Project Delays Caused by the Owner: Evaluation of Causal Factors and Contractor Claims

Abstract

Delays in construction projects are generally understood to be the sole responsibility of the contractor. In fact, these delays can also be caused by factors that actually are the responsibility of the owner, resulting in project completion exceeding the contract target date. As a result, the contractors can be affected and suffer losses due to delays that are not actually their responsibility. This study intends to evaluate project delays caused by the owner and the delay claims submitted by the contractor. This research is exploratory and uses a mixed method of quantitative and qualitative approach. Data was collected through interviews and questionnaires with 80 respondents of the construction industry. The study found five main factors causing delays caused by the owner, including: land acquisition problems, changes in design and work instructions, payment problems, and unclear drawings in the contract documents. Of these delays, the majority (93%) were claimed by contractors, with an average claim success rate of 53%, and the compensation generally in the form of extension of project completion time (63%). The most frequently chosen claim dispute settlement method (93%) is non-litigation settlement through negotiation. This research has provided a comprehensive overview of delays due to owners and the contractor claims, and gives valuable lessons for the construction industry stakeholders to cope with delays in the future.