Factors Affecting Performance and Time Extension of ongoing Construction Projects under Town Development Fund, Nepal

Abstract

Problems related to performances of the construction projects appear through different directions. Most of the projects fail either in time performance or in cost performance or both. So, the factors assessment in contemporary condition is most. This research was designed to conduct study of ten numbers of underconstruction projects funded by German government-owned development bank, KfW (Kreditanstalt fur Wiederaufbau) via TDF. Questionnaire surveys were conducted and examination of records from concerned representatives of the client, consultants and contractors within the research area has been carried out. The factors affecting the overall project performance were ranked using ‘five-point’ scale ranged from 1 (not important) to 5 (extremely important) and transformed to Relative Importance Index (RII). All projects under study have been granted extension of time based on the Public Procurement Act (PPA) 2063 and Public Procurement Regulation (PPR) 2064.This study shows material related factors as the most important factors among 8 numbers of groups for time overrun in projects. The potential effect of the time overrun in project is cost overrun followed by arbitration, Litigation, Dispute arousal and Total abandonment. The major factors that affect the performance of the project according to the ranking based on RII value for the perceived view of the client, consultants and the contractors on factors affecting the performance are Design related issues, shortage of materials, Quality related issues, slow decision making, construction methodology, labour supply, payment related issues, site management ,discrepancies in contract documents, flaws in organisational structure, interfaces, productivity, change orders, unforeseen site condition, weather conditions and regulatory changes that affect the overall project performance. The major factors identified needs to be addressed to minimize the project time overrun and hence its effects on the Project.