How to mitigate the delays in a project that is caused by contractor consultant project management and client in the construction industry as an integrated or interoperability focus

Introduction

The United Arab Emirates has attained tremendous growth in the construction industry. This growth has come with a unique set of challenges for the country in general and the construction industry in particular. One of these challenges is delays in projects. These delays are being caused by consultants, contractors, clients, as well as project management teams. At the same time, the progress of projects is being impacted on by tight construction time, multinational workforces, and unique architectural designs. Moreover, it has become increasingly common for multi-project arrangements to be put in place. This adds to the already complex issue of ensuring that unreasonable delays in project implementation processes do not occur.

Two main issues relating to focus tend to arise in any discussion on project management: interoperatibility and integrated focus. This paper will focus on integrated focus. It sets out to highlight the issue of delays in project execution in the UAE construction industry. In integrated focus, the objective is to ensure that all elements of the projects being implemented are being properly coordinated. To facilitate proper coordination, trade-offs among various competing aims, objectives, and alternatives have to be made. The aim of these trade-offs is to meet the needs and expectations of stakeholders.

To avoid delays, project managers must look into ways of bringing on board all those who are involved in the implementation process. For instance, employee must gain a sense of ownership in the process to ensure that they are motivated in all their day-to-day activities. The ability to integrate different project management components greatly contributes to the overall success of multi-project efforts.

The thesis of this paper is that the biggest delays in the UAE construction industry are caused by consultants involved in various projects. Therefore, it is necessary for a comparison to be made between the impact of consultants and those of clients, contractors, project management teams as far as project delays are concerned. The issue of integrated focus is also addressed.

Statement of the research aim

In the UAE construction industry, foreign contractors are locked in stiff competition over mega construction projects. This competition is a reflection of the high-stakes environment in which construction projects are being implemented in the country. Therefore, it is important to examine the all-important issue of delays in the implementation of some of these projects.

Many construction companies have been accused of not completing projects on time. One of the reasons given for these delays is the tendency to hire foreign designers and consultants (Sweis, 2008). Although competition has created exposure to best practices in the industry, it has failed to resolve the issue of delays. In most cases, best practices in the construction industry are measured on the basis of time, cost, and quality. Consequently, these factors exert a lot of influence in determining which companies are ultimate given tenders to implement various construction projects. This is one of the benefits of involvement by foreigners in the country’s construction industry.

Unfortunately, a negative aspect of this involvement has also emerged. Protracted contractual claims and disputes have become very common. Most of these claims and disputes arise whenever projects exceed their time and budget targets. In this paper, the scope is limited to the issue of time. In all construction engineering projects, any delay in project handing-over means that the deadline that the project parties had agree upon is overrun. From the perspective of the project owner, this means that some revenue will be lost. This is mostly common for projects belonging to governments. Moreover, the delays can cause huge inconveniences to contractors, who may also incur additional costs in addition to suffering setbacks through prolonged project delivery time and reduced productivity.

At the same time, clients may also contribute to delays in construction projects by failing to give out their opinion early enough. A major reason for failing to give out their opinions early enough is unfamiliarity the project implementation process. This may lead to big delays as well as wastage of resources.

Researchers have attempted to identify the reasons for major delays in construction projects (Zaneldin, 2006; Othman, 2005). When the project managers have no knowledge or experience in contract and procedural issues, delays are likely to occur. Similarly, major parties may either act or fail to act in certain manner as per their respective responsibilities, leading to massive project delays. It is also common for forces beyond the control of clients, contractors, and consultants to cause prolonged delays. Ameh & Ogundare (2013), reported that in Nigeria, housing projects face delays mainly because consultants do not submit complete drawings on time, instructions are not issued on time, response is often slow, and there is poor communication. All the issues raised in research are relevant in efforts to define a statement of research aim for this paper. They provide crucial information on the environments in which consultants always work and how their actions can exacerbate or mitigate delays in the construction process.

Not all delays can be attributed to clients, contractors, sub-contractors, and consultants. In some cases, delays occur during the handing-over of projects. This problem is very common in civil engineering projects. In every project cycle, efforts must be made to ensure that the impact of construction delays is assessed. Although the technological advancements of the modern era have enhanced the human understanding of project management, they are yet provided a lasting solution to the problem of project delays. It is common for completion dates for projects to be extended several times. Some of the reasons that project managers provide include poor organizational structure, shortage of materials, increase in overall project costs, and reworks due to poor workmanship. The problem that this paper sets out to address is that of identifying which of these reasons can be attributed to the role of consultants in the project implementation process.

Statement of the research question and supporting sub-questions

  1. How do consultants contribute to delays in construction projects in the UAE?
  2. How do clients, contractors, and project management cause delays in construction projects?
  3. How can integrated focus facilitate the avoidance of delays in construction projects in the UAE?

 

Literature review

How consultants contribute to delays in construction projects

The problem of delays in construction projects has become rampant in the contemporary world. Lack of experience in today’s mega projects, many construction companies suffer from the problem of poor organizational structure. They fail to adapt their traditional structures to the changing demands of mega projects, multi-project settings, as well as tasks that must be accomplished within very tight deadlines. Consequently, these companies end up revising project durations.

There is abundant literature on how consultants contribute to delays in construction projects. For instance, Sambasivan (2007) indicates that consultants are always in a better position to provide crucial information regarding the occurrence of delays in the construction process. If consultants fail to consult adequately with the client, contractors, and sub-contractors, misunderstanding is likely to occur, leading to long delays (Sambasivan, 2007). In Malaysia, for example, serious problems occur when these stakeholders fail to communicate well, leading to disputes, litigation, cost overrun, time overrun, and total abandonment (Sambasiva, 2007).

Odeh (2002) carried out a survey to determine the main causes of delays in traditional construction contracts. Consultants and contractors agreed that the main reasons included inadequate contractor experience, owner interference, labor productivity, financing and payments, improper planning, and interference by sub-contractors (Odeh, 2002). In contrast, Faridi (2006) found out that delays in the UAE construction industry were blamed primarily on slowness in the decision-making process of the owner, inadequate early planning, and approval of drawings. According to Faridi (2006), consultant and designer engineers have failed in their work of developing methodologies that can reduce the occurrence of delay problems. El-Razek (2008) examines the issue of delays from the point of view of not just contractors and consultants but also owners. The main causes identified by El-Razek (2008) include financing by contractor, decision by the consultant or owner to make design changes, partial payments, and failure by consultants and contractors to utilize professional management. These studies suggest that for delays to be avoided, a joint effort that is founded on teamwork must be put in place.

A number of studies also highlight the special position of the consultant in ensuring that a construction project is completed in a timely manner. Assaf (2006) found out that consultants were to blame for delays relating to the overall understanding of the project, its design requirements, and intended objectives. According to Noulmanee (2000), many delays occur because consultants do not communicate clearly information regarding the nature of project being implemented. Incidentally, such information is very useful in determine the type of contract to be established as well as the nature of the design.

According to Assaf (2006), consultant engineers often delay in conducting review and approval of design documents. Whenever these professionals do not review and approve design documents on time prior to the commencement of the construction phase, the progress of the entire project is likely to be affected (Assaf, 2006). Moreover, some consultants are inflexible in the way they evaluate contractor works (Assaf, 2006). Consequently, they fail to reach a compromise between high quality and cost.

Ford & Lander (2002) argue that strategic flexibility is a crucial requirement for consultants. These professionals must be able to maintain flexibility of operations in order to be able to deal with the challenges that come with project delays. This element of strategic flexibility also contributes to the maximization of project value (Ford & Lander, 2002). By being flexible, consultant engineers can recognize and manage uncertainty (Ford & Lander, 2002). Under current construction estimating and management practices, it is easy for projects to be undervalued. This normally happens when consultants are unable to take advantage of various project-related opportunities. In such situations, a contractor is likely to run out of funds to complete the project.

Ford & Lander (2002) argue that no matter how experienced a consultant may be, he will always encounter project uncertainties whose resolution does not depend on improved planning or description at the pre-project level. These uncertainties tend to exist regardless of how well the consultant has strategically selected the project. Ford & Lander (2002) suggest the use of “real options approach” as a way of assessing managerial flexibility as well as evaluating and selecting strategies. According to Ford & Lander, this approach can greatly improve management practices in the construction industry.

Walker (2002) also highlights the need for flexibility in terms of management action during construction time. The responsibility to oversee this flexibility rests with the consultant. He is the one who best understands the project by virtue of being a leader of the entire project planning process. This flexibility enables the project managers to overcome unexpected challenges. According to Walker (2002), the best way of evaluating the preparedness of construction companies as far as the ability to deal with unexpected problems are concerned is by focusing on the relationship between flexibility and planning. Rigid plans pose a major obstacle whenever unexpected delays start occurring. Consultants should put in place contingency plans at the pre-project stage to deal with these problems and mitigate delays.

There is a belief among contractors that most delays are caused by contract documents and incomplete drawings. According to Battaineh (2002), most delays originate from incorrect dimensions, inadequate and inconsistent detailing, and inability to prepare the requisite contract documents. These omissions lead to omissions in quantities and large margin of errors. In essence, it seems that consultants who fail to appreciate the design management process end up causing costly and frustrating delays.

Battaineh (2002) points out that lack of experience in the process of designing large construction projects is a major challenge for consultants today. This means that the consultant is unable to appreciate the complexity of the entire design. Inexperienced consultants may fail to appreciate the critical role of different design interfaces. This problem may be exacerbated by clients who view briefing by the consultant as a mere event that add little value to the project implementation process (Othman, 2005). Such clients may even refuse to allocate sufficient resources for the briefing process (Othman, 2005).

Edwin (2005) also emphasizes the critical role of the consultant as the person who takes over the design responsibility from the client or owner-organization. A design procedure system should be put in place to ensure that adequate provisions are made for issues of standard specifications and design criteria. Unfortunately, not all consultants put in place a design procedure system (Edwin, 2005). This means that project managers and engineers end up with no reference point as far as progress in consultation work is concerned (Edwin, 2005). This problem is common in the UAE, whereby engineers end up with little or no technical site experience at the commencement of the project despite the fact that they may have been working in the consultant’s office during the pre-project stage (El-Sayegh, 2008).

In other situations, the duties of structural engineers, architects, quantity surveyors, and design leaders tend not to be properly defined (El-Sayegh, 2008). This lack of precision in obligations and responsibilities of staff members creates serious problems in terms of contract conditions, drawings, specifications of projects, and bill of quantities. Conflicts among professionals are also likely to occur in such a situation. For example, conflicts between services and structural drawings may easily become the norm. Ultimately, the client may encounter difficulties in getting approval and other documentation from local authorities.

The need to mitigate delays in UAE construction industry

Between 2003 and 2009, many mega projects were launched in the UAE. As one of the countries with the highest growth rates in terms of business opportunities, the UAE has become a prime destination for many international investors (Chan, 2012). One of most recent mega projects is the $3 billion presidential palace project (Chan, 2012). The Palm Island project has also attracted media attention because of its massive scale. The expansion of Abu Dhabi International Airport at a cost of $2.5 billion also falls in the category of the country’s largest construction projects (Chan, 2012). With the recent increase in the commencement of major projects, the construction industry continues to occupy an increasingly critical role in UAE’s economy.

Assaf (2006) points out that the design process inevitably influences the way the entire project is implemented. Many consultants are likely to delay in submitting project designs owing to the complexities involved. All the stages of the project design have to be completed on time for the project to commence in a timely manner. Proper management skills are required on the part of the consultants to ensure that all appropriate details are put into consideration. The consultant must integrate his own creative preferences and requirements of the owner while at the same time ensuring that the goal of project constructability is attained. Failure to integrate all these components may trigger problems with the contractor or the client during the construction stages.

During the design stage, the consultant should be informed about the possibility of engaging sub-contractors in the project. In most cases, clients appoint specialist sub-contractors to handle specific aspects of the construction process (Le-Hoai, 2008). The consultant should ensure that these sub-contractors have the necessary skills to evaluate the entire project design in order to confirm that they can handle all the deliverables assigned to them. With such a complete information package in place, the consultant may be said to have played his part in ensuring that the construction process can be completed in a timely manner and in the most cost-effective manner.

In the UAE, cultural factors have a great impact on design management. To avoid disputes, clarification is always necessary to ensure that the client is satisfied with the cultural considerations to be put in place before the hand-over of the project to the contractor. In many cases, the consultant is best placed to anticipate cultural issues that may arise in the post-design phase. The ideal way of avoiding such problems is to cooperate with the client as much as possible during the formative stages of design management. Some of the main cultural issues affecting project implementation deadlines in the UAE include language barriers, formalities and protocols, wrong time estimates, and communication with the client.

The local environment in UAE may be challenging to outsiders because of its conservative nature. At the same time, an overwhelming proportion of the UAE’s workforce comprises of expatriates (Love, 2002). It may prove more challenging to facilitate communication on a day-to-day basis than the consultant may have anticipated. A majority of the workers may not understand the local language. They may also have problems communicating in any of the main international languages such as English and French. These problems may be exacerbated by historical and religious differences among employees. It may be too late for any contractor to do anything to reverse a phenomenon in which progress is hardly been made because of cross-cultural problems (Love, 2002). In contrast, through experience, a consultant designer may have the necessary knowhow to anticipate these challenges and set up contingency plans to mitigate them.

A number of suggestions have been made in literature to mitigate these problems. For instance, consultants are often encourages to learn the basics of both the local languages and one or two international languages. It may also be beneficial for them to interact frequently with members of the host country as well as other nationals as a way of acclimatizing to the country’s culture. A measure of creativity and experimentalism is also required in such a culturally sensitive country. Construction consultants must be aggressive enough to seek to understand local workforce problems. It may also be helpful for consultants, clients, and contractors to harbor realistic expectations regarding the people of the UAE and their culture.

How consultants can help mitigate disputes arising from delay claims in the UAE construction industry

When delays occur, the right thing for a contractor to do is to raise a claim in the form of a request for additional time. The attitudes of the parties involved greatly influence the circumstances under which delay claims are made (Hegazy, 2012). To understand the actions that consultants can take to mitigate delays, one must first understand how they contribute to the occurrence of these delays in the first place. Several researchers have examined the problem of project delays in the UAE. According to Faridi (2006) about 50 percent of all constructions being undertaken in the UAE are not being completed on time. This shows that the issue of delays is a very significant problem in the industry.

Whenever delay claims are made, it is likely that a dispute will arise (Edwin, 2005). Claims parties tend to disagree on a number of issues, one of them being the methodology for analysing the delay. Each party argues in favour of a methodology that will maximize its benefits. For the contractor, a delay may mean that he will earn an additional income; for the client, this means that he will have to incur some additional costs (Edwin, 2005). Consequently, a client may decide to protest the decision by the contractor to request for additional time to complete the project. At this point, the issue becomes how to determine whether a delay is necessary and inevitable.

As a pioneer in the Middle East as far as the construction industry is concerned, UAE must look for ways of ensuring that disputes relating to delay claims do not occur in the first place. Meanwhile, clear dispute resolution mechanisms should be outlined for reference purposes in the unfortunate event that such disputes occur. Failure to create room for such mechanisms will lead to massive losses on the part of clients, contractors, consultants, and even the government.

Every year, the UAE government spends billions of dollars on major projects. Zaneldin (2006) points out that in such a phenomenon, claims constitute a major factor increasing the likelihood of project delays. In most cases, disagreements arise as the client and the consultant engineer do their best to mitigate delays to avoid sending additional funds to the contractor (Zaneldin, 2006). In contrast, the contractor may try to justify delays in order to complete the project in the maximum time and earn a higher income (Zaneldin, 2006). In fact, this antagonism has made the delay claims one of the biggest problems in the UAE construction industry.

One of the ways of determining whether delays are justified is through delay analysis. Typically, consultant engineers work with clients to ensure that rogue contractors do not submit claims for unnecessary delays for selfish gain. As the need for consultants to play this role grows, pressure continues to increase for stakeholders in the industry to provide a standard definition of delays. This is an important step especially given that many contractors are willing to pay huge sums to specialists to prove their point regarding the need for project delays. Such contractors take advantage of loopholes in theoretical aspects.

Delays are commonly defined as the duration in which part of a construct project remains unperformed or is extended under certain circumstances. In some cases, the term “delay to completion” is used to refer to the delay to the date of completion set by the contractor or delay to the contractor-imposed date. In situations where the employer causes the delay, a dispute may not arise. However, if a contractor seems to be engaging in underhand machinations to gain more income from the project, the client may be tempted to institute legal proceedings against him.

Delays are so frequent in construction projects that project managers have devised techniques for managing them whenever they happen. Incidentally, the consultant may be in a position to play the most critical both in the avoidance of delays and in managing them whenever they occur. For example, his professional qualifications and experience should enable him handle construction projects in which numerous stakeholders are involved with relative ease. The consultant should also be able to management complex projects under conditions of uncertainty.

It is unfortunate that delay claims in the UAE construction industry are not managed in accordance with best practices and international standards (Koushki, 2005). A major reason for this situation is the lack of knowledge among consultants. For instance, it is common for contracts to be modified by omitting all the parts that may facilitate the process of solving delay-related disputes. In this case, many consultants provide no provisions for delay analysis techniques. They act like delays are nonexistent in the construction industry.

At the same time, employers are in most cases opposed to the right procedures for analyzing claims. They fear that these procedures may lead to a situation in which they have to incur extra costs. On the other hand, most contractors rarely miss an opportunity to submit claims as this enables them avoid penalties imposed by the employer. Employers put these penalties as a way of discouraging contractors from submitting delay claims.

For consultants to be able to mitigate delays, they should understand why they occur, the liability they cause to the construction organization, and their impact on the project implementation process. Some delays may be excusable while others may not depending on the liability that they cause. In terms of impact, some delays are critical while others are non-critical. The ability to anticipate these delays and their possible impact is a crucial skill for any consultant engineer working in the contemporary construction industry in the UAE.

Zineldin (2006) did a study on construction delay claims in the UAE in terms of causes, types, and frequency. The study focused on the emirates of Abu Dhabi and Dubai. A questionnaire survey was used to seek views from contractors and consultants regarding construction delay claims. The respondents, who hailed from 56 leading firms, were also requested for recommendations on how to mitigate or reduce claims. The study found out that construction delay claims are an indication of underlying problems within the construction process (Zineldin, 2006). It is imperative that these problems are highlighted and monitored by consultants at every stage of the construction process. It may be helpful for all stakeholders to seek clarification on any issues that may have the potential to trigger conflicts.

In Zineldin’s (2006) study, “changes” type of delay claims were the most common. The second most common type was “extra-work” delay claims. The least occurring category of claims is the “contract ambiguity” claims. It also emerged that “change orders” constitute the most common cause of delay claims, followed by “owner-caused delay”. The least frequent cause was “planning errors” (Zineldin, 2006). In light of these findings, the most recommendation is that consultants should be very vigilant on clauses that deal with change orders, extra work conditions, disputes, and delay.

Summary

            In summary, the client, consultant, and contractor have a role to play in mitigating delays in construction projects. Interactions are necessary to avoid disagreements. In most cases, each of these participants may have a role to play in the occurrence of delays in the course of the construction process. Nevertheless, the consultant normally occupies a unique position because he is never far from blame as far as these delays are concerned. He is responsible for recommending changes in the initial project design or alternations to different specifications due to unforeseen circumstances.

In these new developments in the construction industry in the UAE, a lot of focus is on improvement in project quality. Nevertheless, the biggest concern for consultant engineers is project delays. To address this problem, special emphasis among consultants should be on the design stage. A successful completion of the design stage may lead to a significant reduction of 80 percent of all potential construction problems. In return, this boosts construction performance, thereby reducing delays. Nevertheless, the responsibility for avoiding delays should not rest on the consultant alone. The participation of the client and the contractor is critical to ensuring that the project is completed on time and in accordance with the original specifications.

In the UAE, cultural factors have a great impact on design management. To avoid disputes, clarification is always necessary to ensure that the client is satisfied with the cultural considerations to be put in place before the hand-over of the project to the contractor. In many cases, the consultant is best placed to anticipate cultural issues that may arise in the post-design phase. The ideal way of avoiding such problems is to cooperate with the client as much as possible during the formative stages of design management. Some of the main cultural issues affecting project implementation deadlines in the UAE include language barriers, formalities and protocols, wrong time estimates, and communication with the client.

One of the biggest practical problems in the UAE construction industry today is disputes arising from delay claims. As a pioneer in the Middle East as far as the construction industry is concerned, UAE must look for ways of ensuring that disputes relating to delay claims do not occur in the first place. Meanwhile, clear dispute resolution mechanisms should be outlined for reference purposes in the unfortunate event that such disputes occur.

Consultant engineers must work with clients using delay analysis techniques to ensure that rogue contractors do not submit claims for unnecessary delays for selfish gain. Consultants must promote the development of best practices and adherence to international standards when addressing the problem of project delays. This is an important step especially given that many contractors are willing to pay huge sums to specialists to prove their point regarding the need for project delays. In conclusion, consultants should be very vigilant on clauses that deal with change orders, extra work conditions, disputes, and delay at the commencement of a construction project.

 

References

Ameh, O & Ogundare, O (2013), ‘Impact of due process policy on construction projects delivery in Nigeria’, Journal of Building Performance, vol. 4, no. 1, pp. 13-23.

Assaf, S (2006), ‘Causes of delay in large construction projects’, International Journal of Project Management, vol. 24, pp. 349–357

Battaineh, H ( 2002), ‘Causes of Construction Delays’, International Journal of Project Management, vol.3, no. 20, pp. 67-73.

Chan, A (2004), ‘Factors Affecting the Success of a Construction Project’, Journal of Construction Engineering and Management, vol. 130, no. 1, pp. 153–155.

Edwin H (2005), ‘Contract Strategy for Design Management in the Design & Build System’, International Journal of Project Management, vol. 23, no. 2, pp. 630-639.

El-Razek, M (2008), ‘Causes of Delay in Building Construction Projects in Egypt’, Journal of Construction Engineering and Management, vol. 134, no. 11, pp. 831–841.

El-Sayegh, S (2008), ‘Risk assessment and allocation in the UAE construction industry’, International Journal of Project Management, vol. 26, no. 4, pp. 431–438.

Faridi, A (2006), ‘Significant factors causing delay in the UAE construction industry’, Construction Management and Economics, vol. 24, no. 11, pp. 1167-1176.

Ford, D & Lander, D (2002), ‘A real options approach to valuing strategic flexibility in uncertain construction projects’, Construction Management and Economics, vol. 20, no. 4, pp. 343-351.

Hegazy, S (2012), ‘Delay analysis Methodology in UAE construction Projects: Delay Claims, Literature Review’, PM World Journal, vol. 1, no. 2, pp. 1-21.

Koushki, P (2005), ‘Delays and cost increases in the construction of private residential projects in Kuwait’, Construction Management and Economics, vol. 23, no. 3, pp. 285-294.

Le-Hoai, L (2008), ‘Delay and cost overruns in Vietnam large construction projects: A comparison with other selected countries’, KSCE Journal of Civil Engineering, vol. 12, no. 6, pp. 367-377.

Love, P (2002), ‘Using systems dynamics to better understand change and rework in construction project management systems’, International Journal of Project Management, vol. 20, no. 6, pp. 425–436.

Noulmanee A (2000), Internal causes of delays in highway construction projects in Thailand. Routledge, London.

Odeh, A (2002), ‘Causes of construction delay: Traditional contracts’, International Journal of Project Management, vol. 20, no. 1, pp. 67–73.

Othman, A (2005), ‘Analysis of factors that drive brief development in construction’, Engineering, Construction and Architectural Management, vol. 12, no. 1, pp. 69 – 87.

Sambasivan, M (2007), ‘Causes and effects of delays in Malaysian construction industry’, International Journal of Project Management, vol. 25, no. 5, pp. 517–526.

Sweis, G (2008), ‘Delays in construction projects: The case of Jordan’, International Journal of Project Management, vol. 26, no. 6, pp. 665–674

Walker, D (2002), ‘Project understanding, planning, flexibility of management action and construction time performance: Two Australian case studies’, Construction Management and Economics, vol. 20, no. 1, pp. 31-44.

Zaneldin, E (2006). Construction claims in the United Arab Emirates: Types, causes, and frequency, Routledge, London.

 

 

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