Causes of Delays and Its Effects in the Construction Industry and Their Relationship with the Economy of the Uae.

MSc in Strategic Project Management

2014 - 2015

Causes of Delays and its Effects in the Construction Industry

and their relationship with the economy of the UAE.

By

Boddapati Santosh

H00179030

Presented for the award of MSc.

Strategic Project Management

Heriot-Watt University

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ABSTRACT

As the construction industry is rapidly developing in the UAE, delays in projects could be devastating to the contractors and the clients. The aim of this study is to identify the factors causing delays in the construction industry and to identify its major effects on the project and on the parties involved, and also to establish a relationship between delays in the construction industry to the economy of the UAE. This study also justifies why such research is necessary in this country, it also provides evidence as to how and why the construction industry plays a significant role in the economy of the UAE. Through interviews with highly qualified and experienced professionals and through literature review the main factors causing delays and its effects appropriate to the UAE are listed and categorized. With the help of surveys and by using the RII method these causes and effects are ranked accordingly. Although this study focuses on particularly commercial buildings, there is a lot of depth available in this area of study and a lot of research is required that focuses on the UAE’s construction industry. Such studies help in understanding the industry better and also gathers various perspectives and opinions together which brings out the major culprits of delays and their adverse effects.

ACKNOWLEDGEMNENT

I would like to thank Dr. Mohamed Salama for his advice, knowledge and support provided throughout the project. I would also like to thank the interviewees and survey respondents for sharing their expertise and opinions which was crucial to deliver this study on a high standard. Finally, I would like to thank my family, friends and colleagues for their support throughout the project.

Declaration.

I declare that the thesis embodies the results of my own work and has been composed by myself.  Where appropriate within the thesis I have made full acknowledgement to the work and ideas of others or have made reference to work carried out in collaboration with other persons. I understand that as an examination candidate I am required to abide by the Regulations of the University and to conform to its discipline and ethical policy.

Signature of student …………………………  Date: ……….

Word count: …………

TABLE OF CONTENTS

1. TITLE PAGE 

1. ABSTRACT …………………………………………………………….….…… (i)

1. ACKNOWLEDGEMENT ……………………………………………….….… (ii)

1. INTRODUCTION ……………………………………………….….………………. 1

1. Aims and objectives ……………………………………………….….………… 1
2. Research questions ……………………………………………….….…………. 2
3. Role of delays and effects ……………………………………………….….…... 3

1. LITERATURE REVIEW ……………………………………………….…….….….. 4

2.1 Construction industry overview ………………………………………….…….... 4

      2.2 Delays ……………………………………………….….………………….……… .7

      2.3 Types of delays and its effects ………………………………………….…….…... 8

      2.4 Economy of the UAE ……………………………………………….………….… 10

      2.5 Summary ……………………………………………….………………….………13

1. RESEARCH METHODOLOGY ……………………………………………….……14 

1. Methodology ……………………………………………….….…………………. 14

1. Interviews ……………………………………………….….……………………..14

1. Questionnaire surveys ……………………………………………….….………. 15

1. Summary ……………………………………………….….……………………... 17

1. FINDINGS ……………………………………………….….………………………… 17

1. Interview findings ……………………………………………….….……………. 17
2. Survey findings ……………………………………………….….…………….…. 29

1. Causes surveys ……………………………………………….….………… 31 
2. Effects surveys ……………………………………………….….………… 33

1. Summary ……………………………………………….….……………………… 36 

1. ANALYSIS AND DISCUSSION ……………………………………………….….…. 37

1. CONCLUSION ……………………………………………….….……………………. 39

1. REFERENCES ……………………………………………….….……………………. 40

1. List of figures ……………………………………………….….…………………. 42
2. List of tables ……………………………………………….….…………………... 42 

1. APPENDIX ……………………………………………….….………………………… 43

1. Interview questions…………………………………………………………………43
2. Survey questionnaire……………………………………………………………….43
3. Survey results……………………………………………………………………….50

1. INTRODUCTION

The construction industry is one of the largest sectors in the entire world, it contributes significantly to the developing and developed nations on a large scale. This industry produces various large number of public infrastructures to private structures, these structures are used for various purposes including residential, commercial, institutional and industrial etc. The construction industry plays a major role in developing nations worldwide, this industry is linked to a wide variety of other industries such as real estate, raw material industry, tourism etc. The construction industry is undefinable, according to (Ofori, 1990), there can be various definitions to the construction industry as it includes a variety of professionals and skills to achieve a specific target and also there are various divisions in a construction industry, for instance the electrical and mechanical division, the civil and architectural division, plumbing and sewage division and so on.