20320140503023

International Journal of Civil Engineering and Technology (IJCIET), ISSN 0976 – 6308 (Print),

ISSN 0976 – 6316(Online) Volume 5, Issue 3, March (2014), pp. 209-216 © IAEME

209

ANALYSIS OF CRITICAL FACTORS AFFECTING THE CONSTRUCTION

PROJECTS IN PUNE REGION, INDIA

Dr. A. W. DHAWALE1, S. C. TANDALE

2

1Associate Professor, Department of Civil Engineering, JSPM's Imperial College of Engineering and

Research, Pune, India 2Post 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

INTERNATIONAL JOURNAL OF CIVIL ENGINEERING

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ISSN 0976 – 6308 (Print)

ISSN 0976 – 6316(Online)

Volume 5, Issue 3, March (2014), pp. 209-216

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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



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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



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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

Table 1: Details of the data collected

Sr.

No. Name of the Company

1 Town Planning Department

(Govt.of India)

2 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.



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• 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.

no. Title Information to be filled by respondents

1 Name :

2 Organization :

3 Qualification :

4 Work Experience :

5 Contact No :

6 Sign & Date

The nine categories of delay are:

• 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 2.



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Table 2: Relative Importance Ranking of Critical Factors. Sr.N

o.

Factors responsible for delays Categories Frequency

index %

Severity

index %

Relative

Importance

index %

1. Legal disputes between various

parties

PR

OJE

CT

74.45 64.47 45.64

2. Type of project bidding and

award procedure 61.36 54.55 33.47

3. Original contract duration is

short 62.50 47.73 29.83

4.

Poor communication and

coordination between consultant

and other parties

CO

NS

UL

TA

NT

59.09 53.41 31.56

5.

Delay in approving major

changes in thescope of work by

consultant

60.23 50.00 30.11

6. Inadequate experience of

consultant 61.36 48.86 29.98

7. Rework due to error by

contractor C

ON

TR

AC

TO

R

59.09 57.95 34.25

8. Difficulties in financing project

bycontractor 69.32 61.36 42.54

9. Delay due to sub-contractor

work 61.36 52.27 32.08

10. Delays in progress payments by

owner

OW

NE

R 70.45 59.09 41.63

11. Changes in government

regulations and laws 65.91 59.09 38.96

12. Delaying delivering the site to

consultant and contractor 61.36 60.23 36.96

13. Delays in producing design

documents

DE

SIG

N 56.82 60.23 34.22

14. Insufficient data collection and

surveybefore design 52.27 53.41 27.92

15. Use of advance software for

design purpose 51.14 54.55 27.89

16. Lengthy procedure to issue

material from stores

MA

TE

RIA

L

65.91 63.64 41.94

17. Shortage of construction

materials in market 59.09 65.90 38.95

18. Delay in material delivery from

the supplier 60.23 62.50 37.64

19. Unavailability of equipment on

site

LA

BO

UR

&

EQ

UIP

ME

NT

62.50 59.09 36.93

20. Shortage of manpower (skilled,

semi-skilled, unskilled labour) 59.09 52.27 30.89

21. Frequent equipment breakdown 52.27 44.32 23.17

22. Ruling party of the locality

EX

TE

RN

AL

71.59 67.05 48.00

24. Locals against the project

causing delay to work 60.23 67.05 40.38

25. Delay from obtaining sanctions

from various authorities 59.09 52.27 30.89

EXTREMELY CRITICAL

VERY CRITICAL

CRITICAL



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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.



216

REFERENCES

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Enquiry into Extents, Causes and Remedies, Department of Economics Delhi School of

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2. Sebastian Morris(1990);Cost And Time Overruns In Public Sector Projects by, Institute of Public

Enterprise, Hyderabad, The Indian Institute of Management, Ahmadabad.

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International Journal of Civil Engineering & Technology (IJCIET), Volume 4, Issue 3, 2013,

pp. 63 - 72, ISSN Print: 0976 – 6308, ISSN Online: 0976 – 6316.

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