International Journal of Civil Engineering and Technology (IJCIET), ISSN (Print), INTERNATIONAL JOURNAL OF CIVIL ENGINEERING

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1 INTERNATIONAL JOURNAL OF CIVIL ENGINEERING AND TECHNOLOGY (IJCIET) ISSN (Print) ISSN (Online) Volume 5, Issue 3, March (2014), pp IAEME: Journal Impact Factor (2014): (Calculated by GISI) IJCIET IAEME ANALYSIS OF CRITICAL FACTORS AFFECTING THE CONSTRUCTION PROJECTS IN PUNE REGION, INDIA Dr. A. W. DHAWALE 1, S. C. TANDALE 2 1 Associate Professor, Department of Civil Engineering, JSPM's Imperial College of Engineering and Research, Pune, India 2 Post graduate student, JSPM's Imperial College of Engineering and Research, Pune, India ABSTRACT Construction project located in India suffer from many problem and complex issues, which leads to delays and cost overruns. This study is very important as per Indian construction industry point of view. Delays and cost overruns are becoming common facts in the Indian construction industry. Researchers have tried to find many solutions to mitigate such problems but still in construction industry above problems are untraced and unrecoverable. This paper deals with the study of unnecessary delay occur in construction projects to find the Importance Index of critical factors affecting the project productivity. A survey with various construction companies located in Pune region, India is carried out to find the reasons which are affecting the construction projects in India. The various factors are found out with detail study of literature review and these critical factors are then categorized into owner, contractor, consultant, material, design, labour and equipment and external factors. The two questions were asked in this survey: what is the frequency of occurrence of this factor and what is the severity of this factor in five point scales. This survey includes various contractor, consultant and owners from the construction industry. Keywords: Construction Projects, Delays, Importance Index, Construction Industry, Critical Factors. INTRODUCTION Time and cost are the lifelines of any and every project. The success or failure of any project depends largely on these two factors apart from its quality. They are vital, still they are neglected. India is the tenth largest country in the World and yet her record of implementing major projects has been far from satisfactory. It has been observed very frequently that most of the projects in India 209

2 ended with extra involvement of time, money and resources. It's a rare scene in construction industry, that a project is completed well within the estimated budget and time and with desired quality. Technological advances are fast making their inroads into construction as a result of the process of global sharing of experience and wider networking. The New World order has impressed upon us the need for a paradigm shift in approach in construction management and the constituent processes. The involvement of multiple skills, equipment, machineries and materials dependency on number of interrelated activities makes construction a complicated process. And if the industry is largely unorganized as well, the problem is compounded. That is why to manage and successfully coordinate and complete a project is a formidable problem. The client and contractor in a project, although, have a common objective i.e. to complete the project on time. The client in order to utilize the end result of the project, which has a value to him, the contractor in order to terminate indirect expenditure on it as early as possible in order to start further projects. Still, most of the projects cross the limits of time. Delay in completion results in definite increase in cost, because of immense sums held up, which bring no income. In fact, some projects often become uneconomical due to the time and cost overrun. SCOPE OF THE STUDY In this study, we will be studying the causes responsible for overruns of a construction project and suggest the probable measures. Our study shall include the various causes or factors of the delay and cost overruns in construction projects are studied and analysed in terms of severity and their occurrence. Very small number of projects gets delivered on time. In India the problem of time and cost overruns is widespread and severe. Few empirical studies and analysis exist on these topics in India. Overall this study will be very useful for the previous, ongoing and upcoming future construction projects to minimize the unnecessary delay and cost overruns in the construction projects. We shall get the questionnaire filled from around a number of organizations. This survey can help us to predict the exact reasons for overruns. LITERATURE REVIEW For any construction project unnecessary delay and cost overruns have severe effect on the productivity of the project. It also affects the economy and the industry of the country and causes other effect on the development of the project and activities depending on these construction projects. AymanH.Al-Momani (2000) Studied Construction delay: a quantitative analysis. Author concluded that, the delay and cost overrun in construction is a critical function in public projects construction. It has been of great interest to researchers but in the case of Public related projects it has not been well understood. Practically oriented research is vital for proper man-agreement of construction projects. Reliable prediction of construction duration and then controlling cost withinbudget is widely used in decision making and is an essential part of successful management. They concluded that, the maincauses of delay in construction of public projects relate to designers, user changes, weather, site conditions, late deliveries, economic conditions and increase in quantity. Daniel W M Chan and Mohan M. Kumaraswamy (1997) A comparative study of causes of time overrun in Hong Kong construction projects. Poor site management, unforeseen ground conditions, supervision, low speed of decision making and client initiated variations are the five various reasons for the delay in Hong-Kong construction 210

3 projects. The relationship between success on site and 'strong' management teams underlines the need for effective site management and supervision by contractor s and consultants. They found that there was a difference in perceptions as to causes of delays by different groups of participants in building and civil engineering works. Suggestions were made with this study that biases of various industry groups might directly blame for delays to other groups. Noulmanee et al.2004 This study was conducted in Thailand for the various causes of delays in highway construction and concluded that the delay can occur due to various parties involved in the construction. The main reason for the delay in highway construction was due to improper planning of the sub-contractors, lack of sufficient sources, unclear and incomplete drawing and deficiencies between consultant and contractor. This study suggested the solution that understanding between various problems will solve the problem. Ram Singh (Economic and Political Weekly2010) Study concluded that the main reason behind the cost overrun is the delay. Bigger projects have experienced higher cost overrun as compared to the smaller one. Delays in building construction project are less as compared to the infrastructure projects. Analysis shows that, due to imperfect techniques and contractual incompleteness some delays and cost overruns are inevitable. Sebastian Morris (Cost and time overruns in public sector projects, IIM Ahmadabad 1990) In the Indian economy Public Sector (PS) occupies an important place. As a leading sector, a substantial part of the autonomous investments arise therein. These investments pull (and push) along with other investments in the private corporate and cottage and small industries sectors. Indeed the very reason of the Public Sector's central place in Planning in India is to raise the level of investment economy-wide. Economists have been keenly aware of this central aspect of the PS, as much of the discussions of the "stagnation debate that started in the early seventies and continues till today would indicate. RESEARCH METHODOLOGY The methodology adopted for this study is the by hand distribution of formulated questionnaire. The questionnaire was designed carefully so that the objectives of the study are fulfilled and it is believed that the questionnaire is the best practice for gathering data from the site. The questionnaire has been distributed to various government employees (client); contractor and consultant involved in the project initiations to the completion stage. Eighty two factors causes delay has been found out with detail study of the previous literature and with continuous site visit to projects personals, contractor, clients and their feedback had helped to prepare and formulate the questionnaire. This questionnaire is distributed to various sites which are delayed due to various causes. QUESTIONNAIRE DESIGN The questionnaire is written in very simple language so that it is easily understood to the respondents. The data gathered from various contractors, owner, consultant, project manager and site engineer is analysed by using frequency, Severity and Relative importance index. Agreement on the ranking of the importance of the causes of delay between contractor, consultant and owner and various parties was also tested. Recommendations to minimize delays occurring due to various reasons emphasized in view of the results of the study. Data gathered through questionnaire circulated to various construction projects are analysed. The questionnaire consists of two question were asked what is the frequency of occurrence for this 211

4 cause and what is the severity for this cause in project delay. For these two questions five point scale (1 to 5) rating was provided to the respondents to respond for the causes. Then the various parties involved in construction projects are requested to respond to the above factors according to the experience in the construction industry. These causes are categorized into various categories according to the source of delay; these are the factors related to the project, consultant, contractor, owner, design, labour and equipment, material and external factors. For both questions frequency of occurrence categorized as follows: not occur, rarely, sometimes, often and always (on 5 to 1 point scale) and for degree of severity were categorized as follows: no effect, low effect, medium effect, high effect, very high effect (on 1 to 5 point scale). The data were collected from the following construction companies Sr. No. 1 2 Table 1: Details of the data collected Name of the Company Town Planning Department (Govt.of India) Larsen & Turbo (Economical Construction Company) 3 Rohan Builders 4 Pristine Properties Pvt Ltd 5 J. Kumar Pvt Ltd 6 Kumar Builders 7 Unity InfraPvt Ltd 8 Urban Infracon Pvt Ltd (Contactors) 9 Marvel Realtors India pvt Ltd 10 Madhav Limaye Group (Consultancy) 11 Tejaswini construction (Yin Yang) The collected data were analysed through statistical techniques and indices. Frequency Index: To rank the causes of delay based on frequency of occurrence identified by the respondents, formula used is as follows Frequency Index = ( (A* n) )(100 5) Where A is the constant expressed as weightage given to the factor from (1 to 5), n is the frequency of responses, N is total number of responses. 212

5 Severity Index: To rank the causes of delay depending on the severity of the cause identified by the respondents, formula used is as follows Severity index = ( (A * n) ) (100 5) Where A is the constant expressed as weightage given to the factor from (1 to 5), n is the frequency of responses, N is total number of responses. Importance Index: The importance index of factors or cause is calculated as a function of both frequency and severity indices, as follows: Relative Importance Index (I.I%) = (Frequency Index % Severity Index %) 100 DETAILS TO BE FILLED BY THE RESPONDENT The following data were asked to the respondents to fill in the questionnaire so that if some data is missing and for further information can be contacted and cleared. Sr. Title no. 1 Name : 2 Organization : 3 Qualification : 4 Work Experience : 5 Contact No : 6 Sign & Date The nine categories of delay are: Information to be filled by respondents Delay at Project level. Delay due to Owner. Delay due to Contractor. Delay due to consultant. Delay due to Designer. Delay due to Material. Delay due to Labours & Equipment. Delay due to External factors. RESULTS AND FINDINGS The questionnaire circulated to various already delayed construction project was analysed using frequency of occurrence and degree of severity for the various causes affecting the productivity of the project. The result obtained is tabulated in the format with relative importance index which is shown in table no

6 Sr.N o. Table 2: Relative Importance Ranking of Critical Factors. Factors responsible for delays Categories Frequency index % Severity index % Relative Importance index % Legal disputes between various parties Type of project bidding and award procedure Original contract duration is short Poor communication and coordination between consultant and other parties Delay in approving major changes in thescope of work by consultant Inadequate experience of consultant Rework due to error by contractor Difficulties in financing project bycontractor Delay due to sub-contractor work Delays in progress payments by owner Changes in government regulations and laws Delaying delivering the site to consultant and contractor Delays in producing design documents Insufficient data collection and surveybefore design Use of advance software for design purpose Lengthy procedure to issue material from stores Shortage of construction materials in market Delay in material delivery from the supplier Unavailability of equipment on site PROJECT CONSULTANT CONTRACTO R OWNER DESIGN MATERIAL LABOUR & EQUIPME NT EXTERN AL Shortage of manpower (skilled, semi-skilled, unskilled labour) Frequent equipment breakdown Ruling party of the locality Locals against the project causing delay to work Delay from obtaining sanctions from various authorities EXTREMELY CRITICAL VERY CRITICAL CRITICAL 214

7 CONCLUSION AND RECOMMENDATIONS For reducing the unnecessary delays occurring in the various construction projects it is necessary to find the root cause of delay. This result provides a listing of root causes and issues that are directly responsible for most Construction project delays. Additionally it is found that fundamental principles must be adopted before significant improvements can be made. In order to minimize and control delays the following points can be recommended by all parties in construction projects: 1. Owner s Should Give Special Attention To The Following Factors Pay progress payment to the contractor on time because it gives the contractor s ability to finance the work. Resources and capabilities of contractor and consultant, before awarding the contract to the lowest bidder Avoiding delays in producing drawing and changes in specifications to the contractors and consultant Frequent changes in rules and regulations also affect the construction productivity at site (Example: Due to local body tax in Pune, there was undue strikes of suppliers and distributers which caused delays in various construction projects) 2. Contractor s Should Consider The Following Factors Shortage of labours: Sufficient number of labour should be assigned and motivated for improving the productivity on site Contractor should manage his financial problem by utilizing progress payment Site management and supervision: staff assigned for the supervision and management should be well qualified and experienced Delay due to sub-contractor: Delays occurring due to sub-contractor should be minimized and instructions to minimize the delay and cost overrun with the already planned schedule 3. Consultant s Should Look To The Following Factors Delay caused due to the Reviewing and approving design documents by the consultant engineer in checking, reviewing and approving the design submittals need to be done prior to construction phase Daily site meetings with contractor and consultant should be arranged to create the effective planning and coordination to avoid unnecessary delays Delay in preparation of bill of work done by contractor should be minimized and avoided the delay in progress payment ACKNOWLEDGMENTS The authors are gratefully acknowledges the contribution provided by the various Construction Company, Contractors, Consultants, Project managers, Architect, Engineers and Supervisors in the above study. The authors are also thankful to Town Planning Department (Govt. of India) for continuous help and support during this study. 215

8 REFERENCES 1. Ram Singh (2010) Cost Overruns and Delays in Construction Projects: An Enquiry into Extents, Causes and Remedies, Department of Economics Delhi School of Economics University of Delhi, Sebastian Morris(1990);Cost And Time Overruns In Public Sector Projects by, Institute of Public Enterprise, Hyderabad, The Indian Institute of Management, Ahmadabad. 3. Narinder Gupta(December 14, 2009); Avoiding Time and Cost Overruns in the Construction of Rohtang Tunnel. A GOVERNMENT OF INDIA initiative on the preparation of report for reducing unnecessary delays and cost overrun. 4. Siddesh Pai, Raj Bharath (March, 2013), Analysis of Critical Causes of Delays in Indian construction Projects International Journal of Research in Management and Technology, Volume 2, Issue Noulmanee et al. (2004); various causes of delays in highway construction. 6. AymanH.Al-Momani (2000); [1] studied, Construction delay: a quantitative analysis. 7. Daniel W M Chan and Mohan M. Kumaraswamy (1997); [2] investigated on, A comparative study of causes of time Overrun in Hong Kong construction projects. 8. Panas,A. and Pantouvakis (2010); J.P. Centre for Construction Innovation, Department of Construction Engineering and Management, Faculty of Civil Engineering, National Technical University of Athens, Greece. The Built & Human Environment Review, Volume 3, Special Issue Adnan Enshassi, Sherif Mohamed (2009); Factors affecting the performance of construction projects in the Gaza strip. School of Civil Engineering, Islamic University of Gaza, P.O. Box 108, Gaza, Palestine. Journal Of Civil Engineering And Management 2009, 15(3): Shubam Vyas (2008); Causes of delay in project construction in developing countries. Alstom T&D India Ltd, India. Indian journal for management and studies; ISSN: Delays in Building Construction Projects in Ghana; (Frank DK Fugar, Adwoa B Agyakwah-Baa) Vol 10, No 1/2 (2010) VOL 10, NO 1/2 (2010). 12. Causes and effects of delays in Malaysian construction industry, (Murali Sambasivan, Yau Wen Soon) Graduate School of Management, University Putra Malaysia, 21 November Oko John Ameh (2011)Study of relationship between time overrun and productivity on construction sites; International Journal Of Construction Supply Chain Management, Volume, Number 1 Department of Building, University of Lagos, Nigeria. 14. Desai Megha; Dr. Bhatt Rajiv; (March 2013) A methodology for ranking of causes of delay for residential construction projects in India International Journal of Emerging Technology and Advanced Engineering; (ISSN , ISO 9001:2008 Certified Journal, Volume 3, Issue 3). 15. González, P González, V Molenaarand Orozco F (2014). Analysis of Causes of Delay and Time Performance in Construction Projects. J. Constr. Eng. Manage., 140(1), Ministry of Environment and Forests (MoEF) 2009 causes of construction on environment and applying various rules and regulations. 17. BandraWorli sea link (BWSL) and Maharashtra State Road Development Corporation Limited (MSRDC) joint report on the causes delay cost overrun in the construction projects. 18. Government Of India (2006a), Financing of the National Highway Development Programme, Report of the Core Group, Planning Commission, Government of Financing Support to Public Private Partnership in Infrastructure, Planning Commission, New Delhi. 19. An enquiry to In-depth of Delay in infrastructure projects. The Hindu (Business line) New Delhi. 20. Government Of India (2006b), Guidelines on Financing Support to Public Private Partnerships in Infrastructure, Planning and Commission, New Delhi. 21. Ch.Mahesh and K.Sridevi, Implementing Eichelay Formula in Govt. Construction Projects International Journal of Civil Engineering & Technology (IJCIET), Volume 4, Issue 3, 2013, pp , ISSN Print: , ISSN Online: