Why do large scale construction projects overrun and go over budget in the UK?



Why do large scale construction projects overrun and go over budget in the UK?

In the general sense, delay in construction is recognized as the most commonly occurring, complex, costly and risky problem that is faced in construction projects. This is due to the predominate significance of time that is consumed during construction, for both the proprietor of the project and the contractor(Eden, 2009). The proprietor expects timely delivery of the project and good performance, whereas the contractor expects timely payment of money.

When construction projects are delayed, they result in frequent conflicts and claims which ultimately lead to court cases(Kangari, 2009). Delay occurs in every construction project of the world, and the enormity of these delays diverges from project to project. Some of the projects are delayed only for a few days behind their planned date, whereas some of the projects take over a year or more for completion. Therefore, there was a necessity to conduct research into the root causes of delay, so that the loss, which occurs as a result of delay, is minimized(Bubshait, 2008).

In UK, there have been numerous construction projects which have been delayed. The causes for delays in construction projects in UK can be due to various factors, which can include financial, managerial and technical causes (Scott, 2010). These factors can be separated into causes, which involve contractors, owners or consultants. Currently, the UK government has promulgated laws according to which any contractor, under whose supervision a project is delayed, is subjected to punishment by law(Finke, 2009). In such cases, the contractor needs to request for a time extension if the delay was not deliberate or could not be avoided. If the supervisors still find that the contractor is responsible for the delay, the requested permission is not given. If a delay took place without a time extension being requested, the contractor is deemed responsible and is subjected to fines in accordance with the project's deal (Harris, 2010).

The climate in UK creates a test for transnational developers who have not worked on big developments in hot countries, previously. These challenges begin with the fact that, in the building industry, the majority of labor is carried out out-of-door, without air conditioning, unlike most other lines of work. The people taking part in these developments would suffer from the extreme temperatures causing their productivity to drop, raising labor costs and slowing down construction(Eden, 2009).

Moreover, the tools usually utilized might not work in UK as the high-ambient temperature might cause them to overheat and break down. These breakdowns would lead to further delays(Kangari, 2009). This is predominantly the case for construction projects where the activities take place out-of-door. Furthermore, the building personnel, hired for their skills and expertise are often foreigners and are often not prepared to work in extreme climatic conditions. The delay in construction projects is not unique to UK, as delays are reported in most countries and the problem exists at ...