Causes of Delay in Construction Projects in Oil and Gas Construction Industry

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The British University in Dubai (BUiD)
Although construction delays are universal, the delays in the oil and gas industry are unique. The aim of the study was to establish the major causes of delay in the oil and gas construction projects and to group them in accordance with their importance and impacts. Qualitative method was used in a single case study adopted. The sample comprised 10 informants chosen based on a specified criterion and reached through the snowball sampling technique. The findings indicate that the scheduling of oil and gas construction projects is conducted up to standard and through the use of scheduling software. Scheduling, workflow management and delay recognition were problems established to be caused by the lack of a professional project manager on site; cash flow management problems caused by inadequate allocation of funds at the bidding stage. Procurement was established to be a secondary problem that emerged as a result of scheduling problems and workflow problems. With regard to design, the contractor’s need to decrease construction costs through a cheaper design was found to be a factor in design changes. Issues related to client performance included bureaucracy and late honouring of certificates. Secondary causes such as rework, the rate of productivity, dispute management and delay analysis were also found to have great significance. Dispute management processes appeared to be another major cause of delay. Lastly, it was established that there were no active formal means of delay analysis. The delay was found to impact on contractual relationships, profitability and profit margins of both the contractor and the client, and the on the possible gains by the hosting communities. The limitations were methodological in nature. Future research should therefore test the results established through quantitative surveys. For practitioners, there is a need for a dedicated professional project managers in construction projects and honesty and transparency in contract bidding for continued business relationships.
construction projects, oil and gas industry, construction industry