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The effects of capital projects delays on project budget and quality: company in Richards Bay.

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I NTRODUCTION

R ESEARCH C ONTEXT : B ACKGROUND

This study identified capital project delays at CCP, assessed the factors that caused delays, and investigated the effects of delays on budget and project quality. This study thus evaluated the factors causing capital project delays and investigated the effects of project delays on project budget and quality at CCP.

P ROBLEM S TATEMENT

CODs allocate all projects to be carried out by the CCP; however Aibinu and Jogboro (2002) confirmed that seven out of ten projects surveyed are delayed when it comes to project execution.

A IM OF THE S TUDY

Research Questions

Research Objectives

S IGNIFICANCE OF THE S TUDY

The outcome of this study should be that the project management team at CCP will be aware of the extent to which project delays can have an impact on their project delivery, it should direct efforts to improve project performance, and should enable the avoidance or minimization of project delays. at CCP. The outcome of the study can be used by projects in any organization, and can also be used as a reference for future studies.

R ESEARCH M ETHODOLOGY

Questionnaires were administered to the project director, chief project manager, project managers, project planners, project quantity surveyors, project cost engineers, project contract administrators, project accountant and project quality officer. SPSS (Statistical Package for the Social Scientists) version 24.0, a data management and statistical analysis tool that has a very versatile data processing capability, was used in this study to effectively read the output obtained and give accurate interpretations.

S COPE OF THE S TUDY

S TRUCTURE OF D ISSERTATION

The research design, target group, sampling techniques, research process, data collection methods, data analysis and ethical considerations are also discussed. Chapter five presented the results of both the literature review and the data generated from the questionnaires.

C ONCLUSION

It further discussed the results from the analysis of the primary data collected, compared with the data from the literature reviewed.

CHAPTER TWO: THEORETICAL FRAMEWORK

  • I NTRODUCTION
  • T HEORETICAL F RAMEWORK
    • A Brief Understanding of Construction
    • Project Lifecycles Process
    • Risk Management
    • Uncertainty
    • Complexity
  • C OMPANY ’ S L INK BETWEEN P ORTFOLIOS , P ROGRAMMES & P ROJECTS
    • Company’s Project Lifecycle Process
    • Company’s Programme Lifecycle
    • Interaction between the Programme Lifecycle and the PLP
  • C ONCLUSION

They further relate to uncertainty complexity and add structural complexity, which relates to the underlying structure of the project. Projects vary in nature and size, PLP should be used according to the nature of the project and appropriate to the type of project.

Figure 2.1: Risk Management Process
Figure 2.1: Risk Management Process

CHAPTER THREE: LITERATURE REVIEW

I NTRODUCTION

  • W HAT IS A P ROJECT
  • W HAT IS A C APITAL P ROJECT
  • B ENEFITS OF C APITAL P ROJECT
  • P ROJECT S UCCESS

Serrador and Pinto (2015) indicated that project success is the relationship between the experience level of the project team. Project management success is an internal measure of project effectiveness, while project success is about a project's external effectiveness.

U NDERSTANDING THE C APITAL P ROJECT AT C OMPANY C APITAL P ROJECT (CCP)

  • C APITAL P ROJECT D ELAYS

For example, identified delayed payments, price increases and labor shortages; lack of potable water, lack of educational facilities, lack of health care facilities and lack of quality control facilities, lack of suitable materials, finance (money), plant and equipment which may lead to project not being delivered successfully. It was also observed that the construction industry performance in terms of time was poor in Nigeria.

I DENTIFYING WHICH F ACTORS C AUSE C APITAL P ROJECT D ELAYS AT CCP

  • D IFFERENT F ACTORS C AUSES C APITAL P ROJECT D ELAYS

There are two types of delay factors in construction projects, internal factors and external factors. Aibinu and Jagboro (2002) also confirmed that significant factors causing delays even in the early 2000s were delays in contractual payment for work performed, lack of management by the service provider, unavailability of materials at the construction site, constantly changing conditions at the construction site, poor contractor communication and coordination. -responsibility delays, constantly changing scope and specifications, very slow decision-making, budget constraints, poor procurement management processes, coordination problems, planning problems, insufficient site inspections, lack of experience, contractor liability delays include budget constraints, manpower shortages, coordination problems, scheduling problems, resource management problems, poor site inspection and equipment allocation problems.

Internal factors such as the following: Contractors' liability: delays in the supply of resources at the construction site, insufficient resources at the construction site, incorrect and poor work, lack of experience and skills of contract workers, insufficient workers at the construction site, budget constraints, lack of site management, lack of communication between contractors workers, shortage and lack of appropriate tools on site, low productivity of workers, poor qualification of subcontractors.

I NVESTIGATING E FFECTS OF C APITAL P ROJECTS D ELAYS ON B UDGET AND Q UALITY AT CCP

  • E FFECTS OF C APITAL P ROJECT D ELAYS ON B UDGET
  • E FFECTS OF C APITAL P ROJECT D ELAYS ON Q UALITY

According to the statistics, of the 147 engineering accidents collected by researchers, about 1/3 of collapses in low-rise buildings were caused by improper construction methods or materials. The quality control process begins with creating quality control plans based on the design drawings and specifications, which establish the quality of the material and equipment, the acceptance criteria for the work on site, and the inspection and testing to be performed. A number of cases occur during and after the construction phase of the project. 2015), reported that 50% of poor construction supervision-related building defects in Nigeria are attributed to design defects, 40% to construction defects and 10% to product defects.

2014) also highlighted that due to the Medupi power station, Eskom had its credit rating downgraded by Moody's to Baa3.

Table 3.1: Project Cost Overruns in South Africa and their Financing Method  Source: Ismail et al
Table 3.1: Project Cost Overruns in South Africa and their Financing Method Source: Ismail et al

D EBATE ON THE T OPIC

This shows that delays in capital projects create masterpieces and buildings or projects of good quality. Project delays may also have a negative impact on the quality as decided and assessed by Moody's at Eskom Medupi Power Station. Through the literature review, it was identified that common causes of capital project delays are slow customer decision-making, design changes resulting in scope creep due to improper planning, and delay in funding and payment for completed works.

Financial problems will arise because there are many signatures that need to confirm, support and approve the payment to CCP for the contractor to get paid, which results in contractors not continuing with their activities until they are paid for the last work done. This results in delays to capital projects.

C ONCEPTUAL F RAMEWORK AND M EASUREMENT OF V ARIABLES

C ONCLUSION

CHAPTER FOUR: METHODOLOGY

  • I NTRODUCTION
    • Aim of the Study
    • Research Objectives
  • R ESEARCH M ETHODOLOGY
  • R ESEARCH D ESIGN
  • L OCATION OF THE S TUDY
  • T ARGET POPULATION OF THE S TUDY
  • S AMPLING T ECHNIQUES
    • Sample Size
  • R ESEARCH P ROCESS
  • T HE R ESEARCH I NSTRUMENT OF THE S TUDY
  • P RE -T ESTING
  • V ALIDITY AND R ELIABILITY
  • D ATA C OLLECTION T ECHNIQUES
  • D ATA A NALYSIS
  • E THICAL C ONSIDERATION
  • C ONCLUSION

This section highlights the methodology that was followed to address the purpose of the study and the research objective formulated in the first chapter. It was further discussed in detail how the study was conducted in terms of research design, location and study population. A brief mention of sample designs from Rose et al. i) Convenience sampling – is one in which elements from the population are accessed through a point of contact that is convenient and practical for the researcher.

Obtaining informed consent before starting the study or interview and ensuring the confidentiality of the data obtained.

CHAPTER FIVE: RESULTS AND DISCUSSION

I NTRODUCTION

R ESPONSE R ATE

D EMOGRAPHIC INFORMATION OF THE RESPONDENTS

Therefore, most participants had 5 years or less with the organization, with very few participants having 25 years or more with the organization. Therefore, most of the participants had 15 years and above, while the lowest were the participants who had 35 years and above experience in Project Management. Frequency table 5.5 and Figure 5.5 above shows that 9 (45%) respondents who participated in the study have Diploma, 8 (40%) have Diploma, 3 (15%) have Honors as their highest qualifications.

Therefore, most of the participants have diplomas and other degrees, with the highest qualification being honours.

Figure 5.1: Pie Chart showing gender of respondents (Source: compiled by the  author)
Figure 5.1: Pie Chart showing gender of respondents (Source: compiled by the author)

SECTION A: PROJECT DELAYS

The frequency table and bar graph above shows that more than half of the respondents 12 (60%) reported that projects are often late, with 4 (20%) respondents reporting that projects are always late, and only 4 (20%) reported occasional project delays. A literature review revealed that most capital projects have delays as stated by (Pai & Bharath, 2013). The above frequency table and bar chart show that majority of respondents 15 (75%) report that projects are delayed 3 years or less, while 3 (15%) respondents report that projects are delayed between 3 to 5 years and only 2 (10 %) report that projects are delayed by 0 years.

The literature also shows that there are projects that have been completed within time as indicated by Ismail et al (2014) on the Renewable Energy Independent Power Producer Procurement (REIPPP), a renewable energy project that was successfully commissioned and before the time was successfully completed.

Figure 5.6: Bar Chart showing respondents’ views on whether or not projects  delay. (Source: compiled by the author)
Figure 5.6: Bar Chart showing respondents’ views on whether or not projects delay. (Source: compiled by the author)

SECTION B: PROJECT DELAY FACTORS

SECTION C: PROJECT DELAYS EFFECTS

1 (5%) reported that project delays were the result of poor planning during the conceptual phase of the project. The frequency table above shows that more than half 11 (55%) of the respondents report that project delays always affect the budget, 7 (35%) report that often, and 2 (10%) respondents report that project delays occasionally affect the budget. Frequency Table 5.60 and Figure 5.60 above show that 4 (20%) respondents reported that project delays cost 5 million and more, 7 (35%) reported that they cost between 3 and 5 million, 8 (40% ) reported costing 3 million or less and 1 (5%) reported that project delays did not cause cost overruns.

The frequency table and bar graph above shows that 3 (15%) respondents reported that project delays always impact quality, 5 (25%) reported that it is often, 7 (35%) reported that it is sometimes, 2 (10%) reported that it is rare and 3 (15%) respondents report that project delays never impact quality.

Table  5.59:  Frequency  Table  showing  respondents’  views  on  whether  or  not   project delays impact on budget
Table 5.59: Frequency Table showing respondents’ views on whether or not project delays impact on budget

C ONCLUSION

2014) highlighted that Eskom was downgraded to Baa3 by Moody's because of the Medupi power plant. The reasons given by Moody's are attributed to 'Eskom's standalone credit quality to the uncertainty surrounding the evolution of Eskom's investment program and financial profile in the medium term.

CHAPTER SIX: RECOMMENDATIONS AND CONCLUSION

  • I NTRODUCTION
  • H OW THE O BJECTIVES OF THE S TUDY WERE A CHIEVED
  • F INDINGS
  • R ECOMMENDATIONS FOR THE C OMPANY
    • Recommendations for future research
  • LIMITATIONS
  • CONCLUSION

The project management experience and expertise of the project management team is very important in the execution and achievement of a successful project. The study found that the highest percentage of the sample believed that project delays affected quality, it was interesting to learn that the lowest percentage of the sample believed that project delays did not affect quality. Consultants must ensure that changes to the plan during implementation are managed in an open manner without affecting the intended outcomes of the project.

The study provided recommendations to the project management team at CCP to be aware of the extent to which project delays may affect their project delivery, should guide efforts to improve project performance, and should enable the avoidance or minimization of project delays at

Significant Factors Causing Time Overruns in Peninsular Malaysia Canadian Center for Science and Education Construction Projects. 2013) “The role of procurement practices in effective implementation of infrastructure projects in Pakistan”, International Journal of Managing Projects in Business. A Performance Evaluation Framework for Development Projects: An Empirical Study of Constituency Development Fund (CDF) Construction Projects in Kenya.

Project Risk Management Issues in the Nigerian Construction Industry, International Journal of Engineering and Technical Research.

APPENDICES

GATEKEEPER’S LETTER

ETHICAL CLEARANCE

INFORMED CONSENT LETTERS

QUESTIONNAIRE

EDITOR’S CERTIFICATE

TURN IT IN REPORT

Gambar

Table 3.1: Project Cost Overruns in South Africa and their Financing Method  Source: Ismail et al
Figure 5.1: Pie Chart showing gender of respondents (Source: compiled by the  author)
Figure  5.2:  Bar  Chart  showing  age  of  respondents(Source:  compiled  by  the  author)
Figure 5.3: Bar Chart showing respondents’ years in the organization (Source:
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