Time and budget overrun in the construction of town houses in Dubai U.A.E

Abstract

A construction contract normally have the duration for projects start date and finish date provided by the Client to the Contractor to finish the work. If the contractor is unable to finish the work within a specified finish date, then the Client has the right under a construction contract to impose liquidated damages (LDs) to the Contractor in breach for delay. On the other hand, if a delay occurs that is not within the Contractor’s control the Contractor is entitled to the extension of time (EOT) to avoid liquidating damages. The main objectives of this study are to study the types of problems faced by the Client in the construction of the Town House project, to evaluate the Nominated Sub-Contractor related problems that caused the time and budget overrun of the project, to investigate the variation orders related problems that caused the time and budget overrun of the project and to identify the material supplies related problems in the construction of the project. The methodology of this study includes literature reviews, data collection and data analysis. Data is collected from a case study and by questionnaire in Dubai, United Arab Emirates. The data is analyzed using the average index. From the study, the types of problems faced by the Client are project delay, variation orders and Nominated Sub-contractors’ performance. The problems related to Nominated Subcontractor are inadequate machinery to execute work and unable to follow planned schedule as set by the contractor. Whereas, the variation orders related problems are Client’s changes in scope of work and unclear drawings detail. The problems related to material supplies are delay in approval of materials and by client’s late supply of materials.