Resource Optimization in Mivan Construction Project
SRA_Vinit1
1. Presentation
on
Assessment of Schedule Risk in Construction Projects
Visvesvaraya National Institute of Technology, Nagpur
Department of Civil Engineering
(Construction Technology & Management)
By
Vinit B. Sharma
(MT13CTM011)
Under the guidance of
Dr. Ajay R. Tembhurkar
Head of Department
Civil Engineering Department
Visvesvaraya National Institute of Technology
2. Introduction
Construction Industry involves wide range of different activities,
having huge investment.
Enormous capital is invested into the construction sector every
Year. In India that is 6% of total GDP, that’s 19 Billion $ every year.
According to the survey by KMPG international, 77% of the construction Projects are
“Underperforming”.
81% of the survey’s respondents said the main reason for underperformance is
“Inefficient Risk Management”
3. Figure 1.1 Main causes of underperforming projects
51% of the Projects are
Underperforming because
of
“Project Delays”
7. To Manage the schedule risk in construction activities,
we need to assess…
The Events which are causing delays.
Subsequently, the factors responsible for these delay
causing events.
The extent of the impact of these factors on
construction schedule.
The relationship between the factors, which are
responsible for the delay.
8. Objectives and Scope of the Work
1. Identification of major activities during construction & its associated risk.
2. Extracting their influencing factors for schedule risk and developing their
interrelationship diagram based on relevant literature, opinion of experts.
3. Designing of a survey questionnaire to collect opinion regarding the role &
significance of the most influencing factors for scheduling risk.
4. Conduct of field survey to collect opinions from expert & different stakeholders
in construction industry.
9. 5. Analysis of survey data to determine different weightages showing significance
of various influencing factors.
6. Developing standard utility curves for various influencing factors.
7. Developing of soft tool with the help of standard utility curves.
8. Development of the standard scale of scheduling risk to determine the level of
scheduling risk for any new construction process to be evaluated.
9. Application of the model on real-life building to be constructed.
Objectives and Scope of the Work
10. Literature Review
1. P. Rezakhani (2012),
“Classifying Key Risk Factors in Construction,” Bulletin Polytechnic Institute, Technical University
"Gheorghe Asachi", 62(2), 27–38.
The paper talks about the risk factors at various construction levels, viz. Management,
procurement etc.
2. Nasir, McCabe, & Hartono, 2003
“Evaluating Risk in Construction - Schedule Model (ERIC–S): Construction Schedule Risk Model,”
Journal of Construction Engineering Management, 129(5), 518–527
This paper identifies the sources of schedule risk in construction project. Viz. from
Environmental factors to political factors influencing the schedule.
14. 1. Identification of Factors
1. Total 66 Factors were identified after Literature Review, Project competition
reports, Past project Statistics. ( Table 3.1 )
1. Financial / Cash flow difficulties
2.
Financial difficulties faced by contractors
and public agencies
3. Frequent change order/ design
4. Failure to pay for completed works
5. Shortages of resources
6. Considerable additional work
7. Escalations of material prices
8. Increases in the scope of work
9. Delay in design work
10. Late delivery of materials
11. Fluctuations in resources cost
12. Improper financial and payment arrangement
13. Organizational deficiencies
14. Poor contract management
15. Client initiated variations
16. Resources management problems
17. Planning and Scheduling Problem
18. Slow decision making by project team
19. Inadequate contractor's experience
20. Poor site management and supervision
15. 1. Identification of Factors
21. Inaccurate cost estimates
22. Lack of communication
23. Build ability of design
24.
Slow preparation and approval of shop
drawings
25. Inclement weather
26. Inaccurate site inspection
27. Unforeseen site conditions
28. "Lowest bid wins" system
29. Labour disputes and strikes
30. Poor technical performance /workmanship
31. Subcontracting systems
32. Liaisons problems among contracting parties
33. Restricted access
34. Extension of time on the project
35.
Cost overruns due to inflation and
fluctuations
36.
Accumulations of interest rate on the capital
to finance the project
37.
Wastage and under-utilization of man-power
resources
38.
Claims on the disturbance of regular progress
of work by the main contractor
39.
Under-utilization of equipment and plant
purchased for the project
40. Loss of confidence on the contract
16. 1. Identification of Factors
41. Late returns of income (Private developers)
42. Dispute between the parties involved.
43.
Aids the decrease in the tempo of economic
activities in the nation
44. Extra taxes and dues due to delay
45. Insolvency of the contractor
46. Arbitration/ Litigation
47. Poor site management
48.
Ineffective planning and scheduling of project
by contractor
49. Shortage of labours
50. Lack of materials on market
51. Lack of communication between the parties
52. Lack of consultant’s experience
53. Inaccurate estimates
54. Bad weather
55. Mistakes during construction
56.
Improper construction method by
subcontractors
57.
Delay in progress payments by client Low
productivity level of Labours Problems with
subcontractors Equipment unavailability
58.
Problem with neighbours and site
condition
59. Poor contract management by consultant
60. Obstacles from government
17. 1. Identification of Factors
61. Slowness in decision making process by client
62. Mistakes and discrepancies in design documents
63.
Late in reviewing and approving design
documents by consultant
64. Delays in producing design documents
65.
Late in reviewing and approving design
documents by client
66. Inadequate contractor experience
18. 1. Identification of Factors
Out of these 66 Factors identified, 20 Factors were selected. The selection was based on
Literature rewire as well as inputs from industry stake holders.
1. Availability of Materials
2. Material Price Escalation
3. Delivery of materials
4. Client Contractor Relationship
5. Contractor| Supplier Relationship
6. Labour Disputes
7. Type of Labour
8. Unscheduled Additional Work
9. Financial & Payment Method
10. Estimates
11. Storage facilities/ inventory
12. Import of Materials
13. Equipment Availability
14. Client Side Delay
15. Technical Staff Onsite
16. Contractor Experience
17. Site Conditions/ Environment
18. Weather Conditions
19. Government Approvals
20. Public / Local Body Support
19.
20. 2. Impact Estimation
For finding the extent of impact a specific factor can have on the schedule, we went for
expert survey technique.
21. 2. Impact Estimation
1 Years to 5
Years
5 Years to 10
Years
10 Years to 15
Years
15 Years to 20
Years
20 Years &
above
Industry Experience of Surveyed Experts
Figure 4. 1 Experience Distribution of surveyed Experts
44. 4. Standard Chart
Type of risk Range of risk values
Extreme - 18.5 to - 45.95
Severe - 5.5 to - 18.5
High + 3.21 to - 5.5
Moderate + 3.21 to + 16.5
Low + 16.5 to + 40.5
Figure 4. 4 Assessment of Schedule Risk
45. 4. Summary and Conclusion
In the present study among the 66 factors identified the most relevant factor
were segregated and grouped with various aspects of construction activities to
determine schedule risk.
The algorithm is developed and utility curve was used in developing a new soft
tool to determine the scheduling risk.
It is found that the soft-tool provides a reasonable better results to arrive at a
decision of considering it for the level of severity.
In conclusion it can be said that the tool can be useful for all the planner and
decision makes in the field of construction industry.
