This is a vital question that why a contractor fails in a project and after some time the new contractors succeed in the same project.

 

Please understand the reasons and factors required for a successful execution:

The factors can be divided into two parts:

  1. Client driven factors
    1. Workable rates
    2. Timely & regular payment of bills
    3. Workable schedule
    4. Fronts availability
    5. Timely issue of drawings
  2. Contractor Driven factors
    1. Timely mobilization
    2. Sufficient mobilization of resources
    3. Timely payment to labour & sub-vendors
    4. Timely escalation of issues to client for its solution

As per my understanding, if any of the aforementioned factors are not taken care of properly with due diligence and on time then the work is going to hamper. I can say that all these factors though look different, actually are dependent on each other and work as a package for success of work.

 

We can analyse each and every parameter in detail and it is advisable also. On a broader perspective they are the mix of technical and commercial conditions for execution of the work.

Now Client driven factors:

  1. Workable rates
    1. In our efforts to economize the cost we generally tend to follow the rates derived from standard rate analysis book like MORTH, MES, DSR, Nabhi, etc. which are very good to give the guidelines for a new work under specific conditions but the rates are to be amended based on the site conditions, local conditions, over-heads specific to that project and quantum of the work.
    2. For example – Generally various factors like too much demand for quality check and formats force Contractor to increase the technical / engineering manpower, additional vehicles to transport the additional manpower, additional equipment to cater for crashed schedules which are generally not considered in standard rate analysis results in increase of over heads cost, increase in equipment cost and cost related to schedules etc. The same need to be incorporated in the rate analysis to derive the practical, feasible and workable cost.

 

  1. Timely and Regular payment
    1. Payment is life line of a contract, it is like oxygen to the human body, the moment payment is held-up, stopped or even the rumour of such envisaged hindrance is spread is detrimental to the progress of work. It is an established fact that the moment payments are delayed the Contractor goes in hibernation mode to save guard money for future. This in turns slowed down the work and in certain cases it slowed down to negligible progress.
    2. Timely payment encourages Contractor to perform fast and it ensures them more turnover and more money to sustain current progress and also ensure growth for future.

 

  1. Workable Construction Schedule
    1. The workable construction schedule means that the progress can be achieved within scheduled time and within optimum resources. Any requirement for more resources or underutilization of available resources shall make the schedule non-workable. So caution is to be taken while deriving the construction schedule that either the rates incorporates the additional resources or if the resources are the base factor then the schedule is derived accordingly.

 

  1. Fronts availability
    1. By fronts availability it is understood that the contractor gets the uninterrupted avenues to work and the work which is given is continuous in nature and at one location for one team and in near vicinity of the centralized monitoring team.
    2. The lack of fronts or interrupted flow of work shall reduce the progress and in turn shall increase the cost and result in delays.

 

  1. Timely Issue of Drawings
    1. Drawings are the basis of all execution as this is the concept on which project has to be made reality. There are two type of drawings:
      1. Good for Construction drawings meant for construction of main structure. In that series all the drawings required for MEP, interiors, finishes etc. are part of these drawings. As the structure is to be constructed based on this any delay in this shall result in the delay of execution. The delays have their own bad effects on the project, already shared above.
      2. General, site level drawings made to ease the site execution. For this overall understanding.

 

Similarly, various factors attributed to Contractor are to be taken care off to ensure timely completion of project.

 

Hope these brief points will help in understanding red flag issue which are responsible for progress or delay of a project.