Managing Delays in Construction Projects – Contractor’s Approach

Managing Delays in Construction Projects – Contractor’s Approach

Posted By: Fundi Mjanja on 17th of October 2013

If you are a Contractor involved in mechanical and electrical installations then most probably you have struggled to deal with delays in earlier phases of a project as a result of various factors that go beyond your control. One of the commonly used approach in such circumstances is the "Delay, Recover and Mitigate" (DRM) system. In order to deal with delays in construction or any other project for that matter and effectively apply the DRM approach one must be able to get early warning of delays that may be occasioned either the client, main contractor or the work force. Delays on the client part may arise because of change of mind regarding what he aspires to achieve on his project, communicating their instructions too late or dragging their feet when it comes to approving changes on the project, etc. They tend to overlook the fact that the delays on their part push ahead the finish date of the project and this renders the contractor powerless to avoid delay in delivery of the project. Delays by the main contractor may result through mismanagement and lack of proper coordination. Last but not least, contractor may himself cause delays, for example by under-resourcing the project in the early stages or not completing design drawings and getting them approved in time. The Client If the client is cause of the delay then the contractor must make sure that client knows when they are the cause of the delay. It is very crucial to make this clear because many clients have “selective memories”. When they make design changes, issue late instructions, or are slow in approving designs, they need to realize that there is a knock on effect. Time is indeed money, and in this case it is the contractor's money unless it is recognized by the client what the effect of their actions is on the completion of the project stages. Use phrases such as "Mr Client, I am happy to implement these changes, however, I need to point out that we need to get your approvals before I implement these changes" and then get it in writing as a point of future reference incase the client may decide to pass the blame onto you in case the project fail to beat the delivery timeline. Freeze design changes at a certain point to allow for procurement lead times, approvals etc. When there is a fixed deadline, for example the project under construction has to be occupied at a certain date then a "Point of No More Changes" must be put in place by the contractor. Too often the contractor is held accountable as "the Last Man Standing" - don't be caught in this position. The Contractor Monitor the work done by the earlier contractor or contractors carefully - and make sure delays outside your control are recognized and documented. Delays that are outside your control and impact you financially need to be recorded and the financial impact dealt with by the appropriate responsible person. Remember, you shouldn't bear the cost of other peoples' delays, nor should you be blamed for them! The Workforce Be on the lookout on what your team is doing that may result in delay in delivering the project.   Typical examples include starting late, late submission of drawings, mistakes in your drawings. Where the contractor is at fault he has to accept the costs and try and make good the delays and recover the costs incurred. Remember when we are honest about our errors the client will more than readily accept our claims when it's not our fault. Mitigate the impact of the delays by accelerating work and redefine the Critical Path. Whatever the cause of the delay, the contractor must try and recover his position - after all, if a critical date is missed, it may not matter to the client whose fault it is. In case of sub-contracting ensure that the main contractor understands the importance of "Partnering" rather than the usual "Directions" on the project’s progress.In cases where the delays  are caused by circumstances beyond the contractors control he should make sure that he is covered financially, typically by means of an extension of time.