Chapter Five Data Analysis And Results Construction Essay

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The preceding chapter discussed the research methodology of this study and here the chapter is focusing on develop a model to predict avoid the delay in material delivery in BOI approved projects in Sri Lanka. This chapter discusses the relationship between the construction material delay and other variables, data analysis method. Further it has been described the reliability of the model and how it vary from practical situation.

5.2 Data collection

The survey has been conducted using the structured questionnaires and two types of selected samples. The samples of Client in the construction industry were selected from ongoing project and finished project basically falls under two types. And I take structured interview with client contractor consultant supplier and BOI. The respondents of ten each from ongoing and Finished Project in client organizations were responded. Following table 5.1 expresses the number of questionnaires of each type of samples in the questionnaire survey.

Project

Ongoing Project

Finished Project

Samples

10 respond out of 12

10 respond out of 12

Table: 5. : Number of respondents in questionnaire Survey

5.3 Contractors purchasing department involvement and client expectation

Client was asked to grade how often the contractor's purchasing department is involved and client's expectation on contractor's purchasing department's involvement in following ten different stages of a purchase. How often was graded on five step scale; never, not often, fairly often, often and very often.

 

 

Contractor performance 

Client Need 

 

Factor

RII%

Rank

RII%

Rank

1

Budget quotation

76

5

72

7

2

Design of the technical specification

41

10

59

10

3

Find suitable supplier

81

2

69

9

4

Evaluate suitable suppliers

80

4

73

6

5

Sent request for quotations

70

8

72

7

6

Evaluation of quotations

66

9

77

4

7

Final selection of supplier

72

6

81

2

8

Final negotiation

72

6

77

4

9

Ordering

86

1

81

2

10

Delivery follow up

81

2

82

1

Table: 5. : Contractors purchasing department involvement and client expectation

Here, RII was conducted to identify significant factors from client's point of view that how often the contractor's purchasing department is involved and client's expectation on contractor's purchasing department's involvement in following ten different stages of a purchase and rank both set of factor are rank individually.

According to the above table client wish to give importance to these factors from contractor side, there are delivery follow up, ordering, final selection of supplier, evaluation of quotations and final negotiation. And contractor shall gave importance to these factors, there are delivery follow up, budget quotation, ordering, evaluate suitable suppliers and find suitable supplier.

Both parties, contractor and client don't like to allow delay in delivery of materials. But contractor try to reduce the cost of material and try to increase his profit. According to the above concept, client feels that contractor gives importance to the above mention factor. But client try to increase the quality of material and try to produce quality output. Due to this reason client try to give importance to above mentioned factors.

Client requirement of budget quotation go back in the rank rather than what contractor has done in that project. Most of my data come from property developers. Main purposes of those projects are built and sale, due to this reason client like to expect the high quality rather than worrying about cost of material.

According to the above table both parties of the project mentioned delivery flow up come to front in the order of the rank. According to above table, we can come up to a conclusion that client try to reduce the delay in the material.

Other thing, both parties give importance to material ordering, because in BOI approved project, client has to give proper attentions for material odering,otherwise, we cant get tax duduction from custum in the port.

Contractor give proper attention to evaluate suitable suppliers for material purchasing to avoid the delay of the material and get best prize for quotation, but client do not give importance to that factor but client give importance to Final selection of supplier and Final negotiation of the supplier rather than contractor.

Analyze client do not try to allow take decision to contractor for Design of the technical specification, due to my data of analysis for cause on BOI approved building project such as property Development . Most of the projects in this sector in measure and pay procumbent method, because contractor does not take responsibility to design of the technical specification for that project

5.4 Management factors effecting delaying delivery of materials

Factors which are discussed below are very important factors in the construction industry to avoid delay delivery of materials in the construction industry.The construction industry professional must consider to maintain as "Very Effective" level. As a result of these activities, I found some management factors which are effect of delay in delivery of material that was identified through pilot survey. They are as follows.

During this analysis the factors which have been obtained a RII score of more than 80% are recognized as the Very Effective, 60% - 80% are selected as Moderate Effective, 40% - 60% are selected as Somewhat Effective and less than 40% are selected as not effective in the construction actual site. According to the Questionnaire survey, I got the information from the client that, how to feel those missing factors which effect delay delivery of materials in BOI Approved projects

Factor

RII

Rank

Effectiveness

1

Proper submission of the document of the BOI

90

1

Very Effective

2

Using project management techniques

89

2

Very Effective

3

Coordination with BOI office people

88

3

Very Effective

4

Planning and coordination

88

3

Very Effective

5

documentation system by client

84

5

Very Effective

6

Identify problems and institute necessary, timely design and programming changes

82

6

Very Effective

7

Communication among contractor, consultant, and the client

81

7

Very Effective

8

Contractor's reports and documentation

79

8

Moderate Effective

9

Project planning to material purchasing planning

79

8

Moderate Effective

10

Centralized decision making

75

10

Moderate Effective

11

Contractor's material delivery schedules

75

10

Moderate Effective

12

Master program accurate and complete

73

12

Moderate Effective

13

Proper preparation of the Purchasing order

72

13

Moderate Effective

4

Storage facility on site

66

14

Moderate Effective

Table: 5. Management factors effecting delaying delivery of materials

Here, RII was conducted to identify significant factors from client's point of view what factor are effecting in delay of delivery materials in BOI approved projects and how each factor is impact on construction delay and cost in Sri Lanka.

My questionnaire data focus based on BOI project under construction industry. When we go through the BOI procedure it is defer from other project. Due to significant factors of BOI project are different from other project. Under BOI projects' significant factors are "proper submission of the document of the BOI", "using project management techniques", "coordination with BOI office people", "planning and coordination", "documentation system by client"," identify problems and timely design and programming changes" and "Communication among contractor, consultant, and the client". Those factors are more significant than other factors. But if we take this project as normal project then answer may be slightly different. Some other factors may be become higher rank, such as "proper preparation of the purchasing order", "master program accurate and complete", "contractor's material delivery schedules", "centralized decision making and project planning to material purchasing planning". These factors are very effective factors in this project also.

5.4.1 Proper submission of BOI document

According to above rank, if it is the BOI approval project, the Proper submission of the document of the BOI is very important in these projects. According semi structure interview, if client fail to submit the proper document to BOI, client can't get approval from the BOI, so it leads to delay of the material and increase the cost. When we submit the document to BOI, We must ensure the accuracy of total quantity of material measurement sheet with suitable drawing which are equal or less than BOQ quantities. If the material quantity may increase above the BOQ Quantity, BOI approved client must be submit proper Documentation to BOI and must get approval.

5.4-2 Using project management techniques

Using proper project management techniques will favor the BOI approved company to minimize the construction costs. Key factors are needed to be taken into consideration, which will include selecting an appropriate project manager. The project manager should be an experienced professional who can manage the project efficiently. Understanding the roles of each team member as well as managing them is critical aspects of the project manager. Further managing the resources such as financial, raw materials etc will be the key tasks of the project manager. A well planned project will help the construction company in terms of low cost operation. Because of the abovementioned reasons proper project management techniques has been selected as the second preference.

5.4.3 Coordination with BOI office people

According to ranking procedure, coordinating with BOI office people is take place third rank in this schedule. There are multiple parties in involvement including contractor, client, consultant and government authorities such as BOI, in Construction industry. It is the BOI approved project which gets duty free from the BOI. So maintain proper Coordination between BOI and those client organization drives to reduce the cost and delay of the material delivery.

5.4.4 Planning and coordination

According to the common knowledge, BOI approved company can't avoid to reduce the cost and delay of the material purchasing without proper planning and coordination. In this study, the fourth significant factor is planning and coordination. Project manager has a duty to act in a manner which makes a proper planning in site and develop coordination inside of the company. He/ She have to look after each and every activity to maintain proper cost controlling and he/she has to manage them well.

In Construction industry team work is essential. Therefore if doesn't have proper coordination among the staff, He/she can't ensure success of the project. First duty of the project manager is creating good coordination among the staff. Project manager has to take most appropriate decision, considering all subordinate's opinion

5.4.5 Documentation system by client

Increase the effective documentation system by client is the one of important factor which is essential for BOI approved company to minimize the construction costs and delay. Because contractor always try get more and more profit from the client. So if client fails to maintain the data of the site, client can't argue with contractor and can't reduce the cost of project. And it is the BOI approved project, here client is fully responsible for material purchasing through the BOI duty free basic. Client fails to maintain the proper record keeping about BOI; He/she may lose some item to import duty free basic.

5.4.6 Identify problems institute necessary and programming changes

Other main important factor is identifying problems and timely designing and changing program which increase the cost effectiveness and avoid the delay of the material delivery. If any variation is found out in the design or at actual site, proper person gives to instruction to responsibility person to solve that problem immediately. It helps to avoid increase the cost and delay of the project. Other thing, in the BOI approved project, effect of change in design and program may create variation from BOQ quantity which are submitted to BOI when time of approval. So, client can't import duty free basic for excess quantity from the BOQ without permission to BOI which is increasing the cost of material. Due to this reason clients go through the clearing processes which increase the time of delivery of material.

According with BOI person unstructured interview when we import the material, damages may be happen. On that time we can claims from the insurance company and we inform to BOI who come and inspect and allow buying under Duty free basic. So here we must maintain the proper documentation of the client and identify problems solve immediately

5.4.7 Communication among contractor, consultant, and the client

According to ranking procedure, Communication among contractor, consultant, and the client takes place middle rank in this schedule. In Construction industry we have to work as team including members such as client contractor consultant and etc. Maintain the proper communication among those parties and try to solve day to day problems immediately and get optimum solution are essential tasks in construction industry.

5.4.8 Contractor's reports and documentation

According to the Questionnaire survey, Contractor's reports and documentation also catch middle rank of this schedule. If contractor fail to maintain the past data of the site, he/she can't solve the problem when it is happened.

5.4.9 Project planning to material purchasing planning

According to Questionnaire survey, "Project planning to material purchasing planning" takes place middle rank in this schedule. Project planning to material purchasing planning is very importance factor in the construction industry. Contractor gives important to this also. But client focus based on BOI project in the construction industry due to this factor take place middle level. If the professionals maintain proper material purchasing planning, it will be performed to improve the cost effective and avoid the delay of the material. According to semi structure interview, Sri Lankan construction industry did not give that much of important to prepare the material purchasing planning. Because the total cost of project is lesser than foreign country project.

5.4.11 Centralized decision making

Even though Centralized Decision Making is in the bottom of the ranking order, it is a very important factor in the construction industry. In Sri Lanka the Construction Companies didn't introduce a proper communication system with-in the organization. It is very clear with the data I've selected to carry-out the survey in Colombo. Since they have not given importance to Centralized Decision Making it has taken 10th rank. The advantage of Centralized Decision Making is taking proper decisions, on time. As well educated professionals are taking part in decision making; the accuracy of the decision will be high. But on the other hand if the team involving taking decisions with neglects the current local condition, the decisions will be less accurate.

If contractor professional used proper Centralized decision making, he can reduce the cost and time delay. So centralize person should be selected as very effective person and contractor can arrange the place in Colombo. But if contractor working in a rural area he can't manage all purchasing in that place, so if the contractor maintain the Centralized decision making, he can get high quality material with less price. And other thing contractor head office people are doing material purchase for other site also. So if the contractor head office person buys material for two sites under him, he can get discount also. So I like to gave important to when the model preparation.

5.4.12 Contractor's material delivery schedules

Contractor's material delivery schedule is other very important factor in the construction industry. But according to the Questionnaire survey, client focus based on BOI project for material delivery schedule. Due to this reason, it has gone back in the ranking order. Maintain the proper material delivery schedule is help to maintain material delivery on time and contractor can get to know what are the material available at site and what are material want to import from foreign country. According to that contractor can manage the site in cost effective manner and avoid the delay also.

5.4.13 Master program accurate and complete

"Master program accurate and complete" is very important factor to avoid the delaying delivery of material in construction industry. But according to the Questionnaire survey, client focus based on BOI project for Master program accurate and complete. Due to this reason, it has gone back in the ranking order. Prepare and maintain the accurate Master program help to manage the site to accurate way and maintain smoothly. Here client must check the progress of the project. If the contractor miss to maintain the master program of the project, it leads to time overrun and cost overrun of the project due to that reason, contractor will lose profit, due to this reason contractor try to reduce the Quality of work and get more money. It is help to finish the project before the due date of the project delivery. If the contractors fail to delivery of the project on time, client lost his money also.

5.4.14 Proper preparation of the purchasing order

Proper preparation of the Purchasing order is very important factor in the construction industry. But according to the Questionnaire survey, client focus based on BOI project for Proper preparation of the Purchasing order. Due to this reason, it has gone back in the ranking order. But in Sri Lanka contractor didn't prepare in proper way, due to the reason of total cost of project is lesser than foreign country project.

5.4.15 Storage facility on site

Storage facility on site depends on area of the site. Other think most of my data base on Colombo and land value is high in Colombo area. So it is the reason for limited area for material storage. Contractor must consider the material storage and delivery the material when that project actually wants. Due to that reason contractor must maintain proper material delivery schedule without delay.

5.5 Model for delivery of materials

According to above Table: 5. analyze, client's point of view some management factor are effecting very effective in delay of delivery materials in BOI approved projects and how each factor is impact on construction delay and cost in Sri Lanka. There are some factor, "proper submission of the document of the BOI", "using project management techniques", "coordination with BOI office people", "planning and coordination", "documentation system by client"," identify problems and timely design and programming changes" and "Communication among contractor, consultant, and the client". Construction industry professional must develop these management factors very effective ways specifically for BOI project.

Under BOI approval project, fixed reorder point and fixed order quantity and Cyclical or fixed order interval system are not possible for construction industry because, when we get the approval from the BOI, they don't allow for large quantity rather than the required quantity under this model. We are unable to get only for required quantity and unable to change the order quantity under this model also.

Factor

(MRP) systems

just-in-time (JIT)

Build smart

Proper submission of the document of the BOI

possible

possible

Possible

Using project management techniques

possible

possible

possible

Coordination with BOI office people

Not possible

Not possible

Possible

Planning and coordination

possible

possible

possible

documentation system by client

Not possible

Not possible

possible

Identify problems and timely design and programming changes

possible

possible

possible

Communication among contractor, consultant, and the client

Not possible

Not possible

possible

Contractor's reports and documentation

possible

Not possible

possible

Project planning to material purchasing planning

possible

possible

possible

Centralized decision making

possible

Not possible

possible

Contractor's material delivery schedules

possible

possible

possible

Master program accurate and complete

possible

possible

possible

Proper preparation of the Purchasing order

possible

possible

possible

Storage facility on site

possible

possible

Not possible

Table: 5. : Model for delivery of material

According to above model, I like gave important Communication among contractor, consultant, and the client, Coordination with BOI office people and documentation system by client.

Construction industry have major problem of communication among contractor, consultant, and the client under one networking. According to the literature view survey, it is possible to solve this problem to propose the model as Build smart rather than other. Because build smart is networking soft ware integrated with Candy Estimating also. So construction industry professional can use for this model for estimating purpose and other feature of this model is Valuation Cost Ledger, General Ledger, Creditors, Debtors, Subcontractors, Plant & Equipment Management, Stock Management, Fixed Asset Management, Cash Book, Bank Reconciliations, Creditor/Sub Contractor Cheques, Remittance Advices, Debtor Invoices, Plant Hire Invoices, Build Smart Business Intelligence, Document Management, Costing Reports and General Ledger Reports.

And other factor "proper submission of the document of the BOI", "using project management techniques", "planning and coordination", and" identify problems and timely design and programming changes" possible to solve all three model also.

According to above analyze construction industry professional used in build smart is best solution for BOI project.

5.6 The conceptual model for effective delivery of materials

According to the literature survey findings and unstructured interview findings the relationship between material delays in material delivery in BOI approved project and other variables can be explained through a conceptual model. There are some independent variables which have correlation among them. It has been interpreted through this conceptual chart.

Delay Factors

Mean (in weeks)

Percentage of delay (%)

df1

Delay in Preparation of measurement sheet.

11.5

4.85

df2

Delay in 3rd party approved.(Without client and contractor)

12.75

5.38

df3

Delays in BOI Engineer department approve.

16.2

6.83

df4

Unforeseen event from the supplier country

36.15

15.25

df5

Shipping Delay

37.1

15.65

df6

supplier Manu faction delay

20.1

8.48

df7

Delays in Clearing process

15.15

6.39

df8

Letter of credit validity period finish before the material achieve at site

18

7.59

df9

Delay with open Letter of credit (Reason of client)

14.75

6.22

df10

Reason from the Customers (Reject some material ) and Quotation Calling

17.25

7.28

df11

Financial problem from the client

38.15

16.09

Table: 5. factor affecting effective delivery of materials

According to above table 5.3, I calculated the average delay of material purchasing for each project from my questionnaire data and I interpreted the mean value of those factor according my data which was collected by me and calculated the percentage of those values. Finally I transferred that values to the below table.

According to the table 5.3, the factors "Shipping Delay", "Financial problem from the client" and "Unforeseen event from the supplier country" have the most effective factors in delay. Those factors consist of 16%, 16% and 15% respectively of the total delay.The total expecting project duration model when considered delay will be generated as follows

Preparation of measurement sheet

Consultation approval

Quotations calling and client

Supplier Manu faction

Letter of credit opening

Get BOI approval for those materials

Shipping

Clearing Process

[1+4.85%*15.75%]

[1+5.38%*15.75%]

[1+7.28%*15.75%]

[1+8.48%*15.75%]

[1+6.39%*15.75%]

[1+6.83%*15.75%]

[1+15.65%*15.75%]

[1+6.39%*15.75%]

Weeks/Days

Weeks/Days

Weeks/Days

Weeks/Days

Weeks/Days

Weeks/Days

Weeks/Days

Weeks/Days

Required Duration

Calculation

Duration with delay

Total Duration for Material Delivery without any expectation

Weeks/Days

Figure: 5. The conceptual model for effective delivery of materials

From the above Figure 5.1, client is able to calculate the total duration with minimum delay. From the questionnaire survey which I did, I calculate the average of each project when they are purchasing material time over run under BOI approved project. Then I interpret the mean values of those projects and find the material purchasing over run.

Other thing is, required duration changes from person to person. So client have to find required duration according to the past data and weighted of those works. After the data collection we can find the total duration of the material purchasing and client able to find the individual activity duration also. Then client has ability to give due date according to what the actual duration are. When the client maintains the actual duration, if any delay happened through the activities in purchasing materials, client can manage material purchasing without any delay. But if any purchases are done without any delay in individual activity, client able to get the goods before the due date. But above analyze, I used the mean value of the material purchasing over run. This value is 15.75. So material can achieve to the site before the 15.75% of the total duration. So it will not be a big effect in purchasing activity and also conclude that purchasing is not possible to happen without any delay according to the past life of the construction industry under BOI purchasing.

Do you have any financial problem from the client?

Expect Duration

[1+16.09%*15.75%]

Duration with delay

Is it possible to Letter of credit validity period finish before the material achieved at site?

Expect Duration

[1+7.60%*15.75%]

Duration with delay

Is it possible to unforeseen event from the supplier country?

Expect Duration

[1+15.25%*15.75%]

Duration with delay

Total Duration for Material Delivery with expectation

Weeks/Days

Figure: 5. Additional models for effective delivery of material

Other thing is some factor effect in the material delay but that is not always happening. But if client knows is it possible to happen then client can include that also. There are some factors such as Letter of credit validity period finish before the material arrives to the site and financial problem from the client and unforeseen event from the supplier country which are included by me under above table. So we can take both duration and delay and can calculate the total duration for Material Delivery with present of these factors. According to above Figure 5.3calculation client able to give due date for all activity.

5.7 Summary

Client was asked to differentiate between the Contractor performance and client need for material delivery ten activities. According to that I find the result of contractor and client try to reduce the delay in materials delivery. According to the management factor analysis, Under BOI projects' significant factors are "proper submission of the document of the BOI", "using project management techniques", "coordination with BOI office people", "planning and coordination", "documentation system by client"," identify problems and timely design and programming changes" and "Communication among contractor, consultant, and the client". According to that I proposed the model as build smart. Getting the mean value each Delay factor and develop the conceptual model for effective delivery of materials.

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