Project schedule influenced by financial issues: Evidence in construction industry

Hamzah Abdul‐Rahman, Wang Chen, Roshana Takim, SzeMin Wong

Scientific Research and Essays · 2011 · 42 citations · 11 references

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TL;DR

Financial issues in construction projects can retard development and negatively affect a country’s overall economic condition. The study investigates financial‑related delays in construction projects, aiming to identify major causes and possible mitigation solutions. Data were collected through questionnaire and interview surveys from clients, contractors, consultants, and bankers. The study identifies contractors’ unstable finances, clients’ poor management, loan difficulties, and inflation as key causes, highlights clients’ pivotal role in mitigating delays, and offers corresponding recommendations.

Abstract

Financial issues in construction projects lead to serious consequences that may retard the development of a project and influence the overall economical condition of a country. This paper addresses the issues of financial-related delays in construction projects. Aiming to determine the major causes of financial-related problems leading to construction delay and to identify possible solutions in mitigating financial-related construction delays, data was collected though a questionnaire survey and a follow-up interview survey. Responses were obtained from a combination of clients, contractors, consultants and bankers in the questionnaire survey. Contractors’ unstable financial background, client’s poor financial and business management, difficulties in getting loan from financiers, and inflation were identified as the most significant causes. Findings indicate clients play the most important role in reducing the impact of financial problems towards project delay. Recommendations in mitigating financial-related delays are provided accordingly.

References

11