International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
Commercial builders in Kuwait face increased competition as a result of a slowdown in spending and delays to project schedules. In addition, they are challenged by lapses in cash-flow as project owners postpone contract payments. For this reason, many high-rise building contractors have declared job cuts and are attempting to lower costs. The wealth of any country is measured by its performance in construction project delivery within the construction industry which is inherently large, unstable and requires great capital expenditures. For Kuwait economies, the commercial construction business constitutes a major component of the construction industry. The aim of the study reported in this research was to identify the causes and impact of cost increase and schedule delays in commercial construction projects in Kuwait. The study was carried out in Kuwait through a questionnaire that surveyed 300 building owners and developers of commercial projects in Kuwait. The results of the study confirmed the prevalence of cost increase and schedule delays in commercial construction projects in Kuwait. What is more, the study established delay of payments to be the number one cause of schedule delays in the Kuwait commercial construction industry, followed by the financial processes in client organizations and the financial difficulties that accompany the delayed release of funds by client organizations, contract adjustments and economic hardships. The study concludes that all the issues recognized in this study need to be carefully managed, so as to avoid risks that are attributable to them through enhanced risk and project management performed by clients, contractors and consultants.
How to cite this article:
Ahmad A. Al-Fadly. Identifying the Causes and Impact of Cost Increase and Schedule Delays in
Commercial Construction Projects in Kuwait.
DOI: https://doi.org/10.36478/ibm.2019.423.428
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2019.423.428