What is it about?
The text provides an overview of a study that investigates time overruns in construction projects, particularly focusing on National Competitive Bidding (NCB) construction projects in municipalities. Key points from the text include: Common Issue: Time overruns are a prevalent problem in construction projects, negatively affecting timelines, costs, and quality. Specific Focus: The study highlights these issues within NCB construction projects in rural municipalities, noting poor performance by professionals in these areas leads to inadequate infrastructure development. Study Goal: The primary objective is to understand the causes and effects of time overruns through an exploratory and descriptive research approach. Data Collection: Information was gathered from clients, consultants, and contractors to identify factors contributing to project delays. Key Factors: Identified causes of delays include adverse weather, limited contractor involvement, insufficient consultant experience, poor site management, and delays in site mobilization. Cost Implications: These delays lead to significant costs associated with materials, land acquisition, labor, and market risks. Findings: The study found that 52.17% of projects experienced time overruns ranging from 24.4% to 514.71%, and 21.73% of projects faced cost overruns, with the highest being 19.92%. Recommendations: The study suggests conducting national-scale analyses to better understand and address construction delays, and to implement effective mitigation strategies.
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Why is it important?
Understanding and addressing time overruns in construction projects is crucial for several reasons: Economic Impact: Time overruns often lead to increased costs, which can significantly impact the financial viability of a project. Delays result in additional expenses related to labor, materials, equipment, and extended project management. This can strain budgets and reduce profitability for contractors and clients alike. Project Quality and Standards: Delays can compromise the quality of the construction work. When projects are rushed to make up for lost time, there might be a temptation to cut corners, leading to substandard work that fails to meet required quality standards. Reputation and Trust: Consistent time overruns can damage the reputation of the construction firms involved and erode trust among stakeholders, including clients, investors, and the public. This can lead to a loss of future business opportunities and strained professional relationships. Infrastructure Development: In the context of rural municipalities, delays in construction projects can impede critical infrastructure development. This affects the overall growth and development of these areas, limiting access to essential services and economic opportunities for residents. Legal and Contractual Obligations: Construction projects are bound by contracts that often include penalties for delays. Time overruns can lead to legal disputes, financial penalties, and contractual complications, further increasing the costs and administrative burden on the involved parties. Resource Allocation: Delays disrupt the planned allocation of resources, leading to inefficient use of labor and materials. This can cause a ripple effect, delaying subsequent projects and creating a backlog that hinders the overall productivity of the construction industry. Risk Management: Identifying and understanding the causes of time overruns helps in better risk management. By recognizing common delay factors, project managers can implement proactive measures to mitigate these risks, leading to more predictable and manageable project timelines. Policy and Planning: Insights from studies on time overruns can inform policymakers and planners in creating more effective regulations, guidelines, and support systems for the construction industry. This can lead to improved project planning, execution, and oversight at the national or regional level.
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This page is a summary of: Examining the causes and effects of time overruns in construction projects promoted by rural municipalities in Nepal, Evaluation and Program Planning, August 2024, Elsevier,
DOI: 10.1016/j.evalprogplan.2024.102436.
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