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STUDY ON DELAYING FACTORS AFFECTING THE SUCCESS OF CONSTRUCTION

PROJECTS IN PAKISTAN; ROLE OF PROJECT INTERVENTION AS MODERATOR

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JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

STUDY ON DELAYING FACTORS AFFECTING THE SUCCESS OF

CONSTRUCTION PROJECTS IN PAKISTAN; ROLE OF PROJECT
INTERVENTION AS MODERATOR
*
Sameeda Semab, **Anwar Khan and ***Dr.Fayaz Ali Shah
*
MS Student,Department of Management Sciences,COMSATS Institute of Information
Technology, Virtual Campus, Islamabad.
**
Assistant Professor,Department of Management Sciences,Khushal Khan Khattak University,
Karak, Email: akpashtoon1981@gmail.com.
***
Assistant Professor, islamia College Peshawar.

ABSTRACT
One of the most commonly faced problems in the global construction industry is project delay.
The project delay can arise due to various reasons ranging from reasons on behalf of the client,
the contractor, third party, or acts of God. These delays and arise at any stage of a project, from
the planning to commencement, till completion of works. Delays can be reduced when the factors
that cause them are identified. The basic analogy behind adding project success is that projects
are done for a specific time, budget and target achievement. The objective of this study is to
identify the main causes of delays in construction projects of Pakistan that impede project
success and different interventions to minimize these delays to ensure project success. Based on
the literature review, overall eighteen factors categorized in seven groups were identified as
causes of delay and sixteen methods categorized in five groups were identified as interventions to
minimize effects of delays and fourteen measures categorized in five groups were identified as
measures of success. The questionnaires were distributed among 265 project staff in
construction projects in central Peshawar. Data were analyzed with structural equation
modeling for identifying the linkages between independent, dependent and moderating variables.
The results showed that the project delays were negatively related with the project success,
whereas the project intervention successfully moderated the relationship between the project
delay and project success. It is concluded that construction projects in Pakistan require proper
project interventions to ensure Project success. Project managers need to do proper planning
and scheduling, allocating resources and estimating cost of the project. In this way delays can be
avoided in Construction Projects in Pakistan and Project success can be ensured.

Key Words: Project Delays; Project Success; Project Intervension; Construction Industry

INTRODUCTION
A successful construction project is one, which is completed on time, within allocated
budget and delivered according to the specifications as per stakeholders‟ satisfaction (Chan,
Scott, & Chan, 2004). The construction industry is facing ongoing challenges, i.e. economic
uncertainty, increased competition within the industry and the growing influence of regulatory
agencies drive project margins down (Winch, 2010). Delay in construction project is the most
important problem. It exists to some extent in every project and varies from project to project.
Some overrun the allocated time for days, others may overrun for years. So it is important to
point out the real causes of these delays in order to avoid and minimize them. The delay in
project designated time causes failure of the project or in other words, it impedes the success of
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

the project. It is essential for the general management to keep track of the progress of a project
with the baseline plans, to minimize the possibilities of the occurrence of delays at the earliest
and ensure the success of the project (Sambasivan & Soon, 2007).

Researchers have repeatedly identified the causes of delays in construction projects.

Assaf, Al-Khalil, and Al-Hazmi (1995) had discussed the occurrence of delays in mega building
projects of Saudi Arabia. The causes noted were late approval of shop drawings, late payment to
the contractor and disruptions in his cash flows during construction, problems with sub-
contractors, frequent changes in design, poor labour skills and slow decision making in the
management. Similarly, Toor and Ogunlana (2008) had discussed delays in the construction
projects of Thailand in the light of problems arising in the construction industry of developing
countries. Their conclusions pointed out problems like incompetence of contractors; problems on
behalf of clients and consultants; shortage of resources and undeveloped industry infrastructure.
Chan et al. (2004) categorized the causes of delays for Hong Kong and studied factors resulting
in low productivity. Their study revealed five major and very commonly occurring causes for
delays, namely change in specifications by client; unforeseen ground conditions; lack of prompt
decision making; poor site management; and necessary variation of works. From the year 1990
till 1997, a quantitative research was carried on 130 building projects in Jordan by Al-Momani
(2000). The researchers indetified broad range of delaying factors and also found certain factors
as success factors. The result agreed on factors such as subcontractor shortcomings, improper
planning and estimates, inexperienced contractors, and changes in original plans induced by the
client. Time delays and cost overrun factors.

Keeping in view the delays that affect the success of project, it is therefore essential for
the management of project to keep track of the progress of a project with the baseline plans, to
minimize the possibilities of occurrence of delays at the earliest and ensure the success of project
by applying methods to minimize delays. Numerous researches have been carried to identify and
control these delays. Duy Nguyen, Ogunlana, and Thi Xuan Lan (2004) stated methods to
minimize delays with the help of a questionnaire survey carried out for Vietnam. Their study
identified the deployment of a highly professional and competent team, an experienced and
competent project manager, motivation for contractor employees and workers, timely provision
of resources and raw materials, periodic progress review meetings, extra efforts while estimating
the project duration, to calculate more accurate cost estimates, effective planning, prompt
communications and use of modern technology as main factors that can help reduce delays in
construction projects. There are a number of factors that may have a bearing on project success.

They may differ from one project to another. Baccarini (1999) identified two distinct
components of project success, i.e., the focuses upon the project process and, in particular, the
successful accomplishment of cost, time, and quality objectives. It also considers the manner in
which the project management process was conducted. The second focus is on the product
success, which deals with the effects of the project's final product. Similarly, Odeh and Battaineh
(2002) studied projects from the point of improving the operating procedures in the construction
industry by preferring contractors over experience rather than lowest bidders, and finally
encouraging contractors to finish works earlier than mentioned timeframe by awarding bonus on
early completion. While Duy Nguyen et al. (2004) stated methods to minimize delays with the
help of a questionnaire survey carried out for Vietnam. Their study identified the deployment of
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

a highly professional and competent team, an experienced and competent project manager,
motivation for contractor employees and workers, timely provision of resources and raw
materials, periodic progress review meetings, extra efforts while estimating the project duration,
to calculate more accurate cost estimates, effective planning, prompt communications and use of
modern technology as main factors that can help reduce delays in construction projects.

Like the rest of the world, the construction projects in Pakistan are affected by different
factors that cause delays in these types of projects. Delay in project designated time causes
failure of the project or in other words, it impedes the success of project. Pakistan‟s construction
sector has undergone a contraction of 10.8% in real terms in 2009, after a decline of 3.9% in
2008, completing a miserable couple of years for the industry. The market has suffered from the
global economic downturn and fallout from political turmoil in Pakistan, which have provided a
double whammy to foreign investment and wider business activity in the country. Pakistan again
scores poorly in Project Finance, Risk Ratings. The country sits at the bottom of regional
rankings, which evaluate a total of 14 countries in the Asia Pacific region. The country achieves
the worst numerical performance in the region for both key variables of „design and
construction‟ and „commissioning and operating‟. It is therefore essential to keep track of the
progress of a project with the baseline plans in Pakistan. Once it is realized that their projects are
going to fail or chances of success are low, so necessary interventions can be made. These
interventions make interference, control the weaknesses and delays and ensure the success of the
project. This research was, therefore, conducted for at identifying the major causes of delays in
construction projects in Pakistan construction industry. And check the effects of these delays on
the project success and later on finding the factors that can minimize the effects of such delays.

RESEARCH FRAMEWORK AND HYPOTHESES

Literature review shows that delays in individual activities of project have a negative
impact on project success in terms of time, cost, quality and safety (Arditi &
Pattanakitchamroon, 2006). In the current study it has been assumed that equipment related
delays & client related delays (Duy Nguyen et al., 2004), contractor related delays (Koushki,
Al‐ Rashid, & Kartam, 2005), labor related delays (Majid & McCaffer, 1998) and material
related delays (Koushki, et al., 2005) have negative impacts on project success (i.e., meeting
design goals, impact on customer, benefits to organization and project efficiency) as clear from
figure 01. As stated earlier that project delays can be controlled through certain interventions.
Therefore, it is further assumed that project Interventions,i.e., prequalification of
contractor/subcontractor, briefing/design stage, construction stage and pre-qualification of
suppliers (Aiyetan, Smallwood, & Shakantu, 2011) have a significant moderating impact on the
delays on project, thus ensuring the success of project by minimizing the impact of project
delays, as clear from figure 01.
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

Causes of Delay Project Success Factors

Equipment related delays Meeting design goals
Negative
Contractor related delays Impact on customer
Client related delays Business Success
Labor related delays Project efficiency
Material related delays

Interventions to minimize delays

Prequalification of contractor
Design stage
Construction stage
Pre-qualification of suppliers

Figure 01: The Research Framework of the study

The following hypotheses were formulated from the above research framework:
H1: The project delays will be negatively related to the project success.
H2: The project interventions will be positively related to the project success.
H3: The project intervention will significantly moderate the negative relationship between
project delays and project success.
Methodology:
Research Design:
A cross sectional research design was selected for the study. A cross sectional research
design was selected because it allows the researcher to collect data from specific respondents at a
particular time, thus it is more time and cost effective way of doing research.
Population and sampling:
Target population for research is construction companies in the Peshawar city of Khyber
Pakhtunkhwa. The accessible population for research was 148 Private Construction Companies
in Central Peshawar. The accessible population was decided through the population parameters
of interests. The sample was drawn through multistage probability sampling. Firstly, the
population was divided into clusters; then one cluster was selected at random. The selected
cluster was then divided into sub clusters, as clear from Table 01.
Table 01: Number of construction companies in sampling regions
Sampling Methods Location No. of construction companies
Accessible Population North Peshawar 24
South Peshawar 74
East Peshawar 24
West Peshawar 26
Randomly Selected Construction companies in
Cluster south of Peshawar 74
Sub cluster of randomly Hayatabad 42
selected cluster University Town 20
(South Peshawar) Jamraud Road 09
Tehkal 03
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

The respondents in each sub cluster were divided into strata on the basis of job positions. From
each stratum simple random sample was taken. For example, in the Hayatabad region, there
were total 42 companies in which there were 80 managers, so out of these 80 managers only 40
managers were selected by taking 50% simple random sample, as clear from Table 02. In this
way a sample size of 265 was drawn from total population of 532.

Table 02: Determining sample size

Regions Proj Cons Engr Arct Own Proj Cons Engr Arct Own
Mgr Mgr (N) (N) (N) Mgr Mgr (n) (n) (n)
(N) (N) (n) (n)
Hayatabad 80 56 70 50 50 40 28 35 25 25
University Town 30 24 28 26 22 15 12 14 13 11
Jamraud Road 18 14 16 12 09 09 07 08 06 03
Tehkal 04 04 10 06 03 02 02 05 03 02
132 98 124 94 84 66 49 62 47 41
Total N: 532 n:265
Note: Proj Mgr=Project Manager; Cons Mgr=Construction Manager; Engr= Engineer; Arct=
Architect; Own=Owner

Data Collection:
Data was collected through a self administered questionnaire. The questionnaire was
developed by adopting items from the scales that were previously developed and tested. The
factors identified in the literature review that contributed to causes of delays, interventions to
minimize delays and to ensure project success were used to design a questionnaire. The
variables, sources and number of items in the questionnaire are given in Table 03. The
questionnaire consisted of four sections. The first section was about demographic variables, the
second section was about the causes of delays, the third section was about intervention and the
last section was about the project success. The demographic variables were measured on nominal
scale where as the rest of sections were measured on ordinal Likert scale of one to five range.
Table 03: Sources and number of items for variables of Questionnaire
Variables Sources No of items
Kumar (2016); Niazai and
Gidado (2012); Wei, (2010);
Causes of Delays Pai and Bharath (2013) 18
Wei (2010); Aiyetan et al.
Interventions to minimize (2011); Mukuka, Aigbavboa,
delays and Thwala (2014) 16
(Atkinson, 1999); (Cooke-
Davies, 2002); (Shenhar, Dvir,
Project Success Levy, & Maltz, 2001) 14
Total 48
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

DATA ANALYSIS:
The current study has utilized both descriptive and inferential statistics with the help of
IBM-SPSS: 20, IBM-AMOS: 20 and MS-Excel: 2007 softwares. Descriptive statistics like
frequencies distribution, percentages, measures of variability and measure of central tendency
were calculated. It helped in understating the general nature of the data. Due to multi-level
quantitative nature of the current study, different types of inferential statistical techniques were
used. The techniques include correlation analysis, reliability analysis and Structural Equation
Modeling (SEM). The SEM technique was selected because it can give additional information
regarding the model fit and it also control the measurement errors (Holmbeck, 1997). The model
fit was firstly determined by calculating model fit indices like Chi-square (χ²), normed Chi-
square (χ²/df), Root Mean Square Residual, Goodness of Fit Index and Comparative Fit Index.
The SEM model consisted of five indicators of independent variable “causes of delays”; four
indicators of dependent variable “project success”; while four indicators of moderator variable
“Interventions to minimize delays”. The moderation was tested by following the guidelines given
by Aiken, West, and Reno (1991).

RESULTS
The demographic data showed that there were three types of respondents in the selected
projects the first one were the clients (for whom the buildings or road, etc., were constructed);
the second one were the consultants (which were technical person, and were consulted for
technical assistance); the last were the contractor (which actually took the contract and
supervised all work on the project. The selected project had four types of job positions, ranging
from top management cadre, i.e., Project Director and Project Manager to the middle
management, i.e., Site management and Project Engineer. The selected project had lower line
workers, however, their details are not mentioned because they are not in scope of current study.
The average experience of the respondents and other staff on the selected project was 10 years.
However, their overall experience ranged from 01 to 20 years, where the majority of the
respondents had 11 to 20 years of experience in construction projects. It was further revealed that
selected project had carried out various kinds of construction related work, including
construction of roads, government building, houses and commercial buildings.

Table 04: Demographic Results

Variables Number and Percentage
Types of Respondents in selected projects
Clients 88 (33%)
Consultants 76 (29%)
Contractors 100 (38%)
Job Positions in the selected projects
Project Director 56 (21%)
Project Manager 78 (29%)
Site Manager 47 (17%)
Project Engineer 84 (31%)
Experience in selected projects 56 (21%)
01 to 05 years 51 (19%)
06 to 10 years 71 (27%)
11 to 15 years 87 (33%)
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

16 to 20 years
Type of work in selected projects
Construction of Roads 34 (12%)
Construction of Govt Buildings 65 (25%)
Construction of Houses 88 (33%)
Construction of Commercial Buildings 78 (29%)

RELIABILITY ANALYSIS
The reliability analysis showed that all selected scales possess good internal
consistencies. The reliability was checked by calculating Cronbach‟s alphas. The results showed
that the Cronbach‟s alpha coefficient values for all variables ranged from minimum 0.69 to
maximum 0.88.

MODEL FIT
The model fit was determined by running a Confirmatory Factor Analysis. The factor
loadings for all 48 items ranged from minimum 0.64 to maximum 0.83. Furthermore, the model
fit indices for all variables were within the acceptable ranges, as clear from Table 05.
Table 05: Model Fit Indices
Variables Models χ2 df χ2 /df RMSEA GIF CIF
Causes of Delay Six factors 233 98 2.38 0.098 0.99 0.98
Project Interventions Four factors 310 87 3.57 0.079 0.96 0.96
Project Success Four factors 298 91 3.28 0.056 0.98 0.97

HYPOTHESES TESTING
The hypotheses were tested by Structural Equation Modeling. Initially the hypothesized
model M1 fitted the data well (all fit indices were within the acceptable ranges) as clear from
Table 06. The results for M2 model shows that all fit indices were within the acceptable ranges.
This model was calculated to know the direct relationship between the independent (causes of
delay) and dependent variable (project success). The standardized beta coefficient showed that
both variables were negatively related with each other, i.e., (β = -0.876, p< 0.01). After this, the
relationship between moderator (project interventions) and dependent variable was checked
through the M3 model. The results for M3 model shows that all fit indices were within the
acceptable ranges. The moderator variable was also negatively related to the dependent variable,
as clear from the standardized beta coefficient, i.e., (β = -0.136, p< 0.01). The final model M4
was run to know whether “project interventions” is acting as moderator variable between the
independent (causes of delay) and dependent variable (project success)? In this regard a product
of independent and moderator variable was taken. The results for M4 model shows that all fit
indices were within the acceptable ranges as clear from Table 06. Initially the relationship
between independent (causes of delay) and dependent variable (project success) was checked,
which was negative, i.e., (β = -0.796, p< 0.05). Later on the relationship between moderator
variable (project interventions) and dependent variable (project success) was checked, which was
positive, i.e., (β = 0.567, p< 0.05). Finally the (product of moderator*independent variable) was
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

entered into the model. The previous standardized beta values were changed and were reduced
after the entry of product of moderator*independent variable. The negative relationship between
dependent and independent variable was reduced from β=-0.796 to β=-0.644. Moreover, the
product of moderator*independent variable was also positively related with the dependent
variable, i.e., (β = 0.456, p< 0.05). This means that moderation had occurred because the
negative relationship between causes of delays and project success was reduced, moreover, the
product of moderator*independent was significantly positively associated with the project
success, as clear from the figure 02.

Figure 02: Final Model with parameter estimates

Causes of
Delay
-0.644

Product 0.456
Project
Success

0.567
Project
Interventions
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

Table 06: Results for the final model fit

Variables χ2 df χ2 /df RMSEA GIF CIF
M1 Hypothesized model 243 98 2.47 0.097 0.99 0.98
M2 Direct Effect Model (IV-DV) 145 45 3.22 0.089 0.96 0.99
M3 Direct Effect Model (MV-DV) 132 38 3.47 0.076 0.98 0.97
M4 Moderating Effect Model (IV-MV-DV) 256 116 2.20 0.087 0.99 0.99
Note: IV= Independent Variable; DV= Dependent Variable; M= Moderating Variable

DISCUSSION ON RESULTS AND CONCLUSION

The result of first hypothesis indicated that all delay factors had a negative effect on
project success. Factors related to consultant it is due to slow response, poor inspection and poor
design which effect positive reputation of the organization. Contractor related delays occur
because of inadequate contractor experience, unreliable subcontractor, improper project planning
& scheduling, inaccurate cost estimate, which negatively affect budget goals, timely delivery of
product, total improvement of organizational performance and level of customer satisfaction.
Client related factors are client interference & slow decision making process and change orders
which will have an impact on fulfilling customer needs according to their requirement. Material
related delay occurs because of poor construction material, late delivery of material and
unreliable suppliers due to which satisfaction of user with an end product and quality of business
is affected. Equipment related delay occur due to inadequate modern equipment, equipment
allocation problem and inadequate modern equipment which have an adverse affect on the
technical specification of the project. Delay can also occur in projects due to shortage of labors
and labor productivity, which adversely affect increase yield. These results are more less the
same as those obtained by Kikwasi (2013) on Tanzania construction industry. Similarly by
(Salunkhe & Patil, 2014) on the Indian construction industry. Result of second and third
hypotheses indicates that all project interventions had positive impact on Project success. Project
interventions emphasize that successful projects are implemented with ease. Adequate estimation
of project cost, adequate briefing by the client, reviewing constructability of design at design
stage these interventions ensure that construction projects run smoothly and results in benefits to
organization. Other interventions Proper project planning and scheduling, Contractor monitoring
of subcontractors‟ work, prompt inspection and approval of work by consultant, planning ahead
activities of work that weather could affect, developing human resources through proper training
and contractor and consultant checking quality of materials supplied as they arrive on site are
obvious imperatives to carry out projects and meeting design goals. Interventions to minimize
poor construction material will result in good impact on the customer. Efforts, in terms of
continuing involvements of all stakeholders, comprehensive tender documentation and accessing
the past record of contractor and supplier are needed to ensure proper project control and
improving project efficiency. Previous studies like e.g., Wei (2010), Aiyetan et al. (2011) and
Mukuka et al. (2014) have yield similar results.

Construction Projects are facing delays due to different factors which effect project
success in terms of Project efficiency, overall organization performance, business success and
satisfaction level of customer on the end product. The results further showed that Project
interventions moderate the negative relation between delays and Project success. Project
interventions for a specific type of delay applied at right stage will reduce the effect of delay and
ensure project success. Construction Projects in Pakistan require proper project interventions to
JOURNAL OF ADMINISTRATIVE & BUSINESS STUDIES(Peshawar) Volume 2,Issue 2, July-Dec 2017

ensure Project success. Project managers needs to do proper planning and scheduling, allocating
resources and estimating cost of the project. Contractors should have good experience, know
how to manage subcontractors, make sure that employed works have the skills to carry out the
project and to get good material for the project. Consultants have to do the appropriate inspection
of project work and do a proper design review. In this regard project managers, contractors and
consultants have to take steps. In this way delays can be avoided in Construction Projects in
Pakistan and Project success can be ensured. In short, it is concluded that the project success can
be ensured only if each and every person/factor play its role significantly and contribute
positively to the success of the project.

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