COST OF DELAY IN CONSTRUCTION

introduction

Did you know that a delay on your construction site can cost up to 20% more than the original estimated cost? For contractors, highrise buildings, liquidated damages usually range between USD 3,000 – 4,000 per day. In these tough economic times, an increase in a planned budget is something we all want to avoid, question is, how do we avoid these delays?

The effective use of time management is a vital element needed in construction to successfully meet the budget and allocated timeframe of completion of any development work. Ecoconcrete has a reliable team of professionals you can trust on your build, From the point of inquiry to value engineering, and on-time product delivery. No stories, No delays.

IMPORTANCE OF TIME MANAGEMENT IN CONSTRUCTION

One of the first questions anyone asks when considering having building work done is: “How long is it going to take?” As with all things, it is important not to take too long, or conversely, to allow too little time. There are consequences attached to both.

Time for completion is an important concept in contracts. When a time limit is attached to an obligation under a contract, failure to complete that obligation within the time prescribed is usually a “material” breach of contract and the other party may be entitled to damages. If no time obligation is added, then the default position is usually that the allowance must be reasonable, or in some cases, time is said to be “at large” and it is not considered relevant.

Construction workers are paid by the hour/daily rate, time management helps control salary costs. Having work delayed or behind schedule can hinder the overall projected budget especially when one group or company must wait for another company to finish a certain type of work before beginning the next step in the project. It is therefore imperative for project stakeholders to carefully handle activities at each phase to avoid construction delay and cost overrun.

Completing projects in a timely manner helps the reputation of the company performing the work. Companies that construct are often contracted, sometimes through bids and sometimes without bids. They often get new projects, based on their reputation of getting past projects finished accurately and in a timely manner.

The construction industry is a significant and positively contributing sector to socio-economic development both in developed and emerging economies. It provides essential structures, such as private and public infrastructures and housing, thus fulfilling human’s major requirements. The industry plays a key role in the improvement of income per capita, thereby, engaging a significant proportion of the active workforce by creating job opportunities.

IMPACTS OF DELAY IN CONSTRUCTION

As time is a major part of every construction plan and can affect each party’s contractual obligations, delays must be minimized to avoid time and cost overruns. A construction delay is also accompanied by numerous social and economic consequences. For example, construction delay has a deleterious effect on all triple-bottom lines of sustainability including, social, environmental, and financial. This concludes the following as the effects of delay.

  • Time overrun.
  • Cost overrun.
  • Reduction in profits for the contractor.
  • Losses for the owner due to an extended construction phase.
  • Distrust between the owner and contractor.
  • Legal disputes between various parties.
  • Abandonment of the project.
  • Termination of a contract, arbitration, and litigation. 
  • Delay by the contractor/project owner in repayment of loans.
  • Poor quality of work.

The quest to deal with the threat of a construction delay, coupled with its negative effects, has necessitated the need to solve this problem, which is predominantly directed towards identifying the factors responsible for this monumental problem.

WAYS TO MITIGATE CONSTRUCTION DELAYS

Becoming aware of what’s causing delays is essential for eliminating them. Below are different ways to help keep your project on schedule.

  1. Provide accurate estimates

Budget inaccuracies always come back to bite you. Without the right funding, you can’t purchase the materials you need or pay your workers.

To avoid budget-related delays, do your research to learn how much the project will cost. During the construction, you can use automated workflow software to generate regular updates about whether you’re within budget. Consider using precast solutions for their predetermined cost of construction that are unlikely not change after a quote is agreed upon.

  1. Prepare for weather delays

Prefabrication in a climate-controlled facility can be extremely helpful for reducing the impact of weather delays. Precast is delivered as a durable finished product hence not affected by weather conditions.

You can also keep water pumps, waterproof gear, and other safeguards around the job site to help you begin work faster after inclement weather.

  1. Source for reliable vendors

As you are planning the different phases of construction, Material availability and delivery should top the list to ensure continuous workflow. Identify reliable vendors with ready surplus stock to eliminate delivery delays that will in turn affect your construction schedule and budget.

  1. Manage materials more efficiently

Having the right material in the right place at the right time is key for job site productivity. Each job site is different; thus, you’ll have to consider potential traffic points before you begin work. Precast solutions require minimal storage space as it is delivered ready for installation.

For example, a limited number of loading docks and elevators can create logistical challenges in high-rise buildings. Conquering these obstacles requires close coordination with your distributor. You can take advantage of services like just-in-time deliveries to manage your materials more efficiently.

  1. Communicate effectively

Effective communication between the field, the office, and the customer can help you avoid delays in construction projects.

Instead of relying on ad hoc communication pathways, establish a communication structure and follow of an organized schedule. Then, use mobile app technology to make sure everyone can view up-to-date information about change orders, redesigns, and job progress.

  1. Review designs thoroughly

If there’s an error in the design phase of a project, it may not show up until execution. Fixing these issues can drastically affect the project timeline.

This is where it becomes crucial to review designs before a project starts and check the specifications. It’s also why design-build projects that bring designers and contractors together from the start of a project are becoming increasingly popular.

  1. Streamline approvals

Waiting for approvals can prevent your crew from moving forward on a project. The good news is that these inefficiencies are easily avoidable with structured workflows and automatic notifications. Often, a person doesn’t realize their approval is holding up an entire process. Providing reviewers with deadlines and letting them know how their review affects the overall project timeline can motivate them to complete approvals faster.

  1. Clarify project scope

Unexpected scope changes can happen during construction projects. If the owner changes their mind about a crucial area, the rest of the project can experience major setbacks.

While many of these changes are out of your control, you can encourage the project owner to have a clear vision of the project scope before your crew begins working. If changes do need to be made, make sure realistic timelines are established.

CONCLUSION

In construction, people may argue that control is an elusive concept because of the unforeseen circumstances that occur due to inflation and unreliable vendors who underdeliver. Ecoconcrete beam and block precast slabs are changing the narrative by allowing contractors/project owners more control over their construction schedules and budget. A durable slab solution with a predetermined cost of construction that does not change after the quotation. As we all know, time is money we help you save both!

Install your floor/roof slab in a matter of days, with no waiting periods or delays.

Contact us today on 0722882088 We will meet and exceed your slab expectations.

Leave a Comment

Your email address will not be published.