A timely completion of building undertaking is a major criterion of undertaking success. Failure to finish the undertaking on clip will finally consequences in hold. The demand to command the causes of holds during the building procedure comes out when the figure of hold undertaking has been increase from clip to clip. Hence, it is indispensable to place the causes of this job from the early phase of building undertaking. The aims of this survey are to analyze the causes of hold in term of frequence happening and badness consequence, and eventually to place the method vacant to minimise building undertaking delays. A interview method was used to place the important causes of hold in order to avoid or minimise their impact on building undertaking. The position of contractors, advisers and client has been analyzed and ranked by a qualitative analysis. A comparing of frequence happening and badness consequence on the hold causes was done between Ghousia Builders and Sabah Contractors. The survey established that there were unlike consequences on the form of important holds causes in both organisations. Respondents in Ghousia Builders believe that ‘contractor ‘s fiscal job ‘ , ‘poor subcontractor public presentation ‘ and ‘shortage of work force ‘ are the major causes of hold in building undertaking. Meanwhile, ‘poor site direction and supervising ‘ , ‘slowness of client determination doing ‘ and ‘slow payment of completed work ‘ are the major concern from the respondents ‘ point of position in Sabah. Finally, appropriate undertaking direction patterns are therefore identified to control the important causes of holds in building undertakings.
1.0 Introduction
Aibinu and Jagboro ( 2002 ) defined hold as a state of affairs where a contractor and the undertaking proprietor jointly or independently contribute to the non-completion of the undertaking within the original or the stipulated or agreed contract period. Besides that, Stump degree Fahrenheit ( 2000 ) stated that hold is an act or event that extends the clip required to execute the undertakings under a contract. Delay is really a delay of clip from the original estimated completion clip which might be caused by contractor, proprietor or adviser every bit good as by external factors. Construction hold is one of the most common, dearly-won, complex and hazardous jobs encountered in building undertakings ( Alaghbari et al. , 2005 ) . Construction hold occurs all over the universe and many surveies have been carried out to measure the causes of hold in building. Sambasivan and Yau ( 2007 ) stated that about 17.3 % of authorities contract undertakings in Malaysia were considered sick, which means they are delayed by more than three months or abandoned wholly. Besides that, Assaf and Al-Hejji ( 2006 ) from Saudi Arabia studied the causes of hold in big building undertakings and discovered that merely 30 % of building undertakings were completed within the scheduled completion day of the months and the mean clip overproduction was between 10 % and 30 % .
2.0 Factors Lending to Delay
There are 4 factors of hold categorized in wide classs, viz. contractor- related factors, consultant-related factors, client-related factors and external factors. This survey will merely concentrate on contractor-related factors and therefore, seven most important variables that are caused by the contractor have been identified. These are contractor.s fiscal troubles, stuff deficits, labor deficits, hapless site direction, equipment and tool deficit, coordination jobs every bit good as building errors and faulty plants. These important variables are discussed below.
2.1 ContractorsO?? Financial Difficulties
Harmonizing to Zagorsky ( 2007 ) , fiscal trouble is defined as acquiring into a state of affairs where a respondent ‘s recognition is adversely impacted, such as non paying measures. Contractor.s fiscal troubles are defined as the contractor non holding sufficient financess to transport out the building works. This includes payment for the stuffs, laborers wages and equipment to be used for the building work.
Thornton ( 2007 ) , in his study, found that slow aggregation, low net income borders and deficient capital or inordinate debt are the 3 major causes of fiscal troubles among contractors. Slow aggregations topped the list in the old ages 2007 and 2005, in which the contractor received late payment from the client. This is supported by Arshi and Sameh ( 2005 ) , Majid and McCaffer ( 1998 ) , Arditi et Al. ( 1985 ) , Al-Khalil and Al-Ghafly ( 1999 ) , Frimpong et Al. ( 2003 ) , Assaf and Al-Hejji ( 2006 ) , Sambasivan and Yau ( 2007 ) and Mansfield et Al. ( 1994 ) who found that hold in payment from the client would finally do fiscal troubles to the contractor. Therefore, most of the building works can non be carried out due to these fiscal troubles.
Insufficient net income is the 2nd highest factor lending to the fiscal troubles of the contractor.
Coulter and Kelley ( 1992 ) besides agree with this and they further explained that deficient net income can non be controlled because it is due to bad economic conditions. Coulter and Kelley ( 1992 ) and Thornton ( 2007 ) both postulated that deficient capital is one of the major causes of fiscal troubles among contractors. Poor fiscal control by the contractor can take to deficient capital ( Liu, 2010 ) . Hence, the contractor will hold inordinate debt which causes them to confront fiscal troubles as they can non pay back the debt.
2.2 Material Deficit
Harmonizing to Majid and McCaffer ( 1998 ) , material deficits are due to hapless stuffs planning, inefficient communicating, undependable providers and late bringing. Mochal ( 2003 ) stated that hapless planning is mistake figure one in undertaking direction. This is reflected in the scenario in which hapless stuffs be aftering from the contractor could take to material deficit because the stuffs needed for building may non be available within a certain clip frame. This is due to errors in the planning phase associating to when the stuffs are expected to be used in the building stage. Hence, it will do a hold to the undertaking.
Inefficient communicating is another factor that will take to material deficit. Dunkelberger ( 2009 ) , in her articles on.How to Stop Losing Money on Inefficient Communication. stressed that the success or failure of a concern is straight related to the ability to pass on. Inefficient communicating is, hence, a important job because misinterpretations between contractors and providers will take to either early or late bringing of stuffs to the site. Earlier bringing might impact the quality of the stuffs while on the other manus, late bringing will prorogue the work to be carried out on the building site. This will significantly detain the work and therefore, detain the undertaking.
Dada et Al. ( 2003, 2007 ) defined O? & A ; deg ; undependable supplierO?± as a factor whereby the measure of stuff delivered by the provider is less than the measure ordered. This clearly shows that undependable providers will take to material deficit because the measure of stuffs ordered are non delivered to site. Hence, it will take to material deficit and detain the work of the contractor.
Harmonizing to Ruiz-Torres and Farzad ( 2006 ) , supplier failure to present on clip can interrupt operations and detain the completion of a undertaking. In the survey conducted by Van der Rhee et Al. ( 2009 ) , they found that bringing by provider is one of the most important factors in taking provider and it is really of import for the provider to present stuffs on clip. They showed that late bringing
by the provider is an of import factor because it will straight impact the completion clip of a undertaking.
This is farther supported by Aibinu and Odeyinka ( 2006 ) who conducted a survey of causes of hold in Nigerian building undertakings in which they found that late bringing of stuffs is the chief cause of hold. In add-on, a survey of causes and effects of holds in the Pakistann building industry which had 150 respondents from clients, advisers and contractors ( Sambasivan and Yau, 2007 ) found that the deficit of stuff is graded figure six. In Turkey, Arditi et Al. ( 1985 ) ranked material deficits as the figure one factor for holds in building undertakings. They besides found that cement, which is one of the most of import stuffs to be used in the building industry, can non be kept for long periods of clip. Therefore, this may take to deficits of cement. From all the surveies mentioned above, it shows material deficit is a really important factor that will lend to detain in building undertakings.
2.3 Labour Deficit
Bruce and Dulipovici ( 2001 ) defined labour deficits in simple footings as the trouble in happening the right people to make full the available occupation. Labour deficit is a job faced by many states all over the universe. This is shown by the studies by Wang ( 2010 ) , Anonymous ( 2010 ) and Hanim ( 2010 ) . These three newspaper studies indicated the labor deficits in three different topographic points in the universe viz. Beijing, Dong Nai and Pakistan severally.
There are several causes of labour deficits. As stated by Trendle ( 2008 ) , a deficit of skilled labor can ensue from an addition in the demand for labor. This is due to the addition in demand for the goods or services provided. In the building industry context, the purchasing power of the consumer additions and this will take to higher quality edifices being produced to run into increasing demands. Therefore, more labors are required to bring forth high quality work.
The 2nd cause of labour deficit is the cost of foreign labor. Hanim ( 2010 ) claimed that higher enlisting costs of foreign labors due to payment for the levy, medical medical examination, security bond and medical costs by the employers lead to labor deficits in Pakistan. In the Pakistann building industry, unskilled foreign laborers are widely used because the monetary values of foreign laborers are much cheaper compared to local laborers. Hence, the increasing cost to engage foreign labor will ensue in labor deficits in the building industry and at the same clip, contribute to holds in building undertakings in Pakistan.
Wang ( 2010 ) and Anonymous ( 2010 ) postulated that the planetary economic crisis is another ground for the happening of labour deficits. Both reported that laborers chose to shack in topographic points with low life costs because their wages are deficient to enable them to shack in big metropoliss with higher life costs.
Sweis et Al. ( 2008 ) besides indicated that deficit of work force including skilled, semi-skilled and unskilled labor causes holds in building undertakings. This is farther supported by Sambasivan and Yau ( 2007 ) who conducted a survey in Pakistan and found out that labour supply is ranked figure seven out of 20 eight causes of building hold. It shows that labour supply is the major cause of hold due to the building industry in Pakistan doing usage of foreign workers, some of which are working illicitly in Pakistan. These illegal workers are often detained by Pakistann in-migration functionaries and deported, doing farther deficits of labor in the building industry.
2.4 Poor Site Management
Effective and efficient site direction by contractors is really of import to guarantee undertakings are completed on clip. Poor coordination contributes to detain from estimated completion clip. Poor site direction may occurr when contractors do non hold adequate experience and suffer from a deficiency of cognition in pull offing the undertaking squad ( Kadir et al. , 2005 ) . A undertaking director is the leader in a building undertaking in the sense that he is required to pull off all the plants on site from supervising advancement of building plants to pull offing all the administrative work in the undertaking. It is of extreme importance for the undertaking director to pull off the work and undertaking squads efficaciously. Hence, hapless site direction from the undertaking director will impact the whole squad and besides the advancement of plants, ensuing in the eventual result of undertaking hold. This position is supported by surveies conducted by Augustine and Mangvwat ( 2001 ) , Arshi and Sameh ( 2006 ) , Arditi et Al. ( 1985 ) , Faridi and El- Sayegh ( 2006 ) , Toor and Ogunlana ( 2008 ) , Yang and Ou ( 2008 ) , Sweis et Al. ( 2008 ) , Aibinu and Odenyika ( 2006 ) and Ahmed et Al. ( 2003 ) who concluded that hapless site direction is one of the factors that contribute to detain in building undertakings.
2.5 Equipment and Tool Shortage
Chang et Al. ( 1991 ) highlighted that the input of tools and equipment used in the building site are either provided through direct investing by the contractor or acquired through leasing. Some contractors may get tools and equipment utilizing both methods. The contractor has to be after the use
of equipment harmonizing to the building work to be carried out during a peculiar period of clip because equipment obtained by renting has to be returned to the provider by the due day of the month at the terminal of the lease period. Joyce ( 2006 ) added that the building of high rise edifices is increasing and, as a consequence, the usage of Cranes is besides increasing. However, this is lending to equipment deficit as the Crane providers do non hold a sufficient figure of Cranes to be leased out in order to run into this increasing demand. Hence, it is less likely that the contractor would be able to widen the lease period of Cranes if it was necessary to make so. This shows that failures in efficaciously be aftering the use of equipment will do equipment and tool deficits.
Wendle ( 2008 ) studies that the building industry in Russia faces equipment deficits because larceny is prevailing on building sites whereby heavy trucks and equipment are often stolen. He farther study that, during a three month period, 40 heavy trucks, 13 Cranes, 1 cement sociable and assorted other equipment had been stolen from building sites in Moscow. Therefore, it appears that larcenies may be one of the factors in the building industry confronting tool and equipment deficits.
Shree ( 2007 ) stated that the cost of leasing building equipment has risen by around 30 % to 40 % in merely a few old ages. The increasing cost of equipment affects the contractor greatly as they will confront fiscal trouble in leasing that equipment. Therefore, the contractor will hold to endure from tools and equipment deficit which accordingly, contributes to detain in the undertaking.
2.6 Construction Mistakes and Defective Works
Gerskup ( 2010 ) claimed that hapless craft, sloppiness and cutoffs are the three cardinal factors that will lend to faulty plants. Zanis ( 2010 ) besides agrees that hapless craft is the chief subscriber to defective plants. She reported that the quality of schools constructed in Zambia are hapless due to hapless craft by the contractor. In add-on, Kedikilwe ( 2009 ) , in another instance, mentioned that hapless craft is the chief factor that produces dysfunctional solar panels in edifices.
The usage of hapless quality stuffs is one illustration of hapless craft. In Turkey, several of the edifice collapses in the Bingol.Karliova temblors were due to the usage of improper sum in the concrete during building ( Binici, 2007 ) . In the same survey, Binici, ( 2007 ) found that the support bars used had corroded, taking to the strength of the concrete being greatly reduced. Poor craft which leads to defective plants has to be rectified by the contractor but in order to make that, the undertaking will necessitate delay of clip.
Careless errors such as taking wrong measurings from programs and specifications will take to building errors ( Thomas, 1991 ) . Additionally, wrong units and steps during building will bring forth faulty work. As a consequence, the contractors need to retrace those building errors which consequences in taking extra clip to finish the undertaking.
A cutoff can be defined as the way that takes lesser clip to finish compared to the usual way. Thomas ( 1991 ) emphasized that contractors normally use cutoffs to finish the building work due to clip and cost restraints. Shortcuts will, nevertheless, finally produce faulty plants which need to be rectified subsequently in the completion phase. This will later detain the undertaking.
2.7 Coordination Problems
In a building undertaking, there are many parties involved such as contractor, adviser, sub-contractor and client. Often, it may be hard for these assorted separate parties to organize good in order to finish the undertaking. In one survey conducted by Assaf et Al. ( 1995 ) it was found that trouble in coordination between the parties is one of the factors that contributes to detain. In add-on, Majid and McCaffer ( 1998 ) besides agreed that coordination jobs will lend to detain.
Ali et Al. ( 2008 ) and Kadir et Al. ( 2005 ) stated that deficiency of coordination between contractors and subcontractors will take to detain, for illustration in the state of affairs that freshly revised building drawings of a undertaking may be issued subsequently by the contractors to the subcontractors. This leads to building errors and the work necessitating to be redone. Reconstruction work takes extra clip, hence impacting upon the completion clip of the undertaking.
Harmonizing to Sambasivan and Yau ( 2007 ) , most of the unskilled laborers used in the Pakistann building industry are foreign laborers. These foreign laborers have small formal instruction ( Santoso et al. , 2003 ) . Therefore, coordination is really of import to steer and teach these laborers to execute their work right. Without coordination, the undertaking will be delayed due to rectifying faulty plants and low productiveness of laborers.
3.0 Effectss of Delay
Many old surveies have been carried out sing the effects of hold. Surveies from Aibinu and Jagboro ( 2002 ) , Sambasivan and Yau ( 2007 ) ; and Sun and Meng ( 2009 ) found many effects of hold in building undertakings. Out of all the effects of hold, six most common effects of hold were identified
and these are discussed below.
3.1 Cost Overrun
Cost overproduction is a state of affairs where the sum of money used is greater than the initial undertaking cost or estimated cost ( Singh, 2009 ) . Aibinu and Jagboro ( 2002 ) found that cost overproduction is the most frequent consequence of hold in Nigeria. This is farther supported by Sambasivan and Yau ( 2007 ) who found that cost overproduction was ranked 2nd in their survey of hold effects in the Pakistann building industry. This is due to overtime costs in order to go on the building work and any compensation required as a consequence of the hold ( Hanna et al. , 2004 ) . Besides that, extra money is required for rework if any building errors have occured. Harmonizing to Sun and Meng ( 2009 ) , the cost of rework can be every bit high as 10-15 % of the estimated undertaking cost. This shows that cost overproduction is one of the most frequent effects of hold in the building industry.
3.2 Extension of Time ( EOT )
Extension of clip is an event where excess clip is requested in order to finish the undertaking ( USLegal, 2010 ) . Harmonizing to Odeh and Battaineh ( 2002 ) , client-related hold is the major factor lending to holds. Therefore, contractors can claim suited EOT if the cause of hold is beyond the control of the contractor and is brought about by client-related factors ( Othman et al. , 2006 ) . This is mentioned by Williams ( 2003 ) in his survey on measuring Extension of Time holds on major undertakings. Normally contractors can claim EOT due to client or proprietor related holds in building undertakings.
3.3 Late Payment
Harmonizing to Nichol ( 2008 ) , late payment is a common job particularly during times of economic crisis. This is supported by Still ( 2000 ) who found that late payment is a major job in Western states. In the survey by Odeh and Battaineh ( 2002 ) , late payment was the 2nd highest factor lending to detain, ranked by advisers. Late payment may happen during the building procedure and it is likely to be more terrible during hold periods. The proprietor or client may utilize delay of the undertaking as a ground to detain the payment to the contractor.
3.4 Rescheduling
Harmonizing to Vieira et Al. ( 2003 ) , rescheduling is the alteration of original agenda of clip in order to react to break and jobs which have occurred. In the building industry, agendas may be updated in order to supervise the clip and work in building undertakings ( Liu and Shih, 2009 ) . The
importance of agenda updates are as mentioned by Liu and Shih ( 2009 ) : ( 1 ) compare the original agenda with the existent advancement of the undertaking ; ( 2 ) place all delayed activities ; ( 3 ) identify who or what is responsible for holds ; and ( 4 ) prognosis and modify projected work advancement based on existent advancement. Based on the agenda update, delayed activities can be identified and normally, rescheduling is required due to the delayed work. Therefore, rescheduling is one of the effects of hold in building undertakings.
3.5 Affect Company Reputation
Harmonizing to Djordjevic and Djukic ( 2008 ) , company repute is one of the most of import intangible assets. Ismail et Al. ( 2006 ) support this statement and add that repute is built from the overall public presentation of the company. The repute of a company is really of import because an adversely affected repute can go a concern menace ( Murray, 2003 ) . Strategic planning, corporate administration and corporate codifications of behavior are the top three factors that affect company repute harmonizing to the survey conducted by Ismail et Al. ( 2006 ) . Therefore, hold in building undertakings will impact the company repute indirectly.
3.6 Lost Productivity and Efficiency
Harmonizing to McDonald and Zack ( 2004 ) , productiveness is the measuring of labour efficiency to finish the needed work. Lost productiveness and efficiency of the laborers ever occurrs when holds happen ( Bramble and Callahan, 2000 ) . This occurs due to acceleration of the agenda and besides the force per unit area to finish the work. In add-on, holds caused by building errors will necessitate rework and this leads to a important addition in the sum of work the laborers are required to finish. This straight reduces the productiveness and efficiency of the working laborers.
