...com/locate/ijproman Causes and effects of delays in Malaysian construction industry Murali Sambasivan *, Yau Wen Soon Graduate School of Management, Universiti Putra Malaysia, 43400 UPM, Serdang Selangor, Malaysia Received 21 April 2006; received in revised form 27 June 2006; accepted 21 November 2006 Abstract The problem of delays in the construction industry is a global phenomenon and the construction industry in Malaysia is no exception. The main purpose of this study is to identify the delay factors and their impact (effect) on project completion. Earlier studies either considered the causes or the effects of project delays, separately. This study takes an integrated approach and attempts to analyze the impact of specific causes on specific effects. A questionnaire survey was conducted to solicit the causes and effects of delay from clients, consultants, and contractors. About 150 respondents participated in the survey. This study identified 10 most important causes of delay from a list of 28 different causes and 6 different effects of delay. Ten most important causes were: (1) contractor’s improper planning, (2) contractor’s poor site management, (3) inadequate contractor experience, (4) inadequate client’s finance and payments for completed work, (5) problems with subcontractors, (6) shortage in material, (7) labor supply, (8) equipment availability and failure, (9) lack of communication between parties, and (10) mistakes during the construction stage. Six main effects of delay were: (1) time overrun...
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...finalizing a contract price. A project's cash flow is basically the difference between the project's income and its expense. The difference between a company's total income and its total expense over a period of time is the company cash flow. 9.1 Contract Cash Flow At the project level, a project’s cash flow is the difference between the project’s expense and income. At the construction company level, the difference between company’s total expense and its total income over a period of time is the company’s cash flow. Cash flow = Cash in – Cash out = Income - Expense Forecasting cash flow is necessary for a construction company for the following reasons: To ensure that sufficient cash is available to meet the demands. It shows the contractor the maximum amount of cash required and when it will be required. Thus, the contractor can made arrangements to secure the required cash. It provides a reliable indicator to lending institutions that loans made can be repaid according to an agreed program. It ensures that cash resources are fully utilized to the benefit of the owner and investors in the company. Construction Management 182 Dr. Emad Elbeltagi The three main ingredients in determination of cash flow are: Expenses (cash out) which represents the aggregate of the payments which the contractor will make over a period of time for all resources used in the project such as labor, equipment, material, and subcontractors. Income (cash in) that represents the receipts a contractor...
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...Variation is a common circumstances in construction projects. Variation always occur in construction project and it is carry an important right from the inception until the completion of a project (Halwatura and Ranasinghe, 2013). According to Aftab, Ismail and Mohamad Faris (2014) variation as in the contract get involved with the modification of the original scope of works. The sources of variation can come from many factors. Variation can cause conflict and disapproval among the parties involved in construction projects (Aftab, Ismail and Mohamad Faris, 2014). In addition, it is very necessary to control variation in construction project. A clause is provided in the most standard forms of a contract which the client or his representative...
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...I-95 Express Lane Project The I-95 Express Lane Project has a negative and positive effect on the surrounding area. The express lane project is nearly a billion dollar endeavor designed to ease traffic congestion and decrease travel times. The project has been broken down into four segments and covers an area of approximately 29 miles from Garrisonville road in Stafford County to Edsall road in Fairfax county Va. This expansion of the current High Occupancy Vehicle lanes (HOV) are designed to add capacity and manage the commute time of travelers. With the positive results that this project is proposed to bring, there are some potential negative draw backs. From my experiences on I-95, the journey from Garrisonville road to Edsall road can easily turn into stop and go bumper to bumper traffic. With I-95working as the major transportation avenue that it is, an accident, lane closures, and massive amounts of vehicular traffic makes commuters adjust their daily routine. A normal day that can average 40 minutes can easily turn into an hour in a half or more to travel the same distance. The construction is an ongoing process, continuing around the clock and does not guarantee smooth flow during hours that normally see low volumes of traffic. Jefferson Davis Highway also called route one and parallels I-95, has become a viable option to escape the gridlock. With the extra traffic that route one had to handle, it caused those who live on that stretch of road to adjust their activities...
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...Does IT in the AEC industry create disruptions rendering IT ineffective? Information technology in the AEC industry has presented positive effects such as improved education, increased competitiveness and heightened training solutions. Conversely, information technology has also introduced negative effects, for instance, file incompatibilities, outages and the improper use of technology by staff. This essay explores the ways information technology creates disruptions in the AEC industry and whether or not that is reason to deem them ineffective. This essay also asserts that the introduction of new information technologies in the AEC industry, such as Geographic Information System (GIS), Building Information Modelling (BIM), metres and mathematical models do cause temporary disturbances, but that does not make them worthless because their positives outweigh their negatives. Information technology bestows both positive and negative effects, but information technology has the capacity to reverse negative effects. The operation of information technology requires costly education, and information technology can provide education. For example, a BMS system will relay information that will help educate people on how to better manage buildings. In the AEC industry, GIS technology has been implemented to also inform and educate people. Borce Dimeski during his presentation enunciated “GIS can be used to produce a variety of maps that can relay information involving demographics,...
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...PROJ 595 | Table of Contents Introduction 2 Scope 2 Risk Identification 3 Negative Risk Analysis 4 Positive Risk Analysis 10 Decision and Fault Tree Introduction 17 Decision Tree 18 Decision Tree Discussion 18 Fault Tree 19 Fault Tree Discussion 20 Conclusion 20 Works Cited 22 Introduction I will be conducting a risk management plan for the construction of a large scale Ashley furniture store. This plan will identify both positive and negative risks, and will include their probability, impact, risk ranking number and color code and proactive ad reactive response plans. The process of how these risks were identified will be discussed as well as how they were ranked. With any large scale commercial project comes many risks. There can also be multiple strategies to mitigate or avoid certain risks for example and these plans will also be discussed in individual detail. Scope The project will consist of the construction of a 100k sq. ft. facility to house a new Ashley Furniture Store. The facility will be laid out into the following departments; master bedrooms, kids bedrooms, dining rooms, living rooms, entertainment rooms, kitchens, bedding, and foyer with a designated amount of space for each. Each section will have up to five ceiling lights and five receptacles. Two male, two female and two handicap restrooms will be located in the rear western corner, the front door will face south, and the storage area will be adjacent to...
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...For CGN, after signing the agreement, the biggest challenge is the high possibility of delays and cost overruns during the construction stage caused by technology challenges and risks from its partner EDF. As we mentioned before, The Hinkley Point C and Sizewell C plants will be based on EPR reactor technology, while the new plant at Bradwell will use CGN’s Hualong One Creator design. The EPR and Hualong one design are Third Generation reactors and they are designed to be safer, more powerful and more efficient than earlier versions. It's also meant to be easier to build. But so far the reality has been the opposite. Both of them are Third Generation reactors which are new technologies and do not have a successful example across the world. Wherever the new EPR is being installed - in Finland, France and China - the projects are beset by delays and massive increases in price. The first two EPR plants in Finland and France are both facing costly construction delays (to at least 2018). Other two units in China were to start operation in 2014 and 2015, but are now expected to come online in 2017. And delay means losing money and additional investment. For CGN, this is the first time to build nuclear power plant in a developed country. Whether this project can be finished successfully has a significant impact on its subsequent plants. Delays and cost overruns will have a negative effect for CGN to expand businesses to other countries. The resignation of such an important figure...
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...Risk Management Plan | Baylor University Dormitory Project | | Presented by: | Approved by: | Version 3 | 10/16/2012 | | Table of Contents Table of Contents………………………………………………………………………………………………………2 Introduction…………………………………………………………………………………………………………….3 Project Description and Objectives…………………………………………………………………………………….3 Objectives of the Risk Process………………………………………………………………………………………3-4 Project Sizing…………………………………………………………………………………………………………..4 Stakeholders and Analysis……………………………………………………………………………………………..5 The Risk Process……………………………………………………………………………………………………….6 Risk Breakdown Structure……………………………………………………………………………………………..7 Probability-Impact Matrix……………………………………………………………………………………………...8 BUD Project Risk Register………………………………………………………………………………………....9-11 Summary Risk Report…………………………………………………………….……………………………….12-15 Conclusions and Recommendations………............................................................................................................15-16 References…………………………………………………………………………………………………………….16 Introduction This document is the risk management plan for the Baylor University Dormitory (BUD) Project. The defining risk management process contained herein shall be employed throughout the life of this project. As the team leader and the primary representative of Quantum Electric, the project manager is responsible for reviewing and maintaining this risk management plan throughout the course of this project. The accountability...
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...Willis was the Vice President of marketing and sales for International Satellite Images(ISI), an aerospace company pioneers in the high resolution space cameras. The ISI team had been preparing a proposal for a Japanese government contractor for a commitment of a minimum imagery purchase for five years. But in a recent meeting, it had been revealed that a technical snag might delay the launch of satellite for a minimum of one year. Fred Bellard, the President of ISI, told Jim not to change the already published official date of launch, though Jim protested the use of incorrect date as it was clearly unethical. Fred’s rationale was that disclosure would have a negative effect on contract negotiations and might result in severe financial repercussions and suggested that it is a standard industry practice to withhold negative information. Jim believed that not disclosing the information might be unethical and affect his own reputation, and was wondering what to do. And also he was concerned that if a new launch was announced, it would delay signing a contract with the Japanese customer. Since the construction and ongoing operation of each programmes were financed by venture capitalists who relied heavily on advance contract acquisition, any contract termination could end up the satellite company in bankruptcy. Moreover currently all the competitors had announced a launch date within six months of the ISI published launch date. Each company had to revise it once or twice due...
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...DENVER INTERNATIONAL AIRPORT AUTOMATED BAGGAGE HANDLING SYSTEM- PROJECT FAILURE ANALYSIS MSc Project Management Abstract The purpose of this study is to critically analyse the Denver International Airport Baggage Handling System project in order to detail the underlying reasons for the perceived failures in the project and to provide recommendations on how effective project management could have helped to avoid the problems the project encountered. A thorough analysis of the activities of the project from nature of project, contracting, design, construction, testing, stakeholder management, risk management, project controls, as well as the overall project leadership was carried out and failure causal factors were identified. A recommendation was also made on how the project should have been managed to ensure project success. The analysis viewed the project from both project management and project perspectives. Student: @00380661 25-Feb-14 Number of words: 2558 Table of Contents 1. 1.1 2. 2.1 Introduction ................................................................................................................. 2 Project Failure .......................................................................................................... 2 Discussion .................................................................................................................... 3 Failure Modes of the Project .............................................
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...com/locate/ijproman Analysing factors affecting delays in Indian construction projects Hemanta Doloi a,⁎, Anil Sawhney b , K.C. Iyer b , Sameer Rentala a b c c Faculty of Architecture, Building and Planning, The University of Melbourne, Victoria 3010, Australia Dept. of Civil Engineering, Indian Institute of Technology, Delhi, Hauz Khas, New Delhi 110016, India Construction Technology & Management, Dept. of Civil Engineering, Indian Institute of Technology, Delhi, Hauz Khas, New Delhi 110016, India Received 5 January 2011; received in revised form 12 October 2011; accepted 20 October 2011 Abstract Construction projects in India are experiencing widespread delays. Due to a dramatic shift in the capacity and volume of the Indian construction sector over the last decade, the need of a systematic analysis of the reasons of delays and developing a clear understanding among the industry professionals are highly crucial. Using a selected set of 45 attributes, this research first identified the key factors impacting delay in Indian construction industry and then established the relationship between the critical attributes for developing prediction models for assessing the impacts of these factors on delay. A questionnaire and personal interviews have formed the basis of this research. Factor analysis and regression modelling were used to examine the significance of the delay factors. From the factor analysis, most critical factors of construction delay were identified as (1) lack of commitment;...
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...MANAGING HUMAN RESOURCE AT CONSTRUCTIONS INC. Aymun Mussadaq, Ifrah Tariq, Michelle Mary Gomez, Waasay Ahmed, Zunaira Tahir BBA-2K10-A NUST Business School On the first day of 2014, Kashif Rehman, GM Procurement and senior Project Coordinator of Constructions Inc., was contemplating why the deadlines have still not been met of major projects that he is supervising. He is supposed to have a meeting, in which he has to update his superiors with the progress of the projects and as to why the projects are being delayed. A major project of the company that was due in 2012 is still incomplete and will still take at least 5 years for completion. The project director and Kashif, being the supervisor of this project, are answerable for this delay. According to Kashif, one of the reasons behind this delay is the lack of productivity in employees which could be caused by a number of reasons which he needs to identify. He interviewed a number of managers and employees to come up with a decision and solution in order to improve employee performance and increase employee satisfaction. A decision needs to be made in this regard as it is very vital for the company because it will directly affect the employee’s productivity which in turn will affect company performance. BACKGROUND Constructions Inc. Constructions Inc., a prominent real estate firm based in Pakistan, is a joint venture of a prominent Saudi company. Constructions Inc. has to its credit prestigious commercial and residential...
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...thirty years old and is in need of a lot of reconstruction to make it a safe environment and something that will ensure disease protection to all the animals at the shelter. PROJECT MANAGER: Michael Pastore DATE: September 29, 2011 Risk Identification I have made a list of all areas that might cause project delays or failure with their respective outcomes (see numerical list below). The five risks I have chosen as key risks are bolded below and appear in the Risk Assessment Table. 1. Delay in getting appropriate permits approved. Department Form # AW-1 needs approved, IACUC inspection for animal safety and welfare needed as well. 2. Delay in caging material and other needed materials for project completion. This is lack of needed items to re-build shelter cages inside and outside. 3. Weather issues causing delay in outside work. This could cause construction delays on the roof and the outside fencing area. 4. Cost risk-over budget. This would include running out of money to fund the entire project if more money is needed. This is a non-profit organization and the amount of funding is being donated to re-design the shelter. 5. Equipment delay. Equipment needed to complete the project is delayed. Un-availability of equipment. Equipment availability is important as well. 6. Communication breakdown. This is a big risk that must be brought up because in the shelter environment there is a key component to keep disease at a minimum. The set-up of...
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...list of what will cause the project to have delays or have failures within the course of the project. There are listed below in bold writing in order to keep track of the risk that will cause a delay to the project. 1.) Delay of any additional supplies to build the store- This will put a big delay on the timing of the building being completed on time. 2.) Weather- Although we live in a state that does not rain so much, we are entering the time in which we will experience heavy rain for few days. 3.) Delay on the License Agreements- We may not being able to have the license in order to continue the construction of the project as well as the installation of the appliances. 4.) Staff- We is a company with 20 + workers, however having men sick or on leave will cause a delay on meeting the deadlines. Causing more men to work overtime in order to complete the deadlines of no more than two days. 5.) Electronic failure- If the electronic, such as the installation of the lights, be a delay if they are not installing proper. 6.) Software input- If the software for the registers does not run proper or it is the wrong update. 7.) Plumbing failure- If the plumbing for the bathroom and the water for the coffee shop are not put on right nor have a broken pile can cause a two day delay. 8.) Window installation – The glass windows must be delivered and be installing the same day. Not install will cause a one day delay, leaving the store sign...
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...Construction Project Controls: Cost, Schedule, and Change Management UP-201 September 2004 CURT Owner Member Companies Abbott Laboratories Air Products & Chemicals, Inc. Ameren American Electric Power Baxter Healthcare Corporation Boeing Company Caterpillar Inc. Citigroup ConocoPhillips DTE Energy The Dow Chemical Company E.I. Dupont De Nemours & Company Eastman Kodak Company Ernst & Young ExxonMobil Chemical Company FMC Corporation FirstEnergy Corporation General Electric Company General Mills, Inc. General Motors Corporation HCA Healthcare Corporation Hercules, Inc. Honda of America Mfg., Inc. IBM Intel Corporation Johnson & Johnson Kansas City Power & Light Company The McGraw-Hill Companies MeadWestvaco Corporation Merck & Company, Inc. Owens Corning PSEG Power, LLC Pfizer, Inc. The Procter & Gamble Company Rohm and Haas Shell Global Solutions (U.S.), Inc. Southern Companies Sunoco, Inc. TECO Tampa Electric Company Toyota Motor Mfg. North America Tyco International U.S. Army Corps Of Engineers U.S. General Services Administration The University Of Cincinnati Associate Member Companies Alberici Group, Inc. BE&K Bechtel Egizii Electric, Inc. Fluor Corporation Hunt Construction Group Jacobs Engineering Group Rudolph/Libbe Companies The Shaw Group, Inc. Tetra Tech FW Inc. Turner Construction Company Zachry Construction Corporation Association Associate Members Associated Builders and Contractors (ABC) Associated General Contractors of America (AGC) Mechanical Contractors...
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