The problem of delay in the construction industry is a global phenomenon. The schedule overrun leads to cost overrun of the projects which results in a loss of revenue to the promoter. This paper presents the factors affecting the schedule performance of the construction projects in India. To identify these factors and study their significance, the opinion of the three major playerscontractor, consultant and ownerinvolved in any construction project was sought through postal survey.
It
is generally accepted that the major goals in a construction
project are budget, schedule and quality, although there
are other more specific objectives such as safety consideration
and market entry depending on the nature of the project
and company. However, in Build-Operate-Transfer (BOT) projects,
short construction period is the key to success, as the
concession period includes the construction period also.
As the cash inflow is possible only after the construction
facility is available for use, a delay in the execution
of BOT projects means a loss of revenue not only to the
promoter, but also to the public who is deprived of that
facility for the delayed period.
The
problem of delay in the construction industry is a global
phenomenon. In Saudi Arabia, Assaf and Al-Hejji (2006) found
that only 30% of the construction projects were completed
within the scheduled completion dates and that the average
time overrun was between 10% and 30%. Odeyinka and Yusif
(1997) have shown that 70% of the projects in Nigeria suffered
delays in their execution. Ogunlana (1997) conducted a study
in Thailand, Chan and Kumaraswamy (1997) in Hong Kong, Al-Momani
(2000) in Jordan, and many more. India is also no exception
to delays in the construction industry. A study conducted
by the Infrastructure and Project Monitoring Division of
the Ministry of Statistics and Program Implementation (http://www.mospi.nic.in)
reports that out of 646 central sector projects (which are
of the order of more than $4.45 mn) costing around $50 tn
and an average project duration of six to seven years, about
40% are behind schedule and the delay ranges from one to
252 months. |
