Outcomes of construction project delays:
Extended Construction Schedule – the contractor will continue to be on site longer than allowed; resulting in extra expenditures for construction site facilities, management, other staff salaries, expansion of construction sureties, insurances and bonds, equipment cost.
Unproductivity – the ineffective and useless use of staff and machines can not be used at all while they may be waiting for accessibility or info or may have very limited entry to some work areas.
Increased Cost of Materials -material costs escalating in the interval.
More Storage Cost and Risk of Damage – construction materials that have been purchased needing to be stored because the site is not all set to make use of them, This may result in storage costs as well as double handling, and the associated hazards of destruction as well as theft issues.
Cash Flow Disruption – considering that the project’s end date is prolonged, there could be the postponement of the release of retention monies and securities.
Delay Cost Claim
Sub-contractors are overdue ending all of them declaring delay costs.
Besides, staff and equipment cannot go on to the following worthwhile building project, meaning the organization most likely loses potential earnings, or that project begins late or is under-resourced leading to issues on the task.
Several costs are hard to illustrate and verify to the client. Usually, customers don’t realize the implications of their activities. As a result, construction companies should do anything they could to guarantee the customer delivers accessibility and details in compliance with the building plan prerequisites, so the project is not postponed.
On top of that, delays can be aggravating and demotivating to supervisors and staff who in most cases want to get the work completed as quickly as possible. What happens usually is that, for construction projects being delayed at the start, this can result in workers standing bored. When the construction works resume, workers become unmotivated and become less-productive.
There are also some cases where the contractor is accountable for the delays. They not just then deal with paying client enforced damages or even penalties, but they also incur all of their own costs related with the hold off along with damage to their track record.