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Delays and the consequences and time management. Luise Lorenz Christina Mohr. DELAYS. Completion of a project in time and within budget is a common goal of contractor and client Delays failure of budget disputes ( time = money )
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Delays and the consequences and time management Luise Lorenz Christina Mohr
DELAYS Completion of a project in time and within budget is a common goal of contractor and client • Delays failure of budget disputes (time = money) • Delayed completion of work compared to the planned/contract schedule (= loss of time) • It’s possible to make up time by working faster or rearranging the work sequence • Contractor related delays are the most significant ones
GENERAL REASONS FOR DELAYS • Delays can be caused by one or more of the following agencies: • Client and his team-mates • Contractor and his team-mates • Nature (i.e. earthquakes) • Due to a third party (i.e. strike)
SOME REASONS FOR DELAYS • faults in documents, designs or decisions • insufficient number of equipment • inaccurate cost or time estimation • poor site management and supervision • shortage of construction materials • incompetent project team • contractor’s/client’s financial difficulties • etc.
TYPES OF DELAY The following types of delay help to determine the impact of a delay on the project. • critical or non-critical • excusable or non-excusable • concurrent or non-concurrent • compensable or non-compensable
1. CRITICAL or NON-CRITICAL Critical delays: • the delay interferes with the total time frame Non-critical delays: • the delay does not interfere with the total time frame
2. EXCUSABLE or NON-EXCUSABLE Excusable delays • delay caused by the client, e.g. the owner denies access to the site • delay caused by strike, fire, unusual weather etc. Non-excusable delays: • delay caused by the sub-/contractor, e.g. not enough manpower on site to complete the job in time
3. CONCURRENT Concurrent delays: • two or more delay events occur at the same time or overlap to some degree • at least one of the delays has to be caused by the contractor and one by the client Non-concurrent delays: • delays do not overlap
4. COMPENSABLE • the client’s failure to coordinate several prime contractors • the client’s failure to provide adequate access to the project • change orders placed by the client • any interference by the client • delays caused by a third party under the control of the client
CONSEQUENCES The claim depends on the cause of the delay, which must be identified. Therefore the responsibility is being clarified. Possible Claims: • Time extensions (for the contractor) • Financial compensations (for client and contractor)
FOLLOW-UP For the client: • Delay in use of project • Capital is blocked • Escalation in subsequent investment For the contractor: • Delay in getting profit • Idle of resources (machines, workers etc.) • Productivity loss due to uncontracted work period
MINIMIZING DELAYS • Identifying the cause that led to the delay • Providing enough financial resources • Competent project management • Resource availability • Frequent progress meetings • Choosing the right (experienced) consultants, suppliers and contractors • Accurate cost estimation • etc.
TIME MANAGEMENT • Part of the construction budgeting process • Project management team determines the amount of time which is needed for the project • Determining the amount of man hours and employees • Major role for cost estimation
References • Singh, P. (n.d.). Delay in construction project and its consequences. Retrieved from http://www.scribd.com/doc/6106511/Delay-in-Construction-Projects-and-Its-Consequences • Ibbnu Abbas, M. (2006). Causes and effect of delays in aceh construction industry. Retrieved from http://eprints.utm.my/5304/ • Cooke, B., & Williams, P. Construction planning, programming and control. Wiley-Blackwell.