Friday, October 4, 2019

Managing delay in construction project.

Hai all.

In my previous posting, we discussed on the reasons of delay. The three type of delay are due to contractor fault, Client matters and unforeseen external factor.

Now in this posting, our the question is how to manage delay in construction? The discussion here will focused base on why delay happened? Who's fault is it?

Delay due to contractor own fault. This type of delay as mentioned in previous posting, contractor will not be granted extension of time (should the construction work overshoot the agreed construction period). Instead, contractor will be panelised as allow in the contract.

Hence how to avoid the delay beyong agreed construction period and avoid being panelised? There are  three (3) major method can be applied.

1. Working longer hours
2. Increase manpower, machine, plants and equipment
3. Change the construction method.

However, prior to deciding on which method to be use, contractor have to keep in mind that when they in the delay mode the most important issue is time and reputation.

As the remaining construction period getting shorter, contractor need to speed-up their works and to ensure that they completed the construction project as agreed in the contract. Thus the cost to expedite the construction work will be the second priority to be achieved. Nevertheless, as much as possible, contractor need to stay within the contract value to ensure or minimised losses due to the delay.

Delay caused by client and by external factor. This type of delay is much more easy to dealth with. Most contractor will prefer to apply extension of time(EOT). However proper documentation must be in-place. Prior to EOT application, contractor shall fulfill all of the procedure as mentioned in the contract. Some of the procedure are, to serve notice to client and to keep and produce any documents that can proved the delay was originated from client. Apart from that, contractor need to proved that the event will and already affected the critical path of the project.