1.2 Problem Statement
In the building industry, undertakings can be delayed among big figure of causes. There are different type and classs of holds found on building Undertakings. Delay has major consequence on completion cost and clip of building Project. Delaies can be minimized if they were placing causes. Knowing the cause of any peculiar hold in a building undertaking would assist avoiding the same.
Even though with different types of surveies have been carried out to place the factors influence the causes of holds, since the jobs are rather related to the surveies need to concentrate on specific geographical country, or part in Malaysia. A major grasp of the Malaysia building industry is due to the turning rate of holds in undertaking bringing.
In Malaysia most public work undertakings, including any building undertakings under authorities authorization or under privateness are awarded on a competitory footing utilizing the traditional attack. The advisers and contractors are engaged in separate contracts. The contractors normally would be involved until the whole undertaking have been completed
1.3 Aim and aim of survey
To look into holds refering in building undertakings in Malaya
To place the major causes of holds in building undertaking ;
To place the effects of holds in building undertaking ; and
To place the methods of minimising building holds.
1.4 Background of the survey
Construction hold is major jobs frequent occur in the building industry. Delays adversely impact on undertaking stakeholders including proprietors, design professionals, building professionals, buyer and others. The chief aims of building undertakings are cost, clip, quality and safety legion
Harmonizing to Assaf, et Al. ( 1995 ) “ mentioned the most of import causes in big edifice building undertakings in Saudi Arabia which included blessing of store drawings, holds in payment to contractors and the ensuing hard currency jobs during building, design alterations, struggle in work agendas of subcontractors, slow determination devising and executive bureaucratism in proprietor ‘s organisations, design mistakes, labour deficit and unequal labour accomplishment. ” Refer to causes of hold in Saudi Arabia, the major parties to take the hold go on which include client and contractor. Because of client ever change the design of edifice. Besides that, late responds and hapless undertaking direction squad and besides delay wage month payment to the contractor by client. On the other manus, contactor due to non adequate worker during work advancement and some statement with sub-contractor.
Harmonizing to Ogunlana, et Al. ( 1996 ) “ studied the holds in edifice undertaking in Thailand, as an illustration of job faced by the underdeveloped economic systems. They concluded that the jobs of the building industry in developing economic systems can be nested in three beds: job of deficits or insufficiencies in industry substructure, chiefly supply of resources ; jobs caused by clients and advisers ; and jobs caused by incompetency of contractors. ” Construction in Thailand because some parties fault due to project hold such as contractor adviser and. During building phase the client because of altering certain portion of design and deficiency of experience could non work out the job instantly. Besides client, interior decorator is one of the parties because of ain mistake which is give ill-defined pulling to the contractor due to miss in experience. On the manus, the other parties which is contractor because of confronting in hapless direction squad, improper planning and programming and besides insufficiency of site review.
Harmonizing to Chan and Kumaraswamy ( 1996 ) “ surveyed and classified the causes of building holds in Hongkong as seen by clients, contractor and advisers, and examined the factors impacting productiveness. The consequences of their research indicate that the five principal and common causes of holds are: hapless site direction and supervising ; unanticipated land status ; low velocity of determination doing affecting all undertakings team ; client initiated fluctuations ; and necessary fluctuation of plants. ” Construction hold in Hongkong, the parties related to detain undertaking include client, advisers, contractor and some relevant party. Factor to related hold by client such as client frequent hold make payment to contractor and besides suffer in fiscal job. Besides client, interior decorator because of deficiency of experience ever make error in pulling and late procedure design papers. On the other manus, factor to do contractor hold undertaking which include deficiency of experience in undertaking squad and besides hapless site direction and supervisings. Other than that, stuff is besides one of the causes. During building phases, material deficit and stuff alterations to do undertaking hold.
Identified the effects of holds in building undertakings have been undertaken by some research workers. Harmonizing to AIbinu and Jagboro ( 2002 ) , ” identified the six effects of holds were clip overproduction, cost overproduction, difference, arbitration, entire forsaking, and judicial proceeding. The consequences of their studied about the effects of building holds on undertaking bringing in Nigerian building industry, shows clip overproduction and cost overproductions were the frequent effects of holds in building undertakings. ” In building industry, the consequence of undertaking hold because of clip and cost overproduction. In this state of affairs, some of the mistakes parties need to take duty to pay the loss and disbursal to those parties suffer in harm.
Several surveies have been studied and recommended the methods of minimising holds in building undertakings. Nguyen, et Al ( 2004 ) , “ identified five critical success factors could be applied to cut down the effects of holds includes: competent undertaking director ; equal support until project completion ; multidisciplinary/competent undertaking squad ; committedness to undertakings ; and handiness of resources. ” To minimising the undertaking hold during the building phase, foremost of all a client needs to engage an experience undertaking director. Once the job of hold happen, the undertaking director can work out instantly. Besides that, the undertaking squad member should pass on with other squad member.
Aibinu and Jagboro ( 2002 ) in their survey besides identified two methods to cut down or if possible eliminate clip overrun were acceleration of site activities, and eventuality allowance. The contractor must take full duty during work advancement. Once contractor found out existent work advancement are non similar with estimation and he must take some action to avoid the undertaking hold such as involve some extra worker.
Harmonizing to Odeh and Battaineh ( 2002 ) “ recommended four methods includes: developing human resources in the building industry through proper preparation and categorization of craftsman ; following a new attack to contract award process by giving less weight to monetary values and more weight to the capablenesss and past public presentation of contractors ; and following new attacks to undertaking, such as design-build and building direction ( CM ) type of contracts. ”
1.5 Scope of the Study
The range of the research will concentrate on literature reappraisal and a questionnaire. Undertakings investigate in this research included school edifice, church, office, infirmary, communicating installations and etc. The study will carry on in Malaysia.
The questionnaire study will plan based on factors identify from literature reappraisal that contributed to causes of holds, effects of holds and methods to minimise holds. A questionnaire will developed to measure the perceptual experiences of contractors and advisers of the comparative importance of the causes and the effects of building holds. The developed study questionnaire will distributed to the mark respondent in Malaysia.
1.6 Outline methodological analysis
Phase 1: Literature reappraisal
The reappraisal of literature has provided utile information based on the causes, effects, reactions and possible solution related to the issues delay undertaking in building industries.
Phase 2: Pilot survey
Data aggregation will take the signifier of a structured postal questionnaire. However, an initial pilot survey will be conducted to prove the cogency of the questionnaire through in-depth interviews with three contract director.
Phase 3: Main study questionnaire and questionnaire go through with interview.
The feedback from the pilot survey should help in finalising the questionnaire and fix the land for chief study. The inquiries with Centre around the countries mentioned in the above aims. In order to obtain a high degree of response, a multi-option format will be designed and limited to about 30 inquiry and 10 inquiries which are go through with interview. Open inquiries are considered to be inappropriate as they would necessitate the respondents to explicate an reply which needs lengthier input and will hence be more hard to analyse.
Phase 4: Analyzing the postal and interview questionnaire
This phase is analysis of the questionnaire to find the degree of understanding or dissension by the respondents to each inquiry within the questionnaire by numbering the figure of respondents who answer favorably or unfavorably. Besides that, analyze the inquiries which is done by interview to find how the contractor to work out the delaying job of undertaking.
Phase 5: Writing the research study
The phase involves composing up the content of the thesis and should cover the chapter proposed in the undermentioned subdivision.
Chapter 1 – Introduction
Chapter 2 – Literature reappraisal
Chapter 3 – Research design and method of analysis
Chapter 4: – Analysis of the consequence and treatment
Chapter 5: – Decision and hereafter survey grounds
Chapter 2.0 LITERATURE REVIEW
In this chapter, I will discourse types, causes and effects of hold of undertaking in the building industry. Besides that, I will besides discourse the method to minimise the holds go oning in building industry
2.2 Type of Delay
In building industry, hold can be classs nib three type as shown in Table 2.1 which include excusable, Non-Excusable, and coincident hold. That purpose type of hold is finding delay harm.
Entitlement for clip
Figure 2.1 Types of Delay
2.2.1 Excusable holds
Excusable hold as define a hold that is due to an unforeseeable event beyond the contractor ‘s or the subcontractor ‘s control. Normally, based on common general commissariats in public bureau specifications, hold ensuing from the undermentioned events would be considered excusable such as fires, inundations, owner-directed alterations, mistakes and skips in the contract drawing, remarkably terrible conditions and etc. Excusable holds can be farther classified into excusable with compensation and excusable without compensation.
188.8.131.52 Excusable with compensation
Compensation holds are caused by the proprietor or the proprietor ‘s agents. An illustration of this would be the drawings late release from the proprietor ‘s designer. An excusable, paying hold usually leads to a agenda extension and exposes the proprietor to fiscal amendss claimed by the contractor. In this scenario, the contractor incurs extra indirect costs for both drawn-out field office and place office operating expense and unabsorbed place office operating expense.
184.108.40.206 Excusable holds without compensation
Non-compensable holds are caused by 3rd parties or incidents beyond the control of both the proprietor and the contractor. Examples typically include Acts of the Apostless of God, unusual conditions, work stoppages, fires, Acts of the Apostless of authorities in its crowned head capacity, etc. In this instance, the contractor is usually entitled to claim extension of clip but no compensation for hold amendss
2.2.2 Non-excusable holds
Non-excusable holds are cause by deficiency of public presentation of the contractor on the building undertaking. This hold can be cause by underestimations of productiveness, improper undertaking planning and programming, hapless site direction and supervising, incorrect building methods, equipment dislocations, undependable subcontractors or providers. Therefore, it is contractor duties to go on their work with no entitlement to claim for extension of clip or hold amendss until they completed the undertaking. For case, a contractor failure to supply an equal stuff to completed their occupation.
2.2.3 Coincident Delay
Coincident hold is a job that go oning on most of the building industry undertaking. This issue arises when two or more delaying event at the same clip in a undertaking can non finish on clip. In this state of affairs, both proprietor and contractor are responsible for the hold. Commonly concurrent holds which involve any two or more excusable holds result in extension of clip. When excusable with compensation and non-excusable holds are coincident, an extension of clip can be issued or the hold can be distribution between the proprietor and the contractor. Coincident hold can be classs in three types of holds:
If excusable and non-excusable holds occur at the same time, the contractor merely to let claim for extension of clip:
If excusable with compensation and excusable without compensation holds occur at the same time, the contractor is entitle to claim extension of clip but no hold amendss:
If two excusable with compensation holds occur at the same time, the contractor is entitled to claim extension of clip and hold amendss.
For case, a coincident hold would be if the proprietor failure to give more item sing either utilizing ceramic tile or homogenous tile for lavatory floor coatings. But at the same clip contractor made with ain determination and utilizing ceramic tile for lavatory floor coatings but really proprietor program utilizing homogenous tile. In this state of affairs, the contractor can non claim for amendss. It is because contractor is non follow proprietor direction but he can claim for extension of clip with proprietor failure to give more item of pulling
2.3 Causes of holds
Causes of holds
Figure 2.2 Causes of holds
Based on the researched done through by diary, books, and some other mention. Undertaking hold can be causes by a batch of parties which is shown in the Figure 2.2. They are include client, contractor, adviser, labour, stuff, equipment, fiscal and some external causes.
2.3.1 Caused of Client Related Delays
Lack of experience of client in building
Figure 2.3 Factors of client related holds
220.127.116.11 Lack of experience of client in building
Harmonizing to Koushki, et Al. ( 2005 ) identified factors of deficiency of experiences of client in building undertaking have high influence to the causes of holds. Some of the undertaking hold cause by client due to non adequate experience particularly fresh developer. Most of the clip, client confronting a job and do non cognize how to work out it instantly because of no experience. During client happening the manner to work out the job, some of the work could non come on. Finally, the whole undertaking hold because of some peculiar work hold.
18.104.22.168 Change order
Harmonizing to Odeh and Battaineh ( 2002 ) mentioned the factors of alteration orders that contribute to causes of holds ” . Client ever change the design during the building period, during the same clip that will impact whole undertaking hold. It is because contractor can non transport out his work until the latest pulling issue by designer. Consequently contractor can non be done within the contract period. Most of the current undertaking hold because of alteration order by client. For case, a undertaking about complete but client alteration certain portion of design and instruct contractor carry out the extra work. After done the whole undertaking, the contractor found out was transcending contract period.
22.214.171.124 Client intervention
Harmonizing to Long, et Al. ( 2004 ) studied the factors client intervention that contributes to causes of holds in building undertaking. Some of the client instruct contractor to transport out extra work without ask designer promise. During the contractor carry out extra work, some of the work could non come on and it will be delay instantly. On the other manus, client do non follow the process such as did non reference architect issue an architect direction. Finally it will impact the whole undertaking hold. As stated in Persatuan Arkitek Malaysia signifier 2006 ( PAM signifier 2006 ) , which certain clauses saying about the amendss by employer due to this event. It stated that in clauses below.
Clause 26.1 ( B ) Defaults by Employer.
“ If the Employer interferes with or obstructs the issue of any certification by the designer. ”
2.3.2 Causes of contractor related hold
Inaccurate of cost estimation
Inaccurate clip estimation
Poor site direction and supervising
Inadequate contractor experience
Figure 2.4 Factors of contractor related hold
126.96.36.199 Inadequate contractor experience
Abd Majid and McCaffer ( 1998 ) studied the factors of unequal contractor experience as subscriber to causes of holds. Long, ET Al. ( 2004 ) mentioned the factors of unequal contractor experience that contribute to causes of holds in building undertaking. Battaineh ( 2002 ) identified the factors of unequal contractor experience as subscribers to causes of holds. In building industry, some of the hold undertakings are confronting a job during building period. But at the same clip contractor could non work out the job instantly because of no experience. During the contractor happening method to work out the job, some of the plants wholly stop because of that job. After the job was solved, those work maintaining continue but run out from the agenda. Finally, the whole undertaking will act upon hold.
188.8.131.52 Inaccurate clip estimation
Harmonizing to Long, et Al. ( 2004 ) identified the factors of inaccurate clip gauging that contribute to causes of holds in building undertaking. ” Time estimations are of import as inputs into other technique used to pull off and construction for all undertakings. An inaccurate clip appraisal technique may do a undertaking hold. For case, in some hold undertaking, the contractor do non allowed clip for some common job ever go on during the building phase such as dislocation of equipment, miss bringings by supplies, accidents and exigencies and so on. Because of this job the existent clip will run out from the estimated. So, the whole undertaking could be facing hold.
184.108.40.206 Inaccurate of cost estimation
Harmonizing to Long, et Al. ( 2004 ) besides mentioned that, the factors of inaccurate cost estimating that contribute to causes of holds in building undertaking. Construction gauging mistakes can be really expensive and abashing. Inaccurate of cost estimation contribute a batch of cause such as incorrect measurings from contract pulling, utilizing wrong units of step, stuff improperly priced and the most common errors in arithmetic. Sometime contractor because of inaccurate of cost estimation measuring once more for that peculiar work. Finally, due to re-measurement clip some of the work will act upon hold and it will besides impact whole undertaking to detain.
220.127.116.11 Poor site direction and supervising
Battaineh ( 2002 ) studied that, the factors of hapless site direction and supervising as subscribers to causes of holds. Chan and Kumaraswamy ( 1996 ) identified the factors of hapless site direction and supervising that contribute to causes of holds. In building industry, some of the undertaking squad a deficiency of direction and supervising due squad member without any experience and skill such as hire individual who are fresh alumnus. Once they confronting job but do non cognize how to work out it. Besides that, some of the supervisor did non cooperation with their squad member due to miss of communicated. Finally, because of can non work out the job instantly the whole undertaking influence hold.
Consultant2.3.3 Causes of Consultant Related Delays
Inadequate adviser experience
Poor design and hold in design
Incomplete drawing and item design
Figure 2.5 Factors of adviser related holds
18.104.22.168 Inadequate adviser experience
Harmonizing to Long, et Al. ( 2004 ) studied the factors of unequal adviser experience as subscribers to causes of holds. In building industry, they are many advisers carry out their work without experience. Besides that, there are many causes of a adviser without experience which include different site conditions, misdirection and maladministration, site entree limitations, faulty program and/or specification. For cases, some of the designers merely concentrated in certain portion of edifice and do non hold any experience in other type. Once architect design on that peculiar type of edifice without experiences, he will confronting a batch of error and no thoughts during design and because of this designer will detain publish the drawing. Finally, the plants can non treat and it will impact the whole undertaking hold.
22.214.171.124 Poor design and hold in design
Harmonizing to Ogunlana, et Al. ( 1996 ) mentioned the factors of hapless design and hold in design that contribute to causes of holds in building undertaking. Design is every of import to any undertaking, without good design the whole undertaking will act upon hold. It is because in a undertaking if facing hapless design that will confront demolish and rebuilt once more. This job happens because of the interior decorator deficiency of experience. For case, an designer designs a column in the center of schoolroom. Once the contractor without any experience and concept the work precisely shown in the drawing. Finally
126.96.36.199 Incomplete drawing and item design
Long, et Al. ( 2004 ) identified the factors of uncomplete drawing and item design as subscribers to causes of holds. Ogunlana, et Al. ( 1996 ) studied the factors of uncomplete drawing and item design that contribute to causes of holds in building undertaking. During building, the contractor is transporting out the work but because of drawing is ill-defined and none really detail shown in the drawing. He could non go on the work with job, so the plants have to halt instantly until acquire more item of that peculiar drawing from adviser responds. Because of without item pulling the work could non be advancement, so it will impact the cheapness peculiar work hold and it will besides act upon the whole undertaking hold.
2.3.4 Causes of labour related holds
Deficit of skilled worker
Labor of productiveness
Figure 2.6 Factors of labour related holds
188.8.131.52 Labor supply
Abd Majid and McCaffer ( 1998 ) identified the factors of slow labour supply that contribute to causes of holds. Odeh and Bataineh ( 2002 ) in their research identified “ the factors of labour supply as subscribers to causes of holds. Besides stuff, the labour besides consider as major beginning in the building industry. By and large, labour is classs into two groups such as skilled workers and unskilled workers. In building industry without labour undertaking could non run. For case, during building, stuffs are ready to but no worker transporting out the work. During the same clip because of no worker to advancement of work, the undertaking will face undertaking hold.
184.108.40.206 Deficit of skilled worker
Harmonizing to Chan and Kumaraswamy ( 1996 ) mentioned the factor of deficit of skill labour is the most of import factor that contributed to causes of holds. Skilled worker is a worker who has some particular accomplishment, cognition and ability in his occupation and besides gets highest wage such as plasterer, carpenter, painter, and concreter. Those skilled workers are larning the accomplishments on the occupation. In building, some contractors do non engage skilled workers because of higher labour cost and he employs some unskilled workers. At the same clip skilled workers do non desire acquire the occupation from the contractor with lower labour cost. Finally the unskilled workers could non finish the work on clip. So, because of deficit of skilled worker affect whole undertaking hold.
220.127.116.11 Labor of productiveness
Harmonizing to Ogunlana, et Al. ( 1996 ) studied the factor of labour productiveness holding high influence to causes of holds. Labor of productiveness ; by and large define as end product per labour hr. There are many factors that influence on the labour productiveness. One of the factors is workers experience, labour with high experience and high accomplishments in field leads to high public presentation at workplace. Besides that, attitude besides will impact productiveness of labour. For case, a worker can put one metre square per hr but because of lazy. Finally he utilizing three hours to complete laid the brick wall. Because of this factor, the advancement work hold and it will besides act upon the whole undertaking hold.
2.3.5 Causes of Material related Delay
Deficit of building stuffs
Poor quality of building stuffs
Escalation of stuff monetary values
Late bringing of stuffs
Figure 2.7 Factors of stuff related hold
18.104.22.168 Deficit of building stuffs
Koushki, et Al. ( 2005 ) mentioned that, factor deficit of building stuff that contributes to causes of holds. Ogunlana, et Al. ( 1996 ) identified the factor of deficit of stuff as a factor to causes of hold. Chan and Kumaraswamy ( 1996 ) studied that factors deficit of stuff as subscribers that contribute to causes of holds. Abd Majid and McCaffer ( 1998 ) identified the factor of deficit of stuff that contributes to causes of holds. Material deficit is a possible beginning of building hold. The major causes of material deficit is demand exceed supply. In building have a batch type of stuff and the three chief classs are cement, formwork and steel saloon. Besides that, stuff is one of the chief beginnings in building industry. It is because without stuff undertaking can non build. If a undertaking confronting the material deficit job will be hold. For case, a undertaking holding shortage ceramic tiles even though the labours ready for tiling. In this state of affairs, the undertaking will confront hold undertaking.
22.214.171.124 Late bringing of stuffs
Ogunlana, et Al. ( 1996 ) identified the factor of late bringing of stuff as a factor to causes of hold. Abd Majid and McCaffer ( 1998 ) studied the factor of late bringing of stuff that contribute to causes of holds. Late bringing of stuff as a provider mistake due to high market demand ; nevertheless the long process of the buying order from caput office was complained. In building, it factor is similar to the material deficit such as the labor ready for work but no stuff to make their work. Once contractor can non have the stuff on clip that will be delay work and it will besides impact undertaking hold. For illustration, workers want to put in the Windowss but without frame because of late bringing to site. So, the work will be hold and it will impact undertaking hold.
126.96.36.199 Poor quality of building stuffs
Koushki, et Al. ( 2005 ) mentioned that factor hapless quality of stuff that contributes to causes of holds. Ogunlana, et Al. ( 1996 ) identified the factor of hapless quality of stuff as a factor to causes of hold. Abd Majid and McCaffer ( 1998 ) studied the factor of hapless quality of stuff that contributes to causes of holds. Poor quality of stuff is concept constructing with utilizing hapless quality of stuff. The contractor has purpose to rip off proprietor to gain more net income by alteration the quality of stuff such as concrete. For case, a contractor cast a column with utilizing Y 20 steel saloon but existent in contract drawing is Y 25. After site staff done the review for this column and found that the steel saloon inside column is Y 20 and inquire contractor pulverize the column to reconstruct. In this instance, clip taken to reconstruct the column will besides impact undertaking hold.
188.8.131.52 Escalation of stuff monetary values
Ogunlana, et Al. ( 1996 ) identified the factor of escalation of stuff monetary values as a factor to causes of hold. Wiguna and Scoot ( 2005 ) studied the factor of escalation of stuff monetary values was one factor that contribute to causes of holds. Escalation of stuff monetary values will do shortage stuff in building. It is because the market rate is maintaining increasing. Some of the contractor does non purchase the expensive stuff. During same clip, the building without stuff can non run so the undertaking will act upon the undertaking hold. For case, a contractor because of stuff cost of market demands higher and does non do any order for stuff until material deficit. Finally, the building can non run without stuff and it will impact hold undertaking besides.
2.3.6 Causes of Equipment Related Delays
Deficit of Equipment
Insufficient figure of equipment
Frequent equipment dislocation
Figure 2.8 Factors of Equipment related holds
184.108.40.206 Insufficient figure of equipment
Harmonizing to Ogunlana, et Al. ( 1998 ) identified the factors of deficient Numberss of equipment is the most important factors that contribute to causes of holds. In building phase, contractors are confronting non plenty machinery to bring forth work. It is because some of the contractors do non hold a big capital to buy that machinery due to higher cost. Once the undertakings carry out with non adequate machinery, it will act upon whole undertaking hold. For case, there are two plants to be done by utilizing towel Crane but in site merely one towel Crane available. Finally, two of work could non be done at the same clip due to non plenty towel Cranes.
220.127.116.11 Frequent equipment dislocation
McCaffer ( 1998 ) studied the factors of equipment breakdown as subscribers to causes of holds. Ogunlana, et Al. ( 1998 ) mentioned the factor of frequent equipment dislocation is the most important factors that contribute to causes of holds. In building industry, some of the machinery ever breakdown due to improper utilizing by worker such as do non follow the direction. For case, machinery merely can back up for five 100 kgs of stuff but during worker utilizing that machinery and his carry out six 100 kgs of stuff. Finally, the machinery will breakdown. Once machinery dislocation, the work will be stop instantly and impact some work hold. Finally, because of machinery breakdown the whole undertaking will besides act upon hold.
18.104.22.168 Deficit of Equipment Partss
Harmonizing to Chan and Kumaraswamy ( 1996 ) identified the factor of deficit of equipment parts that contribute to causes of holds. After machinery dislocation, the proficient carry out the fix work for the dislocation of equipment. During the same clip, some portion of machinery none have stock in market. Because of no trim portion to mend the machinery, some of the plants confronting stop advancement instantly. Consequently, it will act upon whole undertaking to be hold.
2.3.7 Causes of Financial Related Delays
Delay payment to suppliers/subcontractor
Client ‘s fiscal troubles
Contractor ‘s fiscal troubles
Figure 2.9 Factors of Financial related holds
22.214.171.124 Client ‘s fiscal troubles
Harmonizing to Chan and Kumaraswamy ( 1996 ) identified the factors of client ‘s fiscal troubles as subscriber to causes of holds. During the building, client will confront some fiscal job arise from unforeseen exigencies or fiscal misdirection such as planetary fiscal crisis. Besides that, a client proposes a new development without borrow term loan or bridging loan from the bank. On the other manus, improper cost planning is a most serious job for those clients confronting in current hold undertaking. For case, during pre-construction phase a client do non be aftering cost decently and he will confronting a batch of job in building phase such as no adequate capital to pay contractor payment. Finally, because of contractor did non have payment to act upon whole undertaking hold.
126.96.36.199 Delay payment to suppliers/subcontractor
Harmonizing to Abd Majid and McCaffer ( 1998 ) mentioned the factors of unequal fund allotment and detain payment to subcontractor/suppliers as subscriber to causes of holds in building undertaking. Due to sub- contractor do non take their duty to done the work on clip. The contractor will detain the payment until they complete the occupation. But at the same clip, the sub-contractor garbage to work because of non yet receive payment. As a accordingly, the whole undertaking will be influence hold due to sub-contractor garbage to work.
188.8.131.52 Contractor ‘s fiscal troubles
Harmonizing to Ogunlana, et Al. ( 1996 ) studied the factors of contractor ‘s fiscal troubles holding high influence to causes of holds. Poor fiscal direction has been known as one of the factors why certain undertaking can non finish within contract period. Because of contractor deficiency of experience and could non pull off their capital decently. On the other manus, because of hold payment by client contractor non adequate money to cover up all sub-contractors and providers payment. Finally, the sub-contractor and providers refuse to work and provide stuff to the site and because of this factor the whole will act upon hold.
2.3.8 Causes of External Related Delays
Slow Site clearance
Figure 2.10 Factors of external related holds
184.108.40.206 Weather status
Odeh and Battaineh ( 2002 ) identified the factors of conditions status as subscribers to causes of holds. Long, et Al. ( 2004 ) mentioned factors weather status as factors of external related holds. AL-Momani ( 2000 ) studied the factor of conditions status as subscribers to causes of holds in building undertaking. During the building period, conditions is a factor to act upon the whole undertaking hold. It because weather status that interfere with planned activities. Some activities can treat but other can non. For cases, during the worker cast the land floor slab, but because of raining that peculiar work to be hold.
220.127.116.11 Slow site clearance
Harmonizing to Long, et Al. ( 2004 ) identified factors of slow site clearance as factors of external related holds. During Begin of building phase ; the duty party should hold to transport out their work for site clearance instantly. Without clearance the site building work can non treat. In some hold undertaking found that, the 3rd party did non take their duty to complete the site clearance within the period. Consequently, the whole undertaking hold because of site clearance works hold.
2.4 Effect of Delays
Harmonizing to Aibinu and Jagboro ( 2002 ) identified the effects of building holds on
Undertaking bringing in Nigerian building industry. They besides said that the six major effects of holds follow by rank which include clip overproduction, cost overproduction, difference, arbitration, judicial proceeding, and entire forsaking as shown in the Table 2.11
Effectss of Delay
Beginning: Aibinu and Jagboro ( 2002 )
Table 2.11 the consequence of holds
2.4.1 Time overproduction
Time overrun it average contractor could non transport out their work within contract period. In by and large, clip overproduction can be classs into two group which include excusable holds and non-excusable. Once the undertaking confronting clip overproduction, it will impact the advancement of work can non complete on clip. Besides that, the mistake party will take the duty to pay the relevant parties for amendss because of hold. For case, during the undertaking about completed, but at the same clip contractor because of exceptionally implement conditions can non finish the undertaking within contract period. In this state of affairs the contractor entitle to claim extension of clip. On the other manus, if that contractor can non finish the work within contract period due to his ain mistake. So the contractor no entitle to claim extension of clip and he need to pay liquated amendss. As stated in Persatuan Arkitek Malaysia signifier 2006 ( PAM signifier 2006 ) , which certain clauses saying about the amendss by employer due to this event. It stated that in clauses below.
18.104.22.168 Clause 22.1 Liquidated Damage and Certificate of Non-Completion
If the contractor fails to finish the plants by the Completion Date, and the designer is of the sentiment that the same ought moderately so to hold been completed, the designer shall publish a certification of Non-completion. Upon the issue of the certification of Non-Completion the contractor shall pay or let to the Employer a amount calculated at the rate stated in the Appendix as Liquidated Damages for the period from the Completion Date to the Date of Practical Completion. The Employer may retrieve such amount from the Performance Bond. The Employer shall inform the contractor in composing of such tax write-off or such debt due to from the contractor. The infliction of Liquated Damages by the Employer shall non be taken into history by the Architect in the issue of payment certifications and Final Certificate, and is non capable to the set-off processs under clause 30.4 and adjudication.
22.214.171.124 Clause 23.1 Submission of notice and specifics for extension of clip
If the Contractor is of the sentiment that the completion of the Work is or will be delayed beyond the completion Date by any of the Relevant Event stated in Clause 23.8, he may use for an extension of clip provided ever that
126.96.36.199 Clause 23.8 Relevant Events
Exceptionally implement conditions
2.4.2 Cost overproduction
During building phases, the client and contractor ever confronting of cost overproduction. Cost overrunA is an unexpectedA costA incurred in surplus of a budgeted sum, due toA cost underestimate. Cost overproduction is related to clip overrun, one time a undertaking can non be done in clip, it will besides impact the cost of undertaking over budget. Normally, cost overproduction ever go on due to contractor ain mistake such as inaccurate of cost estimation and he need to take duty to pay proprietor loss and disbursal. For case, a contractor because of improper cost planning due to be overproduction. Finally, the proprietor set of his loss and disbursal from the contractor interim payment.
In building industry, some of undertaking hold because of difference between contractual parties such as client, advisers, contractor and some relevant parties. Those differences because of client failure make payment to the contractor. Once dispute happen, the relevant parties will travel through with mediation. The go-between will do a determination to work out the job. But if one of the parties does non accept the determination made by go-between, the parties will appeal the determination with arbiter. If both parties accept the determination and the mistake parties will take duty to pay amendss for undertaking hold.
In current hold undertaking, some of the contractual parties do non accept the go-between determination and they appeal in arbitration. Arbitrator will besides do the determination to work out the job. But if one of the parties does non accept the determination once more made by Arbitrator, they still can appeal the determination in judicial proceeding.
In some hold undertaking, the relevant parties because of still do non accept with the arbiter determination. They are appeal the consequence in judicial proceeding which is dispute declaration in the tribunals. In judicial proceeding, the parties have a test either by a tribunal entirely or by jury. If those parties are non satisfied judgement once more, so they can appeal once more if they have any new grounds to proof their right. But one the parties accept with the judgement, the faulty of parties need take duty to pay the punishment
2.4.6 Entire forsaking
Entire forsaking it means the whole undertaking halt instantly because of client confronting fiscal troubles. Some of the current hold undertaking wholly abandoned because of client ‘s or contractor job which include clients bankruptcy, contractor run off, hapless selling and gross revenues schemes and so on. The consequence of undertaking wholly abandoned will impact many parties such as contractual parties which include contractor, adviser, sub-contractor, provider and some other relevant parties. Besides those parties, the buyers will besides endure in cost amendss due to project abandoned.
2.5 Methods of minimising building holds
Harmonizing to Nguyen, et Al. ( 2004 ) , “ studied the factors that can be applied as a method of minimizing of building holds as follows: competent undertaking director ; frequent advancement meeting ; accurate initial cost estimations ; accurate initial clip estimations ; presenting commands to the right/experience adviser and contractor. ” During pre-construction phase, a client should use a deepness cognition undertaking director to form a good undertaking squad member to come on the work. Besides that, the undertaking squad member should be ever discoursing with the job holding during the site advancement. On the other manus, contractor should be employs some employee with experience such as measure surveyor. So that, during the clip or cost estimation they can add on some unanticipated event to avoid the cost and clip overproduction. Furthermore, the developer should be engage some experience adviser and contractor.iot is because one time they confronting job, they can mention old undertaking to work out the job instantly. So, the undertaking can treat with swimmingly.
Harmonizing to Aibinu and Jagboro ( 2002 ) , “ identified two methods to minimise or if possible eliminate clip overrun were: acceleration of site activities, and eventuality allowance. ” During building phases, the contractor should transport out his duty to do certain the work advancement can finish in clip. If found that work advancement are non equal to the estimation agenda. The contractor may transport out with acceleration such as hire extra worker. Besides that, the client may let contractor standby some excess cost for unanticipated event such as accidents.
Harmonizing to Koushki, et Al. ( 2005 ) , “ revealed that the minimisation of clip holds and cost overproductions would necessitate: guarantee equal and available beginning of finance until project completion ; guarantee timely bringing of stuffs. ” During pre-construction, a client may fix a good hard currency flow within the contract period. Once the client does non enough money to cover up building cost, he can borrow a term loan or bridging loan from the bank to cover the cost until the whole undertaking completed. It will avoid undertaking hold due to client non adequate capital. Besides that, the contractors make certain that stuff are order with a dependable providers and can have it on clip.
Harmonizing to Odeh and Battaineh ( 2002 ) , “ recommended to better the state of affairs of building undertaking were require: enforce liquidated harm clauses and offering inducements for early completion ; developing human resources in the building industry through proper preparation and classifying of craftsman. ” During building phase, client does non desire to acquire any loss and disbursal and he enforce the liquidated amendss clauses. Once client happen out contractor due to his ain mistake, so client can claim for loss and disbursal. But at the same clip, if contractor completed the whole undertaking early than deadlines and he can claim for inducement. Besides that, human resource are playing of import function in the building. It is because due to this procedure to better their accomplishment such as make preparation for building direction and supervisor to increase of cognition. It can be making an advanced, antiphonal preparation bringing system to keep skill currency.
Based on literature reappraisal of method of minimize building holds from above, there are 10 method has been mentioned as shown in the Table 2.12.
Competent undertaking director
Frequent advancement meeting
Accurate initial cost estimations
Accurate initial clip estimations
Awarding commands to the right/experience adviser and contractor
Acceleration of site activities
Ensure adequate and available beginning of finance until undertaking completion
Ensure timely bringing of stuffs.
Enforce liquidated harm clauses and offering inducements for early completion
Developing human resources in the building industry through proper preparation and classifying of craftsman
Table 2.12 Method of minimising building hold
In this chapter, I have done studied the type, causes, effects and methods to minimise the hold in the building industry. There are three types to dwell undertaking hold which includes excusable, non-excusable, and coincident hold. Excusable hold is the 1 of the common type happen in those industries I have gone though by some diary. Excusable hold as define a hold that is due to an unforeseeable event beyond the contractor ‘s or the subcontractor ‘s control and can be classs in two group such as excusable with compensation and excusable without compensation. Excusable with compensation it mean if a client mistake influence the building to be hold, so the contractor entitle to claim extension of clip to go on concept until the whole undertaking coating. But if found out that because of contractor ain mistake, so he besides need take duty to complete their work and at the same clip he need to pay the liquidate amendss to the client.
Besides that, I have found eight group related to project hold which includes client, contractor, adviser, stuff, labour, equipment, fiscal and some external causes. Those groups because of some factors to act upon the building hold. The most common groups affect the undertaking hold are client, contractor, stuff and labor. During building period, stuff and labour are chief beginning for a undertaking. In a undertaking without any stuff and labour, the undertaking wholly could non come on. Besides stuff and labour, contractor besides a major beginning in a undertaking. Mostly project hold because of contractor due to miss of experience, improper planning and programming, hapless site direction, inaccurate clip and cost estimation and so on. Furthermore, some undertaking hold because of client intervention the undertaking during building period. Besides the intervention, some client besides because of frequent alteration order, suffer in fiscal troubles to act upon the building hold.
On the other manus, the consequence of undertaking hold in building industry that I have gone though from some diary. The consequence of building hold which include clip overproduction, cost overproduction, difference, arbitration, judicial proceeding, and entire forsaking. The clip and cost overrun the common consequence happen after a undertaking hold. Time and cost will impact some contractual parties enduring loss and disbursals. I besides found that some undertaking hold because of contractual parties could non settle difference job by utilizing an understanding, so they go through mediation to work out their job. But in some undertaking hold due to relevant party do non accept go-between determination and travel through arbitration to appeal the determination. After arbiter make a determination, in instance relevant party still do non accept the determination brand by arbitration and they can travel judicial proceeding for entreaty the determination once more. Once the party still do non accept the determination brand by jury. They merely appeal their determination with the new evident which to proof that they are right.
Other than that, the method of minimize undertaking hold I have done identified from diary. The Competent undertaking director method is most common utilizing to avoid undertaking hold. Some other common method which include to guarantee equal and available beginning of finance, multidisciplinary/competent undertaking squad, handiness of resources, committedness to undertakings, Adopting a new attack to contract award process by giving less weight to monetary values and more weight to the capablenesss and past public presentation of contractors, Adopting new attacks to undertaking such as Design-Build ( D/B ) and Construction Manager ( CM ) type of contract and so on. In building period, one time the contractual parties find out project hold such as clip overproduction. The parties must take action instantly to work out it and it will be avoid the hazard of undertaking hold.
As a decision, hold is a major job in building industry. It will impact relevant parties suffer loss and disbursal. To avoid it go on, do certain happen out the causes of hold and work out it instantly.