scholarly journals Factors influencing decisions on delay claims in construction contracts for Indian scenario

2014 ◽  
Vol 14 (1) ◽  
pp. 32-44 ◽  
Author(s):  
Nitin Balkrishna Chaphalkar ◽  
K. C. Iyer

  Construction industry in India is second largest next to agriculture. In current era of infrastructure development construction projects occupy a key position. In any construction project contract time and cost overrun is a common feature, which gives rise to claims leading to disputes. These disputes if not handled properly tend to consume time and money of all parties to the contract. To resolve the dispute in optimum time, it is essential to understand the root cause of disputes as early as possible. Hence there is a need of analyzing the disputes scientifically.  The present study reveals from the study of arbitration awards that the causes for delay claims can be grouped in domains and the probable decisions to the disputes can be traced through the probing questions considered by decision makers. This paper attempts to identify questions related to disputes for Indian scenario through literature, arbitration awards, court cases and discussions with professionals.

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.


Author(s):  
Aderemi Adeyemi ◽  
Olefile Segwabe

Claims are considered to be one of the most serious disruptive forces to successful project delivery in the construction industry. In a small developing economy like Botswana, it is germane to identify the sources and the frequency of occurrence of claims so that the burden of project cost overrun, a hallmark of the country’s construction industry is substantially reduced. Detailed literature review and preliminary field investigations were used to identify causes of claims related to road construction projects. The study identified six major types of claim and twenty seven causes of claims. Using questionnaire as research instrument, respondents (construction industry major stakeholders i.e. clients, consultants and contractors) were asked to rank the frequency of occurrence of the types and causes of claims in road construction projects on a Likert-type scale. Relative importance index (RII) method was used to analyze the data collected from the questionnaire survey. The analysis was carried out for each group of respondents and on the overall results (all the parties combined). A total of 27 useful responses made up of nine clients, ten consultants and eight contractors) were analyzed. Findings indicated that the clients and consultants specified delay claims followed by extra work claims were the most frequent type of claims in the construction of roads in Botswana. Contractors perceived differing site conditions followed by delay claims as the most frequent type of claims. From the overall response, delay claims were ranked first followed by extra work claims. Acceleration claims were ranked least. The top five most frequent causes of claims based on overall ranking were: variation in quantities, design errors, poor site management and supervision by contractor, ineffective planning and scheduling of project by contractor, and low price of contract due to high competition. Construction industry research in Botswana has never looked into the issue of claims and yet it is one of the hidden sources of construction project failure in the country. It is perceived that hedging against the most adverse causes of claims will stem the tide of incessant cost overrun, litigation and project abandonment on road projects in Botswana.


Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.


2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao

Construction industry is considered to be one of the most important industries in Vietnam's economy. But many construction industry sectors have been experienced chronic problem as cost overrun. Therefore, a conceptual model of factors influencing construction cost was developed to determine the key factors that cause difference between budget cost and actual cost and some solutions are recommended to be applied to achieve the best outcome of cost. The result of analyzing 216 construction projects completed from 2002 to 2007 by companies located in Ho Chi Minh City indicated 6 main factors varying construction cost: project planners, project executives, economics, political, natural environment, fraudulent and lost. The results of multiple linear regression model confirmed the relationship between these above 6 factors and construction cost with the theories are supported at the statistically significant level of 0.05.


2018 ◽  
Vol 25 (4) ◽  
pp. 497-533 ◽  
Author(s):  
Parvaneh Shahsavand ◽  
Akbar Marefat ◽  
Majid Parchamijalal

Purpose The purpose of this paper is to reveal the main causes of delays in the projects are from the client (relative importance index (RII)=0.716), labor and equipment (RII=0.701) and contractor (RII=0.698). Hence determining the contractual responsibility of delay is the most likely source of dispute in construction projects and many techniques have been used in the courts to demonstrate the criticalities of a delay event on the project schedule. Therefore, authors try to investigate all process-based techniques of delay claims and evaluated and conformed them with principles by Society of Construction Law (SCL) protocol and Association for the Advancement of Cost Engineering International (AACEI) in order to choose the best techniques based on the specific circumstances of each project. Design/methodology/approach This section is divided into two distinct parts: refers to the methods used to assess the perceptions of clients, consultants, and contractors on the relative importance of causes of delay in construction industry; and refers to advantages and disadvantages of various techniques used to analyze delays and their conform with SCL protocol. A questionnaire was developed to assess the perceptions of clients, consultants, and contractors on the relative importance of causes of delay in Iranian construction industry. The respondents were asked to indicate their response category on 78 well-recognized construction delay factors identified by authors. Findings In total, 78 causes of delay were identified through research. The identified causes are combined into seven groups. The field survey included 58 contractors, 55 consultants, and 62 client. Data collected were analyzed by RII and Statistical Package for Social Sciences (SPSS). The authors identified main causes of delay and ten most important causes, according to Table AII, from the perspective of three major groups of participants (clients, consultants and contractors). The ranking of categories of causes of delay, according to Table I, were: client-related causes (RII=0.716); labor and equipment category causes (RII=0.701); contractor-related causes (RII=0.698); material-related causes (RII=0.690); design-related causes (RII=0.666); external causes (RII=0.662); and consultant-related causes (RII=0.662). But according to the discussions and given that determining the contractual responsibility of delay is the most likely source of dispute in construction industry and many techniques have been used in the courts to demonstrate the criticalities of a delay event on the project schedule. Originality/value All process-based techniques of delay analysis have been present in this paper and categorized in 11 groups. In order to understand the advantages and disadvantages of them by clients, contractor and consultant, a thorough review conducted to reveal the nature of techniques. In the next step, given that selecting the most appropriate technique based on constraints and specific conditions of each project is one of the most important steps to carry out a successful delay analysis. The authors conformed, all process-based techniques of delay analysis, by SCL protocol and AACEI principles. Finally, the result of this match was brought in order to choose the best technique based on the specific circumstances of each project.


2012 ◽  
Vol 452-453 ◽  
pp. 1002-1008 ◽  
Author(s):  
Chidambaram Ramanathan ◽  
Narayanan Sambu Potty ◽  
Arazi B Idrus

The construction industry in Malaysia is very important for creating employment, both directly and indirectly. It faces two repeated problems during the construction stage: slippage of project-schedules, i.e. time overrun and overrun of project cost; to the dislike of owners, contractors and consultants. This paper studies the time delay and cost overrun factors for Design and Build D&B projects in Malaysia. A Questionnaire was used to collect data from practitioners and analyse the responses and rank the factors and groups on overall view of the contracting parties. Identified risk factors from the theoretical domain were used to prepare 79 time related question and 18 cost related question categorized in 9 groups and 1 group respectively. Total of 136 respondents recorded their ratings to the factors in the questionnaire. Labour-related group has the top 1 rank with RII 0.684. The results can be used as a guideline to successfully handle construction projects in Malaysia; contributing for better project performance and lead to positive risks, opportunities.


2021 ◽  
pp. 44-48
Author(s):  
Anikwe Nnaemeka J ◽  
Agha Kalu A

Economic transformation and the provision of basic infrastructure to engender growth and development in any nation is vested in the construction industry hence the massive investment of the government in this sector. However, the expected gains of the construction industry have been eroded by the failure of many construction projects due to unethical professional practices on the part of the construction professionals. This study analyzed the causes and effects of unethical practices on the industry and project delivery with measures to combat the unethical practices among the stakeholders. The study adopted the survey design and a stratified random sampling technique was used to select 140 respondents. A structured questionnaire was designed and administered to construction professionals (Architects, Quantity Surveyors, Builders and Engineers). The relative importance index tool was used to analyse the severity of the factors identified. Findings revealed the absence of punishment for unethical practices (0.94), collusion between officials, consultants and contractors (0.91), availability of loopholes in project monitoring (0.89), weak law enforcement institution (0.87) and greed for money (0.83) among others as major causes of unethical professional practices which have serious effects on the construction industry. The result also revealed poor workmanship and substandard project delivery (0.88), high cost of construction (0.86), the collapse of structures/buildings (0.82), inflated contract sums (0.81), high maintenance cost (0.79), time and cost overrun (0.76) as the extremely severe effects of unethical practices in the industry. Prosecution and punishment of offenders (0.98), the whilstle blower protection policies and rewards (0.84), strengthening of institutionand anticorruption agencies (0.78), award of contracts on merit (0.75) and civil society participation and oversight (0.68) were identified as highly effective measures to curtail unethical professional practices. The study recommends that the government being a major actor should abide by the due process of contract award and letting, using Public Procurement Act (PPA) guidelines in executing all its construction projects. The professionals, contractors and clients’ representatives should also exhibit high professional excellence through adherence to professional ethics and codes of conduct.


Author(s):  
Taofeeq Moshood ◽  
◽  
Adekunle Adeleke ◽  
Gusman Nawanir ◽  
Jibril Bamgbade ◽  
...  

One of the critical factors responsible for the successful management of construction projects is individual factors. These factors play a significant role in the decision-makers' attitudes towards risks management. Many previous studies regarding the management of construction projects have focusedon the factors contributing to the success of risk management. However, little attention has been given to factors severely affecting the decision-makers' risk attitudes with particular reference to an individual's risk factors in the construction industry. Therefore, this study aims to identify the factors affecting contractors' risk attitudes and then determine its relationship with government policy. Theoriesof planned behaviour and organisational control wereused to develop the theoretical framework that investigated G-7 contractors in the Kuantan Pahang, Malaysian construction industry. A review of relevant literature and questionnaire was employedto identify the factors affecting contractors' risk attitudes (personal factors). 112copies of a structured questionnaire were analysed with a response rate of 80%. Structural Equation Modelling SEM was utilised to test the hypotheses developed for the study. The results of this study,through SEM,proved that personal factors (working experience, professional competence and physical health) have a significant influence on contractor risk attitudes in the Malaysian construction industry. The findings of this research also confirm that government policy (rules and regulations) plays a moderating role in enhancing the relationship of personal factors affecting contractors’ risk attitudes in construction companies in Malaysia. The findings of the study provide more understanding of the personal factors that affect contractors' risk attitudes to facilitate contractors' decision-making process and serve as a useful reference for further studies in the field of construction project management.


2021 ◽  
Vol 11 (3) ◽  
pp. 243-254
Author(s):  
Shehryar Idrees ◽  
Muhammad Tariq Shafiq

Abstract The construction industry in Pakistan is experiencing a surge in public sector projects due to major investments in infrastructure projects. Project delays and cost overrun are common features in public sector construction projects in Pakistan. Therefore, an understanding of the causes of time and cost overrun in public projects is essential. This paper investigates delay and cost overrun factors within the context of public sector projects in Pakistan. This study identifies 48 potential factors from existing literature and semi-structured interviews were used to refine the identified factors into ten categories. A questionnaire survey was used to establish a hierarchy of factors using descriptive statistics. The results showed that the major causes of time overruns in public projects were (1) legal issues, such as court stay orders, land acquisition, relocation of public facilities; (2) technical errors leading to low-quality drawings, rework, and errors at bidding stage; and (3) Poor project management. The findings of this research contribute to understanding the causes of project delays in public sector projects in Pakistan.


Construction is one of the most important employment sectors in India with very minimal research being done to identify the delay factors and causes that affect the construction Industry. The opinions of the construction professional required for the research was obtained by conduction interviews. A set of questions were circulated between the professionals working on the site to acquire the causes and effects of delays faced by them. To resolve the issues various studies and researches have been done by various researchers. The data analyzed in the research was done by using Relative Important Index (RII) which helpsto categories and rank the causes of delays according to the importance of the causes with respect to its contribution towards time delays, arbitration, litigation, cost overrun and total abandonment. Spearmen’s rank correlation coefficient was used compare the effect of delays between contractors, owners and consultants. In this paper, the research is aimed towards finding the effects of various causes on the various parties on construction sites of coastal parts of Mumbai and methods of minimization of the same.


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