Analysis of Critical Delay Factors Causing Cost Overrun in Private Projects and Their Cost Minimization Strategies

Abstract

Delay and cost overrun are amongst the most concerning factors in the construction sector. Nearly every project in construction is impacted by certain factors of delay, these delay factors are either mitigated or accumulated to result in the delay of overall project duration and cost overrun. As there are enormous delay factors in construction so it is essential to find those factors which have a higher percentage of occurrence and impact. Also delay factors in any project caries with the typology of construction, type of contract, and project location. So, the study focuses on the delay factors which are critical in private construction projects (primarily Housing) in India and the cost overrun resulting due to them. Data on delay factors are gathered using a questionnaire survey among clients, consultants, and contractors, whereas data on cost overrun due delay factors are obtained through 4 case studies majorly in and around Delhi NCR. The analysis of causes of cost overrun involves 33 common factors identified through the literature and primary data on these factors was collected through questionnaire and site study to validate the top 10 critical delay factors. The result of the study shows that deficiency in planning and scheduling of the project, Delay of financing and payments by the owner, Poor communication and coordination with other parties, Poor site management and supervision, Late Delivery of Material and equipment are the prominent delay factors encountered. RII for each delay factor is calculated and ranking for each delay factor is done for RII number against each parameter. The data on the direct cost of delay is calculated by considering the parameters of cost of labour, equipment/ machinery, materials, and indirect cost is calculated by considering a multiplication factor. Also, the research tries to identify and analyses the mitigation measures for each delay factor through analysis of case studies which can be applied in other projects of the same category.