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6
A.MetriBhimaraya
Projectmanagementinconstructionindustrytendstowardsbeingstrictly
reactiveinnature.Increasingtimeandcostoverruns,whichmayaffectupon
quality,arecommonplaceintheconstructionindustry.Forexample,inIndia,ason
September1999,446projectsinthecentralsectorwereonthemonitorofthe
ministryofstatisticsandprogrammeimplementationwiththetotalestimatedcost
ofRs.1,600,000million.Outof446projects,209projectshadreportedcost
overrunsand210projectshadreportedtimeoverrunswithrespecttotheoriginal
schedule.ThetotalcostofoverrunwasoftheorderofRs.456607million41.5%of
theoriginalcost)andtimeoverrunsrangedfrom1-189monthsoftheoriginal
schedule[10].Themainreasonsquotedforthedelayaredelaysincivilworks,land
acquisition,fundconstraints,delaysinawardofcontract
andslowprogress.
Constructionindustryischaracterizedbylowproductivity,fragmentation,divided
responsibilityandconflictingobjectives[6].Thecurrentcompetitivetendering
systemencouragesthecontractorstobidoncostsonly.Theabsenceofquality
focusinconstructionoftenresultsinrework,whichinvariablytakestheformof
changes,errors,andomissionsandasaresultproduceslotofwasteduetonon-
valueaddingactivities.Forexample,basedoncompilationofexistingdata,
Koskela(1992)reportedtheextentofwasteinUSA,thenon-conformancequality
costsas12percentofthetotalprojectcosts;poormaterialmanagementas10-12
percentoftotalprojectcosts;workingtimeusedfornon-valueaddingactivitieson
siteapproximately2/3oftotaltimeandlackofsafetyas6percentoftotalproject
costs.InSweden,excessconsumptionofmaterialsonsitereportedas10percent
onaverage[7].Abd.MajidandMcCaffer[1]havestudiedmorethan4000projects
allovertheworldincludingIndia,USAandUK.Theyreportedthatmaterials,
equipment
andlabourrelateddelaysarethemajorcausesofcontractors’
performancedelays.Theconstructionisalsoahighaccident-proneindustry.Going
byworldtrend,theaccidentrateinconstructionisabout3timestherateinthe
manufacturingsector[13].Toooften,thisindustryfailstomeettheneedsof
modernbusinessesthatmustbecompetitiveininternationalmarketsandrarely
providesbestvalueforclients.Studiesofconstructionpracticesindicatethatfirms
arelargelystrugglingbehindtheotherindustriesintheareasofquality
and
reliabledeliveries.Intheconstructionindustry,organisationsdonothavean
effectiveorganisationallearningmechanismthatcanbeusedtostimulatebest
practices.Withoutmeasures,anorganizationmaynotknowwhatandhowto
improveitsperformanceandcompetitiveness.Industryhasstrongbeliefthat
constructionissouniquethattherearenolessonstobelearnedfromothers.This
beliefofindustryprofessionalsandlackofacademicresearchonconstruction
qualitymanagementarethemajorbarrierstoslow-downtheadoptionofmodern
qualityprinciplesandtoolsinconstructionindustry.
