OVERVIEW OF CONSTRUCTION DELAY IN MARA PROJECTS

Mohd Razaki Bin Abdullah, Ismail Bin Abdul Rahman and Ade Asmi
Faculty of Civil and Environmental Engineering
Universiti Tun Hussein Onn Malaysia

Abstract

Construction industry plays an important role in Malaysia economy. It contributes about 2.5% of
country GDP in 2007. The frequent delay in construction projects has become a phenomenon to
this industry. Although a lot of money has been spent in construction, the industry is facing a lot
of challenges such as the delay to complete the project in time, the expenditure exceeding the
budget, the building defects and over dependent of foreign workers. MARA as a government
agency involves indirectly in construction industry. It is also facing the construction delay
problems to its projects. This paper presents the summary of construction delay from past
researchers and also the profile of construction projects delay handle by MARA.

Key words: Construction delay, MARA project

1.0 Introduction

Malaysia construction industry recorded an average growth rate of 0.7% over the period of 2000
to 2007 (CIMP, 2007). In 2006, RM 55.1 billion worth of contracts was awarded to public and
private contracts compared to RM 50.1 billion in 2001(CIDB, Second quarter 2007). It is
expected the amount ballooned to more than RM 70 billion in 2009 or 3.5% of the GDP with the
introduction of many mega projects. Although a lot of money has been spent in construction, the
industry is facing a lot of challenges such as the delay to complete the project in time, the
expenditure exceeding the budget, the building defects and over dependent of foreign workers
(CIDB news, 3/2007)

MARA is one of the government agencies that plays important role in implementing the
government policy and was formed on March 1, 1966 under the Rural and National Development
Ministry (http://maranet.mara.gov.my/Am/sejarah_mara_dari_rida_ke_mara.htm). It is currently
placed under the Entrepreneur and Co-operation Development Ministry. MARA core business is
to aid, train, and guide Bumiputera (Malays and other indigenous Malaysians) in the areas of
business and industry. In order to implement the policy, MARA is indirectly involves in
construction industry. Many buildings were built by MARA such as MRSM, IKM, KKTM,
KPM, KM, UNIKL, shop lots [Arked MARA] and a lot more. MARA construction projects were
usually implemented in two approaches, the traditional approach for small projects and the
management-base approach for large and complex project. For maintenance construction work,
MARA adopts in-house approach especially for light and easy works. For 9th Malaysian plan,
MARA starts adopting an integrated approach (design and build) for its construction projects.

2.0 Construction delay

Construction delays are delays in progress compared to the baseline construction schedule
(Wikipedia encyclopedia), an event or a condition that results in work activity starting, or project
completion, later than originally planned or an interruption or a hindrance to a planned program
(Saleh Mubarak (2005)), the time overrun either beyond completion date specified in a contract,

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or beyond the date that the parties agreed upon for delivery of a project ( Sadi A. Assaf and Sadiq
Al-Hejji (2006)) and an act or event that extends the time required to perform the tasks under a
contract( Stumpf (2000))
Time is the main factor for the delay. When the actual duration of the construction project is
longer than planned schedule, a delay is inevitable.

2.1 Types of construction delay

Delay claims pertaining to schedule are usually the results of three types of delays that are
excusable delays [compensable and non compensable delays] where contractor is entitle to
additional time to complete the work due to reasons beyond the contractor’s control, non
excusable delays where contractors do not entitle for any compensation since this delays are due
to their negligence and concurrent delays where contractors entitle only part of the compensation
because the delay involves the combination of two or more excusable delay and non excusable
delay.( Bramble and Callahan (2000))

2.2 Cause of Construction delay.

Extensive research works on construction delay had been carried-out in the past. The researchers
identified the root causes of the delay. Table 1.0 in the appendix summarized the major causes
of the delay that had been identified in the past. The numbers of main cause of construction
delays are varies according to the countries. Some researchers listed up to ten main causes of
delay and some researchers consider only three. The different in main causes of delay may be due
to several factors such as the policy of the country, the economical aspect of the country or the
region of the countries. But many countries also shared common cause of delay although they are
not in the same region such as Saudi Arabia, Jordan, Ghana and Malaysia where cash flow and
financial difficulties to carry out with the project is one of the most significant causes of delays.
While in Thailand, Saudi Arabia and Malaysia consider that shortage of site workers is another
main cause of delay. But ineffective planning and scheduling by contractors is another important
cause of delay in Saudi Arabia, Malaysia and Jordan. Some of the major delays are unique where
it is applicable to a particular project or country only.

In Table 2.0 in the appendix, the frequencies of the causes were identified. From Table 2.0, the
delay causes are ranked based on the frequency identified from the past works. Table 3.0
indicates that the highest rank frequent major causes of delay are frequent changes by owners and
inadequate client’s finance and payments for completed work where five out of ten research
works specify this finding. The second ranks of causes are shortage of site workers, ineffective
planning and scheduling by contractors and contractor’s poor site management. The third ranks
are cash flow and financial difficulties faced by contractors, unforeseen ground condition and low
speed of decision making .The fourth ranks are shortages of construction materials and
inadequate contractor experience and the last rank are the unique cause of delay where the cause
is for that particular project only.

3.0 EFFECTS OF CONSTRUCTION DELAY

Not many researchers identify the effect of the delay, this is because the effect can be varied from
the function of the project and the money involved due to the delay. Table 4.0 summarized the
findings from the past researchers regarding the effect of the delay and its frequency. The
Malaysian researchers identified the effects of the delay are time overrun, cost overrun, dispute,
arbitration, litigation and total abandonment of the project.

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The most frequent effects of construction delay are time overrun followed by cost overrun.
Disputes, arbitration, litigation and total abandonment are the least frequent effects of
construction delay. Countries such as Hong Kong, Ghana, Vietnam, Malaysia and Nigeria shared
the common main effects of construction delay, i.e time overrun.

Table 4.0: The frequency of effect of delay

Kumaraswamy (1997) - Hong

A.A Aibinu, G.O. Jagboro (2002) -

Y. Frimpong et al. (2003)- Ghana

N.D Long et al (2004)- Vietnam

M. Sambasivan, Y.W. Soon

D W M Chan and M M

(2007)- Malaysia

frequency
Nigeria
Kong

Main effect
● Time overrun. √ √ √ √ √ 5
● Cost overrun. √ √ √ 3
● Disputes √ 1
● Arbitration √ 1
● Litigation √ 1
● Total abandonment √ 1

4.0 MARA construction project.

MARA has its own guidelines in implementing the construction project. Process and procedures
are part of the guidelines set by MARA. This guideline is inline with the federal government
guideline and its implementation is mandatory. For large project, the construction parties that
directly involve are owner [MARA], PMC, surveyor, architect, civil and structure engineer,
mechanical and electrical engineer and contractors.

4.1 MARA construction project process

There are thirty three steps in MARA construction process as set by MARA. These steps are
grouped into four phases; Acquisition and Site approval, Pre-construction, Construction and
Acquisition and Completed Project. The steps in the phases are as in table 5.0.

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Table 5.0: MARA Construction Project Process
Phase Steps
Acquisition Site identification, MARA management approval, land acquisition, EXCO
and site approval, land evaluation, land negotiation, MARA Council approval,
approval land payment and site control.
Appointment of surveyor and consultant, plan measurement, site visit,
architect concept plan, initial estimation cost, JKBPM working paper,
Pre- JKBPM approval, EPU 1 and EPU 2 approval, Civil and Structure plan
constructio preparation, Mechanical and electrical plan preparation, local council
n Plan approval, tender document preparation, EPU 3 approval, project
advertising, tendering process, tender analysis, LPM and MARA council
approval, price negotiation, MOF approval, contractor appointment.
Constructio
n and Work progress and equipment acquired.
acquisition.
Completed Certificate of Practical Completion (CPC) and Certificate of Fitness for
Project. Occupancy (CFO) approval.

4.2 MARA construction progress

Currently, there are seventy two construction projects are in progress. These projects are divided
into four types of construction organization. Thirty projects are adopting traditional approach,
thirty four projects are adopting management-based approach and another eight projects are
adopting the integrated services [design and build]. Table 6.0 summarized the status of MARA
construction project as of 30th June 2008.Most of MARA centers are using the services of
technicians appointed by MARA to do in house maintenance. The type of construction
organization adopted is depending on the size and complexity of the project. Usually for large
construction project [Five million ringgit and above], project management consultant is preferred
and for the smaller construction project [less than five million ringgit], traditional approach is
preferred.

Table 6.0: Current MARA construction project as of 30th June 2008.

Types of construction No of No of %
Projectorganization
Management projects
34 projects
31 delay
91
Traditional 30 25 83
Integrated [Design and 8 1 13
build]
In-house All MARA No record No
Source : UBS centers record

4.3 MARA construction delay.

The frequent MARA construction delay has been a phenomenon. More than 90% of its large
construction project is experiencing delay while 83% of the smaller projects shared the same
experience as shown in Table 6.0. For 9th Malaysia Plan project, MARA started adopting the
integrated services in its project and its performance is yet to be seen. The delay in small project
is 53% compared to 24% in the 1-100 days bracket but 17% compared to 41% in the more than

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300 days bracket. Table 7.0 shows the comparison of ‘Traditional vs Project Management [PM]’
of MARA construction project. It also shows that the majority of small projects experience delay
less that 100 days while the majority of the large projects experienced delay more than 300 days.
Many of delay projects are granted extension of time [EOT] due to excusable delay. Out of 31
large project delay, 77% is granted EOT while out of twenty five small project delays, 36% is
approved EOT. Table 8.0 compare the approved EOT ‘Traditional vs PM ’ of MARA
construction project.

Table 7.0 : Comparison of ‘Traditional vs PM’ of Current MARA construction project as of 30th
June 2008
Types of No of % Delay % Delay % Delay % Delay
construction project [ 1 – 100 [ 101-200 [201-300 [301 and
organization s days] days] days] above]
Traditional 30 53 10 3 17
Project 34 24 6 21 41
Management
Source : UBS

Table 8.0: Comparison of approved EOT ‘Traditional vs PM ’ of Current MARA construction

project as of 30th June 2008
No of
Types of construction No of projects
projects %
organization approved of EOT
delay
Traditional 25 9 36
Project Management 31 24 77
Source : UBS

5.0 Discussion and recommendation

The delay of MARA construction project is very severe especially the large construction project.
More than 90% of the large project suffered delay since 1981. The smaller projects performs
better that the larger one due to smaller size and less complexity. The delay in small project is
53% compared to 24% in the 1-100 days bracket while 41% of large projects suffered delay more
than 300 days while only 17% experienced by small projects. This is another proof that the
majority of small project suffer delay less that 100 days while the majority of bigger projects
experience delay more than 300 days. More attention should be given to large projects especially
during the construction phase in order to reduce delay. Focus should be directed to the non
excusable delay factors where it can be solved internally by proper planning. 77% of delayed
large projects and 36% of the delayed small projects were granted EOT which shows that MARA
is partly shoulder the responsible of the delay. Many steps have been taken by MARA such as
‘notice to accelerate work progresses, and ‘flying squad’ to speed up the construction but yet it
still does not achieve the desired results. It is still premature to conclude the actual responsible
parties for the delay.

A proper study should be carried out to identify the main cause/causes of delay and its
responsible parties. Once the cause/causes and the responsible parties are identified, steps can be
taken to overcome the problems. With the result of the study, the construction parties can plan
and forecast the incoming issue and its solution.

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 REFERENCES

1. Saleh Mubarak, Construction Project Scheduling and Control, Pearson Prentice Hall, 2005
2. Stumpf G. Schedule delay analysis. Cost Eng J 2000;42[7]: 32-43
3. Sadi A. Assaf, Sadiq Al-Hejji.Causes of delay in large construction projects. International
Journal of Project Management 24[2006] 349-357
4. Sweis G et al., Delays in construction projects: The case of Jordan, International Journal of
Project Management xxx [2007]xxx-xxx.
5. M. Sambasivan, Y.W. Soon, Causes and effects of delays in Malaysian construction industry,
International Journal of project management 25[2007] 517-526
6. http://maranet.mara.gov.my/Am/sejarah_mara_dari_rida_ke_mara.htm
7. http://en.wikipedia.org/wiki/Construction_delay
8. M. Al-Khalil and M. Al-Ghafly, Important causes of delay in public utility projects in Saudi
Arabia, Constr Manage Econ 17 (5) (1999), pp. 647–655.
9. A.M. Odeh and H.T. Battaineh, Causes of construction delay: traditional contracts, Int J
Project Manage 20 (1) (2002), pp. 67–73.
10. CIDB, Construction Industry Master Plan 2006-2015, 2007
11. CIDB construction quarterly statisticalBulletin; Second quarter 2007
12. CIDB news, issue 3/2007
13. Nunally s.w., Construction Methods and Management. 6th Edition, Prentice Hall, 2004
14. Bramble, B.B., and M.T Callahan,
Construction delay claims, 3rd Edition, 1.01A,B,D. New York: Aspen(2000)
15. S.O Ogunlana et al, Construction delays in a fast-growing economy:comparing Thailand with
other economies, International Journal of project management 14[1996] 37-45
16. D W M Chan and M M Kumaraswamy , A comparative study of causes of time overruns in
Hong Kong construction project, International Journal of project management 15[1997] 55-63
17. Y. Frimpong et al. (2003), Causes of delay and cost overruns in construction of groundwater
projects in a developing countries; Ghana as a case study, International Journal of project
management 21[2003] 321-326
18. N.D Long et al, The delay of large construction projects in developing countries : a case
study from Vietnam, , International Journal of project management 22[2004] 553-561
19. N.K Fong et al, Fire services installation related contributors of construction delays, Building
and Environment 41(2006) 211-222
20. A.A Aibinu, G.O. Jagboro, The effects of construction delays on project delivery in Nigerian
construction industry, International Journal of project management 20[2002] 593-599
21. MARA construction progress report, 30th June 2008.

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 Appendix
Table 1.0: Summary of research works findings on construction delay causes

No Chronolog Findings
Project - Country
. y Main Delay Causes
Construction delay of high-rise
S.O ▪ Shortages of construction materials.
building construction project in
1 Ogunlana et ▪Shortage of site workers
Bangkok,
al (1996) ▪Frequent changes by owners.
Thailand
▪Poor site management
D W M Chan
Causes of time overrun in ▪Unforeseen ground condition
and M M
2 construction projects in Hong ▪Low speed of decision making
Kumaraswa
Kong ▪Client-initiated variation
my (1997)
▪Necessary variations of works
▪Cash flow and financial difficulties
▪Difficulties in getting work permit
▪Practice of assigning contract to lowest bidder
M.I. Al- Khalil
▪Underestimate project duration
and M. Al- Delay in public utility projects
3 ▪Effect of sub-surface condition
Ghafly(1999) in Saudi Arabia
▪Changes in scope of projects
▪Ineffective planning and scheduling by
contractors
▪Shortage of manpower
A.M. Odeh, ▪Inadequate contractor experience.
Causes of construction delay :
H.T. ▪Owner interference
traditional contracts of large
4 Battaineh ▪Finance and payments of completed work
construction industry in
(2001) ▪Slow decision making by owners
Jordan
▪Labor productivity
▪Monthly payment difficulties.
Y. Frimpong Causes of delay and cost ▪Poor contractor management.
5 et al. (2003) overruns in construction of ▪Material procurement
groundwater projects in Ghana ▪Poor technical performances
▪Escalation of material prices
▪Incompetent designers and contractors.
N.D Long et ▪Poor estimation and change management.
The delay of large construction
6 al (2004) ▪Social and technological issues.
project in Vietnam
▪Site related issues.
▪Improper techniques and tools.
▪Change order
▪Delay in progress payment
Sadi A. Assaf ▪Ineffective planning and scheduling of project
Causes of delay in large
and Sadiq Al- by contractor
7 construction projects in Saudi
Hejji(2006) ▪Poor site management and supervision by
Arabia
contractor
▪Shortage of labors
▪Difficulties in financing project by contractor
Fire services installation ▪Improper site co-ordination and management
N.K Fong et related contributors of of the electrical and mechanical installation.
8 al (2006) construction delays in Hong ▪Lack of timely decision making of the client
Kong building construction ▪Defects identified during the fire services
work inspection
9 M. Causes and effects of delays in ▪Contractor’s improper planning.
Sambasivan, Malaysian construction ▪Contractor’s poor site management.
Y.W. Soon industry. ▪Inadequate contractor experience
(2007) ▪Inadequate client’s finance and payments for
completed work
▪Problems with subcontractors
▪Shortage in materials
▪Labor supply
▪Equipment availability and failure

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 ▪Lack of communication between parties
▪Mistakes during the construction stage
▪Financial difficulties faced by contractor
▪Too many change orders by owner
G. Sweis et Delays in construction
10 ▪Poor planning and scheduling of the project
al(2007) projects: The case of Jordan
by contractor.

Table 2.0: The frequency of main causes of construction delay

KongD W M Chan and M M Kumaraswamy (1997) - Hong

M.I. Al- Khalil and M. Al-Ghafly(1999) - Saudi Arabia

Sadi A. Assaf and Sadiq Al-Hejji(2004)-Saudi Arabia

M. Sambasivan, Y.W. Soon (2007)- Malaysia

A.M. Odeh, H.T. Battaineh (2001) - Jordan
S.O Ogunlana et al (1996) - Thailand

N.K Fong et al (2006)-Hong Kong

Y. Frimpong et al. (2003)- Ghana

N.D Long et al (2004)- Vietnam

G. Sweis et al(2007)-Jordan

Frequency
Main cause of delay
Shortages of construction materials. √ √ 2
Shortage of site workers √ √ √ √ 4
Frequent changes by owners. √ √ √ √ √ 5
Unforeseen ground condition √ √ √ 3
Low speed of decision making √ √ √ 3
Inadequate client’s finance and payments for
completed work √ √ √ √ √ 5
Necessary variations of works √ 1
Cash flow and financial difficulties faced by
contractors √ √ √ 3
Difficulties in getting work permit √ 1
Practice of assigning contract to lowest bidder √ 1
Underestimate project duration √ 1
Changes in scope of projects √ 1
Ineffective planning and scheduling by contractors √ √ √ √ 4
Inadequate contractor experience. √ √ 2
Owner interference √ 1
Labour productivity √ 1
Material procurement √ 1
Poor technical performances √ 1
Escalation of material prices √ 1
Incompetent designers and contractors. √ 1
Poor estimation and change management. √ 1
Social and technological issues. √ 1
Improper techniques and tools. √ 1
Improper site co-ordination and management of
the electrical and mechanical installation. √ 1
defects identified during the fire services
inspection √ 1

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Contractor’s poor site management. √ √ √ √ 4
Problems with subcontractors √ 1
Equipment availability and failure √ 1
Lack of communication between parties √ 1
Mistakes during the construction stage √ 1

Table 3.0: The Rank of frequency of major cause of construction delay

Nos Major Cause of Construction delay Rank
1 Inadequate client’s finance and payments for completed work 1
2 Frequent changes by owners. 1
3 Shortage of site workers 2
4 Ineffective planning and scheduling by contractors 2
5 Contractor’s poor site management 2
6 Unforeseen ground condition 3
7 Low speed of decision making 3
8 Cash flow and financial difficulties faced by contractors. 3
9 Shortages of construction materials.. 4
10 Inadequate contractor experience 4
11 Necessary variations of works 5
12 Difficulties in getting work permit 5
13 Practice of assigning contract to lowest bidder 5
14 Underestimate project duration 5
15 Changes in scope of projects 5
16 Owner interference 5
17 Labour productivity 5
18 Material procurement 5
19 Poor technical performances 5
20 Escalation of material prices 5
21 Incompetent designers and contractors. 5
22 Poor estimation and change management. 5
23 Social and technological issues. 5
24 Improper techniques and tools. 5
Improper site co-ordination and management of the electrical and
25 5
mechanical installation.
26 defects identified during the fire services inspection 5
27 Problems with subcontractors 5
28 Equipment availability and failure 5
29 Lack of communication between parties 5
30 Mistakes during the construction stage 5

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