CHAPTER 1

INTRODUCTION

1.1 GENERAL

In construction practice, resource management were being a hidden aspect in

deciding the project performance & results of a project. Construction industries always
concentrate on project time & budgets, they were in a lack of realization about
construction resource management (CRM). As per present construction scenario 57% of
Indian construction projects are experienced time over run. This time over run was due to
improper resource management. For the completion construction contractors implies
surplus amount of resource to overcome the time pressure, this technique (crashing) may
affect profits margins and quality of their projects. In other hand it is observed that
construction industries faces ineffective human resource management because
construction industry are in availability of labours with inadequate professional training,
because they learn from their instructions of the each individuals perceptions, these leads
to material wastage of about 7-10%. This research intended to evaluate and analyse
construction industries about their present methodologies on management of resource &
technical hurdles in CRM, followed by setting out the various obstacles in
implementation, also to find out comprehensive framework for improvising optimal
resource management.

By resource management we can achieve effective limiting of human resource and

efficiencies, cut out the unnecessary cost on various elements such as earlier excessive
storing of materials, purchase on equipment tools etc. also application of appropriate
optimized techniques, effort & time can be saved leads to smart work and ended with

1
better progress. Also application of appropriate optimized techniques, effort & time can
be saved with better work progress.

1.2 CONSTRUCTION INDUSTRIES SCENARIO

Construction industries play a vital role in the development of the economic

growth of a country. In recent times, it has been witnessed that the construction industry
has become one of the leading industries in the globe. The increasing complexity of the
construction projects shows a greater demand on construction managers to deliver
projects on time, within planned budget and with high quality. The major challenge faced
by the construction industry in the developing countries is the chronic problem of cost
overruns.

Always concentrate on project Time & Budgets

Lack of realization about construction resource management (CRM).

1.3 FACTORS INFLUENCING COST OVERRUN

Construction delay is considered to be one of the major problems in the

construction and it has an adverse effect on project success in terms of time, cost and
quality. Contractor is also an important factor which influences the cost of project. Due to
wrong work, contractor's poor site management and supervision, inadequate contractor
experience, incorrect planning and scheduling by contractors, wrong estimation/
estimation method are the major causes of cost overrun. Changes in scope and objectives
of project and frequent design changes are least affecting factors on construction cost.
From literature review main problems faced by problems faced by the contractor in
optimization of the costs on site which include Shortage of material, labour or mechanical
plants, Ever-changing environment of construction work, Difficulty in collection of
standard data, Additional costs to carry out the system qualified expertise, Duration of the
project.

2
1.4 TIME COST OPTIMIZATION CONCEPT

The cost optimization is a process that should be carried out throughout the
construction period to ensure that the cost of the building is kept within the estimated cost
limits. In the construction field, time saving can also be transformed into some kind of
opportunity such as bonus of early completion or saving in overhead. Therefore, the
lowest tender price may not be the only criterion for project success and thus concurrent
optimization in both time and cost is highly encouraged and desirable.

1.5 CAUSES FOR TIME OVER RUN

The time overrun in construction projects has become one of the most common
problems in the industry that cause multitude of negative effects on the projects and its
stakeholders. Therefore, this aspect has been constantly investigated by the researchers
across the world with a great enthusiasm.

For the completion of construction projects on time, the contractors implies

surplus amount of resource to overcome the time pressure.

However, this technique (crashing) may affect profit margins and quality of their
projects.

Also, the construction industries faces ineffective human resource management

due to inadequate professional training leading to a resource wastage.

1.6 COST OPTIMIZATION TECHNIQUES

It is necessary to decide which optimization is required and amount of detail that

will be in used into the construction stage. Many cost optimization methods have been
implemented in the past by different companies and have not survived. The cost itself is a
major difficulty in operating a detailed cost optimization system. It is an expensive
operation for a large contract to carry out a detailed cost optimization system. There are
three types of cost optimization system; they are by comparison with a cost standard, by

3
subdivision by detail and by integration with other functions. In comparison with a cost
standard method, the standard set up by estimator is compared at the time of tender.
There are also other standards efficiency can be judged include set up by the work study
department of a company, previous outputs achieved within the company or within the
knowledge of the companys employees in the past, and standards that have been
published in books primarily for use of estimator, giving data on recommended outputs
for labour and plant. In the subdivision by detail method, it is usually practiced by small
scale of contractors compares the amount of money received with the amount of money
he has had to pay out to complete the contract at the end of the contract. It is not
expensive but a risky operation, involves little or no optimization of costs. It is also
inaccurate since estimator often omits some contentious items from a valuation, even
though payment will result from them. In integration with other functions method, the
cost optimization system will combine with some other necessary operation in the
administration of a contract and not as a separate entity. For example, it may be
combined with a labour utilization scheme, in which the optimization is kept on the
optimal utilization of the labour employed.

1.7 RESOURCE MANAGEMENT

These are resource optimization techniques which are used to adjust the project
schedule due to the demand and supply issues of project resources. Resource
optimization is a method of gaining efficiency and consistency of resource utilizations
within the project. Efficiency and Consistency means resources should not be over
allocated at any given time period than their calendar availability.

About 70% of the Project budget involve in construction material equipment

Material purchased too early may be held up and interest charge increased
35 % of overall efficiency can be increased by applying proper material
management system.

4
1.8 OBJECTIVE

To optimize time over run due to improper resource allocation & management in
construction industry. To minimize resource wastage due to inadequate professional
training of labours in construction industry. To evaluate and analyse the current resource
management techniques of construction companies. To develop a comprehensive
framework for optimal resource management.

1.9 SCOPE OF STUDY

To identify the probable areas of wastages which are prone to occur in the
construction industries and to provide optimal solutions for minimizing wastage of the
resource. Ensure Efficient/Effective Utilization of resources in construction industry.

5
 CHAPTER 2

LITERATURE REVIEW

2.1 REVIEW ON RELATED LITERATURE

Jesper Kranker Larsen, et al (2016) [1] analyzed the factors that project managers
experience as having the greatest effect on time, cost, and quality. Factors were ranked
using the relative importance index. From the findings it was determined that the most
influential factor for time is unsettled or lack of project funding; for cost, errors in
consultant material; and for quality, errors in construction work. The main conclusion of
this research is that project schedule, budget, and quality level are affected in
significantly different ways

Greeshma B Suresh, et al (2015) [2] researched work attempts to identify,

investigate, and rank factors perceived to affect delays in the construction projects with
respect to their relative importance. The top 10 major causes of construction delays in
construction industry are Shortage of construction materials, Effect of subsurface
conditions and natural disaster, Delay in material delivery, Low productivity of labours,
Rework due to errors, Late procurement of materials, Unqualified workforce, Low
productivity and efficiency of equipment, Delay in quality control, Poor site management
and supervision, Poor communication between parties & Lack of high technology.

P.M. Pethkar, et al (2015) [3] studied time and cost overruns as the most important
factors responsible for abandonment and contractors failure. Although the Indian
construction industry has gained far more importance in recent times because of opening
up of Indian markets and the arrival of megaprojects for infrastructure development.
Delay gives increase to disturbance of work and loss of productivity, late completion of
project increased time related costs, and third party claims and abandonment or
termination of contract. It is important that general management keep track of progress to

6
reduce the possibility of delay occurrence. Delays often results in time overrun, disputes,
litigation, and complete abandonment of projects.

Seyed Ali Mousavi Dehmourdi (2014) [4] the Objective of this paper are to apply
the principles of engineering economics, basic economic concepts, finance and
quantitative techniques to modelling and analysis of civil engineering projects. Also a
practical application of linear programming in a real life project problem with two
objectives as optimization of transporting cost of equipment and finding the best solution
for reducing the functional costs of the equipment. Mainly structured linear programming
model is used for optimizing the transporting cost of equipment. Applications of this
approach helps in determining the need for the replacement and the maintenance analysis
are based on the econometric approach to the realistic problems and the result shows that
optimization with advanced techniques really helps in minimization of cost of project.

Ali & Alrayes (2014) [5] explained the variables that might affect e procurement
adoption in Kingdom of Bahrain. Researcher has studied perceived organization e
readiness factors (POER) and perceived external e readiness factors (PEER). POER
factors comprise of awareness, commitment, governance, resources (human, business and
technology) effect the institutional adoption. Main PEER factors are market forces,
supporting industries and government. Licker model called perceived e readiness model
(PERM) which includes internal and external factors for IT adoption. Researcher also
define the status of adopters of e procurement- Non adopters (no connection to web, only
email), Initial adopters (web with interaction with email query etc.) and Institutional
adopters (transaction web online selling and purchasing, integration with suppliers,
customers and other back office).

Barbole A.N., Yuvraj D. Nalwade, Santosh D. Parakh ( June. 2013) [6] The
survival today for any company is how to manage its service Cost, quality, and
performance. Now a days the customers are continuously demanding high quality and
better performance of services and at the same time they want the prices to fall. For this

7
author focus on impact of cost control and cost reduction techniques in present scenario.
An objective of this paper is to understand the basic concept of Cost, Cost Control, and
Cost Reduction and to study various Tool and Techniques available for Cost Control and
Cost Reduction. The Cost Control and Cost Reduction techniques used in manufacturing
sector like Value Engineering, Quality Control, and Budgetary Control are specified by
the author also cost, cost reduction, cost control etc. Various terms are specified by the
author.

Desai Megha, et al (2013) [7] studied the delay factors and catego0rised it in nine
major groups as: Project, owner, contractor, Consultant, Design, Material, Equipment,
Labour and External related delay factors depending on their nature and occurrence on
practical situations on projects. The study was done through questionnaire survey of
many Residential Projects across India and found its ranking through Relative
Importance Index and Importance Index consisting of Frequency and Severity Index and
finally the recommendations for theses delay factors are covered.

Ibrahim Mahamid, et al (2012) [8] conducted the study to investigate the time
performance of road construction projects in the West Bank in Palestine to identify the
causes of delay and their severity according to contractors and consultants through a
questionnaire survey. A total of 52 causes of delay were identified during the research.
The survey concluded that the top five severe delay causes are political situation, award
project to lowest bid price, progress payment delay by owner, and shortage of equipment.

A.S. Ali, S.N. Kamaruzzaman (2010) [9] as per the author for management of
construction 4 parameters important are as follows: scope, cost, time, and quality. the
main aim of the author is to find out the problem or parameters which contribute for the
cost overrun. for this they carried out the quaternary survey on the live projects. for the
data analysis the method used is quantitative based i.e. descriptive statistics and ranking
analysis is used. from the investigation they found that factors which contributes to cost
overrun was inaccurate or poor estimation of original cost and factor which don't affect is

8
mistake in design for this to control the construction cost method suggested by the author
is proper costing and financing. Also they concluded that cost overrun is most serious
problem which may affect the construction project effectively.

Ming Sun a. (2008) [10] Examined the impact of frequent construction project
change on its quality, time delay, cost. The project change causes are Project related,
Client related, Design related, Contract related and External factors Whereas change
effect are Time related, Cost related, Productivity related, Risk related and other effects.
The researcher proposed. A change management process model: start up, identification
and evaluation, approval and implementation and review.

Magdalena Rogalska (2008) [11] This paper identifies the analysis of the time/cost
relationship, performed using time coupling method TCM III. A modified hybrid
evolutionary algorithm (HEA) developed by Boejko and Wodecki was used for
optimization. He suggest the method of The Critical Chain Scheduling Buffer
Management which to take into account randomness, The relationship between additional
construction project realization costs generated as a result of the difference between the
actual work commencement dates and the latest work commencement dates was
examined. The future research can be carried out by applying presented ideas to other
problems of construction practice and other criterion functions, for which optimal
algorithms are powerless.

Van Truong Luu a, (2007) [12] Identified nine key performance indicators to
measure the project management performance as a benchmarking.

The key performance indicators are Construction cost performance, Construction time
performance, Customer satisfaction on services, Customer satisfaction on products,
Quality management system, The project team performance, Change management and
Labour safety management. The conceptual framework application was limited to only
three contractors hence the benchmarking can be applied to other construction projects
and more contractors.

9
 Assaf, S.A. and Al-Hejji, S. (2006) [13] Aimed at identifying the reasons for delay
and time performance of various construction projects. The study identified 76 reasons
for the delay in projects. Majority of the respondents revealed that 70 percent of the
projects experience time overrun of 10 percent to 30 percent of the original time. The
study was done in Saudi Arabia on overall construction projects, and the future study
can be done on a specific type of construction projects, such as utility projects, highways
construction project, dam construction projects, etc.

Ala-Risku, T and Karkkainen M (2006). [14] Conducted study on construction

projects to identify material delivery problems due to new project management methods.

The research tried to address two important issues;

Material delivery process with short response time and

Transparency in material availability.

Inventory transparency, shipment tracking and proactive delivery for material

delivery problems. The concept need to be examined in the companies with delivery
scheduling procedures for timing material replacements with an aim to decide the
important elements of supply chain transparency and its economic effect. Secondly the
differences in material flow and its challenges need to be compared in various
construction projects.

Nirmal Kumar Acharyat, et al (2006) [15] surveyed that the instrument was distributed
in construction fields to obtain construction professionals experience that how much the
instrumented delay causes have been affecting the timely completion of the projects. The
Four categories of Owner, Contractor, Project and Third Party related delays were
adopted for this study. The mean score values and ranking is done to different delay
factors.

Daisy X.M. Zheng, S. Thomas Ng , Mohan M. Kumaraswamy (2002) [16]

Completing a construction project with the least time and cost is critical Factor and

10
usually requires the engagement of additional labour and plant or the adoption of
alternative construction techniques which add extra cost liabilities to the contractor. For
time-cost optimization several analytical models have been developed. From those the
Genetic Algorithms (GA) could be used to establish the fitness of solutions by evaluating
the objective function and its constraints. the objective of paper is to compare the
analytical power of the GA with other techniques proposed for TCO. The results come
out which indicate that the GA techniques could generate the most optimal outcome for
construction Time Cost Optimization it is more beneficial when the project is large
and/or complex.

Subramaniam, C. and Shaw, M.J., (2002), [17] the Business-to businesses

processes differ along several dimensions, such as specificity, struct redness, variation in
demand, frequency of orders, value of product, amount of human intervention required,
and complexity. The realized value of e-Procurement depends not just on the complexity
of the procurement process, but also on the transaction volume of this procurement
category. Moderately complex items (i.e., MRO, office equipment, software, and
services) had the potential to return higher benefits than simple or more complex items.
More complex purchases require more time and effort to be set up in an e-procurement
system, and deciding which item to Web-enable at earlier stages depends on the
distribution of transactions of different complexity

11
 CHAPTER 3

METHODOLOGY

3.1 METHODOLOGY

The process of our research has been illustrated in the flowchart given below.

Fig.1 Flow chart for methodology

12
3.2 PHASES OF PROJECT WORK
The following are the phases involved in the project,
The first phase of the project includes literature review. The extensive literature
review is done on resource management.
The second phase includes data collection on the resources involved in the
construction project.
The third phase of the project work is preliminary analysis of planned and actual
time schedule for identifying the delay.
The fourth phase is fixing of parameters of delay due to resources.
The fifth phase is micro analysis of delay due to resources.
The sixth phase is the identification of reasons for delay
The final phase is to provide optimized solutions for the problems identified due to

delay.

13
 CHAPTER 4

DATA COLLECTION

4.1 DELAY ANALYSIS

Delay analysis data has been collected from various construction industries such
as commercial, Industrial areas, Pharma & Industrial project on different kinds of project
done by them.
Table-4.1 Kinds Of Project
No Research Area Number of Cases Identified

1 Commercial 10

2 Pharma 10

3 Industrial 10

4.2 DATA SHEET FOR COMMERCIAL PROJECT

Table-4.2 Data sheet for commercial project

PROJECT DURATION
PROJECT DELAYS IN
CLIENT MANAGEMENT OF
NAME PROJECT
CONSULTANT PROJECT

Jones Lang
NetApp, LaSalle Property
NetApp 10 months Yes (3months)
Bangalore Consultants
(India) Pvt Ltd

Sun River, Jones Lang

Embassy golf Sun River LaSalle Property 12 months Yes (1months)
links Consultants

14
 Bangalore (India) Pvt Ltd

Jones Lang
KOTAK, LaSalle Property
KOTAK 13 months Yes (4months)
Bangalore Consultants
(India) Pvt Ltd

SKF,
SKF CBRE 15 months Yes (4months)
Bangalore

Toyota,
Toyota CBRE 15 months Yes (3months)
Bangalore

Tyco,
Tyco CBRE 13 months Yes (2months)
Bangalore

Honeywell,
Honeywell CBRE 14 months Yes (4months)
Bangalore

Amada,
Amada Renaissance 06 months Yes (1months)
Bangalore

Jones Lang
Goldman
Goldman LaSalle Property
Sachs, 15 months Yes (4months)
Sachs Consultants
Bangalore
(India) Pvt Ltd

MRF,
MRF Renaissance 13 months Yes (4months)
Bangalore

4.2.1 DELAY RESULTS OF COMMERCIAL PROJECTS

The below table shows delay analysis of various projects and are categorized according
to various works. For analysis Purpose Maximum delays were considered which are
based on the data collected from various Commercial Projects.

15
 Table-4.3 Occurrence of maximum delay in commercial project
S.No Schedule Actual Max Resource Others Type of
complete complete Delay In Delay work
Date Date Days
1 13-Dec-15 10-May-16 149 Material Climatic HVAC
39days, Factors
Manpower 37days
31days,
Machinery
42days
2 04-Nov-15 26-Jan-16 83 Material Climatic Plant room
49days, Factors
Manpower, 14days
Machinery
20days
3 03-Jan-16 19-May-16 137 Material Climatic Service
73days, Factors works
Manpower
23days,
Machinery
41days
4 04-Feb-16 20-Jun-16 137 Material Climatic HVAC
62days, Factors
Manpower, 45days
Machinery
30days
5 04-Nov-15 06-Feb-16 94 Material, Climatic STP
Manpower Factors
43days, 28days
Machinery
23days
6 18-Sep-15 13-Nov-16 56 Material, Climatic Painting
Manpower Factors works
38days, 18days
Machinery
7 03-Jan-15 09-May-16 127 Material Climatic HVAC
59days, Factors
Manpower
37days,
Machinery
31days
8 20-Jan-16 30-May-16 131 Material Climatic Black Utility
16
 76days, Factors Piping
Manpower 33days
22days,
Machinery
9 04-Feb-15 25-Jun-16 142 Material Climatic HVAC
25days, Factors
Manpower 58days
37days,
Machinery
22days
10 04-Feb-16 30-Jun-16 147 Material, Climatic Service
Manpower Factors works
57days, 26days
Machinery
64days

4.3 DATA SHEET FOR PHARMA PROJECT

Table-4.4 Data sheet for pharma project

PROJECT DURATION
PROJECT DELAYS IN
CLIENT MANAGEMENT OF
NAME PROJECT
CONSULTANT PROJECT

Jones Lang
Mylan Ltd, LaSalle Property
Mylan 11 months Yes (4months)
Bangalore Consultants
(India) Pvt Ltd

Jones Lang
Biocon, Biocon LaSalle Property
13 months Yes (2months)
Bangalore Limited Consultants
(India) Pvt Ltd

Jones Lang
Syngen, LaSalle Property
Syngen 15 months Yes (3months)
Bangalore Consultants
(India) Pvt Ltd

17
 Cipla,
Cipla Renaissance 10 months Yes (4months)
Bangalore

Sun Pharma, AN Prakash

Sun Pharma 13 months Yes (2months)
Bangalore Construction

Micro Lab,
Micro Lab CBRE 08 months Yes (2months)
Bangalore

Orchid Ltd,
Orchid Ltd Renaissance 13 months Yes (4months)
Bangalore

Ordain health,
Ordain Renaissance 11 months Yes (3months)
Chennai

Lupin Ltd,
Lupin CBRE 13 months Yes (3months)
Bangalore

Jones Lang
Ipca Ltd, LaSalle Property
Ipca 13 months Yes (4months)
Bangalore Consultants
(India) Pvt Ltd

4.3.1 PHARMA PROJECT

Table-4.5 Occurrence of maximum delay in pharma project
S.No Schedule ActualMax Resource Delay Others Type of
complete complete
Delay work
Date Date In Days
1 28-Apr- 05-Dec-16
221 Material Climatic Board
16 71days, Factors Fixing
Manpower 26days
65days,
Machinery
59days
2 18-Sep-15 23-Nov-15 66 Material Climatic Painting
14days, Factors works
Manpower 39days
13days,
Machinery

18
3 18-Apr- 08-Aug-16 112 Material Climatic Footing
15 26days, Factors concreting
Manpower 27days
59days,
Machinery
4 13-Dec- 10-May- 149 Material Climatic HVAC
15 16 73days, Factors
Manpower
76days,
Machinery
5 18-Sep-15 11-Nov-15 54 Material Climatic Painting
12days, Factors works
Manpower 26days
16days,
Machinery
6 15-Jan-16 26-May- 132 Material, Climatic Black
16 Manpower Factors Utility
36days 49days Piping
Machinery
47days
7 03-Jan-16 19-May- 137 Material, Climatic HVAC
16 Manpower Factors
34days,
Machinery
73days
8 10-May- 25-Oct-16 168 Material Climatic CIVIL
15 74days, Factors WORKS
Manpower
53days,
Machinery
41days
9 17-Mar- 19-May- 63 Material, Climatic Excavation
15 15 Manpower, Factors
Machinery 41days
22days
10 28-Oct-15 29-Mar-16 153 Material87days, Climatic Chiller
Manpower, Factors installation
Machinery
66days

19
 The above table shows delay analysis of various projects and are categorized
according to various works. For analysis Purpose Maximum delays were considered
which are based on the data collected from various pharma Projects.

4.4 DATA SHEET FOR INDUSTRIAL PROJECT

Table-4.6 Datasheet for industrial project

PROJECT DURATION
PROJECT DELAYS IN
CLIENT MANAGEMENT OF
NAME PROJECT
CONSULTANT PROJECT

CIFI Bank,
CIFI Ltd CBRE 11 months Yes (4months)
Bangalore

Dell
International
Dell Ltd AN Prakash Ltd 09 months Yes (2months)
Service,
Bangalore

SAP Global
Delivery, SAP Ltd Renaissance 8 months Yes (2months)
Bangalore

BNC,
BNC CBRE 9 months Yes (2months)
Bangalore

Pragathi
Packing, Pragathi Aarvee Associates 8 months Yes (2months)
Hyderabad

Expedia,
Expedia Renaissance 13 months Yes (5months)
Hyderabad

Shell, Focus
Shell 9 months Yes (2months)
Bangalore Infrastructure

Siemens,
Siemens CBRE 11 months Yes (1months)
Bangalore

20
 Dmart,
Dmart Aarvee Associates 13 months Yes (5months)
Bangalore

Jones Lang
Royal Enfield, LaSalle Property
Royal Enfield 13 months Yes (4months)
Bangalore Consultants
(India) Pvt Ltd

4.4.1 INDUSRTIAL PROJECT

Table4.7 - Occurrence of maximum delay in industrial project
S.No Schedule Actual Max Resource Others Type of work
complete complete Delay In Delay
Date Date Days
1 10-May-15 25-Oct-15 168 Material Climatic Doors &
73days, Factors windows
Manpower 54days frame
41days,
Machinery
2 30-Oct-15 08-Apr-16 161 Material Climatic Chiller
84days, Factors installation
Manpower,
Machinery
77days
3 04-Jan-16 18-May-16 135 Material, Climatic Ceiling Panel
Manpower Factors Completion
33days, 56days
Machinery
46days
4 30-Sep-15 19-Feb-16 142 Material Climatic Brick work
81days, Factors
Manpower
61days,
Machinery
5 13-Feb-16 11-Jun-16 119 Material, Climatic HVAC
Manpower Factors
47days, 19days
Machinery
53days
06 10-May-15 25-Oct-16 168 Material Climatic Doors &
21
 87days, Factors windows
Manpower 46days frame
35days,
Machinery
07 30-Oct-15 08-Apr-16 161 Material Climatic Chiller
91days, Factors installation
Manpower
70days,
Machinery
08 04-Nov-15 02-Feb-16 90 Material, Climatic Smoke test
Manpower, Factors for ducts
Machinery 47days
43days
09 13-Dec-15 10-May-16 149 Material Climatic HVAC
71days, Factors
Manpower,
Machinery
78days
10 03-Jan-16 22-May-16 140 Material Climatic HVAC
73days, Factors
Manpower, 67days
Machinery

The above table shows delay analysis of various projects and are categorized according to
various works. For analysis Purpose Maximum delays were considered which are based
on the data collected from various Industrial Projects.

4.5 PRELIMINARY ANALYSIS

The analysis of data between scheduled time & actual completion time. Initially
preliminary analysis scheduled time and actual completion time is done and the deviation
in the schedule is found. From the collected data the reasons for the delay is examined.

4.5.1 COMMERCIAL PROJECT

This graph is based on the various projects vs. durations. Each project is compared with
the scheduled completion time and actual completion time. Project 6 is the most effective
in completion.

22
 Fig.2 Schedule Completion time Vs Actual Completion time for commercial project

Schedule Complete Actual Complete

DURATION

1 2 3 4 5 6 7 8 9 10
PROJECT

4.5.2 PHARMA PROJECT

Fig.3 Schedule Complete time Vs Actual Complete time for residential project

Schedule Complete Actual Complete

DURATION

1 2 3 4 5 6 7 8 9 10
PROJECT

The above graph is based on the various projects vs. durations. Each project is compared
with the scheduled completion time and actual completion time. Project 5 is the most
effective in completion

23
4.5.3 INDUSTRIAL PROJECT
Fig.4 Schedule Complete time Vs Actual Complete time for industrial project

Schedule Complete Actual Complete

DURATION

1 2 3 4 5 6 7 8 9 10
PROJECT

This graph is based on the various projects vs. durations. Each project is compared with
the scheduled completion time and actual completion time. Project 6 is the most effective
in completion.

4.6 FIXING OF PARAMETERS

The delays which were taken into account are material, machinery, man power and
minor factors. The below table shows the main reason by which the projects has been
delayed.

4.7 MICRO ANALYSIS

Micro analysis is done on data collected from various projects, this is in depth
analysis on the data collected, each & every parameters are analysed in all aspects taken
into consideration, such as type of materials used for construction, the distance of
materials transported, timely delivery of the material, kind of labours, engineers
employed company, all staff experience has been analysed, an experienced man in
respective field will be helpful in increasing efficiency of work, then location of site from
the material resource, proper timely delivery is important for the continuous work,
environmental condition prevailing in the site area are examined, an rainy season

24
basically affects all sort of work progress, climate condition should be considered as
important parameter while planning a project. Financial status, credit facility also
analysed. Equipment used for various kinds of work are analysed, different kind of work
requires different types of equipment, proper and selective equipment usage helps us to
concentrate on progress of work.

4.7.1 COMMERCIAL PROJECT

The maximum delay for each project is calculated by dividing the maximum
delays of each categories and converting it to percentage. For example the maximum
delay for project 1 is calculated by ((42/149) *100) = 28%. Likewise the maximum delay
were calculated for maximum delay is taken into account for analysis purpose.

Table-4.8 Delay occurrence In commercial project

Project Max Material Machinery Manpower Other Max
Delay Delay
in Delay % Delay % Delay % Delay %
days
1 149 39 26 42 28 31 21 37 24 Machinery
2 83 49 59 20 24 --- --- 14 16 Material
3 137 73 53 41 29 23 16 --- --- Material
4 137 62 45 30 22 --- --- 45 32 Material
5 94 --- --- 23 24 43 46 28 30 Manpower
6 56 --- --- --- --- 38 68 18 32 Manpower
7 127 59 46 31 24 37 29 --- --- Material
8 131 76 58 --- --- 22 16 33 25 Material
9 142 25 17 22 15 37 26 58 41 Other
10 147 --- -- 64 43 57 38 26 18 Machinery

25
 This table displays the projects that affected by late material delivery

Projects affected by material delay

Factors Total
Materials 5
Machinery 2
Manpower 2
Other 1

Fig 5 Contribution % of delay due to resources in commercial project

TOTAL CONTRIBUTION

10%

MATERIAL
20%
MACHINERY
50%
MANPOWER
OTHER FACTORS
20%

Based on the findings in the commercial projects, it is observed that the contribution
percentage of each delay. The delay percentage are determined as follows, Materials-
50%, Machinery-20%, Manpower-20% and other factors-10%. Contribution

4.7.2 PHARMA PROJECT

The maximum delay for each project is calculated by dividing the maximum
delays of each categories and converting it to percentage. For example the maximum

26
delay for project 1 is calculated by ((71/221) *100) = 32%. Likewise it is calculated for
the delays and the maximum is taken into account.

Table-4.9 Delay occurrence In Pharma project

Project Delay Material Machinery Manpower Other Max
Delay
Max Max Max Max Max Max Max Max
out out out out
of of of of
100 100 100 100
1 221 71 32 59 26 65 29 59 26 Material
2 66 14 21 --- --- 13 20 39 59 Other
3 112 26 23 --- --- 59 52 27 24 Manpower
4 149 73 48 --- --- 76 51 --- --- Manpower
5 54 12 22 --- --- 16 29 26 48 Other
6 132 --- --- 47 35 36 27 49 37 Other
7 137 --- --- 73 53 64 47 --- --- Machinery
8 168 74 44 41 24 53 31 --- --- Material
9 63 --- --- 22 34 --- --- 41 65 Other
10 153 87 56 66 43 --- --- --- --- Material

Factors Total
Materials 3
Machinery 1
Manpower 2
Other 4

27
 Fig.6 Contribution % of delay due to resources in residential project

TOTAL CONTRIBUTION

30% MATERIAL
40%
MACHINERY
MANPOWER
OTHER FACTORS
10%

20%

Based on the findings in the Residential projects, it is observed that the

contribution percentage of each delay. The delay percentage are determined as follows,
Materials-30%, Machinery-10%, Manpower-20% and other factors-40%.

4.7.3 INDUSTRIAL PROJECT

The maximum delay for each project is calculated by dividing the maximum
delays of each categories and converting it to percentage. For example the maximum
delay for project 1 is calculated by ((73/168) *100) = 43%. Likewise it is calculated the
maximum is taken into account.

28
 Table-4.10 Delay occurrence due to manpower
Project Delay Material Machinery Manpower Other Max
Delay
Max Max Max Max Max Max Max Max
out out out out
of of of of
100 100 100 100
1 168 73 43 --- --- 41 24 54 32 Material
2 161 84 52 77 48 --- --- --- --- Material
3 135 --- --- 46 34 33 24 56 41 Other
4 142 81 57 --- --- 61 43 --- --- Material
5 119 --- --- 53 44 47 39 19 16 Machinery
6 168 87 52 --- --- 35 20 46 27 Material
7 161 91 56 --- --- 70 43 --- --- Material
8 90 --- --- 43 47 --- --- 47 52 Other
9 149 71 47 78 52 --- --- --- --- Machinery
10 140 73 52 --- --- --- --- 67 48 Material

Factors Total
Materials 6
Machinery 2
Manpower 0
Other 2

29
 Fig .7 Contribution % of delay due to resources in industrial project

TOTAL CONTRIBUTION

20%
MATERIAL
0%
MACHINERY
MANPOWER
20% 60%
OTHER FACTORS

Based on the findings in the Industrial projects, it is observed that the contribution
percentage of each delay. The delay percentage are determined as follows, Materials-
60%, Machinery-20%, Manpower-0% and other factors-20%.

4.8 IDENTIFICATION OF PROBLEMS

Identification of problems in a project is important task, in any project delay is caused

by problems faced in projects, these problems should be identified at early stage in order
to complete the project in due time, when we have analysed the data collected from
various construction projects, we have found that major projects are delayed by improper
or late delivery or supply of materials. Main source of progress of projects depends on the
continuous supply of materials, improper supply of materials at projects affects the
projects very much.

Based on the analysis, the major factor that affects the project is delay in supply of
materials.

30
 CHAPTER 5

RESULT & DISCUSSION

It is clear that the reasons for maximum delay in above projects are due to material
supply. Based on the comparison of those three projects material goes major. Minimizing
delay in construction due to material supply would support the whole construction
industry and the development process in. Adding to that the efforts, energy, human
resources consumed in extra time in terms of delay at these construction projects.

Fig 8 Delay comparisons of the projects

DELAY COMPARISION
COMMERCIAL PHARMA INDUSTRIAL
INDUSTRIAL

7
COMMERCIAL

PHARMA
5
PHARMA

4
COMMERCIAL

COMMERCIAL
INDUSTRIAL

INDUSTRIAL
PHARMA

3
COMMERCIAL
PHARMA

2
INDUSTRIAL

0
MATERIAL MACHINERY MANPOWER OTHER

5.1 PROVIDING OPTIMIZATION SOLUTION

Based on the analysis and comparison made on the data collected, it is evident that
many factors affect the progress of project in different ways, but here material plays a
crucial role in completing project in scheduled time, The continuous supply for material

31
contributes to efficiency of project. Following Technique named, Just-In-Time, will
help us to be aware of the availability of the resources for the project. Hence, this
technique could be well suited for completion of project in scheduled time.

To optimize the delay of construction project. It is planned to use E-Procurement

technology by means of developing an online website/Software. In that website one can
feed the current stock details and future requirement of material & emergency
requirement of project. The website is used to connect the material supplier & contractor
by means of secured user ID & password. The website is updated everyday by contractor
so that the supplier can easily identify the current status of material in stock &
requirement for future project work. And also during emergency requirement. The
important thing to be noticed that supplier should be within the range surrounding area &
should have enough of go down & space to store the material.

E-Procurement technology helps of supplier to help the stock of material needed of the
project

An example of this information is shown below:

Item Total Quantity Quantity Future

S.No Material
Code Quantity Purchase in Stock Requirement

Main drivers in adoption of e procurement are transaction & administration cost

saving, reduce time, more transparency, improved communication between suppliers and
buyers.

E Procurement adoption in different countries Every country has different

challenges in adoption of E- procurement in construction industry. Research has been

32
conducted for different countries with respect to E- procurement in construction industry
base on country wise challenges but no comprehensive study has done.

E procurement has emerged as panacea to address most of the problems- cost

saving, time saving and best quality, minimization of malpractices associates with
purchasing.

5.2 E PROCUREMENT

Due to globalization and the emergence of the Internet, the accessible market has
grown, thus leading to unprecedented opportunities for sellers and buyers alike.
Managing the purchasing process by traditional means can be very inefficient and
interminable due to the excessive complexity. The use of electronic media in
procurement activities can be conducive and thus lead to a significant cost and time
reduction. In most common definitions, e-procurement is the streamlining of the
procurement process by eliminating paperbased documents and rather conducting parts
or all of the purchasing process via web-based communication systems. Nevertheless, the
exact definition of e-procurement is still being discussed. For some authors, e-mail
ordering is also part of e-procurement, others draw the line at ordering via online shops
and some only talk about e-procurement if ordering software either in combination with
e-mail or electronic data interchange (EDI) is used for the procurement process. Tatsis et
al. For example, define e-procurement as the integration, management, automation,
optimization and enablement of an organizations procurement process, using electronic
tools and technologies, and web-based applications.

5.3 REQUIRED FUNCTIONALITIES FOR E-PROCUREMENT SCENARIO

The e-Procurement scenario focuses the envisioning efforts mainly on two of these
tasks:

1. Selection of suppliers.

2. Analysis of quotation task

33
 The Procurement Configurator external service provides means to configure the
list of potential suppliers that can provide a certain schedule of deliveries. This schedule
consists of a list of products, materials, machinery and equipment identified by a standard
classification system. Examples of possible classification systems are CPV (Common
Procurement Vocabulary), UNICLASS, OMNICLASS etc. During the tests the CPV
classification system will be used. The Procurement Configurator service takes the list of
products, materials, machinery and equipment needed from the schedule of deliveries and
matches them with those offered by the companies. The configurator will provide
different possible configurations of companies that can provide the schedule of deliveries
ranked according to the criteria defined by the user.

In future e-marketplace, the products and services will be published allowing

different ways of interdependences between them to provide the best matching
mechanism for a specific market need.

To minimize the construction cost and duration at each phase is important. It is a

need to meet the present day requirements and to complete the project within the
estimated time, cost, and available resources. Mainly affecting the factor on cost of
project is delay in project and material. Several methods have been developed and
applied to analyse the time-cost problems, but they can optimize only one parameter

5.4 JUST IN TIME (JIT)

JIT construction is a comprehensive management system of engineering, Its the

core content of pull control system and its one of the core idea of lean construction
mode. It demands based on market demand time organization each construction link, to
complete the required work when required, try to make the conversion between each sub
project of the time is close to zero. JIT construction system can not only help construction
enterprise improve work efficiency, effectively save the construction cost in higher
proportion of labour cost and capital cost, but also accelerate the capital turnover rate and
time.

34
5.5 RECOMMENDATION

These delays are badly affecting the large construction industry and it is needed to
find a solution for countering the delays. The solution to avoid and counter delays is to
avoid and lessen the causes related with delays, and in result there will be lesser effects of
delays on large construction industry.

It is suggested to deal with the causes and find a solution so that these causes not
happen or happen very less. The financial problems should be avoided, by making the
payments on time. The client should make timely payments to the contractor and
contractor should make the timely payments to the subcontractors, suppliers and labor. It
is suggested that the time and cost estimation of the project should be accurate. The
material should not face the shortage situation and the materials quality should be
checked properly so that less errors and problems happen.

The subcontractors should complete their work on time and the suppliers should
supply the materials on time. The site should be managed properly and there should be
proper equipment for the construction. The new technology and techniques should be
preferred and there should be skilled workers and labour working on the construction
project. All changes should be done before the start of construction, because change
orders and design changes during the construction should be avoided. The site conditions
should be studied in detail before the start of construction and there should be
consideration about the disaster, geographical and soil conditions. It is suggested that
during the construction stage, the organizational changes and regulatory changes should
be avoided or so they should not affect the progress of construction. The effects should be
lessened by dealing with causes leading to the effects.

Time overrun and Cost overrun are most common effects, which can be solved or
lessened by dealing with the causes leading to time overruns and cost overruns. If the
construction project is started, then it should be completed and the case of abandonment
should not be considered. The disputes, negotiations and court cases should be solved on

35
time and it is preferred that they should not happen and if they happen then the timely
solution should be done. By studying the relationship between effects and causes, we can
counter the delays by dealing with causes leading to effects.

5.6 RESEARCH GAPS IDENTIFIED

The literature reviewed and discussed above, which is primarily focused on the
scope of Procurement in Construction Projects, scope of application of eProcurement in
various industrial sectors, identifies a number of potential factors that might affect the
adoption of e-procurement within the Construction Industry.

However, it has become apparent from this review, that there are a number of
significant gaps in the current literature in relation to the uptake and adoption of
eProcurement. More specifically, the following important gaps have been identified:

Current studies of e-procurement have tended to adopt rather narrow definitions

and conceptualisations of e-procurement. There are a number of studies that identify
factors that might affect the adoption of e-procurement, but they tend not to be
empirically tested in relation to Construction Industry. Moreover, such studies do not
provide complete and coherent taxonomies of the problems with traditional procurement,
or the potential benefits of, and inhibitors / facilitators of e-Procurement adoption in
Construction Industry.

Where empirical studies of the adoption of e-procurement, have been conducted,

they tend to be industrial sectors not related to Construction, focusing on a restricted set
of adoption factors and a narrow conceptualization of e-procurement.

Although independent studies as specified in the literature have been conducted on

the Commodity Dimensions, Buyer benefits/barriers and Suppliers benefit/barriers
towards adoption of e-Procurement independently at various industrial sectors, the above
aspects have not been studied with context to Construction supply chain in a single
market.

36
 Against this backdrop, a study was initiated to investigate the factors affecting the
uptake and adoption of e-procurement among the Construction Material buyers and
Suppliers in Kuwait. Whilst this study explicitly builds upon the factors identified in prior
studies, it was envisaged that it would provide a far deeper and richer data set, upon
which to draw conclusions.

37
 CHAPTER 6

CONCLUSION

6.1. GENERAL

The projects failures can be witnessed. As a rule, 12 to 15 percent projects are well
scheduled. However, about 20 to 25 percent projects are planned with the available
resources. These projects may complete in time but always there is an uncertainty to its
completion time and cost. About 50 to 60 percent projects lack proper planning. It might
take much more time than the scheduled time for completion. From the analysis made, it
is clear that more than 47 percent of the delay is shared by materials. A control over the
procurement and carrying of materials will definitely reduce the total project cost. From
the literature there is no such system so far developed. Hence a model has been proposed
to optimize the material purchase and storage, which would beget support in completion
of project in time.

A massive difference in the adoption rate of e-procurement turns out when

comparing these results of the survey study in the construction industry to other
industries like the automotive industry. In the automotive industry almost every company
uses e-procurement systems. Reasons for the difference of the adoption rate of e-
procurement between these two industries may be that the automotive industry
concentrates on mass production and distribution of nearly similar products while
construction firms are predominated by a project-related business. Most projects are
customized and therefore they differ from each other and the material and services
needed have to be ordered and calculated separately for every project. This makes it
harder to standardize the procurement processes which are a precondition for the
implementation of ordering software. It is evident that e-procurement provides not as
much cost reduction potential to the procurement department in the construction industry
as in industries that always use the same parts.

38
6.2 FUTURE RESEARCH

By proposing a structural model of the e-procurement effect we hope to provide

a basis for future research development. Our current work is focusing on three discrete
elements of this model, primarily around the mediating variables of internal service, e-
procurement compliance, and supply relationships. Works can also be undertaken within
the private sector in order to assess the extent to which findings from this study are
paralleled in a different context. A largescale survey can be used to evaluate the impact of
e-procurement Such studies conducted around a common model allow for comparative
analyses.

39
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