING RECONSTRUCTION 57 As mainly domestic construction industry emerged after the collapse of Taliban regime in 2001with fewer resources and less knowledge of construction works including scheduling and quality management so after taking the projects the contractors were unable to complete the projects at the designated time and project caused delay. The delays were caused due to different factors including underestimation of time, lack of knowledge of project scheduling, and improper allocation of resources to the project activities. The government of Afghanistan should design a committee to evaluate all the construction firms including their resources, capacity, financial capability, performance quality based on criteria which has been formulated by the committee members. Then if the construction company succeeded in fulfilling all the requirements, then a certificate would be awarded to construction firms and thus enable them to undertake construction projects in Afghanistan. The case with The formation of the committee members, the project management professionals and academics would be effective towards the selection of the proper firms for the certification purpose. 6.3.11 Political influences and warlords’ intervention. The government has to take necessary steps to minimize the influence and intervention of political figures and warlords from interfering in the activities of the projects. However, it would be difficult for a single organization to resolve this issue, but all related government institutions need to cooperate and coordinate with each other for eradicating the influences of the warlords and political leaders. Also, the government has to formulate an initiative to minimize the political leaders power and local commanders’ authority to impact on the projects activities. In 2001 after the collapse of Taliban regime, the people hoped that the warlords will go behind bars for what they have committed in 19th century in Afghanistan. But warlords while they may have thousands of armed men at their command are much more powerful than expected, some of them turned out to be parliament members though democratic election, and some has been appointed as provincial governors, so most of them were appointed as the high ranking officials in the government of Afghanistan in order to keep the security stable in the region where they have influence. 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Newtown Square, Pennsylvania: Project Management Institute, Inc. 20. Project Management for Development Organizations (2016). Project quality management. Retrieved May 14, 2016 from http://www.pm4dev.com/resources/docman/doc_download/5-project-quality-management.html 21. Sadeqi, H. (2014). The main challenges of development projects in Afghanistan. Retrieved August 18, 2015 from http://www.dailyafghanistan.com/remark_detail.php?post_id=129814 22. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2009). Actions needed to resolve construction delays at the counter-narcotics justice center. SIGAR Audit-09-4. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/inspections/SIGAR-15-70-IP.pdf ACCELERATING RECONSTRUCTION 23. 62 Special Inspector General for Afghanistan Reconstruction (SIGAR). (2010a). ANP Compound at Kandahar Generally Met Contract Terms but Has Project Planning, Oversight, and Sustainability Issues. SIGAR Audit-10-12. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/audits/2010-07-21audit-10-12.pdf 24. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2010b). ANP District Headquarters Facilities in Helmand and Kandahar Provinces Have Significant Construction Deficiencies Due to Lack of Oversight and Poor Contractor Performance. SIGAR Audit-11-3. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/audits/2010-10-27audit-1103.pdf 25. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2011a). Better Planning and Oversight Could Have Reduced Construction Delays and Costs at the Kabul Military Training Center. SIGAR Audit-12-2. Retrieved May 12, 2016, from https://www.hsdl.org/?view&did=756476 26. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2011b). Afghan National Security University Has Experienced Cost Growth and Schedule Delays, and Contract Administration Needs Improvement. SIGAR Audit-12-3. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/audits/2011-10-26audit-12-03.pdf 27. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2012). Fiscal Year 2011 Afghanistan Infrastructure Fund Projects Are behind Schedule and Lack Adequate Sustainment Plans. SIGAR Audit-12-12. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/audits/2012-07-30audit-12-12Revised.pdf 28. Special Inspector General for Afghanistan Reconstruction (SIGAR). (2013). Knduz Afghan National Police Provincial Headquarters: After Construction Delays and Cost Increases, Concerns Remain About the Facilities Usability and Sustainability. SIGAR Inspection-13-4. Retrieved May 12, 2016, from https://www.sigar.mil/pdf/inspections/2013-01-24-inspection-1304.pdf ACCELERATING RECONSTRUCTION 29. 63 Special Inspector General for Afghanistan Reconstruction (SIGAR). (2010c). Contract Delays Led to Cost Overruns for the Kabul Power Plant and Sustainability Remains a Key Challenge. SIGAR Audit-10-6. Retrieved May 12, 2016 from https://www.sigar.mil/pdf/audits/2010-01-20audit-10-06.pdf 30. The World Bank. (2012). Restructuring Paper on a Proposed Project Restructuring of Afghanistan Kabul Aybak Mazar e Sharif Power Project. Retrieved May 14, 2016 from http://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/18/000333037_2012 0618015011/Rendered/PDF/700100v10PJPR000Paper0June011002012.pdf 31. Wei, K. S. (2010). Causes, effects and methods of minimizing delays in construction projects. Unpublished Bachelor Degree Project Thesis, Universiti Teknologi Malaysia. Retrieved May 10, 2016 from http://www.efka.utm.my/thesis/images/3psm/2010/jsb3/kangsikweiaa060080d10ttt.pdf ACCELERATING RECONSTRUCTION 64 Appendices Questionnaire about Project delay Dear Sir/ Madam, My name is Ahmad Khalid Afridi and I am master’s student of Yamaguchi University of Japan; moreover, I am writing my thesis about the Projects Delay, which is a very frequent phenomenon and is almost associated with nearly all constructing projects in Afghanistan. This research work attempts to identify, investigate, and rank factors perceived to affect delays in the Afghanistan’s construction projects with respect to their relative importance Index. Through literature review, I have formulated this questionnaire with 30 Factors (that causes projects delay) and have high potential of occurrence in Afghanistan. Kindly indicate by ticking a column the relative importance of each of the causes of projects delay in this questionnaire. Project Delay, Time is one of the most important parameters of a project, so if a project is not completed on time, delay occurs. For example, a one-year project is completed in one and half year, in this case 6 months’ delays occurred. Your personal information such as Name, Occupation, Organization, and Contact info is needed to keep records of my research and would be kept confidential and will not be used for any other purpose. Name: ____________________________________________________________ Occupation: ______________________________________________________ Organization: ____________________________________________________ Email add: ________________________________________________________ ACCELERATING RECONSTRUCTION 65 Please tick the causes of Projects delay in accordance to it is importance from the following: No 1 2 Causes of project delay Delay in progress payments by client Ineffective planning and scheduling of project by contractor 3 Financial difficulties by contractor 4 Slowness in decision making process by client 5 Late in reviewing and approving design documents by client 6 Lack of communication and coordination between the parties 7 8 9 10 11 Poor site management and supervision of contractors by consultant and client Rework due to the mistakes during construction stages Problems with subcontractors Inadequate contractor experience Low productivity level of labors 12 Shortage of materials in the market 13 Low motivation and morale of labor 14 Scope changes by client during construction 15 16 17 Insufficient controlling and monitoring by consultant and client Contractors with political clout Long waiting time for approval Very Important Important Less Important Not Important ACCELERATING RECONSTRUCTION 66 of tests and inspection by consultant 18 Political influences and warlord intervention 19 Non-availability of experienced technical staff of contractor 20 21 22 23 24 25 26 27 28 Unrealistic contract duration Delay in delivery of materials to site Controlling subcontractors by main contractor in the execution of work Changes in materials types and specifications during construction Excessive bureaucracy in project owner operation Materials price changes due to the Currency fluctuation Late procurement of materials Lack of incentives for contractor to finish ahead of schedule Unreliable suppliers 29 Impractical allocation of resources 30 Unclear and inadequate details in drawings Thank you for taking the time to fill out this survey, it will help me to analyze top 10 factors that causes projects delay in Afghanistan and finally to recommend the appropriate solutions to avoid/minimize the causes. Sincerely Yours Ahmad Khalid Afridi Master’s Student Department of Economics Yamaguchi University Yamaguchi, Japan