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RISK ASSESSMENT OF TIME AND COST OVERRUN FACTORS
THROUGHOUT CONSTRUCTION PROJECT LIFECYCLE
ISMAAINI BINTI ISMAIL
A thesis submitted in
fulfillment of the requirement for the award of the
Degree of Master of Civil Engineering
Faculty of Civil and Environmental Engineering
Universiti Tun Hussein Onn Malaysia
OCTOBER 2014
v
ABSTRACT
Construction industry is a very important industry for the economic development of
the country. However, this industry has been facing serious problems i.e. failure to
complete projects within stipulated time and cost. Hence, the aim of this study is to
assess the risk of various factors that cause time and cost overruns throughout the life
cycle of construction projects in Malaysia. A total of 35 factors were identified from
previous studies. The data collections were carried out using structured questionnaire
survey. A pilot study was conducted to determine the level of occurrence and
severity of each factor with respect to various phases of project life cycle. Then, the
actual survey was conducted in two rounds of Delphi. Delphi round 1 was conducted
to assess the probability of occurrence and level of severity of each factor in the life
cycle phases. Based on the survey, construction phase was found as the phase that
had significantly contributed to time and cost overrun compared to other phases.
Then, Delphi round 2 was conducted to seek agreeability from respondents regarding
the results obtained from the Delphi round 1. The result showed that majority of
respondents had agreed with the results from Delphi round 1. This study found that
there were 12 high risk factors on time overrun, namely: poor site management and
supervision, incompetent subcontractors, inadequate planning and scheduling,
frequent design changes, mistakes and errors in design, change in the scope of the
project, delay preparation and approval of drawings, lack of coordination between
parties, slow information flow between parties, lack of communication between
parties, shortages of materials, and late delivery of materials and equipment. While,
there were 9 high risk factors on cost overrun, namely: poor site management and
supervision, incompetent subcontractors, schedule delay, inaccurate time and cost
estimates, mistakes during construction, incomplete design at the time of tender,
poor design and delays in design, contractual claims, such as, extension of time with
cost claims, and poor financial control on site.
vi
ABSTRAK
Industri pembinaan merupakan industri yang sangat penting untuk pembangunan
ekonomi negara. Walau bagaimanapun, industri ini telah menghadapi masalah yang
serius iaitu kegagalan dalam menyiapkan projek dalam masa dan kos yang
ditetapkan. Oleh itu, tujuan kajian ini dijalankan adalah untuk menilai tahap risiko
pelbagai faktor yang menyebabkan lebihan masa dan kos di sepanjang kitaran hayat
projek pembinaan di Malaysia. Sebanyak 35 faktor telah dikenal pasti daripada
kajian-kajian terdahulu. Pengumpulan data dilakukan dengan menggunakan soal
selidik berstruktur. Kajian rintis telah dijalankan untuk menentukan kemungkinan
berlakunya faktor-faktor tersebut dan tahap keterukan setiap faktor dalam setiap fasa
kitaran hayat projek. Kemudian, kajian sebenar dijalankan melalui dua pusingan
Delphi. Delphi pusingan pertama telah dijalankan untuk menilai kemungkinan
berlakunya faktor tersebut dan tahap keterukan setiap faktor yang berlaku dalam fasa
kitaran hayat projek. Berdasarkan soal selidik, fasa pembinaan didapati sebagai fasa
penting yang menyumbang kepada lebihan masa dan kos berbanding fasa lain.
Kemudian, Delphi pusingan kedua telah dijalankan untuk mendapatkan persetujuan
dari responden mengenai keputusan yang diperoleh daripada Delphi pusingan
pertama. Ia dapat disimpulkan bahawa majoriti responden bersetuju dengan hasil
daripada Delphi pusingan pertama. Hasil kajian ini mendapati bahawa terdapat 12
faktor berisiko tinggi dalam menyebabkan lebihan masa iaitu kelemahan pengurusan
dan pengawalan tapak, subkontraktor yang tidak berkelayakan, perancangan dan
penjadualan yang tidak mencukupi, kekerapan perubahan reka bentuk, kesilapan
dalam reka bentuk, perubahan skop projek, kelewatan penyediaan dan pengesahan
lukisan, kekurangan koordinasi antara pihak, aliran maklumat perlahan antara
pihak, kekurangan komunikasi antara pihak, bekalan bahan, kelewatan
penghantaran bahan dan peralatan. Manakala, 9 faktor yang berisiko tinggi yang
menyebabkan lebihan kos terdiri daripada kelemahan pengurusan dan pengawalan
vii
tapak, subkontraktor yang tidak berkelayakan, kelewatan jadual, anggaran masa
dan kos tidak tepat, kesilapan semasa pembinaan, reka bentuk tidak lengkap semasa
tender, tuntutan secara kontrak seperti penambahan masa dengan tuntutan kos, dan
kelemahan kawalan kewangan di tapak.
viii
CONTENTS
TITLE i
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
ABSTRAK vi
CONTENTS viii
LIST OF TABLES xi
LIST OF FIGURES xii
LIST OF APPENDIXS xiii
CHAPTER 1: INTRODUCTION
1.1 Background 1
1.2 Problem Statement 2
1.3 Aim and Objectives 4
1.4 Scope of the Research 4
1.5 Thesis Layout 4
CHAPTER 2: LITERATURE REVIEW
2.1 Construction Industry in Malaysia 6
2.2 Risk in Construction Industry 8
2.2.1 Systematic Approach to Risk Management 8
2.3 Definition of Time and Cost Overrun 10
2.4 Time and Cost Overrun Scenario 12
2.5 Factors Affecting Time and Cost Overruns 14
ix
2.6 Discussion of Factors Causing the Time and Cost
Overrun
21
2.6.1 Contractor's Site Management Related Factor
(CSM)
21
2.6.2 Design and Documentation Related Factors
(DDF)
24
2.6.3 Financial Management Related Factors (FIN) 26
2.6.4 Information and Communication Technology
Related Factors (ICT)
28
2.6.5 Labor Management Related Factors (LAB) 29
2.6.6 Material and Machinery Related Factors
(MMF)
31
2.6.7 Project Management and Contract
Administration Related Factors (PMCA)
32
2.7 Construction Project Life Cycle (CPLC) 34
2.8 Time and Cost Overrun Factors in CPLC 37
2.9 Summary 39
CHAPTER 3: METHODOLOGY
3.1 Introduction 40
3.2 Research Process/Flowchart 40
3.3 Questionnaire Development 42
3.4 Data Collection 44
3.4.1 Pilot Study 44
3.4.2 Actual Survey (Delphi Method) 44
3.4.2.1 Reliability of Delphi Method 48
3.5 Analysis Method 49
3.5.1 Reliability Test 49
3.5.2 Descriptive Analysis 50
3.5.3 Risk Matrix 51
3.6 Summary 53
x
CHAPTER 4: DATA ANALYSIS
4.1 Introduction 54
4.2 Pilot Study Analysis 54
4.2.1 Demography of Respondents 55
4.2.2 Reliability Test of Factors 55
4.2.3 Risk Level of Factors 56
4.3 Analysis of Delphi Round 1 59
4.4 Analysis of Delphi Round 2 71
4.5 Summary 78
CHAPTER 5: DISCUSSION AND CONCLUSION
5.1 Introduction 79
5.2 Objective Achievement 79
5.2.1 Objective 1: Identifying Time and Cost
Overrun Factors along the CPLC
80
5.2.2 Objective 2: Determine the Occurrence of the
Factors along the CPLC
81
5.2.3 Assess the Risk Level of Factors on Time and
Cost Overrun
81
5.3 Limitations 84
5.4 Recommendations 85
REFERENCES 86
APPENDIX 99
VITA 111
LIST OF PUBLICATIONS 112
xi
LIST OF TABLES
2.1 Time and cost overrun scenario 13
2.2 Mapping previous studies (Factors of Time and Cost Overrun) 19
2.3 Comparison of phases in (CPLC) 35
2.4 Phase of occurrence of factors 37
2.5 Frequency of factors occurred in each phases 39
3.1 Scale to assess the degree of probability and severity level 43
3.2 Implementation of the Delphi Method 45
3.3 Comparison between traditional surveys and Delphi surveys 48
3.4 Parameter for degree of agreement 50
3.5 Parameters for assessing level of occurrence and severity 51
3.6 Scale used to identify factor‟s severity and probability of occurrence 52
4.1 Demography of Respondent 55
4.2 Reliability test results 56
4.3 Analysis of factors 57
4.4 Risk classification of factors on time and cost 58
4.5 Risk level of factors in planning phase 63
4.6 Risk level of factors in design phase 64
4.7 Risk level of factors in construction phase 65
4.8 Risk level of factors in finishing phase 67
4.9 Risk level of phases 69
4.10 Agreeability on the risk level of factors in planning phase 71
4.11 Agreeability on the risk level of factors in design phase 72
4.12 Agreeability on the risk level of factors in construction phase 73
4.13 Agreeability on the risk level of factors in finishing phase 75
4.14 Comparison of high risk factors 77
xii
LIST OF FIGURES
2.1 Construction Project Life Cycle (CPLC) 36
3.1 Research methodology flowchart 41
3.2 Process of Delphi Method 46
3.3 Risk Matrix 52
4.1 Type of organization 59
4.2 Respondents‟ Experience 60
4.3 Education Level 60
4.4 Category of organization 61
4.5 Size of project 61
4.6 Type of position 62
4.7 Risk level of time overrun in planning phase 63
4.8 Risk level of cost overrun in planning phase 63
4.9 Risk level of time overrun in design phase 64
4.10 Risk level of cost overrun in design phase 65
4.11 Risk level of time overrun in construction phase 66
4.12 Risk level of cost overrun in construction phase 67
4.13 Risk level of time overrun in finishing phase 68
4.14 Risk level in finishing phase on cost overrun 69
4.15 Risk level for each phase on time overrun 70
4.16 Risk level for each phase on cost overrun 70
5.1 Common factors of time and cost overrun 80
5.2 Significant factors in planning phase 82
5.3 Significant factors in design phase 82
5.4 Significant factors in construction phase 83
5.5 Significant factors in finishing phase 84
xiii
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Questionnaire for Pilot Study 99
B Questionnaire for Delphi Round 1 102
C Questionnaire for Delphi Round 2 105
D Mapping of Previous Studies in Worldwide 108
E Mapping of Previous Studies in Malaysia 109
F Vita 111
G List of Publications 112
CHAPTER 1
INTRODUCTION
1.1 Background
In the construction industry, the aim of project control is to ensure that projects finish
on time, within cost and achieve other project objectives. Unfortunately, time
overrun is a very frequent phenomenon and is associated with nearly all projects in
the construction industry (Le Hoai et al., 2008). Similarly, cost overrun is a major
problem in project development and is a regular feature in construction industry. The
situation of a construction project in which budgetary estimate exceeds estimation,
budget exceeds budgetary estimate, and settlement exceeds budget is a universal
phenomenon (Ali & Kamaruzzaman, 2010). This trend is more severe in developing
countries where time and cost overruns sometimes exceed 100% of the anticipated
cost of the project (Kaming et al., 1997; Abd El–Razek et al., 2008). The projects
that had faced time and cost overruns problem were reported in numerous countries.
According to Moura et al., (2007), time and cost overruns were major
problem in the construction industry of Portugal where the project had experienced
time overrun of around 40% of the contract time. While, average cost overrun was
recorded as 12% of the contract cost. In Nigeria, Omoregie & Radford 2006) found
that average escalation for the time and cost overruns were 188% and 14%
respectively. Similarly in Malaysia, several studies have been carried out to
2
investigate the performance and factors of time and cost overruns in construction
industry. As reported by Sambasivan & Soon (2007), about 17.3% of 417
government contract projects in Malaysia were considered sick and abandoned in the
year 2005. Besides that, a study conducted in Klang Valley found that most of
construction projects were affected by cost overrun due to inaccurate or poor
estimation of original cost (Ali & Kamaruzzaman, 2010). Thus, it is very important
to address the issues of time and cost overruns to ensure the success of construction
projects.
1.2 Problem Statement
A success of any project can be assessed based on the performance of cost, time,
quality and safety of the project (Atkinson, 1999; Memon et al., 2013). A project
can be classified as successful if it is completed within the stipulated time and cost
(Ejaz, Ali, & Tahir, 2013). Besides that, the success of a project is also assessed on
the ability in achieving the objectives of the project. However, it is rare for a
construction project be completed within contractual time and cost where commonly
a huge amount of time and cost overruns occur.
Time and cost overruns are critical issues frequently faced by the
construction project worldwide (Le-Hoai et al., 2008; Murray & Seif, 2013; Sweis et
al., 2013). This problem is considered as the recurring problem in construction
project and gives negative impact to the projects (Sweis, 2013). Similarly, it is also a
severe problem in Malaysian construction industry as reported by (Endut et al., 2009;
Rahman et al., 2012). A study on 308 public and 51 private sectors construction
projects found that only 20.5% of the public sector projects were completed within
stipulated time and 46.8% of projects completed within the budget. On the other
hand, only 33.35% and 37.2% of private sector projects were completed within the
estimated time and cost respectively (Endut et al., 2009). Another study on MARA
construction projects also found that 90% of the projects have experienced delay
(Abdullah et al., 2011). More recently, the problem of time and cost overruns issue
also happened in the construction of Kuala Lumpur International Airport 2 (known
as KLIA2). The targeted opening was in September 2011 but was postponed until
3
May 2014. Its initial budget of RM1.6 billion has since ballooned to RM4 billion.
These time and cost overruns were caused by various factors. For example: time and
cost overruns in KLIA2 project occurred due to “frequent design change in
construction” (Nie, 2014).
These problems were caused by various factors that had affected the progress
of works from beginning until the final stage of construction. Therefore, many
studies have been conducted to identify the factors that cause time and cost overruns
in Malaysian construction projects. Potty et al., (2011) conducted a case study to
identify the risk of time and cost overrun factors for multiple Design and Build
(D&B) projects in Malaysia. They pointed out that the major factors that led to time
and cost overruns were; shortage and lack in quality materials and appropriate
equipment in the local market, no material delivery schedule prepared by the
contractor, delay in materials, drawing and proposal approvals by consultant and
bad weather conditions. While, Rahman et al., (2013) studied on factors that had
caused cost overrun in large construction projects and found three significant factors
of cost overrun were fluctuation of prices of material, cash flow and financial
difficulties faced by contractors and poor site management and supervision. Karim et
al., (2012) focused on investigating risk factors from the perspectives of the
contractors that involved in construction projects within Batu Pahat and Muar
districts. Results found that the three most important risk factors in construction
project were shortage of material, late deliveries of material, and shortage of
equipment. A study conducted by Alaghbari et al., (2007) identified the most
important factors that had caused the delay in construction projects in Malaysia were
financial problems and coordination problems. Memon et al., (2010) studied the
causes affecting the construction cost in Majlis Amanah Rakyat (MARA) large
projects. It showed that cash flow and financial difficulties faced by contractors,
contractor's poor site management and supervision, inadequate contractor
experience, shortage of site workers, incorrect planning and scheduling by
contractors were the most severe factors.
The previous studies had only focused on identifying time and cost overrun
factors. There was a lack of investigation on the risk factors and their relative
occurrence throughout the construction project life cycle (CPLC). It is necessary to
consider CPLC in this study since the completion of projects involves a few phases
such as planning, design, construction and finishing. Since each phase has different
4
activities, it also has its own risk which is caused by parties that involve in each
phase. Hence, it is very important to recognize the risk factors of time and cost
overruns in each phase. This will be very helpful in considering the appropriate
actions to overcome these problems.
1.3 Aim and Objectives
The aim of this study is to assess the risk of various factors that cause time and cost
overruns throughout the life cycle of construction projects in Malaysia. In order to
achieve this aim, the following objectives are set as follow:
i. Identifying time and cost overrun factors throughout the project life cycle.
ii. Determining the occurrence of the factors throughout the project life cycle.
iii. Assessing the risk level of the factors of time and cost overruns.
1.4 Scope of the Research
This study involves quantitative approach using structured questionnaire survey in
identifying and assessing the risk level of the factors that cause time and cost
overruns in construction. However, the scope of this research is limited to the
construction companies located in the peninsular Malaysia. Targeted respondents for
data collection are clients, consultants and contractors who are registered with the
CIDB under Grade 5 until Grade 7.
1.5 Thesis Layout
This study focuses on assessing the risk of the various factors of time and cost
overruns. The thesis for this study has been structured into five chapters as follows:
5
i. Chapter 1 presents the background of the research issues to provide a broader
understanding of the issues and justifying the relevance of the research issues.
Following which, the aim and objectives of the research are proposed. The
scope of the research then was narrowed to the areas of study.
ii. Chapter 2 describes the scenario of construction projects in Malaysia, the risk
management, concept of time and cost overrun, discussion of time and cost
overrun factors, and lastly, this chapter reviews the CPLC phases. All these
information are gathered to provide an understanding on the time and cost
overrun issues in the context of construction projects.
iii. Chapter 3 presents the research process to achieve its objectives, to select the
appropriate method of data collection and data analysis, and to explain the
reason for the selection and how it relates to the research objectives.
iv. Chapter 4 discusses the data collection, analyzes and discusses the results of
the survey to determine whether the research objectives are valid by
reflecting the responses from the industry.
v. Chapter 5 concludes the results of this research by reflecting upon the
limitation and weaknesses of the research and also by providing the
suggestion for further research.
CHAPTER 2
LITERATURE REVIEW
2.1 Construction Industry in Malaysia
In Malaysia, construction industry has been developed since the independence, and it
was considered as a major productive sector in Malaysia (Ibrahim et al., 2010). This
industry is made up of many components including thousands of contractors,
workers, developers, client organizations (government and private), management,
engineering, architectural, and surveying consultants, manufacturers, material
suppliers, plant hirers.
The Malaysian construction industry is divided into two areas that comprise
general construction and special trade works. For general construction, it involves the
residential construction, non-residential construction and civil engineering
construction. Meanwhile, for special trade works, it consists of several activities like
metal works, electrical works, plumbing, sewerage and sanitary work, refrigeration
and air-conditioning work, painting work, carpentry, tiling and flooring work, and
glass work (Ibrahim et al., 2010).
The construction industry is a very important part of Malaysian economy and
the performance of country's economy has increased almost every year. The 10th
Malaysia Plan, which covers the period from 2011 to 2015, will potentially have high
impacts on the Malaysian construction sector where it is expected that the
7
Construction Sector will grow at 3.7% per annum as compared to 6% per annum
GDP growth for the country. Under the 10th Malaysian Plan, RM230 billion
development funds and RM20 billion facilitation funds have been allocated. Both of
these allocations aim to create a strong demand for the construction industry, in
which 60% (RM138 billion) of the fund involve physical development. The RM20
billion facilitation fund aims to attract private sectors investment in the industry. As
an initiative to strengthen the private sector investment in the industry, 52 projects in
the 10th Malaysia Plan that worth RM63 billion are identified to be implemented
under Public-Private Partnership (PPP) initiatives. Among the projects are 7 tolled
highway at an estimated value of RM19 billion, 2 coal electricity generation plant
(RM7 billion), Malaysian Rubber Board‟s Land Development (RM10 billion),
Petronas LNG Melaka plant (RM3 billion), and 2 Aluminium Smelters in Sarawak
(RM18 billion).
In the 10th Malaysia Plan, Dato‟ Shaziman Abu Mansor, Minister of Works
Malaysia stated that the construction sector has a remarkable impact on the GDP of
many countries including Malaysia. Construction Sector registered a strong growth
of 5.8% in 2009, and subsequently 8.7% for the first quarter of 2010 as against the
overall GDP growth of 10.1% during the first quarter of 2010.
It can be concluded that construction industry is a major industry that
generates country‟s economic growth and development in providing public amenities
which then help the people and increase their productivity which subsequently
generates country‟s GDP.
However, construction industry in Malaysia is facing chronic problems
including poor performance of time and cost, construction waste, poor productivity
and over dependent on foreign workers. Of these challenges, poor time and cost
performance are considered as critical issues (Rahman et al., 2012).
In the past, some significant delay cases were reported by (Riazi et al., 2011).
For example, the Malaysia External Trade Development Corporation (MATRADE)
project faced 9 years of time overrun and a 70% cost overrun due to inferior
construction and abandonment of the project by the first contractor, resulting in the
appointment of another contractor. Similarly, the construction of Pandan hospital
was planned to complete within 2 years but it faced 4-year delay due to many
extensions of time. While, the second Penang Bridge, which was built with the cost
of RM4.5 billion, was initially scheduled to be completed in September but was
8
delayed to November 2013 after the ramp collapsed in June. Shah Alam Hospital
also faced the same problem where the development had started on Nov 15, 2007,
and was scheduled for completion on June 25, 2011. However, it had stalled twice
due to problems with the contractors involved. These cases have caused the
Malaysian construction industry to be inefficient and associated with low quality and
productivity, leading to a comprehensively negative image and economic volatility
(CIDB, 2004). Thus, it is very important to identify the causative factors of time and
cost overrun in order to achieve a completion of project within the stipulated time
and cost.
2.2 Risks in Construction Industry
A risk within the construction industry is generally perceived as an occurrence that
impacts the major objectives of projects, namely cost, time and quality (Dai et al.
2009). The risks may be derived from two sources. The first consists of the
environmental impacts, which are called external risks. The second consists of the
uncertainties that exist in the project itself, which are called internal risks (He Zhi,
1995).
Compared with many other industries, the construction industry is subject to
more risks due to the unique features of construction activities, such as long period,
complicated processes, abominable environment, financial intensity and dynamic
organization structures (Flanagan & Norman, 1993; Akintoye & MacLeod, 1997).
Hence, taking effective risk management techniques to manage risks associated with
various construction activities has never been more important for the successful
delivery of a project.
2.2.1 Systematic Approach to Risk Management
Risk management has become a main part of an organization‟s activities and its main
aim is to help all other management activities to achieve the organization's aims
9
directly and efficiently. Risk management is a continuous process that depends
directly on the changes in the internal and external environment of the organization.
In reality, the changes in the environment require continuous attention for
identification and control of risks (Tchankova, 2002).
Risk management may be described as “a systematic way of looking at areas
of risk and consciously determines how each area should be treated. It is a
management tool that aims at identifying sources of risk and uncertainty,
determining their impact, and developing appropriate management responses” (Uher,
2003). The objective of project risk management is to identify and manage risks for
successful completion of the project. Project risk management is the systematic and
iterative process of identifying, analyzing, and responding to project risks. It includes
maximizing the probability and consequences of positive events and minimizing the
probability and consequences of adverse effects to project objectives (Kasap, 2007).
Different researchers have proposed different ways to implement risk
management. There are studies that advocated the necessity of passing through three-
stage (Zou et al., 2007), four-stage (He Zhi, 1995; Fayda et al., 2003) and six-stage
(Ogunsanmi et al., 2011) process to implement risk management effectively. Taking
into account the simplicity and practicability of dealing with fewer stages for
practitioners in the industry, this study considers implementing risk management in
three consecutive stages as a widely acknowledged approach within the literature
(Wang et al. 2004; Othman, 2008; Perera et al. 2014). Risk identification and risk
analysis specify and predict the likelihood and the adverse impacts of risks, whereas
risk response concerns the measures taken by project management to reduce the
probability and effects of risks.
i. Risk identification
Risk identification is the first step of risk management process, in which
potential risks associated with a construction project are identified (Zou et al.,
2007). It is of considerable importance since the process of risk analysis may
only be performed on identified potential risks (Wang et al., 2004). In this
study, risk identification was accomplished through literature review and
pilot study. A total of 69 common factors that contribute to time and cost
overruns were identified from 80 journals worldwide. From that, 35 factors
have been identified as the causes that lead to time and cost overruns on
10
construction projects in Malaysia. These factors have been confirmed by
expert panels during the pilot study. Therefore, the 35 risk factors were used
for data collection in this study. In the first round Delphi, expert panels were
asked to identify and determine the phase of the listed factors.
ii. Risk analysis
The identified risks are analyzed to determine their severities and then to
assign priorities to them (Fayda et al., 2003). Risk analysis is used to evaluate
risks, and to ascertain the importance of each risk to the project, based on an
assessment of the probability of occurrence (Likelihood) and the possible
consequence (Severity) of its occurrence (Othman, 2008). In this study, the
factors of time and cost overrun were analyzed using the average index and
risk matrix. Based on the results, the risk factors were categorized into three
zones: high risk, medium risk and low risk.
Thus, it can be concluded that risk assessment which involves risk
identification and risk analysis is a systematic process of evaluating the potential of
risks factors that may involve in a project activity.
2.3 Definition of Time and Cost Overrun
Time and cost overrun are common phenomena in projects worldwide (Le-Hoai et
al., 2008; Murray & Seif, 2013; Sweis, 2013). Based on previous studies, time and
cost overruns have been defined in different ways. Time overrun is described as the
additional times that a project takes to be completed compared to the original due
date that has been set ahead of construction. The delay could be compensated or
otherwise (Sorooshian, 2014). In the study by Pai & Bharath (2013), delay is defined
as a slowing down of work without stopping it entirely. Delay will result in
disruption of work, low productivity, delayed projects, cost increase, third parties‟
claims, and contract termination. It also refers to the long construction period due to
the problems that occurred during the implementation of the project (Kikwasi, 2012).
Lo, Fung & Tung (2006) and Assaf & Al-Hejji (2006) mentioned that delay as a time
11
overrun either beyond the contract date or beyond the date that the parties have
agreed upon for the delivery of the project. It is a project that is not consistent with
the plan and is considered as a common problem that occurs in a construction
project. According to (Hasan, Suliman, & Malki, 2014), time overrun can be defined
as postponing the project completion time due to predicted and unpredicted causes.
Completion time is very essential in construction because “Time is Money”.
There are two types of delay: non-excusable delays and excusable delays
(Tumi, Omran & Pakir, 2009; Hamzah et al., 2011; Ibironke et al., 2013). A non-
excusable delay is delay caused by the contractor or its suppliers, through no fault by
the owner. For example: difficulties in financing project by contractor, poor site
management and supervision by contractor, poor communication and coordination
by contractor with other parties, and inadequate planning and scheduling (Hamzah
et al., 2011). The contractor is generally not entitled to relief and must either make
up the lost time through acceleration or compensate the owner. Therefore, non-
excusable delays usually result in no additional money and no additional time being
granted to the contractor. While, excusable delays are divided into two: compensable
and non-compensable delays. Compensable delays are caused by the owner or the
owner's agents. For example: slowness in decision making process, change orders by
owner during construction, late in revising and approving design documents by
owner, financial problems (delayed payments, financial difficulties, and economic
problems). While non-compensable delays are caused by third parties or incidents
beyond the control of both the owner and the contractor. These delays are commonly
called “acts of God” because they are not the responsibility or fault of any particular
party (Alaghbari 2007; Tumi et al., 2009). For example: flood, wind damage,
transportation delays, contract modifications, and labor dispute and strike.
Thus, time overrun in this study takes into consideration these two types of
delays because the identified factors involve in non-excusable delays and excusable
delays. The factors that contribute to the non-excusable delay are: poor site
management and supervision, incompetent subcontractors, schedule delay,
inadequate planning and scheduling, lack of experience, mistakes during
construction, inadequate monitoring and control, cash flow and financial difficulties
faced by contractors, poor financial control on site, delay payment to supplier
/subcontractor, labour productivity, shortage of site workers, shortage of technical
personnel (skilled labour), high cost of labour, labour absenteeism, fluctuation of
12
prices of materials, shortages of materials, late delivery of materials and equipment,
and equipment availability and failure. While the factors that contribute to the
excusable delay are: inaccurate time and cost estimates, frequent design changes,
mistakes and errors in design, incomplete design at the time of tender, poor design
and delays in design, delay preparation and approval of drawings, financial
difficulties of owner, delay in progress payment by owner, contractual claims such as
extension of time with cost claims, poor project management, change in the scope of
the project, delays in decisions making, inaccurate quantity take-off, lack of
coordination between parties, slow information flow between parties, and lack of
communication between parties.
Cost is one of the key drivers for construction projects and overrun in cost is
a major concern within this industry (Sweis et al., 2013). Cost overrun is also a
frequent phenomenon and this problem is quite prominent with all projects of
construction industry in Pakistan (Azhar et al., 2008). In the study by Danso &
Antwi (2012) and Park & Papadopoulou (2012), cost overrun is defined as the
difference between the actual cost at completion and the contract amount agreed
between client and contractor. In another study, cost overrun refers to as a budget
increase, cost increase, or cost growth (Love et al., 2013). While, Ali &
Kamaruzzaman (2010) mentioned that the cost overrun in construction projects can
be categorized in four situations in which budgetary estimate exceeds estimation,
budget exceeds budgetary estimate, and settlement exceeds budget, and it is a
universal phenomenon.
Therefore, the key definitions of time and cost overrun in this study are:
Time overrun: Late completion of activities to the planned schedule due to
excusable and non-excusable delay.
Cost overrun: The increase in project cost exceeds the original estimation.
2.4 Time and Cost Overrun Scenario
In construction, time and cost are the most important parameters used to measure the
performance and success of the projects. It is considered throughout the project
lifecycle. However, most projects do not complete within the prescribed time and
13
budgeted cost. It was considered as time and cost overrun (Azhar et al., 2008;
González et al., 2013). A detailed empirical analysis of time and cost overrun
performance for various types of projects from various countries is summarized in
Table 2.1.
Table 2.1: Time and cost overrun scenario
Country Type of Project Time & Cost Overrun References
Hong Kong Civil engineering
projects
85% of the projects faced time
overrun
(Yogeswaranet et al.,
1998)
Jordan Public projects 81.5% of projects were delayed (Al-Momani, 2000)
Australia Construction
projects
The mean of time overrun was
20.7%.
The mean of cost overrun was
12.6%.
(Love et al., 2005)
Saudi Arabia Large construction
projects
70% of projects experienced time
overrun.
(Assaf & Al-Hejji,
2006)
Nigeria Infrastructure
Projects
The percentage of project delay was
188%.
The average percentage of over
budget was 14%.
(Omoregie &
Radford, 2006)
Portugal Construction
projects
The average of time overrun was
201 days (40%) from expected time.
The average of cost overrun was
€2.054.280 (12%) of the initial
average cost.
(Moura et al., 2007)
Malaysia Construction
projects
17.3% of 417 government contract
projects were considered sick
More than 3 months of delay or
abandoned
(Sambasivan & Soon,
2007)
Bosnia and
Herzegovina
Building
construction
structure
Average of time overrun was
11.55%.
Average of cost overrun was 6.84%.
(Žujo et al., 2010)
India Highway
construction project
90% of projects exceeded the
planned construction duration.
57% of projects exceeded the
estimated cost.
(Bhargava et al.,
2010)
Nigeria Civil engineering
project
46.1% of projects were delayed ,
and 53.2% abandoned
(Amu & Adesanya,
2011)
Malaysia Construction
projects
More than 90% of large MARA
construction projects experienced
delay
(Abdullah et al.,
2011)
United
Kingdom
Building projects
(housing, schools,
offices, hospitals
and super- markets)
35.6% of projects were delayed and
the extent of time delays ranged
from 1-12 month.
25.2% of projects were overspent
and the extent of cost overruns
ranged from 0.03 million to 14
million pounds.
(Meng, 2012)
Ghana Telecom tower
construction projects
35% - 55% of the projects executed
experienced 82% time overruns
(Danso & Antwi,
2012)
Australia Construction
projects (banks,
hospitals and hotels)
For construction projects the
maximum cost overrun was 244%
For the civil engineering projects
(Love et al., 2013)
14
and engineering
projects (tunnel,
road and sewer
treatment plants)
the maximum cost overrun was
109%
Thus, from Table 2.1 it can be concluded that time and cost are the two
common concerns in construction project, and this was reported by many researchers
in different countries, types of project, locations, sizes, and scopes. This conclusion
is in agreement with Le-Hoai et al., (2008) that studied to find the causes of delay
and cost overruns during the construction phase of projects in Vietnam. It has been
proven that the total time and cost overruns faced by each project mostly exceed 50%
as shown in table above. This problem is more critical in Nigeria, India, Australia
and Malaysia as reported by researchers. It was revealed that projects in these
countries had experienced almost or exceeds 100% of time and cost overrun.
2.5 Factors Affecting Time and Cost Overruns
The problems of time and cost overrun occur due to various risk factors such as
accidents, price fluctuation, inadequate materials and unfavorable weather condition
as cited by (Zaini et al. 2010). Thus, the process of identification of major factors
that cause time and cost overrun in construction projects is discussed as below:
i. In order to identify the major factors that cause time and cost overrun in
construction projects, 80 journals were reviewed. From different countries, a
total of 69 time and cost overrun factors were identified as shown in
Appendix D.
ii. Based on frequency (min 1), 35 of the 69 significant factors that cause time
and cost overrun were identified. These factors were summarized as shown in
Appendix E.
iii. These factors were grouped into seven main categories namely: Contractor‟s
Site Management Related Factors (CSM), Design and Documentation
Related Factors (DDF), Financial Management Related Factors (FIN),
Information and Communication Technology Related Factors (ICT), Labour
Management Related Factors (LAB), Material and Machinery Related
15
Factors (MMF), Project Management and Contract Administration Related
Factors (PMCA).
iv. These 35 factors were applied in a pilot study to get the confirmation from
the expert panel regarding the suitability of these factors in Malaysian
construction projects.
In recent years, there have been numerous studies on the identification of
influencing factors of project‟s time and cost overruns worldwide (Olawale & Sun,
2010). It is summarized as below:
Malaysia: Sambasivan & Soon (2007) investigated the time overrun factors and their
impact on project completion in Malaysian construction industry. The finding of this
study indicated that the ten most important causes were contractor’s improper
planning, contractor’s poor site management, inadequate contractor experience,
inadequate client’s finance and payments for completed work, problems with
subcontractors, shortage in material, labour supply, equipment availability and
failure, lack of communication between parties, and mistakes during the construction
stage. While, Abdullah et al., (2011) studied the causes and effects of delay in large
MARA construction project based on the perception of Project Management
Consultants (PMC) in Malaysia. The study found that the 5 most significant causes
of construction delay were cash flow and financial difficulties faced by contractors,
contractor’s poor site management, inadequate contractor experience, shortage of
site workers, and ineffective planning and scheduling by contractors. Besides that,
Rahman et al., (2013) identified 20 resource factors in construction industry in
Malaysia that caused cost overrun and they also assessed the relationship between
these factors. The results showed that the 3 most significant factors were fluctuation
of prices of materials, cash flow and financial difficulties faced by contractors and
shortages of materials.
Pakistan: Azhar et al., (2008) investigated the main factor that caused cost overrun
in Pakistan construction sector and the results indicated that the top ten cost overrun
factors were fluctuation in prices of raw materials, unstable cost of manufactured
materials, high cost of machineries, lowest bidding procurement procedures, poor
project (site) management/ poor cost control, delays between design and
16
procurement phases, incorrect/ inappropriate methods of cost estimation, additional
work, improper planning, and unsupportive government policies .While, Nawaz et
al., (2013) studied the cost overrun causes which affect the cost performance in
construction projects of Pakistan. The result showed the top ten significant causes
were corruption and bribery, political interests, poor site management, delay in site
mobilization, rigid attitude by consultants, extra work without approvals, frequent
changes during execution, gold platting, safety and health and limited access to job
sites.
Egypt: Aziz (2013) conducted questionnaire survey to identify the factors perceived
to cause a delay in the Egyptian construction project. A total of 99 factors that caused
time overrun were identified and these factors were categorized into 9 major groups.
As a result, the most 3 significant factors for each group was found. They were: (1)
Contractor category : ineffective project planning and scheduling, poor site
management and supervision, poor financial control on site, (2) Equipment
category: shortage of equipment, frequent equipment breakdowns, equipment
allocation problem, (3) Owner category: delay in progress payments, selecting
inappropriate contractors, inadequate planning, (4) Project category: complexity of
project, legal disputes between project participants, ineffective delay penalties, (5)
Design category: design changes by owner, misunderstanding of owner’s
requirements by design engineer, design errors and omissions made by designers, (6)
Consultant category: delay in approving major changes in scope of work by
consultant, lack of consultant experience in construction projects, poor
communication and coordination between owner and contractor, (7) External
category: different tactics patterns for bribes, sudden failures actions, global
financial crisis, (8) Material category: shortage of construction materials, late
delivery of materials, delay in manufacturing materials, (9) Labour category:
unqualified/inadequate experienced labour, shortage of labour, and low productivity
of labour. While, Marzouk & El-Rasas (2013) outlined the top ten causes of delay in
Egyptian construction projects. It comprised finance and payments of completed
work by owner, variation orders/changes of scope by owner during construction,
effects of subsurface conditions, low productivity level of labour, ineffective planning
and scheduling of project, difficulties in financing project by contractor, type of
17
project bidding and award, shortage of construction materials in market, late in
revising and approving design documents by owner, and unqualified workforce.
India: Pai & Bharath (2013) studied the causes of delay in Indian infrastructure
projects. This study found 73 causes and has classified them into nine groups. Three
critical causes of delay were identified for each group which were (1) Project group:
original contract duration is too short, legal dispute between various parties, and
type of construction contract, (2) Owner group: delay in progress payment by owner,
late revision and approval by owner, and delay in giving site to contractor, (3)
Contractor group: ineffective planning and scheduling, difficulty in financing by
contractor, and delay in subcontractor work, (4) Consultant group: late revision and
approval by consultant, poor communication, and inflexibility of consultant, (5)
Design group: mistakes and discrepancies in design document, unclear and
inadequate details in drawings, and complexity of the project design, (6) Material
group: delay in material delivery, shortage of material in market, and changes in
material type and specification, (7) Equipment group: equipment breakdown,
shortage of equipment on site, and low level skill of operator, (8) Labour group:
Shortage of labour, unqualified work force, and low productivity, (9) External group:
effects of subsurface condition, delay in getting permit from municipality, and rain
effect on site.
Nigeria: Ameh, Soyingbe, & Odusami (2010) investigated the significant factors
that caused cost overruns in the development of telecommunication projects in
Nigeria. This study involved 53 telecommunication projects scattered over the six
geopolitical zones. The result indicated that the three major causes of cost overruns
were lack of experience of contractors on telecommunication projects, high cost of
imported materials, and fluctuation in the prices of materials. While, Amu &
Adesanya (2011) studied the factors that contributed to time overrun in Nigerian
construction project. The result showed that funding and payment, contractor and
client factors were the major factors that contributed to the delay of projects.
Turkey: Gündüz et al., (2013) conducted a survey on Turkey construction projects
to identify the delay factors. 83 delay factors were identified and categorized into 9
major categories. Results of their study indicated that the most significant factors
18
were inadequate contractor experience, ineffective project planning and scheduling,
poor site management and supervision, design change by owner, late delivery of
materials, unreliable subcontractors, delay in performing inspection and testing,
unqualified workers, change orders, delay in site delivery, delay in approving design
documents, delay in progress payments, slowness in decision making, poor
communication and coordination with other parties, and unexpected surface and
subsurface conditions.
Ghana: Fugar & Agyakwah-Baah (2010) conducted a study to investigate the causes
of delay in building construction projects in Ghana through interviews and
questionnaires survey. A total of 32 causes of delay were analyzed and the top ten
influencing factors in causing delay were delay in honoring certificates,
underestimation of the costs of projects, underestimation of the complexity of
projects, difficulty in accessing bank credit, poor supervision, underestimation of
time for completion of projects by contractors, shortage of materials, poor
professional management, fluctuation of prices, and poor site management.
Bahrain: Hasan et al., (2014) identified the delays in road projects in Bahrain. A
total of 47 causes were identified and the result indicated that main causes of delay
related to contractors, owners and consultants were improper planning and
scheduling, delay in decision making, and lack of experience respectively. While,
time and cost overruns were found as the most frequent effects of delay.
Therefore, the similarities and differences of time and cost overrun factors in
Malaysian construction projects to other mentioned countries are shown in Table 2.2.
19
Table 2.2: Mapping Previous Studies (Causative Factors of Time and Cost Overrun)
No Category Causes of Time and Cost Overrun
Od
eh a
nd
Ba
tta
ineh
(2
00
2)
Al-
Ta
bta
ba
i (2
00
2)
Lo
ng
et
al.
, (2
00
4)
Aib
inu
an
d O
dey
ink
a (
20
06
)
Sa
mb
asi
va
n&
So
on
(2
00
7)
Ma
jid
(2
00
6)
Le-H
oa
i et
al.
, (2
008
)
El-
Ra
zek
et
al.
, (
200
8)
Sw
eis
et a
l.,
(20
08)
Azh
ar
et a
l.,
(20
08
)
En
sha
ssi
et a
l.,
(20
09
)
Al-
Kh
ara
shi
et a
l.,
(200
9)
Tu
mi
et a
l.,
(200
9)
Fu
ga
r et
al.
, (2
01
0)
Mem
on
et
al.
, (2
01
0)
Ab
du
lla
h e
t a
l.,
(201
0)
Da
nso
&A
ntw
i (2
01
2)
Ak
insi
ku
&A
kin
suli
re (
20
12
)
Pa
i&B
ha
rath
(2
01
3)
Ma
rzo
uk
& E
l-R
asa
s (2
01
3)
Gü
nd
üz
et a
l.,
(20
13
)
Mu
rra
y &
Sei
f (2
01
3)
Ra
hm
an
et
al.
, (2
013
)
So
roo
shia
n (
20
14)
Mem
on
et
al.
, (2
01
4)
Ha
san
et
al.
, (2
01
4)
Country
Jo
rda
n
Ku
wa
it
Vie
tna
m
Nig
eria
Ma
lay
sia
Ind
on
esi
a
Vie
tna
m
Eg
yp
t
Jo
rda
n
Pa
kis
tan
Pa
lest
ine
Sa
ud
i A
rab
ia
Lib
ya
Gh
an
a
Ma
lay
sia
Ma
lay
sia
Gh
an
a
Nig
eria
Ind
ia
Eg
yp
t
Tu
rkey
Nig
eria
Ma
lay
sia
Ma
lay
sia
Ma
lay
sia
Ba
hra
in
1
CSM
Inadequate planning and scheduling / / / / / / / / / / / / / / / / / / / / / / /
2 Poor site management and supervision / / / / / / / / / / / / / / / / / / / /
3 Lack of experience / / / / / / / / / / / / / / /
4 Incompetent subcontractors / / / / / / / / / / / / /
5 Inaccurate Time and Cost estimates / / / / / / / /
6 Mistakes during construction / / / / / / /
7 Inadequate monitoring and control / / / / /
8 Schedule Delay / / /
9
DDF
Frequent design changes / / / / / / / / / / / / / / / /
10 Delay Preparation and approval of drawings / / / / / / / / / /
11 Mistakes and Errors in design / / / / / /
12 Poor design and delays in Design / / / / / /
13 Incomplete design at the time of tender / / / /
20
Table 2.2: (Continued)
14
FIN
Cash flow and financial difficulties faced by
contractors / / / / / / / / / / / / / / / /
15 Delay in progress payment by owner / / / / / / / / / / /
16 Financial difficulties of owner / / / / / / /
17 Delay payment to supplier /subcontractor / / / /
18 Poor financial control on site / /
19 Contractual claims, such as, extension of time with
cost claims / /
20
ICT
Lack of communication between parties / / / / / / / / / / / / / / / / /
21 Lack of coordination between parties / / / / / / / / /
22 Slow information flow between parties / / / / / /
23
LAB
Shortage of site workers / / / / / / / / / / / / / / / / /
24 labour productivity / / / / / / / / / /
25 Shortage of technical personnel (skilled labour) / / / / /
26 Labour Absenteeism / /
27 High cost of labour / /
28
MMF
Shortages of materials / / / / / / / / / / / / / / / / / / / /
29 Fluctuation of prices of materials / / / / / / / / / / / / / /
30 Late delivery of materials and equipment / / / / / / / / / / /
31 Equipment availability and failure / / / / / / / / / / /
32
PMCA
Delays in decisions making / / / / / / / / / / / / / / / / / / / /
33 Change in the scope of the project / / / / / / / / / / / / / / / / / / /
34 Poor project management / / / / / /
35 Inaccurate quantity take-off / /
21
2.6 Discussion of Factors Causing the Time and Cost Overrun
A total of 35 factors that caused construction time and cost overrun were identified
and grouped into seven main categories as discussed below. The categories were
adapted from Rahman et al., (2013).
2.6.1 Category 1: Contractor's Site Management Related Factor (CSM)
Contractor's Site Management Related Factor concerns problems or adverse factors
caused by contractors. They include poor site management and supervision,
incompetent subcontractors, schedule delay, inadequate planning and scheduling,
lack of experience, inaccurate time and cost estimates, mistakes during construction,
and inadequate monitoring and control. Usually, the factors in this category occur in
a construction phase which is under contractor's responsibility as discussed below:
i. Poor site management and supervision
Poor site management and supervision represent the weakness of contractors
in managing and controlling the site which affects the time and cost in
construction projects. This is due to lack of professional construction
managers and lack of knowledge regarding site management (Odeh &
Battaineh, 2002). This problem will cause negative impact on progress work
that will lead to reworks, change of project scope, poor quality, and frequent
change orders by contractors (Murray & Seif, 2013; Nawaz et al., 2013;
Sambasivan & Soon, 2007). Thus, the impact from this factor will cause
overrun in time and cost of project. It was supported by Le-Hoai et al., (2008)
who found that poor site management and supervision were the major
problems in Vietnam construction projects. Furthermore, in Malaysia,
Sambasivan & Soon (2007) revealed that these factors were the most
significant causes of construction delays. While, Ali & Kamaruzzaman(2010)
reported that this factor was one of the factors that contributed to cost overrun
in construction projects of Klang Valley.
22
ii. Incompetent subcontractors
Factor of incompetent subcontractor is related to the inadequate experience or
capability of subcontractor in handling their works which leads to high risk of
delays (Aziz, 2013; Sambasivan & Soon, 2007).
iii. Schedule delay
To ensure the success of projects, one of the major considerations is to
complete the project within the stipulated time. Unfortunately, schedule delay
is a common thing in construction project which leads to time overrun and
increase in cost of project (Luu et al., 2009). This problem happens due to
fluctuations in the availability of construction materials, very long average
waiting times and uncertainties about deliveries of ordered materials,
shortages of funds to procure materials, and inadequacy in terms of
transportation (Omoregie & Radford, 2006).
iv. Inadequate planning and scheduling
Planning and scheduling should be managed properly in the earlier part of the
construction stage because it involves many works, starting from planning
stage until the project complete. Without the proper planning and scheduling,
it will cause delay at various stages (Murray & Seif, 2013). Usually, this
factor is related to not having the right materials, the right tools, the right
information, the right training, and the right people, all at the right place at
the right time (Azhar et al., 2008). Due to this factor, project outcomes are
likely to be low and an increase in project time and cost overrun will also
occur (Long et al., 2004). In a study conducted by Abdullah et al., (2009),
project management consultant (PMC) revealed that inadequate planning and
scheduling by contractors was the significant cause of delay. The contractors
were blamed for not being able to manage the works according to the planned
schedule.
v. Lack of experience
Clients and consultants blame the factor of lack of contractor's experience on
site as one of the causes of delay in construction projects. However,
contractors asserted that it happened due to the consultants‟
23
(architects/engineers) lack of design experience in the early stage of
construction (Chan & Kumaraswamy, 1997). Besides that, Odeh & Battaineh
(2002) indicated that lack of experience describes the inability of contractors
to plan. When the contractors are incapable of planning and managing their
projects smoothly, it can lead to negative impacts on their projects, such as
failure to complete the projects on time. This problem will be more severe
when the contractors employ young employees and inexperienced
management team in order for them to get high profit for their projects.
Unfortunately, they cannot handle the project due to lack of experience
related to the work (Abdullah et al., 2009; Memon et al., 2010). Indirectly,
this factor can cause delay or waste of material and also has an effect on the
cost of the project (Memon et al., 2011). For cost overrun problem, it can be
observed in the aspect of financial management where most of the contractors
did not have the experience to distribute the costs, and this caused the
projects to be unable to be planned well (Ali & Kamaruzzaman, 2010).
vi. Inaccurate time and cost estimates
Usually, time and cost estimation are prepared by many parties, but the
contractors are often blamed since they are the main party in producing the
estimations. However, this happens due to the designs, which are prepared by
the owners or consultants, that are not clear and do not consist enough
information of the project. Thus, all parties are responsible for this problem
(Long et al., 2004). This problem should be avoided because inaccurate time
and cost estimates are the main factors that contribute to cost overrun of a
project (Ali & Kamaruzzaman, 2010).
vii. Mistakes during construction
Mistakes during construction involve several aspects such as labours,
equipment, and also communications. Mistakes caused by labour occur when
the labours are careless in their works and do not follow the proper
procedures that could result in accidents. While mistakes caused by
equipment occur due to the lack of maintenance which leads to inefficiency
of equipment. Besides that, miscommunication between the parties will also
cause mistakes during the implementation of works. Thus, the right
24
information from professional managements will avoid the mistakes during
construction (Murray & Seif, 2013; Sambasivan & Soon, 2007). However,
when this problem happens, it will lead to reworks and indirectly will
increase the time and cost of projects.
viii. Inadequate monitoring and control
In the study by Apolot, Alinaitwe, & Tindiwensi (2011), the results indicated
that poor monitoring and control was ranked number three in contributing to
the cost overruns. Furthermore, this factor will cause poor workmanship and
schedule creep.
2.6.2 Category 2: Design and Documentation Related Factor (DDF)
Design and Documentation Related Factors are problems or adverse factors
attributable to consultants/designers. Frequent design changes, mistakes and errors
in design, incomplete design at the time of tender, poor design and delays in design,
and delay preparation and approval of drawings are common factors for which
consultants are held responsible. These factors are related to the design of project and
occur during design and construction phase as discussed below:
i. Frequent design changes
Frequent design change is considered as the most important factor that
inhibits the ability to control time and cost of projects. As a result, it will give
negative effect to time as well as cost of project (Olawale & Sun, 2010). This
problem happens due to inadequate site and environmental information
(Ameh et al., 2010). According to a study conducted by Alwi & Hampson
(2003), design changes mostly occurred based on owner‟s demands to meet
their requirements and preferences. Thus, any changes of design will affect
the cost estimation for the project, the volume and type of materials, and also
the labour. Furthermore, it also causes the rework of completed item, thus
leads to extension of project time (Enshassi et al., 2009).
86
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