ABSTRACT

Delay is one of the biggest problems often experienced on construction project sites. Delays can instigates negative effects such as increased costs, loss of productivity and revenue many lawsuits between owners and contractors and contract termination.   The aim of this project is to investigate the causes and effects of delay on building construction project delivery time. Random sampling technique was used in this study. Population sample of 150 was used in this work. A total sample of ninety three (93) was deployed. A structured questionnaire in Likert scale was used in data collection.  There are many factors that induce delay on construction projects, however in some of identified  factors includes: lack of funds to finance the project to completion, changes in drawings, lack of effective communication among the parties involved , lack  of adequate information from consultants, slow decision making and contractor’s insolvency, variations among others. Also, project management problem, mistake and discrepancies in contract document, equipment availability and failure, mistakes during construction, bad weather, fluctuation in prices of building materials, inappropriate overall organizational structure linking to the project and labour. The factors above could be observed and could be a clue to preventing delay on construction sites.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Ever since the dawn of civilization, man has indulged in some form of construction activity. In most countries, construction activity constitutes 6-9% of the gross domestic product (GDP) and more than half of the fixed capital formation as infrastructure and public utilities required for economic development (Chitkara, 2009). Like most developing countries such as Saudi Arabia, Libya and Malaysia, a major criticism faced by the Nigerian construction industry is the growing rate of delay in project delivery (Assaf, Alkhalil and Al-Hazmi, 1995; Saleh, 2009 and Yong, 1988). Majority of the construction projects in Nigeria experience delays which in turn lead to disputes, arbitration, litigation and sometimes the total abandonment of the project.

Construction industry in Nigeria is faced with a lot of problems, among which is delay in project execution. It has been researched, that delay is a major setback in the construction industry in Nigeria. The problem of delays in the construction industry is a global phenomenon. In Nigeria, it was observed that the performance of the construction industry in terms of time was poor.  Odeyinka and Yusif (1997) have shown that seven out of ten projects surveyed in Nigeria suffered delays in their execution. Chan and Kumaraswamy [1997] studied delays in Hong Kong construction industry. They emphasized that timely delivery of projects within budget and to the level of quality standard specified by the client is an index of successful project delivery. Failure to achieve targeted time, budgeted cost and specified quality result in various unexpected negative effects on the projects Normally, when the projects are delayed, they are either extended or accelerated and therefore, incur additional cost. The normal practices usually allow a percentage of the project cost as a contingency allowance in the contract price and this allowance is usually based on judgment. Although the contract parties agreed upon the extra time and cost associated with delay, in many cases there were problems between the owner and contractor as to whether the contractor was entitled to claim the extra cost. Such situations, usually involved questioning the facts, causal factors and contract interpretation. Therefore, delays in construction projects give rise to dissatisfaction to all the parties involved and the main role of the project manager is to make sure that the projects are completed within the budgeted time and cost. 

In construction, the term “delay” refers to something happening at a later time than planned, expected and specified in a contract or beyond the date agreed upon for the delivery of a project (Pickavance, 2005). Research has shown that timely delivery of projects within budget and to the level of quality standard specified by the client is an index of successful project delivery (Chan and Kumaraswamy, 1994). The investigation of Odeyinka and Yusuf (1997) shows that seven out of ten projects surveyed in housing projects in Nigeria suffered delay in their execution. The motivating factor for this study is the need for awareness on the causes and the effects of these delays on construction projects in Akure, South-West Nigeria. The study area represents an area of rapid construction development observed in the number of on-going projects in the city. The question of how the problem of delays can be solved are considered and addressed in this study.

1.2 Statement of Problem

Many construction projects will be faced various types of problems and make the project delay and this is one of the main problems. Usually, there is additional cost if a project are delayed, they are either extended or accelerated. The common practices normally allow a percentage of the project cost as a profit or an allowance in the contract price and this profit is usually based on judgment. The risk of the delay in the project creates different by parties involved. For the client or owner, delay means that when intend to use the asset, it's cannot be used, leading alternative accommodation costs to be certified or a delay in receiving income from the asset. Financing cost of the project could also increase, and depending upon the contractual allocation of risk causing the delay, the delay could increase the claims by the contractor. Towards the contractor, delay means an increase in overheads, such as site staff and facilities, ability liabilities to the supply chain and relying on the reason for the delay it can mean a liability for delay damages to the owner. The delayed recovery of payments and the bind up of resources in the project can also create cash flow problems and the risk of insolvency.

1.3 Objective of Study

This research was aimed to identifying the major causes of delays and effects of delays in construction projects industry.

 To achieve this aim, the following objectives have been identified:

 i. To identify the major factors that contributes to the delay in construction project.

 ii. To identify the effect of delays in construction project.

1.4 Research Question

i. What is the major factor that contributes to the delay in construction project

ii. What is the effect of delays in construction project

 1.5 Scope of Study

 The scope of the research is mainly focus on literature review and a questionnaire survey. This study is needed to evaluate the level of understanding and applying these delay concepts in planning, design and field operation. The questionnaire survey would be designed based on the causes of construction delays and effects of construction delays. The respondents for this research involve consultants and construction company that registered with Nigeria Stock Exchange (NSE).

1.6 Significance of Study

 Basically, this study is expected to identify the answer or result for some of the irregular issues that exist in construction industry such as issues that related delay in construction project. Normally, the purpose why these issues arise in the event of delay is due the parties who are unclear and not alert to the causes of delay.

Thus, by identifying the causes of delay in construction project, this study of result will be the guideline to the certainly parties involve . , so that it will avoid any source that will happen in their project and carrying out the works within the time, budget and quality as in the contract. In addition to that, it can be as a basic guidance for those who are involved in construction industry for instance, developers, architects, engineers, quantity surveyors and others in relation to the issue of delay. Finally, hopefully it assists in avoiding unnecessary disputes while assuring project success and better relationship among the contractual parties.

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