Professional Documents
Culture Documents
Delay in Construction Projects and Its Consequences
Delay in Construction Projects and Its Consequences
Author
Pradeep Singh
M.E.civil (Construction & Management)
Email: pradeepsingh525@gmail.com
INTRODUCTION
Construction activities in any society consume a great chunk of its resources and in turn create greater magnitudes
of resources. It can be looked upon as Infra-structure activity of any civilization.
Parties beginning with friendly relations are at each other’s neck and the mood often is to demand “Pound of
Flesh”. This leads to “Differences and Disputes”.
DELAYS
Owners and contractors have one common objective:
To complete the project in Time and within Budget. It is failure of this objective of Time which leads to failure
of Budget and ultimately gives rises to Disputes.
“Time” is indicated invariably as of essence to the contract. There are circumstances compelling extension of
time which is granted but Time does mean money. It is when the question of money as compensation comes up,
there come up several disputes.
Often owners pre-estimate their delay losses and name a sum recoverable from the contractor to meet Delay
Damages. This provision is called “Liquidated Damages” for delay. Contractors do not find any such clause on
their side and are made to dispute for their claims.
Delays could be caused by one or more of the following agencies.
1. Owners and his team-mates.
2. Contractor and his team-mates.
3. Nature, i.e. Cause of force majeure type.
4. Society through some change in statutes, Byelaws etc. or through its impact of socio-
political nature.
However for the subject of this study, it will be proper to restrict our inquiry to the two agencies who are parties
to the contract viz. the owner and the contractor. Between these two, delay can occur due to various causes such
as,
2
1. Defects in documents/design/decision.
2. Incompetence of parties to cope up with the changes.
3. Differing site conditions.
4. Attitude of any one or both the parties.
On types of Delay, we have the following types.
a) Excusable and non excusable delay.
b) Critical and non critical delay.
c) Concurrent delay.
CONCURRENT DELAYS
3
While one party undergoes a phase of delay of its own making, the other party too is delayed not because of delay
on other side but due to its own deficiencies, such delay is of concurrent nature and is excusable.
Thus a Non critical, Concurrent delay is Excusable and therefore what gives rise to claim for damages is Critical,
Non Excusable, Non Concurrent delay.
FOR OWNER:
1. Delay in use of project.
2. Locked up capital.
3. Escalation in subsequent investment.
FOR CONTRACTOR:
1. Delay in getting profit.
2. Idling of resources-men, money, machines.
3. Acceleration losses.
4. Productivity loss due to uncontracted work-period.
4
CONCLUSION:
A lack of proper homework and input delays the project thereby making loss to the society. Proper inputs and
homework are necessary before implementing projects. The owners as well as the contractor should have good
knowledge of the law prevailing in the society to avoid any disputes due to delays in project.