Factors Influencing Time and Cost Overruns on …library.iugaza.edu.ps/Thesis/80712.pdf · Factors...

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اﻹﺳﻼﻣﻴﺔ اﻟﺠﺎﻣﻌﺔ ﻏﺰة اﻟﻬﻨﺪﺳﺔ آﻠﻴﺔ اﻟﻌﻠﻴﺎ اﻟﺪراﺳﺎت ﻋﻤﺎدةFactors Influencing Time and Cost Overruns on Construction Projects in the Gaza Strip ﻏﺰة ﻗﻄﺎع ﻓﻲ اﻹﻧﺸﺎءات ﻣﺸﺎرﻳﻊ وﺗﻜﻠﻔﺔ اﻟﺰﻣﻨﻴﺔ اﻟﻤﺪة زﻳﺎدة ﻋﻠﻰ ﺗﺆﺛﺮ اﻟﺘﻲ اﻟﻌﻮاﻣﻞJomah Mohammed Al-Najjar Supervised by Prof. Dr. Adnan Enshassi Professor of Construction Engineering and Management A Thesis submitted in partial fulfillment of the requirement for Degree of Master of Science in Civil Engineering – Construction Management The Islamic University of Gaza April, 2008 The Islamic University – Gaza Faculty of Engineering Higher Education Deanship

Transcript of Factors Influencing Time and Cost Overruns on …library.iugaza.edu.ps/Thesis/80712.pdf · Factors...

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غزة –الجامعة اإلسالمية

آلية الهندسة

عمادة الدراسات العليا

Factors Influencing Time and Cost Overruns on

Construction Projects in the Gaza Strip

العوامل التي تؤثر على زيادة المدة الزمنية وتكلفة مشاريع اإلنشاءات في قطاع غزة

Jomah Mohammed Al-Najjar

Supervised by

Prof. Dr. Adnan Enshassi Professor of Construction Engineering and Management

A Thesis submitted in partial fulfillment of the requirement for

Degree of Master of Science in Civil Engineering – Construction Management

The Islamic University of Gaza

April, 2008

The Islamic University – Gaza Faculty of Engineering Higher Education Deanship

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Dedication

To my loving parents who supported me all the way; to my

wife whose constant dedication and love enlightened me; to

my sons whose innocent energy was and still is a source of

inspiration; to all of my friends and colleagues who stood

beside me with great commitment; I dedicate my research,

hoping that I made all of them proud.

Jomah M. Al-Najjar

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Acknowledgement

• I would like to express my gratitude to all those who gave me the possibility to

complete this thesis. I am deeply indebted to my supervisor Prof. Dr. Adnan

Enshassi from the Islamic University - Gaza whose help, stimulating suggestions

and encouragement helped me in all the time of research for and during writing of

this thesis.

• Special thanks to construction management staff of the Islamic University of

Gaza for their academic and scientific support throughout my study of MSc.

• Special thanks for statistician (Dr. Samir Saffi ) who supported me very much.

• Special thanks to Higher Education Division at Engineering Facility for their

administration and academic support.

• Special thanks for Palestinian contractors, consultants and owners for their

participation in filling the questionnaire and getting the information of case

studies.

• Finally I would like to give my special thanks for my parents and wife whose

patience and love, enabled me to complete this work.

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Abstract

Construction industry is considered as one of the most important industries in Palestine. It

is well known that most construction projects in Gaza Strip exposed to time and cost

overrun or both. This phenomena may affect the progress of construction industry in

Gaza Strip as well as may expose many institutions of construction to be destroyed.

Literatures of previous studies were classified into two main parts which are: (1) factors

influencing time overruns of project; (2) factors influencing cost overrun. Most related

researches were revised which included the study of these factors in many countries.

The aim of this research is to assess factors influencing time and cost overruns on

construction projects in Gaza Strip. The objectives of the study were achieved through

two approaches, the first one was a valid questionnaire that was obtained from

contracting companies, consultants, and owners in Gaza Strip. The second by studying

five cases with five projects exposed to time and cost overrun.

The study clarified that “Strikes, Israeli attacks and border closures" was the most critical

factor that influence project delay. The survey also indicated that "material- related

factors" occupied the second rank in importance, where "the lack of materials in markets"

and "delay in materials delivery to the site" were among the most important factors

affecting delay.

The study illustrated that "prices fluctuations of constructions materials" which was due

to border closure was one of the most important factors that may lead to cost overrun.

Also it clarified that contractor's delay of material delivery and equipment have led to

cost overrun. The study also clarified that prices inflation highly contributes to cost

overrun.

The study recommended owners, contractors, and consultants to hold their

responsibilities to avoid any delay or cost overrun which could be achieved by good

management of the project and finding new methods for storing the needed materials

from the beginning of the project. The study also recommended the government to adopt

laws through Palestinian legislative council to prevent materials monopoly. Also it

recommended the government with the necessity of dealing with new entrances such as

Rafah entrance to guarantee material transfer into Gaza Strip.

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ملخص البحث

تعتبر صناعة اإلنشاءات أحد أهم الصناعات في فلسطين، وأنه أصبح من المعروف أن معظم مشاريع اإلنشاءات في

دم صناعة . قطاع غزة تتعرض للتأخير أو لزيادة التكلفة أو لهما معًا ى تق ؤثر عل أنها أن ت لذلك فإن هذه الظاهرة من ش

.عديد من المؤسسات المعنية باإلنشاءات إلى االنهياراإلنشاءات في قطاع غزة، آما قد تعرض ال

: وقد انقسمت المراجعة األدبية للدراسات السابقة في هذا المجال إلى قسمين رئيسيين وهما

.العوامل التي تؤثر على حدوث التأخير للمشاريع الهندسية) 1(

. العوامل التي تؤثر على زيادة تكلفة المشاريع الهندسية) 2(

دول ولقد د من ال إن الهدف الرئيسي للبحث هو . تمت مراجعة هذه البحوث والتي شملت دراسة هذه العوامل في العدي

ة مشاريع اإلنشاءات في قطاع غزة ى . دراسة العوامل التي تؤثر على زيادة المدة الزمنية وتكلف م الوصول إل د ت ولق

تم استالمها من شرآات المقاوالت ، المكاتب االستشارية األول وهو استبانه صالحة : أهداف الدراسة من خالل أمرين

أخير " أي خمس مشاريع" والمؤسسات المالكة في قطاع غزة، والثاني عبر دراسة خمس حاالت دراسية تعرضت للت

.وزيادة التكلفة

ى "أوضحت الدراسة أن ررة عل ابر واإلضرابات المتواصلة واالجتياحات اإلسرائيلية المتك " قطاع غزة إغالق المع

واد ق بم ي تتعل ل الت ا أوضحت الدراسة أيضًا أن العوام اريع، آم أخير المش ى ت ؤثر عل ي ت ل الت م العوام ن أه ان م آ

أخ واد في األسواق وأيضًا الت واد ياالنشاء احتلت المرآز الثاني في األهمية ، حيث أن ندرة وجود الم د الم ر في توري

.على حدوث التأخيرللموقع آانا من أهم العوامل التي تؤثر

ابر "أظهرت الدراسة أيضًا أن ى " تذبذب أسعار مواد اإلنشاء بسبب إغالق المع ؤدي إل ي ت م األسباب الت ان من أه آ

ا أظهرت الدراسة أيضًا أن . زيادة التكلفة ة للمشروع "آم دات الالزم ام والمع واد الخ د الم اول في توري أخير المق " ت

دًا .تؤدي إلى زيادة تكلفة المشروع ر ج واد االنشاء يساهم بشكل آبي أوضحت الدراسة أيضًا أن التضخم في أسعار م

.في زيادة التكلفة

أخير أو ادي حدوث أي ت ة لتف ئولياتهم المختلف ك بتحمل مس اول واالستشاري والمال د أوصت الدراسة آل من المق وق

روع و إ ليمة للمش ق اإلدارة الس ن طري ك ع روع، وذل ة للمش ادة تكلف ة زي واد الالزم زين الم دة لتخ رق جدي اد ط يج

انون الفلسطيني من أجل . للمشروع منذ بدايته وقد أوصت الدراسة بسن قوانين من خالل المجلس التشريعي ضمن الق

ح لضمان . منع احتكار المواد ر رف ل معب دة مث ابر جدي ة بضرورة التعامل مع مع وأيضا أوصت الدراسة الحكوم

. اع غزةدخول المواد إلى قط

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Table of Contents

CHAPTER ONE : INTRODUCTION ........................................................................................... 1 1.1 Construction industry background ......................................................................... 1 1.2 Time and cost overruns in Gaza Strip ................................................................... 2 1.3 Research problem ..................................................................................................... 3 1.4 Research aim ............................................................................................................. 4 1.5 Research objectives .................................................................................................. 4 1.6 Limitation and Assumptions ................................................................................... 4

CHAPTER TWO: LITERATURE REVIEW ................................................................................. 5 2.1 Definition of time and cost overruns .................................................................................... 5

2.1.1 Time overruns ............................................................................................................... 5 2.1.2 Cost overruns ................................................................................................................ 5

2.2 Types of delay ...................................................................................................................... 6 2.2.1 Excusable delays ........................................................................................................... 7

2.2.1.1 Changes ................................................................................................................. 7 2.2.1.2 Differing Site Conditions ...................................................................................... 8

2.2.2 Concurrent delays ......................................................................................................... 8 2.2.3 Compensable delays ..................................................................................................... 9 2.2.4 Critical delays ................................................................................................ 10

2.3 Delay responsibility ............................................................................................... 10 2.4 Causes of time and cost overruns ....................................................................................... 10

2.4.1 Causes of time overruns (delay) ................................................................................. 10 2.4.2 Identifying factors that influence cost overruns .......................................................... 16

2.5 Delay mitigation in the construction industry .................................................................... 27 2.6 Time variance for building projects ................................................................................... 28

2.6.1 Discussion on the major causes contributing to time variance .................................... 28 2.6.1.1 Policy-related Causes .......................................................................................... 28 2.6.1.2 Owner-related Causes .......................................................................................... 29 2. 6.1.3 Design-related Causes ......................................................................................... 29 2.6.1.4 Contractor-related Causes ................................................................................... 29 2.6.1.5 Consultant-related Causes ................................................................................... 30

2.7 Time and cost overruns in Gaza Strip ................................................................................ 30 CHAPTER THREE: METHODOLOGY ...................................................................................... 32

3.1 Introduction ........................................................................................................................ 32 3.2 Research strategy ............................................................................................................... 32 3.3 Research design .................................................................................................................. 32 3.4 Population .......................................................................................................................... 34 3.5 Sample Size Determination ................................................................................................ 34 3.6 Research Location .............................................................................................................. 36 3.7 Methodology used in previous studies ................................................................ 37 3.8 Methodology of this thesis .................................................................................... 41

3.8.1 Questionnaire approach ................................................................................ 41 3.8.2 Case Studies ................................................................................................... 41

3.9 Questionnaire design ............................................................................................. 41 3.9.1 Factors added from the researcher experience ........................................................... 42

3.10 Questionnaire content ....................................................................................................... 43 3.10.1 Organization profile .................................................................................................. 43 3.10.2 Factors influencing time overruns at construction project ........................................ 44 3.10.3 Factors influencing cost overruns ............................................................................. 44

3.11 Pilot study......................................................................................................................... 44 3.11.1 Notes of Part A (organization profile) ...................................................................... 45 3.11.2 Notes of part B (Factors influencing time overruns) ................................................ 45 3.11.3 Notes of part C (Factors influencing cost overruns) ................................................. 45

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3.12 Data Measurement ........................................................................................................... 46 3.13 Statistical Validity of the Questionnaire .......................................................................... 46

3.13.1 Criterion Related Validity ......................................................................................... 47 3.13.2 Structure Validity of the Questionnaire .................................................................... 47

3.14 Reliability of the Research ............................................................................................... 47 3.14.1 Cronbach’s Coefficient Alpha .................................................................................. 48

3.15 Process of data and analysis ............................................................................................. 49 CHAPTER FOUR: RESULTS AND DISCUSSION .................................................................... 50

4.1 Introduction ............................................................................................................. 50 4.2 Part A: Population characteristics ........................................................................ 50

4.2.1 Type of respondents organization ............................................................... 50 4.2.2 Type of work executed by the respondents organization ......................... 51 4.2.3 Respondents designation .............................................................................. 52 4.2.4 Experience of respondents ........................................................................... 53 4.2.5 Location of organization ............................................................................... 54 4.2.6 Cost of projects executed by the organization ........................................... 54 4.2.7 Number of constant employees ................................................................... 55

4.3 Part B: Factors influencing time overruns at construction projects ............... 56 4.3.1 Group1: Project related factors ................................................................... 56 4.3.2 Group2: Contractor's responsibilities .......................................................... 60 4.3.3 Group3: Consultant's responsibilities .......................................................... 66 4.3.4 Group 4: Owner's responsibilities ................................................................. 70 4.3.5 Group 5: Professional management factors ............................................... 74 4.3.6 Group 6: Design and documentation factors ............................................. 78 4.3.7 Group 7: Materials related factors ............................................................... 82 4.3.8 Group 8: Execution related factors ............................................................. 85 4.3.9 Group 9: Labour and equipments factors ................................................... 89 4.3.10 Group 10: Contractual relationship factors ................................................ 92 4.3.11 Group 11: Government relations factors .................................................... 95 4.3.12 Group 12: External factors ........................................................................... 97 4.3.13 Ranking of all factors influencing time overruns (delay) from point view of contractors, consultants and owners ...... 101 4.3.14 Comparison among contractor, consultant and owner regarding to the important factors of time overruns ...................................................................................................... 106 4.3.15 Ranking of factors influencing time overruns from point view of all respondents of contractors, consultants and owners. .................................................................................. 108

4.4 Groups influencing time overruns at construction projects .............................................. 112 4.4.1 Materials ................................................................................................................... 112 4.4.2 External Factors ........................................................................................................ 112 4.4.3 Professional management ........................................................................... 113 4.4.4 Owner's responsibilities .............................................................................. 113 4.4.5 Contractual relationship .............................................................................. 114 4.4.6 Consultant's responsibilities ....................................................................... 114 4.4.7 Government relationship ............................................................................ 114 4.4.8 Contractor's responsibilities ........................................................................ 115 4.4.9 Execution ...................................................................................................... 115 4.4.10 Design and documentation ......................................................................... 116 4.4.11 Labour and equipment ................................................................................ 116 4.4.12 Project ........................................................................................................... 116

4.5 Factors influencing cost overruns at construction projects ............................. 117 4.5.1 Contractors view .......................................................................................... 119 4.5.2 Consultants view ......................................................................................... 121 4.5.3 Owners view ................................................................................................ 123 4.5.4 Ranking of factors influencing cost overruns from point view of all respondents of contractors, consultants and owners. .................................................................................. 125

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4.6 Degree of agreement among the Owners, Contractors, and Consultants for time and cost overruns groups ....................................................................................................................... 127

CHAPTER FIVE: CASE STUDIES .......................................................................................... 130 5.1 Case study No 1: Construction of AL - Jnena clinic center ............................................. 130

5.1.1 Project background ................................................................................................... 130 5.1.2 Project History .......................................................................................................... 131

5.1.2.1 Bidding stage ..................................................................................................... 131 5.1.2.2 Evaluation stage................................................................................................. 132 5.1.2.3 Awarding stage .................................................................................................. 132

5.1.3 Assessment ............................................................................................................... 132 5.1.3.1 Contractor opinion ............................................................................................. 132 5.1.3.2 Consultant opinion ............................................................................................ 133 5.1.3.3 Owner opinion ................................................................................................... 133 5.1.3.4 Comments .......................................................................................................... 134 5.1.3.5 Researcher opinion ............................................................................................ 134

5.2 Case study No 2: Construction of financial ministry building in Gaza Strip ................... 134 5.2.1 Project background .................................................................................................... 134 5.2.2 Project History ............................................................................................. 135

5.2.2.1 Bidding stage ..................................................................................................... 135 5.2.2.2 Evaluation stage................................................................................................. 136 5.2.2.3 Awarding stage .................................................................................................. 136

5.2.3 Assessment ............................................................................................................... 137 5.2.3.1 Contractor opinion ............................................................................................. 137 5.2.3.2 Consultant opinion ............................................................................................ 137 5.2.3.3 Owner opinion ................................................................................................... 138 5.2.3.4 Comments .......................................................................................................... 138 5.2.3.5 Researcher opinion ............................................................................................ 139

5.3 Case study No 3: Extension work of two elementary schools in Khanyonis ................... 139 5.3.1 Project background ................................................................................................... 139 5.3.2 Project History .......................................................................................................... 140

5.3.2.1 Bidding stage ..................................................................................................... 140 5.3.2.2 Evaluation stage ............................................................................................... 141 5.3.2.3 Awarding stage ................................................................................................. 141

5.3.3 Assessment ............................................................................................................... 142 5.3.3.1 Contractor opinion ............................................................................................. 142 5.3.3.2 Consultant opinion ............................................................................................ 142 5.3.3.3 Owner opinion ................................................................................................... 143 5.3.3.4 Comments .......................................................................................................... 143 5.3.3.5 Researcher opinion ............................................................................................ 143

5.4 Case study No 4: Construction of distribution ware stores houses for the ministry of social affairs ...................................................................................................................................... 144

5.4.1 Project background ................................................................................................... 144 5.4.2 Project History .......................................................................................................... 145

5.4.2.1 Bidding stage ..................................................................................................... 145 5.4.2.2 Evaluation stage ............................................................................................... 145 5.4.2.3 Awarding stage .................................................................................................. 146

5.4.3 Assessment ............................................................................................................... 146 5.4.3.1 Contractor opinion ............................................................................................. 146 5.4.3.2 Ministry of social affairs opinion ...................................................................... 147 5.4.3.4 Comments ........................................................................................................... 147 5.4.3.5 Researcher opinion ............................................................................................ 148

5.5 Case study No 5: Developing International Roads in Umm Al Naser ............................. 148 5.5.1 Project background ................................................................................................... 148 5.5.2 Project History .......................................................................................................... 149

5.5.2.1 Bidding stage ..................................................................................................... 149

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5.5.2.2 Evaluation stage................................................................................................. 149 5.5.2.3 Awarding stage ................................................................................................... 150

5.5.3 Assessment ............................................................................................................... 150 5.5.3.1 Contractor opinion ............................................................................................. 150 5.5.3.2 Consultant opinion ........................................................................................... 151 5.5.3.3 Owner opinion ................................................................................................... 152 5.5.3.4 Comments .......................................................................................................... 152 5.5.3.5 Researcher opinion ............................................................................................ 153

5.6 Summary of case studies .................................................................................................. 153 CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS .......................................... 154

6.1 Introduction ..................................................................................................................... 154 6.2 Conclusions ...................................................................................................................... 154

6.2.1 Factors influencing time overruns (delay) ................................................................. 154 6.2.1.1 Project related factors ........................................................................................ 154 6.2.1.2 Contractor's responsibilities................................................................................ 155 6.2.1.3 Consultant's responsibilities .............................................................................. 155 6.2.1.4 Owner's responsibilities ..................................................................................... 155 6.2.1.5 Professional management .................................................................................. 156 6.2.1.6 Design and documentation ................................................................................ 156 6.2.1.7 Materials related factors .................................................................................... 156 6.2.1.8 Execution related factors ................................................................................... 157 6.2.1.9 Labour and equipment ....................................................................................... 157 6.2.1.10 Contractual relationship ................................................................................... 157 6.2.1.11 Government relationship .................................................................................. 157 6.2.1.12 External factors ................................................................................................ 157

6.2.2 Top ten factors which cause time overruns according to contractors, consultants and owners views ...................................................................................................................... 158 6.2.3 Groups influencing time overruns ............................................................................ 159 6.2.4 Factors influencing cost overruns ............................................................................. 159 6.2.5 Comparison between the results of questionnaire and the results of case studies .... 161

6.3 Recommendations ............................................................................................................ 161 6.3.1 Contractors should give special attention to the following factors ........................... 161 6.3.2 Owners should consider the following factors .......................................................... 163 6.3.3 Consultants should look to the following points ....................................................... 163 6.3.4 Government and the high policies agencies of Gaza Strip ....................................... 164

References ................................................................................................................................... 165 Annex 1: The results of validity test of all categories of questionnaire ..................................... 171 Annex 2: Questionnaire in English ............................................................................................. 184 Annex 3: Questionnaire in Arabic .............................................................................................. 195

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List of Tables

Table 2.1 :Variables influencing time, and/or cost control in Indonesia ………………………..……………11

Table 2.2 : Factors that influencing cause time overruns …………………………………………...………...13

Table 2.3 : Factors influencing time overruns ………………………………………………………………. 19

Table 2.4 : Factors influencing cost overruns ………………………………………………………………....26

Table 3.1 : Factors of time and cost overruns added by researcher experience……………………………....42 Table 3.2 : Notes of part B of the questionnaire ……………………………………………………………....45

Table 3.3 : Notes of part C of the questionnaire ……………………………………………………………....46

Table 3.17 :Correlation coefficient of Questionnaire and the total of this field at N= 124 …………………...47

Table 3.18 : Cronbach's Alpha for each Category of time overruns of the questionnaire and all the questionnaire…………………………………………………………………………………………………….48 Table 3.19 : Cronbach's Alpha for each Parts of time and cost overruns of the questionnaire and all the questionnaire …………………………………………………………………..…………………….…………49

Table 4.1 : Experience of respondents (years) …………………………………………………....…………..53

Table 4.2 : Project related factors that lead to time overruns ………………………………………...………57

Table 4.3 : Correlation test of project group among contractor, consultant and owner ……………………..60

Table 4.4 : Contractors responsibilities factors that lead to time overruns ………………………….……….61

Table 4.5 : Correlation test of contractor responsibility group between contractor, consultant and owner....66

Table 4.6 : Consultants responsibilities factors that influencing time overruns ………………………............67

Table 4.7 : Correlation test of consultant responsibility group between contractor, consultant and owner ...70

Table 4.8 : Owner's responsibilities Factors that influencing time overruns ………………………………...71

Table 4.9 : Correlation test of owner responsibility group among contractor, consultant and owner .……...74

Table 4.10: Professional management factors that lead to time overruns……………...……………………...74

Table 4.11: Correlation test of professional management group among contractor, consultant and owner…78

Table 4.12 : Design and Documentation factors that influencing time overruns ………………...…………..79

Table 4.13: Correlation test of design and documentation group among contractor, consultant and owner ..81

Table 4.14 : Materials related factors that lead to time overruns …………………………...………………...83

Table 4.15: Correlation test of materials group among contractor, consultant and owner …………….........85

Table 4.16 : Execution related factors that lead to time overruns ……………………………………….…...87

Table 4.17: Correlation test of execution group among contractor, consultant and owner …….....................89

Table 4.18 : Factors influencing time overruns (Labor and equipments factors) ……………….…………..89

Table 4.19: Correlation test of labour and equipment group between contractor, consultant and owner .92

Table 4.20 : Contractual relationship factors that lead to time overruns …………………………..………..93

Table 4.21 : Correlation test of contractual relationship group among contractor, consultant and owner ...95

Table 4.22 : Government relations factors that influence time overruns ………………...………………….96

Table 4.23: Correlation test of government relations group among contractor, consultant and owner …...97

Table 4.24 : External factors that lead to time overruns ……………………………………...……………...98

Table 4.25: Correlation test of external factors group among contractor, consultant and owner …….…..100

Table 4.26 : Factors influencing time overruns from point view of contractors, consultants and owners.101

Table 4.27: Correlation test of time overruns group between contractor, consultant and owner…….…...106

Table 4.28: The most important factors of time overruns ………………………………..……………..…..106

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Table 4.29: Factors influencing time overruns due to the point view of all respondents (contractors, consultants

and owners) ………………………..……………………………………………………………………….…..108

Table 4.30 : Groups influencing time overruns at construction projects …………………………………..….112

Table 4.31 : Factors influencing cost overruns from point view of contractors, consultants and owners …...117

Table 4.32: Correlation test of cost overruns group among contractor, consultant and owner ………………125

Table 4.33: Factors influencing cost overruns due to the point view of all respondents (contractors, consultants

and owners) …………………….………………………………………………..…………………………… 125

Table 4.34: Kendall's Coefficient of Concordance ……………………………………….………………........128

Table 5.1: The characteristics of construction of AL – Jnena clinic center ………………….…………...……128

Table 5.2 :The characteristics of the participated companies of project No. 1……………………..…….…....132

Table 5.3 :The characteristics of construction of financial ministry building in Gaza Strip ……………..…...135

Table 5.4: The characteristics of the participated companies of project No. 2 …………..………………........136

Table 5.5: The characteristics of extension work of two elementary schools in Khanyonis ……...…….….....139

Table 5.6 :The characteristics of the participated companies of project No. 3 ………………..………..……..141

Table 5.7: The characteristics of construction of distribution ware houses for the ministry of social affairs .144

Table 5.8: The characteristics of the participated companies of project No.………………………………….146

Table 5.9: The characteristics of the project of case study No. 5 …………………………..……...…….…….148

Table 5.10: The characteristics of the participated companies of project No. 5 ……...…...……………..…...150

Table 5.11: Summary of cases studies information ……………………..……………………………..............153

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List of Figures

Figure 2.1: Sequential relationships of various categories of delays…….………...……………………...…6

Figure 3.1: Methodology flowchart……………………………...…….…………..………………………33

Figure 3.2: Response rates among the three types of population……….……...…….……………………..36

Figure 4.1: Type of respondents` organization ………………………………..…....………………………50

Figure 4.2: Type of work executed by the respondents contractors…………….....……………………….51

Figure 4.3: Type of work executed by the respondents owners…………………...………………………..51

Figure 4.4: Type of work executed by the respondents consultants………………………………………..52

Figure 4.5: Respondents and designation ………………………………………...………………………..53

Figure 4.6: Location of organization .. ……………………….……………………………………………54

Figure 4.7: Cost of projects implemented by the organization (million $).………………………………55

Figure 4.8: Number of constant employees at Organization ……………..……….…................................56

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List of Abbreviation

CPM Critical Path Method

UNDP United Nations Development Program

PECDAR Palestinian Economic Council for Development and Reconstruction

PNA Palestinian National Authority

PCU Palestinian Contractors Union

BOQ Bill Of Quantities

SPSS Statistical Package for Social Science

Strikes Means strikes due to national mourning.

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CHAPTER ONE : INTRODUCTION

1.1 Construction industry background The construction industry is the total through which physical development is achieved,

and that is truly the locomotive of the national economy. The more resources,

engineering, labor, materials, equipment, capital, and market exchange are provided from

within the national economy, the higher the factor of the extent of self reliance. The

increasing complexity of infrastructure projects and the environment within which they

are constructed place greater demand on construction managers to deliver projects on

time, within the planned budget and with high quality (Enshassi et al 2003).

Since 1993, the year when Oslo Peace Accords have been signed in Norway, Palestinian

occupied territories have undergone a rapid pace of reconstruction of infrastructure which

had been demolished through thirty years of occupation. In spite of lack of resources and

technologies, hundreds of infrastructure, residential, and governmental projects were

implemented (MAP Overview 2002).

The successful execution of construction projects and keeping them within estimated cost

and prescribed schedules depend on a methodology that requires sound engineering

judgment. To the dislike of owners, contractors and consultants, however, many projects

experience extensive delays and thereby exceed initial time and cost estimates. This

problem is more evident in the traditional or adversarial type of contracts in which the

contract is awarded to the lowest bidder- the awarding strategy of the majority of public

projects in developing countries including Gaza Strip.

Although the construction industry in the Middle East has suffered ever since the Gulf

war, recent events in the region coupled with the restructuring of economies, joining

regional and global free trade organizations, and attracting foreign investments are

expected to yield an unprecedented growth in the construction activities (Odeh and

Battaineh 2002).

Therefore, improving construction efficiency by means of cost-effectiveness and

timeliness would certainly contribute to cost savings for the country as a whole. Efforts

directed to cost and time effectiveness were associated with managing time and cost,

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which in this study were approached via investigating time and cost overruns of

construction projects in Gaza Strip. Unlike the developed countries, Palestine does not

have a mature construction industry consisting of well-established contracting and

consulting companies. Much of the building and construction is done by the informal

sector. This consists of individuals building family shelters, water wells and the like. The

formal sector consists of public and private domestic contractors (Enshassi et al 2003).

1.2 Time and cost overruns in Gaza Strip One of the main objectives and policies of any public or private sectors dealing with the

execution of projects is to upgrade projects performance, through reduction of costs,

completion of projects within their assigned budget and time constraints, and improve

quality. Construction industry in Gaza Strip is suffering from many problems which

affect time, cost and quality, these factors related to political situation and techniques

used in Gaza Strip, these problems are summarized as following:

• Large number of workers in comparison to the number of projects ( the large number of

unemployed labour in Gaza Strip);

• Borders closure and shortage of materials in markets;

• Dependency on Israel and other countries in getting construction materials;

• Continued increase in material prices;

• Dependency on donor countries to get the fund of implemented projects in Gaza Strip;

• Unstable economic situation and its correlation with Israeli one;

• Unstable political situation.

These factors above and others contributed to large proportion in making many problems

in construction industry which usually related to time and cost overruns.

Enshassi et al (2003) found that the financing group of delay factors was ranked the

highest by all three parties and the environment group was ranked the lowest. In order to

improve the situation , there is a need to pay more attention to the financial issues in the

local construction industry, and there is a need for better communication and

coordination with international funding agencies. There is also an urgent need to develop

human resources in the construction industry in Palestine. The construction industry in

Palestine should also adopt innovative management techniques, team building and value

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engineering in order to be more efficient and effective. A constructive team building

approach between owners, consultants and contractors will reduce delays and improve

the quality of the work.

Delay of project and cost overruns in Gaza Strip is one of most important problems at

construction management field, also research and studies in this field in Palestine are few

compared to worthy expected results. Despite the importance and the significance of the

construction sector in Palestine. It is noted that the parties of project (owner, consultant,

and contractor) don’t give the time and cost overruns the importance at the evaluation at

the end of project.

This shortage of time and cost overruns control may be as a result of;

• Lack of knowledge and awareness about project performance;

• The distribution of delay and cost overruns responsibilities between the three parties

(contractors, consultants and owners);

• They believe that the political conditions is the main reason of this problem.

The problem of projects delay and cost overruns can nearly be noticed in every project at

Gaza Strip indicating that this problem didn't receive enough attention by both researches

and responsible authorities.

1.3 Research problem Project finishing on time and absence of cost overruns are considered the most important

factors of successful projects, which help to decrease problems for all parties and give

new chances to construct another related projects. It also helps to increase the profits and

development of construction industry in Gaza Strip. Most construction projects in Gaza

Strip are exposed to delay to the extent that it may extend to the double period of time

specialized for that project, causing loss of project's profit, increasing cost and leading to

technical and managerial problems between project's parties. Cost overruns is also

considered another a big problem, which hinders project's progress, since it decreases the

contractor profit leading to huge losses leaving the project in a big trouble.

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This problem is a result of hard political situation in Gaza Strip, reliance on Israeli

borders to get materials inside the country, weak economy, lack of managerial skills, bad

labor productivity, bad planning, increasing the prices of materials, environment, type of

project and others. For that it is of key importance to exert the utmost effort to

accomplish such study, to detect the previously mentioned factors and to treat all the

weakness points and from all sides, and so giving specific priorities in order to avoid time

and cost overruns at construction projects.

1.4 Research aim The aim of this research is to assess factors influencing time and cost overruns on

construction projects in Gaza Strip.

1.5 Research objectives 1. To identify variables influencing construction time and cost overruns and to evaluate

their relative importance.

2. Investigate the collective group perspectives on the relative significance of these

factors from owner, consultant, and contractor point view.

3. To evaluate the magnitudes of the time delay, and cost increases.

4. To evaluate the degree of agreement /disagreement regarding the ranking of these

factors.

5. To conduct several practical case studies.

6. To formulate recommendations for improving construction performance.

1.6 Limitations and Assumptions This research included the following limitations:

1. The study included the factors influencing time and cost overruns in Gaza Strip

only.

2. Literature on delay and cost overruns in Palestine is very limited.

3. The duration of research from April 2007 to Feb. 2008 lied in a very complex

political situation in Gaza Strip. Most of construction projects in Gaza Strip have

been suspended and funding from funding agencies has stopped since July 2007,

due to borders closures and continuing Israeli attacks.

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CHAPTER TWO: LITERATURE REVIEW

One of the most important problem in the construction industry is time and cost overruns.

Time and cost overruns occur in every construction project and the magnitude of these

delays and cost overruns varies considerably from project to project. So it is essential to

define the actual causes of time and cost overruns in order to minimize and avoid the

delays and increasing cost in any construction project. This chapter reviews literature

concerning the major issues of time and cost overruns in order to recognize the related

information regard those issues.

2.1 Definition of time and cost overruns

2.1.1 Time overruns Time overruns is defined as the extension of time beyond planned completion dates

traceable to the contractors (Kaming et al 1997). Delays are incidents that impact a

project’s progress and postpone project activities, delay causing incidents may include

weather delays, unavailability of resources, design delays, etc. In general, project delays

occur as a result of project activities that have both external and internal cause and effect

relationship (Vidalis et al 2002).

Choudhry (2004) and Chan (2001), defined the time overruns as the difference between

the actual completion time and the estimated completion time. It was measured in number

of days. Project delays are those that cause the project completion date to be delayed

(Al- Gahtani and Mohan 2007). From above, time overruns is defined as the time

increased to complete the project after planed date which caused by internal and external

factors surrounded the project.

2.1.2 Cost overruns

Cost overrun is defined as excess of actual cost over budget. Cost overrun is also

sometimes called "cost escalation," "cost increase," or "budget overrun." (Zhu et al 2004).

Cost overrun is defined as the change in contract amount divided by the original contract

award amount .This calculation can be converted to a percentage for ease of comparison

(Jackson' 1990).

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Cost overrun = Final Contract Amount – Original Contract Amount

Original Contract Amount

Choudhry (2004) defined the cost overruns as the difference between the original cost

estimate of project and actual construction cost on completion of works of a commercial

sector construction project.

2.2 Types of delay

The main types of delay have been stated by a number of researchers (Vidalis et al 2002),

Ahmed et al (2003), Alaghabri et al (2007) and Al- Gahtani and Mohan (2007). Theses

types are Excusable delay, Concurrent delay , Compensable delay, and Critical delay.

The types of delays above have internal or external impacts on project process. Internal

causes of delay include causes that come from the owner, designers, contractors, and

consultants. External causes of delays are originated from outside of construction projects

such as utility companies, government, subcontractors, suppliers, labor unions, nature,

etc. Figure 1 presents sequential relationships of various categories of delays (Vidalis et

al 2002).

Figure 2.1: Sequential relationships of various categories of delays (Vidalis et al, 2002)

Excusable Delays Non- Excusable Delays

Concurrent Non – Concurrent

Compensable Non- Compensable Critical Non-Critical

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2.2.1 Excusable delays

Excusable delays are unforeseeable events beyond anyone’s control. They are broken

down further into compensable or non-compensable delays. If the delay is considered

compensable, then the contractor is entitled to additional financial compensation as well

as extra project time. Under certain circumstances where non-compensated excusable

delays occur, the contractor receives extra time but not extra money for the additional

completed work. Excusable delays, known as “force majeure” delays, and commonly

called “acts of God” because they are not the responsibility or fault of any particular

party. Most contracts allow for the contractor to obtain an extension of time for excusable

delays, but not additional money (Alaghbari et al 2007).

Owner-issued contracts specifically address some potential compensable delays and

provide equitable adjustments. The usual equitable adjustment clauses in owner issued

contracts that apply to delay are: Changes, differing site conditions, and suspension. The

changes clause in owner-issued contracts provides that equitable adjustments may be

considered as follows:

2.2.1.1 Changes

With the help of a written change notice, the owner may, without any notice to the

sureties (if any), unilaterally make any change, at any time in the work within the general

scope of the contract, including but not limited to changes:

• In the drawings, designs or specifications.

• In the method, manner or sequence of contractor’s work.

• In customer or owner furnished facilities, equipments, materials, services or site(s).

• Directing acceleration or de acceleration in the performance of the work.

• Modifying the contract schedule or the contract milestones.

If at any time contractor believes that acts or omissions of customer or owner constitute a

change to the work not covered by a change notice, contractor shall within ten (10)

calendar days of discovery of such act or omission, submit a written change notice

request, explaining in detail the basis for the request. Owner may either issue a change

notice or deny the request in writing. If any change under this clause causes directly or

indirectly an increase or decrease in the cost, or the time required for the performance of

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any part of the work, whether or not changed by any order, an equitable adjustment shall

be made and the contract will be modified accordingly (Ahmed et al 2003).

The clause recognizes that changes in the work or changes in the method or manner of

performance may require changes in the schedule and schedule milestones and this could

further necessitate revisions in activity durations, sequence of work items, or

interrelationships of various tasks. These changes may have a direct impact on the

schedule, as where a change in method requires a greater or lesser period of performance

or its effects may be subtler, as where the change merely rearranges priorities. In addition

to a time extension, the contract’s clause provides compensation for any delay resulting

from a contract change by allowing an equitable adjustment for the increased cost of the

performance of the work caused by the change (Ahmed et al 2003).

2.2.1.2 Differing Site Conditions

The portion of the clause addressing cost or time adjustments for ‘differing site

conditions’ provide. If such conditions do differ in material and thus cause an

increase/decrease in the Contractor’s cost or time required for performance of the work,

an equitable adjustment will be made pursuant to the General Condition titled “Changes”.

No claim of the contractor under this clause will be allowed unless the contractor has

given the required notice. The main intention is to leave the contractor neither damaged

nor enriched because of the resultant delay ( Al-Gahtani and Mohan, 2007 ).

The differing site conditions clause must not be confused with the site conditions clause

in owner issued contracts - the so-called “Exculpatory” clause. Its intent is to disallow

any claims for delays relating to conditions at the site, which the contractor should have

anticipated. The exceptions are limited to those conditions defined in the differing site

conditions clause (Ahmed et al 2003).

2.2.2 Concurrent delays

If only one factor is delaying construction, it is usually fairly easy to calculate both the

time and money resulting from that single issue. A more complicated – but also more

typical – situation is one in which more than one factor delays the project at the same

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time or in overlapping periods of time. These are called concurrent delays (Alaghbari et

al 2007).

Concurrent delays occur when both owner and the contractor are responsible for the

delay. Generally, if the delays are inextricably intertwined, neither the contractor can be

held responsible for the delay (forced to accelerate, or be liable for liquidated damages)

nor can he recover the delay damages from the owner. Until the development of CPM

schedule analysis, there was no reliable method to differentiate the impact of contractor

caused delays from owner-caused delays. With the sophisticated computerized techniques

now available, however, it has become possible to segregate the impacts of apparently

concurrent owner and contractor delays (Alwi et al 2002).

In analyzing a delay claim, an analysis based on a comparison of the contractor’s

approved CPM schedule with the as-built CPM schedule should be performed to

apportion proper responsibility for delay. Because the critical path may shift as the job

progresses, it is updated based upon contractually required input from the contractor.

2.2.3 Compensable delays

Compensable delays are those that are generally caused by the owner or its agents. The

most common form of compensable delay is inadequate drawings and specifications, but

compensable delays can also arise from the owner’s failure to respond in a timely fashion

to requests for information or shop drawings, owner’s changes in design or materials, and

owner’s disruption and/or change in the sequence of the work. The contractor is entitled

to both additional money and additional time resulting from compensable delays

(Alaghbari et al 2007).

In addition to the compensable delays that result from contract changes by change notice,

there are compensable delays that can arise in other ways. Such compensable delays are

excusable delays, suspensions, or interruptions to all or part of the work caused by an act

or failure to act by the owner resulting from owner’s breach of an obligation, stated or

implied, in the contract. If the delay is compensable, then the contractor is entitled not

only to an extension of time but also to an adjustment for any increase in costs caused by

the delay (Al-Gahtani and Mohan, 2007).

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Al-Gahtani and Mohan (2007) added another type of delay that is pacing delay:

Pacing delay is deceleration of the project work, by one of the parties to the contract. This

is because of a delay to the end date of the project, caused by the other party. The goal is

to maintain steady progress with the revised project schedule.

2.2.4 Critical delays

Critical delays are delay claims that affect the progress, time, and compensation. Non-

critical delays do not affect the completion date of the project. They affect the succeeding

activities that are not on the critical path of the schedule. This can set back activities if

they do not have a float in the schedule (Abudul-Rahman et al 2006).

2.3 Delay responsibility

Ahmed et al (2003) claimed that the issue of responsibility for delay is related to whether

the contractor is awarded or is liable for costs and additional time to complete the project.

The categories of responsibilities are:

• Owner (or agent) responsible – contractor will be granted a time extension and

additional costs (indirect), where warranted;

• Contractor (or subcontractor) responsible – contractor will not be granted time or costs

and may have to pay damages/penalties;

• Neither party (e.g. “act of God”) responsible – contractor will receive additional time to

complete the project but no costs will be granted and no damages/penalties assessed; and

• Both parties responsible – contractor will receive additional time to complete the

project but no costs will be granted and no damages/penalties assessed.

2.4 Causes of time and cost overruns

2.4.1 Causes of time overruns (delay) Time overruns (delays) can be divided into three categories:

1. Those over which neither party to the contract has any control;

2. Those over which the owner (or his/her representative) has control;

3. Those over which the contractor (or any subcontractor) has control.

The predominant factors influencing time overruns/delays are design changes, poor

labour productivity, inadequate planning and resource shortages. Table 2.1 illustrates the

variables of delay and cost controls, which studied by Kaming et al (1997) in Indonesia.

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Table 2.1 : Variables influencing time, and/or cost control in Indonesia (Kaming et al 1997)

Variables of delays and cost controls

Environment restriction

Experience of project location

Accurate prediction of equipment production rate

Equipment availability

Experience of local regulation

Weather conditions

Variables of time controls

Build ability

Labour productivity

Level of planning

Material availability

Accuracy of materials estimate

Accurate prediction of craftsmen production rate

Skilled labour availability

Locational restriction of the project

Variables of cost controls

Inflation of material cost

Accurate quantity take-off

Experience of project type

Ahmed et al (2003) studied two kinds of cause for delay in construction projects:

(1) External causes; and

(2) Internal causes.

Internal causes of delay include the causes arising from four parties involved in the

project. These parties include the owner, designers, contractors, and consultants. Other

delays, which do not arise from these four parties, are based on external causes for

example from the government, materials suppliers, or the weather.

Chan et al (1996), Ogunlana et al (1996), Kaming et al (1997), Alwi et al (1999), Ahmed

et al (2003) and Alaghbari et al (2007) mentioned the possible following factors causing

delays in construction projects: A number of researcher have categorized the factors that

causing delays in the four categories, those are:

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(1) Contractor’s responsibility

The factors that related to contractor's responsibility are; delay in delivery of materials to

site; shortage of materials on site; construction mistakes and defective work; poor skills

and experience of labour; shortage of site labour; low productivity of labour; financial

problems; coordination problems with others; lack of subcontractor’s skills; lack of site

contractor’s staff; poor site management; and equipments and tool shortage on site.

(2) Consultant’s responsibility

The factors that related to consultant's responsibility are; absence of consultant’s site

staff; lack of experience on the part of the consultant; lack of experience on the part of

the consultant’s site staff; (managerial and supervisory personnel); delayed and slow

supervision in making decisions; incomplete documents; and slowness in giving

instructions.

(3) Owner’s responsibility

The factors that related to owner's responsibility are; lack of working knowledge;

slowness in making decisions; lack of coordination with contractors; contract

modifications (replacement and addition of new work to the project and change in

specifications); and financial problems (delayed payments, financial difficulties, and

economic problems).

(4) External factors:

The factors that related to external factors are; lack of materials on the market; lack of

equipment and tools on the market; poor weather conditions; poor site conditions

(location, ground, etc.); poor economic conditions (currency, inflation rate, etc.); changes

in laws and regulations; transportation delays; and external work due to public agencies

(roads, utilities and public services) (Alghbari et al 2007).

Chan et al (2002), Alwi et al (2002), Assaf (2006), Odeh and Battaineh (2002) and

Alghbari et al (2007) Classified factors that cause time overrun into eight groups (owner,

contractor, consultant, material, labour and equipment, contract, contractual relation ships

and external factors). Table 2.2 illustrated the factors that cause time overruns.

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Table 2.2: Factors that influencing cause time overruns (Alwi et al, 2002)

Category

Factor Owner Finance and payments of completed work.

Owner interference. Slow decision-making by owners. Unrealistic imposed contract duration.

Contractor Subcontractors. Site management . Construction methods. Improper planning. Mistakes during construction. Inadequate contractor experience.

Consultant Contract management. Preparation and approval of drawings. Quality assurance/control. Waiting time for approval of tests and inspections.

Material Quality of material. Shortage in material.

Labor and equipment Labor supply. Labor productivity. Equipment availability and failure.

Contract Change orders. Mistakes and discrepancies in contract documents.

Contractual relationships Major disputes and negotiations. Inappropriate overall organizational structure linking Lack of communication between the parties.

External factors Weather condition Regulatory changes and building Code Problems with neighbors. Unforeseen ground conditions

Ogunlana et al (1996) examined construction delays in a fast- growing economy:

comparing Thailand with other economies. A study of the causes of delays in 12 high rise

building construction projects in Bangkok, Thailand has been made. Resource supply

problems were by far the most acute problems of the construction industry in the boom

years. Projects suffered delays because materials, especially cement, were in short

supply, technical personnel were overstretched, having to do so much so soon in their

careers.

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Demands from construction owners for frequent changes also created design and

coordination problems for field staff. The result was that many projects were poorly

managed and exceeded time forecasts. The results of the survey have also been compared

with studies from other developing economies. Contractors working in developing

economies work under special constraints which are not as serious in developed

countries. This class of problem requires focused strategy by a national agency working

in concert with participants in the construction industry towards their solution.

Al- Khalil and Al-Ghafly (1999) assess the frequency of project delay in water and

sewage projects, the extent of the delay, and the party responsible for the delay. They

found that a large number of projects experience delay, especially in medium- and large-

size projects.

Owners and consultants assigned the major responsibility for delay to the contractor but

the contractor placed it mostly on the owner. On average, the contractor is assigned most

responsibility, but when considering that part of the responsibility of the consultant and

others may be transferable to the owner, the owner may carry the prime responsibility for

delay. It may also be argued that the contractor is not primarily responsible because of the

high rate of approval for contractors' requests for time extension.

Aibinu and Jagboro (2002), in their study of the growing problem of construction delay

in Nigeria, examined the effects of delays on the delivery of construction projects in the

country. Utilizing a questionnaire survey of 61 construction projects, the authors

identified, and assessed the impact of delays on the delivery of construction projects.

Time and cost overruns were found to be frequent effects of delay. Acceleration' of site

activities coupled with improved owners' project management procedures and the

inclusion of an appropriate contingency allowance in the pre contract estimate were

recommended as a means of minimizing the adverse effect of construction delays in

Nigeria.

Odeh and Battaineh (2002) studied the causes of construction delay at traditional

contracts in Jordan, they used questionnaire procedure in this study; the questionnaire

was distributed to a random sample of 100 contractors and 50 consultants. The study

illustrated that; according to contractors, labor productivity was the most important delay

factor. Inadequate contractor experience, however, was the most important delay factor to

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consultants. All parties generally agreed on the ranking of the individual delay factors.

They agreed that inadequate contractor experience, owner interference, and financing of

work were among the top five most important factors. Moreover, delays caused by

subcontractors, slow decision making by owners, improper planning, and labor

productivity were among the top ten most important factors for both parties. Operational

factors such as labor productivity, construction methods, site management, and

equipment availability and failure were important to contractors than to consultants.

Ahmed et al (2003) found that the most common type of delay is excusable compensable

at 48%, followed by non-excusable delays with 44% and 8% for excusable non-

compensable delays. In most of the cases, it is found that when the contractor has the

responsibility, the type of delay respectively is non-excusable; when the responsibility is

the owner’s or the consultant’s it is an excusable compensable delay; and when the

government is responsible, the delay is considered an excusable compensable.

The consultants play a very important roll in design-related delays because as they are in

charge of the design process in conjunction with the owner of the project. On the other

hand, the government plays the most important role in code-related delays. The

contractor has the major responsibility for delays in construction-related delays. Delays

due to financial / economical causes as well as management / administrative causes share

an intermediate position of importance, just presenting one key delay – delayed

payments. These categories do not have the same negative impact on project completion

times as other factors considered in this study such as code, design and construction

related issues (Kessing; 2003).

Based on the findings of the study, the authors would like to recommend that the

buildings permit approval process be streamlined as much as possible and changes in

laws and regulations be made keeping in mind the negative impact it causes in terms of

construction project cost and time. Design related issues such as changes in drawings,

incomplete and faulty specifications and change orders have a very damaging effect on

project completion times and invariably lead to cost escalations as well. These are issues

that can be controlled with proper design process management and timely decision

making. It is a well know fact that decisions made early in the life of a project have the

most profound effect on the project’s objectives of delivering a safe, quality project

within the time and budget allocated (Ahmed et al 2003) .

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Alghbari et al (2007) examined the factors that cause delay in construction projects in

Malaysia. The results of the analysis show that from a total of 31 variables examined,

separated into four categories by responsibility, the major factors causing delay in

construction projects are factors due to the contractor, followed by factors due to the

consultant, factors due to the owner, and finally external factors. The main finding of the

study is that the financial factor is the most influencing factor in causing delay in

construction projects in Malaysia. coordination problems are considered the second

important factor causing delay in construction projects, followed by materials problems.

Further examination of factors causing delay in construction projects in Malaysia based

on four categories – contractor, consultant, owner, and external factors – the study shows

that on the contractor’s side, financial problems are the major factor in delaying

construction projects. Poor site management and, as a consequence, construction

mistakes, delay in the delivery of materials to the site, and coordination problem were the

subsequent factors causing delay in construction projects in Malaysia. The study also

shows that the main factor on the owner’s side causing delay in construction projects is

financial problems. From the consultant’s side, the first component that seems to be the

cause of delay in construction projects is ineffective or lack of supervision, followed by

“slowness in giving instructions” and “lack of consultant’s experience” (Chan et al

2002).

2.4.2 Identifying factors that influence cost overruns Previous research has attempted discover reasons for the disparity between the tender

sum and the final account. This section identifies the factors that influence cost overruns.

Four factors were identified from the existing research findings Morris et al (1990),

Kaming et al (1997) and Chimwaso (2001). These are; design changes, inadequate

planning, unpredictable weather conditions; and fluctuations in the cost of building

materials.

To broaden the investigation it was decided to complement the above list of factors with

other factors gleaned from the final account reports. These were compared with the

factors from the existing research findings, and a final list of 18 factors was prepared.

Those were then divided into two groups of seven critical factors and nine other factors,

which are usually ignored, but perceived to be of equal significance ( Chimwaso; 2001).

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List of critical factors

1.Incomplete design at the time of tender.

2.Additional work at owner's request.

3.Changes in owner's brief.

4.Lack of cost planning/monitoring during pre-and-post contract stages.

5.Site/poor soil conditions.

6.Adjustment of prime cost and provisional sums.

7.Re measurement of provisional works.

8.Logistics due to site location.

9.Lack of cost reports during construction stage.

List of other factors, which are usually ignored

1.Delays in issuing information to the contractor during construction in delays.

2.Technical omissions at design stage.

3.Contractual claims, such as, extension of time with cost claims.

4.Improvements to standard drawings during construction stage.

5.Indecision by the supervising team in dealing with the contractor's queries in delays.

6.Delays in costing variations and additional works.

7.Omissions and errors in the bills of quantities.

8.Ignoring items with abnormal rates during tender evaluation, especially items with

provisional quantities.

9.Some tendering maneuvers by contractors, such as front-loading of rates.

The prime variables of cost overruns have been commonly identified as: unpredictable

weather, inflationary material cost, inaccurate materials estimates, complexity of project,

contractor’s lack of geographical experience, contractor’s lack of project type experience,

and non-familiarity with local regulations (Kaming et al 1997).

Morris (1990) studied the factors influencing cost overruns in public sector projects, he

found that Escalation in costs is attributable partly to the fact that the original estimates

were prepared at the then current prices, and partly to delays which enhance the effect of

inflation and to direct escalation in costs arising out of change in scope, errors etc. Based

on certain assumptions with regard to the pace of expenditure on projects Morris have

roughly computed that for the 133 projects which were studied only about 25 to 30% of

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the cost increase can be attributed to inflation. The remaining 70 to 75% has to be

explained in terms of delays, inefficiencies, scope changes, changes in statutory levies,

variations in exchange rates and to the combined effect of these factors with inflation.

Morris (1990) was mentioned ten factors that influencing cost overruns of construction

projects. These factors are: inadequate project preparation, planning and implementation,

delay in construction as the first cause of cost overruns. The second factor was supply of

raw materials and equipment by contractors. The third one was change in the scope of the

project. The fourth factor of cost overruns was resources constraint: funds, foreign

exchange, power; associated auxiliaries not ready. The delays in decisions making by

government, failure of specific coordinating bodies was the fifth factor. The sixth cause

was wrong /inappropriate choice of site. The seventh one was technical incompetence

and poor organizational structure. the labour unrest was the eighth one. The ninth factor

cause cost overruns was natural calamities, Indo-Pakistan war and the last one was the

lack of experience of technical consultants, inadequacy of foreign collaboration agreements,

monopoly of technology.

Kaming et al (1997) examine the factors influencing construction cost overruns on high-

rise projects in Indonesia, They found that cost overruns occur more frequently and are

thus a more severe problem than time overruns on high-rise construction in Indonesia.

The predominant factors influencing cost overruns are material cost increases due to

inflation, inaccurate materials estimating and degree of project complexity.

Chimwaso (2001) evaluated ten projects to assess their cost performance. The results

have shown that seven out of ten projects had reported cost overruns. The factors that

influence cost overruns have been identified and ranked in order of significance. These

factors have further been classified under categories according to the formal of final

account reports. By classifying them into categories, helps to deal with them effectively.

The four categories arrived at are: variations, measurement of provisional works,

contractual claims and fluctuations in the cost of labour and materials, with variations

being the most significant.

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Frimpongs et al (2002) studied 26 factors that cause cost overruns in construction of

ground water projects in Ghana, they sent to 55 questionnaire to owners, 40 to contractors

and 30 to consultant. According to the contractors and consultants, monthly payments

difficulties from agencies was the most important cost overruns factor, while owners

ranked poor contractor management as the most important factor. Despite some

difference in viewpoint held by the three groups surveyed, there is a high degree of

agreement among them with respect to their ranking of the factors. The overall ranking

results indicates that the three groups felt that the major factors that can cause excessive

groundwater project overruns in developing countries are poor contractor management,

monthly payment difficulties from agencies, material procurement, poor technical

performances, escalation of material prices according to their degree of influence.

The amount of cost- increase (overruns), increased with an increase in the total cost of a

residential project. However, private residence owners who spent more time on the pre-

planning phase spent more money on the design phase; issued less change orders;

selected more experienced contracting companies; and hired a supervising engineer to

independently supervise the progress of work and ensure the delivery of materials –

experienced less and cost – increases during the implementation phase of their residential

projects. A major factor contributing to the sample projects' and cost- increase was the

insufficiency of money and time allocated to its design phase (Koushki et al 2005).

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Table 2.3 illustrate the factors that influencing time overruns which collected from literature review. The factors categorized into eleven groups. Table 2.3 : Factors influencing time overruns

Country where survey was conducted Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza Strip)

New Zealand Malaysia Malaysia

Factors causing project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Contractor's responsibilities Insufficient number of staffs * Spend some time to find sub-contractors company who is appropriate for each task

*

Often changing Sub-contractors Company * Harvest time * low productivity of labour * * * * * Lack of subcontractor's skills * * * * * * Lack of subcontractor's staff * Poor site management * * * * * * Equipments and tool shortage on site * * * * Lack of trades skill * Poor distribution of labour * Mistakes during construction * * Inadequate contractor experience * * Deficiencies in organization * Deficiencies in coordination between parties- (Contractor, Consultant and Owner)

*

*

*

*

*

Uncompromising attitude between parties * * Equipment allocation problems *

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Table 2.3 : Factors influencing time overruns (cont.)

Country where survey was conducted

Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza Strip)

New Zealand Malaysia Malaysia

Factors causing Project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Contractor's responsibilities Lack of protection of complete work * Failure in testing * Human error * * Poor communications and misunderstanding * * * * Consultant's responsibilitiesAbsence of consultant's site staff * Lack of experience on the part of the consultant * Lack of experience on the part of the consultant's site- staff; (managerial and supervisory personnel)

*

*

Slowness in giving instructions * Too few supervisors / skill * Contract management by Consultant * Preparation and approval of tests and inspections * * Quality assurance / control * Waiting time for approval of tests and inspections * * * * Poor inspection * Delays in payment * * Conflict in amount of payments * Variations (design changes/ extra work) * * * * * * * *

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Table 2.3 : Factors influencing time overruns (cont.)

Country where survey was conducted Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza Strip)

New Zealand Malaysia Malaysia

Factors causing Project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Owner's responsibilitiesContract modifications (replacement and addition of - new work to the project and change in specifications) * * Financial problems (delayed payments financial- difficulties and economic problems)

*

*

*

*

*

*

Owner - initiated variation * Unrealistic contract durations imposed by owner * * Owner interference * * Owner has no priority/ urgency to complete the project * Professional Management Poor provision of information to project participants * * * Inadequate managerial skills for all parties * Low speed of decision making within each project team * * * * * * * Inadequate construction planning * * * * * * * * Preparation and approval of shop drawings * Lack of tracking of schedules * Lack of personnel training and management support * Poor judgment in estimating time and resources * Lack of contractor's home office follows up * Inspection and testing procedure used in project *

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Table 2.3: Factors influencing time overruns (cont.)

Country where survey was conducted Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza strip)

New Zealand Malaysia Malaysia

Factors causing Project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Professional Management Rework of bad quality performance * Design and DocumentationPoor quality site documentation * Unclear specifications * Poor design * * * Incomplete drawings * * Poor documentation and no detailed written procedures * * Using systematic procedures * Delays in design work / lack of design information * Lack of designer's experience * Material Delay of material delivery to site * * * * * * * Poor material handling on site * * Inappropriate / misuse material * * Poor procurement programming of materials * Shortage of materials in markets * * * Shortage of construction materials * * * Low quality of materials * * Too much overtime for labour *

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Table 2.3 : Factors influencing time overruns (cont.)

Country where survey was conducted Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza Strip)

New Zealand Malaysia Malaysia

Factors causing Project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Material Inappropriate construction methods * * Poor equipment choice/ infective equipment * Highly bureaucratic organization * Project construction complexity * Execution Price escalation * Lack of a strong organizational culture * Labor supply * Equipment availability and failure * * * Shortage of site workers * * * Inaccurate prediction of equipment production rate * * Skilled labor shortage * * * * * Lack of equipment * * * lack of maintenance for the equipment * * * Weak motivation * Low productivity * Unskilled operators * Contractual relationshipsMajor disputes and negotiations *

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Table 2.3 : Factors influencing time overruns (cont.)

Country where survey was conducted Hong- Kong Thailand Indonesia Indonesia Nigeria U.S.A

(Florida) Hong Kong Jordan

Palestine(Gaza Strip)

New Zealand Malaysia Malaysia

Factors causing Project delays Chan et al 1996

Ogunlana et al 1996

Kaming et al 1997

Alwi et al 1999

Elinwa et al 2001

Ahmed et al 2002

Chan et al 2002

Odeh et al 2002

Enshassi et al 2003

Ying et al 2005

Abudul-Rahman

et al 2006

Alghbari et al 2007

Contractual relationshipsInappropriate overall organizational structure linking- all parties to the project

*

Mistakes and discrepancies in contract documents * Inappropriate type of contract used * Government relations Building Regulations * Bureaucracy in Government agencies * Slow permits by Govt. agencies * External factors Poor site conditions (location, ground, etc.) * * * * * * * * Poor economic conditions (currency, inflation rate, etc.) * * Changes in laws and regulations * Transportation delays * External work due to public agencies * Problems with neighbors * Strikes, Israeli attacks and border closures * Hot and cold weather * * * *

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Table 2.4 illustrate the factors of cost overruns which collected from literature review Table 2.4 : Factors influencing cost overruns

Country where survey was conducted India Indonesia Botswana

Factors causing Project delays

Morris

et al 1990

Kaming

et al 1997

Chimwaso

2001

Design changes * Inadequate planning * Unpredictable weather conditions * * Fluctuations in the cost of building materials * Lack of coordination at design phase * Inadequate review * Incomplete design at the time of tender * Additional work at owner’s request * Changes in owner’s brief * Lack of cost planning/monitoring during pre-and post contract stages

*

Site/poor soil conditions * Adjustment of prime cost and provisional sums * Remeasurement of provisional works * Logistics due to site location * Lack of cost reports during construction stage * Delays in issuing information to the contractor during construction stage *

Technical omissions at design stage * Contractual claims, such as, extension of time with cost claims

*

Improvements to standard drawings during construction stage

*

Indecision by the supervising team in dealing with the contractor’s queries resulting in delays

*

Omissions and errors in the bills of quantities * Delays in costing variations and additional works * Ignoring items with abnormal rates during tender evaluation, especially items with provisional quantities * Some tendering maneuvers by contractors, such as front- loading of rates

*

Materials cost increased * Labour cost increased due to environment restriction * Lack of experience of project location * Lack of experience of project type * Lack of experience of local regulation * Inadequate project preparation, planning and implementation * Delay in construction, supply of raw Materials and equipment by contractors *

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Table 2.4 : Factors influencing cost overruns (cont.)

Country where survey was conducted India Indonesia Botswana

Factors causing Project delays

Morris

et al 1990

Kaming

et al 1997

Chimwaso

2001

Resources constraint: funds foreign, exchange power, and associated auxiliaries not ready

*

Delays in decisions making by Government, failure of specific coordinating

*

Wrong / inappropriate choice of site * Technical incompetence, poor organizational structure, and failures of the enterprise other than (1) above

*

Labour unrest * Natural calamities, Indo-Pakistan War * Lack of experience of technical consultants, inadequacy of foreign collaboration agreements, monopoly of technology

*

2.5 Delay mitigation in the construction industry An analysis is needed to identify the impact of delay on time and cost followed by

taking the appropriate action to mitigate delay and minimize the cost required. It is

important to improve the estimated activity duration according to the actual skill

levels, unexpected events, efficiency of work time, and mistakes and

misunderstandings. Mitigation efforts are necessary to minimize losses and this can be

achieved by many procedures such as protection of uncompleted work, timely and

reasonable re-procurement, and timely changing or cancellation of purchase orders. It

is important to predict and identify the problems in the early stages of construction

and diagnose the cause to find and implement the most appropriate and economical

solutions (Abdul-Rahman et al 2006). It was indicated from the survey findings derived from different levels of management

that the major causes of delay are due to financial problems followed by manpower

shortage and changes in the project requirements. All parties involved in the project

also agreed that delay occurs mostly during the construction phase. Therefore, in

resolving those problems, the units of analysis suggested to increase the construction

productivity, followed by increase the expertise and skill of human resources, and

conducted site meetings more frequently. A strategic view of solving delay problems

should consider the importance of the management aspects, the effects of knowledge

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and information flow between the organization levels, and the importance of top

management contribution in solving the problems.

2.6 Time variance for building projects Time variance (Tv) is the time between the scheduled contract time and the

completion time in undertaking building projects.

2.6.1 Discussion on the major causes contributing to time variance The consequences of construction time delay when undertaking a public sector

building project affects all project parties, with issues such as extra cost. Although

various methods for mitigating the problem have been developed in the previous

studies, the limitation of using these methods raises the concern that probably the

causes contributing to the time variance has not been adequately addressed. To

investigate the causes, five interview workshops were arranged with relevant

personnel in the public sectors. These discussions led to the identification of the

following major categories of causes of time overruns (Wang et al 2003).

2.6.1.1 Policy-related Causes Essentially, public sector projects are sponsored or endorsed by the government. The

implementation of this type of project must be in line with governmental policy. On

the other hand, governmental policy has to incorporate multiple dimensional interests,

in particular, the public interests. These interests are multiple, dynamic and

complicated, and in order to satisfy these interests, changes in policy are unavoidable.

A typical example is the existence of many prolonged office building projects in a

number of cities in China, mainly due to the change of governmental financing policy

in late 1990.

The government either postponed or reduced the financial commitments to many

building projects in an attempt to depress the ‘over-heated’ construction market. As a

result, many projects were delayed. New policies are often introduced in the middle of

a project’s construction process, for example, additional safety measures, or new

quality monitoring systems. The implementation of new policies will normally

involve investment from the project parties. The process of identifying who should

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take what responsibility in order to implement these policies can substantially delay

project progress (Moungrous et al 2003).

2.6.1.2 Owner-related Causes A public sector project generally involves more changes, thus inducing delays in the

process of implementing the project. The public sector owner in general, is less active

in pushing project progress when compared with a private sector owner. There is a

lack of skill in controlling construction programming.

The bureaucracy exists in all procedures that a public sector project has to go through,

which further induces progress delay. A public sector owner has to work with many

governmental departments when changes to a project occur. He has to spend a

substantial amount of time communicating with many other governmental

departments, which again induces project delays (Wang et al 2003).

2. 6.1.3 Design-related Causes The discussion shows that insufficient or incorrect design data is a major reason

contributing to project delays. The problem happens because of the owner’s poor

briefing, insufficient time allowed for design, the architect’s poor skill and the

owner’s quests for changes during the construction process (Vidalis et al 2002).

2.6.1.4 Contractor-related Causes There are many ways in which a contractor’s performance can delay a construction

project. For typical examples, main contractors often have various disputes with

subcontractors and materials suppliers, which can cause major delays. In fact, such

disputes are considered a major cause for project delay. Other factors, such as the

contractor’s insufficient financial resources, mistakes in making decisions on progress

control and the overall inability when performing management functions, are also

possible reasons for causing project delays.

It is interesting to note that, a main contractor will sometimes deliberately demand an

unreasonably short contract period although the contractor understands that the

completion on contract time is impossible. In this situation, the contractor only wants

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to secure a contract and thus agrees with an unrealistic contract period imposed by a

project owner. Consequently, project delay cannot be avoided (Takim et al 2004).

2.6.1.5 Consultant-related Causes The consultant engaged in a building project can affect the progress of construction

programming through various monitoring measures such as issuing certificates, and

endorsing the satisfaction of certain activities in the construction process. Progress

delay can happen if these monitoring measures are not implemented properly. This

appears a typical problem in the mainland of China where a professional called the

‘supervision engineer’ is adopted for supervising construction performance,

particularly in committing public sector projects. Supervision engineers are given the

authority to endorse the satisfaction of certain procedures such as piling, steel fixing,

the quality of key materials, before the construction programming can proceed

forward. It has been found that supervision engineers often cannot endorse these

procedures in time, thus construction delays are caused (Wang et al 2003).

2.7 Time and cost overruns in Gaza Strip Delay of project and cost overruns in Gaza strip is one of most important problems at

construction management field. Also research and studies in this field in Palestine are

few compared to worthy expected results. Despite the importance and the significant

of the construction sector in Palestine, it is noted that the parties of project {owner,

consultant, and contractor} don’t give it its importance evaluate the time and cost

overruns at the end of project.

This shortage may be as a result of;

• Lack of knowledge and awareness about project performance;

• The distribution of delay and cost overruns responsibilities between the three

parties;

• They believe that the political conditions is the main reason of this problem.

The problem of projects delay and cost overruns can nearly be noticed in every

project at Gaza Strip indicating that this problem didn't receive enough attention by

both researches and responsible authorities, in this thesis factors influencing time and

cost overruns included in literature review and others will be studied in Gaza Strip.

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Construction industry in Gaza Strip is suffering from many problems which affect

time, cost and quality, these factors related to political situation and techniques used

in Gaza strip, these problems are summarized as following:

• Unemployment of workers in comparison with the number of projects;

• Borders closure and shortage of materials in markets;

• Dependency on Israeli and other countries in getting construction materials;

• Continues increase in material prices;

• Dependency on donors countries to get cash for construction and infrastructure

projects;

• Unstable economic situation and its correlation with Israeli one;

• Hard political situation in Gaza Strip.

These factors above and others contributed to large proportion in making many

problems in construction industry which usually related to time and cost overrun.

Enshassi et al 2003 found that the financing group of delay factors was ranked the

highest by all three parties and the environment group was ranked the lowest. In order

to improve the situation , there is a need to pay more attention to the financial issues

in the local construction industry, and there is a need for betters communication and

coordination with international funding agencies. There is also an urgent need to

develop human resources in the construction industry in Palestine. The construction

industry in Palestine should also adopt innovative management techniques, team

building and value engineering in orders to be more efficient and effective. A

constructive team building approach between owners, consultants and contractors will

reduce delays and improve the quality of the work.

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CHAPTER THREE: METHODOLOGY

3.1 Introduction

This chapter describes the methodology of this thesis, the main topics included in this

chapter are research strategy, research design, population, sample size determination,

research location, case study, questionnaire design, questionnaire content, pilot study

and tests of reliability and validity of questionnaire and the last thing is the process of

data analysis.

3.2 Research strategy

Naoum (1998) defined the research strategy as the way in which the research

objectives can be questioned. Two types of research strategies are used at studies,

quantitative and qualitative research. Quantitative approach is used to gather factual

data and to study relationships between facts and how such facts and relationships

accord with theories and the findings of any research executed previously, but the

qualitative approach seek to gain insights and to understand people's perception of

"the world" whether as individuals or groups (Fellows and Liu, 1997). In this thesis, a

quantitative approach is used to understand the perception of construction

professionals in Gaza Strip towards factors influencing time and cost overruns at

construction projects in Gaza Strip.

3.3 Research design

"Research design" refers to the plan or organization of scientific investigation,

designing of a research study involves the development of a plan or strategy that will

guide the collection and analyses of data (Poilt and Hungler, 1985). This research

consists of seven phases, the first one is the proposal for identifying and defining the

problems and establishment of the objectives of the study and development of

research plan. The second phase of the research includes literature review. Literatures

of time and cost overruns were reviewed.

The third phase of the research included a field survey which included the firm of

owners, contractors and consultants, also some actual cases were collected during the

field survey. The fourth phase of the research includes the questionnaire design,

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through distributing the questionnaire to a sample of local contractors, consultants and

owners' firms. The purpose of the pilot study was to test and prove that the

questionnaire questions are clear to be answered in a way that help to achieve the

target of the study. The questionnaire was modified based on the results of the pilot

study.

The fifth phase of the research was questionnaire distribution. The questionnaire was

used to collect the required data in order to achieve the research objective. The sixth

phase of the research focused data analysis and discussion. Statistical Package for the

Social Sciences, (SPSS) was used to perform the required analysis. The last phase of

the research includes the conclusions and recommendations.

Figure 3.1 illustrated the methodology flow chart which includes the objectives of the

thesis.

Topic Selection

Literature Review

Define the Problem

Establish Objectives

Develop Research Plan

Conducting survey

Questionnaires Design

Results and Data Analysis

Conclusion & Recommendation

Figure 3.1: Methodology flowchart

Field Surveying

Thesis Proposal

Literature Review

Cases studies

Piloting (ten experts were

invited )

Questionnaires Validity

Questionnaires Reliability

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3.4 Population The population of this research included contracting companies, consultants and

public owners sectors, the contractors companies had valid registration according to

the Palestinian Contractors Union (P.C.U) records. The P.C.U in Gaza Strip divided

the contracting companies into five major categories depending on their size, capitals,

executed projects, equipment values, and qualifications of the technical staff as per

the Union of Contractors in the Gaza Strip, where class 1 designates the largest

contractors and class 5 designates the smallest. Class 5 of these categories was

neglected because they didn't execute projects of more than 100,000 $ and also most

of them are very new companies and didn't have sufficient experience in construction

field.

The studied population was the contracting companies that have a valid registration in

the PCU in the following fields: building, roads, water and sewage, electro-mechanics

and public works. The owner agencies consist of all government agencies, ministries,

municipalities, international agencies, public project owners. The consultant agencies

consist of all consulting offices that have a valid membership of consulting offices in

Gaza Strip.

3.5 Sample Size Determination Wood and Haber (1998) defined the sampling as the process of selecting

representative units of a population for the study in research investigation. A sample

is a small proportion of a population selected for observation and analysis. The

samples were selected randomly from contracting companies, consultant offices &

public owners sectors.

Statistical equations were used in order to calculate the sample size for the

contractors. Equation 3.1 was used to determine the sample size of the unlimited

population (Creative Research System, 2001, www.cdb.riken.jp):

SS = 2

2

CP)(1*P*Z − Equation 3.1

Where SS = Sample size

Z = Z value ( e.g. 1.96 for 95% confidence level)

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P = percentage picking a choice, expressed as a decimal (0.50 used for sample size

needed).

C = margin of error (9%)

SS = 11957.1180.09

)5.0(1 0.5 1.962

2

≈=−×× contractors

Correction for Finite Population

SS new

POP1-SS 1

SS

+= Equation 3.2

Where pop is the population = 139 match the proposed classes of contracting

companies

SS new 6436.64

13919111

119≈=

−+

=

The total number distributed to contractors was 80 questionnaires.

The total number returned was 66 questionnaires.

POP (consultants) = 35

SS new for consultants 2722.27

3519111

119≈=

−+

=

The total number distributed was 33 questionnaires.

The total number returned was 27 questionnaires.

POP (owners) = 40

SS new for owners 301.30

4019111

119≈=

−+

=

The total number distributed was 38 questionnaires.

The total number returned was 31 questionnaires.

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Figure 3.2 shows that the contractor response rate is 82.5 %, which reflect the

importance and the effect of delay on contractor, because the contractor is the first

aggrieved from time and cost overruns at the project. The consultant response rate

was 81.80 %, this response rate is also high, because of consultant attention to avoid

time and cost overruns, the consultant take care of its CV at projects. Owner (owner)

response rate was 81.58 %, this is a good rate, specially when know that any delay in

project handing over or increasing of cost prevent the owner to use the project.

Figure 3.2: Response rates among the three types of population.

3.6 Research Location

Gaza Strip is the location of this study, the participated organization of questionnaire

was as following:

• 10 contractors from the North of Gaza, 33 from Gaza, 6 from Middle area and 17

from the South of Gaza Strip .

• 8 owners from the North of Gaza, 13 from Gaza, 4 from Middle area and 6 from

the South of Gaza Strip .

• 6 consultants from the North of Gaza, 13 from Gaza, 3 from Middle area and 5

from the South of Gaza Strip .

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3.7 Methodology used in previous studies Frimpong et al (2003) discussed causes of delay and cost overruns in construction of a

ground water project in developing countries (Ghana as a case study). A questionnaire

of 26 factors was carefully designed from previous preliminary investigations

conducted in groundwater drilling projects between 1970 and 1999 in Ghana. It was

organized in the from of a priority scaling (1 = very low, 2 = low, 3 = medium, 4 =

high, and 5 = very high).

The procedure used in analyzing the results aimed at establishing the relative

importance of the various factors responsible for project delay and cost overruns. The

score for each factor is calculated by summing up scores assigned to it by

respondents. Therefore, the level of importance as indicated by the owners,

contractors and consultants were used to measure the relative weight of each factor.

The relative weight was computed using the following equation:

Relative Importance Weight

∑5 ai-ni i=1

(RIW) = ---------------------- x 100 ∑N xj j=1

Where xj = the sum of the jth factors 1,2,3,4 --------- N;N= total number of factors

(26); ai = constant expressing the weight given to the jth response: i=1,2,3,4,5

for a response of 'very high' a1 = 5

for a response of ' high' a2 = 4

for a response of 'medium' a3= 3

for a response of 'low' a4 = 2

for a response of 'very low' a5 = 1

ni = the variable expressing the frequency of the ith response.

n1= frequency of 'very high' response, =frequency of 'high' response

n3 = frequency of 'medium' response.

n4 = frequency of 'low' response.

n5 = frequency of 'very low' response

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Koushki et al (2005) discussed delays and cost increases in the construction of private

residential projects in Kuwait by considering a questionnaire survey approach. A total

of 450 private housing projects were systematic-randomly selected from among

projects located in 27 metropolitan districts. The sample districts were selected to

represent the various geographical, land-use, population density and socioeconomic

distributions of households in Kuwait. A person-interview survey of owners of these

sample residential projects by a trained Kuwaiti team consisting of one graduate and

two senior civil engineering students provided the database for the analysis.

Ogunsemi and Jagboro (2006) used model approach to study time-cost model for

building projects in Nigeria. Time and cost data were obtained from 87 completed

building projects. Specifically, the initial and final cost and duration of such projects

were obtained from consulting quantity surveyors. The data were limited to projects

completed within a ten-year period from 1991 to 2000.

A questionnaire approach was used by Fong et al (2006) to study the fire services

installation related contributors of construction delays. A five- point weighing scale w

was used to indicate the relative importance of a contributor i in a construction delay,

where "5" represented "extremely significant", "4" "very significant"; "3" "moderately

significant" (1). A factor rated "4" or "5" would be interpreted as a significant

contributor of construction delay, the one rated "1" or "2" would be interpreted as an

in significant contributor, while that with a "3" was taken as uncertain. The relative

importance index (RII) used to indicate the relative importance of a contributing

factor i to the construction delay is given by (3-5,8),

∑ wi RIIi = --------- A x N'

Where W is the mentioned scale for rating a factor by the respondents which ranges

from 1 to 5; A is the highest weight in the scale; and N is the total number of

respondents.

A set of questionnaires was formulated by Lo et al (2006) in which the causes of

delay and the corresponding mitigation measures were grouped into seven categories,

accordingly designated with code names. The questionnaire contained 30 identified

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causes of delay for which the respondents were asked to indicate their perceived

magnitude of significance in part I and the effectiveness of the corresponding

mitigation measures in part II with reference to a corresponding 1-5 scale (0 = not

significant / effective (NS/NE), 1 = slightly significant / effective (SS/SE), 2=

moderately significant / effective (MS/ME), 3 = highly significant / effective

(HS/HE), and 4 = extremely significant / effective (ES/EE). The following equation

was proposed to calculate the mean score (MS) for each cause of delay.

∑ (f x S) MSi = -------- N

Where S = score given to each cause of delay by the respondents; F = frequency of

responses to each score for each cause of delay; N = total number of responses in the

respective cause of delay.

Assaf and AL-Hejji (2006) studied the causes of delay in large construction projects

in Saudi Arabia. 4. Research methodology. The research methodology contained:

Seventy-three (73) causes of delay were identified through literature review and

discussion with some parties involved in construction industry. A questionnaire was

developed in order to evaluate the frequency of occurrence, severity and importance

of the identified causes. Data were gathered through a survey, analyzed by using

frequency, severity and importance indices, taking in view owners, contractors and

consultants.

The collected data were analyzed through the following statistical techniques and

indices:

Frequency index: A formula is used to rank causes of delay based on frequency of

occurrence as identified by the participants

Frequency Index (F.I.) (% ) = ∑ a (n/N) x 100/4

Where A is the constant expressing weighting given to each response (ranges from 1

for rarely up to 4 for always), n is the frequency of the responses, and N is total

number of responses. Severity index: A formula is used to rank causes of delay.

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Based on severity as indicated by the participants.

Severity Index (S.I.) (%) = ∑ a (n/N) x 100/4

Where a is the constant expressing weighting given to each response n in the range

from 1 for little up to 4 for severe. And N is the total number of response frequency

Importance index: The importance index of each cause is calculated as a function of

both frequency and severity indices, as follows:

Importance index: (IMP.I) (%) = (F.I (%) x S.I (%) )/100

Sambasivan and Soon (2007) used a questionnaire approach to study the causes and

effects of delays in Malaysia construction industry. A questionnaire was developed to

assess the perceptions of owners, consultants, and contractors on the relative

importance of causes and effects of delay in Malaysian construction industry. The

respondents were asked to highlight their recommendation to minimize the effects of

construction delays through an open-ended question. A five-point Likert scale ranging

from 1( not important) to 5(extremely important) was adopted to capture the

importance of causes and effects of delays.

The five-point scale ranged from 1(not important) to 5(extremely important) was

adopted and transformed to relative importance indices (RII) for each factor as

follows:

∑ w RII = -------------

A x N

Alghbari et al (2007) studied the significant factors causing delay of building

construction projects in Malaysia by using questionnaire approach. The respondents

identified variables that they perceived as being likely to contribute to factors

influencing the speed of IBS and factors influencing delays in construction building

projects by responding on a scale from 1 (very important) to 4 (unimportant). The

four-point Likert rating scale was 1 ¼ very important, 2 ¼ important, 3 ¼ some or

less important, and 4 ¼ unimportant. This scale was chosen to avoid neutral answers

that do not provide information on very important or non-important issues. The mean

score (MS) for each factor was calculated using the following formula:

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∑( F x S)

MS= (4 - ----------------- ) (1 <= MS <= 4) N

Where MS is the mean score, f is the frequency of responses to each rating (1-4), s is

the score given to each factor by the respondents (ranges from 1 to 4), and N is the

number of responses concerning that factor.

3.8 Methodology of this thesis After surveying the previous approaches of methodologies, the suitable one is to use

questionnaire and case studies methods.

3.8.1 Questionnaire approach A questionnaire was developed to asses the perceptions of owners, consultants, and

contractors due to the importance index of causes and effects of delay in Gaza Strip

construction industry. Factors influencing time and cost overruns in construction

projects in Gaza Strip were first examined and identified through a relevant literature

review and by conducting a pilot study that sought advise from experienced

construction practitioners.

3.8.2 Case Studies Five case studies were carefully selected and investigated. These cases discussed in-

depth information regarding the causes of time and cost overruns at construction

projects in Gaza Strip, also to check the procedures and actions taken by contractors,

owners and consultants. Each case will be analyzed separating of others, the case will

illustrate the link between the data collected by questionnaire and data in case,

recommendations will be documented for each case.

3.9 Questionnaire design Reference to Tables 2.3 and 2.4 at literature review it has been assembled around of

(136) factors which affect the time and cost overruns in engineering projects in

various countries around the world and at intervals of time, but not all of these factors

are consistent with the conditions and circumstances surrounding the Gaza Strip from

economic level, the type of projects, geographical region and occupation factors

which experienced the Gaza Strip, so it has been selected factors commensurate with

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the nature of construction projects and problems in the Gaza Strip. Modifications and

new questions then added as a result of interview of experienced construction

managers to suit the local construction industry in Gaza Strip.

3.9.1 Factors added from the researcher experience Table 3.1 shows the factors influencing time and cost overruns, which added from the

researcher experience.

Table 3.1 : Factors of time and cost overruns added by researcher experience

#

The factor

Groups of factors

1 Inflexibility of donor in giving appropriate

periods for project implementation Project – related factors

2 Low harmony between technical team of contractor and consultant which may lead to controversy between both of them

Contractor's responsibility

3 Unethical behaviors used by contractors to achieve the highest possible level of profit

Contractor's responsibility

4 Contractor uncommitment to consultant instructions

Contractor's responsibility

5 Dependence on a newly – graduated engineer to bear the whole responsibilities in the site

Contractor's responsibility

6 Use of unemployment programs in projects Contractor's responsibility

7 Bad past history and reputation of the consultant (corruption)

Consultant responsibility

8 Lack of job security for the consultancy team Consultant responsibility

9 Owner delay in freeing the contractor financial payments

Owner's responsibility

10 Bad Preparation and approval of shop drawings Professional Management

11 Ageing of site workers

Labor and equipment

12 Different political and factional affiliation of workers

Labor and equipment

13 Absence of managerial programs that help in saving materials inside the site

Cost overruns

14 Delay in project's handing over Cost overruns

15 Long period of the project maintenance period "one year"

Cost overruns

16 Increment of material prices due to continuous border closures

Cost overruns

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Table 3.1 : Factors of time and cost overruns added by researcher experience (cont.)

#

The factor

Groups of factors

17 Bad allocation of workers inside the site Cost overruns

18 Over time work hours of supervising Engineer are paid by the contractor Cost overruns

19 Unsettlement of the local currency in relation to dollar value Cost overruns

20 Project materials monopoly by some suppliers Cost overruns

21 Attracting skillful technicians for work Cost overruns

22 Inability of the contractor to be adopted properly with the projects environmental Cost overruns

The draft questionnaire was discussed with the supervisor of the thesis. Then the

questionnaire was sent to a statistical expert and ten experts in constructions who

were asked to review the questionnaire and give their recommendations. The final

questionnaire contains 110 factors influencing time overruns, and 42 factors

influencing cost overruns. The respondents were asked to fill the questionnaire and

they have assured that the information will be confidential and only for research

purpose.

3.10 Questionnaire content

The questionnaire included three parts that related to the factors of time and cost

overruns at construction projects in Gaza Strip, these parts are organization profile,

factors influencing time overruns and factors influencing cost overruns.

3.10.1 Organization profile Seven items questions were prepared asking for information about organization such

as the name of organization, type of work, the contact person and his/her experience,

location of organization, the average value of executed projects per year, and the

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constant number of workers at organization. (The questionnaire is included in annex

2)

3.10.2 Factors influencing time overruns at construction project This part of questionnaire consist of 12 groups related to time overruns, the groups

included 110 factors that influencing time overruns, these groups are project related

factors, Contractor's responsibility ,Owner responsibility, Professional management,

Design and Documentation, Materials, Execution, Labour and equipments,

Contractual relationship, Government relations and external factors. (The

questionnaire is included in annex 2).

3.10.3 Factors influencing cost overruns This part illustrate the factors influencing cost overruns at construction project, these

factors are the harvest of previous studies, own experience and piloting study. 42

factors were included in this part. (The questionnaire is included in annex 2).

3.11 Pilot study

These structured questionnaires should be based on a carefully prepared set of

questions piloted and refined until the researcher is convinced of their validity.

Therefore the pre-testing is an important stage in the questionnaire design process,

prior to finalizing the questionnaire. It involves administrating the questionnaire to a

limited number of potential respondents and other knowledgeable individuals in order

to identify and correct design flaws.

The Arabic version of questionnaire was tested in order to make sure that the

questions were easily understood .The test was made by distributing ten drafts of the

questionnaire (four to contractors, three to consultant and three to owners). In general,

they agreed that the questionnaire is suitable to achieve the goals of the study. The

following comments and some modifications have been done:

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3.11.1 Notes of Part A (organization profile)

Adding cells to classify the type of work for organization as follows: Buildings Roads Water and Sewage Electro mechanics Adding cells for the contact person as follows:

Owner of organization Project manager Site Engineer Office Engineer Classify the location of the organization as follows: North of Gaza Gaza Middle area South of Gaza

3.11.2 Notes of part B (Factors influencing time overruns) Adding the following factors which influencing time overruns. Table 3.2 shows the

notes of part (B) of questionnaire (factors influencing time overruns).

Table 3.2 : Notes of part B of the questionnaire

3.11.3 Notes of part C (Factors influencing cost overruns)

Adding the following factors which influencing cost overruns. Table 3.3 shows that

the notes of part (C) of questionnaire (factors influencing cost overruns).

# The factor Groups of factors

1 Discrepancies between contract documents Project

2 Inconsistency between the project and its environmental due to donor agenda

Project

3 Donor own policy in implementation methods and characteristics of the project

Project

4 Delay of materials approval by consultant Consultant 5 Little periodical sessions to address work problems Consultant

6 Previous disputes between contractor and consultant Consultant

7 Centralization of decision making process from consultant party Consultant 8 Lack of unified system for contracts, general conditions, and

specifications of projects Owner

9 Back of follow up for the project schedule and absence of continuous tracking

Professional management

10 No adherence to materials standards that is storage in the site Material

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Table 3.3 : Notes of part C of the questionnaire

#

The factor

Groups of factors

1 Low communication of donors to compensate any

bad result that may come from the economic political situation

Cost overruns

2 Donor policy in bidding tender to the lowest price one Cost overruns

3.12 Data Measurement

In order to be able to select the appropriate method of analysis, the level of

measurement must be understood. For each type of measurement, there is/are an

appropriate method/s that can be applied and not others. In this research, ordinal

scales were used. Ordinal scale is a ranking or a rating data that normally uses

integers in ascending or descending order. The numbers assigned to the agreement or

degree of influence (0,1,2,3,4) do not indicate that the interval between scales are

equal, nor do they indicate absolute quantities. They are merely numerical labels.

Based on Likert scale researcher has the following:

Item

Strongly

agree

Agree Neutral Disagree

Strongly

disagree

Scale

4

3

2

1

0

3.13 Statistical Validity of the Questionnaire

Validity refers to the degree to which an instrument measures what it is supposed to

be measuring Poilt and Hungler (1985). Validity has a number of different aspects and

assessment approaches. To insure the validity of the questionnaire, two statistical tests

should be applied. The first test is Criterion-related validity test (Spearman test)

which measure the correlation coefficient between each paragraph in one field and the

whole field. The second test is structure validity test (Spearman test) that used to test

the validity of the questionnaire structure by testing the validity of each field and the

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validity of the whole questionnaire. It measures the correlation coefficient between

one filed and all the fields of the questionnaire that have the same level of similar

scale.

3.13.1 Criterion Related Validity

Internal consistency of the questionnaire is measured by a scouting sample, which

consisted of ten questionnaires through measuring the correlation coefficients

between each paragraph in one field and the whole filed. The results of validity test of

all categories of questionnaire are shown in tables (3.4 to 3.16) in annex.

3.13.2 Structure Validity of the Questionnaire Structure validity is the second statistical test that used to test the validity of the

questionnaire structure by testing the validity of each field and the validity of the

whole questionnaire. It measures the correlation coefficient between one filed and all

the fields of the questionnaire that have the same level of Likert scale. Table 3.17

clarifies the correlation coefficient for each category of the time overruns, cost

overruns and the whole questionnaire. The p-values (Sig.) are less than 0.05 or 0.01,

so the correlation coefficients of all the fields are significant at α = 0.01 or α = 0.05,

so it can be said that the fields are valid to be measured what it was set for to achieve

the main aim of the study .

Table 3.17 :Correlation coefficient of Questionnaire and the total of this field at N= 124

Item Spearman Correlation Coefficient

P-Value (Sig.)

Time overruns factors

0.980

0.000(**)

Cost overruns factors

0.845

0.000(**)

**. Correlation is significant at the 0.01 level (1-tailed).

3.14 Reliability of the Research

The reliability of an instrument is the degree of consistency which measures the

attribute; it is supposed to be measuring (Poilt and Hungler,1985). The less variation

an instrument produces in repeated measurements of an attribute, the higher its

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reliability. Reliability can be equated with the stability, consistency, or dependability

of a measuring tool. The test is repeated to the same sample of people on two

occasions and then compares the scores obtained by computing a reliability

coefficient (Poilt and Hungler, 1985).

3.14.1 Cronbach’s Coefficient Alpha This method is used to measure the reliability of the questionnaire between each field

and the mean of the whole fields of the questionnaire. The normal range of

Cronbach’s coefficient alpha value between 0.0 and + 1.0, and the higher values

reflects a higher degree of internal consistency. As shown in table 3.18, the

Cronbach’s coefficient alpha was calculated for the category of time overruns of the

questionnaire.

Table 3.18: Cronbach's Alpha for each Category of time overruns of the questionnaire and all the questionnaire

Field

Cronbach's Alpha

Project related factors 0.790 Contractors responsibility 0.886 Consultants responsibility 0.90 Owner's responsibility 0.874 Professional Management 0.889 Design and Documentation 0.901 Material 0.709 Execution) 0.763 Labor and equipment 0.763 Contractual relationship 0.757 Government relations 0.774 External factors 0.476 Total 0.956

Table 3.19 shows high values of Cronbach's Alpha for each category of the

questionnaire and the entire questionnaire, which means high reliability of the each

field of the questionnaire and high reliability for the entire questionnaire.

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Table 3.19: Cronbach's Alpha for each Parts of time and cost overruns of the questionnaire and all the questionnaire

Field Cronbach's Alpha Time overruns 0.956 Cost overruns 0.907 Total 0.96

The results were in the range from 0.907 and 0.956. This range is considered high; the

result ensures the reliability of the questionnaire. In our study, Cronbach's Alpha

equals to 0.96 for the entire questionnaire which indicates a very good reliability of

the entire questionnaire. Thereby, it can be said that the researcher proved that the

questionnaire was valid, reliable, and ready for distribution for the population sample.

3.15 Process of data and analysis

After collecting the raw data of questionnaire, the data entered into computer

spreadsheet, SPSS program was used to analyze the data. In part A of questionnaire

(organization profile), the mean and the percent is used to get the result of this part

and to compare the opinions of contractor, owner and consultant, for the (factors

influencing time and cost overruns) , the importance index is used to rank the factors

for time overruns and cost overruns separately, also the importance index is used to

rank the groups of time overruns in questionnaire.

5

1i i

iI a x

== ∑ ………… (Enshassi et al 2003)

Where I = importance index

ai = 0,1,2,3,4 for i = 0,1,2,3,4 respectively

xi = frequency of the ith response given as a percentage of the total response for each

cause.

i = response category index where

ai = 0,1,2,3,4; for x1 = frequency of strongly not important response, x2 = frequency

of not important response, x3 = frequency of neutral response, x4 = frequency of the

important response and x5 = frequency of very important response. The final

processing and analysis of data will be covered at chapter 4 of this study.

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CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Introduction This chapter describes the results and discussion of questionnaire survey concerning

time and cost overruns from contractors, consultants and owner viewpoints in Gaza

Strip. This chapter focuses on describing the respondent's characteristics in addition to

the discussion of the factors that influence time and cost overruns.

4.2 Part A: Population characteristics

This part mainly designed to provide general information about the respondents in

terms of the name of organization, major type of work involved, position and

experience contact person, location of organization, average of projects executed per

year and the number of constant employees at the organization.

4.2.1 Type of respondents organization In this study, 53.00 % (66) contractors, 25.00 % (31) owners, 22.00 % (27)

consultants participated in the questionnaire as shown at Fig (4.1). The general

response rate for contractors, owners and consultants was 82.11 % and the total

number of respondents for the three parties was 124 out 151 respondents. The

response rate of contractors was 82.50 % (66 out of 80 respondents), for the owner

81.58 % (31 out of 38 respondents) and 81.82 % (27 out of 33 respondents) for

consultants.

Contractors 53% (66)Ow ners

25% (31)

Consultants 22% (27)

Figure 4.1: Type of respondents` organization

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4.2.2 Type of work executed by the respondents organization Figure 4.2 shows that the building represents the highest field of work for contractors

with 35.50 % (50) in buildings, 31.90 % (45) of work was in roads, 25.50 % (36) in

water and sewage and 7.1 % (10) of contractors work in electro mechanics projects.

Buildings 35.50% (50)

Electro mechanics 7.10% (10)

Water and Sew age

25.50% (36)

Roads 31.90% (45)

Figure 4.2: Type of work executed by the respondents contractors

Figure 4.3 shows that 31.60 % (30) of owner's projects are in building, 30.50 % (29)

of projects are in roads, 25.30 % (24) of projects are in water and sewage and 12.60 %

(12) are electro mechanics projects.

Buildings 31.60% (30)

Roads 30.50% (29)

Water and Sew age

25.30% (24)

Electro mechanics 12.60% (12)

Figure 4.3: Type of work executed by the respondents owners

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Figure 4.4 shows that 30.70 % (27) of consultants work is in buildings projects, 29.50

% (26) roads, 23.90% (21) in water and sewage and 15.90 % (14) in electro

mechanics projects.

Roads 29.50% (26)

Buildings 30.70% (27)

Electro mechanics 15.90% (14)

Water and Sewage

23.90% (21)

Figure 4.4: Type of work executed by the respondents consultants

4.2.3 Respondents designation Figure 4.5 shows that 51.52 % (34) of contracting companies respondents were site

engineers, 31.82 % (21) were projects managers, 9.09 % (6) were the owners of

organization and 7.58 % (5) were office engineers. It has been founded that 51.61 %

(16) of owners respondents were site engineers, 29.03 % (9) were projects managers,

16.13 % (5) were office engineers and 3.23% (1) was the owner of organization. It has

been founded that 44.44 % (12) of the consultants companies respondents were

projects managers, 37.04 % (10) were site engineers, 11.11 % (3) were office

engineer and 7.41 % (2) of respondents were the owners of organization. Totally out

of 124 respondents for the three parties, 48.4 % (60) of the respondents were site

engineers, 33.90 % (42) were projects managers, 10.5 % (13) were office engineers

and 7.2 % (9) were the owners of organization.

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53

7.58

%(5

)

31.8

2%(2

1)

51.5

2%(3

4)

9.09

%(6

)

16.1

3%(5

)29.0

3%(9

)

3.23

%(1

)

51.6

1%(1

6)

11.1

1%(3

)

37.0

4%(1

0)

44.4

4%(1

2)

7.41

%(2

)

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%55.0%60.0%

Ow

ner o

f Org

.

Proj

ect

man

ager

Site

Eng

inee

r

Offi

ceEn

gine

er

Respondents

Perc

ent

Contractor

Owner

Consultant

Figure 4.5: Respondents designation

4.2.4 Experience of respondents Table 4.1 shows that 37.1 % (46) of the respondents firm have experience between 5

to 10 years at construction works and the same percentage of respondents who have

experience more than 10 years, 15.3 % (19) of respondents have experience from 3 to

5 years, and 10.5 %(13) have experience from one to three years.

Table 4.1: Experience of respondents (years)

Contractor Owner Consultant Average

Expe

rienc

e o

f

resp

onde

nts

1-3 Yrs 13.60 % (9) 6.50 % (2) 7.40 % (2) 10.50 % (13)

3-5 Yrs 10.60 % (7) 29.00 % (9) 11.10 % (3) 15.30 % (19)

5-10 Yrs 44.00 % (29) 32.25 % (10) 25.90 % (7) 37.10 % (46)

More than 10

Years 31.80 % (21) 32.25 % (10) 55.60 % (15) 37.10 % (46)

Total 100 % (66) 100 % (31) 100 % (27) 100 % (27) 100 % (124)

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54

4.2.5 Location of organization In this study, Gaza Strip is divided into four geographical region these parts are

(North of Gaza , Gaza city, Middle area and South of Gaza ). The response rate of

Gaza city was 47.60 % (59 respondents), 22.60 % (28 respondents) was from south of

Gaza, 19.30 % (24 respondents) was from North of Gaza and 10.50 % (13

respondents) was from middle area. Figure 4.6 shows that the respondents of

contracting companies are 15.10 % (10) from north of Gaza, 50 % (33) from Gaza

city, 9.10% (6) from the middle area and 25.80 % (17) from the south of Gaza. 25.80

% (8) of owners were from north of Gaza, 41.90 % (13) from Gaza, 12.90 % (4) from

middle area and 19.40 % (6) from south of Gaza. For the consultants, 22.20 % (6) of

respondents form north of Gaza, 48.20 % (13) from Gaza, 11.10 % (3) from middle

area and 18.50 % (5) from south of Gaza.

15.1

5%

50.0

0%

9.09

%

25.7

6%

41.9

4%

12.9

0%

19.3

5%22.2

2%

48.1

5%

11.1

1%

18.5

2%

25.8

1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

North of Gaza Gaza Middle area South of Gaza

Location area

Perc

ent

ContractorOwnerConsultant

Figure 4.6: Location of organization

4.2.6 Cost of projects executed by the organization Figure 4.7 shows that only 22.60 % of respondents executed projects with cost less

than one million dollar per year, 33.90 % of respondents executed projects with cost

ranged from one to two million dollar, 27.40 % of respondents executed projects with

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55

cost ranged from two to three million dollar. On the other hand 16.10 % of

respondents executed projects of total more than 3 millions dollar cost. It's concluded

that most organizational construction are considered as large organization in regard to

the project sizes in Gaza Strip.

27.3%16.1% 18.5% 22.6%

36.4%

32.3% 29.6%33.9%

22.7%

32.3% 33.3%27.4%

13.6% 19.4% 18.5% 16.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Contractor Owner Consultant Average

More than 3million $

2-3 million $

1-2 millon $

Less than 1million $

Figure 4.7: Cost of projects executed by the organization (million $)

4.2.7 Number of constant employees Due to the need of several employees at the organization to perform the required

works, it can be understood from figure 4.8 that the majority of contracting companies

(39.39 %) has less than 10 employees while only (13.64 %) of companies have more

than 20 employees. The majority of consulting companies (44.44 %) have from 10 to

15 employees while only (3.70 %) of consulting companies have more than 20

employees. The majority of owners organizations (29.03 %) have from 10 to 15

employees and the same rate from 15 to 20 employees, while (19.35 %) of owners

organizations have more than 20 employees.

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56

39.3

9% (2

6)

31.8

2% (2

1)

15.1

5%(1

0)

13.6

4%(9

)22.5

8%(7

)

29.0

3%(9

)

29.0

3%(9

)

19.3

5%(6

)

3.70

%(1

)11.1

1%(3

)

44.4

4%(1

2)

40.7

4%(1

1)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Less than 10 10-15 15-20 More than 20

No. of constant employees

Perc

ent

Contractor

Owner

Consultant

Figure 4.8: Number of constant employees at Organization

4.3 Part B: Factors influencing time overruns at construction projects This part consist of results and discussion of factors that influence time overruns

(delay), the factors were grouped into 12 groups, these groups are; project related

factors, contractors responsibility, consultants responsibility, owners responsibilities,

professional management, design and documentation, materials, execution, labour

and equipment, contractual relationship, governmental relationship and external

factors.

4.3.1 Group1: Project related factors Contractors view

Table 4.2 shows that the respondents contractors ranked "the suspension of work by

owner or contractor" in the first position with importance index (I.I = 71.97 %), which

indicates the high importance of work continuity in order to complete the project on

time. The suspension of work creates disputes between the parties of project. The

sequence of project activities will be affected, which lead to delay. This result is not

consistent with Fong et al (2006). This may traced to the severe political situation in

Gaza which it differs from Hong Kong.

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57

The second important factor ranked by respondents contractors was discrepancies

between contract documents (I.I = 65.53 %). This is a strong indication that any

discrepancy between the documents will cause delay. Sometimes the drawings of

project differ from technical specification or bill of quantity, which in turn creates

confusion in the implementation of contractor's work. This can cause disputes

between contractor and supervisor team, which lead to project delay. This result is in

line with the results of Odeh and Battaineh (2002), Fong et al (2006), and Sambasivan

and Soon (2007). The suitable description of this agreement is that the discrepancies

of contract documents aren't affected by the geographical location or by the climate of

construction. Any mistake or discrepancy in contract documents would delay the

project. Table4.2 : Project related factors that lead to time overruns

Project related factors contractor consultant owner

II Rank II Rank II Rank

Suspension of work by owner or contractor 71.97 1 83.33 1 77.42 1

Discrepancies between contract documents 65.53 2 76.85 2 63.71 2

Inflexibility of donor in giving appropriate

periods for project implementation 65.15 3 60.19 5 46.77 7

Donor own policy in implementation methods

and characteristics of the project 63.26 4 61.11 4 50.81 4

Inappropriate type of contract used (e.g.

traditional, design- and- build, etc.) 57.69 5 51.85 8 48.00 6

Slow information flow between project team

members 56.92 6 62.04 3 48.39 5

High quality of finishes needed 56.06 7 41.67 9 55.65 3

Inconsistency between the project and its

environmental due to donor agenda 55.68 8 58.33 6 41.13 9

Poor site safety 53.41 9 55.56 7 45.16 8

"Inflexibility of donor in giving appropriate periods for project implementation" (I.I =

65.15 %) was ranked as the third important factor to cause delay at this group. This

reason of time overruns is one of the clearest factors that cause the delay in Gaza

Strip. Owner identify the duration of project by existing experience without referring

to scientific studies of required time for the project. Since the Gaza Strip has special

economic and security situation, then the duration of project should be determined of

each project individually.

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58

Table 4.2 shows that the respondents contractors ranked the "poor site safety" (I.I =

53.41 %) as the last factor because there are poor culture of safety importance for

contractors. Any incident of the site will automatically cause delay, till now the

contractors of Gaza Strip didn't realize the great importance of maintaining the safety

in site.

Consultants view

Table 4.2 shows that the respondents consultants ranked the suspension of work by

owner or by contractor (I.I = 83.33 %) as the first factor causes delay as shown in

table 4.2. This result is in full conformity with the respondent's contractors, but in the

case of consultant, the proportion of the importance index is higher, which means that

consultant are more technically aware of elements and give them greater priority than

others.

The second factor cause delay was "discrepancies between, contract document" ( I.I =

76.85 %). This result is in full conformity with the results of the respondent's

contractors, this similarity of opinions indicate the importance of this factor. The third

important factor ranked by consultants was slow information flow between project

team members (I.I = 62.04 %). The flow of information between team members helps

to clarify what is going on regarding to the various activities, helps to clarify the

responsibilities of everyone involved. So any miss of information flow will lead to

stop or to suspend the work, then the delay may occur.

The respondents consultants as shown in table 4.2 classify the high quality of finishes

needed (I.I = 41.67 %) as the least factor that causes delay in this group. This result is

consistent with the nature of most construction projects at Gaza Strip. Since the

required finishes are well- known to contractors and technicians, so the high quality of

finishes needed doesn't cause any time overruns for the projects.

Owners view

Table 4.2 shows that the respondents owners ranked the suspension work by owner or

by contractor (I.I = 77.42 %) as the first factor causing delay in this group. The

second important factor was discrepancies between contract documents (I.I = 63.71

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59

%). This result is identical in terms of order with the contractor and consultant, which

support the importance of these factors.

Respondents owners as shown in table 4.2 ranked the inconsistency between the

project and environment due to donor agenda (I.I = 41.13 %) as the lowest important

factor, of delay at this category. There are some donors who specify the type or nature

of project, such as infrastructure projects, construction project, relief projects, so

policies of donors should be respected by owner. Therefore, this factor didn't

represent any delay of the project due to such consideration.

Spearman rank correlation coefficient

Spearman rank correlation coefficient is used to determine whether there is evidence

of a linear relationship between two ordinal variables, or, if both variables are interval

and the normality requirement may not be satisfied. The sample spearman correlation

coefficient is denoted rs and is given by: (Saleh; 2001)

( )

n2i

i 1s 2

6 dr 1

n n 1== −−

where:

rs = Spearman’s rank correlation coefficient

d = the difference in ranking between the usage and effectiveness of factors

n = the number of factors

Spearman rank correlation coefficient of the "project" group

Table 4.3 presents the spearman correlation coefficient for group "project" among

contractor, owner and consultant. For this group, the correlation coefficient between

contractor and owner equals to 0.782 with P-value (Sig.) = 0.006. The P-value is less

than the level of significance, 0.05α = , so there is a significant relationship between

contractor and owner. The correlation coefficient between contractor and consultant

equals to 0.804 with P-value (Sig.) = 0.004. The P-value is less than the level of

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60

significance, 0.05α = , so there is a significant relationship between contractor and

consultant. In addition, The correlation coefficient between owner and consultant

equals to 0.697 with P-value (Sig.) = 0.018. The P-value is less than the level of

significance, 0.05α = , so there is a significant relationship between owner and

consultant.

Table 4.3 : Correlation test of project group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Project 0.782 0.006* 0.804 0.004* 0.697 0.018*

* Correlation is significant at 0.05 significance level.

4.3.2 Group2: Contractor's responsibilities Contractors view

Table 4.4 shows that respondents contractors ranked "cash problem during

construction" in the first position with importance index (I.I = 83.08 %), which

indicates the high importance of cash for the progress of project. Any shortage of cash

for the contractor will cause many problems such as slow progress and work decline

in productivity. Also the contractors will not be able to purchase the needed

equipment for work. More over the problem of cash also expanded to traders and

suppliers, which in turn leads to slow the work, then to occurrence of project's delay.

This result coincides with the results of Arditi et al (1985), Assaf et al (1995),

Ogunlana et al (1996), Mezher and Tawil (1998), Al- Khalil et al (1999), Chan et al

(2002), Enshassi et al (2003), and Alaghbari et al (2007). The suitable description for

this consensus that the cash is very necessary for contractor regardless of the location

of research, economic level, or the culture of organization. But the contractors at the

study of Ogunlana et al (1996) in Thailand didn't consider the cash as one of

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61

important factor causing delay. The ability of contractor in Thailand may be the

suitable interpretation for this result.

The second important factor ranked by respondents contractors was poor site

management (I.I = 81.06 %). Poor management cause many constrains at the projects,

such as poor following up of progress, incorrect distribution of works, un commitment

of employees at the site, poor monitoring of project --etc. These factors above

contribute to delay the project.

Table 4.4 : Contractor's responsibilities factors that lead to time overruns

Contractor's responsibilities contractor consultant owner

II Rank II Rank II Rank

Cash problem during construction 83.08 1 92.59 1 83.06 1

Poor site management 81.06 2 87.96 2 80.65 2

Equipments and tool shortage on site 76.52 3 75.93 9 70.97 10

Unethical behaviors used by contractors to

achieve the highest possible level of profit 73.08 4 77.78 7 75.81 4

low productivity of labour 72.35 5 52.78 21 58.87 21

Dependence on a newly –graduated engineer to

bear the whole responsibilities in the site 71.97 6 65.74 14 63.71 15

Mistakes during construction 71.21 7 75.93 9 64.52 14

Lack of experience on the part of the

consultant's site- staff; (managerial and

supervisory personnel)

70.83 8 58.33 19 74.19 7

Poor distribution of labor 69.70 9 60.19 17 75.00 6

Lack of subcontractor's skills 69.32 10 73.15 11 67.74 11

Inadequate contractor experience 68.94 11 84.26 4 61.29 18

Insufficient number of staffs (contractor) 68.46 12 87.04 3 79.84 3

Contractor un commitment to consultant

instructions 66.67 13 77.78 7 67.74 11

Uncompromising attitude between parties 64.02 14 44.44 23 63.71 15

Spend some time to find sub-contractors

company who is appropriate for each task 63.26 15 78.70 6 66.94 13

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62

Table 4.4 : Contractor's responsibilities factors that lead to time overruns (cont.)

Contractor's responsibilities contractor consultant owner

II Rank II Rank II Rank

Poor communications and misunderstanding 62.69 16 70.37 13 59.68 20

Low harmony between technician team of

contractor and consultant which may lead to

controversy between both of them

62.50 17 72.22 12 62.90 17

Use of unemployment programs in projects 62.50 17 50.93 22 75.81 4

Equipment allocation problems 60.61 19 63.89 15 60.48 19

Failure in testing 60.61 19 84.26 4 73.39 8

Lack of protection of complete work 59.09 21 56.48 20 53.23 23

Often changing sub-contractors company 58.33 22 60.19 17 72.58 9

Insufficient contractor competition 57.20 23 61.11 16 58.87 21

The results of Arditi et al (1985), Assaf et al (1995), Chan et al (1996), Ogunlana et al

(1996), Kaming et al (1997), Kumaraswamy et al (1998), Al- Khalil et al (1999), Alwi

et al 2002, Odeh and Battaineh (2002), Enshassi et al (2003), Abudul-Rahman et al

(2006), and Alaghbari et al (2007) are similar to our finding. Poor site management

and delayed activities could lead to interruption of work sequence which eventually

lead to delay. The result of Mezher et al (1998) in Lebanon didn't coincide with this

result that poor site management cause delay. In Lebanon the managerial skills of

staff is available.

Equipment and tools shortage on site (I.I = 76.52 %) was ranked as the third factor

which cause delay in this group. The completion of various tasks requires special

equipment or tools. With shortage of equipment and tools, the delay will occur, which

lead to delay the project. The results of Assaf et al (1995), Ogunlana et al (1996),

Kaming et al (1997), Mezher et al (1998), Al- Khalil et al (1999), Alwi et al (2002),

Odeh and Battaineh (2002), Wong et al (2005), Abudul-Rahman et al (2006), and

Alaghbari et al (2007) didn't coincide with this finding that equipment and tools

shortage is one of the important factors cause delay. The researches were conducted in

places where construction equipment and tools shortage is not present as Jordan,

Saudi Arabia, Indonesia, Malaysia, Hong Kong --- etc. But this is not the case in Gaza

Strip, where construction equipment and tools shortage is frequently occurs due to the

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63

severe political situation and constrains. Enshassi et al (2003) agreed with the result

obtained in this research that equipment and tools shortage causes delay.

Respondents contractors considered "the unethical behavior used by contractor to

achieve the highest possible level of profit" (I.I = 73.08 %) as the fourth factor that

cause delay in this group. This mean that contractors are well understand that

unethical behaviors lead to significant disputes between the contractor and

supervision staff, and lead to mistrust. Finally these attitudes will cause a delay of

project.

Table 4.4 shows that respondents contractors ranked the "insufficient contractor

competition" (I.I =57.20 %) as the least factor that cause delay. The most appropriate

interpretation that there are a large number of contractors in Gaza Strip and the

number of projects are limited. This environment is a proper for high competition in

the construction industry markets.

Consultants view

Table 4.4 shows that the respondents consultants ranked the cash problem during

construction (I.I = 92.59 %) as the first factor to cause delay in this category, the

second factor to cause delay was poor site management (I.I = 87.96 %). This result is

in full conformity with the respondent contractors, but in the case of consultant, the

value of the importance index is higher.

The third important factor ranked by consultants was insufficient number of staff for

contractor (I.I = 87.04 %). This is a strong indication of the importance of the

technical staff for the contractor. The small number of staff cause a great burden on

the technical staff in work, which in turn leads to poor quality of work, increasing the

liabilities and responsibilities, and miss of concentration, which lead to a delay. The

problem is one of the major problems in Gaza Strip, where contractor often depends

on one engineer at the project to manage all technical and managerial activities of

project.

"Insufficient number of staff for contractor" have high importance index as mentioned

before, but in the researches of Arditi et al (1985), Ogunlana et al (1996), Karen et al

(2006), Alaghbari et al (2007), Chan et al (1996), Al- Khalil et al (1999), Alwi et al

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64

(2002), and Wong et al (2005) this factor has low rank. This contradiction was

because these researches were conducted in places with different culture, availability

of well trained personnel enforceable labour law such as Turkey, Arabia Saudi, Hong

Kong, Indonesia, Thailand and Malaysia.

"Inadequate contractor experience" (I.I = 84.26 %) and failure in testing (84.26 %)

were ranked as the fourth factors for delay by consultants at this group. This result

explains that the experience of contractor in work performance and executing of

similar projects will allow the contractor to execute the work more professionalism

and in short time, rather than the contractor executing the project for the first time. In

the same content, it is obvious that the failure of any test of various materials or

activities cause delay to the project. When failure occurs, the contractor would be

obligated to re-work the works or replace the failed materials.

The results of Chan et al (1996), Odeh and Battaineh (2002), Enshassi et al (2003),

and Karen et al (2006) agreed with the results of this thesis in that inadequate

contractor experience is one of the major factors that cause delay. The geographical

location or the culture of people didn't affect this factor, so the results in the Gaza

Strip and other countries are similar. Failure of test have a high importance index and

considered as one of important factors causing delay but Odeh and Battaineh (2002),

and Abudul-Rahman et al (2006) didn't agreed with this result. At Gaza Strip the

failure of tests mean rework, the rework need new materials, staff and to track the

schedule. This is a hard task in Gaza Strip due to shortage of materials due to closures

and inadequate experience of the contractors.

The respondents consultants ranked the "uncompromising attitude between parties"

(I.I = 44.44 %) as the least factor causing delay at this category. Consultants consider

that the divergence of views and attitudes among contractor, consultant and owner

doesn't lead to the delay of project, because each party interested in performing the

project on time.

Owners view

Table 4.4 shows that the respondents owners ranked "cash problem during

construction" (I.I = 83.06 %) as the first factor to cause delay in this category, and the

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65

second important factor was poor site management (I.I = 80.65 %). This result is

identical in terms of order with the contractor and consultant, which reflect the

importance of these factors. "Insufficient number of staff for contractor" (I.I = 79.84

%) is the third factor of time overruns ranked by owner. This result is identical in

terms of order with the consultant, so the result shows the importance of high

responsibilities of contractor's staff. This means that any shortage of staff

performance or their productivity leads to delay of the project.

"Unethical behaviors used by contractor to achieve the highest possible level of

profit" ( I.I = 79.84 %) and the "use of unemployment program in projects" ( I.I =

79.84 %) were classified as the fourth factors to cause time overrun in this category.

As mentioned before, any unethical behavior by contractor will cause disputes, then

lead to delay. The unemployment programs generate a large number of workers on

site, the unemployment programs were mainly created to help the poor people

regardless to their productivity. This will lead to poor productivity and then to the

occurrence of delay.

Respondents owners as shown in table 4.4 ranked the lack of protection of complete

work (I.I = 53.33 %) as the least factor of delay at this category. The protection of

work doesn't require high cost. It requires only the cost of guarding the site. Also it's

noted that destruction of any work at the project is difficult to occur. This

phenomenon is of low occurrence and therefore has no effect on the delay of the

project.

Spearman rank correlation coefficient of the " contractor responsibilities" group

Table 4.5 presents the spearman correlation coefficient for group "contractor's

responsibilities" among contractor, owner and consultant. For this group, the

correlation coefficient between contractor and owner equals to 0.544 with P-value

(Sig.) = 0.004. The P-value is less than the level of significance, 0.05α = , so there is

a significant relationship between contractor and owner. The correlation coefficient

between contractor and consultant equals to 0.477 with P-value (Sig.) = 0.011. The P-

value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and consultant. In addition, the correlation coefficient

between owner and consultant equals to 0.456 with P-value (Sig.) = 0.014. The P-

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66

value is less than the level of significance, 0.05α = , so there is a significant

relationship between owner and consultant.

Table 4.5 : Correlation test of contractor's responsibilities group among contractor, consultant

and owner

Group

Contractor

and owner P-

Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Contractor's

responsibilities

0.544 0.004* 0.477 0.011* 0.456 0.014*

* Correlation is significant at 0.05 significance level.

4.3.3 Group3: Consultant's responsibilities Contractors view

Table 4.6 shows that respondents contractors ranked "the delay of materials approval

by consultant" in the first position with importance index (I.I = 76.15 %), which

indicates the high importance of each party to perform required work. The delay of

materials approval will lead to suspend the work. If the delay of materials approval

was intentional or as a result of staff lacking experience, it will also cause a delay for

the project.

The research results of Sambasivan and Soon (2007), and Alaghbari et al (2007) show

similar result that the delay of materials approval by consultant is one of important

factors of delay. This agreement supports the importance of consultant role in

approving the materials. Also the result reflects the similarity of Gaza consultants and

Malaysian constructions environment regarding to this factor. The researchers results

of Ogunlana et al (1996), and Fong et al (2006) didn't agree with this result, that delay

of materials approval by consultant cause delay. The consultants in Hong Kong and

Thailand have enough experience to approve the construction materials in short time.

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67

The second important factor ranked by respondents contractors was "waiting time for

approval of tests and poor inspection" (I.I = 75.77 %). This result confirms what was

discussed in the previous paragraph, that the slow work of consultant will cause a

delay of project. In Gaza Strip, most of consultants consider themselves as the

decisions makers at the project, not as partners. The consultant may postponed some

activities, or may haven't sufficient experience to follow up these activities which lead

to slow the progress of the project, thus the delay will occur. This result coincides

with the results of Odeh and Battaineh (2002), Fong et al (2006), Sambasivan and

Soon (2007), and Alaghbari et al (2007), which reflect the high responsibility of

consultant in the approval of tests. Consultants should admit their duties and

responsibilities in construction process to save the time of the project.

Table 4.6 : Consultant's responsibilities factors that influencing time overruns

Consultant's responsibilities contractor consultant owner

II Rank II Rank II Rank

Delay of materials approval by consultant 76.15 1 51.85 4 66.13 4

Waiting time for approval of tests and Poor

inspection 75.77 2 53.70 3 70.97 1

Slowness in giving instructions 70.83 3 40.74 7 68.55 3

Centralization of decision making process from

consultant party 70.45 4 66.67 1 70.97 1

Delays of payments 70.45 4 38.89 8 55.65 9

Lack of technical and managerial skills of staff 70.08 6 37.96 10 65.32 5

Bad past history and reputation of the

consultant (corruption) 69.32 7 29.63 12 50.00 12

Lack of job security for the consultancy team 68.18 8 62.04 2 60.48 7

Bad contract management by Consultant 67.42 9 37.04 11 63.71 6

Little periodical sessions to address work

problems 64.77 10 45.37 5 46.77 13

Absence of consultant's site staff 62.50 11 41.67 6 56.45 8

Previous dispute between contractor and

consultant 61.15 12 18.52 13 54.03 11

Lack of quality assurance / control 60.61 13 38.89 8 55.65 9

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"Slowness in giving instructions" (I.I = 70.83 %) was ranked as the third factor to

cause delay at this group. In this group and for the third time, it shows the importance

of consultant decisions, the speed or slowness of these decisions and the impact of

these decisions on progress of the project. As mentioned in the previous paragraphs,

these decisions of consultant become prevalent culture to deal with the project. The

results of Alwi et al (2002), and Alaghbari et al (2007) agreed with this result, that

slowness in giving instruction is one of the major causes of delay. As mentioned

before, consultants should have sufficient experience to perform all of their

responsibilities quickly and with high professionalism. The lack of consultant's

instructions lead to project's delay.

Table 4.6 shows that respondents contractors ranked the "lack of quality assurance /

control" (I.I = 60.61 %) as the least factor that cause delay. The most appropriate

interpretation of this rank is that the consultants of Gaza Strip achieve the required

quality at construction projects, also the contractors are committed by the instructions

of consultant. In this case the quality will be achieved, so the quality of work doesn't

strongly contribute to the delay of project.

Consultants view

Table 4.6 shows that the respondents consultants ranked the "centralization of

decision making process from consultant party" (I.I = 66.67 %) as the first factor

causes delay at this category. The centralization of consultant decision making

process is one of important factor that affect the decisions of engineers at the site. The

site engineers and other lower positions resort to managers to deal with the matters of

work, this culture is prevailing in Gaza Strip. Therefore the weakness in the

personality and inadequate experience of those site engineers lead to the delay.

The second factor to cause delay was "lack of job security for the consultancy team"

(I.I = 62.04 %). This result reflects the concern over the situation of staff member of

consultant, they don't receive necessary job security. This results shows the high

importance of this factor. In Gaza Strip job security is not guaranteed in labour

markets. In Japan, job security is grant to all workers which motivate those workers to

accelerate the work, but when job security is not grant, the contrary would happen.

This certainly affects the quality of work, and then the delay will occurs. The third

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important factor ranked by consultant was waiting time for approval of tests and poor

inspection ( I.I = 53.70 %). This result is in full conformity with the results of the

respondent's contractors, this similarity of opinions reflects the importance of this

factor.

The respondents consultants as shown in table 4.6 classified the previous disputes

between contractor and consultant (I.I = 18.52 %) as the least factor to cause delay at

this category. Any previous disputes or bad relationship between the contractor and

consultant don't affect the progress of work, this result prove that the consultant is full

– neutral and doesn't preclude problems or difference in order to obtain the highest

quality at the project.

Owners view

Table 4.6 shows that the respondents owners ranked waiting time for approval of tests

and poor inspection (I.I = 70.97 %) as the first factor to cause delay at this category,

and also the "centralization of decision making process from consultant party" (I.I =

70.97 %). This result is identical in terms of order with the consultant, which reflects

the importance of this factor. Slowness in giving instructions (I.I = 68.55 %) is the

third factor of time overruns ranked by owner. This result is identical in terms of order

with the contractor, which reflects the importance of these factors.

Respondents owners as shown in table 4.6 ranked the little periodical sessions to

address work problems (I.I = 46.77 %) as the less important factor of delay at this

group. This result reduces the importance of periodic meetings to resolve problems

related to work. Therefore it doesn't affect the delayed projects, but this result shows

that there is a misunderstanding of the role of these meetings. These meetings are very

helpful in solving many problems, which might lead to delay of the project in the case

of failure to find appropriate solutions to these problems.

Spearman rank correlation coefficient of the "consultant responsibilities" group

Table 4.7 presents the spearman correlation coefficient for group "consultant's

responsibilities" among contractor, owner and consultant. For this group, the

correlation coefficient between contractor and owner equals to 0.649 with P-value

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(Sig.) = 0.008. The P-value is less than the level of significance, 0.05α = , so there is

a significant relationship between contractor and owner. The correlation coefficient

between contractor and consultant equals to 0.485 with P-value (Sig.) = 0.046 The P-

value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and consultant. In addition, the correlation coefficient

between owner and consultant equals to 0.538 with P-value (Sig.) = 0.029. The P-

value is less than the level of significance, 0.05α = , so there is a significant

relationship between owner and consultant.

Table 4.7 : Correlation test of consultant's responsibilities group among contractor, consultant and owner

* Correlation is significant at 0.05 significance level.

4.3.4 Group 4: Owners responsibilities Contractor views

Table 4.8 shows that respondents contractors ranked "owner delay in freeing the

contractor financial payments" in the first position with importance index (I.I = 76.52

%). Payments is considered as the first factor to complete the project on time, as any

delay of freeing contractor payments. It will affect contractor's financial

responsibilities, such as wages, the purchase of materials -- etc.

The results of Al- Khalil et al (1999), Chan et al (2002), Odeh and Battaineh (2002),

Enshassi et al (2003), Abudul-Rahman et al (2006), Fong et al (2006), Sambasivan

and Soon (2007), and Alaghbari et al (2007) agreed with this result, that owner delay

in freeing the contractor financial payment is one of important causes of delay.

Owners should perform their duties without delay. Payments are considered as

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Consultant's

responsibilities

0.649 0.008* 0.485 0.046* 0.538 0.029*

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backbone of contractor to complete the project on time. So the owner should be aware

of the importance of contractor's payments.

The second important factor ranked by respondents contractors was "contract

modification (replacement and addition of new- work to the project and change in

specification)" ( I.I = 75.76 %). Contract modification is one of the important reasons

that cause delay. As any modification in the technical specification, bill of quantities

or replace any work with another one, it would lead to disputes between the

contractor's and owner's teams. To solve these disputes and develop new agreements,

it takes additional time that affects the project schedule and hence affect the total

duration of the project.

Table 4.8 : Owner's responsibilities Factors that influencing time overruns

Owner's responsibilities contractor consultant owner

II Rank II Rank II Rank

Owner delay in freeing the contractor financial

payments 76.52 1 38.89 9

33.06 5

Contract modifications (replacement and

addition of – new work to the project and

change in specifications)

75.76 2 71.3 1 67.74 1

Owner – initiated variation 73.46 3 64.81 2 48.39 2

Unrealistic contract durations imposed by

owner 71.59 4

59.26 3 20.16 9

Owner interference 70.83 5 52.78 4 29.03 7

Unrealistic owners initial requirements 67.05 6 49.07 6 33.06 5

Lack of unified system for contracts, general

conditions, and specifications of projects 64.77 7 42.59 8 45.83 3

Owner has no priority/ urgency to complete the

project 62.12 8 50.00 5 26.61 8

High quality of work 54.55 9 48.15 7 35.48 4

"Owner initiated variation" (I.I = 73.46 %) was ranked as the third factor to cause

delay at this group. Variation order is one of obvious reasons to extend the original

duration of project, thus it contributes to delay of the project handing over. Often the

required additional duration of variations are specified in the agreement. This result is

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coincides with the result of Fong et al (2006) and Lo et al (2006). This agreement

reflects the importance of this factor. Variation hold the project to additional duration

and cost, so in this case the "owner's responsibility" of delay is high.

Table 4.8 shows that respondents contractors ranked "high quality of work" (I.I =

54.55 %) as the least factor that cause delay. The most appropriate interpretation of

this rank is that the required quality of work at Gaza Strip is high; also the quality

standards are similar in all projects. Through the tendering phase the owner specify

the needed quality of work, so the contractor attended to this point from the beginning

of the project.

Consultants view

Table 4.8 shows that the respondents consultants ranked the "contract modification

(replacement and additional of - new work to the project and change in specification)"

( I.I = 71.3 %) and "owner – initiated variation" ( I.I = 64.81 %) as the first and

second factors causes of delay. This result is in full conformity with the results of the

respondent's contractors, this similarity of opinions reflect the importance of these

factors.

The third factor ranked by consultants was the "unrealistic contract duration imposed

by owner" ( I.I = 59.22 %). This is a strong indication of the importance of project

duration. In Gaza Strip, the project duration determined roughly, the owner depends

on his/her experience to determine the project duration, therefore the project may be

delayed. One of the important obligations of owner is to determine the duration of

project according to the volume of activates. Owners in the Gaza Strip don't

determine the projects duration precisely, then the project will be delayed. Odeh and

Battaineh (2002), Fong et al (2006), Lo et al (2006), and Sambasivan and Soon (2007)

have similar results that it's very important to determine the duration of project

precisely by the owner and to be realistic in terms of type, volume and location of

project.

The respondents consultants as shown in table 4.8 ranked the "owner delay in freeing

the contractor financial payments" (I.I = 38.89 %) as the least factor causes delay at

this category. In this case the consultant's opinion completely contradicts with the

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contractors. The suitable explanation of this case, that the consultant considers that

there is an existing cash with contractor, to meet his/ her needs when the payment is

delayed. To reconcile the opinions of contractor and consultant, contractor should

store a part of cash, and owner to fasten the payments of contractor to avoid harming

the contractor.

Owners view

Table 4.8 shows that the respondents owners ranked the contract modification

(replacement and additional of - new work to the project and change in specification)

(I.I = 67.74 %) as the first factor to cause delay at this category, and the second

important factor was owner initiated variation (I.I = 48.39 %). In this group the

arrangement doesn't mean the importance of these factors in causing the delay.

Owners didn't consider themselves as the one of direct causes of delay. Owners give

high priority to complete the project on time, so the owners can benefit from project.

This means that owners hold the responsibilities of delay to others.

Spearman rank correlation coefficient of the "owner's responsibility" group

Table 4.9 presents the spearman correlation coefficient for group "owner's

responsibilities" among contractor, owner and consultant. For this group, the

correlation coefficient between contractor and owner equals to 0.363 with P-value

(Sig.) = 0.169. The P-value is greater than the level of significance, 0.05α = , so there

is insignificant relationship between contractor and owner. The correlation coefficient

between contractor and consultant equals to 0.384 with P-value (Sig.) = 0.154. The P-

value is greater than the level of significance, 0.05α = , so there is insignificant

relationship between contractor and consultant. In addition, the correlation coefficient

between owner and consultant equals to 0.623 with P-value (Sig.) = 0.037. The P-

value is less than the level of significance, 0.05α = , so there is a significant

relationship between owner and consultant.

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Table 4.9 : Correlation test of owner's responsibilities group among contractor, consultant and

owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-

Value

Owner

and consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Owner's

responsibilities

0.363 0.169 0.384 0.154 0.623 0.037*

* Correlation is significant at 0.05 significance level.

4.3.5 Group 5: Professional management factors Contractors view

Table 4.10 shows that the respondents contractors ranked "the poor judgment in

estimating time and resource" in the first position with importance index (I.I = 75.00

%), which indicates the high importance of estimating time and resource of each

activity. The project is a series of activities, so in the case of labour shortage or in the

case of inaccurate estimation of any time or resources of activities, the project will be

delayed. This result agreed with the results of Mezher et al (1998), Enshassi et al

(2003), and Abudul-Rahman et al (2006). The suitable interpretation for this

agreement is that the estimation of time and required resource is very critical and

important task.

Table 4.10 : Professional management factors that lead to time overruns

Professional Management factors contractor consultant owner

II Rank II Rank II Rank

Poor judgment in estimating time and resources 75.00 1 53.7 8 66.13 4

Poor provision of information to project

participants 73.48 2 66.67 4 66.13 4

Inadequate construction planning 71.97 3 75.00 1 65.32 6

Inadequate managerial skills for all parties 71.97 3 65.74 5 70.16 2

Low speed of decision making within each

project team 71.97 3 62.04 6 71.77 1

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Table 4.10 : Professional management factors that lead to time overruns (cont.)

Professional Management factors contractor consultant owner

II Rank II Rank II Rank

Back of follow up for the project schedule and

absence of continuous tracking 71.97 3 72.22 3 59.68 10

Slow of inspection and testing procedure used

in project 71.21 7 29.63 11 60.48 9

Bad preparing and approval of shop drawings 70.83 8 55.56 7 65.32 6

Lack of personnel training and management

support 70.83 8 53.7 8 57.26 11

Lack of contractor's home office follows up 70.83 8 45.37 10 62.10 8

Rework of bad quality performance 67.80 11 74.07 2 69.35 3

The second important factor ranked by respondents contractors was the "poor

provision of information to project participants" (I.I = 73.48 %). The poor provision

of information to project participants is probably one of two cases; the first one, is that

site engineer may behaves moody, this behavior generate many problems which may

cause delay. The second case is the frequent occurrence in the site, which can't be

solved by site engineers, such as the progress of work, labour, productivity, payments

and others which will lead to delay of the project

Table 4.10 shows that respondents contractors ranked the "rework of bad quality

performance" (I.I = 67.80 %) as the least factor that cause delay. The contractor

considered the rework as a result of contractor's errors, and the contractor is the only

party who is responsible of this type of delay. This result of respondents contractors

isn't convincing, because the rework needs additional duration and cost, which means

the delay must occur.

Consultants view

Table 4.10 shows that the respondents consultants ranked the "inadequate

construction planning" (I.I = 75.00 %) as the first factor to cause delay. This result

shows the importance of planning and time scheduling to deliver the project on time.

When the activities execution is without priorities of tasks and without knowledge of

critical path activities, it certainly causes the delay of project. The research results of

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Alwi et al (2002), Enshassi et al (2003), Abudul-Rahman et al (2006), and Fong et al

(2006) agreed with the result of this thesis, that the inadequate construction planning

is one of the major causes of delay.

The second factor to cause delay was "rework of low quality performance" ( I.I =

74.07 %). Certainly the rework of low quality performance cost more time, efforts,

and money, so the contractor must be aware of the quality of the work performed. The

third factor ranked by consultants was "lack of follow up the project schedule and

absence of continuous tracking" (I.I = 72.22 %). One of the most major management

problems in Gaza Strip is poor planning and monitoring of the project, particularly by

the contractor. The absence of time schedule tracking cause many problems such as;

contractor's ignorance with progress rate of project, the resource needed to complete

the project and the delivery date of project. These matters mentioned above lead to

delay the project.

The respondents consultants as shown in table 4.10 classify the "slowness of

inspection and testing procedure used in project" (I.I = 29.63 %) as the least factor to

cause delay in this group. In this case the consultant considered himself as

irresponsible of delays, even if he play a major role in slowing the inspections of the

work, or use unreasonable procedures in testing. This opinion in consistent to some

extent with what is happening at the site, because any failure of consultants duties

may cause project delay.

Owners view

Table 4.10 shows that the respondents owners ranked slowness of decision making

within each project team (I.I = 71.77 %) as the first factor causes delay in this

category. This result shows the effectiveness of decision making on time whether it is

from the contractor, consultant or owner. Any delay in the decision would certainly

stop the related activity, then it leads to disputes among parties, which means a delay

of the project. The results of Alwi et al (2002), Odeh and Battaineh (2002), Enshassi

et al (2003), and Alaghbari et al (2007) coincide with research result that the slow

decision making within each project team is one of important factors to cause delay.

however Al- Khalil et al 1999, and Assaf et al (2006) contravenes with this result. The

size of projects, and availability of experts may be the cause of contradiction.

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"Inadequate managerial skills for all parties" (I.I = 70.16 %) was ranked as the second

factor of time overruns ranked by owners. Each party at the project should has the

adequate managerial skills and a particular experience to manage the various tasks at

the project with proper techniques. As any floundering in the management of a

project, lack in organizing the work in the site, or failure in resource organization

would cause delay to the project.

"Rework of low quality performance" (I.I = 69.35 %) was classified as the third factor

to cause time overrun in this category. This result is identical in terms of order with

the consultant, which reflects the importance of this factor. Respondents owner as

shown in table 4.6 ranked the lack of personnel training and management support (I.I

= 57.26 %) as the least factor of delay at this category. Lack of top management

supports contributes significantly in the lack of sufficient experience of engineers. As

the weakness of experience and training effect the productivity of staff in the site.

Spearman rank correlation coefficient of the " professional management" group

Table 4.11 presents the spearman correlation coefficient for group "professional

management" among contractor, owner and consultant. For this group, the correlation

coefficient between contractor and owner equals to 0.021 with P-value (Sig.) = 0.476.

The P-value is greater than the level of significance, 0.05α = , so there is insignificant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to - 0.073 with P-value (Sig.) = 0.415. The P-value is

greater than the level of significance, 0.05α = , so there is insignificant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.43 with P-value (Sig.) = 0.094. The P-value is

greater than the level of significance, 0.05α = , so there is insignificant relationship

between owner and consultant.

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Table 4.11: Correlation test of professional management group among contractor, consultant

and owner

Group

Contractor

and owner P-

Value

Contractor

and consultant P-

Value

Owner and

consultant P-

Value Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Professional

Management 0.021 0.476 -0.073 0.415 0.430 0.094

* Correlation is significant at 0.05 significance level.

4.3.6 Group 6: Design and documentation factors Contractors view

Table 4.12 shows that respondents contractors ranked "incomplete drawings" in the

first position with importance index (I.I = 71.59 %). Sometimes the site is handed

over to contractor while the drawings of the project are incomplete, so the consultant

should complete these drawing before start the work. In some occasions, the

consultant may complete the drawings gradually, according to the priorities of

activities. For the two cases, the project is delayed. therefore the design team should

complete the drawings before the tendering phase. This result is agreed with the result

of Ogunlana et al (1996) that incomplete drawing is one of important causes of delay.

Incomplete drawing doesn't affect with the location of country, but with the

professionalism of designer.

The second important factor ranked by respondents contractors was "poor

documentation and no detailed written procedures" (I.I = 68.56 %). The absence of

documentation doesn't help the engineer to deal with different events in the site, so

there is a great opportunity for project's delay. The results of Alwi et al (2002),

Abudul-Rahman et al (2006), Fong et al (2006), and Alaghbari et al (2007) are

coincide to this result, that poor documentation is one of the important factor of delay.

This agreement reflects the importance of documentation. The documentation

adequacy depends on the experience of contractor, the registration of events and

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completed activities, which help the contractor to enhance the progress, then to

deliver the project on time.

Table 4.12 : Design and Documentation factors that influencing time overruns

Design and Documentation factors contractor consultant owner

II Rank II Rank II Rank

Incomplete drawings 71.59 1 52.78 5 62.10 2

Poor documentation and no detailed written

procedures 68.56 2 59.26 2 63.71 1

Lack of designer's experience 65.53 3 48.15 6 54.84 6

Unclear specifications 65.53 3 67.59 1 56.45 4

Poor design 64.39 5 42.59 8 52.42 7

Delays in design work / lack of design

information 64.39 5 55.56 3 55.65 5

Not using systematic procedures 64.39 5 44.44 7 62.10 2

Slow drawing revision and distribution 61.36 8 53.70 4 49.19 8

Lack of designer's experience (I.I = 65.53 %) was ranked as the third factor to cause

delay in this group. This reason of time overruns is one of the clearest factors that

cause delay. The lack of designer's experience cause many problems such as;

difficulty of execution, incomplete drawings, inaccuracy of tender documents and

unsafe design, which collectively give strong chance to project delay.

Respondents contractors considered the unclear specifications (I.I = 65.53 %) as the

third factor that cause delay in this group. The unclear specification is considered as a

prime reason to make disputes between all parties of the project, each party try to

interpret the specification according to his understanding, so disputes may occur. This

result coincide with the results of Alwi et al (2002), and Assaf et al (2006). The

suitable description of this agreement that the specification is one of the most

important component of the regardless to geographical location.

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Table 4.12 shows that respondents contractors ranked the "slow drawings revision and

distribution" (I.I = 61.36 %) as the least factor that cause delay. The most appropriate

interpretation of this rank is that the slow revision of drawing isn't a major obstacle

for the execution of work and doesn't affect the productivity of workers.

Consultants view

Table 4.12 shows that the respondents consultants ranked unclear specification (I.I =

67.59 %) as the first important factor to cause delay in this category. This result is in

full conformity with the respondent contractors, but in the case of consultant, the

proportion of the importance index is higher than contractor, which means that

consultant are more technically aware of these elements and give them greater priority

than others.

The second factor to cause delay was poor documentation and no detailed written

procedure ( I.I = 59.26 %). This result is in full conformity with the respondents

contractors, but in the case of consultant, the value of the importance index is higher

than contractor, which means that consultant is more technically aware of these

elements and gives them greater priority than others. The third factor ranked by

consultant was delays in design work / lack of design information ( I.I = 55.56 %).

This is a strong indication of the importance of design completion before the

tendering phase. Since the design is a part of the first phases of the project, any delay

in design process would certainly affect the time schedule for completing the project.

The respondents consultants as shown in table 4.12 ranked the poor design (I.I =

42.59 %) as the least factor to cause delay in this category. Consultant considers that

poor design doesn't affect the delay of the project. This view is significantly true,

because the design is executed at the early phase of the project, so any problem can be

solved before the beginning of project's construction.

Owners view

Table 4.12 shows that the respondents owners ranked the poor documentation and no

detailed written procedure (I.I = 63.71 %) as the first factor to cause delay in this

category. The second important factor was Incomplete drawings (I.I = 62.10 %). This

result is identical in terms of order with the contractor and consultant, which support

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the importance of these factors. Not using systematic procedures (I.I = 62.10 %) also

is the second factor for time overruns ranked by owner. These results emphasis the

need to use modern methods and procedure of documentation process, it is possible to

use modern technologies such as sophisticated computer programs and internet in

organizing the documents of project. Respondents owners as shown in table 4.12

ranked the slow drawings revision and distribution (I.I = 49.19 %) as the least factor

of delay in this category, this result is identical in terms of order with contractors.

Spearman rank correlation coefficient of the " design and documentation" group

Table 4.13 presents the spearman correlation coefficient for group "design and

documentation" among contractor, owner and consultant. For this group, the

correlation coefficient between contractor and owner equals to 0.759 with P-value

(Sig.) = 0.014. The P-value is less than the level of significance, 0.05α = , so there is

a significant relationship between contractor and owner. The correlation coefficient

between contractor and consultant equals to 0.189 with P-value (Sig.) = 0.327 The P-

value is greater than the level of significance, 0.05α = , so there is insignificant

relationship between contractor and consultant. In addition, the correlation coefficient

between owner and consultant equals to 0.131 with P-value (Sig.) = 0.379. The P-

value is greater than the level of significance, 0.05α = , so there is insignificant

relationship between owner and consultant. Table 4.13 : Correlation test of design and documentation group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Design and

Documentation

0.759 0.014* 0.189 0.327 0.131 0.379

* Correlation is significant at 0.05 significance level.

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4.3.7 Group 7: Materials related factors Contractors view

Table 4.14 shows that respondents contractors ranked "lack of materials in markets"

in the first position with importance index (I.I = 90.53 %), which indicates the high

importance of materials in the project. Lack of materials in markets is one of the

clearest factors that cause delay of the project. In Gaza Strip and according to

extraordinary political and economic situation, there are great difficulties to get

materials, specially because the borders of Gaza Strip is controlled by Israeli

occupation.

This result coincide with results of Ogunlana et al (1996), Abudul-Rahman et al

(2006), Sambasivan and Soon (2007), and Alaghbari et al (2007) that the lack of

materials is one of the important causes of delay. But the result of Mezher et al

(1998), Alwi et al (2002), Odeh and Battaineh (2002), Assaf et al (2006), and Fong et

al (2006) are in contradiction with this result. In the Saudi Arabia, Jordan, China,

Indonesia and Lebanon, there isn't any problem of materials. These countries have an

a great international markets, they can get the materials of construction easily. In

Gaza Strip the markets are limited and borders closure increases the problems of

materials.

The second important factor ranked by respondents contractors was "the shortage of

construction materials at site" (I.I = 90.15 %). Contractor should have their own stores

in order to be able to store required construction materials to the project. This

behavior protects the contractor from any shortage of materials. The closures will lead

to shortage of construction materials. If the contractor was not well prepared for such

situation, the project will be delayed.

The research results of Ogunlana et al (1996), Abudul-Rahman et al (2006),

Sambasivan and Soon (2007), and Alaghbari et al (2007) coincide with this result,

that the shortage of construction materials in site is very important factor of delay.

This result reflect the importance of materials in the construction process. The results

of Mezher et al (1998), Alwi et al (2002), Odeh et al (2002), Assaf et al (2006), and

Fong et al (2006) contravenes with this result. The surveyed places of these

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researchers have international opened markets, which means that the construction

materials are available.

Table 4.14 : Materials related factors that lead to time overruns

Materials related factors contractor consultant owner

II Rank II Rank II Rank

Lack of materials in markets 90.53 1 81.48 3 91.13 1

Shortage of construction materials at site 90.15 2 65.74 7 87.10 2

Delay of material delivery to site 89.77 3 87.96 1 82.26 3

low quality of materials 76.52 4 70.37 4 75.00 5

No adherence with materials standards that is

storage in the site 76.14 5 85.19 2 78.23 4

Poor material handling on site 73.86 6 65.74 7 70.16 6

Inappropriate / misuse material 72.73 7 69.44 5 62.9 8

Poor procurement programming of materials 70.45 8 66.67 6 63.17 7

"Delay of materials delivery to site" (I.I = 89.77 %) was ranked as the third factor to

cause delay in this group. Any delay in the supply of materials to the site means that

there is mismanagement of contractor. The failure of supplying materials on time

mean that contractor will lose the efforts of human resources and also lose the time of

execution, then the delay will occur. The research results of Alwi et al (2002),

Alaghbari et al (2007) gave similar result that " the delay of materials delivery to the

site" is important factor of delay, but the results of Mezher et al (1998), Al- Khalil et

al (1999), Chan et al (2002), and Assaf et al (2006) contravenes with this result.

Table 4.14 shows that respondents contractors ranked the "poor procurement of

materials" (I.I = 70.45 %) as the least factor that cause delay. The most appropriate

interpretation of this rank is that the procurement procedures of materials are well

defined for workers. Any defect in these procedures could be treated quickly. In this

case, there is little chance of project's delay.

Consultants view

Table 4.14 shows that the respondents consultants ranked the delay of materials

delivery to site (I.I = 87.96 %) as the first factor to cause delay in this category. This

result is in full conformity with the respondents contractors but in case of consultant,

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the value of the importance index is higher, which means that consultant more

technically aware of these elements and gives them greater priority.

The second factor to cause delay was "no adherence with materials standards that is

strong in the site" (I.I= 85.19 %). The lack of commitment of specifications of

materials is one of the most obvious factors to cause delay. Since the contractor looses

time during the replacement of rejected materials with another accepted materials. In

the case of using these materials, the consultant will reject these activities and the

contractor is forced to rework the related activities. All of previous reasons can cause

delay of project.

The third factor ranked by consultants was the lack of materials in markets (I.I =

81.48 %). This is a strong indication of importance of this factor. This result is in full

conformity with the respondent contractors but in the case of consultant, the value of

the importance index is higher, which means that the consultants are more aware of

these elements and give them greater priority.

The respondents consultants as shown in table 4.14 ranked the "shortage of

construction materials at site" (I.I = 65.74 %) and the poor materials handling on site

(I.I = 65.74%) as the least factors to cause delay at this category. The interpretation of

this result that the labour and the staff of contractor are aware to the importance of

materials such as; method of use, handling, and how to best utilize of these materials,

so regarding to this factor, the problems are rare, and the chance of delay is also rare.

Owners view

Table 4.14 shows that the respondents owners ranked the "lack of materials in

markets" (I.I = 91.13 %) as the first factor to cause delay in this category, and the

second factor was shortage of construction materials at site (I.I = 87.1 %). And the

third factor to cause delay was the delay of materials delivery to site, (I.I = 82.26 %).

This result is identical in terms of order with the contractor and consultant, which

support the importance of these factors.

Respondents owners as shown in table 4.14 ranked the "inappropriate / miss use

materials" (I.I = 62.90 %) as the least factor of delay in this category. As mentioned

before, the misuse of materials is also considered as ineffective factor of delay. In

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Gaza Strip the labour are aware of construction materials usage and the labour has

well understanding of the importance of these materials for work execution and how

to best utilize these materials. In this case the problems of project's delay are rare.

Spearman rank correlation coefficient of the " materials" group

Table 4.15 shows the spearman correlation coefficient for group "materials" among

contractor, owner and consultant. For this group, the correlation coefficient between

contractor and owner equals to 0.923 with P-value (Sig.) = 0.001. The P-value is less

than the level of significance, 0.05α = , so there is a significant relationship between

contractor and owner. The correlation coefficient between contractor and consultant

equals to 0.457 with P-value (Sig.) = 0.128. The P-value is greater than the level of

significance, 0.05α = , so there is insignificant relationship between contractor and

consultant. In addition, the correlation coefficient between owner and consultant

equals to 0.499 with P-value (Sig.) = 0.104. The P-value is greater than the level of

significance, 0.05α = , so there is insignificant relationship between owner and

consultant. Table 4.15 : Correlation test of materials group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Materials 0.923 0.001* 0.457 0.128 0.499 0.104

* Correlation is significant at 0.05 significance

4.3.8 Group 8: Execution related factors Contractor views

Table 4.16 shows that respondents contractors ranked "the price escalation of

materials and for manpower" in the first position with importance index (I.I = 75.00

%). The elevated prices of materials and manpower lead the contractor to search for

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alternatives. In this case, the contractor spend a long duration to find these

alternatives, which affects the time of project's completion. On the other hand, the

escalation of materials prices de accelerates of project progress, then the delay to be

occur. This result contravenes with the result of Ogunlana et al (1996), that price

escalation of materials and for manpower is important factor of delay. In Thailand the

economic level and availability of materials differ from the situation of Gaza. In Gaza

Strip, the prices changes radically according to political situation, but in Thailand the

escalation of prices is low.

The second important factor ranked by respondents contractors was "inappropriate

construction method" (I.I = 72.35 %) . It's very important for contractor to put method

of statement at the beginning of project, this method of statement should contain

activities relationships along with the required resources for each activity. This

method should be flexible and to be updated according to the progress of project. This

result coincide with Mezher et al (1998), Alwi et al (2002), and Odeh and Battaineh

(2002), that the inappropriate construction method is one of important factor of delay.

This agreement reflect the importance of this factor. The construction methods aren't

affected by geographical location, but affected by performance of contractor's

personnel.

"The poor equipment choice/infective equipment" (I.I = 68.18 %) was ranked as the

third factor to cause delay in this group. This result reflect the importance of

equipments for work execution, so contractor must have adequate experience in

choosing the appropriate equipment to be used in the project. Failure of selection of

equipment would affects the time of the project. The research results of Mezher et al

(1998), Alwi et al (2002), and Odeh and Battaineh (2002) contravenes with this result

that, poor equipment is one of the important factors that cause delay. In Lebanon,

Jordan and Indonesia, it's so easy to get the required equipment, these countries have

a free borders.

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Table 4.16 : Execution related factors that lead to time overruns

Execution related factors contractor consultant owner

II Rank II Rank II Rank

Price escalation of materials and for manpower 75.00 1 72.22 1 69.35 2

Inappropriate construction methods 72.35 2 72.22 1 74.19 1

poor equipment choice/ infective equipment 68.18 3 60.19 4 54.84 5

Highly bureaucratic organization 67.80 4 49.07 6 58.87 4

Project construction complexity 64.02 5 67.59 3 64.52 3

Lack of a strong organizational culture 60.61 6 55.56 5 51.61 6

Too much overtime for labour 57.58 7 37.96 7 47.50 7

Table 4.16 shows that the respondents contractors ranked the "too much over time of

labour" (I.I = 57.58 %) as the least factor to cause delay. The most appropriate

interpretation of this rank is that the over time working hours is rare in Gaza Strip,

even the identification of official working hours is fuzzy. This make workers to feel

injustice, so the contractor is aware to this problem and can solve such problems in

proper ways.

Consultants view

Table 4.16shows that the respondents consultants ranked the "price escalation of

materials and manpower" ( I.I = 72.22 %) as the first factor to cause delay at this

category, and the first factor also cause delay was inappropriate construction method

(I.I = 72.22 %). This result is in full conformity with the results of the respondent's

contractors, this similarity of opinions reflect the importance of this factor. The third

factor ranked by consultants was the project construction complexity ( I.I = 67.59 %).

This is a strong indication that the construction is a complex industry.

The respondents consultants as shown in table 4.16 classified the high quality of

failure needed "the too much overtime for labour" (I.I = 37.96 %) as the least factor to

cause delay at this category. This result is in full conformity with the results of the

respondent's contractors, this similarity of opinions reflects the importance of this

factor.

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Owners view

Table 4.16 shows that the respondents owners ranked the "inappropriate method" (I.I

= 74.19 %) as the first factor to cause delay in this category, and the second important

factor was price escalation of materials and for manpower (I.I = 69.35 %). This result

is identical in terms of order with the contractor and consultant, which support the

importance of these factors. Project construction complexity (I.I = 64.52 %) is the

third factor of time overruns ranked by owners. This result is identical in terms of

order with the consultant, this similarity of opinion reflect the importance of this

factor.

Respondents owners as shown in table 4.16 ranked the "too much over time for

labour" (I.I = 47.50 %) as the least important factor of delay at this category. This

result is in full conformity with the respondents contractors and consultants, this

similarity of opinions reflect the non importance of this factor.

Spearman rank correlation coefficient of the "execution" group

Table 4.17 shows the spearman correlation coefficient for group "execution" among

contractor, owner and consultant. For this group, the correlation coefficient between

contractor and owner equals to 0.836 with P-value (Sig.) = 0.010. The P-value is less

than the level of significance, 0.05α = , so there a significant relationship between

contractor and owner. The correlation coefficient between contractor and consultant

equals to 0.768 with P-value (Sig.) = 0.022. The P-value is less than the level of

significance, 0.05α = , so there exists a significant relationship between contractor

and consultant. In addition, the correlation coefficient between owner and consultant

equals to 0.871 with P-value (Sig.) = 0.005. The P-value is less than the level of

significance, 0.05α = , so there is a significant relationship between owner and

consultant.

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Table 4.17: Correlation test of execution group among contractor, consultant and owner

* Correlation is significant at 0.05 significance level.

4.3.9 Group 9: Labour and equipment factors Contractor views

Table 4.18 shows that contractors respondents ranked "the shortage of equipment at

site" in the first position with importance index (I.I = 76.52 %), which indicates the

high importance of equipment to complete the project on time. Shortage of

equipments causes many problems such as; dependence on labour instead of

equipments, decline of productivity and the difficulty of execution, so the delay may

occur. Shortage of equipment in site is major cause of delay but Al- Khalil et al

(1999) and Assaf et al (2006) contravenes with this result. The study of Alwi et al

(2002) and Alaghbari et al (2007) was in Saudi Arabia, this country have an opened

markets. In case of shortage of equipment, the project will be exposed to delay. Alwi

et al (2002) and Alaghbari et al (2007) coincide with our finding, which reflect the

importance of equipment for construction industry. Table 4.18 : Factors influencing time overruns (Labor and equipments factors)

Labor and equipments factors contractor consultant owner

II Rank II Rank II Rank

Shortage of equipment at site 76.52 1 69.44 2 78.23 1

Shortage of site workers 76.14 2 63.89 3 75.00 3

Skilled labor shortage 73.48 3 58.33 6 76.61 2

Equipment availability and failure 70.45 4 63.89 3 64.52 6

Inaccurate prediction of equipment production

rate 68.18 5 71.3 1 69.35 4

lack of maintenance for the equipment 66.92 6 61.11 5 66.13 5

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Execution 0.836 0.010* 0.768 0.022* 0.871 0.005*

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Table 4.18 : Factors influencing time overruns (Labor and equipments factors) (cont.)

Labor and equipments factors contractor consultant owner

II Rank II Rank II Rank

Unskilled operators 65.91 7 47.22 9 60.48 7

Ageing of site workers 53.41 8 51.85 8 54.03 8

Different political and factional affiliation of

workers 35.98 9 57.41 7 32.26 9

The second important factor ranked by respondents contractors was the shortage of

site workers (I.I = 76.14 %). The labour market in Gaza Strip is busy due to high level

of unemployment, but the contractors often relies on small number of them to perform

project's activities. The physical and psychological burden of labour is much; the

problem become more complex due to low wages of labour. This result coincide with

the result of Ogunlana et al (1996). Construction industry is human incentive, means

that the human resources is the prime resource for construction. So any shortage of

human resource will definitely leads to delay.

"The skilled labour shortage" (I.I = 73.48 %) was ranked as the third factor to cause

delay in this group. This reason of time overrun is one of the clearest factors that

cause delay. The skilled labour affects the level of quality, facilitate the handing of the

completed works and perform the work successfully, therefore shortage of skilled

labour cause delay of project.

The results of Mezher et al (1999) and Alaghbari et al (2007) gave similar results, that

the skilled labour shortage is a major cause of delay, but Abudul-Rahman et al (2006),

Assaf et al (2006) and Lo et al (2006) didn't coincide with this result.

Table 4.18 shows that respondents contractors ranked the "different political and

factional affiliation of workers" (I.I = 35.98 %) as the least factor that cause delay.

The most appropriate interpretation of this rank is that Gaza Strip characterized with

high political fluctuation, but due to miserable economic situation, high levels of

unemployment, and poverty, the workers tend to avoid any possibility of losing their

work. The workers are then avoid any political conflicts at site.

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Consultants view

Table 4.18 shows that the respondents consultants ranked "inaccurate prediction of

equipment production" (I.I = 71.30 %) as the first factor causes delay in this category.

Failure to predict the production rate of equipment is one of important reason for

delay, it causes many problems due to the negative impact of this inaccurate

predication, including errors in time schedule, the number of required equipments and

resources required at the project. The second factor to cause delay was "the shortage

of equipment at site" (I.I= 69.44 %). This result is in full conformity with the results

of the respondent's contractors, this similarity of opinions reflects the importance of

this factor.

The third important factor ranked by consultants was "the shortage of site workers"

(I.I = 63.89 %). This is a strong indication of importance of workers in project

success. This result is in full conformity with the results of the respondent's

contractors, this similarity in opinions support the results of the study, and emphasis

the importance of this factor. The respondents consultants as shown in table (4.10)

classify the "unskilled operator" (I.I = 47.22 %) as the least factor to cause delay at

this category. This result shows that the operator don't have any interference in a

delay, those operators perform specific functions in the site. In the case of delay, it is

not necessary that the operator cause the problem of delay.

Owners view

Table 4.18 shows that the respondents owners ranked the shortage of equipment at

site (I.I = 78.23 %) as the first factor to cause delay in this category. The second factor

was skilled labour shortage (I.I = 76.61 %), and the shortage of site workers (I.I =

75.00 %) was the third factor of time overruns ranked by owner. These results are

identical in terms of order with the contractor and consultant, which support the

importance of these factors. Respondents owners as shown in table (4.18) ranked

different political and factional of workers (I.I = 32.26 %) as the least factor of delay

at this category. This result is in full conformity with the respondents contractors.

This similarity of opinions reflects the importance of this factor.

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Spearman rank correlation coefficient of the " labour and equipment" group

Table 4.19 presents the spearman correlation coefficient for group "labour and

equipment" among contractor, owner and consultant. For this group, the correlation

coefficient between contractor and owner equals to 0.977 with P-value (Sig.) = 0.000.

The P-value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to 0.438 with P-value (Sig.) = 0.119. The P-value is

greater than the level of significance, 0.05α = , so there is insignificant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.482 with P-value (Sig.) = 0.095. The P-value is

greater than the level of significance, 0.05α = , so there is insignificant relationship

between owner and consultant.

Table 4.19: Correlation test of labour and equipment group among contractor, consultant and

owner

* Correlation is significant at 0.05 significance level.

4.3.10 Group 10: Contractual relationship factors Contractors view

Table 4.20 shows that respondents contractors ranked "the major disputes and

negotiations" in the first position with importance index (I.I = 71.97%). Disputes are

one of the important reasons of delay, it generate mistrust among parties, lack of

commitment to instructions by contractor, and complicated procedure in handing the

completed activities by consultant. These events at site put all parties of project under

stress, and then the delay may occur. This result coincide with Sambasivan and Soon

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Labor and

equipment 0.977 0.000* 0.438 0.119 0.482 0.095

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(2007), that the major disputes and negations is one of major factors of delay. At any

time, or in any place, the disputes destroy the relations between project's parties, then

as a result; the delay will occur.

Table 4.20 : Contractual relationship factors that lead to time overruns

Contractual relationship factors contractor consultant owner

II Rank II Rank II Rank

Major disputes and negotiations 71.97 1 88.89 1 72.58 1

Mistakes and discrepancies in contract

documents 68.94 2 73.15 2 70.97 2

Inappropriate overall organizational structure

linking- all parties to the project 68.56 3 72.22 3 68.55 3

Inappropriate type of contract used 64.39 4 46.30 4 52.42 4

* Correlation is significant at 0.05 significance level.

The second important factor ranked by respondents contractors was "mistakes and

discrepancies in contract documents" (I.I = 68.94 %). Any mistakes in the contract

between owner and contractor will expose the project to additional variations, also

any discrepancy opens the gate to disputes and arguments. In this case the contractor

may execute some activities in wrong way, then the consultant rejects this work.

These conditions together can affect the progress of project.

"Inappropriate overall organization structure linking all parties to the project" (I.I =

68.56 %) was ranked as the third factor to cause delay in this group. This reason of

time overruns is one of the clearest factors that cause delay. There must be an efficient

organizational structure, which the company can allocate individuals at the specific

locations, as well as giving special responsibilities according to the works. In these

conditions the company may achieve the highest possible productivity, but the failure,

will lead to break up of ideas and responsibilities among workers, thus the delay may

take place. The result of Odeh and Battaineh (2002) is coincides with this result, that

inappropriate overall organization structure cause a delay of project. The nature of

organization structure of Gaza Strip is similar to the organization structure in Jordan,.

This agreement reflects the importance of this factor.

Table 4.20 shows that respondents contractors ranked the "inappropriate type of

contract used" (I.I = 64.39 %) as fourth factor that causes delay. This factor is

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considered as one of major factors that causing delay in Gaza Strip. The majority of

contracts in Gaza Strip are similar in type, most institutions depends on bill of

quantity (BOQ) contract, and accordingly the duration of the project is estimated, so

this can be strongly considered as a cause of delay.

Consultants view

Table 4.20 shows that the respondents consultants ranked the "major disputes and

negotiations" (I.I = 88.89 %) as the first factor to cause delay in this category, the

second factor was "mistakes and discrepancies in contract documentation" (I.I= 73.15

%). The third factor ranked by consultant was "inappropriate overall organizational

structure linking – all parties to the project" (I.I = 72.22 %). This result is in full

conformity with the respondents contractors but in the case of consultant, the

proportion of the importance index is higher, which means that consultant are more

technically aware of these elements and assign them greater priority than others. As

shown in table 4.20 the consultants respondents classify the "inappropriate type of

contract used (I.I = 46.30 %) as fourth factor to cause delay in this category. This

result is in full conformity with the results of the respondent's contractors, this

similarity of opinions support the results of the study.

Owners view

Table 4.20 shows that the respondents owners ranked the "major disputes and

negations" (I.I = 72.58 %) as the first factor to cause delay in this category, the

second factor was "mistakes and discrepancies in contract documents" (I.I = 70.97

%). And inappropriate overall organizational structure linking all parties to the project

(I.I = 68.55 %) was the third factor of time overruns according to owner. These results

are identical in terms of order with the contractor and consultant which show the

importance of these factors. As shown in table 4.11 respondents owners ranked

inappropriate type of contract used (I.I = 52.42 %) as the least factor of delay in this

category. This result is in full conformity with the respondents contractors, and

respondents consultants, this similarity of opinions reflect the importance of this

factor.

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Spearman rank correlation coefficient of the "contractual relationship" group

Table 4.21 presents the spearman correlation coefficient for group "contractual

relationship" among contractor, owner and consultant. For this group, the correlation

coefficient between contractor and owner equals to 0.933 with P-value (Sig.) = 0.034.

The P-value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to 0.998 with P-value (Sig.) = 0.001. The P-value is

less than the level of significance, 0.05α = , so there is a significant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.951 with P-value (Sig.) = 0.025. The P-value is less

than the level of significance, 0.05α = , so there is a significant relationship between

owner and consultant.

Table 4.21 : Correlation test of contractual relationship group among contractor, consultant and

owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Contractual

relationship 0.933 0.034* 0.998 0.001* 0.951 0.025*

* Correlation is significant at 0.05 significance level.

4.3.11 Group 11: Government relations factors Contractors view

Table 4.22 shows that respondents contractors ranked "the slow permits by

government agencies" in the first position with importance index (I.I = 72.73 %), and

the second factor ranked by contractor's respondents was bureaucracy in government

agencies (I.I = 70.45 %). "Building regulations" with (I.I = 60.98 %) was ranked as

the third factor to cause delay in this group. This result shows that some laws to give

permission to start work is difficult, as well as regulations of government in issuing

permission, or facilitate transactions contribute to the delay of project. In Gaza Strip,

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these factors don't affect much on delay, except the delay of building permits and

drilling. The apathy of government employees cause this type of delay.

Research result of Ogunlana et al (1996) is contravenes with this result, that slow

access of issuing permits by governmental agencies are one of major factors of delay.

The governmental laws in Thailand are different from laws in Gaza Strip. So this

affects the efficiency of permits issuing process.

Table 4.22 : Government relations factors that influence time overruns

Government relations contractor consultant owner

II Rank II Rank II Rank

Slow permits by Govt. agencies 72.73 1 58.33 2 31.45 3

Bureaucracy in Government agencies 70.45 2 55.56 3 41.94 2

Building regulations 60.98 3 68.52 1 48.39 1

Consultants view

Table 4.22 shows that respondents consultants ranked the "building regulations" (I.I =

68.52 %) as the first factor to cause delay in this category, the second factor to cause

delay was slow permits by government agencies (I.I = 58.33 %), the third important

factor ranked by consultant was bureaucracy in government agencies (I.I = 55.56 %).

The consultant opinion in this group is similar to the opinion of the contractor, that

there are some obstacles by government lead to the delay of project. This agreement

between the consultant and contractor demonstrates the contribution of this group to

the delay.

Owners view

Table 4.22 shows that the respondents owners ranked the building regulations (I.I =

48.39 %) as the first factor to cause delay in this category. The second factor to cause

delay was bureaucracy in government agencies ( I.I = 41.49 %), and "the slow permits

by government agencies" (I.I = 31.45 %) was the third factor for time overruns ranked

by owner. In this group the owner contravenes with the view of contractor and

consultant that these factors cause delay. This contradiction explains that government

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doesn't break the activities of project, but the sluggishness and a lack of commitment

of the contractor lead to the delay at construction projects.

Spearman rank correlation coefficient of the " government relations" group

Table 4.23 presents the spearman correlation coefficient for group "government

relations" among contractor, owner and consultant. For this group, the correlation

coefficient among contractor and owner equals to – 0.889 with P-value (Sig.) = 0.152.

The P-value is greater than the level of significance, 0.05α = , so there is insignificant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to – 0.926 with P-value (Sig.) = 0.124. The P-value

is greater than the level of significance, 0.05α = , so there is insignificant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.649 with P-value (Sig.) = 0.275. The P-value is

greater than the level of significance, 0.05α = , so there is insignificant relationship

between owner and consultant.

Table 4.23: Correlation test of government relations group among contractor, consultant and

owner

* Correlation is significant at 0.05 significance level.

4.3.12 Group 12: External factors Contractors view

Table 4.24 shows that respondents contractors ranked "the strikes, Israeli attacks and

border closures" in the first position with importance index (I.I = 92.80%). This

indicates the high complexability of construction industry in Gaza Strip with unstable

security situation and occupation. In the case of border closures or strikes, the

construction materials run out from markets, the price increase dramatically, and

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Government relations -0.889 0.152 -0.926 0.124 0.649 0.275

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suppliers may monopoly the construction materials. In case of any Israeli attack, the

projects within the attacked area stops automatically; as a result of any attack, work,

equipment or materials could be damaged and hence cause a delay.

The second important factor ranked by respondents contractors was "poor economic

conditions (currency inflation rate--- etc)" (I.I = 79.92 %). The difficult economic

situation in Gaza Strip, and the full reliance on donor to fund projects contribute to

increase the economical incapability of local community. Fluctuation of the local

currency rates and the high rates of inflation also are considered as the major factors

that affect the construction process.

Table 4.24 : External factors that lead to time overruns

External factors contractor consultant owner

II Rank II Rank II Rank

Strikes, Israeli attacks and Borders closures 92.80 1 93.52 1 96.77 1

Poor economic conditions (currency, inflation

rate, etc.) 79.92 2 81.48 2 73.39 2

Problems with neighbors 70.45 3 54.63 5 68.55 3

Poor site conditions (location, ground, etc.) 70.08 4 74.07 3 52.42 5

Changes in laws and regulations 63.64 5 59.26 4 54.84 4

Hot and cold weather (weather conditions) 59.09 6 44.44 6 52.42 5

'The problems with neighbor" (I.I =70.45 %) was ranked as the third important factor

to cause delay in this group. This result reflects the impact of neighbors and adjacent

lands on the project.. The people involved in the project may affect the progress of the

project. The use of project location by others also cause delay, so many times the

activities of project may be stopped in these cases, then the delay to may take place.

Table 4.24 shows that respondents contractors ranked the "weather conditions" (I.I =

59.09 %) as the least factor that cause delay. The Most appropriate interpretation of

this rank is that Gaza Strip has good climatic conditions, so it wouldn't be exposed to

any hurricanes or great leaps in temperature or snowfall. Therefore the weather

condition doesn't affect the execution of construction projects in Gaza Strip.

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Consultants view

Table 4.24 shows that respondents consultants ranked "the strikes, Israeli and border

closures" (I.I = 98.52 %) as the first factor to cause delay in this category, and the

second factor causes delay was poor economic condition (currency, inflation rate, ---

etc). This result is in full conformity with the respondent contractors, but in case of

consultant, the proportion of the importance index is higher, which means that

consultant are more aware of these elements and give them greater priority.

The third factor ranked by consultants was "poor site condition (location, ground,

etc.)" (I.I = 74.07 %). The poor site condition is one of the major factors that cause

delay, but this factor depends on the type of project, whether construction or

infrastructure project or geographical location, so the delay may occur. The

respondent consultant as shown in table 4.13 classified the "weather conditions" (I.I =

44.44 %) as the least factor to cause delay at this category. This result is in full

conformity with the respondent's contractors, this similarity of opinions reflect the

importance of this factor.

Owners view

Table 4.24 shows that the respondents owners ranked "the strikes , Israeli attacks and

border closures" (I.I = 96.77 %) as the first factor to cause delay in this category, the

second factor was poor economic condition (currency, inflation rate, etc) with (I.I =

73.39 %). This result is identical in terms of order with the contractor and consultant

which support the importance of these factors. Problems with neighbors (I.I= 68.55

%) was the third factor for time overruns ranked by owner. This result is in full

conformity with the results of the respondent's contractors, this similarity in opinions

shows the importance of this factor.

As shown in table 4.24 respondents owners ranked "the poor site condition (location,

ground, etc)" and "hot and cold weather (weather conditions)" (I.I = 52.42 %) as the

least factors of delay in this group. This result is in full conformity with the

respondents contractors, and consultants. This similarity in opinions supports the

results of the study, but in the case of poor site conditions, the respondent's consultant

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don't coincide with owner, because the location and the ground conditions of project

certainly affect the progress of project and could cause a delay.

Spearman rank correlation coefficient of the " external factors" group

Table 4.25 presents the spearman correlation coefficient for group "external factors"

among contractor, owner and consultant. For this group, the correlation coefficient

between contractor and owner equals to 0.94 with P-value (Sig.) = 0.003. The P-value

is less than the level of significance, 0.05α = , so there is a significant relationship

between contractor and owner. The correlation coefficient between contractor and

consultant equals to 0.921 with P-value (Sig.) = 0.005. The P-value is less than the

level of significance, 0.05α = , so there is a significant relationship between

contractor and consultant. In addition, the correlation coefficient between owner and

consultant equals to 0.747 with P-value (Sig.) = 0.044. The P-value is less than the

level of significance, 0.05α = , so there is a significant relationship between owner

and consultant. Table 4.25: Correlation test of external factors group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

External factors 0.940 0.003* 0.921 0.005* 0.747 0.044*

* Correlation is significant at 0.05 significance level

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4.3.13 Ranking of all factors influencing time overruns (delay) from point view of contractors, consultants and owners Table 4.26 shows the rank of all factors of time overruns that have been investigated

in this research from contractor, consultant and owner point views. A total of 110

factors which influencing time overruns in Gaza Strip have been categorized into 12

groups. The rank was based on importance index values.

Table 4.26: Factors influencing time overruns from point view of contractors, consultants and

owners

Factors of time overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Strikes, Israeli attacks and border closures 92.80 1 93.52 1 96.77 1

Lack of materials in markets 90.53 2 81.48 11 91.13 2

Shortage of construction materials at site 90.15 3 65.74 41 87.10 3

Delay of material delivery to site 89.77 4 87.96 4 82.26 5

Cash problem during construction 83.08 5 92.59 2 83.06 4

Poor site management 81.06 6 87.96 4 80.65 6

Poor economic conditions (currency,

inflation rate, etc.) 79.92 7 81.48 11 73.39 19

Shortage of equipment at site 76.52 8 69.44 33 78.23 8

Equipments and tool shortage on site 76.52 8 75.93 17 70.97 24

Owner delay in freeing the contractor

financial payment's 76.52 8 38.89 102 33.06 104

Low quality of materials 76.52 8 70.37 31 75.00 14

Delay of materials approval by consultant 76.15 12 51.85 81 66.13 40

No adherence with materials standards that

is storage in the site 76.14 13 85.19 7 78.23 8

Shortage of site workers 76.14 13 63.89 46 75.00 14

Waiting time for approval of tests and Poor

inspection 75.77 15 53.70 74 70.97 24

Contract modifications (replacement and

addition of – new work to the project and

change in specifications)

75.76 16 71.30 29 67.74 36

Poor judgment in estimating time and

resources 75.00 17 53.70 74 66.13 40

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Table 4.26 : Factors influencing time overruns from point view of contractors, consultants and

owners (cont.)

Factors of time overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Price escalation of materials and for manpower 75.00 17 72.22 24 69.35 30

Poor material handling on site 73.86 19 65.74 41 70.16 28

Poor provision of information to project

participants 73.48 20 66.67 38 66.13 40

Skilled labor shortage 73.48 20 58.33 62 76.61 11

Owner – initiated variation 73.46 22 64.81 45 48.39 92

Unethical behaviors used by contractors to

achieve the highest possible level of profit 73.08 23 77.78 14 75.81 12

Slow permits by Govt. agencies 72.73 24 58.33 62 31.45 107

Inappropriate / misuse material 72.73 24 69.44 33 62.90 56

Low productivity of labour 72.35 26 52.78 78 58.87 68

Inappropriate construction methods 72.35 26 72.22 24 74.19 17

Major disputes and negotiations 71.97 28 88.89 3 72.58 21

Inadequate construction planning 71.97 28 75.00 19 65.32 44

Inadequate managerial skills for all parties 71.97 28 65.74 41 70.16 28

Suspension of work by owner or contractor 71.97 28 83.33 10 77.42 10

Low speed of decision making within each

project team 71.97 28 62.04 49 71.77 23

Dependence on a newly – graduated engineer to

bear the whole responsibilities in the site 71.97 28 65.74 41 63.71 50

Back of follow up for the project schedule and

absence of continuous tracking. 71.97 28 72.22 24 59.68 66

Unrealistic contract durations imposed by owner 71.59 35 59.26 59 33.06 104

Incomplete drawings 71.59 35 52.78 78 62.10 58

Mistakes during construction 71.21 37 75.93 17 64.52 47

Slow of inspection and testing procedure used in

project 71.21 37 29.63 108 60.48 62

Lack of experience on the part of the

consultant's site- staff; (managerial and

supervisory personnel)

70.83 39 58.33 62 74.19 17

Slowness in giving instructions 70.83 39 40.74 101 68.55 33

Owner interference 70.83 39 52.78 78 29.03 108

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Table 4.26 : Factors influencing time overruns from point view of contractors, consultants and

owners (cont.)

Factors of time overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Bad preparing and approval of shop drawings 70.83 39 55.56 68 65.32 44

Lack of personnel training and management

support 70.83 39 53.70 74 57.26 71

Lack of contractor's home office follows up 70.83 39 45.37 92 62.10 58

Bureaucracy in Government agencies 70.45 45 55.56 68 41.94 101

Problems with neighbors 70.45 45 54.63 73 68.55 33

Centralization of decision making process from

consultant party 70.45 45 66.67 38 70.97 24

Poor procurement programming of materials 70.45 45 66.67 38 63.71 50

Equipment availability and failure 70.45 45 63.89 46 64.52 47

Delays of payments 70.45 45 38.89 102 55.65 74

Lack of technical and managerial skills of staff 70.08 51 37.96 105 65.32 44

Poor site conditions (location, ground, etc.) 70.08 51 74.07 20 52.42 84

Poor distribution of labor 69.70 53 60.19 55 75.00 14

Lack of subcontractor's skills 69.32 54 73.15 22 67.74 36

Bad past history and reputation of the consultant

(corruption) 69.32 54 29.63 108 50.00 90

Mistakes and discrepancies in contract

documents 68.94 56 73.15 22 70.97 24

Inadequate contractor experience 68.94 56 84.26 8 61.29 61

Poor documentation and no detailed written

procedures 68.56 58 59.26 59 63.71 50

Inappropriate overall organizational structure

linking- all parties to the project 68.56 58 72.22 24 68.55 33

Insufficient number of staffs (contractor) 68.46 60 87.04 6 79.84 7

Poor equipment choice/ infective equipment 68.18 61 60.19 55 54.84 78

Lack of job security for the consultancy team 68.18 61 62.04 49 60.48 62

Inaccurate prediction of equipment production

rate 68.18 61 71.30 29 69.35 30

Rework of bad quality performance 67.80 64 74.07 20 69.35 30

Highly bureaucratic organization 67.80 64 49.07 86 58.87 68

Bad contract management by Consultant 67.42 66 37.04 107 63.71 50

Unrealistic owners initial requirements 67.05 67 59.26 59 20.16 110

lack of maintenance for the equipment 66.92 68 61.11 52 66.13 40

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Table 4.26 : Factors influencing time overruns from point view of contractors, consultants and

owners (cont.)

Factors of time overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Contractor un commitment to consultant

instructions 66.67 69 77.78 14 67.74 36

Unskilled operators 65.91 70 47.22 90 60.48 62

Discrepancies between contract documents 65.53 71 76.85 16 63.71 50

Lack of designer's experience 65.53 71 48.15 88 54.84 78

Unclear specifications 65.53 71 67.59 36 56.45 72

Inflexibility of donor in giving appropriate

periods for project implementation 65.15 74 60.19 55 46.77 97

Little periodical sessions to address work

problems 64.77 75 45.37 92 46.77 97

Lack of unified system for contracts, general

conditions, and specifications of projects 64.77 75 42.59 97 45.83 99

Poor design 64.39 77 42.59 97 52.42 84

Delays in design work / lack of design

information 64.39 77 55.56 68 55.65 74

Inappropriate type of contract used (e.g.

traditional, design- and- build, etc.) 64.39 77 51.85 81 48.33 95

Not using systematic procedures 64.39 77 44.44 94 62.10 58

Project construction complexity 64.02 81 67.59 36 64.52 47

Uncompromising attitude between parties 64.02 81 44.44 94 63.71 50

Changes in laws and regulations 63.64 83 59.26 59 54.84 78

Spend some time to find sub-contractors

company who is appropriate for each task 63.26 84 78.70 13 66.94 39

Donor own policy in implementation

methods and characteristics of the project 63.26 84 61.11 52 50.81 89

Poor communications and misunderstanding 62.69 86 70.37 31 59.68 66

Low harmony between technician team of

contractor and consultant which may lead to

controversy between both of them

62.50 87 72.22 24 62.90 56

Use of unemployment programs in projects 62.50 87 50.93 84 75.81 12

Absence of consultant's site staff 62.50 87 41.67 99 56.45 72

Owner has no priority/ urgency to complete

the project 62.12 90 50.00 85 26.61 109

Slow drawing revision and distribution 61.36 91 53.70 74 49.19 91

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Table 4.26 : Factors influencing time overruns from point view of contractors, consultants and

owners (cont.)

Factors of time overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Previous dispute between contractor and

consultant 61.15 92 18.52 110 54.03 81

Building regulations 60.98 93 68.52 35 48.39 92

Lack of a strong organizational culture 60.61 94 55.56 68 51.61 88

Equipment allocation problems 60.61 94 63.89 46 60.48 62

Failure in testing 60.61 94 84.26 8 73.39 19

Lack of quality assurance / control 60.61 94 38.89 102 55.65 74

Hot and cold weather (weather conditions) 59.09 98 44.44 94 52.42 84

Lack of protection of complete work 59.09 98 56.48 67 53.23 83

Often changing sub-contractors company 58.33 100 60.19 55 72.58 21

Inappropriate type of contract used (e.g.

traditional, design- and- build, etc.) 57.69 101 46.30 91 52.42 84

Too much overtime for labour 57.58 102 37.96 105 47.50 96

Insufficient contractor competition 57.20 103 61.11 52 58.87 68

Slow information flow between project team

members 56.92 104 62.04 49 48.39 92

High quality of work required 56.06 105 41.67 99 55.65 74

Inconsistency between the project and its

environmental due to donor agenda 55.68 106 58.33 62 41.13 102

High quality of work 54.55 107 48.15 88 35.48 103

Poor site safety 53.41 108 55.56 68 45.16 100

Ageing of site workers 53.41 108 51.85 81 54.03 81

Different political and factional affiliation of

workers 35.98 110 57.41 66 32.26 106

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Spearman rank correlation coefficient of the " time overruns" group

Table 4.27 presents the spearman correlation coefficient for all of groups of time

overruns for contractor, owner and consultant. For this group, the correlation

coefficient between contractor and owner equals to 0.595 with P-value (Sig.) = 0.000.

The P-value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to 0.421 with P-value (Sig.) = 0.000. The P-value is

less than the level of significance, 0.05α = , so there is a significant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.55 with P-value (Sig.) = 0.000. The P-value is less

than the level of significance, 0.05α = , so there is a insignificant relationship

between owner and consultant.

Table 4.27: Correlation test of time overruns group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Time overrun 0.595 0.000* 0.421 0.000* 0.550 0.000*

* Correlation is significant at 0.05 significance level.

4.3.14 Comparison among contractor, consultant and owner regarding to the important factors of time overruns From table 4.28 it can be concluded that contractors, owners, and consultants are in

consensus that closure is one of the major primary causes for projects delay in Gaza

Strip. Closure of borders lead to partial or total suspension of all project activities

resulting in delay of those projects. It can be also seen that contractors, owners, and

consultants all consensus about these factors such as strikes, Israeli attacks and

borders closures, cash problem during construction, lack of materials in markets,

delay of materials delivery and poor site management are among the key of factors of

projects delay in Gaza Strip.

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Table 4.28 : The most important factors of time overruns

Factors of time

overruns

Importance Index The Rank

Group I.I

(contractor)

I.I

(consultant)

I.I

(owner)

Rank

(contractor)

Rank

(consultant)

Rank

(owner)

Strikes, Israeli attacks

and border closures 92.80 93.52 96.77 1 1 1 External factors

Cash problem during

construction 83.08 92.59 83.06 5 2 4

Contractor's

responsibilities

Lack of materials in

markets 90.53 81.48 91.13 2 11 2 Materials

Shortage of

construction materials 90.15 65.74 87.10 3 41 3 Materials

Delay of material

delivery to site 89.77 87.96 82.26 4 4 5 Materials

Major disputes and

negotiations 71.97 88.89 72.58 28 3 21

Contractual

relationship

Poor site management 81.06 87.96 80.65 6 4 6 Contractor's

responsibilities

Insufficient number of

staffs (contractor) 68.46 87.04 79.84 60 6 7

Contractor's

responsibilities

No adherence with

materials standards 76.14 85.19 78.23 13 7 8 Materials

Inadequate contractor

experience 68.94 84.26 61.29 56 8 61

Contractor's

responsibilities

Failure in testing 60.61 84.26 73.39 94 8 19 Contractor's

responsibilities

Suspension of work

by owner or 71.97 83.33 77.42 28 10 10 Project

Poor economic

conditions (currency,

inflation rate, etc.)

79.92 81.48 73.39 7 11 19 External factors

Shortage of equipment

at site 76.52 69.44 78.23 8 33 8

Labor and

equipment

Table 4.28 shows some differences in point of view of contractors, owners, and

consultants regarding the importance of some factors affecting the delay. An example

of these differences is that contractors and owners agreed that the "shortage of

materials" is one of delay causing factors, and this is contradicting with consultant's

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viewpoint. Another example is that consultants considered "major dispute" as a root

cause of projects delay while the matter is vice versa for both contractors and owners.

The best interpretation for such differences is that the nature of work for each party is

different. Each party feel that he exerted his almost efforts to avoid project delay.

Each party deals with delay process in order to avoid delay responsibility. Contractors

always consider the shortage of materials and borders closures as the main factors of

projects delay, while consultants usually pertains to managerial and decision making

related factors as the main causes of delay. For owners, they are fluctuated according

to their interest and sometimes highly agreed with contractors and slightly with

consultants, and sometimes vice versa.

4.3.15 Ranking of factors influencing time overruns from point view of all respondents of contractors, consultants and owners.

Table 4.29 shows the rank of all factors of time overruns that have been investigated

in this thesis from all respondents point views. Table 4.29 : Factors influencing time overruns due to the point view of all respondents

(contractors, consultants and owners)

The factors

I.I

Rank

Group

Strikes, Israeli attacks and Border closures 93.95 1 External factors Lack of materials in markets 88.71 2 Material Delay of material delivery to site 87.50 3 Material Cash problem during construction 85.16 4 Contractor's responsibilities Shortage of construction materials at site 84.07 5 Material Poor site management 82.46 6 Contractor's responsibilities No adherence with materials standards that is storage in the site 78.63 7 Material

Poor economic conditions (currency, inflation rate, etc.) 78.63 7 External factors Major disputes and negotiations 75.81 9 Contractual relationship Suspension of work by owner or contractor 75.81 9 Project Insufficient number of staffs (contractor) 75.41 11 Contractor's responsibilities Lack of equipment 75.40 12 Labor and equipment Equipments and tool shortage on site 75.00 13 Contractor's responsibilities Low quality of materials 74.80 14 Material Unethical behaviors used by contractors to achieve the highest possible level of profit 74.80 14 Contractor's responsibilities

Shortage of site workers 73.19 16 Labor and equipment Price escalation of materials and for manpower 72.98 17 Execution Inappropriate construction methods 72.78 18 Execution Contract modifications (replacement and addition of – new work to the project and change in specifications) 72.78 18 Owner's responsibility

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Table 4.29 : Factors influencing time overruns due to the point view of all respondents

(contractors, consultants and owners) (cont.)

The factors

I.I

Rank

Group

Poor material handling on site 71.17 20 Material Inadequate construction planning 70.97 21 Professional Management Skilled labor shortage 70.97 21 Labor and equipment Mistakes during construction 70.56 23 Contractor's responsibilities Inadequate contractor experience 70.36 24 Contractor's responsibilities Mistakes and discrepancies in contract documents 70.36 24 Contractual relationship Poor provision of information to project participants 70.16 26 Professional Management Inadequate managerial skills for all parties 70.16 26 Professional Management Lack of subcontractor's skills 69.76 28 Contractor's responsibilities Centralization of decision making process from consultant party 69.76 28 Consultant's responsibilities

Low speed of decision making within each project team 69.76 28 Professional Management

Waiting time for approval of tests and Poor inspection 69.72 31 Consultant's responsibilities

Inappropriate / misuse material 69.56 32 Material

Rework of bad quality performance 69.56 32 Professional Management Inappropriate overall organizational structure linking- all parties to the project 69.35 34 Contractual relationship

Contractor in commitment to consultant instructions 69.35 34 Contractor's responsibilities

Inaccurate prediction of equipment production rate 69.15 36 Labor and equipment

Failure in testing 68.95 37 Contractor's responsibilities

Poor distribution of labor 68.95 37 Contractor's responsibilities Lack of experience on the part of the consultant's site- staff; (managerial and supervisory personnel) 68.95 37 Contractor's responsibilities

Back of follow up for the project schedule and absence of continuous tracking 68.95 37 Professional Management

Dependence on a newly –graduated engineer to bear the whole responsibilities in the site 68.55 41 Contractor's responsibilities

Delay of materials approval by consultant 68.29 42 Consultant's responsibilities Poor judgment in estimating time and resources 68.15 43 Professional Management Poor procurement programming of materials 67.94 44 Material Spend some time to find sub-contractors company who is appropriate for each task 67.54 45 Contractor's responsibilities

Equipment availability and failure 67.54 45 Labor and equipment Discrepancies between contract documents 67.54 45 Project Problems with neighbors 66.53 48 External factors Poor site conditions (location, ground, etc.) 66.53 48 External factors Bad preparing and approval of shop drawings 66.13 50 Professional Management lack of maintenance for the equipment 65.45 51 Labor and equipment Poor documentation and no detailed written 65.32 52 Design and Documentation Owner – initiated variation 65.24 53 Owner's responsibilities

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Table 4.29 : Factors influencing time overruns due to the point view of all respondents

(contractors, consultants and owners) (cont.)

The factors

I.I

Rank

Group

Incomplete drawings 65.12 54 Design and Documentation Project construction complexity 64.92 55 Execution Lack of job security for the consultancy team 64.92 55 Consultant's responsibilities low productivity of labour 64.72 57 Contractor's responsibilities

Low harmony between technician team of contractor and consultant which may lead to controversy between both of them

64.72 57 Contractor's responsibilities

Slowness in giving instructions 63.71 59 Consultant's responsibilities Lack of personnel training and management 63.71 59 Professional Management Unclear specifications 63.71 59 Design and Documentation Poor communications and misunderstanding 63.62 62 Contractor's responsibilities Use of unemployment programs in projects 63.31 63 Contractor's responsibilities Poor equipment choice/ infective equipment 63.10 64 Execution Lack of contractor's home office follows up 63.10 64 Professional Management Often changing sub-contractors company 62.30 66 Contractor's responsibilities Lack of technical and managerial skills of staff 61.90 67 Consultant's responsibilities Highly bureaucratic organization 61.49 68 Execution Equipment allocation problems 61.29 69 Contractor's responsibilities Changes in laws and regulations 60.48 70 External factors Unskilled operators 60.48 70 Labor and equipment Delays in design work / lack of design 60.28 72 Design and Documentation Bureaucracy in Government agencies 60.08 73 Government relations Bad contract management by Consultant 59.88 74 Consultants responsibility Delays in payment 59.88 74 Consultants responsibility Donor own policy in implementation methods and characteristics of the project 59.68 76 Project

Uncompromising attitude between parties 59.68 76 Contractor's responsibilities Building regulations 59.48 78 Government relations Slow of inspection and testing procedure used in 59.48 78 Professional Management Not using systematic procedures 59.48 78 Design and Documentation Inflexibility of donor in giving appropriate periods for project implementation 59.48 78 Project

Slow permits by Govt. agencies 59.27 82 Government relations Unrealistic contract durations imposed by owner 59.27 82 Owner's responsibilities Lack of designer's experience 59.07 84 Design and Documentation Insufficient contractor competition 58.47 85 Contractor's responsibilities Inappropriate type of contract used 57.46 86 Contractual relationship Owner delay in freeing the contractor financial 57.46 86 Owner's responsibility Lack of a strong organizational culture 57.26 88 Execution Lack of protection of complete work 57.06 89 Contractor's responsibilities Slow drawing revision and distribution 56.65 90 Design and Documentation

Poor design 56.65 90 Design and Documentation

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Table 4.29 : Factors influencing time overruns due to the point view of all respondents

(contractors, consultants and owners) (cont.)

The factors

I.I

Rank

Group

Owner interference 56.45 92 Owner's responsibilities Absence of consultant's site staff 56.45 92 Consultant's responsibilities Little periodical sessions to address work problems 56.05 94 Consultant's responsibilities Slow information flow between project team members 55.89 95 Project Bad past history and reputation of the consultant (corruption) 55.85 96 Consultant's responsibilities

Lack of unified system for contracts, general conditions, and specifications of projects

55.28 97 Owner's responsibilities

Lack of quality assurance / control 54.64 98 Consultant's responsibilities Hot and cold weather (weather conditions) 54.23 99 External factors Inappropriate type of contract used (e.g. traditional, design- and- build, etc.) 54.10 100 Project

Ageing of site workers 53.23 101 Labor and equipment High quality of finishes needed 52.82 102 Project Inconsistency between the project and its environmental due to donor agenda 52.62 103 Project

Poor site safety 51.81 104 Project Unrealistic owners initial requirements 51.41 105 Owner's responsibilities Too much overtime for labour 50.81 106 Execution Owner has no priority/ urgency to complete the project 50.60 107 Owner's responsibility Previous dispute between contractor and consultant 50.00 108 Consultants responsibility High quality of work 48.39 109 Owner's responsibility Different political and factional affiliation of workers 39.72 110 Labor and equipment

Table 4.29 shows that all respondents ranked "strikes, Israeli attacks and borders

closures" in the first position. This result reflect the effect of this factor on time

overruns. The second factor ranked by all respondents was "lack of materials". This

result clarifies the main role of materials to finish the project one time. The results as

shown in table 4.29 illustrate that the three parties (contractors, consultants and

owners) agreed that "the borders closures", "material related factors", "cash problems"

"mismanagement of project" and "the constrains of resources" were the most

important factors that cause projects delay. The most important factors of delay as

shown in table 4.29 was discussed and analyzed in the previous paragraphs at this

chapter.

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4.4 Groups influencing time overruns at construction projects Table 4.30 shows the rank of 12 groups that influencing time overruns (delay) at

construction projects in Gaza Strip, according to the viewpoints of contractors,

consultants and owners. Table 4.30 : Groups influencing time overruns at construction projects

Group

Importance Index

(Contractor)

Importance Index

(Consultant)

Importance Index

(Owner)

I.I Rank I.I Rank I.I Rank

Material 80.02 1 74.07 1 76.31 1

External factors 72.66 2 67.90 4 66.40 3

Professional Management 71.63 3 59.43 8 64.88 5

Owner's responsibilities 68.55 4 52.98 11 37.79 12

Contractual relationship 68.47 5 70.14 2 66.13 4

Consultant's responsibilities 68.28 6 43.30 12 60.36 7

Government relations 68.06 7 60.80 6 40.59 11

Contractor's responsibilities 67.57 8 70.09 3 68.3 2

Execution 66.50 9 59.26 9 60.23 8

Design and Documentation 65.72 10 53.01 10 57.06 9

Labor and equipment 65.24 11 60.49 7 64.07 6

Project 60.59 12 61.21 5 53.07 10

4.4.1 Materials The materials group of delays was ranked very high by all parties (contractors,

consultants and owners). This result is due to the lack of required resources in Gaza

Strip. Most of construction materials are imported from other countries, especially

Israel and Egypt. It is worth mention that the three parties (contractors, consultants

and owner) ranked "the lack of materials in markets", and "shortage of construction

materials at site" among all causes of delay in this survey. Closures of borders is

considered as most important factor causes the shortage and lack of construction

materials, this result reflects the extraordinary political situation in Gaza Strip

4.4.2 External Factors The "external factors" group of delay was ranked high by all parties (contractors,

consultants and owners). This category consist of six factors causing delay, two of

them are "strikes, Israeli attacks and borders closures" and "poor economic conditions

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(currency, inflation rate, etc)". The three parties agreed that border closures is the

major factor of delay. Gaza Strip is an occupied territory that suffers from bad

political situation, successive strikes, and closure of borders which are under Israeli

control. Frequent closures of borders lead to shortage of materials and equipment

which are necessary for construction processes. Also closures lead to escalate the

prices of these materials and eventually result in economic inflation side. Closure of

borders largely contributes to the paralysis of construction related activities and

consequently leads to projects delay. On the other hand, closure of borders makes

traders monopolize materials and equipment needed for construction operations. As a

result of bad political situation, donors may suspended or terminate the working

projects, or even may stop their donation for Gaza Strip projects.

4.4.3 Professional management The "professional management" group of delay factor was ranked high by contractors,

relatively high by owners and low by consultants. In this group, contractor ranked the

"poor judgment in estimating time and resource" as the major factor, consultants in

this group considered the inadequate construction planning as the highest, but owners

ranked low speed of decision making within each project team as the first factor. It

seems that the contractors and owners acknowledged that professional management

plays an important role in the construction process. It's shown that there is serious

weakness in construction management in Gaza Strip and the industry suffers lack of

professionalism. Many reputable engineering companies and construction firms don't

have a human resources department to handle professionals and staff training.

Therefore, many existing engineers and skilled personnel are in a desperate need to

develop their skills.

4.4.4 Owner’s responsibilities The owner responsibilities group of delays was ranked high by contractors, low by

consultant and very low by owners. This is mainly due to owner's financial issues and

owner's interference which are considered very critical to contractor. In this group the

opinion of contractors was close to the opinion of consultants. Specially for the

factors of contract duration imposed by owner and the owner interference. The

consultant contravenes with contractor for the factor of financial payments.

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Contractors always interest of payments to complete the project on time. The

payments also help the contractors to empower the cash. Owner didn't believe that he

contributes the delay, the same thing for contractor and consultant responsibilities.

4.4.5 Contractual relationship Both consultants and owners ranked this group causing delay high, contractors ranked

this group causing delay relatively high. The three parties ranked "major disputes and

negotiations" and "mistakes and discrepancies in contract" as the most important two

factors in this group. The consultant's opinions show that the importance index of

these factors is higher than owners and contractors. Relatively, factors relating to

organization disputes, mistakes and discrepancies in contract were more important to

consultant and owner, especially for public projects in Gaza Strip. The rank of this

group indicates the weakness of the construction companies in understanding the

contract conditions, and also reflects the professionalism of consultant and contractor

in dealing with contractual relationship variables.

4.4.6 Consultant's responsibilities The group of consultant responsibilities related factors received moderate rank by

both contractors and owner, and ranked very low by consultants. As expected, the

consultant considered that the responsibilities of consultant in delay is limited, but the

contractor consider the delay of materials approval by consultant, waiting time for

approval by consultant, waiting time for approval of tests and poor inspection are the

most important factors in this category. This could be attributed to the owners who are

willing to delegate to the consultants enabling them to manage the project effectively.

It should be noted that none of the causes in this category appeared in any of the lists

of ten most important causes.

4.4.7 Government relationship Both contractors and consultants ranked the government relationship group moderate,

the owners ranked this group of delay low. The surveyed owners in this research were

public owners, public owners like government departments or different ministries do

not face regular obstacles to issue work permits or any government process.

Contractors ranked "the slow permits by governmental agencies" as the major cause

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of delay in this group, but the consultants ranked it as the second, owners as the least

important cause, it's clear that obtaining permits is not a part of consultants or owners

responsibilities. In Gaza Strip, contractors face many obstacles with government

specially the routine procedures to issue permits, the changing of governments rules,

un fair dealing with contractors, the weakness of governmental decision making

process and so on. These problems force contractors to be delayed in construction

process.

4.4.8 Contractor's responsibilities The contractor's responsibilities group of delay factors was ranked high by both

owners and consultants and relatively low by contractors. The three parties

(contractor, consultant and owner) agreed that cash problem during construction and

poor site management at the first and second ranking in this group. This indicates that

the cash problem is more critical of any construction project than other variables in

the group of contractor responsibilities. As expected the contractors didn't concentrate

on the contact factors of their work such as "failure in testing", "lack of protection of

complete work" and "insufficient contractor competition", so the contractor's

responsibilities group was ranked low by contractors. Hence it can be concluded that

all parties agree that "cash flow" or, in general, "financial problems" is the major

cause of delay in this group.

4.4.9 Execution Both contractors and consultants ranked the execution group low and this group was

ranked relatively low by owners. Of the seven factors, inappropriate construction

methods" and "price escalation of materials and for manpower" are the major factors

causing delay during the construction process. Price escalation of materials as

mentioned before affects the work. During the execution, specific equipment and

labour skills are required to complete construction activities. Project manager need to

consider the characteristics of the project such as the site layout, skills of personnel,

the possibility of using certain equipment, time variable and the degree of project

complexity. This result shows that the three parties (contractors, consultants and

owners) in Gaza Strip are familiar to the work execution procedures.

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4.4.10 Design and documentation The design and documentation group of delay factors was ranked low by all parties

(contractors, consultants and owners). This result shows that this group hasn't critical

factors causing delay. The three parties' ranked unclear specification, incomplete

drawings and poor documentations major factors in this group, but with low

importance index. Documentation focused on contractor's documentation to record all

activities during the construction project. Historical data regarding to contractors

performance is very important issue in order to locate the weakness in performance,

and hence allows the contractor to avoid these weakness to improve their

performance. The low ranking of this group reflect that the three parties have

sufficient experience in designing projects, and preparing the documentations of

project.

4.4.11 Labour and equipment

Labour and equipment group was ranked medium by consultants and owners, and

ranked low by contractors. The contractors ranked "shortage of equipment", "shortage

of site workers" and "skilled labour shortage" as important factors, relatively the same

rank for owners and consultants. Sometimes the shortage of equipment contributes to

delay of the projects, especially when there are a large number of project executed at

the same periods. Contractors ranked most of variables at this group higher than

owner and consultant, this is probably because contractors have direct contact with

labour and equipment issues.

4.4.12 Project The project group of delay factors was ranked relatively high by consultants, low by

owners and very low by contractors. In this group, the parties (contractors, consultants

and owners) agreed that "suspension of work by owner or contractor" and

"discrepancies between contract documents" are the major factors in this group. This

agreement reflect the common point of view of the three parties, also the agreement

reflect the effects of these factors on projects delay. All variables of this group have

low importance index with respect to other factors in this survey. In Gaza Strip the

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interest of consultant is to develop the skills of each party in order to solve any

problem related to projects delay. Owners and contractors consider that the causes of

delay related to project is rarely to occur, due to that the rank of this group was low.

4.5 Factors influencing cost overruns at construction projects Table 4.30 shows the rank of all factors of cost overruns that have been investigated

in this research from contractor, consultant and owner view points. A total of 42

factors which influencing cost overruns in Gaza Strip have been studied and

discussed. The rank was based on importance index values.

Table 4.31 : Factors influencing cost overruns from point view of contractors, consultants and

owners

Factors of cost overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Increment of materials prices due to continuous

border closures 89.39 1 94.44 2 91.13 1

Delay in construction, supply of raw Materials and

equipment by contractors 83.71 2 95.37 1 83.87 2

Fluctuations in the cost of building materials 81.06 3 87.96 6 80.65 4 Project materials monopoly by some suppliers 80.68 4 75.93 10 81.45 3 Unsettlement of the local currency in relation to

dollar value 78.79 5 88.89 4 77.42 5

Low commitment of donor to compensate any bad

result that may come from the bad economic and 78.79 5 46.30 34 62.10 23

Donor policy in Biding tender to the lowest price one 77.65 7 44.44 36 40.32 40

Design changes 76.92 8 69.44 16 75.81 6

Additional work at owner’s request 76.52 9 66.67 20 72.58 12

Resources constraint: funds and associated auxiliaries

not ready 76.52 9 89.81 3 73.39 10

Lack of cost planning/monitoring during pre-and

post contract stages 75.38 11 82.41 7 74.19 9

Improvements to standard drawings during

construction stage 75.00 12 81.48 8 72.58 12

Inadequate review for drawings and contract

documents. 74.24 13 64.81 22 73.39 10

Contractual claims, such as, extension of time with

cost claims 73.48 14 74.07 14 75.00 7

Inaccurate quantity take-off 72.73 15 75.93 10 75.00 7

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Table 4.31: Factors influencing cost overruns from point view of contractors, consultants and

owners (cont.)

Factors of cost overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Technical incompetence, poor organizational

structure, and failures of the enterprise 71.59 16 75.00 12 62.90 22

Lack of cost reports during construction stage 71.21 17 74.07 14 65.32 17

Inadequate project preparation, planning and

implementation 70.08 18 60.19 24 70.97 14

Delays in issuing information to the contractor

during construction stage 69.70 19 60.19 24 62.10 23

Lack of coordination at design phase 68.94 20 68.52 18 60.48 28

Change in the scope of the project, in

Government policies 68.94 20 60.19 24 59.68 29

Some tendering maneuvers by contractors, such

as front- loading of rates 68.56 22 88.89 4 64.52 21

Incomplete design at the time of tender 67.42 23 57.41 29 57.26 32

Bad allocation of labour inside the site 67.42 23 68.52 18 66.94 16

Delays in decisions making by Government,

failure of specific coordinating 67.42 23 53.70 30 50.81 36

Delays in costing variations and additional

works 67.31 26 65.74 21 65.32 17

Lack of experience of project type 67.05 27 75.00 12 64.52 19

Re measurement of provisional works 66.29 28 52.78 31 67.74 15

Wrong / inappropriate choice of site 65.15 29 41.67 38 47.58 38

Omissions and errors in the bills of quantities 64.77 30 77.78 9 61.29 26

Delay in project's handing over 64.62 31 58.33 28 64.52 19

Absence of managerial programs that help in

saving materials inside the site 64.02 32 69.44 16 59.68 29

Indecision by the supervising team in dealing

with the contractor’s queries resulting in delays 63.64 33 39.81 39 62.10 23

Lack of experience of local regulation 63.64 33 62.96 23 54.84 34

Changes in owner’s brief 62.88 35 44.44 36 52.42 35

Inability of the contractor to be adopted

property with the projects environment 59.23 36 59.26 27 58.06 31

Labour unrest 57.20 37 45.37 35 60.83 27

Attracting skillful technicians for work 56.82 38 48.15 32 48.39 37

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Table 4.31: Factors influencing cost overruns from point view of contractors, consultants and

owners (cont.)

Factors of cost overruns Contractor Consultant Owner

I.I Rank I.I Rank I.I Rank

Lack of experience of technical consultants,

inadequacy of foreign collaboration

agreements, monopoly of technology

56.82 38 26.85 41 55.65 33

Unpredictable weather conditions 54.92 40 48.15 32 44.35 39

Long period of the project maintenance period

"one year " 54.92 40 27.78 40 37.90 41

Over time work hours of supervising engineer

are paid by the contractor 52.27 42 16.67 42 32.26 42

4.5.1 Contractors view Table 4.31 shows that respondents contractors ranked "the increment of materials

prices due to continue borders closures" in the first position with importance index (I.I

= 89.39 %). Materials are considered as the backbone of construction projects, which

accounted for nearly 70 % of the total value of project (Enshassi et al 2003).

Therefore any problem of materials availability would significantly affect the progress

of project. In case of borders closures, construction materials are run out from

markets, leading to elevated prices and monopoly by suppliers, in addition, the

quantity of materials entering Gaza Strip are limited. During any closure the

construction process is suspended, so the project is exposed to cost overruns.

"Delay in construction, supply of raw materials and equipment by contractors" (I.I =

83.71 %) was ranked as the second major factor to cause cost overruns in this group.

Therefore each day of delay cost the contractor additional losses such as overhead,

cost of sub contractors and penalty. The delay of supplying necessary materials and

equipment for the work, lead to time lost, hence the cost increases. In case of delay,

the cost of required materials or equipment may increase, or these goods may run out

from the local markets, then the cost overruns may occur. This result don't coincide

with the Morris (1999), that "the delay in the construction supply of raw materials and

equipment by contractors" is one of major factors of cost overruns. Shortage of

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materials and equipment is not familiar any where worldwide, but Gaza Strip

construction industry suffers from shortage of construction materials and equipment.

The third major factor ranked by respondents contractors was fluctuations in the cost

of building materials (I.I = 81.06 %). Fluctuation in prices has a significant impact on

cost increase. Often the contractor estimates prices of the tender according to the

present prices at local markets. It's known that the tendering phase and awarding is the

an early phase of the project, even the awarding process takes long time., so there is a

chance of price fluctuation. In case of high prices, the contractor would face the

problem of cost overruns at the execution phase. The fluctuation of prices in Gaza

Strip is associated with Israeli economy and the surrounded countries. Gaza Strip

economy is totally engaged with Israeli economy.

The research result of Chimwaso (2001) contravenes with this result, that the

fluctuations in the cost of construction materials is one of major factors to cause cost

over runs. The fluctuation in the cost of construction materials is associated with the

location of project country, the economic level, and the volume of required materials.

The result of this factor differs from country to country.

"Project materials monopoly by some suppliers" (I.I = 80.68 %) was ranked as the

fourth major factor of cost overruns by contractors in this group. Materials monopoly

by suppliers is a result of borders closures or as a result of supplying proxy of

materials to limited suppliers. So the contractor is forced to buy the required materials

or equipments at high prices. In these cases the project will be exposed to cost

overrun.

The fifth cause of cost overruns was "unsettlement of the local currency in relation to

dollar value" (I.I = 78.79 %). Gaza Strip currency is new Israeli shekel (N.I.S).

However most construction projects financing by United states dollar (US $). Any

fluctuation in the exchange rate of dollars and shekels will affect the cost of the

project. Also it's noted that most of the project expenses such as the purchase of

material, rent the equipment, the salaries of employees and other indirect costs are in

N.I.S. These results show that cost overruns will be certainly occurring at any

unsettlement of these currencies.

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"Low commitment of donor to compensate any bad result that may come from the bad

economic and political situation" (I.I = 78.79 %) was also classified as the fifth factor

to cause cost overrun. Mostly, Gaza Strip is exposed to Israeli attacks with different

shapes, therefore the construction projects may be destroyed partially or totally by

these events. This hard political situation affects the cost of projects, especially that

most donors don't recognize contractor's damage, so the contractor is forced to

remedy the changed works from Israeli attacks on his own expense.

Table 4.31 shows that respondents contractors ranked unpredictable weather condition

(I.I = 54.92 %) as one of the least three factors that cause cost overruns. Gaza Strip

has good climatic conditions, so it isn't exposed to any hurricanes or great leaps in

temperature or snow fall, therefore the weather condition doesn't affect the execution

of construction project and doesn't contribute to make any damages of these projects.

The long period of the project maintenance period "one year" (I.I = 54.92 %) was also

ranked as one of the least three factors that cause cost overruns. The period of

maintenance isn't used to be long, then the project isn't exposed to substantial damage

through this short period. So the cost of maintenance is low, this result reflects the

low impact of maintenance period on the cost overruns of the project.

Respondents contractors as shown in table 4.31 classified the "over time work hours

of supervisor engineer are paid by the contractor" (I.I = 52.27 %) as the least factor to

cause cost overruns. This result shows that the contractor benefit from the presence of

supervisor engineer at the overtimes durations. The contractor can complete some

works, which help to complete the project on time, for example; the presence of

supervisor engineer in the overtime duration enables the contractor to cast some of

ready concrete elements. This criterion help the contractor deliver the project on time,

so this factor doesn't contribute to cost overruns.

4.5.2 Consultants view Table 4.31 shows that the respondents consultants ranked "the delay in construction,

supply of raw materials and equipments by contractor" (I.I = 95.37 %) as the first

factor cause cost overruns at this category, and the second important factor was "

increment of materials prices due to continues border closures" (I.I = 94.44 %). This

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result is identical in terms of order with the contractor, which support the importance

of these factors.

"Resource constraints; funds and associated auxiliaries not ready" (I.I = 89.81 %) was

the third factor of cost overruns ranked by consultant. The required resources of

project (materials, equipment, people and others) are considered as backbone for the

construction project. In case of any unavailability of these resources, such as shortage

of cash, the project would be exposed to cost overruns. The contractor who has

sufficient cash doesn’t have any resources constrains, and vice versa. Contractor also

should store the needed resource of project, in order to keep resource reserve due to

closures, lack of resource, prices fluctuation ----etc. So the contractor is forced to

purchase these resource with high prices. This result didn't coincide with the result of

Morris, (1999). The justification of this contradiction is that, the resources constraints

in India are limited. In Indian, the local materials are opened and the economy is

stable.

Respondents consultants consider "some tendering maneuvers by contractors, such as

front – loading of rates" (I.I = 88.89 %) as the fourth factor to cause cost overruns in

this group. The loading of rates by contractors in the pricing of tender is one of the

dangerous problems. Sometimes the owner - according to contract may cancel some

items in the bill of quantities. In this case the contractor loose the profits of these

items with profits of loading rated of the cancelled items. Sometimes the front loading

rate are huge, then the cost overruns would be also huge.

Unsettlement of the local currency in relation to dollar value ( I.I = 88.89 %) was also

ranked as the fourth factor to cause cost overruns at this group, and the sixth one was

fluctuation in the cost of building materials (I.I = 87.96 %). These results are in full

conformity with the respondent contractors but in case of consultant, the proportion of

the importance index is higher, which means that consultant focusing more on these

elements and give them greater priority.

Table 4.31 shows that respondents consultants ranked "the long period of the project

maintenance period "one year" (I.I = 27.78 %) as one of the last three factors that

cause cost overruns. This result is in full conformity with the results of the

respondent's contractors, this similarity in opinions supports the results of the study.

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"The lack of experience of consultants, inadequacy of foreign collaboration

agreements, monopoly of technology" (I.I = 26.85 %) was ranked as one of the last

three factors that cause cost overruns. The most appropriate interpretation of this rank

is that the experience of the consultants in Gaza Strip is entirely appropriate for

projects to be executed, for that reason, this factor is not a cause of cost overruns.

Also the mega projects implemented in Gaza Strip are limited, the donor require that

the local consultant should make join venture with international consultant. Usually

these projects are executed ideally, and in the absence of cost overruns.

Respondents consultants as shown in table 4.31 classified "over time work hours of

supervising engineer paid by contractor" (I.I = 16.67 %) as the least factor to cause

cost overruns. This result is in full conformity with the respondent contractors but in

case of consultant, the proportion of the importance index is higher, which means that

consultant focusing more on these elements and give them greater priority.

4.5.3 Owners view Table 4.31 shows that respondents owners ranked "the increment of materials prices

due to continues borders closures" (I.I = 91.13 %) as the first factor to cause cost

overruns in this category. "The delay in construction, supply of raw materials and

equipment by contractors" (I.I = 83.87 %) was the second factor to cause cost

overruns, the third one was "project materials monopoly by some suppliers" (I.I =

81.45 %), "fluctuations in the cost of building materials" (I.I = 80.65 %) was ranked

as the fourth factor of cost overruns and the fifth factor ranked by owner was

"unsettlement of the local currency in relation to dollar value" (I.I = 77.42 %). This

result is identical in terms of order with the contractor and consultant, which support

the importance of these factors.

"Design changes" (I..I = 75.81 %) was ranked as the sixth factor in this category.

Design changes are considered as one of major factor for increasing the cost of

project. As any modification in the design will affect the budget allocated for the

project, the volume of required materials, type of required materials and needed

labour. Sometimes, design changes cause the rework of already completed items,

which means the increase of project duration and to loose of materials. Thus the cost

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overruns will be present at this case. The research results of Kaming et al (1997) and

Chimwaso (2001) are coincide with this result that design changes is one of the major

factors to cause cost overruns. This agreement reflects the importance of these factors

regardless to geographical location.

Table 4.31 shows that respondents owners ranked the "donor policy in building tender

to the lowest price one" (I.I = 40.32 %) as one of the last three factors. It's not

necessary that the lowest price contractor could bear cost overrun. The contractor try

to estimate a suitable cost for the project's items with suitable profit, so it's not logical

that contractor estimate the prices roughly. Thus the policy of donor in awarding

tender to the lowest price contractor is not a major factor for cost overruns. Also it's

known that most of projects in Gaza Strip are awarded to the lowest price, and not all

are exposed to cost overruns. The least two factors ranked by owner in this category

were "long period of the project maintenance period "one year" (I.I = 37.90 %) and

“over time work hours of supervising engineer are paid by contractor" (I.I = 32.26 %).

These results are in full conformity with the respondent's contractors and consultants,

this similarity in opinions support the results of the study.

Spearman rank correlation coefficient of the "cost overruns" group

Table 4.32 presents the spearman correlation coefficient for group of cost overruns

among contractor, owner and consultant. For this group, the correlation coefficient

between contractor and owner equals to 0.792 with P-value (Sig.) = 0.000. The P-

value is less than the level of significance, 0.05α = , so there is a significant

relationship between contractor and owner. The correlation coefficient between

contractor and consultant equals to 0.737 with P-value (Sig.) = 0.000. The P-value is

less than the level of significance, 0.05α = , so there is a significant relationship

between contractor and consultant. In addition, the correlation coefficient between

owner and consultant equals to 0.819 with P-value (Sig.) = 0.000. The P-value is less

than the level of significance, 0.05α = , so there is a significant relationship between

owner and consultant.

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Table 4.32: Correlation test of cost overruns group among contractor, consultant and owner

Group

Contractor

and owner P-Value

Contractor

and

consultant P-Value

Owner and

consultant P-Value

Correlation

coefficient

Correlation

coefficient

Correlation

coefficient

Cost overruns

0.792 0.000* 0.737 0.000* 0.819 0.000*

* Correlation is significant at 0.05 significance level.

4.5.4 Ranking of factors influencing cost overruns from point view of all respondents of contractors, consultants and owners. Table 4.33 shows the rank of all factors of cost overruns that have been investigated

in this thesis from all respondents point views. Table 4.33 : Factors influencing cost overruns due to the point view of all respondents (contractors, consultants and owners)

The factors II Rank

Increment of materials prices due to continuous border closures 90.93 1

Delay in construction, supply of raw Materials & equipment by contractors 86.29 2

Fluctuations in the cost of building materials 82.46 3

Unsettlement of the local currency in relation to dollar value 80.65 4

Project materials monopoly by some suppliers 79.84 5

Resources constraint: funds and associated auxiliaries not ready 78.63 6

Lack of cost planning/monitoring during pre-and post contract stages 76.61 7

Improvements to standard drawings during construction stage 75.81 8

Design changes 75.00 9

Inaccurate quantity take-off 73.99 10

Contractual claims, such as, extension of time with cost claims 73.98 11

Additional work at owner’s request 73.39 12

Inadequate review for drawings and contract documents 71.98 13

Some tendering maneuvers by contractors, such as front- loading of rates 71.98 13

Lack of cost reports during construction stage 70.36 15

Technical incompetence, poor organizational structure, and failures of the enterprise 70.16 16

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Table 4.33 : Factors influencing cost overruns due to the point view of all respondents

(contractors, consultants and owners) (cont.)

The factors II Rank

Lack of experience of project type 68.15 17 Inadequate project preparation, planning and implementation 68.15 17 Low commitment of donor to compensate any bad result that may come from the bad economic and political situation 67.54 19

Bad allocation of labour inside the site 67.54 19

Omissions and errors in the bills of quantities 66.73 21

Lack of coordination at design phase 66.73 21

Delays in costing variations and additional works 66.46 23

Delays in issuing information to the contractor during construction stage 65.73 24

Change in the scope of the project, in Government policies 64.72 25

Absence of managerial programs that help in saving materials inside the site 64.11 26

Remeasurement of provisional works 63.71 27

Delay in project's handing over 63.21 28

Incomplete design at the time of tender 62.70 29

Lack of experience of local regulation 61.29 30

Donor policy in Biding tender to the lowest price one 61.09 31

Delays in decisions making by Government, failure of specific coordinating 60.28 32

Inability of the contractor to be adopted property with the projects environment 58.94 33

Indecision by the supervising team in dealing with the contractor’s queries resulting in delays 58.06 34

Changes in owner’s brief 56.25 35

Wrong / inappropriate choice of site 55.65 36

Labour unrest 55.49 37

Attracting skillful technicians for work 52.82 38

Unpredictable weather conditions 50.81 39 Lack of experience of technical consultants, inadequacy of foreign collaboration agreements, monopoly of technology 50.00 40

Long period of the project maintenance period "one year" 44.76 41 Over time work hours of supervising engineer are paid by the contractor 39.52 42

Table 4.33 shows the ranking of factors that influencing cost overruns due to the point

views of all respondents. The respondents of contractors, consultants and owners

ranked the "increment of materials prices due to continuous border closures" in the

first position at this table. "delay in construction, supply of raw materials and

equipment by contractors" was ranked as the second important factor of cost overruns.

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The results as shown in table 4.33 illustrate that the three parties (contractors,

consultants and owners) agreed that "the increment of materials prices due to

continuous border closures", "delay in construction", "fluctuations in cost of

materials", "economic related factors", :resources constraint" , "design changes and

mismanagement of project activities" were the most important factors influencing cost

overruns. The discussion and analysis of most important factors of cost overruns was

mentioned in the previous paragraphs at this chapter.

4.6 Degree of agreement among the Owners, Contractors, and Consultants for time and cost overruns groups To determine whether there is a significant degree of agreement among the three

parties (owners , contractors and consultants) Kendall's coefficient of concordance is

used as a measure of agreement among raters. Each case is a judge or rater and each

variable is an item or person being judged. For each variable, the sum of ranks is

computed. Kendall's W, ranges between 0 (no agreement) and 1 (complete

agreement).

To determine whether there is a degree of agreement among the levels of each of the

factors affecting the performance of construction projects for each owners, contractors

and consultants. Kendall's coefficient of concordance shows the degree of agreement

on a zero to one scale is

( )

( )

22

212U 3 m n n 1

Wm n n 1− −

=−

(1)

Where:

( )n 2

i 1U R

== ∑ ∑

n = number of factors; m = number of groups; j = the factors 1,2,…,N.

The calculated Kendall's Coefficients of Concordance for each field are listed in table

4.34.

Null Hypothesis: H0 : There is insignificant degree of agreement among the owners ,

contractors and consultants.

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Alternative Hypothesis: H1 : There is significant degree of agreement among the

owners , contractors and consultants.

Table 4.34 shows the results of Kendall's coefficient of concordance for each group.

As shown in table (4.34), for material group and external factor group, the p-values

(Sig.) are less than α = 0.05 (α is the level of significance) then we reject the null

hypothesis, H0. Therefore, we conclude that there is insufficient evidence to support

the alternative hypothesis, H1. Hence, there is a degree of agreement among the

owners, contractors and consultants.

Table 4.34 :Kendall's Coefficient of Concordance

#

Group W Chi-Square P-value Decision

1 Project 0.174 64.206 1.000 Don't reject H0

2 Contractor's responsibilities 0.379 139.851 0.142 Don't reject H0

3 Consultant's responsibilities 0.189 69.741 1.000 Don't reject H0

4 Owner's responsibilities 0.127 46.863 1.000 Don't reject H0

5 Professional Management 0.303 111.807 0.756 Don't reject H0

6 Design and Documentation 0.179 66.051 1.000 Don't reject H0

7 Material 0.536 197.784 0.000* Reject H0

8 Execution 0.248 91.512 0.985 Don't reject H0

9 Labor and equipment 0.285 105.165 0.876 Don't reject H0

10 Contractual relationship 0.300 110.700 0.779 Don't reject H0

11 Government relations 0.135 49.815 1.000 Don't reject H0

12 External factors 0.419 154.611 0.028* Reject H0

13 Time overrun 0.333 122.877 0.486 Don't reject H0

14 Cost overrun 0.362 133.578 0.243 Don't reject H0

15 ALL together 0.346 127.674 0.368 Don't reject H0

* The agreement is significant at level of significant α = 0.05

For the groups of; project related factors, contractor responsibility, consultant

responsibility, owner responsibility, professional management, design and

documentation, execution, labour and equipment, contractual relationship, and

government relations, the p-values (Sig.) are greater than α = 0.05 (α is the level of

significance) then the null hypothesis is not rejected, H0. Therefore, it is concluded

that there is insufficient evidence to support the alternative hypothesis, H1. Hence,

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there is insignificant degree of agreement among the owners, contractors and

consultants.

On other hand, for the combined groups of time overruns, the group of cost overruns,

and the combined groups of time and cost overruns, the p-values (Sig.) are greater

than α = 0.05 (α is the level of significance) then the null hypothesis is not rejected,

H0. Therefore, it is concluded that there is insufficient evidence to support the

alternative hypothesis, H1. Hence, there is insignificant degree of agreement among

the owners, contractors and consultants.

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CHAPTER FIVE: CASE STUDIES

This chapter presents five case studies collected from actual project implemented in

the Gaza Strip. The data was collected via interviews with the project's contractors,

consultants and owners. Site visits and reviewing project documents are the core of

data for all case studies Summarized data of the collected information was presented

by concentrating on the factors influencing time and cost overruns of these projects.

After presentation of all opinions of contractors, consultants and owner, conclusion

and recommendation has been concluded at the end of this chapter.

5.1 Case study No 1: Construction of AL - Jnena clinic center

5.1.1 Project background This case illustrates one of projects which experienced time and cost overruns in Gaza

Strip. The project faced a lot of obstacles and problems that face every party of the

project with variant degree of responsibility for each party. The project consists of

building two floors, each floor area about 540m2 with complete finishes, the project

includes landscape works about 2000m2. The project implementation activities started

on 18/7/1998 in AL – Jnena area (Rafah) and finished on 20/8/1999. (Table 5.1 shows

the characteristics of project). At the end of the project, there was a number of

meeting and exchanged letters between consultant and contractor to detect the real

cause of delay and how to justify such a delay.

Table 5.1 : The characteristics of construction of AL – Jnena clinic center

Project Name Construction of AL- Jnena clinic center.

Description of Project The building consist of two floor, each floor area about 540.00 m2 with complete finishes, the project includes landscape works about 2000.00 m2

Project Location AL- Jnena – Rafah area.

Target Population In total, the project would serve 5000 people.

District South Gaza Strip.

Allocated Budget ($): 580,000.00 $

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Table 5.1: The characteristics of the project of case study No. 1 (cont.)

Planned Contract Amount ($) 560,000.00 $

Actual Contract Amount ($) 572,500.00 $

Cost overruns ($) 12,500.00$

Planned Project Duration 12 months.

Actual Project Duration 13 months and 2 days

Delay 32 days

Designer Abu – Shahla company

Consultant PECDAR

Owner Ministry of health

In this case, the three project's parties (contractor, consultant and owner) were

interviewed, they evaluate the case through their point of views, and according to

scientific study, recommendations and lessons learned were introduced.

5.1.2 Project History

5.1.2.1 Bidding stage In this project seven contractors have submitted tenders, four of them were classified

as class 1 and the rest were classified as class 2. Complete bidding documents were

provided including general and private condition, technical specification, bill of

quantity and drawings. Bidding process continued for 21 days, passing through all

steps; advertising, bid sell, site visit, per–bid meeting, tender submitting and tender

opening meeting. The tenders were opened and financial offers were announced

through open meeting attending by concerned parties' representative including the

contractors.

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5.1.2.2 Evaluation stage The evaluation process consist of the following steps:

1. Preliminary examination process. The step included checking, by Yes or No,

the legibility, submitting bid security, bid completeness and substantial

responsiveness of the contractor.

2. Prices corrections.

3. Price review (check of summations for BOQ items).

4. Technical advisor follow up the correction of evaluation process and results

according to job creation program guidelines and conditions.

Based on evaluation result, table 5.2 summarizes the final bid prices for contractor. Table 5.2 : The characteristics of the participated companies of project No. 1

S.N Contractor Name Class Preliminary examination

Amount of contract ($)

1 A 1 Pass 560,000.00

2 B 1 Pass 581,145.00

3 C 1 Pass 605,320.00

4 D 1 Pass 573,125.00

5 E 2 Pass 585,952.00

6 F 2 Pass 596,222.00

7 G 2 Pass 611,450.00

5.1.2.3 Awarding stage According to the bid evaluation report prepared by the employer, revised by

consultant, the contract was awarded to the lowest price contractor (contractor as

shown in table 5.2). Owner and consultant considered contractor (A) as the lowest

evaluated responsive bidder.

5.1.3 Assessment

5.1.3.1 Contractor opinion The contractor showed at his reports that project delayed and the cost overruns were

according to the following reasons:

• Continuous changes in specifications and drawing due to incomplete drawings

and the addition of some floors.

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• Owner's delay in freeing the payments of contractor, up to 3 months for each

one. Payments were signed in the donated country, so this contributes to the

delay process.

• Limitation of consultant work from 8.00 AM to 3.00 PM and stopping of work

at 3.00 PM.

• Bad weather especially in winter.

• The holidays through the contract. Periods were about 12 days.

• Fluctuation in the cost of construction materials and this due to instability of

new Israeli shekels (N.I.S) as a currency and due to partial closures of Gaza

Strip borders.

So contractor considered the delays as justified delay.

5.1.3.2 Consultant opinion The consultant staff considered that the most important causes of delay are the

following:

• Owner's delay in freeing the payments of contractor. Payments were signed in

the donated country, so this contributes to the delay process.

• Bad weather especially in winter.

• Lack of materials delivery to the site. Absence of time schedule that is

effective for delivery of materials to the site, and also poor management of the

project.

• Cash problem during construction. This is because contractor was working in

more than one project and he had poor financial to do that.

5.1.3.3 Owner opinion Owner opinion can summarized as following:

• Slow delivery of materials by contractor to the site. Absence of time schedule

that is effective for delivery of materials to the site, and also poor management

of the project.

• Mismanagement of consultant and contractor to complete work on time.

• Some disputes between the consultant and contractor. This is because

contractor was delivered materials that differ from those approved by

consultant which lead to disputes. Consultant also was committed just to

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official working hours without doing extra work. It is very important to

mention that contractor has the right to claim compensation for any loss he

hold due to payment delay more than the agreed period in the contract.

5.1.3.4 Comments

At the end of the project, there were a number of communication letters between the

project's parties to know whether the delay was justified or unjustified and to see if

the owner can be claimed for delay or not. Finally the technical committee of the

project decided that the responsibility of delay was shared between contractors and

owners, and so the delay was justified without any penalties.

5.1.3.5 Researcher opinion

Through showing the reasons of delay and cost overruns from the viewpoints of all

parties (contractor, consultant and owner), we can say that contractors reasons were

not convincing and also vacations and holidays must be taken into consideration. At

the same time, the weak ability of contractor to import the required materials to the

site was the greatest contributor factor for delay, thus it was supposed to impose

penalties for delay on contractor. This type of delay is considered as non excusable

delay.

5.2 Case study No 2: Construction of financial ministry building in Gaza Strip

5.2.1 Project background This case illustrates one of projects which experienced time and cost overruns in Gaza

Strip. The project faced a lot of obstacles and problems that face every party of the

project with variant degree of responsibility for each party. The project consists of

building with 9 stories, each story area was 1000 m2 The project implementation

activities started on 19/9/1999 in Gaza city and finished on 20/5/2003. (Table 5.3

shows the characteristics of project). At the end of the project, there was a number of

meeting and exchanged letters between consultant and contractor to detect the real

cause of delay and how to justify such a delay.

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Table 5.3 : The characteristics of construction of financial ministry building in Gaza Strip

Project Name Construction of financial ministry building in Gaza Strip.

Description of Project The building consist of 9 stories, each story area was 1000m2 , with complete finishes.

Project Location Gaza city.

Target Population Contractors, traders, the employees of Palestinian National Authority.

District Gaza.

Allocated Budget ($): 2,850,000.00 $

Planned Contract Amount ($) 2,800,150.00 $

Actual Contract Amount ($) 2,835,430.00 $

Cost overruns ($) 35,280.00 $

Planned Project Duration 36 months.

Actual Project Duration 44 months and 4 days

Delay 244 days

Designer Saboor and EL-Fara company

Consultant The ministry of public works

Owner Palestinian National Authority (P.N.A)

In this case, the three project's parties (contractor, consultant and owner) were

interviewed, they evaluate the case through their point of views, and according to

scientific study, recommendations and lessons learned were introduced.

5.2.2 Project History

5.2.2.1 Bidding stage In this project six contractors have submitted tenders, all of them were classified as

class 1. Complete bidding documents were provided including general and private

condition, technical specification, bill of quantity and drawings. Bidding process

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continued for 21 days, passing through all steps: advertising, bid sell, site visit, per –

bid meeting, tender submitting and tender opening meeting. The tenders were opened

and financial offers were announced through open meeting attending by concerned

parties' representative including the contractors.

5.2.2.2 Evaluation stage The evaluation process consist of the following steps:

1. Preliminary examination process. The step included checking, by Yes or No,

the legibility, submitting bid security, bid completeness and substantial

responsiveness of the contractor.

2. Prices corrections.

3. Price review (check of summations for BOQ items).

4. Technical advisor follow up the correction of evaluation process and results

according to job creation program guidelines and conditions.

Based on evaluation result, table 5.4 summarizes the final bid prices for contractor.

Table 5.4 : The characteristics of the participated companies of project No. 2

S.N Contractor Name Class Preliminary examination

Amount of contract ($)

1 A 1 Pass 2,800,150.00

2 B 1 Pass 2,920,445.00

3 C 1 Pass 2,830,985.00

4 D 1 Pass 2,860,765.00

5 E 1 Pass 2,864,122.00

6 F 1 Pass 2,910,636.00

7 G 1 Pass 3,020,190.00

8 H 1 Pass 2,900,880.00

9 I 1 Pass 2,891,690.00

5.2.2.3 Awarding stage According to the bid evaluation report prepared by the employer, revised by

consultant, the contract was awarded to the lowest price contractor (contractor as

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shown in table 5.4). Owner and consultant considered contractor (A) as the lowest

evaluated responsive bidder.

5.2.3 Assessment

5.2.3.1 Contractor opinion The contractor showed at his reports that project delayed and the cost overruns were

according to the following reasons:

• Borders closures of Gaza Strip. This is due to the beginning of AL-Aqsa

Intifada.

• Shortage of materials in local markets. This is due to restriction of materials

entry by Israeli party on Gaza Strip people.

• Incomplete and discrepancies in the specifications of project. Since the project

was very wide, there was some contradictions between contract items. The

low experience of consultant also affects this thing.

• Delay of materials approved by consultant. This is due to centralization of

consultant decision and independence on site engineers. Also routine

performance which require manager signature on all items of the contract,

affect this issue.

• Owner delay in freeing the contractor financial payments.

• Increment of materials prices due to closures.

• Additional works at owner's request. This was due to incomplete drawings and

bill of quantities which lead to many changes.

• Unsettlement of local currency in relation to dollar value.

So contractor considered the delays as justified delay.

5.2.3.2 Consultant opinion The consultant staff considered that the most important causes of delay are the

following:

• Israeli attacks, strikes and borders closures.

• Lack of material delivery by contractor to the site.

• Cash problem during construction. This is because of weak financial liquidity

of the contractor. This was also due to the large – size activities in the project,

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as well as due to the affect of AL-Aqsa Intifada on dollar value against shekel.

Also Banks are hesitated about some contractors which put them in a bad

financial situation.

• Failure in testing , then rework to some activities. This was due to contractor

use of inconsistent blocks which were refused then reworked. The same thing

was quite regarding health related materials.

• Contract modification (specification, BOQ and additional works).

• Inadequate construction planning by contractor. Contractor wasn't following

performance reports in the site, and also didn't update the time schedule of the

project to be a ware of delaying and accelerating factors in the project

activities.

• Price escalation of materials.

5.2.3.3 Owner opinion

Owner opinion can summarized as following:

• Inappropriate construction method by contractor

• Delay in freeing payments of contractor.

• Continuous borders closures and strikes.

• Shortage of materials due to borders closures.

• Less quality of works by contractor. This was because contractor used

materials other than those approved by supervision team which leaded to

rework at most times.

• Poor communications between the parties of project. This was because there

wasn't a variable communication network for information exchange between

workers at the site.

5.2.3.4 Comments

After evaluation of delay reasons, consultant and owner decided that contractor delay

was justified and didn't deserve any financial penalties. This was because owner and

consultant was convinced with contractor justification of delay.

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5.2.3.5 Researcher opinion After viewing the reasons of each party, it was clear that project delay was mainly due

to the beginning of AL-Aqsa Intifada, and to a lower degree due to contractor related

factors such as bad management, low financial abilities, and environment. Contractor

to extent contributed in the delay process, so it was supposed to impose financial

penalties on the contractor and to suspend working in the project until the political

situation of Gaza Strip improve. This type of delay is considered as concurrent delay.

5.3 Case study No 3: Extension work of two elementary schools in Khanyonis

5.3.1 Project background This case illustrates one of projects which experienced time and cost overruns in Gaza

Strip. The project faced a lot of obstacles and problems that face every party of the

project with variant degree of responsibility for each party. The project included

construct of 6 classrooms and retaining walls around the schools, also maintenance

for all of two schools. The project implementation activities started on 1/10/2000 in

Khanyonis and finished on 31/5/2001. (Table 5.5 shows the characteristics of project).

At the end of the project, there was a number of meeting and exchanged letters

between consultant and contractor to detect the real cause of delay and how to justify

such a delay. Table 5.5 : The characteristics of extension work of two elementary schools in Khanyonis

Project Name Extension work of two elementary schools in khanyonis

Description of Project Construct of 6 classrooms and retaining walls around the schools, also maintenance for all of two schools.

Project Location Khanyonis

Target Population The project would serve 2000.00 students.

District Khanyonis

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Table 5.5 : The characteristics of the project of case study No. 3 (cont.)

Allocated Budget (EURO): 300,00.00 €

Planned Contract Amount (EURO): 290,00.00 €

Actual Contract Amount (EURO): 301,120.80 €

Cost overruns (EURO) 11,120.80 €

Planned Project Duration 3 months.

Actual Project Duration 8 months

Delay 150 days

Designer Ministry of Education

Consultant PECDAR

Owner Ministry of Education

In this case, the three project's parties (contractor, consultant and owner) were

interviewed, they evaluate the case through their point of views, and according to

scientific study, recommendations and lessons learned were introduced.

5.3.2 Project History

5.3.2.1 Bidding stage In this project seven contractors have submitted tenders; three of them were classified

as class 1 and the rest were classified as class 2. Complete bidding documents were

provided including general and private condition, technical specification, bill of

quantity and drawings. Bidding process continued for 14 days, passing through all

steps : advertising, bid sell, site visit, per – bid meeting, tender submitting and tender

opening meeting. The tenders were opened and financial offers were announced

through open meeting attending by concerned parties' representative including the

contractors.

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5.3.2.2 Evaluation stage The evaluation process consists of the following steps:

1. Preliminary examination process. The step included checking, by Yes or No,

the legibility, submitting bid security, bid completeness and substantial

responsiveness of the contractor.

2. Prices corrections.

3. Price review (check of summations for BOQ items).

4. Technical advisor follow up the correction of evaluation process and results

according to job creation program guidelines and conditions.

Based on evaluation result, table 5.6 summarizes the final bid prices for contractor. Table 5.6 : The characteristics of the participated companies of project No. 3

S.N Contractor Name Class Preliminary examination

Amount of contract (€)

1 A 1 Pass 290,000.00

2 B 1 Pass 298,122.00

3 C 1 Pass 310,845.00

4 D 1 Pass 302,560.00

5 E 2 Pass 315,128.00

6 F 2 Pass 309,745.00

5.3.2.3 Awarding stage According to the bid evaluation report prepared by the employer, revised by

consultant, the contract was awarded to the lowest price contractor (contractor as

shown in table 5.6). Owner and consultant considered contractor (A) as the lowest

evaluated responsive bidder.

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5.3.3 Assessment

5.3.3.1 Contractor opinion The contractor showed at his reports that project delayed and the cost overruns were

according to the following reasons:

• The AL-Aqsa Intifada which have started on 28/9/2000.

• Continuous borders closures through starting the AL-Aqsa Intifada

• Cash problem during construction. This is because of weak financial liquidity

of the contract. This was also due to the large – size activities in the project, as

well as due to the affect of AL-Aqsa Intifada on dollar value against shekel.

Also Banks are hesitated about some contractors which put them in a bad

financial situation.

• Consultant's slowness in giving instructions. This was due to low experience

of the consultant who was newly graduated.

• Owner interference. Mostly the owner asked for some changes in work

characteristics and plans.

• Shortage of materials in markets. This was due to continuously partial closure

imposed on Gaza Strip at that time.

• Unsettlement of local currency in relation to the dollar value.

• Resource constraint such the funds of project. This was due to bad economic

situation as a result of AL-Aqsa Intifada.

So contractor considered the delays as justified delay.

5.3.3.2 Consultant opinion The consultant staff considered that the most important causes of delay are the

following:

• Borders closures and the shortage of materials.

• Poor judgment in estimating time and resources due to low experience of

contractor and absence of follow up the activities continuously.

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• Poor quality of work, and always rework. It was due to failure of soil

compaction and block tests.

• Inaccurate quality take – off. This was due to modification of buildings fronts.

• Improving of standard drawings during construction phase.

5.3.3.3 Owner opinion Owner opinion can summarized as following:

• Strikes and borders closures.

• Price escalation of required materials.

• Shortage of equipment and skilled labour. Contractor was dependant on very

low number, of workers which lead to low productivity of the project. Also

contractor wasn't have enough equipment for the project.

• Discrepancies in contract documents. This was due to lack of revision of

contract items before tendering process by consultant and owner

• Contractor's claims such as extension of time with cost claims. This was

because contractor asked the owner to suspend the activities due to political

situation, but without approval.

• Fluctuation in the cost of construction materials.

5.3.3.4 Comments

After the study of contractor messages related to delay and cost overrun in the project,

the owner and consultant decided that delay was justified and there was no response

to compensate the contractor for his losses. This was done because of considering that

the delay was not only as a result of bad political situation, but also due to in

commitment of contractor toward some requirements.

5.3.3.5 Researcher opinion

From the reasons introduced by each party, we can conclude that contractor wasn't the

main reason of delay but it was due to external factors such as borders closures,

deficiency of materials, and others were the main reasons of delay. Since contractor

asked the suspension of work and there was no response for him, so he deserves a

compensation for the cost overrun that happened. This type of delay is considered as

compensated excusable delay.

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5.4 Case study No 4: Construction of distribution ware stores houses for the ministry of social affairs

5.4.1 Project background This case illustrates one of projects which experienced time and cost overruns in Gaza

Strip. The project faced a lot of obstacles and problems that face every party of the

project with variant degree of responsibility for each party. The project consists of

distribution ware houses, of area 500m and height 6m (one story). Landscape work's

including interlocking tiles and retaining walls around the building. The project

implementation activities started on 1/4/2005 in North Gaza and finished on 7/12/2005.

(Table 5.7 shows the characteristics of project). At the end of the project, there was a

number of meeting and exchanged letters between consultant and contractor to detect

the real cause of delay and how to justify such a delay.

Table 5.7 : The characteristics of construction of distribution ware houses for the ministry of social affairs

Project Name Construction of distribution ware stores houses for the ministry of social affairs.

Description of Project

Construction of distribution ware houses, of area 500m and height 6m (one story). Landscape work's including interlocking tiles and retaining walls around the building.

Project Location North of Gaza.

Target Population Ministry of social affairs.

District North of Gaza.

Allocated Budget ($): 150,000.00 $

Planned Contract Amount ($) 133,125.00 $

Actual Contract Amount ($) 138,237.50 $

Cost overruns ($) 5112.50 $

Planned Project Duration 5 months

Actual Project Duration 7 months and 8 days

Delay 68 days

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Designer Ministry of social affairs

Consultant Ministry of social affairs

Owner Ministry of social affairs

In this case, the three project's parties (contractor, consultant and owner) were

interviewed, they evaluate the case through their point of views, and according to

scientific study, recommendations and lessons learned were introduced.

5.4.2 Project History

5.4.2.1 Bidding stage In this project eight contractors have submitted tenders, twos of them were classified

as class 1and the rest were classified as class 2. Complete bidding documents were

provided including general and private condition, technical specification, bill of

quantity and drawings. Bidding process continued for 14 days, passing through all

steps: advertising, bid sell, site visit, per – bid meeting, tender submitting and tender

opening meeting. The tenders were opened and financial offers were announced

through open meeting attending by concerned parties' representative including the

contractors.

5.4.2.2 Evaluation stage The evaluation process consists of the following steps:

1. Preliminary examination process. The step included checking, by Yes or No,

the legibility, submitting bid security, bid completeness and substantial

responsiveness of the contractor.

2. Prices corrections.

3. Price review (check of summations for BOQ items).

4. Technical advisor follow up the correction of evaluation process and results

according to job creation program guidelines and conditions.

Based on evaluation result, (table 5.8) summarizes the final bid prices for contractor.

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Table 5.8 : The characteristics of the participated companies of project No. 4

S.N Contractor Name Class Preliminary examination

Amount of contract ($)

1 A 2 Pass 133,125.00

2 B 2 Pass 161,855.00

3 C 2 Pass 138,650.00

4 D 1 Pass 150,226.00

5 E 2 Apologize Apologize

6 F 1 Pass 148,548.00

7 G 2 Pass 153,222.00

8 H 2 Pass 145,840.00

5.4.2.3 Awarding stage According to the bid evaluation report prepared by the employer, revised by

consultant, the contract was awarded to the lowest price contractor (contractor as

shown in table). Ministry of social affairs considered contractor (A) as the lowest

evaluated responsive bidder.

5.4.3 Assessment

5.4.3.1 Contractor opinion The contractor showed at his reports that project delayed and the cost overruns were

according to the following reasons:

• Changing of the project location by the owner that was because there was no

accreditation from authority of lands to the project site.

• Shortage of materials at the markets. This is due to continues partial closures

imposed on Gaza Strip.

• Continuous Israeli attacks to the north of Gaza and borders closures.

• Fluctuation in the cost of building materials because the prices of reinforced

steel were raised internationally.

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• Delay of materials approval by consultant due to absence of special technical

committee to approve materials by consultant and instead of that dependence

on site engineer.

• Price escalation of materials and equipment

• Slow permits by governmental agencies. This was due to frequent strikes and

poor management in those institution.

So contractor considered the delays as justified delay.

5.4.3.2 Ministry of social affairs opinion The ministry of social affairs considered that the most important causes of delay are

the following:

• Low quality of materials, and continuous attacks to the Gaza north.

• Borders closures by Israel.

• Financial problems of contractor. This was because contractor had more than

one project, so he was facing some financial liquidity problems.

• Poor planning and mismanagement for all activities at site. Contractor was

depending on only one engineer in the site who manage all the activities of the

project without presence of project manager or supervisor, and this matter

make it difficult for the site engineer.

• Shortage of skilled labour. This was due to paying high wages for those

technician.

• Poor economic condition of Gaza Strip.

• Donor policy bidding tender to the lowest price one. Because contractor hadn't

the good C.V to implement such projects and he had never implementing a

comparable ones.

5.4.3.4 Comments The technical committee of the ministry considered the project delay was justified,

and this was because the location of the project had been changed. This change

stopped the work for 21 days . also, the bad economic situation frequent Israeli

attacks, and closure of entrances leaded to this delay, so the delay can be considered

as justified.

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5.4.3.5 Researcher opinion After the study and evaluation of reasons introduced from contractor and ministry,

then we found that the change in project site and external factors consisted a large part

of delay. Contractor also considered as a main contributor of delay, this is due to

some factors related to contractor such as bad management, poor planning, deficiency

of materials, and financial problems. This type of delay is considered as concurrent

delay.

5.5 Case study No 5: Developing International Roads in Umm Al Naser

5.5.1 Project background This case illustrates one of projects which experienced time and cost overruns in Gaza

strip. The project was facing a lot of obstacles and problems that face every party of

the project with variant degree of responsibility for each party. The project component

was Paving of 4050 Sq. meter interlocking for carriageway, 1200 Sq. meter

interlocking for sidewalks, 900 L.m. curbstone works, including 110 L.m. sewage

pipes in addition to water and electrical works. The project implementation activities

started on 11/09/06 on Umm Al- Naser Village and finished on 18/03/07. (Table 5.9

shows the characteristics of project). At the end of the project, there was a number of

meeting and exchanged letters between Consultant and Contractor to detect the real

cause of delay and how to justify such a delay.

Table 5.9 : The characteristics of the project of case study No. 5

Project Name Developing International Roads in Umm Al Naser

Description of Project

Paving of 4050.00 Sq. meter interlocking for carriageway, 1200.00 Sq. meter interlocking for sidewalks, 900 L.m. curbstone works, including 110.00 L.m. sewage pipes in addition to water and electrical works.

Project Location Umm Al Naser – North Gaza

Target Population In total, the project would serve 4,000 people

District North Gaza

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Table 5.9 : The characteristics of the project of case study No. 5 (cont.)

Allocated Budget (EURO) 90,000.00 €

Planned Contract Amount (EURO)

Original Contract amount : 88,965.00 € Contract amendment amount : 1,035.00 €

lActual Contract Amount (EURO) 97,820.00 €

Cost overruns (EURO) 7820.00 €

Planned Project Duration 3 months

Actual Project Duration 6 months and 7 days

Delay 97 days

Designer Ministry of Umm AL - Naser

Consultant UNDP

Owner Ministry of Umm AL - Naser

In this case, the three project's parties (contractor, consultant and owner) were

interviewed, they evaluate the case through their point of views, and according to

scientific study, recommendations and lessons learned were introduced.

5.5.2 Project History

5.5.2.1 Bidding stage In this project six contractors have submitted tenders, two of them were classified as

class 1 and the rest were classified as class 2. Complete bidding documents were

provided including general and private condition, technical specification, Bill of

quantity and drawings. Bidding process continued for 14 days, passing though all

steps: advertising, bid sell, site visit, pre-bid meeting, tender submitting and tender

opening meeting. The tenders were opened and financial offers were announced

through open meeting attending by concerned parties‘ representative including the

contractors.

5.5.2.2 Evaluation stage The evaluation process consists of the following steps:

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1. Preliminary examination process. This step included checking, by yes or No, the

legibility, submitting bid security, bid completeness and substantial

responsiveness of the contractor.

2. Prices corrections.

3. Price review(check of summations for BOQ items).

4. Technical advisor follow up the correction of evaluation process and results

according to job creation program guidelines and conditions.

Based on evaluation result, (table 5.10) summarizes the final bid prices for contractor. Table 5.10 : The characteristics of the participated companies of project No. 5

S.N Contractor Name Class Preliminary examination

Amount of contract (€)

1 A 2 Pass 88,965.00

2 B 2 Pass 94,307.00

3 C 2 Pass 91,295.00

4 D 2 Pass 95,102.00

5 E 1 Apologize Apologize

6 F 1 Pass 89,490.00

5.5.2.3 Awarding stage According to the Bid Evaluation Report prepared by the employer, revised by UNDP,

the contract was awarded to the lowest price contractor (Contractor A as shown in

table 5.10). UNDP considered this contractor as the lowest evaluated responsive

bidder.

5.5.3 Assessment

5.5.3.1 Contractor opinion The contractor showed at his reports that project delayed and the cost overruns were

according to the following reasons:

• The work is fully stopped at the project for 6 days because of feast holiday,

• The work is fully stopped for 8 days because of Israeli attack on Bet-Hanon,

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• 13 days because of bad weather,

• 2 days because of Al-Adha feast holiday,

• 8 days because of Interlocking tiles shortage.

• 4 days because of bad weather ,

• 17 days because of bad security situation,

• Two day because of Israeli attack on North of Gaza,

• 5 days because of delay on Making approval for base course ,

• 4 days for waiting the tests results of layers for base course,

So contractor considered the delay as justified delay.

The total number of justifying delay is 69 days, while the total number of project delay is 97 days. Other causes such as :

1- Delay in reviewing payment by UNDP staff,

2- Absence of UNDP staff because of security level situation,

3- Obstacles at site " trees and houses" ,

4- Partial closures of Gaza entrances.

5.5.3.2 Consultant opinion The Consultant staff of UNDP considered that the most important causes of delay are

the following:

• Contractor's shortage labor force,

• Contractor's shortage supervision staff,

• Lack of professionalism of contractor staff,

• Israeli attacks on Bet-Hanon,

• No corporation between inhabitants and contractor 'obstacles such as trees at

roads, old houses at roads",

• Less cooperation between municipality and contractor to remove the

obstacles,

• Foundations problem "Most of houses foundations around the roads were

shallow, so contractor was obligated to construct edge beams for theses house

resulting in delay at project,

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• Additional works at project such as increasing the area of interlocking tiles,

these works cause delay to project for 3 days,

• Due to political situation, when Qussam Rockets were launch the Israeli army

replay with missiles, so workers run away from the site.

5.5.3.3 Owner opinion Owner opinion can summarized as following:

• Mismanagement of contractor to manage the work such as absence of staff,

labour, and Contractor him self,

• Fresh Engineer was not able to control all site activities, no other foremen at

site,

• Slow delivery of materials by contractor to site,

• Absence of UNDP staff because of security situation,

• Partial closures of Gaza entrances.

5.5.3.4 Comments Through the discussion of this case study and the inquiry of opinions for the

contractor, consultant and the owner, we can say that it is clear that there is a shared

responsibility for each party without ignorance of the out-of –control causes that can

be taken into consideration by each party such as partial closure of main entrances,

bad political and economic situation, and so on despite of that this case show that the

major responsibility of time and cost overruns can devoted to the contractor due to the

following reasons:-

• Mismanagement for all activities of project and shortage of labor force,

• Shortage of materials and failure of tests which one of most responsibilities of

contractor, so contractor find him self to paid money more than one time,

• Consultant sharing in the responsibility of time and cost overruns specially

when the consultant delay the payments of contractor, Also the absence of

consultant staff affect on the progress of work, consultant should find a

method to put replacement staff at site,

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• Owner is only one who is responsible of obstacles at the site, the owner should

remove any obstacle at the site before and/or during the work, when the owner

was drowsed in removing the trees, houses inside the site, the contractor

progress was weak, and the contractor may paid for machine and labour

without satisfied production because of these obstacles.

• As recommendation each party of project should be cooperative in highly way

to avoid any time and cost overruns at project, because cost overruns reflect

bad result for each party.

5.5.3.5 Researcher opinion From the reasons introduced by each party, we can conclude that contractor wasn't

the main reason of delay but it was due to external factors which mentioned above, so

he is not responsible of delay. This type of delay is considered as non – compensated

excusable delay.

5.6 Summary of case studies Table 5.11 illustrates the information of the five case studies included at this chapter.

Table 5.11: Summary of cases studies information

Cost overruns value

Actual budget

Planned budget

Time overruns

Actual duration

Planned duration

Type of Project Case study

12,500.00 ($) 572,500.00 ($) 560,000.00 ($) 32 days 13 months and 2 days 12 months Construction

project Case study 1

35,280.00 ($) 2,835,450.00($) 2,800,150.00 ($) 244 days 44 months and 4 days 36 months Construction

Project Case study 2

11,120.80 (€) 301,120.80 (€) 290,000.00 (€) 150 days 8 months 3 months Construction Project Case study 3

5112.50 ($) 138,237.50 ($) 133,125.00 ($) 68 days 7 months and 8 days 5 months Construction

Project Case study 4

7820.00 (€) 97,820.00 (€) 90,000.00 (€) 97 days 6 months and 7 days 3 months Infrastructure

Project Case study 5

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CHAPTER SIX: CONCLUSIONS AND

RECOMMENDATIONS

6.1 Introduction This chapter includes the conclusions and recommendations that would help in

solving the problem of delay and cost overruns at construction projects in Gaza Strip.

The first objective of this study was to identify variables influencing construction time

and cost overruns. The second objective was to evaluate their relative importance.

Investigate the collective group perspectives on the relative significance of these

factor from owner, consultant, and contractor point view was the third objective. The

fourth one was to evaluate the degree of agreement /disagreement regarding the

ranking of these factors. The fifth objective was to evaluate the magnitudes of the

time delay, and cost increases. The sixth objective was to conduct several practical

case studies, and the last one was to formulate recommendations to improve

construction performance.

6.2 Conclusions This part of the thesis concludes the main findings as following :

6.2.1 Factors influencing time overruns (delay) This part of thesis included 12 groups of factors that influencing time overruns. The

total number of factors included among the 12 group of time overruns is 110 factors.

6.2.1.1 Project related factors Results indicated that the factor "suspension of work by owner or by contractor" has

been ranked in the first position by contractors, consultants and owners. This result

indicates the high importance of work continuity to complete the project on time. The

suspension of work creates disputes between the parties of project, and then the

sequence of completion will be affected. This agreement of opinions between

contractors, consultants and owners proves the importance of these factors in projects

delay.

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6.2.1.2 Contractor's responsibilities Results have shown that the factor of "cash problem during construction" has been

ranked in the 1st position by the three parties (contractors, consultants and owners).

This result indicates the high importance of cash for the progress of project. Any

shortage of cash for the contractor will cause many problems such as slow progress

and work decline in productivity. Also the contractors will not be able to purchase the

needed equipment for work. More over the problem of cash also expanded to traders

and suppliers, which in turn leads to slow the work, then to occurrence of project's

delay.

6.2.1.3 Consultant's responsibilities Results show that "the delay in materials approval by consultant" factor has been

ranked as the major factor by consultant in this group. This result indicates the high

importance of each party to perform required work, The delay of materials approval

will lead to suspend the work. If the delay of materials approval was intentional or as

a result of staff lacking experience, it will also cause a delay for the project.

Results also have shown that the factor "the centralization of decision making process

from consultant party" has been ranked in 1st position by consultant and owner, with

(I.I= 66.67%) and (I.I = 70.79%) respectively. It shows the importance of consultant

decisions, the speed or slowness of these decisions and the impact of these decisions

on progress of the project.

6.2.1.4 Owner's responsibilities Results have indicated that, "owner delay in freeing the contractor financial

payments" has been ranked in 1st position by contractors at this group. Payments is

considered as the first priority to complete the project on time, as any delay of freeing

contractor payments, it will affect contractor's financial obligations. Results show that

"contract modifications (replacement and addition of –new work to the project and

change in specification) " factor has been ranked in the 1st position by consultants and

owners, with importance index (I.I = 71.3%) and (I.I = 67.74%) respectively. As any

modification in the technical specification, bill of quantities or replace any work with

another one, it would lead to disputes between the contractor's and owner's teams. To

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solve these disputes and develop new agreements, it takes additional time that affects

the project schedule and hence affect the total duration of the project.

6.2.1.5 Professional management The results indicate the "poor judgment in estimating time and resources" has been

ranked in the 1st position by contractors, "Inadequate construction planning" has been

ranked in the 1st position by consultant. The results also show that "low speed of

decision making within each project team" factor has been ranked in the 1st position

by owner. These causes of delay belong the professional management, which prove

the importance of management for each party. In this group the respondents

concentrate on the factors that belong the planning, estimation and decision making

process.

6.2.1.6 Design and documentation Results indicate that the factor "incomplete drawing" has been ranked as the most

important factor of delay at this group by contractors. "Unclear specification" has

been ranked in the 1st position by consultant. Result also shows that "poor

documentation and no detailed written procedure" has been ranked by owners. These

results reflect the importance of design and documentation, and how affect the

progress of work or how to contribute delay of project.

6.2.1.7 Materials related factors Results indicated that the factor "lack of materials in markets" has been ranked as the

most important factor at this group, by contractor and owner. This result indicates the

high importance of materials at the project. In Gaza Strip and according to

extraordinary political and economic situation, there are great difficulties to get

materials, specially because the borders of Gaza Strip is controlled by Israeli

occupation.. Results have shown that, "delay of materials delivery to the site" has

been ranked in the 1st position at this group by consultants. Any delay in the supply

of materials to the site means that there is mismanagement of contractor. The failure

of supplying materials on time mean that contractor will loose the efforts of human

resources and also loose the time of execution, then the delay will occur.

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6.2.1.8 Execution related factors Results show that the "poor escalation of materials and manpower" has been ranked

as the most important factor at this group, by contractor and consultant. The

escalations of materials prices decelerate of project progress, then the delay to be

occur. Result also have been shown that the factor "inappropriate construction

method" has been ranked in the 1st position by consultant and owner at this group.

6.2.1.9 Labour and equipment Results show that the "shortage of equipment at site" has been ranked in the 1st

position at this group, by contractor and owner. This result indicates the high

importance of equipment to finish the project on time, shortage of equipment cause

many problems such as; dependant on labour instead of equipments, lack of required

productivity and the difficulty of execution. The results indicate that " Inaccurate

predication of equipment production rate" has been ranked in the 1st position in this

group by consultant, with (I.I = 71.3 %).

6.2.1.10 Contractual relationship Results indicate that the factor "major disputes and negotiations" has been ranked as

the most important factor at this group by contractor, consultant and owner. Disputes

are one of the important reasons of delay, it generate mistrust among the parties, in

commitment of instructions by contractor, and complex procedure in handing the

completed activities by consultant.

6.2.1.11 Government relationship Results indicated that the factor "slow permits by government agencies" has been

ranked in the 1st position by contractor at this group. Consultant and owner ranked

the building regulation as the most important factor at this group.

6.2.1.12 External factors Results indicated that the factor "strikes, Israeli attacks and borders closures" has been

ranked in the 1st position at this group by contractor, consultant and owner. This result

indicates the high effects of construction industry in Gaza Strip with security situation

and occupation. In the case of border closures or strikes, the construction materials

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run out from markets, the price increase dramatically, suppliers monopoly materials

of construction.

6.2.2 Top ten factors which cause time overruns according to contractors, consultants and owners views The top ten factors that cause time overruns as perceived by contractors are: "strikes,

Israeli attacks and border closures" in the 1st position, " lack of materials in markets"

in the 2nd position, "shortage of construction materials at site" in the 3rd position,

"delay of material delivery to site" in the 4th position, "cash problem during

construction" in the 5th position, "poor site management" in the 6th position, "poor

economic conditions (currency, inflation rate, etc.)" in the 7th position, "shortage of

equipment at site" in the 8th position, "equipments and tool shortage on site" the 9th

position and "owner delay in freeing the contractor financial payments" in the 9th

position.

The top ten factors that cause time overruns as perceived by consultants are: "strikes,

Israeli attacks and border closures" in the 1st position, "cash problem during

construction" in the 2nd position, "major disputes and negotiations" the 3rd position,

"delay of material delivery to site" in the 4th position, "poor site management "in the

4th position, "insufficient number of staffs (contractor)" in the 6th position "no

adherence with materials standards that is storage in the site" in the 7th position,

"inadequate contractor experience" in the 8th position, "failure in testing" in the 8th

position and " suspension of work by owner or contractor" in the 10th position.

The top ten factors that cause time overruns as perceived by owners are: "strikes,

Israeli attacks and border closures" in the 1st position, "lack of materials in markets"

in the 2nd position, "shortage of construction materials at site" in the 3rd position, "cash

problem during construction" in the 4th position, "delay of material delivery to site" in

the 5th position, "poor site management" in the 6th position "insufficient number of

staffs (contractor)" in the 7th position, "shortage of equipment at site" in the 8th

position, "no adherence with materials standards that is storage in the site" in the 8th

position and "suspension of work by owner or contractor" in the 10th position.

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The top ten factors that cause time overruns as perceived by the three parties are:

"strikes, Israeli attacks and border closures" in the 1st position, "lack of materials in

markets" in the 2nd position, "delay of material delivery to site" in the 3rd position,

"cash problem during construction" in the 4th position, "shortage of construction

materials at site" in the 5th position, "poor site management" in the 6th position, "no

adherence with materials standards that is storage in the site" in the 7th position, "poor

economic conditions (currency, inflation rate, etc.)" also in the 7th position, "major

disputes and negotiations" the 9th position and "suspension of work by owner or

contractor" also in the 9th position.

6.2.3 Groups influencing time overruns Results show that "materials related factors" group has been ranked in the 1st position

by contractor, consultant and owner. Results also show that "external factors" group

has been ranked in the 2nd position by contractor. Respondents consultants ranked the

group of contractual relationship as the 2nd position group of time overruns.

"contractors responsibility" group has been ranked in the 2nd position by owners.

6.2.4 Factors influencing cost overruns The top ten factors that cause cost overruns as perceived by contractors are:

"increment of materials prices due to continues border closures" in the 1st position,

"delay in construction, supply of raw materials and equipment by contractors" in the

2nd position, "fluctuations in the cost of building materials" in the 3rd position, "project

materials monopoly by some suppliers" in the 4th position, "unsettlement of the local

currency in relation to dollar value" in the 5th position, "low commitment of donor to

compensate any bad result that may come from the bad economic and political

situation" in the 5th position, "donor policy in biding tender to the lowest price one"

in the 7th position, "design changes" in the 8th position, "additional work at owner’s

request" in the 9th position and "resources constraint: funds and associated auxiliaries

not ready" in the 9th position.

The top ten factors that cause cost overruns as perceived by consultants are: "delay in

construction, supply of raw materials and equipment by contractors" in the 1st

position, "increment of materials prices due to continuous border closures" in the 2nd

position, "resources constraint: funds and associated auxiliaries not ready" in the 3rd

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position, "unsettlement of the local currency in relation to dollar value" in the 4th

position, "some tendering maneuvers by contractors, such as front- loading of rates"

in the 4th position, "fluctuations in the cost of building materials" in the 6th position,

"lack of cost planning/monitoring during pre-and post contract stages" in the 7th

position, "improvements to standard drawings during construction stage" in the 8th

position, "omissions and errors in the bills of quantities" in the 9th position and

"inaccurate quantity take-off" in the 10th position.

The top ten factors that cause cost overruns as perceived by owners are: "increment of

materials prices due to continuous border closures" in the 1st poison, "delay in

construction, supply of raw materials and equipment by contractors " in the 2nd

position, "project materials monopoly by some suppliers" in the 3rd position,

"fluctuations in the cost of building materials" in the 4th position, '' unsettlement of the

local currency in relation to dollar value" in the 5th position, "design changes" in the

6th position, "contractual claims, such as, extension of time with cost claims" in the

7th position, "inaccurate quantity take-off" in the 7th position, "lack of cost

planning/monitoring during pre-and post contract stages" in the 9th position and

"inadequate review for drawings and contract documents" in the 10th position.

The top ten factors that cause time overruns as perceived by the three parties are:

"increment of materials prices due to continues border closures" in the 1st position,

"delay in construction, supply of raw materials and equipment by contractors" in the

2nd position, "fluctuations in the cost of building materials" in the 3rd position,

"unsettlement of the local currency in relation to dollar value" in the 4th position,

"project materials monopoly by some suppliers" in the 5th position, "resources

constraint: funds and associated auxiliaries not ready" in the 6th position, "lack of cost

planning/monitoring during pre-and post contract stages" in the 7th position,

"improvements to standard drawings during construction stage" in the 8th position,

"design changes" in the 9th position and "inaccurate quantity take-off" in the 10th

position.

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6.2.5 Comparison between the results of questionnaire and the results of case studies From the results obtained from questionnaire at this thesis, and compare it with the

results and analysis of previous cases studies, it's found that there are a real similarity

of the important factors that influencing time and cost overruns. Case studies and the

respondents of questionnaire concentrate on some factors of time and cost overruns,

these factors are:

• Strikes, Israeli attacks and borders closures, these closures affect the shortage

and lack of materials and equipments in markets.

• Mismanagement of project from the three parties (contractor, consultant and

owner) which lead to time and cost overruns of project.

• Poor planning of project and poor documentation at the site.

• Disputes between the parties of project and the absence of trust.

• Delay in revision payments by consultant and delay in freeing it by owner.

• Delay in materials and drawings approval by consultant.

• Unsettlement of the local currency in relation to the dollar value.

• Fluctuation in the cost of construction materials.

• Bad weather condition.

The above agreement between the respondents of questionnaire and the results of

cases studies prove the importance of these factors in delay and cost overruns

process.

6.3 Recommendations The following points can be recommended to all parties in order to minimize and

control time and cost overruns in construction projects.

6.3.1 Contractors should give special attention to the following factors

Contractors are recommended to be aware about construction materials, so they are

advised to purchase the construction materials at the beginning of work. It is also

better for them to have time schedule for material delivery process to the site in order

to avoid shortage or lack of materials.

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Contractors are recommended to monitor the quality of activities continuously and to

set the required quality system in the different activities of the project so as to avoid

any mistakes that may lead to rework of activities, and finally time and cost overruns.

Contractors are advised to set up stores for required construction materials, and

especially those are scarce or that are in limited quantity in the markets to avoid time

and cost overruns.

Contractors are recommended to have qualified and quantified technical staff with

appropriate experience of the project in order to be able to follow the different

technical and managerial aspects of the project. The staff will be more effective if it is

consisted of enough numbers of engineers, technicians, and foremen, so the

responsibilities would be shared between all of them.

Contractors are recommended to set up a computerized system to perform

documentation process for all the activities in the site, so they would be able to detect

performance in the work and to follow the time schedule continuously. Contractors

are recommended to have a time schedule that clarifies their needs for equipments in

the site, so it would be ready where needed without delay.

Contractors are recommended to have the ability for controlling most project

activities, used approved materials, and mechanisms of work to avoid the failure of

tests. Contractors are recommended to avoid front loading of items upon each other

during tender pricing. In the case of delete any loaded items of contract; this will lead

to contractor loss.

Contractors are advised to prepare a method of statement and the schedule for the

project that take into consideration both reality and project type. Also it would be

advised to follow such a plan and update. It from time to other and to compare it with

available resources. Contractors are recommended to have enough cash before

beginning in any project to avoid the financial problems. Also it is advised to monitor

financial spending of the project and payments because any problem in financial

aspect will lead to time and cost overruns.

Planning and scheduling: they are continuing processes during construction and match

with the resources and time to develop the work to avoid cost overrun and disputes.

Site management and supervision: administrative and technical staff should be

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assigned as soon as project is awarded to make arrangements to achieve completion

within specified time with the required quality, and estimated cost.

6.3.2 Owners should consider the following factors Owners are recommended to revise the bid documents such as technical

specifications, drawings, bill of quantities and the design of the project in a good way.

This is because any discrepancy in bid documents will lead to disputes between

projects parts and so delay may occur. Pay progress payment to the contractor on time

because it impairs the contractors ability to finance the work.

Owners are recommended to detect the available materials that present with

contractor and to assess his financial ability to implement the project. Also owner is

advised not to depend on the lowest price contractor to execute the project. Owners

are advised to directly interview in case of any disputes between contractor and

consultant to prevent the effect of such problems on the project accomplishment and

the quality used in the project.

Owner should determine the required duration of project and impose realistic duration

to avoid time and cost overruns. Owners are recommended to have technical staff who

is able to manage the different stages of any project and to follow the performance

percentages, and also able to compare the actual performance with the planned one.

Owners are recommended to facilitate the emergence of licenses needed to begin

project work. And also to minimize change orders as possible as he can in order to

avoid any time and cost overruns. Improvements the communication and coordination

between the local construction agencies and the international funding agencies to

solve the materials of financial issues.

6.3.3 Consultants should look to the following points Reviewing and approving design documents, shop drawings, and the payments of

contractor to avoid any delay or cost overruns at the project. Consultants are advised

to hire a qualified technical staff to manage the project in a good way, so he would be

able to overcome any technical or management problems that happen. It is also

advised for consultant to have high qualification to give suitable instruction in a

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suitable time and to be able to answer any question stated by contractor to avoid time

and cost overruns.

Consultants are recommended to avoid centralization of decisions especially those

related to consultant work because this may lead to project delay. This may lead to

marginalization of site engineer and then to the occurrence of many problems inside

the site. Inflexibility: Consultants should be flexible in evaluating contractor works.

Compromising between the cost and high quality should be considered.

6.3.4 Government and the high policies agencies of Gaza Strip Government is recommended to construct new store houses in settlements of Gaza

Strip to store the required construction materials such as; the cement, base course,

aggregates, steel and bitumen. This proposal is a partially solution of borders closures

matters. Palestinian government is advised to find anew way to handle entrances

problem, so it is preferred for Rafah border to be a freely opened entrance to permit

materials flow to Gaza Strip. At this case we can avoid the Israeli manipulation in

construction materials and their entry, and finally this will lead to reduce time and

cost overruns.

Government is advised to state an official law through Palestinian legislative council

to prevent materials monopoly and prices manipulation, so to avoid time and cost

overruns of projects. Government is advised to introduce a pure Palestinian currency

and tie it with dollar value or at least to stabilize shekel value against dollar value as

some countries do in order reduce time and cost overruns.

Government is advised to put a condition on the donor in the memorandum of

understanding that obligate donor to compensate the contractor for any loss that result

from hard political situation. This is very effective for continuity of construction

industry in Gaza Strip, and to avoid time and cost overruns.

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Annex 1: The results of validity test of all categories of questionnaire

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Table 3.4: Correlation coefficient of each factor of project related factors and the total of this category at N=124 project related factors

Spearman Correlation Coefficient

P-Value (Sig.)

Inappropriate type of contract used (e.g. traditional, design- and- build, etc.) 0.565(**) 0.000(**)

High quality of finishes needed 0.499 0.000(**) Slow information flow between project team members

0.657 0.000(**)

Poor site safety 0.697 0.000(**)

Discrepancies between contract documents 0.618 0.000(**)

Suspension of work by owner or contractor 0.387 0.000(**)

Inconsistency between the project and its environmental due to donor agenda

0.665 0.000(**)

Donor own policy in implementation methods and characteristics of the project

0.664 0.000(**)

Inflexibility of donor in giving appropriate periods for project implementation

0.560 0.000(**)

** Correlation is significant at the 0.01 level

Table 3.4 clarifies the correlation coefficient for each factor of the Project-related

factors category and the total of the group. The p- value (sig) are less than 0.01, so

the coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

Table 3.5 : Correlation coefficient of each factor of contractor responsibilities and the total of this category at N=124 Contractor responsibilities factors

Spearman Correlation Coefficient

P-Value (Sig.)

Insufficient number of staffs (contractor) 0.314

0.000(**)

Spend some time to find sub-contractors company who is appropriate for each task

0.569

0.000(**)

Often changing sub-contractors company 0.451 0.000(**)

** Correlation is significant at the 0.01 level

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Table 3.5 : Correlation coefficient of each factor of contractor responsibilities and the total of this category at N=124 (cont.) Contractor responsibilities factors

Spearman Correlation Coefficient

P-Value (Sig.)

low productivity of labour 0.512

0.000(**)

Lack of subcontractor's skills 0.599

0.000(**)

Poor site management

0.568 0.000(**)

Equipments and tool shortage on site 0.444

0.000(**)

Poor distribution of labour 0.558

0.000(**)

Mistakes during construction 0.627

0.000(**)

Inadequate contractor experience 0.685

0.000(**)

Lack of experience on the part of the consultant's site- staff; (managerial and supervisory personnel)

0.473

0.000(**)

Uncompromising attitude between parties 0.372

0.000(**)

Equipment allocation problems 0.685

0.000(**)

Insufficient contractor competition 0.345

0.000(**)

Lack of protection of complete work 0.429

0.000(**)

Failure in testing 0.471

0.000(**)

Poor communications and misunderstanding 0.414

0.000(**)

Cash problem during construction 0.521

0.000(**)

Low harmony between technician team of contractor and consultant which may lead to controversy between both of them

0.537

0.000(**)

Unethical behaviors used by contractors to achieve the highest possible level of profit

0.585

0.000(**)

Contractor uncommitment to consultant instructions. 0.631

0.000(**)

Dependence on a newly –graduated engineer to bear the whole responsibilities in the site

0.269

0.001(**)

Low harmony between technician team of contractor and consultant which may lead to controversy between both of them

0.384

0.000(**)

** Correlation is significant at the 0.01 level

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Table 3.5 clarifies the correlation coefficient for each factor of the contractor

responsibility and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

Table 3.6 : Correlation coefficient of each factor of consultant responsibilities category and the total of this category at N=124

Consultant responsibilities factors

Spearman Correlation Coefficient

P-Value (Sig.)

Absence of consultant's site staff 0.643 0.000(**)

Lack of technical and managerial skills of staff 0.776

0.000(**)

Slowness in giving instruction 0.663

0.000(**)

Bad contract management by Consultant 0.795

0.000(**)

Lack of quality assurance / control 0.649

0.000(**)

Waiting time for approval of tests and Poor inspection

0.735

0.000(**)

Delay of materials approval by consultant 0.727

0.000(**)

Little periodical sessions to address work problems 0.500

0.000(**)

Previous dispute between contractor and consultant 0.794

0.000(**)

Centralization of decision making process from consultant party

0.459

0.000(**)

Bad past history and reputation of the consultant (corruption)

0.714

0.000(**)

Lack of job security for the consultancy team 0.443

0.000(**)

** Correlation is significant at the 0.01 level Table 3.6 clarifies the correlation coefficient for each factor of the consultant

responsibility and the total of the group The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

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Table 3.7: Correlation coefficient of each factor of factor of owner's responsibilities category and the total of this category at N=124 Owner responsibilities factors

Spearman Correlation Coefficient

P-Value (Sig.)

Contract modifications (replacement and addition of – new work to the project and change in specifications)

0.423

0.000(**)

Owner – initiated variation 0.650

0.000(**)

Unrealistic contract durations imposed by owner 0.763

0.000(**)

Owner interference

0.870

0.000(**)

Owner has no priority/ urgency to complete the project

0.775

0.000(**)

Unrealistic owners initial requirements 0.819

0.000(**)

High quality of work required 0.602

0.000(**)

Lack of unified system for contracts, general conditions, and specifications of projects

0.565

0.000(**)

Owner delay in freeing the contractor financial payments

0.819

0.000(**)

** Correlation is significant at the 0.01 level Table 3.7 clarifies the correlation coefficient for each factor of the Owner

responsibility and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

Table 3.8 : Correlation coefficient of each factor of professional management and the total of this category at N=124 Professional management factors

Spearman Correlation Coefficient

P-Value (Sig.)

Poor provision of information to project participants

0.555

0.000(**)

Inadequate managerial skills for all parties

0.723

0.000(**)

** Correlation is significant at the 0.01 level

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Table 3.8: Correlation coefficient of each factor of professional management and the total of this category at N=124 (cont)

Professional management factors

Spearman Correlation Coefficient

P-Value (Sig.)

Low speed of decision making within each project team

0.662 0.000(**)

Inadequate construction planning 0.610

0.000(**)

Bad of Preparation and approval of shop drawings

0.678

0.000(**)

Back of follow up for the project schedule and absence of continuous tracking

0.509

0.000(**)

Lack of personnel training and management support

0.749

0.000(**)

Poor judgment in estimating time and resources

0.678

0.000(**)

Lack of contractor's home office follows up 0.683

0.000(**)

Slow of inspection and testing procedure used in project

0.649

0.000(**)

Rework of bad quality performance 0.361 0.000(**)

** Correlation is significant at the 0.01 level

Table 3.8 clarifies the correlation coefficient for each factor of the Professional

management and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for. Table 3.9 : Correlation coefficient of each factor of design and documentation and the total of this category at N=124 Design and documentation factors

Spearman Correlation Coefficient

P-Value (Sig.)

Unclear specifications 0.591

0.000(**)

Slow drawing revision and distribution 0.745

0.000(**)

Poor design 0.852 0.000(**)

Incomplete drawings 0.864

0.000(**)

** Correlation is significant at the 0.01 level

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Table 3.9 : Correlation coefficient of each factor of design and documentation and the total of this category at N=124 (cont)

Design and documentation factors

Spearman Correlation Coefficient

P-Value (Sig.)

Poor documentation and no detailed written procedures

0.719

0.000(**)

Not using systematic procedures

0.705

0.000(**)

Delays in design work / lack of design information 0.764

0.000(**)

Lack of designer's experience 0.755

0.000(**)

** Correlation is significant at the 0.01 level

Table 3.9 clarifies the correlation coefficient for each factor of the Design and

documentation and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

Table 3.10: Correlation coefficient of each factor of materials category and the total of this category at N=124 Materials related factors

Spearman Correlation Coefficient

P-Value (Sig.)

Delay of material delivery to site 0.654

0.000(**)

Poor material handling on site 0.616 0.000(**)

Inappropriate / misuse material 0.665

0.000(**)

Poor procurement programming of materials

0.631 0.000(**)

Lack of materials in markets 0.466 0.000(**)

Shortage of construction materials at site 0.529

0.000(**)

Low quality of materials 0.575

0.000(**)

No adherence with materials standards that is storage in the site

0.401

0.000(**)

** Correlation is significant at the 0.01 level

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Table 3.10 clarifies the correlation coefficient for each factor of the Material and the

total of the group. The p- value (sig) are less than 0.01, so the coefficients of this

category are significant at α = 0.01, so it can be said that the paragraphs of this

category are consistent and valid to be measured what it was set for.

Table 3.11 : Correlation coefficient of each factor of execution category and the total of this category at N=124 Execution related factors

Spearman Correlation Coefficient

P-Value (Sig.)

Too much overtime for labour

0.632

0.000(**)

Inappropriate construction methods

0.515

0.000(**)

Poor equipment choice/ infective equipment

0.684

0.000(**)

Highly bureaucratic organization

0.510

0.000(**)

Project construction complexity

0.692

0.000(**)

Price escalation of materials and for manpower

0.708

0.000(**)

Lack of a strong organizational culture

0.662

0.000(**)

** Correlation is significant at the 0.01 level

Table 3.11 clarifies the correlation coefficient for each factor of the Execution and the

total of the group. The p- value (sig) are less than 0.01, so the coefficients of this

category are significant at α = 0.01, so it can be said that the paragraphs of this

category are consistent and valid to be measured what it was set for.

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Table 3.12 : Correlation coefficient of each factor of labour and equipment category and the total of this category at N=124 Labour and equipment factors

Spearman Correlation Coefficient

P-Value (Sig.)

Equipment availability and failure

0.701

0.000(**)

Shortage of site workers

0.722

0.000(**)

Inaccurate prediction of equipment production rate

0.642

0.000(**)

Skilled labor shortage

0.683

0.000(**)

Lack of equipment

0.651

0.000(**)

lack of maintenance for the equipment

0.485

0.000(**)

Unskilled operators

0.510

0.000(**)

Ages of labors at site

0.505

0.000(**)

Differences of factionalism and polices aspects of workers

0.306

0.000(**)

** Correlation is significant at the 0.01 level

Table 3.12 clarifies the correlation coefficient for each factor of the Labor and

equipment and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

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Table 3.13: Correlation coefficient of each factor of contractual relationship category and the total of this category at N=124 Contractual relationship factors

Spearman Correlation Coefficient

P-Value (Sig.)

Major disputes and negotiations

0.711

0.000(**)

Inappropriate overall organizational structure linking- all parties to the project

0.781

0.000(**)

Mistakes and discrepancies in contract documents 0.745

0.000(**)

Inappropriate type of contract used

0.756

0.000(**)

** Correlation is significant at the 0.01 level

Table 3.13 clarifies the correlation coefficient for each factor of the contractual

relationships and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

Table 3.14: Correlation coefficient of each factor of governmental relation category and the total

of this category at N=124

Governmental relation factors

Spearman Correlation Coefficient

P-Value (Sig.)

Building regulations 0.755 0.000(**)

Bureaucracy in Government agencies 0.818 0.000(**)

Slow permits by Govt. agencies 0.856 0.000(**)

** Correlation is significant at the 0.01 level

Table 3.14 clarifies the correlation coefficient for each factor of the Government

relations and the total of the group. The p- value (sig) are less than 0.01, so the

coefficients of this category are significant at α = 0.01, so it can be said that the

paragraphs of this category are consistent and valid to be measured what it was set

for.

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Table 3.15: Correlation coefficient of each factor of external factors category and the total of this category at N=124 External factors

Spearman Correlation Coefficient

P-Value (Sig.)

Poor site conditions (location, ground, etc.)

0.638

0.000(**)

Poor economic conditions (currency, inflation rate, etc.) 0.425

0.000(**)

Changes in laws and regulations

0.698

0.00(**)

Problems with neighbors

0.468

0.000(**)

Hot and cold weather (weather conditions)

0.502

0.000(**)

Strikes, Israeli attacks and Border closures

0.346

0.000(**)

** Correlation is significant at the 0.01 level

Table 3.15 clarifies the correlation coefficient for each factor of the External factors and the

total of the group. The p- value (sig) are less than 0.01, so the coefficients of this

category are significant at α = 0.01, so it can be said that the paragraphs of this

category are consistent and valid to be measured what it was set for.

Table 3.16 :Correlation coefficient of each factor of cost overruns category and the total of this category at N=124 Cost overruns

Spearman Correlation Coefficient

P-Value (Sig.)

Design changes 0.255

0.002(**)

Unpredictable weather conditions

0.315

0.000(**)

Fluctuations in the cost of building materials 0.413

0.000(**)

Lack of coordination at design phase 0.524

0.000(**)

**. Correlation is significant at the 0.01 level.

*. Correlation is significant at the 0.05 level.

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Table 3.16 :Correlation coefficient of each factor of cost overruns category and the total of this category at N=124 (cont.) Cost overruns

Spearman Correlation Coefficient

P-Value (Sig.)

Inadequate review for drawings and contract documents. 0.498

0.000(**)

Incomplete design at the time of tender 0.675

0.000(**)

Additional work at owner’s request 0.485

0.000(**)

Changes in owner’s brief 0.761

0.000(**)

Lack of cost planning/monitoring during pre-and post contract stages

0.579

0.000(**)

Remeasurement of provisional works 0.420

0.000(**)

Lack of cost reports during construction stage 0.480

0.000(**)

Delays in issuing information to the contractor during construction stage

0.624

0.000(**)

Contractual claims, such as, extension of time with cost claims

0.392

0.000(**)

Improvements to standard drawings during construction stage

0.459

0.000(**)

Indecision by the supervising team in dealing with the contractor’s queries resulting in delays

0.581

0.000(**)

Omissions and errors in the bills of quantities 0.432

0.000(**)

Delays in costing variations and additional works 0.437

0.000(**)

Some tendering maneuvers by contractors, such as front- loading of rates

0.207

0.011(*)

Inaccurate quantity take-off 0.421

0.000(**)

Lack of experience of project type 0.431

0.000(**)

Lack of experience of local regulation 0.592 0.000(**)

Inadequate project preparation, planning and implementation

0.550

0.000(**)

Delay in construction, supply of raw Materials & equipment by contractors

0.262

0.002(**)

Change in the scope of the project, in Government policies

0.338

0.000(**)

Resources constraint: funds and associated auxiliaries not ready

0.373

0.000(**)

**. Correlation is significant at the 0.01 level.

*. Correlation is significant at the 0.05 level.

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Table 3.16 :Correlation coefficient of each factor of cost overruns category and the total of this category at N=124 (cont.) Cost overruns

Spearman Correlation Coefficient

P-Value (Sig.)

Delays in decisions making by Government, failure of specific coordinating

0.493

0.000(**)

Wrong / inappropriate choice of site 0.527

0.000(**)

Technical incompetence, poor organizational structure, and failures of the enterprise

0.466

0.000(**)

Labour unrest 0.412

0.000(**)

Lack of experience of technical consultants, inadequacy of foreign collaboration agreements, monopoly of technology

0.426

0.000(**)

Absence of managerial programs that help in saving materials inside the site

0.485

0.000(**)

Delay in project's handing over 0.444

0.000(**)

Long period of the project maintenance period "one year" 0.447

0.000(**)

Increment of material prices due to continuous border closures

0.157 0.041(*)

Bad allocation of workers inside the site 0.346

0.000(**)

Over time work hours of supervising Engineer are paid by the contractor

0.403

0.000(**)

Unsettlement of the local currency in relation to dollar value

0.388

0.000(**)

Project materials monopoly by some suppliers 0.441

0.000(**)

Attracting skillful technicians for work 0.393

0.000(**)

Inability of the contractor to be adopted properly with the projects environmental

0.483

0.000(**)

Low communication of donors to compensate any bad result that may come from the economic political situation

0.546

0.000(**)

Donor policy in bidding tender to the lowest price one 0.360 0.000(**)

**. Correlation is significant at the 0.01 level.

*. Correlation is significant at the 0.05 level.

Table 3.16 clarifies the correlation coefficient for each factor of the cost overruns

factors and the total of the group. The p – value (sig) are less than 0.01 and 0.05, so

the coefficients of this category are significant at α = 0.01 and α = 0.05, so it can be

said that the paragraphs of this category are consistent and valid to be measure what it

was set for.

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Annex 2: Questionnaire in English

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QUESTIONNAIRE FOR RESEARCH THESIS

SECTION A: GENERAL ORGANIZATION INFORMATION 1. Name of organization : ---------------------------------------------------------------------------- 2. Major type of work involved: Buildings Roads Water and Sewage Electro mechanics 3. respondents designation: Owner of organization . Project manager Site Engineer Office Engineer 4. Relevant working experience (Years): 1-3 Yrs 3-5 Yrs 5-10 Yrs >10Yrs 5. Location of orgnization: North of Gaza Gaza Middle area South of Gaza 6. Average of projects executed per year ($): Less than 1 million 1-2 million 2-3 million More than 3 million 7. No. of constant employees: Less than 10 10-15 15-20 More than 20 SECTION B: FACTORS INFLUENCING TIME OVERRUNS OF CONSTRUCTION PROJECTS IN GAZA STRIP. Please indicate the significance of each factor by ticking the appropriate boxes. Add any remarks relating to each factor on the last column e.g. as to the reasons, the critical factors or the solutions. E.S. = extremely significant (%100); V.S. = very significant (%75); M.S.= moderately significant (%50); S.S. = slightly significant (%25); N.S. = not significant (0)

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

1. Project – related factors

Inappropriate type of contract used (e.g. traditional, design- and- build, etc.)

High quality of finishes needed

Slow information flow between project team members

Poor site safety

Discrepancies between contract documents

Suspension of work by owner or contractor

Inconsistency between the project and its environmental due to donor agenda

Donor own policy in implementation methods and characteristics of the project

Inflexibility of donor in giving appropriate periods for project implementation

2.Contractor's responsibilities

Insufficient number of staffs (contractor)

Spend some time to find sub-contractors company who is appropriate for each task

Often changing sub-contractors company

Low productivity of labour

Lack of subcontractor's skills

Poor site management

Equipments and tool shortage on site

Poor distribution of labour

Mistakes during construction

Inadequate contractor experience

Lack of experience on the part of the consultant's site- staff; (managerial and supervisory personnel)

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Uncompromising attitude between parties

Equipment allocation problems

Insufficient contractor competition

Lack of protection of complete work Failure in testing Poor communications and misunderstanding

Cash problem during construction

Low harmony between technician team of contractor and consultant which may lead to controversy between both of them

Unethical behaviors used by contractors to achieve the highest possible level of profit

Contractor uncommitment to consultant instructions.

Dependence on a newly –graduated engineer to bear the whole responsibilities in the site

Use of unemployment programs in projects

3.Consultant's responsibilities

Absence of consultant's site staff

Lack of technical and managerial skills of staff

Slowness in giving instruction

Bad contract management by Consultant

Lack of quality assurance / control

Waiting time for approval of tests and Poor inspection

Delays in payment

Delay of materials approval by consultant

Little periodical sessions to address work problems

Previous dispute between contractor and consultant

Centralization of decision making process from consultant party

Bad past history and reputation of the consultant (corruption)

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Lack of job security for the consultancy team

4.Owner's responsibilities

Contract modifications (replacement and addition of – new work to the project and change in specifications)

Owner – initiated variation

Unrealistic contract durations imposed by owner

Owner interference

Owner has no priority/ urgency to complete the project

Unrealistic owners initial requirements

High quality of work required

Lack of unified system for contracts, general conditions, and specifications of projects

Owner delay in freeing the contractor financial payments

5. Professional Management

Poor provision of information to project participants

Inadequate managerial skills for all parties

Low speed of decision making within each project team

Inadequate construction planning

Bad of Preparation and approval of shop drawings

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Hypothesized factors E.S. 100%

V.S. 75%

M.S.50%

S.S. 25%

N.S. 0% Remarks

Back of follow up for the project schedule and absence of continuous tracking

Lack of personnel training and management support

Poor judgment in estimating time and resources

Lack of contractor's home office follows up

Slow of inspection and testing procedure used in project

Rework of bad quality performance

6. Design and Documentation

Unclear specifications

Slow drawing revision and distribution

Poor design

Incomplete drawings

Poor documentation and no detailed written procedures

Not using systematic procedures

Delays in design work / lack of design information

Lack of designer's experience

7. Material

Delay of material delivery to site

Poor material handling on site

Inappropriate / misuse material

Poor procurement programming of materials

Lack of materials in markets

Shortage of construction materials at site

Low quality of materials

No adherence with materials standards that is storage in the site

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

8. Execution

Too much overtime for labour

Inappropriate construction methods

Poor equipment choice/ infective equipment

Highly bureaucratic organization

Project construction complexity

Price escalation of materials and for manpower

Lack of a strong organizational culture

9. Labor and equipment

Equipment availability and failure

Shortage of site workers

Inaccurate prediction of equipment production rate

Skilled labor shortage

Lack of equipment

Lack of maintenance for the equipment

Unskilled operators

Ageing of site workers

Different political and factional affiliation of workers

10. Contractual relationship

Major disputes and negotiations

Inappropriate overall organizational structure linking- all parties to the project

Mistakes and discrepancies in contract documents

Inappropriate type of contract used

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SECTION C: FACTORS INFLUENCING COST OVERRUNS OF CONSTRUCTION PROJECTS IN GAZA STRIP.

Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

11.Government relations

Building regulations

Bureaucracy in Government agencies

Slow permits by Govt. agencies

12. External factors

Poor site conditions (location, ground, etc.)

Poor economic conditions (currency, inflation rate, etc.)

Changes in laws and regulations

Problems with neighbors

Hot and cold weather (weather conditions)

Strikes, Israeli attacks and borders closures

Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Design changes

Unpredictable weather conditions

Fluctuations in the cost of building materials

Lack of coordination at design phase

Inadequate review for drawings and contract documents.

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Incomplete design at the time of tender

Additional work at owner’s request

Changes in owner’s brief

Lack of cost planning/monitoring during pre-and post contract stages

Remeasurement of provisional works

Lack of cost reports during construction stage

Delays in issuing information to the contractor during construction stage

Contractual claims, such as, extension of time with cost claims

Improvements to standard drawings during construction stage

Indecision by the supervising team in dealing with the contractor’s queries resulting in delays

Omissions and errors in the bills of quantities

Delays in costing variations and additional works

Some tendering maneuvers by contractors, such as front- loading of rates

Inaccurate quantity take-off

Lack of experience of project type

Lack of experience of local regulation

Inadequate project preparation, planning and implementation

Delay in construction, supply of raw Materials and equipment by contractors

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Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Change in the scope of the project, in government policies

Resources constraint: funds and associated auxiliaries not ready

Delays in decisions making by Government, failure of specific coordinating

Wrong / inappropriate choice of site

Technical incompetence, poor organizational structure, and failures of the enterprise

Labour unrest

Lack of experience of technical consultants, inadequacy of foreign collaboration agreements, monopoly of technology

Absence of managerial programs that help in saving materials inside the site

Delay in preliminary handing over of project

Long period of the project maintenance period

Increment of material prices due to continuous closures

Bad allocation of workers inside the site

Over time work hours of supervising Engineer are paid by contractor

Unsettlement of the local currency in relation to dollar value

Project materials monopoly by some suppliers

Attracting skillful technicians for work

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THANK YOU !!

Hypothesized factors E.S. 100%

V.S. 75%

M.S. 50%

S.S. 25%

N.S. 0% Remarks

Inability of the contractor to be adopted properly with the project environmental

Low communication of donors to compensate any bad result that may come from the economic political situation

Donor policy in bidding tender to the lowest price one

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Annex 3: Questionnaire in Arabic

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غزة –الجامعة اإلسالمية

عمادة الدراسات العليا

آلية الهندسة قسم الهندسة المدنية

إدارة المشاريع الهندسية

استبيان حول دراسة

ت في قطاع غزةالعوامل التي تؤثر على زيادة المدة الزمنية و تكلفة مشاريع اإلنشاءا

وذلك استكماًال لمتطلبات الحصول على درجة الماجستير في إدارة المشاريع الهندسية

:الباحث

جمعـــة محمـــد النجــــــــار. م :اشراف

عدنان انشاصي: البروفسور 2007أغسطس

The Islamic University – Gaza Higher Education Deanship Faculty of Engineering Civil Engineering Construction Project Management

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بسم اهللا الرحمن الرحيم

بقطاع غزة ،،، شاءاتاإلناألخوة المهندسين في قطاع صناعة

السالم عليكم ورحمة اهللا وبرآاته ،،،

...تحية طيبة وبعد

ة / الموضوع ة وتكلف دة الزمني ادة الم ى زي ؤثر عل استبانة حول دراسة العوامل التي ت .في قطاع غزة اإلنشاءاتمشاريع

رة لتطور يعتبر قطاع غزة وبالرغم من مساحته الجغرافية الصغيرة بؤرة آبيناعة اءاتص ر اإلنش ى أث اع عل ه القط ذي يعيش ر ال اش الكبي بب االنتع ك بس وذل

ة، ة التحتي المشروعات الضخمة التي تنفذ بداخله سواءًا أآانت في مجال البناء أو البنيبقطاع اإلنشاءات مما هيأ ظروفًا قوية لوجود العديد من المؤسسات العاملة في قطاع

م غزة ، ولكن هذا التطور الكبير البد وأن يصحبه العديد من المشاآل ، ولعل من أهدد ة المشاريع في قطاع غزة والتي تتع هذه المشاآل هي حدوث التأخير وزيادة تكلف

ذه العوامل ذا الموضوع لدراسة ه ار ه م اختي ذلك ت اد لحدوثها أسباب آثيرة، ول إليجها إل كلة وتقليص ذه المش ن ه د م ل الح ن أج يات م ول والتوص ب الحل ى أقصى أنس

. الدرجات ي ببًا ف وا س نكم أن تكون ب م ذلك نطل احول ذا إنج ة ه ارآتكم بتعبئ ة بمش ذه الدراس ه

ن تبيان م ذا االس ي ه رد ف ا ي ل م م أن آ ع العل ة م ل موضوعية وحيادي تبيان بك االسرية ولغرض البحث العلمي ة الس ي غاي تكون ف ا وس يتم المحافظة عليه ات س معلوم

.فقط

عاونكم ،،،شاآرًا لكم حسن ت

جمعـــة محمـــد النجــار. م

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:معلومات عامة عن المؤسسة ) : أ(فقرة

-------------------------------------------------------------------------------------- ):اختياري(اسم الشرآة

آهروميكانيك □ مياه ومجاري □ طرق □ مباني □ : نوع األعمال التي تقوم بها الشرآة

مكتب مهندس □ مهندس موقع□ مدير مشاريع □ صاحب الشرآة □ : وظيفة من يقوم بتعبئة االستبيان

سنوات 3-5من □ سنوات 1-3من □ : عدد سنوات الخبرة لمن يقوم بتعبئة االستبيان سنوات 10أآثر من □ سنوات 5-10من □

جنوب القطاع □ المنطقة الوسطى □ غزة □ شمال غزة □ : مكان المؤسسة

مليون 2 إلى 1 من □ مليون 1 أقل من □: )بالدوالر(ها سنويا معدل قيمة المشاريع التي يتم تنفيذ

مليون 3 أآثر من □ مليون 3 إلى 2 من □

20أآثر من □ 20 إلى 15 من □ 15إلى 10 من □10 أقل من □ :عدد العاملين الثابتين بالشرآة

:العوامل التي تؤثر على زيادة المدة الزمنية للمشاريع الهندسية في قطاع غزة ): ب(فقرة

لتعبر عن مدى أهمية آل عامل من العوامل التي تؤثر على زيادة المدة الزمنية وآذلك وضع أي " "وضع إشارة بإمكانك :مالحظات تراها مناسبة

" 0"ال أوافق أبدًا - %" 25"ال أوافق - %" 50"أوافق أحيانًا - %" 75"أوافق - %" 100"وافق بشدة أ -

العامل المؤثر

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العوامل المتعلقة بالمشروع): 1(مجموعة

... "إلخ" تقليدي، تصميم وبناء "عدم مالئمة العقد المستخدم

الجودة العالية التي تحتاج أعمال التشطيب

بطئ تدفق المعلومات بين أفراد فريق المشروع

االفتقار إلى وسائل األمن والسالمة في الموقع

وجود تعارض بين وثائق العطاء

ولحدوث تعليق لألعمال بواسطة المالك أو المقا

انح د الم بب تحدي ة بس ة المحيط روع للبيئ ة المش دم مالئم ع لتنفيذ أنواع معينة من المشاريع

ة فرض المانح لسياسة معينة في مواصفات المشروع وفي آلي وتنفيذ واستالم األعمال

ذ ة مناسبة لتنفي رات زمني انحين في إعطاء فت ة الم عدم مرون المشاريع

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مسئوليات المقاول): 2(مجموعة

الطاقم الفني للمقاول غير آافي وغير مؤهل النجاز المشروع

قضاء وقت طويل في إيجاد مقاولي الباطن بأقل سعر للقيام بنشاطات المشروع

عامل المقاول مع مقاول من الباطن ثابتعدم ت

انخفاض انتاجية العمال بسبب عدم دفع أجور مناسبة

ضعف مهارات مقاولي الباطن

افتقار اإلدارة السليمة للموقع

نقص المعدات واآلليات لتنفيذ المشروع

سوء توزيع العمال في موقع العمل

تنفيذ األعمال بسبب عدم تشييك األعمال من األخطاء أثناء الجهاز الفني للمقاول

عدم مالئمة خبرة المقاول للقيام بأعمال المشروع

-المقاول"عدم حدوث انسجام بين أطراف المشروع الثالثة "االستشاري والمالك

تمسك آل طرف من األطراف الثالثة في المشروع بوجهة نظره

التوزيع الخاطئ لمعدات المشروع

روح التنافس لدى المقاول غير آافية النجاز األعمال

عدم القدرة على حماية األعمال المنجزة

فشل االختبارات الفنية

ضعف االتصاالت وحدوث سوء الفهم

عدم توفر السيولة النقدية لدى المقاول

الفني للمقاول وظيفة االستشاري مما يؤدي عدم فهم الطاقم لكثرة الجدل مع االستشاري

اعتماد المقاول على أساليب غير مقبولة لتحقيق أآبر قدر من الربح

عدم التزام المقاول بتعليمات االستشاري

اعتماد المقاول على مهندس حديث التخرج لكامل –إدارة العاملين –الفنية اإلدارة" المسئوليات في الموقع

استخدام برامج تشغيل البطالة في المشاريع

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مسئوليات االستشاري ):3(مجموعة

رسمي عدم التزام طاقم االستشاري بالدوام ال

ضعف المهارات اإلدارية والفنية للطاقم الفني

التعليمات إعطاءالبطء في

سوء إدارة العقد من طرف االستشاري بالشكل والطريقة الصحيحة

سوء طريقة التحكم في الجودة

قضاء وقت طويل في اعتماد االختبارات وتشييك األعمال تشاريبين المالك واالس

التأخير في اعتماد مستخلصات المقاول

تأخر االستشاري في اعتماد المواد للمقاول

ندرة عقد االجتماعات الدورية لحل مشاآل العمل

وجود خالفات سابقة بين االستشاري والمقاول

مرآزية القرار لدى االستشاري

التهرب –الرشوة –الكسل "اري سوء السيرة الذاتية لالستش "إلخ... من الدوام

عدم وجود األمان الوظيفي لطاقم االستشاري

مسئوليات المالك): 4(مجموعة

"تغييرات في األعمال وتغيير في المواصفات"تعديل العقد

تكليف المقاول بأعمال إضافية من حين آلخر

ة للمشروع من قبل المالك ليست آافيةالمدة الزمنية المقترح

التدخل الغير الزم أو إعطاء "تشويش المالك لسير المشروع "تعليمات شفوية

عجلة المالك في تنفيذ األعمال دون وجود أولويات معينة

المتطلبات الغير عقالنية للمالك في مراحل المشروع األولى

وبة للعملالجودة العالية المطل

عدم وجود نظام موحد للعقود والمواصفات والشروط العامة للمشاريع

تأخر المالك في صرف المستحقات المالية للمقاول

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مسئوليات اإلدارة ): 5(مجموعة

–المقاول " ضعف وصول المعلومات ألطراف المشروع "المالك –االستشاري

–المقاول " المهارات اإلدارية الغير آافية ألطراف المشروع "االستشاري والمالك

بطء اتخاذ القرار بواسطة آل فريق في المشروع

المشروع إلنشاءالتخطيط الغير جيد

يز واالعتماد للمخططات التنفيذية للمشروعسوء التجه

عدم متابعة الجدول الزمني للمشروع مع التحديث المستمر له

ضعف النواحي التدريبية ونقص دعم اإلدارة ألفراد الفريق

التقدير الخاطئ لوقت وموارد آل نشاط في المشروع

الموقع ضعف متابعة المكتب الرئيسي لما يجري في

في االختبارات وتشييك األعمال من إتباعهابطء اآللية التي يتم قبل المهندس المشرف

إعادة األعمال التي ال تتطابق مع شروط الجودة

التصميم والتوثيق): 6(مجموعة

عدم وضوح المواصفات

مراجعة المخططات ببطء مع سوء التوزيع

م المشروعسوء تصمي

الرسومات الغير آاملة

سوء التوثيق وعدم وجود نظام مفصل مكتوب

عدم استخدام الطرق المنظمة والمرتبة في التوثيق

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ال وآذلك في الوصول للمعلوماتالتأخير في تصميم األعم

ضعف خبرة المصمم

المواد ):7(مجموعة

التأخير في توريد المواد للموقع

نقل المواد داخل الموقع بصورة غير سليمة

االستخدام السيئ أو الغير مالئم للمواد

االفتقار إلى جداول سليمة لبرنامج استخدام المواد

ندرة وجود المواد في األسواق

عدم تخزين آميات آافية من المواد في الموقع

انخفاض جودة المواد المتوفرة

عدم االلتزام بالمواصفات للمواد التي يتم تشوينها في الموقع

تنفيذ المشروع ):8(مجموعة

الزيادة الكبيرة للساعات اإلضافية للعمال

ستخدام خطة عمل غير مالئمةا

االختيار الغير موفق للمعدات

استخدام البيروقراطية في تنظيم العمل داخل الموقع

درجة تعقيد المشروع

ارتفاع أسعار المواد والعمال

عدم " ضعف في ثقافة الشرآة بالنسبة للعمل في الموقع "استخدام ثقافة القوة

العمال والمعدات): 9(مجموعة

عطل المعدات عن العمل في الموقع

النقص في عدد عمال الموقع

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التنبؤ الغير دقيق بمعدل انتاجية العمال

ةنقص العمال المهر

نقص المعدات في العمل

ضعف صيانة المعدات

قلة المهارة لدى سائقي ومشغلي المعدات

آبر سن العاملين في الموقع

اختالف االنتماءات السياسية والحزبية للعاملين

العالقات التعاقدية): 10(مجموعة

حدوث الخالفات والنزاعات

مة الهيكل التنظيمي للربط بين أفراد المشروععدم مالئ

األخطاء والتناقضات في وثائق العقد

استخدام أنواع من العقود الغير مالئمة

قوانين الدولة): 11(مجموعة

عدم توفر قوانين البناء

البيروقراطية في المؤسسات الحكومية

مل من المؤسسات صعوبة الحصول على أذونات الع الحكومية

العوامل الخارجية): 12(مجموعة

"الخ...األرض و الموقع " الظروف المحيطة بالموقع

... نسبة التضخم ، العمالت (الظروف االقتصادية الصعبة )الخ

–الفيدك "تغيير القوانين والنظم التي تخص مشاريع االنشاء "الشروط العامة والخاصة

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المشاآل مع الجيران

الظروف الجوية الصعبة

إغالق المعابر وحدوث االجتياحات واإلضرابات

:في قطاع غزة العوامل التي تؤثر على زيادة تكلفة المشاريع الهندسية

لتعبر عن مدى أهمية آل عامل من العوامل التي تؤثر على زيادة تكلفة المشاريع، وآذلك وضع أي " "بإمكانك وضع إشارة

:مالحظات تراها مناسبة

العامل المؤثر

أوافق جدًا

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تغيير التصميم

الظروف الجوية الغير متوقعة

التذبذب في أسعار المواد المستخدمة في المشروع

ضعف التنسيق في مرحلة التصميم

المراجعة الغير دقيقة للمخططات ووثائق العقد

عدم المقدرة على استكمال التصميم في مرحلة التناقص

الكاألعمال اإلضافية بطلب من الم

تغيير المالك لألمور القضائية الخاصة بالعقد مثل تغيير صياغة دعوة العطاء أو أحد الشروط

عدم التخطيط الجيد لتكاليف المشروع وعدم متابعة التكاليف خالل تنفيذ المشروع

تنفيذ األعمال االحتياطية

مالسوء التجهيز لتقارير التكلفة أثناء تنفيذ األع

التأخر في إبالغ المقاول بمعلومات المشروع أوًال بأول أثناء التنفيذ

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المطالبات التعاقدية مثل تمديد الوقت مع المطالبة بالتكاليف المالية

المخططات األساسية أثناء عملية التنفيذ تعديل

حيرة طاقم اإلشراف في التعامل مع أسئلة المقاول الناتجة عن التأخير

األخطاء في جدول الكميات

التأخير في حساب تكلفة األعمال اإلضافية والتغييرات

مناورات بعض المقاولين في تحميل األسعار على بعض البنود

عدم الدقة عند حساب آميات المشروع

ضعف خبرة المقاول لنوع المشروع

ضعف خبرة المقاول في القوانين المحلية الخاصة بمشاريع االنشاء مثل العقود والشروط العامة

اإلعداد الغير مالئم للمشروع في التخطيط والتنفيذ

تأخير المواد الخام والمعدات التأخير في انجاز العمل بسبب

تغيير هدف المشروع بسبب سياسات الحكومة مثل نقل المشروع لمكان آخر

الميزانية المالية، عدم وجود احتياطي "عوائق الموارد مثل "الموارد للمقاول

التأخير في عمليات اتخاذ القرار بسب فشل الحكومة في تحديد نقاط المشروع

االختيار الغير مالئم لموقع المشروع

عدم التأهيل الفني للشرآة مع فقر الهيكل التنظيمي وفشل المغامرة

مثل الطرد من العمل أو توقف (قلق العمال من أي أخطار )المشروع

ضعف خبرة االستشاري وقلة وجود اتفاقيات التعاون مع المؤسسات األجنبية

للمحافظة على المواد في الموقع إداريةجود برامج عدم و

.تأخير االستالم االبتدائي للمشروع

"سنة في العادة" طول فترة الصيانة للمشروع

ارتفاع أسعار المواد بسبب اإلغالقات المتواصلة للمعابر

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.سوء توزيع العمال داخل الموقع

دفع المقاول ثمن الساعات اإلضافية للمهندس المشرف

مقابل الدوالر" الشيقل"تغيير أسعار العمالت المحلية

.احتكار التجار لمواد المشاريع

.استقطاب فنيين مهرة في العمل

" دم مقدرة المقاول للتكيف مع بيئة المشروع المحيطة ع ...األمان –بعد المكان - السكان

عدم التزام المانح بدفع أي تعويضات تنتج عن أي تدهور لألوضاع السياسية أو االقتصادية

سياسة المانح في ترسية العطاء على أقل األسعار

،،،وشكرًا لحسن تعاونكم