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International Journal of Construction Management

ISSN: 1562-3599 (Print) 2331-2327 (Online) Journal homepage: http://www.tandfonline.com/loi/tjcm20

A statistical approach to assess the schedule


delays and risks in Indian construction industry

G. Muneeswaran, P. Manoharan, P. O. Awoyera & A. Adesina

To cite this article: G. Muneeswaran, P. Manoharan, P. O. Awoyera & A. Adesina (2018): A


statistical approach to assess the schedule delays and risks in Indian construction industry,
International Journal of Construction Management, DOI: 10.1080/15623599.2018.1484991

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INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT
https://doi.org/10.1080/15623599.2018.1484991

A statistical approach to assess the schedule delays and risks in Indian


construction industry
G. Muneeswarana, P. Manoharanb, P. O. Awoyerac and A. Adesinad
a
Civil Engineering Department, CEG, Anna University, Chennai, Tamil Nadu, India; bStructural Engineering Division, CEG, Anna
University, Chennai, Tamil Nadu, India; cCivil Engineering Department, Covenant University, Ota, Nigeria; dDepartment of Building,
Civil and Environmental Engineering, Concordia University, Montreal, Quebec, Canada

ABSTRACT KEYWORDS
Construction projects are highly complex and dynamic in nature. However, its dynamicity sub- Construction; schedule
jects it to several delays and risks; before, during and after construction. Therefore, it is para- delay; fuzzy ranking;
mount to identify the possible sources of delays and risks so as to prioritize them. This study questionnaire; risk factors;
risk prioritization; relative
used a literature review and perception of construction professionals in the Indian construction importance index; tendering
industries to assess and prioritize delays and risks. Statistical analysis using relative importance
index and fuzzy ranking was employed to identify, assess, and prioritize delays and risks in the
Indian construction industry context. Inadequate schedule was found to be the most critical risk,
which constitutes a long-term problem in any construction projects. New risks were identified in
the tendering stage. It is anticipated that the result of this study would be a guidebook for all
stakeholders in the construction industry to assess and prevent any possible delay and risk in
their construction processes.

Introduction (1995) identified 56 factors that are responsible for


the project delays. The most significant of the factors
Delays in the construction process may be avoided or
are (i) approval of shop drawings, (ii) payment delays,
minimized when the likely causes are clearly identi-
fied. Schedule risk finds its own significance in any (iii) changes in design, (iv) conflicts among subcon-
construction projects as delay of schedule directly tractors, (v) slow decision-making and executive bur-
influence cost and profit margin of a project as well eaucracy and (vi) inadequate labour and required
as the brand image of a company. All clients are will- skills. In a related study, Assaf and Al-Hejji (2006)
ing to finish the project ahead of schedule by keeping examined 73 causes of schedule delay in Saudi con-
in mind business outcome expected from the project, struction industries. It was observed that most proj-
but in practice, almost all contractors find it difficult ects experience 10–30% schedule delays from the
to meet actual schedule committed in bidding time. original duration, which is an indication that delay is
Various studies have proposed different assessment a critical issue in any construction project. Also, their
and mitigation measures for schedule delay in a pro- study identified change order as the prominent cause
ject (Tah and Carr 2000; Wang et al. 2004; Tripathi of delay in projects.
and Jha 2018), where the gaps between theory and Chan and Kumaraswamy (1997) carried out a sur-
practice are addressed. vey to determine the relative significance rating of 83
Also, construction processes are also exposed to potential risk factors, these factors were grouped into
various types of risk. Several studies have identified 8 major categories for solving problems applicable to
and classified various risk factors experienced in the Hong Kong scenario. Kaming et al. (1997) in their
the construction industries. Among all the factors, study of 31 high-rise projects in Indonesian construc-
meeting schedule objectives is the most prominent tion projects, discovered that about 54% of construc-
(Aziz, 213). This is as a result of time being the main tion managers complete more than 90% of projects in
concern to constructors throughout the lifecycle of a time, about 15% of managers complete only between
project. In a bid to evaluate the causes of delays in 70 and 90% of projects, and about 30% complete less
large-scale construction in Saudi Arabia, Assaf et al. than 70%. Al-Momani (2000) did a quantitative

CONTACT P. O. Awoyera paul.awoyera@covenantuniversity.edu.ng


ß 2018 Informa UK Limited, trading as Taylor & Francis Group
2 G. MUNEESWARAN ET AL.

analysis of construction schedule delays using 130 could emanate from any of the following: cost centres,
public projects in Jordan. Several other authors devel- profit centres, or externals sources.
oped frameworks and models which could solve prob- Fuzzy ranking is one of the ways in which risk can
lems of schedule delay in their locations (Doloi et al. be assessed statistically; other methods include the
2012; Gunduz et al. 2013; Choudhry et al. 2014; Monte Carlo simulation, Pareto, Delphi, and Probability
Larsen et al. 2016; Kadry et al. 2017). analysis. Several studies have explored the use of Fuzzy
There are significant numbers of stakeholders on knowledge in quantitative risk analysis (Tah and Carr
any construction project; this usually makes the 2001; Tsai and Yang 2010; Abdelgawad and Fayek 2011;
assessment of delay and risk as a whole network a dif- Challal and Tkiouat 2012). Fuzzy knowledge representa-
ficult task. However, at the same time, these projects tion model was developed to support quantitative risk
offer the best environment for risk management analysis and a subsequent prototype software implemen-
study. Construction projects are faced with risks tation (Tah and Carr 2001). This includes a method of
which play a vital role in cost and schedule perform- ranking fuzzy numbers with total integral value method.
ance of a project. The project management body of The ranking incorporates both the left and right integral
knowledge (PMBOK) guide defines risk as a measure values, which represents the pessimistic and optimistic
of the probability and consequence of not achieving a viewpoints of the decision maker, respectively. A fuzzy
well-defined project goal. There are two primary com- set is a non-probabilistic method used in subjective
ponents that are associated with risks in a given modelling that overcomes the shortcomings (inability to
event. One is the probability of occurrence of that deal with uncertainty, and process inconsistent informa-
event, and another is the impact of the event. Over tion) of the probabilistic methods. Fuzzy approach is
the years, experience has shown that risk is inherently used due to the distinctive features of a project, lack of
present in most construction projects (Al-Bahar and data, and subjectivity. Ranking of fuzzy numbers was
Crandall 1990). Risks are becoming inevitable in the originally proposed by Jain (1976) for decision-making
construction projects, especially when complicated (Nejad and Mashinchi 2011), whereby ill-defined quan-
contracts govern construction processes. Risk factors tities are represented as a fuzzy set. However, Thorani
in the construction industry are identified based on et al. (2012) proposed a new ranking method for rank-
risk assessments or models/tools developed using ing crisp numbers, which are a special type of fuzzy
available information. Some of the methods used are numbers that is applied in relative important index.
relative importance index, descriptive statistics, and Use of relative important index and fuzzy ranking
factor analysis approach. Al-Bahar and Crandall in risk analysis has gained popularity over the years
(1990) proposed a risk model known as construction (Tran et al. 2012; Askari et al. 2014; Yang and Wang
risk management system (CRMS), which could be 2015). However, it has not been overly utilized for
used by contractors in identifying project risks and ranking and prioritization of risk factors in an Indian
systematically manage them. Several other authors construction context. Therefore, this study employs
have explored the risks variability in construction the use of relative importance index and fuzzy rank-
firms based on questionnaire evaluations with SPSS ing to assess the delay and risk, respectively, in the
and other promising statistical tools (Kangari 1995; Indian construction industry. These approaches are
Hameed and Woo 2007). In other related studies, risk deemed more suitable technique for vague and sub-
assessment models were developed using factors that jective assessment in decision-making environments.
have been identified to influence the smooth comple- This study is important as it assesses delays and ranks
tion of a project (Subramanyan et al. 2012; El-Sayegh critical risks in India construction industry. It is
and Mansour 2015; Liu et al. 2016). These studies anticipated that the result of this study would be a
showed that the risk of an improper design scheme is guidebook for all stakeholders in the construction
significantly associated with the risk of designers’ lack industry to assess and prevent any possible delay and
of responsibility and experience. In addition, inaccur- risk in their construction processes.
acy and delay of third-party information have a sig-
nificant negative impact on project performance.
Research methodology
Basically, delay and risk assessment and manage-
ment are used to meet project objectives related to This study utilized questionnaire data that was
cost, schedule, and quality. An entity responsible for obtained from construction manager’s feedback. The
the occurrence of any risk event is referred to as ‘risk questions input in the questionnaire were based on
responsible owner’ (Yoon et al. 2015). The entities delay and risk factors identified in the literature. The
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 3

RESEARCH METHODOLOGY

Existing Literature Study


Schedule delay and risk factors
Identification

Semi structured Interview


with Experts
Questionnaire Survey Preparation
incorporating Experts feedback

Survey circulation and Collection of


feedback

Analysis of data using relative importance


index method and fuzzy ranking of factors)

Mitigation measures for top critical delays


and risk factors identified

Figure 1. Research methodology.

Ã(x) expunged due to incomplete responses. Finally, data


obtained from 150 respondents, representing about 60%

of all respondents, were taken for analysis. The
respondent’s years of experience were between 5 years
and 25 years and above. On an average, each person
0 a1 a2 a3 a4 had handled a minimum of four projects independently
Figure 2. Trapezoidal Fuzzy number. in their career, which shows that feedback provided by
respondents are collective reliable experience based on
feedbacks are further analysed using different statis- 600 construction projects experience. Questionnaire sur-
tical methods. The methodology followed is simplified vey has been performed through various modes like
on the chart shown in Figure 1. hardcopy, email, Google forms and in-person interviews
for some managers who were nearby.
Factors identification
Delay and risk factors selected from past studies were Relative importance index (RII) approach
classified into six categories. The categories are (i) Relative importance index method of analysis was
financial, (ii) design, (ii) execution, (iii) management, used to find the important sources of delay in con-
and (iv) political and safety. Factors matrix table is struction projects. The 5-point Likert scale was used
prepared with author details to cover the frequency of to ascertain the relative importance index for all the
factors used by different authors in different locations risk factors that contribute to schedule delay in India
construction industries. The analysis of the data cap-
Survey tured from questionnaire survey was in line with that
used in earlier studies (Kometa et al. 1994; Aibinu
Based on the factors identified through literature
and Odeyinka 2006; Sambasivan and Soon 2007). The
review, a questionnaire was developed. Questionnaires
were administered to various construction companies studies adopted relative importance index (RII) for
in all regions of India. Since construction site manag- measuring the various causes of delays. A 5-point
ers play a crucial role in any construction project, the Likert scale ranging from 1 (very low important) to 5
respondent for the questionnaire was decided to (very high important) was utilized. But the relative
include project manager, planning, quality, safety, and importance index (RII) is calculated as
execution managers. All managers are referred to as Xn
Wi
construction site managers. Total of 50 construction RII ¼ (1)
i¼0
AN
companies was selected from various regions of India.
A total of 250 participants in the survey were tar- where Wi is the total sum factors, A is the highest
geted, but only 195 respondents turned-in within the weight and N is the total number of respondents for
stipulated time. Feedbacks of 45 respondents were every variable
4 G. MUNEESWARAN ET AL.

Fuzzy approach Table 1. Linguistic classification for risk factors (adapted from
Thorani et al. 2012).
Fuzzy numbers were formulated based on the general- Probability of Trapezoidal
ized trapezoidal

method as described by (Chen et al. occurrence Impact of risk fuzzy numbers
2006). Thus, A¼ (a1 ,a2 ,a3 ,a4 ; wA~ ) and are shown in Very rare (VR) Very low (VL) (0, 0.1, 0.2, 0.3; 1)
Rare (R) Low (L) (0.1, 0.2, 0.3, 0.4; 1)
Figure 2. The membership function lA~ (x): R ! [0, 1] Often (O) Moderate (M) (0.3, 0.4, 0.5, 0.6; 1)
is defined as follows: Frequent (F) Serious (S) (0.5, 0.6, 0.7, 0.8; 1)
8 Very frequent (VF) Critical (C) (0.7, 0.8, 0.9, 1; 1)
> xa1
>
>  wA~ ; x 2 ða1 ; a2 Þ
>
< a2  a1 w ~ ; x 2 a ; a
>
ð 2 3Þ
lA~ ðxÞ ¼ xa
A
>
>
4
 wA~ ; x 2 ða3 ; a4 Þ
>
>
: a3  a4
>
0; x 2 ð1; a1 Þ [ ða4 ; 1Þ
(2)
Here, a1  a2  a3  a4 and wA~ 2 [0,1]
Real numbers are used as the elements of the gen-
eralized trapezoidal fuzzy numbers xeR, and its mem-
bership function lA~ (x) is a regular and continuous
convex function. This implies the membership degree
to the fuzzy sets –1 a1 a2 a3 a41. Then, A ~ is
taken as the normalized trapezoidal fuzzy number,
meaning that, if wA~ ¼ 1, then A ~ is the trapezoidal
fuzzy number (a1, a2, a3, a4); if a1< a2¼ a3 < a4, Figure 3. Professional work experience of respondents.
then A ~ will be reduced to a triangular fuzzy number.
If a1¼ a2¼ a3¼a4, then A ~ is reduced to a
real number.
Using method of incentre of centroids (Thorani in both probability (P) and impact (I) form can be
et al. 2012), Equation (3) defines the ranking function calculated as:
~ ¼ (a, b, 
h i
of the generalized trapezoidal fuzzy number A 1   
F ij ¼ F ij1 þ F ij2 þ . . . :: þ F ijk (4)
c, d; w), which also maps the set of all fuzzy numbers
 k
to a set of real numbers. Crisp risk rating R (A) of Equation (5) is used for calculating the fuzzy risk
each influencing factor was calculated by using rating of each risk factor:
Equation (3). The linguistic classification used for risk    
factors are presented in Table 1. Risk Rating ¼ F ij P  F ij I (5)

RðAÞ¼ x0  y0

a aþ2b
3 þb 3 þc 3
bþc 2cþd
a w þ b w3 þ c w3 Results and discussion
¼  3 (3)
aþbþc aþbþc Survey
Figures 3 and 4 show the profiles of the questionnaire
respondents. More than half of the respondents have
Risk rating over 15 years employment in the construction indus-
The concept of fuzzy arithmetic operation is applied try. The sector of the construction industry in which
to form aggregation rule for translating 150 the respondents work varies from buildings, transpor-
Construction Managers individual decisions into com- tation to power construction. Approximately 45% of
bined (aggregated) preference. Aggregation involves the respondents have work in projects valued at 75
combining the fuzzy sets to form a single collective million US dollars.
preference fuzzy set, such as, if k is the number of
construction managers (CMt where t ¼ 1,2 … k,), who
Risk and delay assessment
are responsible for assessing m risks (Ri, i ¼ 1 … ., m),
with corresponding n risk factors

(Fi,j¼ 1,2 … n) . The Risk and delay factors are ranked based on relative
aggregated fuzzy preferences (F ij) of each risk factor importance index method, and the ranking is
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 5

Figure 4. (a) Value of projects respondents have carried out. (b) Construction sector of respondents.

Table 2. Relative importance index for risk factors.


Factor Risk factors Category RII Rank
F48 Unrealistic cycle time taken for some tasks in schedule during bidding time Tender related 0.915 1
F34 Inadequate experienced labour Labour 0.907 2
F20 Lack of design engineers experience in construction projects Design 0.894 3
F10 Poor relationship and ego between teams plays critical role in delay of activities Contractor 0.891 4
F7 Ineffective project planning and scheduling Contractor 0.886 5
F32 Low efficiency of equipment Equipment 0.880 6
F9 Lack of talented people for handling jobs at site Contractor 0.878 7
F26 Poor procurement system Materials 0.875 8
F39 Change in construction methodology at later stage due to constraints Construction methodology 0.874 9
F36 Low productivity of labour Labour 0.867 10
F49 Past projects failure history and lessons not taken in to consideration during tender scheduling Tender related 0.862 11
F13 Poor communication and coordination between owner and consultant Contractor 0.856 12
F47 Tendering team less experience on similar projects of tight schedule Tender related 0.853 13
F4 Delay in approving GA alignment/architectural layout Client 0.851 14
F42 Less productivity achievement at site due to new construction techniques Construction methodology 0.846 15
F11 Rework due to errors Contractor 0.840 16
F3 Slowness in decision-making Client 0.830 17
F16 Poor communication between contractor and client Design Consultant 0.802 18
F41 Less experience of design team in new construction methods Construction methodology 0.800 19
F35 Shortage of labour Labour 0.795 20
F15 Lack of consultant experience on similar projects Design Consultant 0.794 21
F23 Design approvals delays Design 0.789 22
F51 Less team members handled more tender jobs simultaneously leads to mistakes in considerations Tender related 0.781 23
F46 Client provided tight schedule for project Tender related 0.779 24
F8 Poor site management and supervision Contractor 0.773 25
F45 Damage in permanent structure due to mistake in consultant design by underestimating construc- Construction methodology 0.773 26
tion loads
F31 Equipment allocation problem Equipment 0.768 27
F29 Shortage of equipment Equipment 0.766 28
F6 Delay in land acquisition and hand over Client 0.765 29
F50 Poor investigation at the time of tender and taking client data for design without verification Tender related 0.749 30
F21 Unclear and inadequate details in drawings Design 0.747 31
F12 Frequent change of subcontractor Contractor 0.720 32
F19 Design changes by owner or his agent during construction Design 0.682 33
F30 Frequent equipment breakdowns Equipment 0.646 34
F1 Delay in progress payments (funding problems) Client 0.643 35
F38 Conflict within the labours Labour 0.616 36
F43 Construction drawings delivery time by design team Construction methodology 0.613 37
F33 Due to wrong handling of equipment Equipment 0.608 38
F37 Labour strikes Labour 0.606 39
F2 Change orders. Client 0.600 40
F25 Late delivery of materials Materials 0.598 41
F27 Escalation of material prices Materials 0.595 42
F14 Delay in approving major changes in scope of work by consultant Design Consultant 0.594 43
F40 New construction technology first time application in project Construction methodology 0.590 44
F18 Delay in performing inspection and testing Design Consultant 0.589 45
F17 Inadequate project management assistance Design Consultant 0.584 46
F24 Shortage of construction materials Materials 0.579 47
F44 Damage in permanent structure due to mistake in construction method Construction methodology 0.576 48
F22 Complexity of project design Design 0.573 49
F28 Changes in material types and specifications during construction Materials 0.571 50
F5 Poor communication and coordination between consultant and contractor Client 0.550 51
6 G. MUNEESWARAN ET AL.

Figure 5. Relative importance index for factor categories.

presented in Table 2. RII greater than 0.80 is consid- F7-Ineffective project planning and scheduling
ered as most important factors governing the schedule (RII-0.886) – Effectiveness of project planning team
for a project (Chan and Kumaraswamy 1997). Most will decide the schedule success in any project. Proper
critical factors are briefly discussed below based on coordination with all teams will ensure ease progress
the understanding of factors. Average values of factors of the project.
are taken for assessment of relative importance index F32 – Low efficiency of equipment and less prod-
of each category as shown in Figure 5. uctivity (RII-0.880) – Construction equipment hired
F48-Unrealistic cycle time taken for some tasks from subcontractors should be of required efficiency
in schedule during bidding time (RII-0.915) – Cycle during operations. Inefficient or unavailability of
time considered in bidding play a key role in resource equipment can halt or delay the progress of
planning and allocation for projects. Changes in the construction.
actual planned cycle lead to a shortage of resources F9 – Lack of talented people for handling jobs at
(i.e. workforce, equipment, etc.). For bid submission a site (RII-0.878) – For successful execution and
purpose, tight schedule with assumed cycle time is completion of the project. Skilled personnel will pro-
sometimes unrealistic in some cases. This has been mote the quick execution of the project while doing
noted by some other authors as well (Gładysz et al. an effective job.
2015; Roy et al. 2015; Jayasudha and Vidivelli 2016). F26 – Poor procurement system (RII-0.875) –
F34 – Inadequate experienced labour (RII-0.907) – Effective procurement system should be available for
Labour availability is the major problem faced by a project to become successful in practice.
many projects. In addition, some construction proj- F39-Change in construction methodology at a
ects require advanced skilled personnel which is most later stage (RII-0.874) – deviation from planned exe-
time unavailable or expensive to get. This has resulted cution techniques during the course of a project will
in schedule delay and low productivity. lead to a schedule delay. This schedule delay is usually
F20 – Lack of design engineers experience (RII- as a result of non-availability of materials or equip-
0.894) – Design engineers recruited in consultant or ment required for the new technique.
contractor’s office should have required skills to carry F36 – Low productivity of labour (RII-0.867) –
out the job in a timely manner. This would ensure Poor estimation of the capability of the workers and
timely processing of design submissions which would equipment can lead to low productivity. Therefore,
ensure that projects can be started on the proper prediction of the possible productive output
planned dates. must be made to avoid any schedule delays.
F10 – Poor relationship and ego between teams F49 Past projects failure history and lessons not
play a critical role in the delay of activities (RII- taken into consideration during tender scheduling
0.891) – This factor is associated with the interper- (RII-0.862) – Construction stakeholders are meant to
sonal relationship between different stakeholders in a learn from past mistakes done in previous projects.
construction project. An outstanding relationship However, this is always ignored and current projects
between the stakeholders would ensure that objective are also exposed to the same type of mistakes exposed
of the projects are well understood and would prevent to earlier. It is essential to take note of this past fail-
any possible delay. ures and mistakes as early as when the tendering is
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 7

Figure 6. Fuzzy ranking of risk factors.

Figure 7. Percentage of risk for different categories of factor.

done, this would prevent any possible delay during F47-Tendering team less experience on similar
the course of execution of the project. projects of tight schedule (RII-0.853) – Contractors
F13 Poor communication and coordination tendering team engineers who are involved in the bid-
between owner and consultant (RII-0.856) – ding of projects should have suitable experience on
Communication gap between project stakeholders is tight schedule projects. That experience brings visual-
one of the key factors identified, and this is a com- ization of problems expected in the execution stage.
mon problem faced in many projects. This factor F4 Delay in approving GA alignment/architec-
indicates poor communication skills of Contractor tural layout (RII-0.851) – General arrangement lay-
between client and consultant. If client inputs are not out for any project should be approved by the client
properly conveyed to a consultant there will be mis- in time, if any delay in approval of GA or
understanding and problems created in work progress Architectural layout initially by the client will have
at the site. implication in schedule progress.
8

Table 3. Risks factors from literature review.


(Al-Bahar (Yang (Tsai (Challal (Odimabo (Tipili (El-Sayegh (Choi
Risk and (Mulholland (M. Wang (Nasir (Jintanapakanont (Fang (S. Wang (Hameed (Tang (Zou (Lam (Loosemore (Sun (Zhou and and and (Karim (Gunduz and (Ismail and and and (Larsen Interview
Factors/ Crandall (Kangari and Christian and Chou et al. and et al. et al. and et al. et al. et al. and (Abd-El-Razek et al. et al. Wei, Yang, (Dey Tkiouat et al. et al. (Aziz Oduoza et al. Ilyasu (Jaber Mansour Mahadevan et al. with 10
Authors 1990) 1995) 1999) 2003) 2003) Ghosh 2004) 2004) 2004) Woo 2007) 2007) 2010) 2007) McCarthy 2008) et al. 2008) 2008) 2008) 2010) 2010) 2012) 2012) 2012) 2013) 2013) 2013) 2014) 2014) 2015) 2015) 2008) 2016) Experts Frequency
RF 33 23 85 28 59 59 45 28 31 32 85 16 23 32 57 50 30 60 21 54 25 83 99 44 35 19 63 33 48 26 33
F1               13
F2        6
F3              12
F4 
F5        7
F6              13
F7         7
F8        6
F9               13
F10      5
G. MUNEESWARAN ET AL.

F11  1
F12      4
F13 
F14   2
F15    3
F16                 15
F17    2
F18             12
F19     4
F20     3
F21                  16
F22           10
F23         8
F24     3
F25           10
F26 
F27 
F28     4
F29       5
F30    2
F31         8
F32   1
F33    2
F34   2
F35  1
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 9

Table 4. Category and description of risk factors.


Risk factors Description of risk factors
Execution risks F1 Inadequate schedule Under estimated schedule /Schedule delay
F2 Poor decision-making during construction Dynamic decision-making skills are absent
F3 Non availability of resources Material/manpower/equipment not available
F4 Timely permissions for execution Permission for execution of work at all levels in team should
be provided at right time.
F5 Design changes and hold in work at site Due to change in design, work will be stopped
F6 Varied labour and equipment productivity Non consistency in labour and equipment productivity
Design risks F7 Late modifications of design by client Due to changes made by client/owner at later stage of con-
struction will have implication
F8 Inaccurate site investigations (Geotech, Survey) Design using assumption without accurate site data.
F9 Defective design Mistake in design by consultant
F10 Poor coordination of design (Structural, Mech, Poor coordination between all design team made delay in
and Electrical) approvals/submissions
F11 Rush design and Overconfident in design Due to work pressure design consultants may make mistake
during rush design and overconfident.
F12 Lack of experience of design team in construc- Concern working team in project and team leader should have
tion projects required similar project experience to handle project and to
meet submission schedule.
Management risks F13 Lack of organizational commitment in Controlling project risks should be there as part of project
risk management objectives by management.
F14 Changes in management ways and Top management changes in company will have change in
new management thought process in taking risks
F15 Submittal and approval process control Management should have control on consultant and sub-con-
tractor schedules
F16 Poor project strategies /control Strategies should be formulated project specific based on
uniqueness of project location and cost and same should
be controlled properly.
F17 loosing of talented staff at crucial point of Project manager or design manager who handled project left
construction organization due to some reasons will have implication on
project quality and Schedule.
F18 Coordination between design firms, subcon- Consultants and sub-contractors should be managed well till
tractors and others the project is commissioned
Financial risks F19 Errors in bids / quotations Mistakes during tendering of project
F20 Fluctuations in estimated finance Estimated project cost is exceeded due to some reasons will
than expected made financial problems during execution
F21 Price Inflation Price increase will have implication on profit margin
F22 Delayed payments on contract Payment delay will impact on cash flow of project
F23 Financial failure of contractor Contractor failed financially
F24 Subcontractor payments in time Releasing payments to sub-contractors in time and manage-
and management ment of them will make project success
Political risks F25 New government act or legislations Due to new policy or act by government construction projects
already commenced will be affected
F26 Pressure from political body Local pressure from politicians for using subcontractor
F27 Local bodies compelling to use resources Some regions local bodies will compel to avail materials or
Equipments from them which may be of inferior in quality.
(Example. Cement, bricks etc.)
F28 Insecurity and crime Political instability would inhibit the progression of a prokect
F29 Bribery and corruption Bribes for approval process
F30 Lack of rigorous enforcement of safety Poor control of safety rules and regulations by safety manager
regulations
Safety risks F31 Occurrence of accidents Accidents due to poor safety practices
F32 Contractor ignoring safety under sched- Construction projects always be in pressure by nature will
ule pressure leads to less concentration of safety measures as everyone
will focus on milestone
F33 Poor safety consciousness of workers Most of workers are less conscious even though enough safety
norms advised and trained
F34 Lack of PPE In some projects PPE availability will be less since planning
is poor.
F35 Excessive overtime work for labour Labour working hours will have relation in Safety as they are
overloaded which made them to not followed safety norms
all time.

F42 Less productivity achievement at site due to Risk prioritization


new construction techniques (RII-0.846) – New con- Various risk factors identified from the literature are
struction techniques first time application in projects presented in Table 3 and a brief description of the
will take some time for normalizing the process, ini- risk factors is presented in Table 4. RF in Table 3
tially, the project team will suffer in achieving indicates the total number of risk factors considered
the schedule. in earlier studies by different authors.
10 G. MUNEESWARAN ET AL.

This stage of the study identified 35 risk factors or idle time in a project which will save time
from past studies as shown in Table 4 and Figure 6, and cost.
and based on fuzzy approach risk factors were ranked. Non-availability of resources (F3) – Due to
Top 10 critical risk factors identified are briefly resource non-availability in project site work got suf-
discussed below based on factors understanding. fered in many locations, equipment will be available
Figure 7 shows the risk percentage of different fac- whereas skilled labour for operating the same will be
tor categories. a shortage. Some projects labour and equipment will
Inadequate schedule (F1) – First and most critical be there but cement or sand availability in the market
risk identified is the inadequate schedule which was a will be demand. Labour, material, and equipment all
long-term problem in any construction projects faced are interrelated all resources should be available at the
by most of the contractors and the same is reflected required time in the project to achieve the pro-
in feedback provided by construction managers. ject schedule.
Contractors ignoring safety under pressure (F32) – Subcontractor payments (F24) – Proper payment
This factor related to human life which is not compen- of subcontractor is directly linked with a supply of
sable as directly related to the life of an individual and labour, material and construction progress at the site.
safety of the employee. Due to concentration in meeting Sub-contractors can accept late payments to some
schedule requirements which may be already delayed, extent of his capability only.
team focus on safety aspects reduced. This factor was Loosing of talented staff at the crucial point of
indirectly governed by the schedule of the project. construction (F17) – Nowadays retaining a talented
Timely permission for execution of work (F4) – employee in the industry is critical requirements for
Third factor is permission required for carrying out any company. Employee satisfaction is a more
work. In some projects waiting time for permission to important factor to achieve the good results in proj-
take up the task also considered as one of the key risks. ects. This is one of hidden risk in construction. If tal-
If timely permissions not granted by a respective team ented staff who control projects for few years
like the design, planning, procurement etc. Each team suddenly left organization will have an impact on
might have different Justification for not giving permis- project delivery.
sion but the client may not agree on all reasons. So Bribery and corruption (F29) – Bribery plays a
there should be proper planning by all teams which will crucial role in government approval process for gov-
allow reasonable waiting time for clearance. ernment projects and bill clearance/approval by the
Inaccurate/Insufficient site investigation (F8) – government. Corruption meant here is dishonesty or
Site investigation is the first step in any construction fraud activities during the course of the project by
projects which will go in parallel along with design any member of the project team.
approval process. The construction industry is not Late modifications of design by the client (F7) –
like manufacturing industry where there is a chain of Due to changes by the client at later stage new design
activities one by one only possible. In construction approval process will be initiated and considerable
industry design consultant supposed to start the time will be consumed for rework, but resources
design with few data available or based on tender planned will be idle at the site. This is considered as
data which contractor will verify in execution stage one of the key risks in the construction industry.
during the course of work only. If consultant wait for
complete Site investigation approval will be delayed.
Conclusions
Very old and big companies also lose enough money
due to this risk factor. Poor judgment of soil data or This study focuses on the use of relative importance
just to save some money, investigations costs are cut index and fuzzy ranking to assess the schedule delay
down as against the minimum code requirements and risk in the Indian construction industry. Various
which in turn create dangerous effect over a period. delays and risks were identified, assessed, and priori-
Based on the quality of Geotech vendor results will be tized, which would serve as a guidebook for stake-
accurate or poor. Less accurate and fewer data consid- holders in the Indian construction industry.
ered for design and assumption will have worst effect Based on the risk prioritization, inadequate sched-
in some projects. ule was found to be the most critical risk, which con-
Poor decision-making during construction (F5) – stitutes a long-term problem in any construction
during construction, Site Managers should be well project. New risks were also identified in the tender-
equipped in decision-making skills so that no waiting ing stage. It was observed that delays and risks
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 11

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140(7):04014020.
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Dey P. 2012. Project risk management using multiple crite-
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ria decision-making technique and decision tree analysis:
authors also wish to thank the anonymous reviewers for
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their thoughtful and valuable feedback that has improved
23(12):903–921.
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Disclosure statement construction projects. Constr Manag Econ. [Internet].
30(10):869–884. Available from: doi:10.1080/01446193.
No potential conflict of interest was reported by 2012.717705
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ORCID Fang D, Fong P, Li M. 2004. Risk assessment model of ten-
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