A STUDY OF DELAY AND DISRUPTION MANAGEMENT IN CONSTRUCTION CONTRACTS

 

 

A STUDY OF DELAY AND DISRUPTION MANAGEMENT IN CONSTRUCTION CONTRACTS

 

 

 

 

 

 


Student Declaration

I do hereby declare that the present work is my own and every effort has been made to remain within the norms of the topic, with reference in the literature. 

 

 

 

 

 

 

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Abstract

It has been observed in the history that the industry of construction has been witnessing the delays and is a common incidence. Delay and disruption to construction contracts invariably involve either the Contractor, Employer or both with financial losses and considerable inconvenience. Delay and disruption are also the main challenges faced within the current construction projects. This delay and disruption in the construction projects are the subject matter that are the purpose of this dissertation following the potential risks that derive to look into the social, technical, economical, financial, legal and resource for construction. These typical delays in a project are due to some of the vulnerable conditions and some contractual errors that can be the main fault in the delay. This lead to the lack of professionalism within the industry and bad reputation for the contractors as many clients tend to follow the path of hiring foreign contractors due to the commitment and dedication towards the work. The aim of the paper is evaluate the time consequences to a construction project as a result of changes made to the main JCT & NEC contracts. This dissertation focuses on the impact of the management of the issues of delay and disruption upon the fulfilment of construction contracts within the remit of the law (Keane & Caletka, 2015).

The considered study is descriptive and will focus on the views from different consulting firms, construction firms, clients in regard to the delay in their construction projects. Purposive and responding sampling method will be used in this paper as sampling techniques in which the literature review will play a major part with respect t the questionnaire and interview that are used to collect the data.

Findings will disclose that the main reason for the delay and disruption are linked to the construction contracts (JTC and NEC), poor management, time overrun and costs. The study shall also provide a background on the case study of Carillion Construction Ltd v Woods Bagot Europe Ltd & Ors (2016), which relates to the two main issues; time extension and supplement agreement.

It is therefore recommended that time provisions and effect in relation to the contracts needs to be avoided in order to delay the possible completion of the construction projects.


Table of contents

Contents

1        Introduction. 6

1.1        Background. 6

1.2        Understanding Delay. 8

1.3        Case Study background. 8

1.4        Aims and objectives. 9

1.5        Methodology. 9

1.6        Structure of the dissertation. 10

2        Literature Review.. 11

2.1        Introduction. 11

2.2        Theories on Delays and Disruptions. 11

2.2.1        Delays. 11

2.2.2        Disruptions. 12

2.3        Construction Delays. 12

2.3.1        Previous researches on the causes of delays. 13

2.4        Types of Delay. 15

2.4.1        Excusable Delay. 16

2.4.2        Non-Excusable Delay. 18

2.4.3        Concurrent Delay. 19

2.5        Factors that can contribute to delay in construction. 19

2.5.1        Contractor’s Associated Factors. 20

2.5.2        Consultant’s Associated Factors. 24

2.5.3        Client Associated Factors. 25

2.5.4        External Factors. 25

2.6        Effects of Delay. 25

2.7        Different forms of contracts. 29

2.7.1        JCT (Joint Contracts Tribunal) 29

2.7.2        NEC (New Engineering and Construction Contracts) 30

2.7.3        Comparison of the NEC and JCT. 30

2.8        Case Study. 34

2.8.1        Background of the case. 35

2.8.2        Choice. 35

2.8.3        Final thoughts. 36

3        Conceptual Framework. 37

4        Research Methodology. 39

4.1        Research design. 39

4.1.1        Background of the Respondents. 39

4.1.2        Sampling size. 39

4.1.3        Sampling Techniques. 39

4.1.4        Data Collection Techniques. 39

5        Analysis and Findings. 41

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