MAJOR DELAY CAUSES OF RESIDENTIAL PROJECTS IN THE YANGTZE DELTA OF CHINA

Abstract

The rapid economic growth especially after China entered the World Trade Organization has generated investment boom in the construction industry. Yangtze Delta area, with its strategic location, has experienced even higher economic advancement in recent years. As the residents become more affluent, the residential housing demand has also increased significantly. However, construction delay brings adverse impact in the delivery of these housing projects. The objectives of this study are to: 1) find out whether the different groups of industry players (contractors, consultants and clients) have the same perception of the main causes of delay in the construction industry in the Yangtze River Delta; 2) determine the top five causes of delay in this area; 3) discuss the consequences and effects for each of the main cause; 4) investigate the various means to eliminate and prevent the delay due to these causes. To achieve these objectives, questionnaire on delay factors were designed and answers were collected, analyzed and discussed. Quantitative analysis was conducted with the aid of SPSS soft ware, and experienced industry players are involved in the data collection. The top five main causes are identified as: Delay in contractor’s progress payment by owner, delay in progress payment to subcontractors, financing by the contractor during the construction period, unrealistic contract duration imposed by the client and obtaining permit/approval from the different government authorities. Measures for preventing delays such as proper selection of contractors, maintaining good relationship with the government bodies and securing sufficient finance before the construction commencement are discussed in this study.