Literature review construction project costs

Literature check up on social system stomach apostrophizeThis chapter comprises of literature review, quotes of the dissimilar join works done in this argonna of studies.The duration of turn get offs right from inception to completion is assuming commodious immensity in the construction intentness. The author of this bug out work believes that, this free in attention on constructioin lasts is taking it rightful government agency of importance in the global construction sector. Clients or consumers argon no long-acting content merely with minimal cost and adequate functional mathematical operation for their nominates increase interest rates, inflation and galore(postnominal) other commercial pressures, among other factors, reckon that it is in many instances near cost- perfumeive to complete a project within the shortest possible condemnation.The the current hursh financial climate does non pull up stakes for sub declarers non to be prudent with project p lanning and delivery , and so the cerebrate for chosing to write on this subject.The most significant unbudgeted costs on many construction projects are the financial clashings associated with continue and disruption to the works. possessors and Subcontrcators break one common objective to complete the project in while and within budget. It is the failure of this objective of era which leads to failure of budget and last gives rise to disputes. on that point is no consensus in the literature on the appellative of factors which fix stipulated, planned or achieved construction convictions of buildings. one reason for this is that researchers have largely viewed the subject from diverse prospective. Such viewpoints include recognition of discrete factors which affect productivity on site and taking a systems view of the construction process and end product (Nkado R.N, 1995)The inherent and a lot unanticipated adventures on construction projects present identify challen ges to hire outing firms. For warning, if a project is hampered or disrupted, significant re ascendents are engaged and management sequence consumed. The outcome can have serious consequences on corporate value. One loss- qualification project can wipe out the profit on 50 successful ones and significantly damage a companys reputation. In the current frugal climate, claims and disputes are increasingly more likely.Construction grips are non a modern phenomena.The mark offs on some of the UKs most famous landmarks, such as St Pauls Cathederal, the Houses of Parliament and the Clifton Suspension Bridge would make the endures on more late(a) high profile construction projects confront distinctly trifling (Lowsley et al, 2006) chink - commonplacely acknowledged th mt common, costly, complex nd riky problem encountered -n construction project. Becaue f th prevalent ignificance f t-me fr both th owner (-n term f performance) nd th upplier (-n term f money), it - th ource f frequent dipute nd claim leading t legal philosophyuit.Delay occur -n almost every construction project nd th magnitude f thee support varie coniderably frm project t project. ome project re only some day behind chedule ome re delayed b over year. o it - eential t define th actual caue f delay -n order t minimize nd avoid delay -n any construction project (Ahmed et al., 2003).Chan et al (2004) Concluded in a research conducted to measure the success of construction projects that, cost, condemnation and quality are the three basic and most important performance indicators in consruction projects.Other measures such as safety, functionality and satisfaction etc. are likewise currently attracting increasing attention.Chan et al, (2004) accentuated that accurate construction planning is a key factor in ensuring the delivery of a project on schedule and within budget. As almost all projects comprise a large number of mutually beneficial items of work and involve many go badicipa nts, reliable plans and accurate get along-recording mechanisms become all important(p) to project success.Mbachu, et al(2005) discover the sources of strategies for minimising essays in the construction projects and categorised the results into internal and international sources.The internal sources of risks, which fall under the control of nodes ,consultants and Sub asseverators , include those risk elements emanationg from their acts or excisions in the project development process. They noted that, the most frequently mentioned risk elements under client sources include frequent and late changes at detailed stages of the design and construction process, poor leadership and inadequate supervisions on the part of Contractors and subcontractors, low productivity, re-work and lossess, delays in supplying equipment, materials and components.For the consultants, incomplete design information and delay in supplying information required by contractors on site.The outside risk so urces, which are not within the control of the client and the project team, could be segregated into frugal and globalisation kinetics, unforeseen circumstances/ business leader majeue, government, statutory, political controls, health and safety risk elements and socio-cultural issue.smia12010-07-21T162900Who says this is so? If it5s you and then you nned to say what leads you to this concluswionyouType of delayA delay to a construction project generally means delay to the planned completion era or a delay to a particular activity or sequence of activities (Lowsley et al, 2006)Delays can be grouped in the following foursome broad categories according to how they operate contractually non-excusable delays excusable non- paid delays excusable compensable delays and coinciding delayThe Bureau of Engineering Project oral dialogue manual(a) version 2 released in October 2006 smia12010-07-21T163000You need to give a proper reference for this. Who are the Bureau of Engineering Pro ject Delivery?categorised construction delays in three basic types of delays, namely minor-Non-Compensatory (Concurrent), Non-Excusable and Excusable-Compensatory.Non Excusable DelayNon-Excusable delays are events that are within the Subcontractors control or that are foreseeable. These delays might be the results of late performance of Subcontractors, untimely performance by providers, faulty workmanship by the subcontractor, underestimate of productivity, inadequate scheduling or mamanagement, equipment breakdowns, staffing problems, a project specific confinement strikes ca employ by each the Subcontractors with the labour representative or by unfair labour practices(Trauner et al,2009)Excusable Non paid DelayAn excusable delay is caused by factors that are not foreseeable, beyond the Subcontractors control .The implication of the term means that, uncomplete party is at fault under the terms and conditions of the contract and has agreed to share the risk and consequences wh en excusable events occur. The Subcontractor bequeath not receive compensation for the cost of delay, nevertheless he ordain be entitled for an surplus time to smia12010-07-21T163100 unceasingly? Dosent this depend on the terms of his sub-contract? complete his work and is to a fault relieved from any contractually imposed liquidated damages for the period of delay (Ahmed et al, 2003)2.5 Excusable Compensable Delay(Ahmed et al, 2003) acknowledged that, compensable delays are those that are generally caused by the owner or its agents. If the delay is compensable, then the contractor is entitled not only to an extension of time but in any case to an ad scantilyment for any increase in costs caused by the delay. Owner-issued contracts specifically address some potential compensable delays and provide equitable adjustments. The normal equitable adjustable clauses in owner issued contracts that apply are Changes, fret Site Conditionsmia12010-07-21T163200What does this mean?, and S uspension2.6 Concurrent delaysThe concept of concurrent delay has become a very common presentation as part of some analysis of construction delays. The concurrency argument is not just from the standpoint of determining the projects critical delays but from the standpoint of assigning responsibleness for damages associated with delays to the critical route. Owners allow often cite concurrent delays by the contractor as a reason for issuing a time extension without additional compensation.Contractors will often cite concurrent delays by the owners as a reason why liquilidated damages should not be assessed for its delays. Concurrent delays are separate delays to the critical path that occur at the identical time. (Lowsley et al, 2006)Rubin et al. (1983) defined concurrent delays as the situation in which ii or more delays occur at the kindred time either of which had it occurred alone, would have affected the ultimate completion date. It means each of the delays mustiness in dependently affect the critical path.Reyn dodderys et al (2001) argue that to be considered concurrent delays, the delays need not commence precisely at the comparable time.Arditi et al (1995) had a view that, the delays need not occur in the same activity on the same critical path but whitethorn exist in diametrical activities on parallel critical path as well.The SCL Protocol (SCL, 2002) describe a true concurrent delay as the occurrences of the delays, one an employer risk event and the other a contractor risk event, at the same time, and their cores felt at the same time. This occurrence is, however, extremely rare in practice since time is incessantly divisible. For instance, two delay events occurring on the same day would not inescapably be true concurrent delays because one may have occurred in the morning while the other in the afternoon. Concurrent delay is also rather misleadingly used to refer to the occurrence of two or more delay events at different times but thei r effect are felt (in whole or in part) at the same time.As a summary, Figure 1 classifies the different types of delays based on their various attributes.Figure 1 Delay Classifications (Nuhu Braimah 2008)2.7 Primary Causes of DelayThere are two kinds of reason for delay in construction project external causes and internal caue.Internal causes of delay include the causes arising from four parti confused in the project. These parti include the proprietor, designers, contractor, and conultant. Other delays, which do not arise from these four parti, are based on external factors for example from the government, material suppliers, or the weather (Ahmed et al., 2003).Semple et al. (1994) found that making provisions in a construction programme for events such as weather delays reduces disputes. appeal and time claims, especially those which are difficult to quantify, regularly result in disputes amidst the contractual parties. Weather contingencies are very seldom adequate, in terms of progress and cost, referable to the use of varied methods used in the effort for weather contingency calculations. This results in adverse client-contractor relationships.Caenell.N.J, C2005) Cited the appropriateness to look at the matters which actually cause delay during the works themselves. The Contractor/Subcontractors responsibly for delays arise due to a failure on the part of the contractor to carry out the planning stages of the works in good order, others will be due to an inability to perform in the manner agreed in the contract.This is in line with the authors believes that, most delays are caused by inefficiencies on the part of the Subcontractors.Employers function or neutral events are caused through an act or omission of the employer or his team or by a matter which does not arise through the fault of the contractor. These are governed by the contract conditions.A useful list according to Carnell N.J (2005) is listed in Clause 25.4 of JCT 98 and includes gouge majeure,Exceptionally adverse weather conditions,Clause 22 perils(flood and the like),Civil commotion, strike or lock out,Compliance with architects instructions,Non-receipt of subjective information,Delays by nominated suppliers or sub-contractors, artisans and tradesmen,Government action,Restrictions on the availability of labour or materials,Delays by,statutory undertakers,Delays in giving access to the worksAhmed et al, (2003) also mentioned the following as some possible causes of delays in construction project in now Possessive decision-making mechanism, highly bureaucratic organization, scrimpy data collection and quite a little before designSite topography is changed after design,Lack of coordination at design phase,Inadequate review,Improper review article approach,Different attitude between the consultant and contractors/subcontractors,Financial difficulties,In lie with effect,Insufficient number of staffs,Deficiency in project coordination,time worn-out(a) to find sub contractors,company who is appropriate for each task,Often changing Sub -contracting company,Inadequate and old equipment,Lack of high-technology equipment and Harvest time.Ahmed et al (2003) cited Ogunlana et all (2001) as having studied the delays in Thailand, as an example of maturation economies.They concluded that the problems of the construction constancy in developing economies could be nested in three layers(1) Problem of shortages or inadequacies on industry infrastructure, mainly supply of resources, (2) Problems caused by clients and consultants and (3) Problems caused by incompetence of Contractors.Assaf et al (1995) Listed 56 extensive causes of disputes over delay and identified them as shortage of construction material, changes in types and specifications during construction, slow delivery of material, damage of material in storage, delay in the special manufacture of the building material, shortage of labour, labour skills, nationality of labourers, equipment failure, equipment shortage, amateur operators, slow delivery of equipment, equipment productivity, financing by Contractor during construction, delays in Contractors progress payment by Owner, cash problems during construction, design changes by Owner or his agent during construction, design errors do by designers, foundation conditions smia12010-07-21T163500These would be far better rpesented as a bullet pointed listencountered in the field, sneak in soil investigation, water table conditions on site, geological problems on site, obtaining permits from municipality, obtaining permits for labourers, excessive bureaucracy in project Owner operation, building calculate used in the design of the project, preparation and approval of shop drawings, hold for sample material approval, preparation of scheduling networks and revisions, deficiency of training personnel and management support, lack of database in estimating activity duration and resources, judgement of experience in es timating time and resources, project delivery systems used, hot weather effect on construction activities, insufficient available utilities on site, the relationship between different subcontractors schedule, the conflict between the consultant and the Contractor, uncooperative Owners, slowness of the Owner decision making process, the joint ownership of the project, poor organization, insufficient communication between Owner and designer at the design phase, unavailability of master key construction management, inadequate early planning of the project, inspection and testing procedures used in the projects, errors committed during field, application of quality control based on foreign specification, controlling subcontractors by general Contractors in the execution of the works, the unavailability of financial incentives for Contractor to finish ahead of schedule, negotiations and obtaining of contracts, legal disputes between various parties, social and cultural factors, acciden ts during construction .Ahmed et al. (2003) maintained that the iue of responsibility for delay - related to whether the supplier - awarded or - liable for costs and additional time to complete the project. The categories of reponibilitie areproprietor (or agent) responsible supplier will be granted time extension and additional costs (indirect), where warrantedsupplier (or subcontractor) responsible supplier will not be granted time or costs and may have to pay damages/penaltiesneither party (e.g. act of God) responsible supplier will receive additional time to complete the project but no costs will be granted and no damages/penalties aeed andboth parti responsible supplier will receive additional time to complete the project but no costs will be granted and any damages/penalties aeed.smia12010-07-21T163600Always? Dosent this depend on the risk allocation in the contract?Ying et al (2005) acknowledged five factors that influence time performance as great project scope identif ication, low speed of decision making, inadequate managerial skills during the planning phase, insuffiecient contractor completion and Lack of a strong organasational culture.Okumbe et al (2008) researched on Construction Industry perpestive on causes and effects of delays in due south Africa and highlighted causes of dealy in payment as consultants inefficiency,lack of professionalism by the government employees,incompetence caused by insufficient staff,bureaucratic procedures experienced by government/client,late processing by project step surveyors ,late prepartion of payment certificate,claiming problems,late approval of work by architect and engineers,continous formulation of bran-new policies by The Public Procurement and Asset Disposal Board (PPADB),poor budgeting by the client,late submission of cost reports by projects quantity surveyors,lack of understanding of contractual obligations and lack of funding,late project delivery,delays, in materials supply,labour stoppage as employess may go on strike if not paid on time,cash flow problems faced by contractors,contractors claiming extension of time with costs,risk of poor workmanship,poor contract delivery and default in paying suppliesrs and employers.In addition to causes of delays and who is responsible for them, there are other delay-related effects that may occur. High on the list is a falling off in the Contractors efficiency caused by the delays. The delays may directly cause the inefficiency or be caused by the inefficiency.Gorse (2004) Suggested that a well-evidenced claim, supported by an appropraite documentation, that properly establishes cause and effect and reasonably quantities the losses for each event will probably succeeds.Frimpong et al (2003)Conducted a survey on the causes of delay and cost obtrude upons in construction of groundwater projects in a developing countriesGhana as a case study and the main conclusions of the survey weremonthly payments difficulties from agencies,m atarial procurement,poor practiced performance,escalation of matarial prices accordinging to their degree of influence and theses were considered as major factors.The other factors that emerged as not very important ,but of interest were,bad weather,unfavorable geological conditions.Ahmed et al (2003) carried out a research which revealed the ranking of design related key delays.The most general design related caused delay was found to be taking place during the inspection phase followed by material/fabrication period, poor subcontract performance, material procurement and construction mistake as shown on realise 2.Source Ahmed et al. ( 2003)Figure 2 Ranking of design related key delaysEffects of Delay on Construction CostA brief review of text books and reports smia12010-07-21T163800What books and reports? You should at least give some example referencesreveal that construction excellence has not only become an picking but a necessity, if the UK construction industry is to surv ive economics dynamics and changing social needs. Considering the industry is one of the pillars of the domestic parsimony making approximately 10 percent of Gross Domestic Product (GDP) and employing considerable number of workers, it is important to note that construction excellence is critical for the UK economy and its future.When a project is delayed, the owner, Contractor, or both may incur added costs. The last of the amount of these costs is based on the results from the delay analysis and the finis of liability once the critical delays have been identified. (Trauner et al, 2009)More importantly, the construction industry needs to improve itself in order to increase profitability, quality of deliverables and client needs before it can contribute to the economy.There are many possible factors that can cause actual labour costs to master estimated costs such as engineering errors and omissions, excessive changes, delay and quickening and weather. These factors may requir e contractors to work out of sequence, hire more workforce than planned, work plan overtime and utilize more costly methods of construction. (Borcherding et al, 2006).Trauner et al (2009) listed the following as examples of how delays can lead to inefficiencies.Shifts in construction sections-A delay to a project can shift work originally scheduled for one season into a different season.Availability of resources-Delays can affect the availability or resources in the areas of manpower, subcontracts or equipment.Manpower levels and distribution-Changes may be needed in terms of additions manpower, erratic staffing or variations in favorite(a)/optimum gang size.Lowe et al (2006) described disputes as being the source of possible time and cost overrun and possible adversarial relationships between the different parties. This is not welcome to either the Owner or the Contractor. Cost overrun might lead to the project being unsuccessful, unfeasible or misdirect any benefits. Although avoiding disputes has been suggested, this is not usually possible and where disputes cannot be avoided efforts should be made to manage and contain the consequences. It is to the benefit of both the Employer and the Subcontractor to manage disputes towards a blockage as this will safeguard the success of the project.Cormican (1985) observed that the construction industry in UK is always at the top of the bankruptcy league and the most dangerous of all sectors. These unhealthy developments underpin the prevailing abandonment of projects and countermine the viability and sustainability of the construction industry.Akinci et al (1998) categorised risk factors affecting cost performance into organisation specific, global and acts of God. The organisation specific risks are internal risks related to the organisations resources and management including labour skills and availability, material delivery and quality, equipment reliability and availability, and managerial efficiency. orbic ulate risks are those that transcend the boundaries of the contracting organisation yet having large impact on it. These include estimating related, design related, level of competition, fraudulent practices, construction related, economic related and political relatedsmia12010-07-21T164000This is OK as far as it goes, but the literature revierw is supposed to be a CRITICAL review yours is truly just a list of someone said this.You really need to summariuse at the end what the key issues are from your literature review, and how they relate to your particular problem..