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Running Head: ANALYSIS OF DELAYS IN CONSTRUCTION

Literature Review for Analysis of Delays in Construction
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ANALYSIS OF DELAYS IN CONSTRUCTION
Introduction
The construction industry has become the most researched engineering sector, but it is not
without problems the major on being the overrun of cost and time. The overruns in each
construction project and the magnitudes inclusive of the cost and delay overruns are dynamic with
every type of project. It is, therefore, imperative to have a precise definition of the events that
actually lead to the cost and time overruns so that we can be able to minimize and mitigate the
increasing. Thesis Statement: This p paper conducts an in-depth literature review on the main issue
concerning costs and time overruns and any other information that relates to the issues.
Building Projects
The building projects involving construction are categorized depending on the scale of the
building projects and therefore are in three forms: High rise, Medium Scale, and small scale
building projects. The high rise are those buildings that have above or equal to 10 stories. They
are mainly purposed for use as office and apartment complexes. They are owned by the
government or private companies. Most of them are construction projects initiated by the private
companies. They involve high investment costs and thus are only constructed by ICTAD grades
M2 or M1 companies. Consultancy is done by private companies in the business, and the projects
are mostly done in the urban settings ( Ibironke, et al., 2013).
The medium scales have 2-10 stories and are also used for apartments, shopping, and office
complexes. Their ownership is mainly by the government, private companies, or individuals. They
are also consulted by the services of private companies. They can be undertaken by up to ICTAD
grade M3 due to the relatively high costs involved. The small scale mainly is made up of house
projects. They are carried out by the individuals and meant for housing purposes. They are either
1-2 stories. The consultants are only involved to the stage of preparing projects designs.

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ANALYSIS OF DELAYS IN CONSTRUCTION
Definition of Cost and Time Overruns
Time Overruns
It is defined as an extension of time exceeding that which was planned for completion dates
as traceable back to the contractors. Delay have negative impacts on the business which retards its
progress and lead to the postponing of activities of the project; there are also those that cause
incidents such as resource unavailability, weather delays, and the delays in design among others.
Generally, the delays are as a result of activities of the project which have both internal and external
cause and the relationship effects (Abd El- Razek, et al., 2008).
It has also been defined as the difference that is between the anticipated time of completion
and the actual time of project completion. It is measured in terms of days. The delays in projects
are those that result in the delay of the date of completion. Therefore, we can define the time
overruns as the time which is increased for the completion of the project and after the date that
was planned for as a result of external and internal factors surrounding the project.
Cost Overruns
It is defined in terms of the excess amount above the actual cost of the budget. It is also
known as cost escalation, budget overrun, or cost increase. It can also be defined as the change in
the dividend of the amount of the contract and the original amount that was awarded to the contract.
The computation can be done in percentages for the ease of making comparisons.

Cost Overrun Amount =

Final Contract Amount − Original Contract
Original Contract Amount

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ANALYSIS OF DELAYS IN CONSTRUCTION
The overruns in cost can also be defined as the difference in the cost estimates that were
estimated and the actual costs of the construction project when the work is completed in a
construction project of the commercial sector (Abdul-Rahman, et al., 2006).
Types of Delays
Many studies have researched delays in construction projects and thus are divided as
concurrent, excusable, critical, and compensable delays. These types of delays have external and
internal impacts on the process of the project. The delays can result from internal causes which
come from the project designers, owners, consultants, and the contractors. They can also be caused
by external factors which typically come from outside the project of construction and includes
such factors as the government, utility companies, suppliers, nature, labor unions, subcontractors,
among others (Assaf & Sadiq, 2006). The figure below shows the relationship of the different
delay categories.

Figure 1. Sequential Relationship of Delays

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ANALYSIS OF DELAYS IN CONSTRUCTION
Excusable Delays
The excusable delays are those events that are unpredictable and out of the control of
individuals. They can be categorized further into either non-compensable or compensable. When
considering the delay as compensable, the contractor is entitled to extra time in the project
completion and financial compensation added to the one already in place. Under certain situations
where the excusable delays are considered as non-compensable, the contractor will be entitled to
extra time but no additional money for the extra work that is to be completed (Ibrahim, et al.,
2012). Also, referred to as force majeure, or the acts of God, the excusable delays are referred to
by this names as they are not the fault or responsibility of any project players. Most of the contracts
in place give the contractor the allowance of creating additional time for the excusable delays but
not extra financials.
When the owner issues the contracts, they specifically address the potential delays that can
be classified as compensable and make adjustments that are equitable. The most common clauses
of adjustment in those contracts issued by the owner in response to the delays are suspension, site
conditions that are differing, and the changes. The changes in the contracts issued by the project
owner have provisions of the order that the equitable adjustments should be conducted (Ahmed,
et al., 2002).
Concurrent Delays
In the case where only one factor delays the construction project, it is much easier to
compute both the financials and the time which results from the single factors. More complicated
and typical situations are the ones where more than a single factor causes the project delay and in
subsequent time overlaps or similar time. Such types of delays are referred to as concurrent delays.

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ANALYSIS OF DELAYS IN CONSTRUCTION
The concurrent delays can occur when both the contractor and the project owner are the
causes of the delay. Generally, when inextricably intertwined, neither the players especially the
contractor is held responsible; these include being forced to accelerates, nor being held liable for
the liquidated damages, he is also not liable for recovering the damages of the delay from the
project owner (Braimah, 2008). Before the analysis of the CPM schedule was developed, there
lacked a reliable method for differentiating the impacts of the delays caused by the contractor from
those that were caused by the owner. With the rise of computerized techniques that are
sophisticated, it has become possible to differentiate the impacts of concurrent delays caused by
the owner from those caused by the contractor.
When analyzing the claim in the event of delays, it is done on a comparison basis of the
CPM schedule that was approved by the contractor to the CPM schedule as-built and it should be
performed for apportioning proper responsibility of the delay that occurred. This is because a shift
in the critical path may take place during the progress of the job, it is thus updated gradually as
required by the terms of the contract and from the inputs of the contractors.
Compensable Delays
The compensable delays generally occur as a result of the activities of the owner or the
agents of the contract. The most prevalent form of the delay is the specifications and drawings
being inadequate. However they can also result from the failure of response from the owner in
timely fashions when requested for shop drawings or information, changing the design or the
materials, and disrupting or changing the work sequence. The contractor is thus entitled to both
additional time and money as a result of the compensable delay from the owner.

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ANALYSIS OF DELAYS IN CONSTRUCTION
Adding to the stated possible causes of delays, there are also other ways in which the
compensable delays can be caused. The compensable delays from such causes are excusable
delays, interruptions, suspension of all or part of the work resulting from an act or failure on the
part of the owner through the breaching of the obligations which imply or are stated in the contract.
In the event that the delay is compensable, then the contractor has entitlement not only in the time
extension but also equitable adjustments for any cost increase which are caused by the occurrence
of the delay.
There is yet another type of delay termed as the pacing delay; it is the deceleration in the
works of the project caused by one of the parties to the contract. This is due to the delay in the
project’s end date which is caused by other parties of the contract. The objective is always to have
a steady progress of the project schedule that has been revised (Bubshait & Cunningham, 2004).
Critical Delays
These are claims in the delay that affect the time, progress, and compensation. The nocritical delays have no effect on the date of completion of the project. They influence the activities
that are succeeding but not on the critical path. It can really cause a setback in the activities if there
is no float in the schedule
Causes of Costs and Time Overrun
Causes of Delay in Time
The delays in time can be categorized into three:


Those that neither of the contract parties has control over;



Those which the owner or the project agents has control over;



Those which the contractor and the subcontractors have control over;

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ANALYSIS OF DELAYS IN CONSTRUCTION
The factors that predominantly influence the overrun in time are the changes in the design,
poor productivity of the labor, shortages in resources, and no planning adequately for the project.
The tables below show the variables resulting from the cost controls and delays

Table 1. Variables that influence time and cost control
The construction projects as stated before are as a result of two major causes: external cause
and internal cause. The internal causes of overruns include those that arise from the four parties
that are involved in the project (Chang, 2002). The parties include the project owner, contractors,
consultants, and the designers. The other delays in the project that are not caused by the four parties
are termed as being caused by external causes for instance, from the materials suppliers, weather,

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ANALYSIS OF DELAYS IN CONSTRUCTION
and the government. Researchers have frequently categorized the factors in four categories, these
are:
Responsibility of the Contractor
These are factors that come from the responsibility of the contractors. They include
mistakes in construction and work that is defective, on-site materials shortage, poor labor skills
and experience as well as site labor shortage. Other factors include low labor productivity,
problems with financials; problems when coordinating with others and lack of skills by the
subcontractor. Lack of site staff from the contractor, poor management of the site, and the on-site
shortage of tools and equipment also happen to be responsibilities of the contractor (Li, et al.,
2000).
Responsibility of the consultant
These are the factors that are related to the project responsibility of the consultant. They
include site staff absence from the consultant, lack of experience by the consultant, lack of
experiences from the site staff from the contractor’s side i.e. the supervisory and managerial
personnel. Other factors include the slow and delayed decision making from the supervision,
having documents that are incomplete, and the slowness in issuing instructions.
Responsibility of the Owner
These are factor relating to the responsibility of the owner in the construction project. They
include lack of knowledge in the working, slow in the decision-making process and lack of
coordination with other parties in the contrac...