Appraisal of the Impact of Delays in Project Delivery in Construction Industry

Appraisal of the Impact of Delays in Project Delivery in Construction Industry

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Chapter One of Appraisal of the Impact of Delays in Project Delivery in Construction Industry

INTRODUCTION

BACKGROUND OF THE STUDY

It is believed that one of the prevailing problems of construction industry in Nigeria is the impact of delays in project delivery. It is very important for both public and private projects to be completed on time and within budgets. Normally, achieving the projects within predetermined time, budget and quality is the basic purpose of construction project control. Construction delays is simply the time during which some part of the construction project has been extended beyond what was originally planned due to unanticipated circumstances.
Project success is basically to gain the project objectives that are classically defined by the need to complete a project on time, within the budget and with appropriate quality. Hence any disruptions to the project objectives will certainly contribute to project delays with the specified adverse effect on project objectives. Delays can give rise to disruption of work and loss of productivity, late completion of project, increase time related costs, third party claims, abandonment or determination of contract. Delays are costly and often result in disputes
and claims. Furthermore, delays effects the feasibility for project owner and retard the development in construction industry
Before determining the effect of delay on project, one must determine whether the delay is critical. Additionally, all delays are either excusable or non-excusable. Both excusable and non-excusable can be defined as either concurrent or non-concurrent. Delays can be further broken down into compensable or non-compensable delays. Unfortunately, many construction projects cannot be delivered within specified time and budget. Many project shows massive cost and time overruns, in some cases client has to increase project time and cost. In an attempt to solve these problems, there are various strategies applied which will be discuss at the course of this presentation.
Delays are perhaps the most common form of construction claims or even disputes. The problem is that, the parties involved in the process could hardly identify the reason and responsibility of each one in the specific task. Delays and claims resulted from works which are not carried-out precisely as the contract required. Accordingly, avoiding delays is a crucial concerned not only with good practice during the planning and execution of the works but also with the proper operation of the contract machinery.
This project seeks to identify the impact of delays on project delivery in Nigeria construction industry. Appropriate strategies to
control delays and develop a guide him of information management for prevention and control are also covered in this work.

STATEMENT OF THE PROBLEM

Project delays have been one of the most prevailing problems in construction projects in Cross River State. This delays has it impact on project delivery which findings shows that cost overrun, time overrun and project abandonment is the effect experience by delay in construction project in Cross River State.
Improper planning, poor contract management, slow decision making, design errors and cash flow problems were the major causes of delays in most of the project.

OBJECTIVES OF THE STUDY

The major purpose or aim of this study work is to examine critically the causes and impacts of construction delays on project very in Cross River State. This project would make attempt to resent suggestive solutions to the problems of delays faced by construction industries, so as to ensure effective execution of future projects without these problems and also meet the pre-determined contractual date of completion

THE AIM AND OBJECTIVE OF THE STUDY IS AS FOLLOWS:

(a) To identify and evaluate the effect of delays on building project execution in Nigeria.
(b) To assess the effect of delay on completion time of building projects.
(c) To examine the impacts of delay on the cost of construction project.
(d) To bring to the knowledge of parties the actual causes of project delay.
(e) To identify and describe current good practice in managing, handling and settling the impact of delays (claims) in construction project.
(f) To investigate how the effects or impact of delays can be minimized.

SIGNIFICANCE OF THE STUDY

It has been observed that most contracts in Cross River State has its inability to keep to the targeted contracted period of time and it all turns out in the increment of stipulated period and associated excessive cost maximization thereby causing unwanted and unnecessary delay.
The purpose of this research work, this is significant in that it has given the researcher challenges and opportunity to conduct an in-dept study of the subject. This act could be sourced from either of the party involved in the contracts, which could turn to be due to the negligence of fulfilling the oblig2tions awarded to either of them. Furthermore, the impacts of the causes of the delays of these construction projects have to be known and solutions identify in other to minimize it, if possible rectify the faults.

SCOPE OFTHE STUDY

This study appraises delays and it impacts on project delivery in construction industry, and more especially in the Nigeria context. This is with the view of finding solutions and making constructive proposals to rectifying, minimizing and finding a long costing reduction for the future efficient project execution. Research work in project construction delays generally will be very voluminous and this would mean researching into all aspect and methods of contract procurement. I therefore hope that all the detailed information required to achieve my aim and objectives of
this project has been accomplished.

LIMITATION OF THE STUDY

During the course of carrying out this study, the researchers encountered the following under listed problems
(a) The limitation was the unwillingness of some respondent to complete the questionnaire administered. This is because of the fear that such information may lead to their superior.
(b) The lean financial position of the researchers also contributed to the limitation of this study.
(c) The time limit for this research also contribute a serious constraint to the production of a full scale report, though study of this nature will need comparison with many of such settlements within and outside the study area so as to give a sound judgment and recommendation.

RESEARCH QUESTIONS

In order to accomplish the purpose of this study, these research questions were put forward to offer a general guide to the researcher.
(a) From your experience in construction, have you ever suffered delay?
(b) From which of the source is the delay experience?
(c) What are the sources of delays usually experience in construction projects?
(d) What are the impacts of delays in construction projects?
(e) Who in your opinion suffers the most when there is prolonged delay?

ORGANISATION OF THE STUDY

It is worthwhile to state here that the project is divided into five chapters. Chapter one consist of the introduction, which gives us a brief insight of what the researcher is writing about, the objectives of the study, significance of the study, research questions, scope of the study, limitation of the study and definition of terms.
The second chapter move on to reviewing related literature and conceptual issues. The overview of the study with analysis on delays, causes, impact or effect of delays and types of delays is been highlighted.
Chapter three introduces the research method research area, selection of samples research procedure! administration and data collection. Findings are made herein on the impact of delays in project delivery in Construction Industry and Cross River State used as a case study.
The fourth chapter analyses the data collected and findings in the study area, it examines the impacts of delays on project delivery. While the last chapter gives the summary, conclusion and recommendation for minimizing those problems identified.

DEFINITION OF TERMS

The Terms Used Are Defined As Follows;
ACCELERATION: This is a process of increasing the pace of the contractors work by adding extra labour to compensate for a delay, to accommodate additional work or to finish the project earlier than originally scheduled.
CLAIMS: There are generally described as request by contractor for recompense for losses and expenses that he has suffered or attempt by contractors to avoid the requirement to pay liquidated and ascertained damages or right that are established with action through the court of law due to either breach of contract, tort, repudiation and other related matters.
CLIENT: This is the project owner, he who bears the financial burdens of the projects. He inputs all other parties to the project and the outcome of the project belongs to him as the end product must be to his satisfaction.
CONSULTANT: these are the group of specialists consulted to provide profession services in most construction project, the following are part of the numerous consultants: Architects, Quantity Surveyors, Structural and Service Engineers, Estate surveyors, Builders etc.
CONTRACTOR I BUILDER: This is the successful bidder. He is
responsible for the proper execution of the work in accordance with the contractual documents and agreements.
CRITICAL PATH: This is a series of work processes / activities that cannot be compressed between now and the end of the project.
DAMAGES: These are financial compensation recoverable by the inquiring party to the contract.
DELAY: this is a suspension or hindrance to the progress of work. It also means the time during which some part of the construction project has been extended beyond what was originally planned due to an unanticipated circumstances.
EFFECT: It is a change produced by an action or cause, a result of an outcome either positively or negatively.
PROJECT: This is a temporary Endeavour undertaken to create a unique product or service. It has peculiar characteristic, which include high risk, limited time frame, instability and flexibility, pro-effectiveness, goal directed and uniqueness.

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