fahmi dissertation a

Muhammath Fahmi 13/S/SL/BSc/01 SHU Ref: 23043846

Table of Contents

1. Introduction..............................................................................................................................1

1.1. Introduction...................................................................................................................1

1.2. Aims & Objectives........................................................................................................2

1.3. Justification of Methodology.........................................................................................2

1.4. Scope & limitations.......................................................................................................3

1.5. Questionnaire design.....................................................................................................3

2. Literature Review..............................................................................................................4

2.1. Construction Delay...........................................................................................................4

2.1.1. Definition of construction delay................................................................................4

2.1.2. Types of construction delay.......................................................................................5

2.1.2.1.Critical or Non-Critical Delays.................................................................................6

2.1.2.2.Excusable or Non-Excusable Delays........................................................................6

2.1.2.3.Concurrent or Non-Concurrent Delays.....................................................................6

2.1.2.4.Compensable or Non-Compensable Delays.............................................................7

2.1.3. Causes for construction delay....................................................................................7

2.2. Software used by contractors............................................................................................9

2.3. Project management software used in construction industry..........................................10

2.4. Application of project management software for time management..............................13

2.4.1. Software used in construction industry for time management................................13

2.4.2. Time management for construction projects...........................................................13

2.5. Control measures to minimize construction delay..........................................................15

3. Conclusion..............................................................................................................................16

4. References..............................................................................................................................17

Dissertation-AA Study of Using Project Management Software to Minimize Contractor’s Delay Page i


List of Figures

Figure-1: Types of delay..................................................................................................................5

Dissertation-AA Study of Using Project Management Software to Minimize Contractor’s Delay Page ii


1. Introduction

1.1. Introduction

Construction industry plays a major role on development and the economy of a country. It is

growing very fast today with the application of latest technologies available in the market

especially in Sri Lanka it is on the peak after the end of the internal war which led the country to

suffer for more than two decades. There are several types of construction companies working

throughout the world today. These companies differ from other companies according to their

size, capital investment, resources, type of work carried out etc. The main aim of the

construction companies today is to gain profit while some companies are targeting to gain

reputation in the industry for future benefits.

Today, there are many construction companies operating in the country. These companies have

different ranking given by ICTAD according to the criteria set by ICTAD. To compete in the

market and to gain projects, they try to do whatever the client’s requirements. The client always

set target and give pressure to contractors to finish their projects on time, within the estimated

budget and the required quality. Even the contractors work hard to carry out the requirements of

the client, most of the time they fail to complete the project on time which leads to delay the

project and creates more problems to the client as well as the contractor.

There are several causes for these delays and effects of these delays are severe. This research

will identify the causes for contractor’s delay through primary and secondary data and also will

suggest possible control measures or methods to minimize these delays. Further, it will identify

the software used by the contractors and the application of this software for time management.

Dissertation-AA Study of Using Project Management Software to Minimize Contractor’s Delay Page 1


1.2. Aims & Objectives

Aim(s)

To identify the causes for the delays in construction projects

To identify the control measures to minimize delay

Objective(s)

To analyze the causes for the delay by contractors

To identify the software used by contractors

To analyze the application of project management software for time management

To analyze control measures to minimize construction delay

1.3. Justification of Methodology

Stage 1: Literature review

As the literature review is an important part of the research, to achieve the aims and objectives

this research will review relevant data. These data will be obtained from books, journal papers,

research reports and relevant websites as well. It will cover facts about the causes for

construction delay, the software used by contractors, application of project management software

for time management and the control measures or methods to minimize these delay.

Stage 2: Main Study

Primary data collection as the main study of this research, 10 to 15 number of grade C1

contractors operating in Sri Lanka will be selected from the ICTAD list of grade C1 contractors

to obtain primary data. A questionnaire will be designed and sent to the construction

professionals working for these contractors. These professionals will be requested to answer

some simple questions on the questionnaire which cover the area of objectives outlined above.



Stage 3: Conclusion and Recommendation

This stage will include the compilation of contents of the research and conclusion with the

findings from primary and secondary data obtained.

1.4. Scope & limitations

This research will focus on grade C1 contractors operating in Sri Lanka only. Maximum number

of 15 C1 contractors will be selected for primary data collection.

1.5. Questionnaire design

The questionnaire will be designed to cover the objectives of the research. It will be aimed to

understand the construction delays in Sri Lanka and methods to minimize these delays including

the use of project management software tools.



2. Literature Review

2.1. Construction Delay

2.1.1. Definition of construction delay

Construction delay can be defined as the time overrun beyond the date mentioned on the contract

or it can also be defined as time overrun beyond the date that the parties involved agreed to hand

over the project.

Chidambaram R., Narayanan SP., Arazi BI., (2012, p. 38) states that “In construction, delay

could be defined as the time overrun either beyond completion date specified in a contract, or

beyond the date that the parties agreed upon for the delivery of a project. It is a project slipping

over its planned schedule and this is a common problem in construction projects. To the owner,

delay means loss of revenue through on availability of production facilities and rentable space or

a dependence on present facilities. In some cases, delay causes higher overhead costs to the

contractor because of longer work period, higher material cost through inflation, and due to labor

cost increases. Completing projects on time is an indicator of efficiency, but the construction

process is subject to many variables and unpredictable factors, which result from many sources.”

It is normal practice that the construction projects get delay but, it is a challenge for construction

companies to finish the projects within the given time, with minimized cost and to meet the

required quality. The delay occurs due to various reasons, not only by the contractors but also it

occurs by the client/ consultant, supplier, subcontractors, government rules and regulations

related to construction activities, act of god etc. This impacts on the cost of the particular project

and it is a headache for the client, in other words it is cost overrun. To overcome this issue, most

of the leading construction companies use project management software which minimizes such

delay. If the companies utilizes this software and minimizes the delay, then the particular

company is capable of completing construction project on time. In other words, it is an indicator

of efficient contractor.



2.1.2. Types of construction delay

Construction delay can be classified into 4 general types as follows.

Critical or Non-Critical

Excusable or Non-Excusable

Concurrent or Non-Concurrent

Compensable or Non-Compensable

The figure below shows the types of construction delay clearly.

Figure-1: Types of delay



2.1.2.1.Critical or Non-Critical Delays

Critical delay is referred as the delay that affects the project completion time and the

Non-Critical delay is referred as the delay which does not affect the project completion

time. If a single activity is delayed, then the project completion date will be delayed.

2.1.2.2.Excusable or Non-Excusable Delays

Excusable delay is referred as the delay that is not within the control of the contractor or

sub-contractor. It is due to an unforeseeable event. Non-Excusable delay is the delay that

is within the contractor’s or sub-contractor’s control. All delays fall in these two

categories. “An excusable delay, in general, is a delay that is due to an unforeseeable

event beyond the Contractor’s or the Subcontractor’s control. Non excusable delays are

events that are within the Contractor’s control or that are foreseeable” (Trauner,

Theodore J. 2009).

2.1.2.3.Concurrent or Non-Concurrent Delays

Concurrent delay is occurred when both client and the contractor are involved in the

delay time. This is a non-compensable delay and neither party is entitled to recover

damages. In this scenario, there are possibilities for extension of time. The clients always

argue that the contractor is responsible for concurrent delays as a reason for getting

extension of time without additional compensation. But, the contractors always argue that

client is responsible for concurrent delay as a reason why liquidated damages should not

be assessed for its delays.



2.1.2.4.Compensable or Non-Compensable Delays

Compensable delay is referred as the delay where the contractor is entitled for extension

of time and compensation. Only excusable delay can be considered as compensable

delay. Non-compensable delay means the contractor is not entitled to any additional

compensation even an excusable delay has occurred. In other words, non-excusable delay

is not entitled for either extension of time or additional compensation.

2.1.3. Causes for construction delay

Construction process gets delay due to various reasons. As mentioned before, delay can be

Excusable or Non-Excusable. Excusable delay can occur due to the following causes.

Labor strike

Flood

Fire

Payment delay

Poor design

Unusual severe weather conditions

Different site conditions

Errors in the plan and specification

Changes by the owner or variations

Intervention of outside bodies

Lack of actions by government bodies

Likewise, Non-Excusable delay can occur due to the following causes.

Late performance of subcontractors

Untimely performance of suppliers

Faulty workmanship of contractor or subcontractor

Labor strike due to unfair labor practice by contractors



Alwi, Sugiharto and Hampson, Keith (2003, p. 2) states that “projects can be delayed for a large

number of reasons and usually impact on cost and time. An investigation into the causes of

delays on 130 public projects in Jordan was conducted by Al-Momani (2000). Projects

investigated in this study included residential, office and administration building, school

buildings, medical centers and communication facilities. Results of this study indicated the main

causes of delay are poor design, user change, weather, site condition, late deliveries, economic

conditions and increases in quantity.”

The design part is very important and crucial and the design team should be qualified

professionals. A good design is very important for any type of construction. It decides the cost

and the budget as well as the time required to complete the project. It also decides some

important factors involved in construction projects such as construction method, plants and

materials, subcontractors etc. Poor design will lead to frequent change by the client, thus it will

impact on the cost to the client and will also lead to delay the project. The contractor may also

lose his reputation in the industry.

Weather is another factor which leads projects get delay. Even though this is an excusable delay,

it will impact on the cost to the client as well as the contractor. Bad weather condition will

impact on the contractor’s profitability and this will imply on subcontractor’s profitability as

well. Poor site condition also increases the duration of the project and it will increase the cost as

well. Sometimes the site will be with weak soil type for example, filling the sea for construction

activities like Palm Jumaira in Dubai or Perl in Qatar; the sea or wet land should be filled by

kind of rubble and proper construction method like piling and raft foundation should be applied.

This increases the time and the cost to the contractor and client as well.

Suppliers and the delivery of materials also play a major role to complete the projects on time.

Late delivery of materials and the suppliers who are not willing to take responsibility of quick

delivery of the materials leads to delay of the projects as well as increase on the cost as well.

Sometimes the materials purchased outside the country also delay the projects unless the

company maintains the right procurement system. Increase in the quantity of items will also

increase delivery time and it will increase the duration of the project.



2.2. Software used by contractors

Today, there are lot of software available in the market. Day by day new software introduced and

some older software replaced by new ones. Most of the companies including construction

companies are adopting to these software to compete in the market. After a few decades, people

working in the industry may lose their jobs or they may have to change their profession since

most of the work can be done by the use of these software.

There are several software used by construction industry today. The followings can be

considered as software related to construction industry.

Autodesk

Autodesk integrated design creation and building information modeling (BIM) helps

professionals to optimize resources, to control the cost and to minimize the risk of errors.

Primavera

The latest version of primavera (P6) provides project portfolio management solution for

the construction industry. This software helps construction industry in optimizing the

resources, reducing the cost, meeting delivery dates and making better decision by the

management.

AutoCAD

AutoCAD is a computer aided drafting software program which enables users to create 2

and 3 dimensional drawings.

MS Project

This software generates critical path schedules, critical chain and event chain

methodology. Schedules can be resource leveled and chains are envisaged in Gantt chart.

Calendars, views, tables, filters and fields are stored in global. This software is used to

manage estimation, planning, scheduling, cost control and budget management, resource

allocation, communication, decision making and quality management.



Timberline

This software reduces the obstacles between accounting and business operations. It

tracks the facts from payroll and job costing, to receivable and cash flow.

Master Builder

This is a construction-specific accounting application which performs all of the

construction accounting requirements. This software can eliminate inaccuracy in

accounting, improve cash flow and reduce penalties or late fees.

Bentley BIM

Building Information Modeling (BIM) is the way of approaching the design and

documentation of building projects. It considers the entire lifecycle of the building and

includes details about the building and its lifecycle and modeling.

Autodesk Revit

This software can be used as a powerful tool between different disciplines in the building

design field. This allows users to manipulate the whole building 3D shapes. The user can

also create accurate families from furniture to lighting fixtures.

2.3. Project management software used in construction industry

Construction industry use the above software for various purposes but, project management

software such as MS Project and Primavera play a major role in utilizing time and resources of a

project. The software assist the users to plan, schedule, monitor and to control the project. Most

of the leading construction companies in the world today use one of these software to utilize time

and resources of their projects, in other words to finish the project on time within the budget.

Primavera

Primavera is a project management software tool which is designed to manage a complex

project. It is a software tool for anyone involved in planning, monitoring and reporting on

the progress of a big task. It is not only used by construction or engineering related



industries but also used by the industry related to aerospace, transport, security and many

other industries as well. The software also enables construction professionals to access to

all the project information they require very easily.

The latest version of primavera (P6) provides project portfolio management solution for

the construction industry. This software helps construction industry in optimizing the

resources, reducing the cost, meeting delivery dates and making better decision by the

management. There are many advantages for construction industry by using this

software. Some of these advantages are as follows.

Reduces the risk of schedule overrun

Reduces the risk of cost overrun

Helps easily plan and manage project activities

Optimizes management of all resources

Gives clear visibility of what is going on in the project

Allows quick and easy forecasting of WBSs (Work breakdown Structure),

activities or projects

Allows to keep track of progress and to view past period performance for

reporting purposes

Helps to breakdown projects and activities structure

Allows easy collaboration between all project users

MS Project

MS Project is a software application which provides tools to manage projects. It allows

users to understand and control project schedule and finance. It also helps users to

communicate and present project information, organize work and people to make sure

that projects are completed on schedule.

MS Project also generates critical path schedules, critical chain and event chain

methodology. Schedules can be resource leveled and chains are envisaged in Gantt chart.

Calendars, views, tables, filters and fields are stored in global. This software is used to

manage estimation, planning, scheduling, cost control and budget management, resource

allocation, communication, decision making and quality management. Like Primavera,



there are many advantages for construction industry by using this software. Some of

these advantages are as follows.

Offers communication tools which can help teams to discuss issues in real time

Document sharing tool of this software allows the users to edit, update the status

of reports and create systems that allow transparency and communication

Includes tools that can assist in managing project costs

Allows users to manage risks, forecasting and budgets

With flexible report formats and the ability to quickly access needed data, the

software can keep tasks on schedule

It is simple to use and easy to install and allows for quick ramp-up-times



2.4. Application of project management software for time management

2.4.1. Software used in construction industry for time management

Primavera and MS Project plays a huge role for project management in construction industry.

Primavera systems have been developing their project management system package for

construction since more than 3 decades. Today, it has become the leading provider of the project

portfolio management solution for construction industry. Primavera is more suitable for project

oriented and matured companies and it is mostly used to handle large and complex projects.

Since the release of MS Project in 1984, MS Project has always been popular tool among project

managers, but it has never become the number one project management tool. This is an evident

in the construction industry as it was never entirely aligned with industry’s special processes and

procedures.

2.4.2. Time management for construction projects

Time is an important factor to be considered to complete the projects within the schedule

duration of the projects. Allocation of resources or resource leveling also plays a major role to

manage time. Improper allocation of resources and management of time will lead to delay or

extend the project duration. This will create problems for contractors and as well as the client

and will lead to cost overrun and time overrun. Utilization of a resource to the maximum time

available against that particular resource will eliminate idle time of the resource and thus will

minimize the wastage of time. So, in order to complete the projects on time it is essential to

utilize time and resources.

PMBOK Guide, 3rd edition states that “Project Time Management includes the process required

to accomplish timely completion of the project. Project Time Management processes include the

following:”

Activity Definition

Process of identifying the specific schedule activity to be carried out



Activity Sequencing

Process of identifying and documenting dependencies among schedule activity

Activity Resource Estimating

Process of estimating the type and quantities of resources required to carry out each

schedule activity

Activity Duration Estimating

Process of estimating the number of work duration that will be required to complete

individual schedule activity

Schedule Development

Process of analyzing activity sequences, duration, resources required and schedule

constraints to create the project schedule

Schedule Control

Process of controlling modification to the project schedule



2.5. Control measures to minimize construction delay

Delay is the most critical part of a project which creates negative impacts on the project as well

as the parties involved in the project. These impacts lead to increase in the cost, poor quality end

product, court cases etc. There are several effects by the delay caused in the project such as cost

overrun, time overrun, dispute, arbitration, litigation and sometimes abandonment of the project.

The following methods can be considered as methods to minimize construction delay.

Conduct frequent progress meeting

Use up-to-date technology utilization

Maintain adequate funding throughout the project duration

Use proper construction equipment and materials

Maintain proper procurement system

Use comprehensive contract documentation

Maintain frequent coordination between the parties

Use proper construction methods

Use proper project planning and scheduling

Maintain proper site management and supervision

Maintain collaborative working in construction

Maintain effective strategic planning

Use past experience

Make use of available resources

Use of top management support

Keep competent project team

Prepare compete and proper design at the right time

Maintain clear information and communication channels

Award bids to the right contractor



3. Conclusion

Construction delay is a common problem in any type of construction project but, the

effects are severe and sometimes will lead to close down of the particular company.

Whatever the effects of construction are presence the causes should be identified before

going into analyzing the effects. Then only the delays can be minimized. The contractor

should always be aware of the schedule and should be keen on completing each activity

within the time set for that particular activity. The contractor should have professionally

and technically qualified staff at the site as well as in the office. In other words, the

contractor should be a professional contractor to minimize delays and to complete the

project within the given time.



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