Factors Affecting Time Overrun in Construction Projects in Bhutan

Abstract

The construction industry has a significant influence on the economy of a country as it plays a vital role in its development. However, construction projects in countries usually faced time and cost overrun, affecting the economic development and overall performance of the contractors. As infrastructure development is one of the key activities in developing countries, it is very important to analyze the factors contributing to time overrun to enable effective contract management. Time overruns are always associated with cost overrun often putting burden to country’s capital resources. Although time overruns have been recurring issues in construction industry, very little or no researches have been carried out in Bhutan so far. This paper presents a case study of time overrun of construction projects in Bhutan. The study was carried out through an online questionnaire consisting of thirty-one factors which are further sub-divided into seven categories. The one hundred twenty responses were analyzed using relative importance index which shows that inexperienced and financial instability of the contractor, incompetence of human resources, shortage and inefficient equipment, lack of construction materials are significant factors affecting time overrun. Issues related to sub-contracting, unrealistic calculation of the project duration, delay in the mobilization of machines are minor factors of time over-run of the construction projects in Bhutan. Keywords: Time overrun, principle factors, factor analysis, adversity, average index.s DOI: 10.7176/JEP/11-29-01 Publication date: October 31 st 2020