Analytic Study of Construction Delays
20 Pages Posted: 12 Apr 2019
Date Written: February 22, 2019
Construction is a commercial process which is very sensitive to changes and dependent on market parameters. It is because of these factors that changes are orders of the trade. Usually it is Time overrun that leads to Cost overrun because time is money; it is absolutely true in construction industry. The employer wants the construction to be completed as early as possible so that he can have the fruits of his investment and therefore he usually builds in a clause in contract suggesting time as essence of contract. In event of contractor failing to complete the work within the expected time, he would be liable to pay certain compensation which is designated as Liquidated damages.
There is hardly a project which can be performed as planned and as envisaged. The projects are programmed to be performed. However due to number of Reasons, the project are confronted with unanticipated situations resulting in delay. The project requires changes to be resolved and time to be compensated. The one single cause of dispute in differences between the parties to a contract revolves around the issue of compensation arising out of and related to time. In other words, Delay Damage Analysis is at the center of search for efficient contract management. In fact the construction management to a large extent is How to Analyze Delay Damages.
This study helps the construction manager to evaluate compensation for whatever the delays had occurred as also to evaluate the compensation to be recovered as and by way of liquidated damage. It is this study which provides the construction manager with data to grant extension of time as also to evaluate the extra amount payable by way of escalation.
In short analysis of delay damages is at the core of estimation of compensation payable or recoverable from either of the parties to the contract. However by study of various projects of infrastructures, it is observed that hardly any project has achieved time and cost parameters. It is also revealed from the various case studies that majority of the projects landed in litigations and major cause was time over run and there by additional cost on the project.
It is also observed that from study of cases and also by attending arbitration related to construction contracts that there is no systematic mechanism to monitor the delay caused on the project. Though project management system exists but is not scientifically developed to achieve the proper records of data and dates. During the research it is observed that in developed country they have scientific methodology to take care of Delay on completion of project and there by analyzing the same for the probable cost impact. This prompted to carry out research on this topic and develop or create awareness of use of any methodology which can reduce long and costly litigation.
Keywords: Construction Delays, Time Impact Analysis, Liquidated and Compensable Delay Days, Damage Relief
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