Investigation of factors responsible for delays in the execution of adequately funded construction projects

Ogbeifun Edoghogho () and Pretorius Jan-Harm C
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Ogbeifun Edoghogho: University of Johannesburg, South Africa
Pretorius Jan-Harm C: University of Johannesburg, South Africa

Engineering Management in Production and Services, 2022, vol. 14, issue 1, 93-102

Abstract: Many research efforts have identified funding as a critical factor responsible for the delays in the execution of construction projects. These funding challenges affect the client and contractors alike. However, there is limited information on why delays occur in sponsored projects with evidently adequate funding. Therefore, the study focuses on exploring the factors that impact the cash flow during the execution of sponsored construction projects. The multiple-site case-study method of qualitative research was adopted, involving five universities benefiting from the infrastructure funding provided by a government agency in Nigeria. The Delphi technique was used for data collection and analysis, complemented with interviews. The findings identified six factors causing the delays. They were divided into internal and external factors. The internal factors are faulty contractor selection processes resulting in delays by contractors and the failure to complete appropriate phases of a project. The external factors include the delays in the project management system of the funding agency in terms of inspection, monitoring, evaluation and progress certification. The research identified that the combined effect of internal and external factors negatively impacts the project cash flow, which in turn influences project delivery delays. Therefore, this study recommends improvements in the in-house contractor selection processes and the decentralisation of the project inspection, monitoring and evaluation operations of the funding agency. This will facilitate timely inspection, audit, and progress certification, enabling the early release of the second tranche of the project fund. This will ameliorate the negative effects arising due to low cash flow and associated delays in project delivery.

Keywords: adequate funding; construction projects; delays; Delphi technique; funding agency; internal and external factors (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecoman:v:14:y:2022:i:1:p:93-102:n:10

DOI: 10.2478/emj-2022-0008

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