DELAYS AND THE
CONSEQUENCES AND
TIME MANAGEMENT
Luise Lorenz
Christina Mohr
DELAYS
Completion of a project in time and within budget is a
common goal of contractor and client
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Delays  failure of budget  disputes (time =
money)
Delayed completion of work compared to the
planned/contract schedule (= loss of time)

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It’s possible to make up time by working faster or
rearranging the work sequence
Contractor related delays are the most significant
ones
GENERAL REASONS FOR DELAYS
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Delays can be caused by one or more of the
following agencies:
1. Client and his team-mates
2. Contractor and his team-mates
3. Nature (i.e. earthquakes)
4. Due to a third party (i.e. strike)
SOME REASONS FOR DELAYS
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faults in documents, designs or decisions
insufficient number of equipment
inaccurate cost or time estimation
poor site management and supervision
shortage of construction materials
incompetent project team
contractor’s/client’s financial difficulties
etc.
TYPES OF DELAY
The following types of delay help to determine the
impact of a delay on the project.
1. critical or non-critical
2. excusable or non-excusable
3. concurrent or non-concurrent
4. compensable or non-compensable
1. CRITICAL or NON-CRITICAL
Critical delays:
 the delay interferes with the total time frame
Non-critical delays:
 the delay does not interfere with the total time
frame
2. EXCUSABLE or NON-EXCUSABLE
Excusable delays
delay caused by the client, e.g. the owner denies access
to the site
 delay caused by strike, fire, unusual weather etc.

Non-excusable delays:

delay caused by the sub-/contractor, e.g. not enough
manpower on site to complete the job in time
3. CONCURRENT
Concurrent delays:
 two or more delay events occur at the same time
or overlap to some degree
 at least one of the delays has to be caused by
the contractor and one by the client
Non-concurrent delays:
 delays do not overlap
4. COMPENSABLE
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the client’s failure to coordinate several prime
contractors
the client’s failure to provide adequate access to
the project
change orders placed by the client
any interference by the client
delays caused by a third party under the control of
the client
CONSEQUENCES
The claim depends on the cause of the delay, which
must be identified. Therefore the responsibility is
being clarified.
Possible Claims:
 Time extensions (for the contractor)
 Financial compensations (for client and contractor)
FOLLOW-UP
For the client:
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Delay in use of project
Capital is blocked
Escalation in subsequent investment
For the contractor:
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Delay in getting profit
Idle of resources (machines, workers etc.)
Productivity loss due to uncontracted work period
MINIMIZING DELAYS
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Identifying the cause that led to the delay
Providing enough financial resources
Competent project management
Resource availability
Frequent progress meetings
Choosing the right (experienced) consultants,
suppliers and contractors
Accurate cost estimation
etc.
TIME MANAGEMENT
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Part of the construction budgeting process
Project management team determines the amount of
time which is needed for the project
Determining the amount of man hours and
employees
Major role for cost estimation
Thank you!
References
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Singh, P. (n.d.). Delay in construction project and its consequences. Retrieved
from http://www.scribd.com/doc/6106511/Delay-in-Construction-Projectsand-Its-Consequences
Ibbnu Abbas, M. (2006). Causes and effect of delays in aceh construction
industry. Retrieved from http://eprints.utm.my/5304/
Cooke, B., & Williams, P. Construction planning, programming and control.
Wiley-Blackwell.