Hindrances in Successful Completion of Construction Projects and Their Impact on Firm's Performance

2323 Words Aug 1st, 2010 10 Pages
Research over many years in the field of project management has identified several hindrances in the smooth execution of operation a construction project. But here it is more important to find out some common obstacles from the early literature and measure their impact on performance scientifically. Traditionally construction industry is segmented, and this segmentation is depends upon the nature of construction that is to be carried out, and this segmentation widely consider as residential housing construction, institutional and commercial building construction, specialized industrial construction, infrastructure and heavy construction, to see this, Hendrickson’s (2000, ch.1). Hindrances could also depend upon the
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Sadi A. Assaf, and Sadiq Al-Hejji (2006) a study was conducted in Saudi Arabia on subject of “Causes of Delays in Large Construction Projects” field survey of 23 contractors, 19 consultant, and 15 owners resulted that seventy three causes identified of delaying project in which 76% are related to contractors, 56% of the consultants and average time of overrun is between 10% to 30% to the original duration.
Stephen Joseph Lampel, (2001) argued that successful project is depend upon flexible engineering, construction and procurement firms and the management of flexibility based on acquisition and development of core competencies. These four core competencies are entrepreneurial, technical, evaluative and relational. Contractors face hurdles of payments delays / stuck from the client organizations and it directly affects contractor’s performance i.e. delays of project completion. Coordination among client, consultant, structural & electrical engineering and HVAC departments is vital for stream execution of the construction project. Client is final authority to place change orders and needed to coordinate with all stake holders of the project and absence, may cause delay. Torger Reve, and Raymond E Levitt (1984) observed
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