The Importance of New Technology For Delay Mitigation

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American Journal of Civil Engineering and Architecture, 2015, Vol. 3, No.

1, 15-20
Available online at http://pubs.sciepub.com/ajcea/3/1/3
© Science and Education Publishing
DOI:10.12691/ajcea-3-1-3

The Importance of New Technology for Delay Mitigation


in Construction Projects
Samad M E Sepasgozar1, Mohamad Ahmadzade Razkenari2, Khalegh Barati2,*
1
Tarbiat Modares University, Tehran, Iran
2
Sharif University of Technology, Tehran, Iran
*Corresponding author: [email protected]

Received October 13, 2014; Revised December 17, 2014; Accepted February 12, 2015
Abstract Construction technology has a great potential to improve productivity and decrease project duration.
Delay happens in many construction projects, although the priority of delay causes is different in various countries
due to environmental effects. Delays can lead to considerable negative effects such as lawsuits between owners and
contractors, loss of productivity and revenue, and contract termination. This paper presents key sources of
construction projects delay in Iran, following a review of publications related to delay. In addition, the paper presents
the relationship between new technology and time overrun in those projects. One of the main causes of delay in
many projects is that they use an old generation of construction technologies; however, the role of technology
adoption in delay is ignored. In order to collect first-hand data to explore the delay sources, experienced project
managers of the residential and industrial projects were recruited. Experienced professionals from twenty six
companies participated in this study. Seventy-three delay causes were identified in the sample projects, in which 25
factors were related to the new technology restriction. The result of the study assists policy makers and practitioners
to understand the actual factors causing delay. The value of the study is that it investigates three main issues such as
frequency of occurrence, degree of severity, and importance of each factor. Different than other studies, the paper
focuses on technology attributes that may affect the project scheduling and time.
Keywords: new technology, contractors, technology restriction, delay, owner, project management
Cite This Article: Samad M E Sepasgozar, Mohamad Ahmadzade Razkenari, and Khalegh Barati, “The
Importance of New Technology for Delay Mitigation in Construction Projects.” American Journal of Civil
Engineering and Architecture, vol. 3, no. 1 (2015): 15-20. doi: 10.12691/ajcea-3-1-3.

industry is a global phenomenon (Sambasivan and Soon,


2007; Kaliba et al., 2009). Stumpf (2000) defines delay as
1. Introduction an act or event extending the time required to perform the
tasks under a contract. It often appears as additional days
As the construction industry is growing, construction of work or as a delayed start or finish of an activity. Even
projects are also expanding in size and complexity. In this with today’s advanced technology, and professional
term, delay has still remained as project managers’ management systems, construction projects continue to
concern. Identifying the main causes of delays in large suffer delays and project completion dates still get pushed
construction projects is very difficult and often initiates back (Stumpf, 2000). The question raised is how new
disputes about responsibility for delay. This paper technologies can affect the project time and prevent the
presents the main causes of delay in the industrial project overruns.
construction projects in Iran and recommends that how This research is motivated by an important problem
technology can reduce the risk of time overrun in the called delay that causes cost overrun and has other
projects. impacts on the construction projects. Project managers
Time overrun is a significant problem in the experience significant delays in many countries around the
construction industry (Al-Khalil and Al-Ghafly, 1999b; world. In 2000s, the number of claims submitted to the
Shehu et al., 2014). Delays can lead to some negative American Arbitration Association (AAA) reached almost
effects such as lawsuits between project parties, increased 25% of the 1.7 million claims submitted over the past 74
costs, loss of productivity and revenue, and in some cases years (Kassab et al., 2006). In the United Kingdom (U.K.),
contract termination. Delay and disruption to contractors’ a report by the National Audit Office, entitled modernizing
progress are some of major sources of claims and disputes construction, revealed that 70% of the projects undertaken
in the construction industry (Braimah and Ndekugri, by government departments and agencies were delivered
2008). According to Bordoli and Baldwin (1998) and the late. In addition, a recent research by Building Cost
World Bank (1990), the time overrun for 1627 projects Information Service (BCIS) found that nearly 40% of all
completed worldwide varied between 50% and 80% from studied projects had to overrun the contract period
1974 and 1988. The problem of delays in the construction (Lowsley and Linnett, 2006). Another official report of the
16 American Journal of Civil Engineering and Architecture

infrastructure and project monitoring division of the $50 trillion were approximately 40% behind the project
ministry of statistics and program implementation in 2004 schedule in India (Iyer and Jha, 2006). They had a
shows that about 646 central sector projects costing about significant delay ranging from 1 to 252 months.

Table 1. Examples of Delays in Construction Projects


Examples of major causes Country Researcher
• Unclear and inadequate details in drawings
• Delay in approving shop drawings
• Consultant inadequate experience Egypt Marzouk and El-Rasas (2014)
• Mistakes in design documents
• Quality control and procedures
• Poor understanding of scope of work during tendering
• Difficulties in project financing
• Poor site management and supervision
• Problems with subcontractors
• Inappropriate construction methods implemented Oman Ruqaishi and Bashir (2013)
• Inadequate planning and scheduling of project
• Rework due to errors during construction
• Inadequate experience of contractor
• Unfamiliarity with government regulations and laws
• Slow preparation of drawing approvals
• Inaccurate early planning of the project
UAE Farididi and El-Sayegh (2009)
• Slowness of owner decision making process
• Shortage and low productivity of manpower
• Inadequate resources
• Unforeseen ground conditions
• Exceptionally low bids
China Lo et al. (2006)
• Inexperienced contractors
• Poor site management and supervision
• Unrealistic contract duration
• Change in orders by owner
• Delay in progress payment
Saudi Arabia Assaf and Al-Hejji (2006)
• Ineffective planning and scheduling
• Difficulties in financing
• Poor design
• Change in orders/designs
• Inclement weather Jordan Al-Momani (2000)
• Unforeseen site conditions
• Late deliveries
• Cash flow problems/financial difficulties
Al-Ghafly (1995); Al-Khalil and Al-Ghafly
• Difficulties in obtaining permits Saudi Arabia
(1999a) ;Al-Khalil and Al-Ghafly (1999b)
• “Lowest bid wins” system
• Unforeseen ground conditions
• Poor site management and supervision
China Chan and Kumaraswamy (1996)
• Slow decision making by project teams
• Client-initiated variations
• Shortage of material
• Change in design Thailand Ogunlana et al. (1996)
• Liaison problems among contracting parties
• Slow preparation of drawings
• Delay in payments
Saudi Arabia Assaf et al. (1995)
• Change in designs/design errors
• Shortage of labor supply
• Increases in the scope of work
• Inclement weather Canada Semple et al. (1994)
• Restricted access
• Improper financial and payment arrangements
• Poor contract management
• Delay in procurement Nigeria M Dlakwa and F Culpin (1990)
• Inaccurate cost estimation
• Inflation
• Delay in payments by owner
Nigeria Okpala and Aniekwu (1988)
• Fluctuations in labour, materials and costs
• Shortage of resources
• Project financing difficulties
• Organizational deficiencies Turkey Arditi et al. (1985)
• Delay in designs
• Change orders
Many studies focused on delay in different projects. Razek et al., 2008); Nigeria (M Dlakwa and F Culpin,
The studies are mostly region-based and conducted in 1990; Aibinu and Odeyinka, 2006); Malaysia (Alaghbari
different countries, because it is related to the local issues. et al., 2007; Sambasivan and Soon, 2007); Hong Kong
For example, some of the published studies have (Chan and Kumaraswamy, 1997); Indonesia (Kaming et
investigated in different contexts such as: Egypt (Abd El- al., 1997); Jordan (Al-Momani, 2000; Odeh and Battaineh,
American Journal of Civil Engineering and Architecture 17

2002; Sweis et al., 2008; Sweis, 2013); Vietnam (Van 3. Causes of Delays
Thuyet et al., 2007; Le-Hoai et al., 2008); UAE (Faridi
and El-Sayegh, 2006; Ruqaishi and Bashir, 2013); Some causes and effects of delays in construction
Lebanon (Mezher and Tawil, 1998); Saudi Arabia (Al- projects can be country-specific. In this research, the
Khalil and Al-Ghafly, 1999b, 1999a; Assaf and Al-Hejji, major causes of delay will be identified and categorized as
2006; Al-Kharashi and Skitmore, 2009); Thailand (Toor the client-related, contractor-related, consultant-related,
and Ogunlana, 2008); Ghana (Fugar and Agyakwah-Baah, material-related, labor related, contract-related, contract
2010); Kuwait (Koushki et al., 2005). Most of these relationship-related and external factors. There are many
studies are conducted in developing countries, and applied reasons why delays occur. For example, construction
the same model in different contexts. Examples of major rework, poor organization, material shortage, equipment
causes are shown in Table 1. failure, change orders, act of God and so on. In addition,
Recent events in the Middle East region coupled with delays are often interconnected, making the situation even
restructuring of economies, the emergence of the World more complex (Alkass et al., 1996). Frimpong et al. (2003)
Trade Organization and the rising price of oil are expected found that 33 out of a total of 47 projects completed
to yield an unprecedented growth in construction activities. between 1970 and 1999 were delayed while 38 projects
Consequently, a huge number of large-scale projects are were overruns in Ghana. The research data indicated that
currently under construction. A major concern of the 75% of the projects exceeded the original project schedule
clients is the project delivery. This study intends to and cost whereas only 25% were completed within the
discuss delay causes from Iranian profession’s perspective. budget and on time. Al-Ghafly (1995) focused on public
The literature review shows that most Middle Eastern water and sewage projects and found sixty delay causes.
countries suffer from common causes of delay; however, He concluded that delay occurred frequently in medium
the rank and frequency of causes are different. The study and large size projects, and considered severe in small
also focuses on technological causes in order to projects. There are many important causes of delay related
understand the technology potentials in preventing delay. to owner involvement, contractor performance, and the
This study is a step forward to deep understanding of the early planning and design of the project. In this study
effect of construction technology in delay. The results of important causes are reported as: financial problems,
this study can be of immense help to the practitioners such changes in the design and scope, delay in making decisions
as clients, contractors and consultants and also and approvals by owner, difficulties in obtaining work
academicians by providing sources of delay, frequency of permit, and coordination and communication problems.
occurrence and degree of importance for delay causes. Noulmanee et al. (1999) investigated causes of delays
The paper briefly presents a research study as follow: in highway construction in Thailand, and concluded that
First, it briefly presents how the research study is delays can be caused by all parties involved in projects.
conducted. Second, key delay causes are investigated and However, they reported that main causes come from an
classified in different categories such as owner, contractors, inadequacy of sub-contractors, organization that lacks
and consultant. Third, the equations for calculating sufficient resources, incomplete and unclear drawings and
frequency index and severity index are presented. Then deficiencies between consultants and contractors. The
the result of the study is presented. Finally, the conclusion, study suggested that delay can be minimized by
limitation and future directions are discussed. discussions that lead to understanding. Al-Momani (2000)
investigated causes of delay in 130 public projects in
Jordan. The study reveals that main causes of delay were
2. Research Methodology related to designer, user changes, weather, site conditions,
late deliveries, economic conditions and increase in
Seventy- three (73) causes of delay were identified
quantity. The study suggested that special attention to
through the interview and official report. A questionnaire
factors will help industry practitioners in minimizing
was designed in order to evaluate the frequency of
contract disputes. Delays have a strong relationship with
occurrence, severity and importance of the identified
failure and ineffective performance of contractors.
causes companies’ information was collected from official
Assaf and Al-Hejji (2006) reported thirteen (13) major
published lists. Research questionnaire is divided into two
causes that related to contractors performance. For
main parts. Part one is related to the participants’
example, they explain that difficulties in financing project,
background. Part two includes a list of the potential causes
improper construction methods implemented, ineffective
of delay in the construction projects. These causes are
planning and scheduling of project, poor site management
initially divided into project, owner, contractor, consultant,
and supervision by contractor are some of the major
design-team, material, equipment, man power (labor) and
factors affecting the project duration. Al-Barak (1993)
external factors in order to make a clear questionnaire to
discussed the main causes of the project failures in the
the participants. Based on previous studies (Le-Hoai et al.,
construction industry in Saudi Arabia by surveying 68
2008; Marzouk and El-Rasas, 2014), two questions for
contractors. The study concluded that lack of experience,
each factor were asked: 1) what is the frequency of
poor estimation practices, bad decisions in regulating
occurrence for each cause? 2) what is the degree of
company’s policy, and national slump in the economy are
severity of each cause on project delay? The answer for
the severe factors. Based on the Lo et al. (2006) report and
the first question is categorized as “always, often,
the previous studies, the main causes are summarized and
sometimes and rarely," on 4 to 1 point scale. For the
shown in Table 2.
second question similarly was considered as “extreme,
Odeh and Battaineh (2002) investigated 28 construction
great, moderate and little” on 4 to 1 point scale. The point
delay factors. These factors categorized by Sambasivan
for the leave questions are considered zero. and Soon (2007) into the following eight major groups:
18 American Journal of Civil Engineering and Architecture

client-related factors, contractor-related factors, contract relationship- related factors, external factors. This
consultant-related factors, material-related factors, labor categorization is adopted as the basis of the questionnaire
and equipment- related factors, contract- related factors, for the present study.

Table 2. The Main Delay Causes


No. Owners Contractors Consultants
1 Shortage of labor Delay in progress payments by owner Type of project bidding and award
Delay in reviewing and approving design
2 Unqualified workforce Shortage of labor
documents by owner
Ineffective planning and scheduling of Change orders by owner during
3 Delay in progress payments by owner
project by contractor construction
Ineffective planning and scheduling of project
4 Low productivity level of labor Delay in in producing design documents
by contractor
Delay in reviewing and approving design
5 Hot weather effect on construction activities Change orders by owner during construction
documents by consultant
Conflicts encountered with sub-contractors
6 Difficulties in project financing Low productivity level of labor
schedule in project execution
Poor site management and supervision by Mistakes and discrepancies in design
7 Difficulties in project financing
contractor documents
Poor site management and supervision by
8 Inadequate contractors experience Delay in procurement
contractor
Poor qualification of the contractors technical
9 Effect of surface conditions Inflexibility of consultants
staff
Slowness in decision making process by
10 Change orders by owner during construction Delay in procurement
owner
Sepasgozar and Shirazi (2008) investigated that the earthquake and in public natural problems. Delay on
most important causalities for delay in Iranian construction attention to claims and additional costs stemmed from
projects are: delay in earth delivery, delay in the delivery primitive delays by contractors.
of the project design and engineering documents to a
contractor, delay in confirmation or approval of the
contractor’s work, engineering documentation, change 4. Data Analysis and Result
orders, weakness of communication between project
parties, delay in materials and building tools delivery or The data were collected from twenty six construction
preparation of some products by a contractor, delay in companies. The data analyzed through the following
confirmation or payment of on-time inventory and statistical formulas:
Frequency Index ( F.I )( % ) = ∑ a * ( n / N ) *100 / 4
undoing of some financial undertakings by the contractor.
Financial problems have been reported as the reason for
a 40.1 percentage of delays in improvement-national Severity Index ( S.I )( % ) = ∑ a * ( n / N ) *100 / 4
projects and a 67.7 percentage of delays in delayed state
projects since 2000 to 2004 (Sepasgozar and Shirazi, Where:
2008). In 2006, the financial problems were identified as N is the total number of respondents for each question,
38.9 percent, deficit in finance and allocation and a is the integer response value ranging from 1 to 4, and n
deficiency in payment are 16.1 percent, 19.4 percent and is the frequency of responses for each integer value.
3.4 percent respectively. Weakness of contractors and The importance index of each factor is calculated as
operational system is 11.1 percent of delay reason in follows:
improvement-national projects and 11.3 percent of delay
reason improvement-state projects during 2000-2004. In  F.I. ( % ) *S.I. ( % )  / 100
2006, 8.6 percentage of delay reason is termed as
weakness in operational systems. Contractor’s weakness Table 3 shows the most important causes of delay
caused 5.7 percentage of delay reason in improvement- according to the owners, contractors and consultants. The
national projects and 4.7 of delay reason improvement- causes are classified in nine various groups. The table
state projects during 2000-2004. In 2006, contractor shows that the contractor, labor, and external factors are
difficulties were 3.6 percentage of delay reason. Also in three main factors in the projects, while project-related
that year the important reasons in improvement-national factors and consultants are of less importance.
projects are unforeseen weather change, flood-water,

Table 3. Ranking of causes by participants


Frequency of occurrence Degree of severity Importance index
Sources of delay
Index (%) Rank Index (%) Rank Index (%) Rank
Project attributes 55.13 9 56.17 5 30.97 9
Owner attributes 58.65 5 55.29 7 32.43 6
Contractor organization 67.45 1 65.45 1 44.15 1
Consultant attributes 55.77 8 54.01 9 30.12 8
Design issues 58.41 7 55.89 6 32.65 5
Material deficiency 61.38 4 61.54 2 37.77 4
Technology restriction 58.46 6 54.42 8 31.82 7
Labor shortness 65.77 2 60.00 4 39.46 2
External factors 63.46 3 60.10 3 38.14 3
American Journal of Civil Engineering and Architecture 19

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