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Chapter 1 Introduction

1.1 Background

The performance in infrastructure provision through construction industry is one of the

major factors for measuring the development of any country (Kaliba eta!., 2008). In Sri
Lanka. every year a considerable amount of the National Budget on infrastructure
development is channeled to water supply sector and at present only around 32 percent of
the population have access to pipe borne water (Central Bank Report 2008). And there is
a huge growing demand for pipe borne water in most areas of the country due to the rapid
urbanization. In recognition of the importance of providing safe drinking water and
adequate sanitary facilities, a separate Ministry for water supply and Drainage was
formed in year 2007. Further a large amount of foreign funds are allocated every year for
the improvement of water supply facilities with the assistance of foreign donor agencies
and are expected to be utilized within a specified period. Most of these developments arc

carried out on project basis.

Every construction project has a defined goal or objective. defined tasks to be performed
and a defined time frame and every construction contract considers time as the essence of
the project (Levy, 1994 ). Delay is a situation when the contractor and the project owner
jointly or individually contribute to the non completion of the project within the original
or the stipulated or agreed contract period. Completing projects on time gives better
results for both project owners and the contractors and reflects their efficiency. But the
construction process is subject to many variables and unpredictable factors such as the
performance of involved parties, resource availability, environmental conditions.
involvement of other parties and contractual relations. and it is rarely happened that a
project is completed within the specified time (Assaf & Al-Hejji. 2006).

When the projects are delayed, they are either extended or accelerated and normally this
is associated with extra costs, which have to be incurred by either client or contractor
(Sambasivan & Soon. 2007). Further, the handling of delay claims in construction is not
an easy task when there are disagreements regarding the claim entitlement and it may
give rise to dissatisfaction to the parties involved. Therefore, the main role of the project
manager is to make sure that the projects are completed within the estimated time and
budgeted cost.

However, it is required to formulate the projects with realistic time frame and \Veil
defined work objectives that can be achieved by the construction professionals through
proper management of the physical construction (ASCE, 1991 ). In most of the contract
documents it has been included some provisions for the employment of contractor's
professional staff for the project management activities, and there are separate items in
the bills of quantities to pay for them. In addition to that in contract documents. it has
been included some fix contractual obligations to the parties for some delay situations
that can be identified in advance. These provisions are not sufficient enough to address
the delay issues in construction projects and still it can be seen a lot of arguments in
projects on delays leading to legal issues.

Further. though there are enough tools and techniques available at present for
construction project management, the researchers around the world have identified
through their studies on different fields that most of the projects are getting delayed to
some extent with or without cost overruns.

1.2 Problem Definition

In Sri Lanka most of the infrastructure projects are implemented through the maJor
government authorities such as Road Development Authority, National Water Supply
and Drainage Board, Urban Development Authority, etc., which are still act as traditional
organizers and strictly bound to follow government rules and regulations on procurement.
Each of these organizations manages number of similar projects every year but with
project delays. One of the major noticeable factors in this issue is the lack of efforts to
identify the causes and effects of delays in these types of projects and made awareness of
the relevant parties involved.

National Water Supply and Drainage Board is the pioneer organization for supplying
pipe borne drinking water to the nation. The operation and maintenance of existing water
supply schemes and the implementation of projects to construct new schemes to improve

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the coverage and meet the growing demand due to urbanization are among the major
tasks of it. These water supply projects are implemented by using both the funds
allocated from the capital budget and the foreign donor funds and at present allocation of
capital budget funds are done with greater difficulties due to the prevailing economic

situation of the country.

In recent past, several large scale water supply projects had been successfully constructed
in major cities of the country with the assistance of foreign donor agencies and foreign
consultants. Although there were delays in the project conception phase ofthese projects.
most of them were completed without severe delays in project construction phase. But at
the same time, majority of the small and medium scale water supply projects, which were
planned to construct in order to supply water to developing areas in and around major
cities ofthe country using both the capital funds and the foreign funds have failed to meet
the time targets due to various causes. The client's professional staff was doing the
consultant"s role in these projects and no separate expert consultants had been appointed

as seen in the donor funded projects.

As an example, most of the medium scale water supply projects implemented under
Small and Medium scale Infrastructure Rehabilitation and Upgrading Project (SIRUP)
with the assistance of Japanese Bank for International Corporation (JBIC) had been
delayed and some ofthese projects were delayed months while some others were delayed
years. Further due to the failure of completing these projects within agreed time targets
there were severe problems in funding these projects with the expiration of JBIC funding
period. These delays have severely affected the socio-economic development of the

particular areas.

In the view of the above, there is a need for having a better understanding of the causes
and effects of delays in construction of medium scale water supply projects among the
parties involved, in order to avoid or minimize them and complete the projects

successfully.

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1.3 Objectives

• To identify and rank causes and effects of delays in construction of medium scale
Water Supply projects in Sri Lanka.
• To study the difference in perceptions of the two major parties involved in
construction of medium scale water supply projects namely clients. and
contractors on causes and ettects of delays in construction of medium scale water
supply projects.
• To propose actions to avoid/minimize delays in construction of medium scale
water supply projects.
• To develop Rule Based Tree Expert System for understanding and better
management of major causes of delays in construction of medium scale water

supply projects.

1.4 Scope and Limitations

The study is Iimited to construction of medium scale drinking water supply projects in Sri
Lanka. which are having project values between 50-500 million Sri Lankan rupees.

1.5 Significance of the study

This study was carried out to investigate the causes and effects of delays in construction
of medium scale water supply projects. The causes and effects of delays and different
perceptions of involved parties were found through a questionnaire survey among the
professionals involved in construction of medium scale water supply development
projects. There are several parties involved in construction projects and the lack of
sufficient knowledge and understanding of the causes and ettects of delays results some
issues, which may sometimes become legal cases. Therefore, by identifying the causes
and ettects of delays in water supply projects, this study will be able to create awareness
of the parties involved; Contractors. Clients, Sub- Contractors. etc. about their obligation
in carrying out the works within stipulated time. budget and given specifications.

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In addition, the Rule Based Tree Expert System developed based on the causes and
effects of delays found in this study will help the project management teams involved in
medium scale water supply development sector for better understanding and proper
management of delay situations. Finally, hopefully the results of this study will assist in
avoiding unnecessary disputes while assuring project success and better relationship
among the contractual parties.

1.6 Methodology

A detailed literature review was carried out to identify the previous studies in the
research area and found the major causes and effects of delays in projects in Sri Lanka
and other counties. Then, a careful identification of the factors related to the study were
done and a survey questionnaire was developed to assess the perceptions of contractors
and clients who were involved in construction of medium scale water supply projects on
the relative importance of causes and effects of construction delays. The questionnaire
was distributed to a sample of professionals who were working under contractors as well
as 0\vners in the construction of medium scale water supply projects. Responses to the
questionnaire were collected and analyzed. The analysis included of ranking the different
causes and effects according to the relative importance. Additionally, Expert interview
survey carried out to formulate cause-effect relationships, which were necessary to
develop the Rule Based Tree Expert System for understanding and better management of
major delays in construction of medium scale water supply projects.

1. 7 Guide to report

This report is logically organized into six chapters and appendices. The chapter one
composed of background to the study, problem definition, objectives, scope and
limitations. significance of the study and an outline of the methodology adopted for the
study. The literature review, which quotes the various related works done in this area of
study is discussed under chapter two, and the chapter three describes in detai I the
methodology followed in this research study. Chapter four contains the analysis of the

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information gathered through the questionnaire survey, identifies and ranks the causes
and effects of delays in construction of medium scale water supply projects; based on the
frequency of occurrence, degree of severity and importance and the discussion of results.
The formulation of Rule Based Tree Expert System for understanding and better
management of major delays in construction of medium scale water supply projects were
discussed in chapter five. And the last chapter provides the conclusions and
recommendations of the study.