Professional Documents
Culture Documents
1,2
Cebu Institute of Technology
University, Cebu Philippines
Abstract: The construction companies are one of the premier contributors to economic growth in the
Philippines, especially in the light of the current administration’s “Build, Build, Build” (BBB)- a
government program that seeks to accelerate infrastructure spending, develop industries that will
yield robust growth, create jobs, and improve the lives of Filipinos. However, project delays beset the
construction industry. Delays in the project can affect the reputation of a construction company, lead
to bad customer experience, and adversely affect profitability and company sustainability. This study
focused on determining factors that cause project delays and presented 20 predefined factors divided
into five categories. The 60 respondents were comprised of construction professionals with ongoing
projects in Cebu City. The process of data analysis used a descriptive method that ranked the factors
that cause project delays. Using the weighted mean, the results of this survey were then ranked based
on the weight of each factor that caused the delay. Based on the results, the five groups of factors that
have the most significance in causing project delays were: Quality with the weighted mean of 3.53,
Management with the weighted mean of 3.49, Financials with the weighted mean of 3.47, External
Factors with the weighted mean of 3.45, and Materials/Equipment with the weighted mean of 3.37.
After interpreting the results, avoidance and mitigation plans were drawn.
1. INTRODUCTION
The prospects for the construction industry in the Philippines are marked by general optimism.
In the Business World last February 1, 2019, Fitch Solution, an outfit that offers credit and debt
market information and macro intelligence, remarked: “We believe relative political stability within
the country will be a plus for the sector as policies enacted by the current government will benefit
from continuity over the next few years. The sector will be exposed to a smaller degree of political
and election risks in the short term as President Rodrigo Duterte is only slated to step down after the
2022 General Elections.” (https://www.bworldonline.com/
subway-project-to-boost-philippine-construction-sector/).
The construction industry has become one of the main contributors to the Gross Domestic
Product (GDP) of the Philippines. The Philippine News Agency, dated December 28, 2018, quoting
the Construction Statistics from the third-quarter Approved Building Permits of 2018, reported that
Central Visayas ranks second among the top five regions with the highest number of construction
projects, with the Province of Cebu placing third at the provincial level. (https://www.pna.gov.ph/
articles/1057616). As the construction industry is expanding, the volume of construction projects in
Cebu City will definitely increase, and expectedly, better than the national average.
Construction projects are complicated endeavors, associated with a huge amount of capital
investment and project duration. Part of the hindrance of completion of a project is delay. According
to Abd El-Razek et al., delay in construction projects is considered one of the most common factors
that cause a multitude of negative effects on the project. In construction, a delay could be defined as
the time overrun either beyond the contract date or beyond the date that the parties agreed upon for
delivery of a project (Assaf, S.A. and Al-Hejji S., 2006). Delay is not new in construction projects. It
is so rampant and commonplace, and every stakeholder of a construction project wants to do away
with it. Yet, notwithstanding the aversion of these stakeholders, delays continue to beset project
completion.There had been many studies on the cause of project delays in construction ventures and
some of these studies recommended mitigation plans. Worth mentioning are studies of construction
delays in Malaysia (M.F Hamsori et. al., 2018), India (R. M. Mate & G. A. Hinge, 2015), Slovenia
(Srdić & Šelih, 2015), Iraq (Twana Ahmed, 2015), Iran (Samad Mohammad Ebrahimzadeh
Sepasgozar, 2008), Las Vegas Nevada (Tafazzoli & Shrestha, 2017), Turkey (D. Aydin & E.
Mihlayanlar, 2018) and Dubai (SHAIKH ASIF ABDUS SAEED, 2009). These researches concluded
that project delays are inevitable in construction ventures all over the world. Regardless of whether or
not project delays are inevitable, the fact remains that scientific mitigation of delays will continue to
be desirable to the industry.In this study, construction professionals in the selected construction
company within the City of Cebu were identified as main informants. These construction
professionals provided rich and in-depth perspectives on the impact and the causes of project delays.
After the causes of project delays were identified, the causes were ranked and the results were
analyzed.
2. RELATED LITERATURE
M. Rafieizonooz et al. (2012) recognized (1) lack of commitment; (2) inefficient site
management; (3) poor site coordination; (4) complexity in heritage and legislation; (5) lack of
estimation skills and skilled workers; (6) lack of communication between parties; (7) improper
planning; and (8) lack of clarity in contract as the most critical factors of Tehran’s construction delay.
The top five ranked causes of project delays in the research paper by Srdić & Šelih (2015) in
Slovenia are tabulated in Table 2.1 below.
Also, the top five ranked factors of delays in the study carried out by Hasmori, Ismail, Abas, &
Khalid (2018) in Malaysia are listed in Table 2.2.
The study of Tafazzoli, Mohammadsoroush (2017) revealed that the role of the owner was
significant in causing delays. Excessive change of order or commands by the owner (by reason of his
indecisiveness or otherwise) during the construction can derail the project schedule and unduly
lengthen construction time. Rani M. Mate and G.A. Hinge (2015) found that legal disputes between
various entities involved in the project, toothless delay penalties, delays in progress payment, delay in
the clearance and delivery of the site to the contractor and indecisive commands by owner during
construction are the top five causes of project delays in India.
Hoai, Lee and Lee (2008) concluded that most causes of delay and cost overrun of
construction project relate to human factors and management problems. Improving the abilities of the
managers and engineers will go a long way at mitigating and avoiding the cost overruns. Chan &
Kumaraswamy (1997) recommended continuous professional development schemes, thorough site
investigation, clearly defined roles and responsibility matrix, client brief, value management
techniques, and bridging the gaps in perception between the different groups are some of the measures
calculated to mitigate project delays, which in turn, will mitigate cost overrun. Effective site
management was observed as the key to improving construction project efficiency and productivity.
A carefully laid-out Delay Mitigation and Avoidance Plan can may be designed to help
construction companies overcome the causes of project delays. Muralidaran Ramabhadran (2018)
concluded that the most effective mitigation measures are detailed estimation, conducting
brainstorming, cost control considerations, procurement planning, mobilizing resources at the precise
moment of need and training of works. D. A. R. Dolage and T. Pathmarajah (2015) recommended that
the contractor must prepare a realistic work program in such a way that it is commensurate with his
capacity taking into account realistic projection of critical construction works duration.
3. RESEARCH OBJECTIVE
The aim of the study was to reexamine the factors that lead to delay in project completion, as
identified in previous studies, and to determine the impact of these factors on project completion. The
research locus consisted of selected local construction companies in Cebu City. The factors previously
identified as causes of delays were ranked according to their impact, and recommendations were made
on how to mitigate and avoid delays in project completion.
1. What are the determinants that cause project delays in construction companies in regards to:
Management Factors, Financial Factors, Material and Equipment Factors, Quality Factors,
and External Factors?
2. What is the level of impact to the above mentioned parameters?
3. What mitigation plan can be recommended to management to lessen the impact or to avoid
these factors?
4. RESEARCH METHODOLOGY
The quantitative type of research was used, specifically the descriptive method. The focus of the
study was identifying the causes of project delays by means of collecting numerical data and
analyzing the level of impact of each cause.
A questionnaire with close-ended questions was used since it presents itself as a suitable tool for
drawing information from the informants. Questionnaires were distributed and each respondent was
required to score each cause outlined. The causes gathered were derived both from previous studies on
the subject and from initial observations on actual, ongoing projects.
Statistics is an indispensable tool for this study in the analysis and interpretation of the data
gathered. Respondents were asked to rate each factor using the level of impact of Likert-Type Scale
ranging from 1 to 4 (1 representing No Impact and 4 representing Very High Impact). The scores were
interpreted using the weighted mean. The weighted mean is a type of average for analyzing the weight
of each cause of project delays. As stated by Seirs (2010), the mean descriptive statistics where
measurements use graph, tables and general discussions further bring to light the full import of the
analyzed data. By using the weighted mean, the cause of project delays will be weighted and ranked,
and hence, their respective impact to project completion is approximated.
Where:
Σ = the sum of all variables
w = the weights.
x = the value.
This study examined the impact of causes of delay and 20 predefined factors.
estimation practices resulting in cost variance and cost overruns ranked 19th and poor site safety
program towards construction personnel ranked 20th.
The research findings revealed that fifteen (15) causes of delays exert Very High Impact on
project completion. They include: lack of financial liquidity, ineffective project planning and
scheduling, poor decision making by management, shortage of materials and equipment, changes in
design during construction, poor cost control, shortage of laborer/unskilled laborer, poor site
management and supervision, rework due to error during construction, insufficient quality awareness
and control, resource allocation and issues resulting from the handling of simultaneous projects, delay
in obtaining building permits, poor communication and coordination with other parties, untoward
accidents, and delay in progress payments by the client. Research data also revealed that five (5)
causes of delays exert Medium Impact on project completion. They include bad weather condition, old
and inefficient equipment, changes in material types and specifications, poor estimation practices and
poor site safety program.
Table 5.2: Average Weighted Mean and Ranked Major Group Causes of Project Delays
Average Weighted
Group of Factors Descriptive Equivalent
Mean
Quality Factors 3.53 Very High Impact
Management Factors 3.49 Very High Impact
Financial Factors 3.47 Very High Impact
External Factors 3.45 Very High Impact
Material/Equipment Factors 3.37 Very High Impact
Legend:
Scale Descriptive Equivalent
3.28 - 4.0 Very High Impact
2.52 – 3.27 Medium Impact
1.76 – 2.51 Low Impact
1.0 – 1.75 No Impact
6. CONCLUSIONS
This study has identified five groups of factors comprising previously identified 20 causes of
project delays, ranked according to their level of impact from the judgment of different construction
professionals who were currently working in construction projects in Cebu City, Philippines. The five
groups of factors that have the most significant component are: Quality Factors with the weighted
mean of 3.53 with the descriptive equivalent of Very High Impact. Quality consciousness and
conformance is very critical in executing construction plans because strict compliance of quality
standards tends to minimize rework. Management Factors emerged second, with the weighted mean
of 3.49 and the descriptive equivalent of Very High Impact. Management Factors such as effective
planning, accuracy of schedules, competent supervision, and efficiency of execution have direct effect
on project completion. This is followed by Financial Factors with the weighted mean of 3.47 and the
descriptive equivalent of Very High Impact. Financial Factors as a causal group is crucial because
the inability of a construction company in meeting its current and maturing financial obligations will
affect its capacity in acquiring urgently needed materials on credit. The fourth vital causal group is
External Factors with the weighted mean of 3.45 and the descriptive equivalent of Very High Impact.
Factors external to the company should also be monitored because they can also lead to time overruns.
Finally, Material and Equipment Factors with the weighted mean of 3.37 and the descriptive
equivalent of Very High Impact. Shortage of materials and/or lack of equipment is also a common
causal agent of delay.
The delay factors, it must be noted, do not operate independently of one another. Based on
the confirming interviews with the construction professionals and a number of related studies, a delay
factor can cause a domino effect; that is, one delay factor could activate another delay factor, which in
turn could trigger another. For example, poor quality consciousness could result to poor
communication, which in turn could result in erroneous specification of materials, which in turn could
result in rework. A schedule derailment could ripple to other activities that rely on the completion of
another. Also, some delays are a result of a combination of several delay factors. Some delay factors
are subtle and are barely noticeable, only to unravel themselves when they activate other delay factors
that are more manifest.
7. RECOMMENDATIONS
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[16] https://www.pna.gov.ph/articles/1057616
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