Time overruns

Factors responsible for Time
Overruns in Execution of
Construction Projects in India
by
Bhalchandra Shyamkant Tankkar
Department of Civil Engineering
V.N.I.T. Nagpur, (India)

Contents
INTRODUCTION
Background of
construction sector
Status of
Infrastructure
Projects in India
Details of the
projects facing time
overruns
Need for study
LITERATURE
REVIEW
Defining Time
Overruns
Classification of
Delay
Past studies on
Time overruns
RESEARCH
METHODOLOGY
Research Design
Questionnaire
Design
Data Collection

Contents
RESULTS &
DISCUSSION
Demographic details of
respondents
Data Collection
Overall response pattern
Testing reliability of data
Ranking of Factors based
on RII
ANOVA
Principal Component
factor Analysis
Comparisons with other
countries
CONCLUSION &
RECOMMENDATIONS
Conclusions of the study
Recommendations for
mitigating top three
factors
FUTURE
SCOPE
Areas for
further study

Background of Construction sector
Role of construction sector
• Construction industry is the second employer and contributor in
India after the Agriculture industry
• It accounts for second highest inflow of FDI and is valued at over
USD 126 billion (Source: http://makeinindia.com/sector/construction/)
Investment in infrastructure & construction
• ₹ 55,74,663 crores to be invested in infrastructure during the
Twelfth Five Year Plan period( 2012-2017) (Source: Infrastructure Statistics
2014, Central Statistics Office, MoSPI)
Challenges
• Cost and time overruns are the major issues faced by the sector

Status of Infrastructure Projects in India
The monitoring of public projects in India is done by Ministry of Statistics
and Program Implementation (MoSPI)
As per the 346 Flash Report of August 2014 released by the Ministry of
Statistics, out of 720 central sector infrastructure sector projects costing
₹ 150 crore and above, 295 projects were facing time overruns
Original cost of the 295 delayed projects is ₹ 5,48,838 crore and
anticipated cost is ₹ 6,50,274 crore, thus leading to a total cost overrun
of ₹ 1,01,436 crore

Details of the projects facing time overruns
Time Overrun No. of
projects
Less than 12 months 62
Between 13 to 24 months 66
Between 25 to 60 months 98
More than 60 months 69
21%
22%
33%
24%
Less than 12 months
Between 13 to 24 months
Between 25 to 60 months
More than 60 months

SECTORWISE DETAILS OF PROJECTS
FACING TIME OVERRUNS
Sector
No. of
Projects
delayed
Road 92
Railways 32
Petroleum 43
Power 64
Coal 34
Atomic Power 4
Steel 16
Road
32%
Railways
11%
Petroleum
15%
Power
23%
Coal
12%
Atomic
Power
1%
Steel
6%
Projects delayed in different sectors

Worst hit projects
Bankura-Damodar gauge conversion project of South Eastern Railways
• Initial cost estimated for was ₹ 111.9 crore in 2001
• Now estimated to cost the exchequer ₹ 2,371.85 crore
Gondia-Jabalpur stretch gauge conversion project undertaken by South
East Central Railway
• Original cost was ₹ 386 crore and the project was to be completed in 1998
• Now expected to be completed in 2019, a delay of 21 years and to cost ₹
590.63 crore
G1 and GS-15 oilfield project of ONGC off Andhra coast
• Cost overrun of 820 %
• Delay of more than 9 years
Singareni Collieries Co. Ltd's shaft project at its Adriyala mine
• Cost overrun of 479 %
• Delay of more than 2 years

NEED FOR STUDY
Services provided by infrastructure projects serve as input for
other sectors
Due to delays in project implementation, people have to wait for
the provision of public goods and services longer than necessary
Most infrastructure projects in India are funded by taxpayers’
money
Existing literature reveals that the underlying causes, and thus
the remedies, differ from country to country

Defining Time Overruns
The time overrun variable is defined as the difference between the estimated project
duration and the actual time taken to complete the project.
Mathematical representation
• Net duration=Date of project commencement −Date of project approval
• Time overrun= Net duration − Project duration
In other words, time overrun may also be defined as the delays beyond the date for
completion specified by the contract or beyond the extended contract period where
an extension of time has been granted.
Delays have potential to result in disputes and claims leading to arbitration or
litigation

Classification of Delay
Delays
Ahmed et al.
(2003)
Internal causes
These arise from the parties to the contract (e.g. contractor, client,
and consultant)
External causes:
These, on the other hand, arise from events beyond the control of the
parties. They include the act of God, government action, and material
suppliers
Bolton
(1990)
Excusable but non-compensable delay
These are delays caused by occurrences which are not attributable to
any of the parties.
Compensable delay
These delays result from acts or omissions of the owner or someone
for whose acts an owner is liable
Inexcusable delay
These delays result from a contractor's own fault or his
subcontractors or material suppliers

PAST STUDIES ON TIME OVERRUNS
Ruqaishi and
Bashir (2014)
Oman
Poor site
management
Problems with
subcontractors
Inadequate
planning and
scheduling
Marzouk and
El-Rasas (2014)
Egypt
Finance and
payments of
completed work by
owner
Delay in revising
and approving
design documents
by owner
Ineffective
planning and
scheduling of
project
Kaliba et al
(2009)
Zambia
Delayed
payments
Contract
modification
Problems in
materials
procurement
Sweis et al
(2008)
Jordan
Shortage of technical
professionals in the
contractors
organization
Poor planning and
scheduling of the
project by the
contractor
Too many change
orders from owner

Lo et al (2006)
Hong Kong
Lack of running
capital
Unforeseen
ground conditions
Inexperienced
contractors
Sambasivan and
Soon (2006)
Malaysia
Contractor’s
improper planning
Contractor’s poor
site management
Inadequate
contractor
experience
Faridi and El-
Sayegh (2006)
UAE
Inadequate early
planning of the
project
Shortage of
manpower
Poor site
management and
supervision
Koushki et al
(2005)
Kuwait
Changing orders
Owners’ financial
constraints
Owners’ lack of
experience in the
construction
business

Frimpong et al
(2003)
Ghana
Improper Planning and
scheduling
Shortages of technical
personnel
Bad weather and
Unexpected geological
conditions
Odeh and
Battaineh (2002)
Jordan
Inadequate contractor
experience
Mistakes and
discrepancies in
contract documents
Poor Site management
Elinwa and
Joshua (2001)
Nigeria
Improper planning
Mode of financing and
payment for completed
works
Underestimation of
time/duration of projects

Research Design
Literature
Review
Identify factors
from literature
review
Discussions
with
professionals
from industry
Obtain
opinions from
professionals
Compare the
most important
factors
Finalize factors
to be used in
questionnaire
Preparation of
questionnaire
Data collection
Data Analysis
Compilation of
results
Drawing out
conclusion
Propose
suitable
mitigation
measures

Factors identified
Factor causing time overrun Source
Poor site management and
supervision
Elinwa, Odeh, Faridi, Fugar, Mydin,
Rwakarehe, Aibinu
Poor Site management Al-Najjar, Kaliba, Sweis, Doloi,
Le-Hoai, Ruqaishi, Danso
Rework due to frequent design
changes or mistakes in construction
Kaming, Assaf, Odeh, Elinwa,
Frimpong , Kaliba, Gardezi, Faridi
Unrealistic project duration given by
the client
Odeh, Faridi, Fugar, Rwakarehe,
Elinwa,
Delay in handing over the site to the
contractor
Assaf, Frimpong , Kaming,
Sambasivan, Le-Hoai, Doloi, Marzouk

Factors identified
Factor causing time overrun Source
Delay in financing and payment of
running bills
Frimpong, Omoregie, Lo, Fugar,
Gardezi , Dolage, Mizanur
Lack of co-ordination or
communication between the parties
Odeh, Koushki, Iyer, Le-Hoai,
Sambasivan, Ruqaishi, Doloi
Bad weather conditions Kaming, Assaf, Iyer, Apolot,
Gardezi, Dolage
Shortage of human resources Assaf, Chan, Odeh, Faridi, Danso,
Sweis,Dolage, Rwakarehe
Shortage of materials Chan, Omoregie, Faridi, Lo,
Sambasivan, LeHoai, Danso,
Rwakarehe

Questionnaire Design
•Section 1: General details
•Section 2: Opinion regarding Factors responsible for
time overruns
Questionnaire
consisted of two
parts
•Type of Organization
•Work zone in India
•Experience in years
•Cost of current project
Section 1:
General details
•The second section asked the respondent about his
opinion for a given factor. The respondents were asked
to select any one of the given options viz. Agree,
Partially Agree, Partially Disagree and Disagree
Section 2:
Respondent Opinion

Data Collection
190 copies of the questionnaire were distributed among construction personnel
engaged in works across India through e-mail and sometimes hard copies were
circulated
The questionnaire was distributed to a random sample of 64 clients, 32
consultants and 94 contractors
85 sets of questionnaires were received after follow up
The overall response rate was found to be around 45%

Data Collection
Respondent type
No. of
questionnaires
distributed
No. of
questionnaires
received
Response
rate
Clients 64 33 52%
Consultants 32 10 31%
Contractors 94 42 44%
All respondents 190 85 45%
0
50
100
150
200
Client Consultant Contractor All respondents
No.ofquestionnaires
Respondent type
Responses received
Distributed
Received

Demographic Details of Respondents
• Respondent profile based on type of organization
Type of
Organization
No. of
responses
% of
Total
Client
33 39%
Consultant
10 12%
Contractor
42 49%
Client
39%
Consultant
12%
Contractor
49%
Respondent profile based on type of
Organization

• Respondent profile based on working Region/Zone
in India
Region/Zone
In India
No. of
Respondents
% of
Total
East 5 6%
West 47 56%
Central 13 15%
North 7 8%
South 13 15%
East
6%
West
56%Central
15%
North
8%
South
15%
Respondent profile based on Zone/Region

• Cross section of respondent profile based on Type of
Organization and Working Zone in IndiaClient
Consultant
Contractor
North 2 1 4
South 2 2 9
East -- 1 4
West 24 4 19
Central 5 2 6
2 2
0
24
5
1
2
1
4
2
4
9
4
19
6
0
5
10
15
20
25
30
North South East West Central
Client Consultant Contractor

Respondent profile based on Experience
Experience of
Respondents
No. of
Respondents
% of
Total
0 to 5 years 56 66%
5 to 10 years 14 17%
10 to 15 years 2 2%
15 to 20 years 6 7%
More than 20 years 7 8%
0-5 years
66%
5-10
years
17%
10-15 years
2%
15- 20 years
7%
more than
20 years
8%
Respondent profile based on experience

• Respondent profile based on Cost of current project
Cost of
current project
Number of
respondents
% of
Total
Less than
₹ 10 cr
23 27%
Between ₹ 10 cr
to ₹50 cr
28 33%
Between ₹ 50 cr
to ₹100 cr
19 22%
More than
₹ 100 cr
15 18%
less than
₹ 10 crore
27%
₹ 10 crore
to ₹ 50
crore
33%
₹ 50 crore
to ₹ 100
crore
22%
more than
₹ 100 crore
18%
Respondent profile based on cost of current project

Notation of factors
T1 • Inadequate experience of the contractor
T2 • Poor site management and supervision
T3 • Rework due to frequent design changes
T4 • Unrealistic project duration given by the client
T5 • Delay in handling over the site to contractor
T6 • Delay in financing and payment of running bills
T7 • Lack of co-ordination or communication between parties
T8 • Bad weather conditions
T9 • Shortage of human resources
T10 • Shortage of materials

Response pattern- All Respondents
44
45
46
47
47
49
48
51
60
73
46
44
21
26
35
33
44
40
16
22
9
5
9
16
11
12
5
7
18
5
1
6
24
11
7
6
4
2
6
1
T7
T8
T1
T4
T5
T10
T3
T2
T6
T9
Agree Partially agree Partiallydisagree Disagree No Idea

Coding the data
In order to code the data for purpose of
calculating required parameters, the responses
were coded using a four point Likert Scale
Response Weight assigned
Agree 4
Partially Agree 3
Partially Disagree 2
Disagree 1
No Idea Response not considered for
analysis

Testing Reliability of Data
Reliability Analysis
– The data collected was then tested for its
reliability by determination of Cronbach Alpha
Where,
– α = Cronbach alpha
– N= number of items
– v = average inter-item covariance among the
items
– c = average variance

Testing Reliability of Data
• Cronbach’s alpha reliability coefficient normally ranges
between 0 and 1.
• As per statisticians Gliem J. and Gliem R., (2003) the
following rules of thumb may be followed:
• For the current study the Cronbach alpha value obtained was
α = 0.705
Cronbach alpha value (α ) Reliability of data
α > 9 Excellent
9 > α > 8 Good
8 > α > 7 Acceptable
7 > α > 6 Poor
6 > α >5 Questionable
5 > α Discard the data

Relative Importance Index
• Relative Importance Index:
– The term relative importance refers to the
contribution a variable makes to the prediction of a
criterion variable by itself and in combination with
other predictor variables.
– where,
• A= highest weight given
• N= total number of respondents for a given factor
• ai = constant expressing the weight given to the ith
response
• i= 1,2,3,4
• fi = the variable expressing the frequency of the ith response

Overall Ranking of Factors
Factors causing time overruns Mean
Std.
Deviation
RII Rank
Shortage of human resources- skilled, semi-skilled and
unskilled (T9)
3.68 0.561 0.920 1
Poor site management (T2) 3.39 0.725 0.848 2
Lack of co-ordination or communication between
parties (T7)
3.32 0.694 0.830 3
Delay in financing and payment of running bills (T6) 3.31 0.964 0.826 4
Bad weather conditions (T8) 3.29 0.815 0.823 5
Shortage of materials on site (T10) 3.26 0.888 0.815 6
Rework due to frequent design changes (T3) 3.25 0.815 0.813 7
Unrealistic project duration given by client (T4) 3.09 1.031 0.773 8
Delay in handing over site to the contractor (T5) 2.98 1.134 0.745 9
Inadequate experience of Contractor (T1) 2.89 1.225 0.723 10

Ranking of factors by Clients
Std.
Deviation
RII Rank
Shortage of human resources- skilled, semi-skilled
and unskilled (T9)
3.58 0.502 0.893 2
parties (T7)
3.21 0.740 0.803 6

Ranking of factors by Consultants
Std.
Deviation
RII Rank
Shortage of human resources- skilled, semi-skilled and
unskilled (T9)
3.70 0.675 0.925 1
Lack of co-ordination or communication between parties (T7) 3.20 0.966 0.805 6

Ranking of factors by Contractors
Std.
Deviation
RII Rank
Shortage of human resources- skilled, semi-skilled
and unskilled (T9)
3.76 0.576 0.940 2
parties (T7)
3.43 0.590 0.858 6

ANOVA
One way ANOVA test can be used when we want to
compare means of more than two groups of an
independent variable
Null Hypothesis (Ho) – There is no significant
difference among construction professionals in
opinion for time overrun factor from different
regions of India.
Alternate Hypothesis (H1) - There is significant
difference among construction professionals in
opinion for time overrun factor from different
regions of India.

ANOVA
Factors responsible for time overruns Variance
Sum of
Squares
df Mean Square F Sig.
1. Inadequate experience of
contractor
Between Groups 10.429 4 2.607
1.804 .136Within Groups 115.619 80 1.445
Total 126.047 84
2. Poor site management and
supervision
Between Groups 1.173 4 .293
.546 .703Within Groups 43.015 80 .538
Total 44.188 84
3. Rework due to frequent design
change or mistakes in construction
2.129 .085Within Groups 50.441 80 .631
Total 55.812 84
4. Unrealistic project duration given
by client
.651 .628Within Groups 86.434 80 1.080
Total 89.247 84
5. Delay in handing over site to
contractor
Between Groups .993 4 .248
.186 .945Within Groups 106.960 80 1.337
Total 107.953 84
6. Delay in financing and payment of
running bills for completed works
.503 .734Within Groups 76.134 80 .952
Total 78.047 84
7. Lack of coordination and
communication between parties
Between Groups .103 4 .026
.051 .995Within Groups 40.320 80 .504
Total 40.424 84
8. Bad weather or environmental
conditions
2.104 .088Within Groups 49.835 79 .631
Total 55.143 83
9. Shortage of human resources Between Groups .819 4 .205
.640 .636Within Groups 25.604 80 .320
Total 26.424 84
10. Shortage of materials Between Groups .419 4 .105
.127 .972Within Groups 65.887 80 .824
Total 66.306 84

Interpreting ANOVA Results
Factors responsible for time overruns
Observed
value of F
statistic
Fobs
Observed
value of
significance
sigobs
Check for
significance;
Whether
sigobs >0.05
Maximum
value of F
statistic
Fmax
Check for
F statistic;
Whether
Fobs< Fmax
Remark
(Accept H0
OR Reject
H0)
1. Inadequate experience of contractor 1.804 0.136 Yes 2.486 Yes Accept H0
2. Poor site management and
supervision
0.546 0.703 Yes 2.486 Yes Accept H0
3. Rework due to frequent design
change or mistakes in construction
2.129 0.085 Yes 2.486 Yes Accept H0
4. Unrealistic project duration given by
client
0.651 0.628 Yes 2.486 Yes Accept H0
5. Delay in handing over site to
contractor
0.186 0.945 Yes 2.486 Yes Accept H0
6. Delay in financing and payment of
running bills for completed works
0.503 0.734 Yes 2.486 Yes Accept H0
7. Lack of coordination and
communication between parties
0.051 0.995 Yes 2.486 Yes Accept H0
8. Bad weather or environmental
conditions
2.104 0.088 Yes 2.486 Yes Accept H0
9. Shortage of human resources 0.640 0.636 Yes 2.486 Yes Accept H0
10. Shortage of materials 0.127 0.972 Yes 2.486 Yes Accept H0

Inference from ANOVA
From the results of ANOVA it can be concluded
that the null hypothesis can be accepted
There is no significant difference between the
opinions of the professionals from different
zones of the country about the time overrun
factors

Principal Component Factor Analysis
It is a technique used for reducing large number of
variables to a small number of components or
factors
Generally used in order to classify variables or for
detecting a possible structure in relationship
between the variables

Carrying out Principal Component Factor Analysis
Initial examination
• Determinant
• KMO test
• Test of sphericity
Extraction of
Factors without
Rotation
Check for logical
grouping of factors
Apply suitable
rotation and
extract factors

Initial examination
Correlation Matrixa
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10
T1-Inadequate experience of
contractor
1.000
T2-Poor site management and
supervision .463 1.000
T3-Rework due to frequent design
change or mistakes in construction .337 .496 1.000
T4-Unrealistic project duration given
by client -.388 .111 .115 1.000
T5-Delay in handing over site to
contractor -.356 .075 -.017 .750 1.000
T6-Delay in financing and payment of
running bills for completed works -.357 .128 .169 .645 .647 1.000
T7-Lack of co-ordination and
communication between parties .111 .207 .309 .307 .258 .339 1.000
T8-Bad weather or environmental
conditions -.113 -.023 .114 .253 .311 .090 .261 1.000
T9- Shortage of human resources -.033 .038 -.094 .363 .283 .244 .113 .229 1.000
T10- Shortage of materials -.129 -.019 .133 .326 .259 .249 .316 .482 .379 1.000
a. Determinant = .025

Initial examination
The correlation
coefficient 0.025 is
considered as sufficient
(> 0.00001), which
indicates that none of the
two matrices have multi
collinearity or singularity.
The Kaiser-Meyer-Olkin
(KMO) measure of
sampling adequacy was
found to be 0.677 (> 0.50)
Bartlett test of sphericity
(test of identity matrix)
was 291.640 at
0.001(<0.05) level of
significance
These measures
confirmed the suitability
of the data for
proceeding to factor
analysis

Extraction of factors
The basic concept underlying the Principal Components Factor Analysis (PCFA) is
that the extracted components explain most of the variance of the correlated
variables
The factor analysis can extract common factors equal to or less than the number of
variables involved
The significant factors are those whose eigen values are greater than or equal to 1
Eigen value is a measure of how a standard variable adds to the principal
components

Total Variance Explained
Total Variance Explained
Component
Initial Eigen values
Extraction Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 3.271 32.712 32.712 3.271 32.712 32.712
2 2.012 20.121 52.833 2.012 20.121 52.833
3 1.288 12.880 65.713 1.288 12.880 65.713
4 .917 9.174 74.886
5 .676 6.760 81.646
6 .589 5.891 87.538
7 .411 4.109 91.647
8 .333 3.330 94.977
9 .320 3.198 98.175
10 .183 1.825 100.000
Extraction Method: Principal Component Analysis.

Extraction of factors without rotation
Component Matrixa
Component
1 2 3
1. Inadequate experience of contractor .742
2. Poor site management and supervision .786
3. Rework due to frequent design change or mistakes in construction .779
4. Unrealistic project duration given by client .855
5. Delay in handing over site to contractor .818
6. Delay in financing and payment of running bills for completed works .768
7. Lack of co-ordination and communication between parties .501
8. Bad weather or environmental conditions .623
9. Shortage of human resources .495
10. Shortage of materials .593
a. 3 components extracted.

Extraction of factors After applying Rotation
Rotated Component Matrixa
Component
1 2 3
1. Inadequate experience of contractor .663
2. Poor site management and supervision .824
3. Rework due to frequent design change or mistakes in
construction .799
4. Unrealistic project duration given by client .854
5. Delay in handing over site to contractor .841
6. Delay in financing and payment of running bills for
completed works .867
7. Lack of co-ordination and communication between
parties .281
8. Bad weather or environmental conditions .796
9. Shortage of human resources .557
10. Shortage of materials .824
Rotation Method: Varimax with Kaiser Normalization
a. Rotation converged in 4 iterations.

Inferences from result of Principal Component
Factor Analysis
•The three components obtained were named as CFT 1,
CFT 2 and CFT 3
Factors extracted
•Delay in financing and payment of running bills for
completed works,
•Unrealistic project duration given by client
• Delay in handing over site to contractor
CFT 1
Client controlled factors
•Poor site management and supervision,
•Rework due to frequent design change or mistakes in
construction,
•Inadequate experience of contractor
•Lack of co-ordination and communication
CFT 2
Contractor controlled factors
•Shortage of materials,
•Shortage of human resourcesCFT 3
Planning related factors

Comparison with other countries
Country
Major factors for time overruns
1 2 3 4 5
India (This study)
Shortage of
manpower
Poor site
management
Lack of co-
ordination or
communication
between the parties
Delay in Financing
and payment of
running bills
Bad weather
conditions
Oman
(Ruqaishi,2014)
Poor site
management and
supervision by
contractors
Problems with
subcontractors
Inadequate
planning and
scheduling of
projects by
contractors
Poor management of
contractors’
schedules
Delay in delivery of
materials,
Egypt (Marzouk,
2014)
Finance and
payments of
completed work by
owner
Late in revising and
approving design
documents by
owner
Owner interference Suspension of work,
Mistakes and
discrepancies in
design documents
Tanzania
(Rwakarehe, 2014)
Inadequate design
Change in the scope
of the project
Change in
government policies
Delay in payment to
contractors which
results in interests
Inclement weather
Bangladesh
(Mizanur, 2014)
Rapid increase in
price of
construction
materials
Political situation
(revolution/ public
strikes)
Incompetent/and
immature
subcontractors
Poor financial
condition of
contractors
Frequent design
changes
Uganda
(Alinaitwe, 2013)
Changes in the work
scope
Delayed payments
to contractors
Poor monitoring
and control
High inflation and
interest rates.
Shortage of
manpower
Sri Lanka (D.A.R.
Dolage, 2013)
Delay in progress
payment by clients,
by contractors
Inaccurate planning
and scheduling of
projects
Rainy weather,
Unavailability of
experienced technical
staff
Excessive work in
hand of the
contractors

Comparison with other countries
Country
Major factors for time overruns
1 2 3 4 5
Iran (Towhid
Pourrostam, 2011)
Delay in progress
payments by client
Change orders by
client during
Construction
Poor site management
Slowness in decision
making process by
client
Financial difficulties
by contractor
Ghana (Fugar, 2010)
Delay in honouring
payment certificates
Underestimation of
cost of projects
Underestimation of
complexity of projects
Difficulty in accessing
Bank credit
Poor supervision
Libya (Tumi, 2009) Improper Planning
Lack of Effective
Communication
Design Errors
Shortage of materials
i.e. steel, concrete,
Slow Decision Making
Vietnam (Long Le-
Hoai, 2008)
and supervision
Poor project
management
assistance
Financial difficulties of
owner
Financial difficulties of
contractor
Design changes
Malaysia (Sambasivan,
2007)
Improper planning Poor site management
Inadequate contractor
experience
Inadequate client’s
finance and payments
for completed work
Problems with
subcontractors
Jordan (Sweis, 2007)
Financial difficulties
faced by the
contractor
Too many change
orders from owner
Poor planning and
scheduling of the
project by the
contractor
Presence of unskilled
labour
Shortage of technical
professionals in the
contractor’s
organization
Hong Kong (Tommy Y.
Lo, 2006)
Inadequate resources
due to contractor/lack
of running capital
Unforeseen ground
conditions
Exceptionally low bids
Inexperienced
contractors
Works in conflict with
existing structures/
utilities
UAE (Faridi, 2006)
Preparation and
approval of drawings
Slowness of the
owner’s decision-
making process
Shortage of
manpower
Poor supervision and
Inadequate early
planning of the
project
Nigeria (Aibinu, 2006)
Contractors’ financial
difficulties
Clients’ cash flow
problem
Architects’ incomplete
drawing
Subcontractor’s slow
mobilization
Equipment break-
down and
maintenance problem

Conclusions
The professionals across India share by and large a similar opinion about the factors
responsible for time overruns in execution of construction projects.
Lack of human resources emerged as the most significant factor and had the highest
degree of agreement among all the parties involved in construction.
Poor site management emerged as the second most significant factor and reflected an
agreement between the clients and consultants but the contractors differed in opinion.
Lack of coordination or communication between the construction parties was the third
most significant factor in the view of all the three parties.
The factors ‘Delay in financing and payment of running bills’, ‘Unrealistic project duration
given by client’, ‘Delay in handing over site to the contractor’ and ‘Inadequate experience
of Contractor’ had a very high degree of disagreement between clients and contractors.
This indicates a trust deficit between the client and contractor.
‘Bad weather conditions’’ were moderately significant for both the client and contractor
but consultants considered it least significant. This indicates that the consultants more
often do not consider external factors during planning.

Mitigation Measures
• Framework for overcoming Shortage of human
resources

Mitigation Measures
• Framework for overcoming Poor site management

Mitigation Measures
• Framework for overcoming Poor co-
ordination and communication between
construction parties

Future Scope
Systematic studies are required to be undertaken to determine the effectiveness
of mitigation measures in order to improvise them further and develop suitable
models that can help preventing the factors inhibiting time overruns.
There is a need of sector specific studies as generalization comes at a cost and
may not reflect certain characteristics that are endemic to a particular sector.
An attempt can be made to develop regression models relating time overruns to
cost escalation in order to estimate the impact of time overruns on the cost
performance of the project.
Further studies need to undertaken in order to understand how modern
construction management techniques like lean construction or relational
contracts can help to mitigate the factors responsible for time overruns

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