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(presented at the 6th IESM Conference, October 2015, Seville, Spain) © I4e2 2015
Abstract— The main aim of this paper is to identify the main large fraction of construction projects. Nevertheless, in recent
causes for the delays in the Portuguese construction industry and years, the financial crisis has resulted in stagnation in the
its impact, with the purpose of increasing knowledge on the industry, forcing some firms to move abroad or declare
causes and impacts of delays in construction projects. The bankruptcy. Consequently, the industry is becoming
Relative Importance Index was adopted to classify the increasingly more competitive and improving the time and cost
importance of the 47 causes and six impacts identified causes of factors has become indispensable for contractors. Concerning
delays. Results show the main causes of delay are slow decision- this matter, a number of studies have been done but outside the
making, changes to orders, unrealistic timescales and poor Portuguese context. Thus, the aim of this research work is to
contract specifications, financial constraints on the contractor
identify the main causes and impacts of delays in the
and the type of bidding and contract award process. The main
impacts are time and cost overruns and disputes. Factor analysis
Portuguese construction industry and comprehend the links
revealed eight high-level causes that result in 26 of the original between them. It is also important to assess whether there are
causes. Finally, Pearson correlation coefficients were calculated differences in perception between the entities involved in
to find the relationship between the extracted factors (latent construction projects.
causes) and impacts, revealing that lack of commitment and sub-
standard contracts are positively correlated with all impacts, and II. DELAYS IN THE CONSTRUCTION PROJECTS
poor consultant performance is negatively correlated with time
overrun. These findings are expected to improve the scientific In recent decades several researchers have studied the
community’s knowledge of construction management. causes and impacts of delays in the construction industry.
Mansfield et al. [5], using a questionnaire survey conducted
Keywords— construction industry; construction delays; relative with contractors, consultants and developers, found 16 major
importance index; causes of delays and cost overruns in Nigerian construction
projects, and they concluded that the main causes of delays had
I. INTRODUCTION to do with finance and payment issues, poor contract
management, shortage in materials, inaccurate estimates and
Regardless the type and localization, delays in construction price fluctuations.
projects have always been an important issue. Assaf and Al-
Hejji [1] define delay in construction as the time overrun either Ogunlana et al. [6] led a study on causes of delays in
beyond the date the contract parties agree upon for delivery of Thailand, analyzing 12 skyscraper projects and they identified
a project, or beyond the completion date specified in the 26 causes and concluded that material shortages, especially
respective contract. A project is considered successful if it cement, nonexistence of qualified workforce, change orders by
meets the requirements of 3 major indicators: time, cost and the developers and lack of contractor experience were the most
quality. However, the timely completion of a project was important ones. Chan and Kumaraswamy [3] conducted
frequently seen as one of the major parameters for evaluating questionnaire survey in Hong Kong with contractors,
project success [2]. consultants and developers with an aim to classifying the
relative importance of 83 causes of delays. The main causes of
To overcome delays, projects are prolonged or speeded delay identified were poor site management and supervision,
with additional costs. As project delays are so recurrent, it is unforeseen ground conditions, low speed of decision making
common practice for a contingency cost to be considered in the involving all project teams, developer initiated variations and
contract, which is usually a fraction of the total contract price necessary variations of work. Odeh and Battaineh [7]
[3]. As a consequence of delays, a variety of problems can conducted a questionnaire survey in Jordan to evaluate the
result, particularly financial problems, which frequently result relative importance of 28 pre-selected causes of delays in
in conflicts between the entities involved: contractors, traditional construction projects. They determined that the
consultants and developers. Notwithstanding all the efforts, the major causes of delays were inadequate contractor experience,
project design and construction complexity makes it often hard developer interference, delay in progress payments by the
to find the causes of the delays, which often are interconnected developer, slow decision making by the developer, improper
[4]. The Portuguese scenario is no different and delays affect a
planning, low productivity level of labor and problems with [1] showed the link between the causes of contractor delay and
subcontractors. time overruns in construction projects in Saudi Arabia.
More recently, Doloi, Sawhney, Iyer, and Rentala [8] used From the literature reviewed, it is clear the causes and
a survey to find the main causes of delays in construction in effects of delays in construction projects vary depending on the
India. The most important causes, from a set of 45 causes, were type of construction project and the country in which it is
delays in material delivery by vendors, non-availability of taking place. Moreover, some of the authors also suggest
drawings on time, financial constraints on the contractor, comparable studies should be carried out in other countries and
increases in scope of work and obtaining permissions from on other types of construction project [1], [13]. The present
local authorities. Gündüz and Özdemir [9] led a survey to study, therefore, contributes to increasing knowledge about the
define the relative importance of 83 different causes of delays cause and impact of delays in construction projects.
in the Turkish construction projects. They concluded that
inadequate contractor experience, ineffective project planning III. METHODOLOGY
and scheduling, poor site management and supervision, design
changes by the developer and late delivery of materials were In the present research study a questionnaire survey
the most important causes of delays. Finally, Fallahnejad [10] methodology was used to evaluate the importance of the causes
studied the causes of delays in 24 gas pipeline projects in Iran and impacts of delays in construction projects. This
and concluded that the main causes of delays were inability on methodology has been employed in similar studies [3], [5],
the part of contractors to provide imported materials, [7]–[9], [12], [13]. For the success of this methodology it is
unrealistic contract durations imposed by the developer, slow essential that the questionnaire is clear and has no errors or
delivery of materials by the developer, slow land expropriation inconsistencies in its design. For that, basic rules for social
due to resistance from occupants and change orders by surveys were used in the design of the questionnaire [15] and a
developers. five point Likert scale was used (1 - very low to 5 - very high)
to measure the relative importance of the causes and impacts of
Studies on the impact of delays in construction projects delays.
were also developed, often in parallel with studies on the
causes of delay, although the number of studies on this subject A total of 47 causes of delays (divided into 9 categories)
is smaller. Aibinu and Jagboro[11] examined and evaluated the and 6 impacts reported in the literature, and validated by
impact of delays in the Nigerian construction industry and construction experts, were considered adequate to capture the
through a survey they identified six impacts of delays: time Portuguese construction reality and were used in the
overrun, cost overrun, dispute, total abandonment of the questionnaire (Tables I and II, respectively). After, a pilot test
contract, arbitration and litigation. Time and cost overruns was conducted with a restricted number of construction firms
were identified as the most frequent effects of delays in to check the efficacy in gathering information and to identify
construction projects. possible errors or misinterpretations. After that, a few changes
were done in the questionnaire.
Manavazhi and Adhikari [12] analyzed the impact of delays
in the delivery of materials and equipment to construction sites The questionnaire was then disseminated by email to a
for 22 highway projects in Nepal. The authors carried out a random sample of 150 contractors, 100 consultants and 70
quantitative analysis of the impact of these delays and found developers. To avoid non-response bias, which can reduce the
that the actual impact of these delays was on average quality of the results, all recommendations by Forza [16]
approximately 0.5% of the project’s total budgeted cost. concerning size and design of sample and non-response bias
were considered. A total of 139 questionnaires were returned,
Sambasivan and Soon [13] conducted a survey to identify respectively: 62 by contractors, 46 by consultants and 31 by
the causes of delay and their impact on project completion in developers. Finally, the data from the questionnaire responses
the construction industry in Malaysia. They concluded that was then analyzed using statistical tools.
delays in construction projects were empirically associated
with the causes of delay linked with the project developer and
IV. RESULTS
contractor. The results also showed that financial overruns
were correlated with the causes related to the contractor. A. Ranking of causes
Although the vast majority of studies primarily address the In this study the Relative Importance Index (RII) method
causes of delay rather than their impact, the truth is that many was used to assess the relative importance of causes and
studies note probable relations between causes and impacts. impacts of delay in construction. This method has been used by
Mansfield et al. [5] and Frimpong et al. [14] identified the several authors in similar studies [8], [9], [12]. For each cause
association between delay causes connected with the or impact the particular RII is calculated as follows (1):
developer, the supervision, materials and time and cost
overruns in construction projects in Nigeria and Ghana,
respectively. Chan and Kumaraswamy [3] concluded that the RII = ∑ W/(A x N) (1)
causes of delay related to the developer and to the supervision
were linked to the failure to meet deadlines in construction Where W is the importance given to each cause or impact
projects in Hong Kong, while Odeh and Bataineh [7] found (1 to 5), A the highest weight (A = 5) and N the total number of
that the causes of contract delay were linked to the regular responses.
conflicts in construction projects in Jordan. Assaf and Al-Hejji
TABLE I. CAUSES OF DELAY of bidding and contract award process”. Respondents also
Category Causes of delay indicated “delay in progress payments by owner”, “improper
C1 - Delay in progress payments by developer planning and scheduling”, “developer interference, “increase in
C2 - Slow decision making by developer scope of work” and “mistakes and discrepancies in drawings”
Developer
C18 - Delay in approval of drawings to “design” and “consultant” related causes. One can conclude
C19 - Delay in quality control
C20 - Lack of control over subcontractor
that the perceptions of the consultants and developers are more
C21 - Waiting time for approval of tests and inspections aligned with each other than they are with the contractors.
C22 - Inadequate material quality Correlation analysis can be used to study the degree of
C23 - Damaged materials agreement between respondent types once the data is gathered
C24 - Shortage in materials on a Likert-scale [17]. Analyzing the Spearman’s rank of
Material
that both impacts are related, given that time overrun often
causes
Contractor
Consultant
C2 - Slow decision making by developer 0.849 1
Developer
Global
C3 - Developer interference 0.736 8
Developer
C38 - Mistakes and discrepancies in contract 0.666 24 correlation coefficients between causes present values higher
C39 - Lack of motivation for contractor to
finish early
0.560 41 than 0.3, so it can be assumed that the factors extracted contain
C40 - Lack of communication between parties 0.696 16 related causes [19]. Finally, all Cronbach’s alpha values are
C41 - Disputes and negotiations between greater than 0.67 (Table VII), which ensure the consistency of
0.711 14 latent causes [21], [22]. Therefore, all results of the factor
parties
C42 - Unforeseen site conditions 0.687 17 analysis can be accepted and have statistical meaning.
External
causes