Possible factors causing unsuccessful development projects

It is necessary to investigate possible factors that may cause development projects to be unsuccessful especially in the context of time. These factors may impact residential development projects in South Africa. The time and cost for the performance of a project are usually important to the employer and contractor (Salunkhe and Patil, 2014: 543). Delays have serious cost consequences for the contractor (Najafabadi and Pimplikar, 2013: 75) and are insidious, often resulting in time overrun, cost overrun, disputes, litigation and complete abandonment of projects (Sambasivan and Soon, 2006: 518; Najafabadi and Pimplikar, 2013: 75;

Gajare, Attarde and Parbat, 2015: 85). For the owner, delay means the loss of income and unavailability of facilities (Gajare et al., 2015: 88). Many projects are of such a nature that the client will suffer hardship, expense or loss of revenue if the work is delayed beyond the time specified in the contract (Najafabadi and Pimplikar, 2013: 75).

Although there may be unique aspects related to different projects, sites, contract terms, customs and practices in different parts of the world, delay is a reality in the construction process (Bramble and Callahan, 2010: 3). The delay problem in the construction industry is a worldwide phenomenon (Sambasivan and Soon, 2006:

517; Darnall and Preston, 2010: 3; Salunkhe and Patil, 2014: 543). Delays occur in most construction projects, either simple or complex. According to Salunkhe and Patil (2014: 543), the project time overrun and cost overrun problem is faced by numerous countries and various studies on the causes of these problems have been conducted in countries such as: India (Singh, 2010); Jordan (Sweis, Sweis, Hammad and Schboul, 2008); Nigeria (Aibinu and Odeyinka, 2006); Saudi Arabia (Assaf and Al-Hejji, 2006); Hong Kong (Tommy, Ivan and Karen, 2006); Egypt (Mohamed and Tarek, 2013) and Malaysia (Hamzah, Khoiry, Arshad, Tawil and Che, 2011; Abu Bakar et al., 2012).

In construction claims, the term “delay” is used to refer to two different but related matters (Najafabadi and Pimplikar, 2013: 75). Delay is often used to mean the time period during which some part of the construction project has been extended beyond what was originally planned due to unanticipated circumstances. Extension beyond what was initially planned may also be called prolongation. Delay can also

be the incident that affects the performance of a particular activity, with or without affecting project completion (Najafabadi and Pimplikar, 2013: 75). This concept of postponement occurs when the planned start of an activity or project is delayed. An incident delay can originate from within the contractor's organisation or from any of the other factors interacting with the construction project. Incidences of delay from within the contractor's organisation are essentially those occurrences that the contractor has caused or for which they are legally responsible (Najafabadi and Pimplikar, 2013: 75).

Incidences outside of the contractor's organisation may be caused by the owner (or employer), the designer, other prime contractors, subcontractors, suppliers, labour unions, nature, or any of a number of other organisations and entities that participate in the construction process (Najafabadi and Pimplikar, 2013: 75). Many events may occur on the construction project to increase the time of performance of the overall project or affect any given activity (Najafabadi and Pimplikar, 2013: 75).

The most common causes of delay are: contractor management and performance problems; differing site conditions; changes in requirements or design; inclement weather; unavailability of labour, material or equipment; defective plans and specifications; and owner interference (Najafabadi and Pimplikar, 2013: 75). These and other delays not only increase the time required to perform the contract work but may also increase the costs for many of the parties involved (Najafabadi and Pimplikar, 2013: 75).

Below, Table 3.2 illustrates a summary of causes of delays in construction projects from literature reviews compiled by Pourrostam and Ismail (2012: 599) which can possibly relate to residential development project delays in South Africa.

Table: 3.2 Summary of causes of delays in construction projects

Source: (Pourrostam and Ismail, 2012: 599)

3.2.3. Investigation into possible success factors of residential development projects

It is necessary to investigate possible factors which may ensure success of residential development projects, especially in the context of time. These factors can contribute to the success of residential development projects in South Africa.

According to Ofori (2013: 17) defining project success poses another challenge in understanding project management and consequently assessing its performance. It is generally accepted however, that the success or otherwise of a project can be defined through the convergence of and the ability of the process to meet the technical goals of the project whilst not deviating from the three constraints of scope, time and cost; the usefulness of the project as perceived by beneficiaries and sponsors as well as the project team; and the performance of the project (Kerzner, 2003; Ofori, 2013: 17). By such a definition, project success or failure can only be effectively measured at the completion of the project. This concurs with Baccarini’s (1999) definition of project success, which measures success or failure by the elements of the project log-frame, and thus, the effective utilisation of the project output (Ofori, 2013: 17). Also mentioned by Baccarini (2003), is that it is consequently vital that projects are successful (Abu Bakar et al., 2012: 5). Projects generally fail because of poor planning, constant changes in the scope and consequently deadline and budget, as well as a lack of monitoring and control (Ofori, 2013: 17).

According to Mobey and Parker (2002), to increase the chances of a project succeeding, it is necessary for the organisation to have an understanding of what

anticipating possible causes and effects and then choose appropriate methods of dealing with them. Once identified, the success of the project can be achieved (Abu Bakar et al., 2012: 5). The same can be said by de Wit (1988), cited by Abu Bakar et al. (2012: 9), who states that successful project management can contribute towards project success but is unlikely to be able to prevent project failure.

Abu Bakar et al. (2012: 5) who cited Chua et al. (2012), states that generally the success of a construction project depends on a number of factors such as: project complexity; contractual arrangements and relationships between project participants; the competency of project managers and the abilities of key project members. Abu Bakar et al. (2012: 5) cites a report compiled by Bayliss (2002), which describes that successful project delivery requires the concerted effort of the project team to carry out the various project activities, but it is the project manager who, at the centre of the project network, is responsible for orchestrating the whole construction process (Abu Bakar et al., 2012: 5). Possessing core project management competencies would help define the ability of project managers to deliver good performance towards the attainment of project success (Abu Bakar et al., 2012: 6).

De Wit (1988) cited by Ofori (2013: 17) distinguished between project success, which is measured against the overall objectives of the project and project management success measured against the widespread and traditional measures of performance against cost, time and quality (Ofori, 2013: 17). According to Pinto and Slevin (1988) cited by Ofori (2013: 17) developed a set of best practices for project management, which are believed to contribute to project success. These

include: Project Mission – the initial clarity of goals and general direction; Top Management Support – the willingness of top management to provide the necessary resources and authority for project success; Project Schedule/Plans – a detailed specification of individual action steps required for project implementation; Client Consultation – communication, consultation and active listening to all impacted parties; Personnel – recruitment, selection and training of the necessary personnel for the project team; Technical Tasks – availability of the required technology and expertise to accomplish the specific technical action steps; Client Acceptance – the act of selling the final product to its ultimate intended users; Monitoring and Feedback – timely provision of comprehensive control information at each phase in the implementation process; Communication – the provision of an appropriate network and necessary data to all key actors in the project implementation; and Trouble Shooting – ability to handle unexpected crises and deviations from plan.

Over the years, a number of researchers, such as Cooke-Davies (2001) and Cleland and Gareis (2006) have concurred that these practices do ensure effective and successful project management (Ofori, 2013: 18).

It is evident from the above definitions and statements that project management is complex, in particular the monitoring and control with continuous demand on the time of the project team. This has led to the development of various tools for ensuring the project is on track such as the critical path methodologies, Gantt Chart and other computer-based techniques (Ofori, 2013: 18). Unfortunately, a dependence on these tools can only yield success if the project management team from the onset, is able to identify the critical success factors (CSF) at every phase of the project life cycle (Ofori, 2013: 18). By constantly enquiring whether the project

meets the needs of the client; whether the project has the support of management;

whether there is appropriate knowledge and skill to support the project and whether the project is solving the right problem, the team is able to identify the key variables that make for success or failure (Ofori, 2013: 18).

According to Ofori (2013: 18) who argues that generally, critical success factors (CSF) are a set of project variables or factors that are strongly correlated to project success and whose maximisation or minimisation, depending on whether they are favourable or unfavourable, will lead to project success. According to Rockart (1981), critical success factors are the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department or organisation (Ofori, 2013: 18). They are the few key areas where things must go right for the business to flourish. If results in these areas are not adequate, the organisation’s efforts for the period will be less than desired. Frese and Sauter (2003) conclude that generally: good planning, clear responsibility and accountability, schedule control as well as project leadership and governance and communications are key areas of successful projects (Ofori, 2013: 18). This means that a clear project plan, a plan for risk management, and the commitment and support from stakeholders are the critical success factors for project management.

Khang and Moe (2008) expand this further by recommending the sets of critical success factors (CSF) for the various phases of the project life cycle as indicated in Table 3.3 below (Ofori, 2013: 18).

Table: 3.3 Project critical success factors

Source: (Khang and Moe, 2008; Ofori, 2013: 18)

As referred to the ten critical success factors developed by Pinto and Slevin (1986), Pinto and Mantel (1990) cited by Abu Bakar et al. (2012: 6) suggest that “… these critical success factors (CSF) were found to be generalizable to a wide variety of project types and organisations,”. Their model is one of the most widely quoted lists of critical success factors (Muller and Turner, 2007; Abu Bakar et al., 2012: 6).

However, a single set of project success factors may not be suitable for all industries (Abu Bakar et al., 2012: 6). Liu and Walker (1998) cited by Abu Bakar et al. (2012: 6) suggest that as industries operate differently, “a set of critical success factors (CSF) may not be transferable from one project to another project…only generic areas can be identified and used as broad guidelines.”. This statement has some relevance to the South African residential development sector as each and every individual residential project is different from one another. Not one project is ever the same and each project comes with its own set of project variables that

possibly cause time and cost overruns, which at the end can sometimes turn, into legal battles, negatively impacting all persons involved, especially the client. All of this should be avoided at all costs by a professionally competent project manager to identify all critical aspects of the development project from inception to completion to ensure a successful residential development project is delivered.

A comprehensive review was conducted of the literature research on success factors of project management. Table 3.4 provides lists of the critical success factors developed in the various literatures (Abu Bakar et al., 2012: 6). The study conducted by Abu Bakar et al. (2012: 6) reveals how several researchers identified the factors that significantly determine project management success. Based on the frequency analysis, the critical success factors are prioritised as shown in Table 3.4 below (Abu Bakar et al., 2012: 7).

Table 3.4: Summary of literature review from various authors for project success

Source: (Bakar et al., 2012; Ofori, 2013)

Remark: “√ ” critical success factors that are determined by the authors either on a conceptual or empirical basis (Abu Bakar et al., 2012: 7).