A Study on Causes of Non-Excusable Delays and Excusable but Non-Compensable Delays of Road Construction Projects (Case Study in Selected ERA Projects)

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Date

2017-12

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Publisher

AAU

Abstract

Construction delays are occurring in every phase of a construction project and are common problems in construction projects in Ethiopia. Moreover, hence determining the contractual responsibility of delay is the major causes of project failure and the most likely source of dispute in construction projects. If the delay is not identified and the corrective project management decision is not taken in time a project may incur extra cost and extension of project time, which gives rise to dissatisfaction to all the parties involved and nowadays it’s becoming a major obstruction for their development for developing countries like Ethiopia. Therefore, this research was carried out to dig-out information on the factors that causes nonexcusable and excusable but non compensable delays of construction companies contracted to Ethiopian Road Authority in order to improve time performance of the project by managing better these causes. The scope of the research is selected ERA’s projects which are completed or being executed by these contracted companies. Having this, the research assess and observes the problems in relation to such projects with respect to their project performance, delay justification, data recording and documentations, suitability of conditions of contract and approaches of determination and assessment in different head of claim. So that; it identifies and understand gaps (problems and challenges) in considering and managing these causes of non-excusable and excusable but non compensable delays in road construction projects. The methodology adopted in undertaking this research was the mixed approach involving a detailed review of the relevant literature followed by questionnaire survey and interviews to investigate the variables identified in more depth. Questionnaire surveys together with desk study were used to collect data on different delay factors and causes of the delay occurred. As a result, this research first identified 10 key delay factors causing delay in Ethiopian road construction projects, and then 86 the most common and critical causes of construction delay were evaluated by using the methodology adopted in the field. The findings therefore show that 13.33% of the causes of delays from the case study is considered as non-excusable delays are inadequate planning and scheduling by contractor and poor site management and supervision by contractor; The other 20% of the case analysis are found as excusable-non-compensable delays which are caused by external factor those includes suspensions due to adverse weather conditions, delay due to currency adjustment factor and suspension of works due to discovery of landmines. The remaining 66.67% of the causes are identified as excusable-compensable delays. In addition, contractor related factor, equipment related factor and material related factor are the most critical factors; whereas external factor is moderately critical factor as perceived by the respondents that need to be considered as causes of non-excusable delays and excusable but noncompensable delays in road construction based on this study. Although, from such major delay category it is found that, seven causes perceived by client as most critical are: (1) sub-contractor, (2) contract management, (3) labor productivity, (4) site management, (5) equipment availability and failure, (6) inadequate contractor experience, and (7) late delivery of materials. Six causes as perceived by contractor as most critical are: (1) unusually severe weather, (2) sub-contractor, (3) shortage in material, (4) finance and payments of completed work, (5) late approval of payment, and (6) site management. The other five causes are perceived by consultant as most critical are includes: (1) poor coordination on site, (2) improper planning and scheduling, (3) construction methods, (4) quality in material, and (5) delay to provide the right of way. This paper finally came up with a conclusion report incorporating the different aspects of the project and provoked to give a solutions related to the findings that are disseminated to concerned parties towards reducing the impact of delays on road construction projects in ERA’s practice. Lack of willingness of professionals to complete and return the questionnaire, and difficulties to access documents related to delay claims was the limitation of this study. To this end, therefore it was decided to make this research as a stepping stone for further similar researches. It is due to these qualifications, I found this study adds something relevant to the area of development studies.

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Keywords

Non - Excusable Delay, Excusable but Non - Compensable Delay, Road Construction Project, Project Management, Performing Organization

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