Presentation on theme: "Delays and the consequences and time management"— Presentation transcript:
1 Delays and the consequences and time management Luise LorenzChristina Mohr
2 DELAYSCompletion of a project in time and within budget is a common goal of contractor and clientDelays failure of budget disputes (time = money)Delayed completion of work compared to the planned/contract schedule (= loss of time)It’s possible to make up time by working faster or rearranging the work sequenceContractor related delays are the most significant ones
3 GENERAL REASONS FOR DELAYS Delays can be caused by one or more of the following agencies:Client and his team-matesContractor and his team-matesNature (i.e. earthquakes)Due to a third party (i.e. strike)
4 SOME REASONS FOR DELAYS faults in documents, designs or decisionsinsufficient number of equipmentinaccurate cost or time estimationpoor site management and supervisionshortage of construction materialsincompetent project teamcontractor’s/client’s financial difficultiesetc.
5 TYPES OF DELAYThe following types of delay help to determine the impact of a delay on the project.critical or non-criticalexcusable or non-excusableconcurrent or non-concurrentcompensable or non-compensable
6 1. CRITICAL or NON-CRITICAL Critical delays:the delay interferes with the total time frameNon-critical delays:the delay does not interfere with the total time frame
7 2. EXCUSABLE or NON-EXCUSABLE Excusable delaysdelay caused by the client, e.g. the owner denies access to the sitedelay caused by strike, fire, unusual weather etc.Non-excusable delays:delay caused by the sub-/contractor, e.g. not enough manpower on site to complete the job in time
8 3. CONCURRENT Concurrent delays: two or more delay events occur at the same time or overlap to some degreeat least one of the delays has to be caused by the contractor and one by the clientNon-concurrent delays:delays do not overlap
9 4. COMPENSABLEthe client’s failure to coordinate several prime contractorsthe client’s failure to provide adequate access to the projectchange orders placed by the clientany interference by the clientdelays caused by a third party under the control of the client
10 CONSEQUENCESThe claim depends on the cause of the delay, which must be identified. Therefore the responsibility is being clarified.Possible Claims:Time extensions (for the contractor)Financial compensations (for client and contractor)
11 FOLLOW-UP For the client: For the contractor: Delay in use of project Capital is blockedEscalation in subsequent investmentFor the contractor:Delay in getting profitIdle of resources (machines, workers etc.)Productivity loss due to uncontracted work period
12 MINIMIZING DELAYS Identifying the cause that led to the delay Providing enough financial resourcesCompetent project managementResource availabilityFrequent progress meetingsChoosing the right (experienced) consultants, suppliers and contractorsAccurate cost estimationetc.
13 TIME MANAGEMENT Part of the construction budgeting process Project management team determines the amount of time which is needed for the projectDetermining the amount of man hours and employeesMajor role for cost estimation
15 ReferencesSingh, P. (n.d.). Delay in construction project and its consequences. Retrieved from and-Its-ConsequencesIbbnu Abbas, M. (2006). Causes and effect of delays in aceh construction industry. Retrieved fromCooke, B., & Williams, P. Construction planning, programming and control. Wiley-Blackwell.