FACTORS THAT CAUSES

DELAY AND COST OVERRUN

IN NEW ISLAMABAD
INTERNATIONAL AIRPORT
PROJECT
Group Members
 Name : AHMAR WAQAS KHAN NIAZI
Roll No.SP-2016/M.SC. EM./013

 Name : KHURAM REHMAN

Roll No.FA-2017/M.SC. EM/013

 Name: QASIM
Roll No.FA-2016/MS PM(Q)-002
New Islamabad International Airport Project
Abstract
Project delay is large and prevalent problem in the
New Islamabad International Airport and this delay
is distinctly affecting project duration, budget, and
also community needs. The purpose of this study is
to highlight and rank delaying factors in the New
Islamabad International Airport Project. So many
delaying factors were identified through a detailed
literature review and categorized into four major
groups. A questionnaire survey was conducted to
collect the importance of each factor from public
construction experts. In total, 50 respondents
participated in the survey.
Abstract
The study determined that difficulties in
financing projects by contractors, delays in
progress payments, dispute on land usage,
improper project feasibility studies, award
project to the lowest bid price, inadequate
contractor experience, and insufficient data
collection and survey before design were
among the top critical delaying factors. The
findings are likely to be a solid contribution to
the New Islamabad International Airport
Project and in future for airport projects in
Pakistan.
Introduction
The construction industry plays an integral part in
the advancement of any nation and the physical
Progress of construction projects including roads,
buildings, power plants, airports and bridges is a
measure of the economic upturn through which a
society accomplishes its purpose and objectives of
rural and urban advancement . Public sector building
construction projects are usually projected, and
delays may occur during the project lifecycle. The
delay is a situation when the owner, consultant and
contractor mutually or separately contribute to the
lack of completion of the project as specified in the
original contract period. Delays can be minimized
when associated causes are clearly identified
Introduction
Pakistan Civil Aviation Authority is a public sector
autonomous body, which oversees and regulates all
aspects of civil aviation in Pakistan. PCAA is a member
state of the International Civil Aviation
Organization. Nearly all civilian airports in Pakistan are
owned and operated by the PCAA. New Islamabad
International Airport Project is one of the mega project
in PCAA history. Unfortunately, Completion of this
project is delayed so many times because of different
reason. The construction delay is unfavorable for
developing countries especially in Pakistan, but no
suitable research has been done in the case of New
Islamabad International Airport Project Pakistan to
provide a significant successful way to construction
players.
Literature Review
 Understanding delaying factors allow Client
and contractors to reduce the impacts of
such delays on their projects. Identification
and assessment of delay factors are
necessary yet challenging.
 There is a need to prioritize such significant
delay factors. In construction projects, the
delay is defined as “an act or event that
prolongs the time and budget limit specified
for deliverables under the contract that the
parties agreed upon”
Objectives of the Study
 To identify the critical delaying factors in
airport building projects in the New
Islamabad International Airport Project,
Pakistan.
 To identify the relative importance of critical
delaying factors of and contractors and
group them according to their importance
level of critical delays.
 To identify the relative differences in
perceptions of both Client and contractors.
Research Methodology
The questionnaire was randomly circulated
among client, consultant and contractors at
New Islamabad International Airport
project and was personally handed to the
respondents. The format of the
questionnaire was divided into four
sections.
Research Methodology
The first section consisted of the factors caused by client. The second
section was the main body of the questionnaire and was comprised of
the eight groups (project group, owner group, contractor group,
design group, equipment group, material group, labor group and
external group) and 52 sub-questions. A five-point Liker scale from 5
(very high effect) to 1 (very little effect) was adopted to gauge the
respondents’ opinions. The total of 120 questionnaires were
distributed to construction practitioners (70 to owners, and 50 to
contractors). A total of 102 sets (85%) were returned, 58 sets
(82.86%) from owners and 44 sets (88%) from contractors,
respectively. The data were analyzed using the statistical tool relative
importance index (RII) method which ranks the different critical
delaying factors. Moreover, Spearman’s rank correlation (rs) was used
to test the degree of agreement or disagreement in the ranking of the
significant delaying factors between the owners and contractors.
Finally, the analysis explained factors and groups rank based on RII
values that are most critical in the ranking list.
Discussion of Results:

This study highlighted the most significant delaying factors in New Islamabad
International Airport Project. This is shown by the fact that the delaying
factors, whether they belong to client, consultant or contractors, would lead
to a delay in building projects. The findings represent only the airport
project in public sector building projects. The most combined views of
critical delaying factors agreed upon by both owners and contractors are
discussed below.
1. Difficulties in Financing Project by Contractors
2. Contractors are not financially sound
3. Delay in Progress Payments
4. Award Project to the Lowest Bid Price Both client and consultant ranked
this factor fifth.
5. Inadequate Contractor Experience“ Inadequate contractor experience”
was the seventh most significant critical delaying factor design instead of
using a similar design for all projects.
6.Otherwise, owners need to revise the survey and design, resulting in a
significant delay.
Risk Register
Risks

Probability
Sr. No. Title Owner Mitigation
%

1 Cash flow problems affecting Contractor progress CAA/ Contractor 100% Release of VOs and other mitigation measure

2 Substandard workmanship affecting quality of work,creating rework Contractor 100% More supervision/avoid rework

3 Insufficient labor/supervision on site to quickly complete the work Contractor 100% Pay Contractor upto date

4 Continuous design changes and additional work delaying completion CAA/ Designer 50% Freeze design

Contractor not obligated to provide power and HVAC to other

5 Other Contractors 50% Close coordination between Contractors
packages for their T&C

Unavailability of specialist on site causing delay in Site Acceptance Test

6 Contractor 50% Contractor to keep its specialist on site
(SAT)
Frame work
Hypothesis

 Based on the above discussion, hypotheses were

developed to predict the overall impact of
Independent Variables and on PROJECT DELAY
AND COST OVERRUN IN CONSTRUCTION
PROJECT.

 H1: “CLIENT is negatively Associated with
PROJECT DELAY AND COST OVERRUN”.
 H2: “CONSULTANT is Positively Associated with
PROJECT DELAY AND COST OVERRUN”.
 H3: ‘CONTRACTOR is Positively Associated with
PROJECT DELAY AND COST OVERRUN”.
Conclusion

The data were collected from 09 project management consultants and 20

contractors and 21 client members. The data were then computed through SPSS,
and based on the values calculated through Correlation analysis and reliabilities,
the critical factors and groups were analyzed. Nevertheless, some disagreement
in opinions held by the public construction respondents, there is a good degree
of agreement between the respondents. A comparison with some particular
previous research demonstrated that Asian countries had faced similar issues in
their construction industries and that financing and on-time payments are
common issues.

To overcome the problem of such construction delays, there is a need to

evaluate the financial status of the contractor before awarding the project. In
contrast, delay in progress payments was the most critical delaying factor to
contractors are due to on time payment issues. Further, the findings of this study
indicate that top most critical delaying factors in the construction industry were
related to finance and on-time payment problems