| Case Name |
Drastic delay of overpass construciton project funded by international assist organization. |
| Pictograph |
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| Place |
A country in Asia |
| Overview |
An overpass construciton project that was funded by international assist organization was delayed 2times, that was estimated to finish in 900 days but delayed 480days in total.
The dicision of bidder was delayed , the contract after the examination was decided 3years later than estimated.
Once,the assist organization stopped funding, and the contract between contractor and execution organization was returned to begining.
In the construciton phase, the ability of the contractor was seemed less, and the construciton was stopped, then the procedure was delayed widely.
The main reason of the failure of selection of the builder, is that the government's attitude was wrong, and the builder did not have enough experience of supply.
The main reason of the failure in construciton stage,is the ability of constructor was not enough , and sudden occurrance of economic crisis hit the balance of constractor.
Finally, a new contractor that has enough technology and management had joined , this project was completed. |
| Incident |
An overpass construciton project that was funded by international assist organization was delayed 2times, that was estimated to finish in 900 days but delayed 480days in total. |
| Sequence |
the construction consists of 2700m's overpass and 800m's access road,and 4 interchanges.this route passes ,high-dencity of residence-areas ,so it includes the removal of existing buried pipes.The total amount of cost is over 3-billion yen,(tax included). More than half is funded by ADB, and the other by A country. At first, the construciton term was fixed 900days, but it was delayed two times,total 480days .
The dicision of bidder was delayed , the contract after the examination was decided 3years later than estimated.ADB stopped funding, the contract between contractor and builder was returned to beginning. In the construciton phase, the ability of the contractor was seemed less, and the construciton was stopped, then the procedure was delayed widely. |
| Cause |
Devide the cause into two phases, supply and construction.
Supply phase
1) the attitude of government.
The main cause that was recognized by the constructor, is that the project was accepted insufficient budget,and its acception was delayed,and government's opinion was not concrete. then,the bidder's decision was delayed.
2) the attitude of construction institution
the construction institution accepts their responsibility.the time when they received the project papers was 1995/9 but the time the bidder was decided was 1997/3, 1and a half years later. This is because ,the condition of the bidding was not clear, so objections from bidders was done, and buying of the land was delayed, and acceptance of the constructor was delayed. The delay of the dicision of bidder , was lead to the contract delay and building delay.
3)The constractor did not has enough experience of supply.
The contractor recongnizes that the main reason of failure is the shortness of experience to supply about this kind of construction.
And the contractor told that the unfairness of standard of investigation of qualification,and unclearness of the condition of bidding was also the cause of delay.
Construction phase
1) Lack of ability of constructor
The constoructor thought the main reason of the delay(and dissatisfaction of cost and quality) is that the balance of the contractor went bad, and they did not habe the ability to build the road ,and the lack of the coorperation among the conpanies that construct the road. Especially, the change for worse of balance was thought the main reason of delay by constructor ,contractor, and consultant.
2)The reason of financial going worse was thought the stop of financial support by the bank and the sudden happening of economic crisis ,by constructor ,contructor, and consultant. In addition , the contrator told that the change of interest ,and lack of supply, and payment delay was also the reason of delay. |
| Response |
In building phase, constructor, consultant ,and contractor recognized the going worse of balance is the biggest reason of the project fairure.
To solve this, 1) Let new contractor with superior technology and management join the project. 2)Restart of the funding by the bank. 3) The constructor have to cancell the contract with the current contractor.
Restart of funding by bank was thought good solution for contractor,by this , the balance of subcontractor and material company would go better.
The cancellation of contract by constructor gives severe damage to the contractor's balance.And, to decide new contractor needed more time, so this may lead to the stop of funding by ADB.
The best solution thought by consructor was, to let new contractor with good technology and management join the project. |
| Countermeasures |
1)Related with the dicision of bidder.
To prevent the delay of decision of bidder, i) Make the bidding condition clear ii) Improve the process of the acception of constractor, and make it effective. Iii) Add the contract condition that the contractor can start the construciton before the completion of land addmission.
In these proposal , the iii) was thought to be the best way by the constructor.
2)About the experience of supply of the constructor.
To improve the lack of experience of supply , it was proposed that the consultant with enough ecperience and ability should support the constractor. Especially, the fixing the base of the pre-qualification and the bidding sheet was recongnized important support. |
| Knowledge Comment |
Among the project in the developing countries, it offten happens that the constractor itself doesn't have the enough ecperience of constrution , and also supply. To minimize the failure of the construction phase, it is important to prevent failures in supply phase.
In the case of the construction ,such as the project funded by international assist organization, where many persons concerned join, those who join the project have to understand the each definition of failure and its solutions before and after the failure. |
| Background |
In this case ,the failure in supply phase went worse by the sudden happening of Economic crisis. |
| Sequel |
The actual solution was to let new contractor with good technology and management join the project. |
| Incidental Discussion |
The japanese assist institution does evaluation after the projects. The conclution is devided into 3 parts, "Successful approximately","partial success","failure"this case was evaluated "partial success" the lower grade. |
| Account of Concerned Parties |
The definition of failure is different in each institute.
In this case ,the phase is devide into two part, supply phase and construction phase. And interviewed main persons concerned in each phase.
The solution in the case of failure and its difinition are made clear.As the main persons concerned, we focused on the constractor and contractor in supply phase, and on constractor , contractor ,and conslutant in construction phase.
The most important object in supply phase is , for constructor,to select the contractor with enough technology and management and for the contractor, to contract the construction with enough budget with that they get the profit and can complete the project.
In construction phase, start construciton in time is the most important object for the contractor and consultant, and completion in time ,in budget ,and good quality is the most important for constructor.
In this reseach , we tried to make it clear if the object is completed in supply and construction phase, and in the case the object is not completed, tried to show the solution. |
| Reason for Adding to DB |
In this case ,the term needed to complete the project is more than 1.5x multiplied .In A country, this is not a rare case.So we want to show the cases of construction widely delayed in Asia countries ,and its reasons. |
| Scenario |
| Primary Scenario
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Ignorance, Insufficient Knowledge, Misjudgment, Misunderstanding, Unknown Cause, Occurrence of Abnormal Phenomenon, Planning and Design, Poor Planning, Production, Hardware Production, Malfunction, Specifications Not Met, Loss to Organization, Social Loss, Damage to Society, Social Systems Failure
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| Field |
Civil Engineering
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| Author |
WATANABE, Tsunemi (Kochi University of Technology)
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