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Started by : Ujwal Chana, Project Lead, Polaris Software   02 05 2009 10:49:17 +0000
Industry : ConstructionFunctional Area : Project Management(Technology)
Activity:  1753 views;  last activity : 08 14 2012 11:08:41 +0000

Well, I know there are about millions of reasons for failure of construction project. But what is the prime reason for the failure. Lets us identify and discuss the causes of failure in a construction project and what safeguards a builder can put into place to reduce the risk of failure.

 
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1 2 3 4 5
1 Bad Management
2 Due to lack of two factors. 1- Decisions. 2- Money
3 Bad Management, Planning, Design & lack of support from Head office
4 Poor Planning or No Planning
5 Lack of communication and intra coordination.
6 Lack of Communication
7 Basic fundamentals are ignored
8 Lack of Planning
9 lata sharma
10 Unawareness of actual problem
11 Obsolete Job Design
12 Why do construction Project Fail?
13 Many factors together
14 By not selecting the right people for the right job
15 Inapproperiate machines and compromise on safety aspects
16 Improper supervision and timley audits
17 Success Criteria defined are Unrealistic...!!!!
18 Lack of proper Design & planning and its effective implimentation
19 Improper Planning, Design,Implementation , Estimate Below Rate Analysis .Lack of Support From HQ
20 Functional,Financial,Environmental reasons
21 Mismatch of Cash flow & Men - Material management
22 5 M-Factors
23 Absence of Accountability
24 Lack of Coordination and Understanding in Responsibilties
25 Lack of Communication and co-ordination
26 Impracticable target period
27 Poor Planning or No Planning
28 Lack of well configured Construction ERP
29 Many factors together
30 bad or unknowledge of right direction of management
31 MORE REASONS LIKE BAD MANGEMENT IN CLUDES
32 Fore see everything from Initiation to Closeout
33 Bad Management
34 IILL conceivement and lack in planning, foresightedness
35 Jnana Ranjan Das
36 non utilisation of latest technology in optimum way.
37 NOTE
38 Poor corrective actions
39 Poor planning, local factors
40 Lack of risk management & evalution of bottlenecks
41 Lack of risk management & evalution of bottlenecks
42 Lack of risk management & evalution of bottlenecks
43 Lack of risk management & evalution of bottlenecks
44 High Expectation on Low Returns
45 High Expectation on Low Returns
46 Lack of proper Design & planning and its effective implimentation
47 bad finance management & bad planning
48 construction projects fail becuase of the potical influence , inluence of locals,
49 Lack of creation of "Value"
50 Corruption
51 Ineffective Organizational Set Ups
52 Functional,Financial,Environmental faiulres
53 Fuctional,Financial and envoronmental failures
54 lack of Will
55 Fuctional,Financial and envoronmental failures
56 Proper Project Management ( i.e. Planning ,Scheduling & Controlling)& Auditing during Construction.
57 construction projects fail because of improper planning
58 Mismatch of Cash flow & Men - Material management
59 Small or Big Developers, all tend to diversion of Funds and get caught in vicious circle of Financial Trap.
60 Planning for execution and its regular update is not synch with targets expected from construction project.
61 Unawareness of actual problem
62 Lack of planning
63 "misuse of each and everything"
64 Greed of builders
65 Greed of builders
66 Bad Intention......
67 ENERGY BEHIND THE SYSTEM
68 TIME,COST &QUALITY IN PROJ. MGT.
69 ENERGY BEHIND THE SYSTEM
70 Bad policies
71 Bad policies
72 Bad policies
73 Poor tendering, planning and awarding contracts
74 Lack of Risk Analysis & its mitigation for the Contract
75 Why do construction project fails?
76 Long process to take decision
77 construction projects fails with more problems
78 POLITICS
79 Long process to take decision
80 I agree with you Rajiv and one more factor is that builders put money into new projects than completing the one in hand
81 Bad Management,Poor Coordination,Poor decision makings
82 Material Deficiencies
83 Change Managment
84 Project failure
85 Bidding
86 management & right decisions
87 Bad Management and Lack of coordination between depts
88 Bad Management
89 Govt. Policies
90 hi
91 Lack of Role Clearity
92 lack of awareness and education
93 Inadequate study at conceptual stage & improper estimate of ground condition
94 Prime reason for faliure of construction project.
95 failure of effective fund management
96 honesty is the best policy
97 Lack of Coordination & Communication
98 CLARITY OF SCOPE DURING BIDDING
99 Lack of Vision, Objective, Comittment towards the project by Management
100 WRONG BIDDING
101 Lack of self interest in Project
102 Placement of Improper officials / supervising authorities at Sr. level
103 DUE MANAGEMENT
104 Non clarity of project's objective.

Bad Management

idea posted by Ujwal Chana Project Lead, Polaris Software

What I feel is that, the prime reason for the failure of the construction project is bad management. Poor management can shoot up the cost be it material or labour and the contractor has to bear the additional charges.
This is what I feel is the prime reason for the failure of any construction project.

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 11 13 2011 07:40:20 +0000

I am not sure are we going to find scapegoat "Management " or try finding a root cause? my perception each company gets panicky when you speak about good configured internal control system thru a Good COnstruction ERP. Its not the management its people working in projects gets scared of loosing there"know All " supremacy attitude. I have a lot eterprenure and Owner who leaves to senior management for ERP implementation and finaly the to go forward with ERP or Configuring by so called Generals leads to failure of internal control system

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 11 13 2009 11:15:06 +0000

Management is always under constraint of money they have to be cautious but the their timely decision can be influenced by proper risk identification and mitigation processes. I have a failed project has been revived by team of "Management" and supervisors of the same project just by following a simple sytem of alerts on the impeding issues ( outstanding, quality and cost of not taking decision.

According to me lack of a good congiured system ocnfigured system everybody follows the system no tweaking by management will!!

Add your argument:

Due to lack of two factors. 1- Decisions. 2- Money

idea posted by M.P. Srivastava Manager Project, Jaipuria Group

1- Decisions: If decisions are not taken fast, project will lead to failure.

2- Money (Fund) : If Fund is timly not provided, project will fail.

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by N.Sreenivasa Rao, Construction Management, Central Public Works Department  | 07 11 2010 09:45:22 +0000

The main reason for  the failure of projects are due to

(1) Improper prior planning-

    (a) Incorrect estimates

    (b)  Disproportionate Budget provisions

    (c) Improper Architectuaral and Structural designs( which may be critical for the given time)

(2) Failure in post planning

 (a) No team spirit in working team

(c) Not providing of men,material and finance as required to accomplish the task

(4) Escalation of price in materials and labour( In long term projects)

(5) Not reviewing the project management time to time and reallocation of funds and to change the critical path.

(6) Frequent changes/transfer/removal of the middle management staff.

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by Devarajan Venkataraman, Construction-Heavy, DLF  | 08 27 2009 09:59:16 +0000

Mr. Jigresh is right. Non availability of cash at the right time due to improper planning in the beginning is the main reason for failure of any Construction Project.

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by vijayaragavan , Cad designer, CADS INDIA pvt  | 06 11 2009 02:09:17 +0000

Money flow makes a key role in construction industry, proper money flow with good decision to make the plan in correct direction help the project to complete in success

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Bad Management, Planning, Design & lack of support from Head office

idea posted by Kevin Muddell Head/VP/GM-Recruitment, CDC Recruitment Ltd

They normally fail due to bad management & planning, after over 30 years in this Industry it amazes me why when projects fall behind, material is late, sub-contractors do not get paid on time, design does not work, why we always moan about what if !. At the end of the day if you are project managing anything you should take ownership and get on with the task before you & tackle the problems and overcome, but this needs to be a team work process and that is normally not the case, surely we should get things right nowadays.

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by lata sharma, Interior Designer, self employed  | 12 04 2011 11:21:35 +0000

I have read almost all the post and at the end all are coming to one conclusion, that is 'bad management and lack of planing'. But we forget that like in corporate management an equal importance is given to Intelligence as well as the emotional quotient which makes a perfect package to work for any strategy. The food we love the most is the food cooked by Mother. We are missing this quotient in this industry. The Construction based on 'Vastushastra' principles gives the complete package of Pre and Post construction. It not only gives fine solutions for construction technique but also takes care of the mental and the physical health of the people occupying it.It gives a positive direction to destiny which guide us to follow perfect path to reach our goal in time. Apart it provides the total solution on "GREEN BUILDING' and hence reducing the construction and operational cost of a project. The orientation and the design based on Vastu has the total Thermal and Visual Comfort in it. Our traditional techniques are very rich and valuable, let us make a fine fusion of it with the modern systems to achieve the BEST results.

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 11 16 2011 11:12:24 +0000

Dear mustafa you hv excellent Idea and philosophy is very right but How do you enforce this without properly configured ERP for constructionproject management where risks are obvious with bad handling of resources bad decesionon risk mitigation?? Organisation should invest money in ConstructionERP

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 11 16 2011 11:11:41 +0000

Dear mustafa you hv excellent Idea and philosophy is very right but How do you enforce this without properly configured ERP for constructionproject management where risks are obvious with bad handling of resources bad decesionon risk mitigation?? Organisation should invest money in ConstructionERP

Add your argument:

Poor Planning or No Planning

idea posted by Tharakaraman Janaarthanan CEO/MD/Director, FaasTrackk

Poor planning by not taking into account risks involved in projects, sequential transmittal of drawings, expected arrival of materials, poor controlling of delayed activities and cost over run activities, poor project review and poor team development or no development.

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by SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 07 21 2010 15:46:06 +0000

I support for poor planning or no planning.

Planning is the key to success of the project, then whether it is for resources/material/finance.

It is the major cause due to which project fails.

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by Amit Vakharia, VP-Projects, Ashar Realty Pvt Ltd  | 10 29 2009 16:03:35 +0000

Its interesting that the " Poor Planning" happens to be the least reasons of Failure.  From the onset of the project conceived, all that goes into the project is nothing but planning ....alll the way to the day you hand over the keys to the Owner. You plan you next scope of work, you plan your holidays/working days, plan your resource team, plan your requirements, plan..plan plan. If planned right, there shall always almost be a BACK UP plan (Plan B) incase your Plan A does not materilize.

I believe poor planning is the most vital reason of Project Failures. And this is true for all Industries.

Amit.

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by Srinivas S.Mantrala, PMP, Executive Engineer, A.P.S.Police Housing Corporation  | 05 20 2009 14:16:37 +0000

People are not aware of the best results we get when we properly plan for the project. Every one wants to jump into the execution and do it without planning which they strongly feel not necessary would realise later when the project is blasted. In the next project they would the same mistake of not do any planning. This is happening in most of our Indian Projects.

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Lack of communication and intra coordination.

idea posted by Ashish Gupta Planning, Punj Lloyd Limited

Most of construction projects fail mainly due to bad or lack communication, resulting, we could not be able to maintain the schedule and cashflows, now these days too mach overheads occur during the construction and it increase time to time when we could not maintain our schedule resulting..

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by Nittoor Jayaram Suresh, Sr.Project Manager, DHV India Pvt. Ltd  | 03 01 2009 18:11:19 +0000

If only there were a sound database region -wise , on constrution materials both quantative and qualitative in nature,the job of civil engineer would be easier and accurate.

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by SRINIVAS CHADA, Consultant, STRATEGIC PLANNING & COST ENGINEERS , MUMBAI  | 02 11 2009 08:18:19 +0000

(1) Lack of Practical Project Execution Plans

(2) Bad Monitoring & Co-Ordination

(3) Absence of Timely Corrective Actions

These are fundamental causes , which evolve other areas of concern and cascades the project into FAILURE

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by Kevin Muddell, Head/VP/GM-Recruitment, CDC Recruitment Ltd  | 02 10 2009 08:26:22 +0000

Anyone running a Project at project manager level should and must be very commercially astute as well as a good manager & planner, most are not so we fail everytime !!!

Add your argument:

Lack of Communication

idea posted by Nand Jha Construction-Heavy, Sobha Developers

Lack of communication among various parties involved in a project leads to the failure of any project. From the beginning to the end. Communication has to do a lot with unsuccessful projects.

I have created an Idea Contest " Causes for poor communication in construction industry?" do participate and Share your views there...

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by ABHIJIT KULKARNI, Project Manager, BNP Paribas  | 07 11 2010 11:08:58 +0000

i agree to this as there is no proper communication at various levels, it bound to fail.... more over its a greed to earn more and give less is one of the prime cause as well..

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 01 17 2010 04:16:34 +0000

Communication is important no doubt. But mere communication without focus on changes in course or planned execution mehtods and delays on corrective actions are equally imporetant.

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by srinivasraj , Construction-General Building, maytas  | 02 09 2009 07:15:21 +0000

I think this is the 1st thing to be pointed out LACK OF COMMUNICATION & CO-ORDINTION which plays an important role, where superior's top management fail to do so, they don't let know each & every point to the lowest engg/supervisor, or share the information they knew, nor they teach their knowledge what to do and what not to do..they wanted just to complete the work so that they might not fail in the project as a HEAD but the end result is failure.... with which again the lower management people get bursting and r fired out...in some cases

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Basic fundamentals are ignored

idea posted by sreepada_vinaya Construction-Construction Management, EQUIS INDIA

1. Inadequate information at teh time of coceptualization of projects.

2. Improper planning.

3. Demand for speedy completion of project.

4. So, cost escalation due to wasteage of materials.

5. Frequent changes in design.

6. Trying to parallely complete the activities rather sequenceing them.

7. Delay in decision making due to many channels & heads for it..

 

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by Suresh Kumar Sharma, Commercial Head, Gati Infrastructure Ltd  | 10 12 2009 10:55:45 +0000

Assessment of each activity at the beginning is judged inappropriately and the whole planning get disturbed when quantity of work gets escalated.  Safety is another aspects ignored which results low confidence of manpower.

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by Nittoor Jayaram Suresh, Sr.Project Manager, DHV India Pvt. Ltd  | 03 07 2009 16:13:50 +0000

Good assimilation of ideas. But but the list for failure is endless and more often unique to the project. Tact, coupled with proper usage of lessons learnt from previous similar projects could be helpful in minimising if not eliminate most of the causes of failure, though there is no foolproof solutions.

Add your argument:

Lack of Planning

idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

Due to the lack of proper planning.

The planning of the projects with optimum utilization of resources(man power, Materials,Machinary,Movements including Money) are the prime factors for the success of the construction project. The Main Construction Program is the Key instrument for the achieving the objective. Even if the resources are there in abundendence, the project execution may collapse when timely release of the resources is not ensured.For this release of the resources four components that are man power, Materials,Machinary Money to be planned as follows by the Planning Engineer.

1.Work Flow Schedule(Gantt Chart for each item of the BOQ)

2.Manpower Deployment schedule

3.Equipment Deployment Schedule

4. Material Procurement schedule

5. Cash Flow Chart

These datas should be discussed anong the top management in Project team and be approved before the project start for implementation.The communication of the above data amongst the other members of the project staff Procurement -in-charge, Project Manager, Equipment in - charge,senior engineers is essential for the effective implementation.Periodical review of the these scedules will ensure correct deployment of all the resources and failure of the constuction projects can be avoided.

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by attar singh, Dy.G M, Adani Infrastructure and Developers Pvt. Ltd.(adani group)  | 09 24 2009 09:49:29 +0000

all the factors given affect the project .Inaddition the is a main fator i.e. good timely coordination also affect the project.

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lata sharma

idea posted by lata sharma Interior Designer, self employed

Time management and the right recruitment are the key factor which are never taken care of. To work in a discipline manner is very crucial for any management, which is highly lacking in construction industries. Proper chain of work has to be made, implemented and reported to seniors in time.

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by Yash Singh, Coresspondent, Star  | 04 13 2009 05:58:07 +0000

I definitely agree with lata ji that time managenment is the biggest drawback in the construction industry.The work is not completed in the allocated time because of which the work keeps on delaying and in the end in order to hurry up things quality of the work is effected.

what do you say?

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Unawareness of actual problem

idea posted by Mukesh Jhedu MBA/PGDM student, Christ University Institute of Management, Bangalore
In any construction project, it is very important to find the actual problem. Sometimes silly and simple problems lead to frustration which again lead to bad management and wrong decisions. It is very true that most of the tricky problems can be very easily solved if you know the exact problem. One example is, if you go to the doctor he will diagnose you properly and will give you the right medicine. Unless the sickness is known there is no way that he can cure your sickness. There are lots and lots of problems of any nature that come before us in the construction projects and if we are able to find those correctly there are many ways to solve those.
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by Mukesh Jhedu, MBA/PGDM student, Christ University Institute of Management, Bangalore  | 02 02 2010 14:27:23 +0000

I think your perspective is very important. Right forecasting is one of the key factors to success. If we can forecast properly about the problems that we are going to face, their solutions can be found at some ease.

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by Esha Johar, Risk Analyst, Irevna  | 02 02 2010 12:31:43 +0000

I agree with you and like to throw some light to it even though I don't belong to construction sector. The construction people are not forecasting the project properly that is the main reason for failure. This because of lack of awareness and scope of the industry/sector. Since they are unaware of the problem they predict it wrongly and realize it only on the half way of the project which leads to failure.

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Obsolete Job Design

idea posted by Tauqeer Ahmad Project Execution Planning, Apex, N.Delhi

The Job Design of Indian as well as some of other countries are obsolete. The techniques are changing rapidly but the system especially govt. sectors are having condition of their experiences (10,15,20 years) . There is no any test of the compatibility of the candidate with the modern sophisticated softwares which are capable of doing the things faster from management as well as operation aspect of construction. There is no any place for the persons equiped with management degree and softwares rather the obsolete system of contracts which is just the result of cut, copy & paste during preparation of condition of contract from  long time is being used where it is mandatory to have experience of 5,10,15,20 years of experiences as if they are looking for skilled labours rather than intelligent innovative managers. The present system is just looking for quantity of experiences rather that quality of experience. "A person with three years experience with Management Degree and management softwares" has no advantage over "the person having 5-10 years experience without modern equiped skills", at all. Also there is no any system of test of candidates for the post and if it is ; It is based on old obsolete system which is just the test of memory and no more intelligence. Thats why the contractors are being guided and compelled by the persons who has worst kind of long experience because the system is merely looking for the length of experience rather than quality of experience. Corruption is second main reason for the failure of Project or Projects having bad quality.

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by Mallaya Pandravada, GM-Project , GSSInfraTech Pvt Ltd  | 02 11 2009 08:36:20 +0000

The job design should also be based on relevant experience and periodicacal evaluation of interviewing the Engineers for their competance in the faculties of technical Knowledge,managerial skills and moral conduct.

Add your argument:

Why do construction Project Fail?

idea posted by SUBHASH CHAND VERMA SBU/Profit Center Head, HCC LTD

A lot of things which need proper attention right from bidding to the completion of project.Now the construcion industries is facing neck to neck competition in which all the firms are bidding at least 20-30% lower cost than the est imateting cost shown in DPRs.Reason is the thought that we will recover the remaining money either byarbitration with the help of consultant or showing additional works in construction period .Oviously ,ihave seen failure of this ideology.When construction started,the bad starting stratgy whichcontains poor selection of right equipment,slow mobilisation and site establishment,slow posting of correct &experienced staff leading alot of extra  expenditure on the repitition .During the construction process,wrong budgeting create alot of inconvenience during project & cost extra cost which leads the falure.At last egos of bosses& lack fof comunication colapses the project ultimately.Lot of more points are also there in the line which needs more discussion.

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by ahamed Nadeem, Project Manager  | 02 09 2009 13:56:03 +0000

Fully agreed with u... endusers have become more demanding and expecting value for mony thus its almost impossible to generate profits by bidding neck to neck.....

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Many factors together

idea posted by ahamed Nadeem Project Manager

many factors together will seriously  results in failure.... To b simple a project is nothing but EPC ie engineering, procurement and constructions proper implementation of these will avoid the failure

to eloborate while engineering ie design and development local influence like availability of materials, technology for execution n other related resources shoul b considerd(Climatic Condotions shouldnt b ignored) also freezing the scope of the project with stakegholder is very important to minimise changes(keep in mind changes r unavoidable in any project) people say it as value engineering but it is only 'engineering' giev sufficient time for design n devolopment

while procurement its important to bring in right service providers for procurement n construction a thorough evaluation and analysis is a must bfr finalizing them. go for specialised contractors for special works...assignment of contractors/subcontractors/suppliers at an advance stage is very important.... also applying very logical contractual classes will avoid runnaway or poor performances by contractors.

always keep escalation clause to release the burden on contractors and as an employer keep contingencies budget to cope up with variations

construction is phase where most of the projects come to a failure stage,,, lack of co-ordination b/n contractors, consultants , employer, PMC's,,, unskilled manpower outdated equipments,,, incompetent  n corrupt engineers n managers r other major reasons for failure. Safety Quality n staturty compliances r the areas if neglected will have serious consequences on projects....

in complex projects its important to manage changes and carryout risk analysys frequently.

If v compare construction industry of Gulf with India v need to mechanize our construction, upgrade the manpower skills, effective implementation of management fundas n all above corruption is a biggest threat to the industry

 

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by Anjali Bhatia, Construction-Heavy, Sobha Developers  | 04 03 2009 08:11:05 +0000

" IF YOU FAIL TO PLAN, YOU PLAN TO FAIL "

What a quote Mr. Srinath. you are absolutely right that there are many factors for the failure of a project or should i say for the project to be unsuccessful.In simple terms, it is because of poor business practices.  Many construction projects are started by project managers without specific schooling in running project because of which they are not able to execute it properly and there are other factors too which have been mentioned by Mr. Srinath

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by Pragya Kothari, Construction-Heavy, DLF  | 03 25 2009 06:08:27 +0000

I admire the thinking of Mr. srinath amd the way he has explained his point is simply terrific.

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by SRINATH ORN - MRICS, Vice President - Projects, Pallazio Hotels & Leisure Ltd  | 03 03 2009 04:05:05 +0000

Firstly, i would say projects doesn't fail.  I would call as unsuccessful.  The failed project means its completely gone from the books. The unsuccessful projects are completed at his own course which doesn't cater to the objective of the project when its required.  but it's completed at its own pace.  As rightly said many factors are the causes for not being successful, be it poor planning, bad management, dont have right resources, most of the projects are not successful due to the politics played which deviates it from meeting the objectives.  The famous quote here is as below ;

" IF YOU FAIL TO PLAN, YOU PLAN TO FAIL " 

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By not selecting the right people for the right job

idea posted by Khalil Qureshi Civil Engineer-Other, IGBC AP, Free Lancer

If the project manger is not of a go-getter attitude then probably he will not be able to get the best out of his team. If the finances are not taken proper care of as in the case of SATYAM the not only the project but the entire company can be doomed.So, getting the right people in the right place is important.

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Inapproperiate machines and compromise on safety aspects

idea posted by Suresh Kumar Sharma Commercial Head, Gati Infrastructure Ltd
Suresh Sharma,Gati Infrastructure Ltd.
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by Suresh Kumar Sharma, Commercial Head, Gati Infrastructure Ltd  | 10 13 2009 10:03:47 +0000

Heavy construction is machine oriented not labour oriented ,having quality and with required configuration of machine helps lot to achieve construction schedule. I am personally experiencing that project suffers lot because of non availability of machine and  poor maintenance of machines. Skilled operates are also essential to get optimum output from deployed machineries.

Good quality calibrated machines for Drilling,stone Crushing,concrete mixing,concrete placing makes lot of sense in fast track projects. Good quality machines output is always of good quality structure in defined time limit.

Safety is normally taken for granted in India and we don't value to human life. In my 4 years hydro power projects ,I haven't heared that any Hydro power projects is constructed without multiple fatal accidents.Each accident means whole project is gone into repairing workshop and situation is reconciled and restarted. 

 

 

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Improper supervision and timley audits

idea posted by Satwinder Singh Program Manager, Confidential

There should be an Audit department responsible for planning and progress..>>

  • They should supervise the material and changes made frequently..
  • They should be responsible for funding issues and hence the communication will be reduced..

 

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Success Criteria defined are Unrealistic...!!!!

idea posted by M NITIN SHENOY, PMP, IPMA-D, CEng MICE Manager

Success criteria defined varies from one project to another. For example success criteria can be defined as follows :

  1. Project Cost not to exceed : Rs 50 Cr in Rs 55 Cr project
  2. Project to be completed wihthin scheduled target dates
  3. Gross Margin  or Profit  to be a min. of 10%
  4. Defined intermediate milestones to be completed on set target dates
  5. Stated product quality standards to be maintained
  6. Zero accident to be ensured
  7. Minimum Staff Productivity of Rs 10 Lakh/ month
  8. Avg Working Captical to be within target
  9. Outstandings to be not more than a months o/s.
  10. No legal implications or issues

Even if any of above set success criteria is unrealistic and not in consensus with the stakeholders, then projects perfromance may be misled to be a failure.

Not defining realistic success criteria itself is a major contributor to declare project as failure...!!!

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by srinivas kotteti, MANAGER (PRODUCT SUPPORT)  | 08 07 2009 23:50:06 +0000

VERY  GOOD 

THANKS  FOR  UR  VALUBLE   ANSWER

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Lack of proper Design & planning and its effective implimentation

idea posted by Bellala Gopinatha Rao Assistant General Manager, Promax Management Consultants

In my view proper designing , planning and its effective implimentation is very very important in a construction project. Lack of these will leads to the failure.

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by SRINATH ORN - MRICS, Vice President - Projects, Pallazio Hotels & Leisure Ltd  | 03 03 2009 04:16:07 +0000

Yes design is the first stage of any project, This is main criteria, without which you cannot identify what you wish to build.  Hence designing and planning should be first finalised before start of the project.  But many project commences without finalising the scope( design) and time(planning). both these will have direct impact on the cost of the project. 

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Improper Planning, Design,Implementation , Estimate Below Rate Analysis .Lack of Support From HQ

idea posted by Suraj Sinha Propritor, SRS Structure

Paper Perfect Planning,Implementation & Estimate.No importance given to Site Problems.These are the main reasons.In Detail generally Project Planning is done By Engineers & Decided by Non Engineers ,In implimentation Site persons are given neck to neck Target.But there are so many festivals when there is labour Shortage.The BOQ is not as per Rate Analysis.Vendor Payment will be indifinitely Delayed.If all these will combined then the project will Fail.

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by Suraj Sinha, Propritor, SRS Structure  | 02 14 2009 19:10:28 +0000

Honesty at all levels ie at planning,implimentation , Workable Rate,possible time target , manpower Selection & feeling of Ownership in site stalf is required for sucessful Project Complition.If these are absent then quality & Project would be  Affected.

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Functional,Financial,Environmental reasons

idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

The criteria of the failure of the project and reasons as I experienced are,

A Functional Failure: A failed Project not serving the purpose it is intended for due to Substandard Materials and workmanship in water proofing materials of Residential building projects

Financial Failure Unduely escalated Final Caste of the project beyond the Standard deviation of 10% due to Unforseen foundation conditions due to insufficient site investigation data.

Executional Failure Failed project due to lop sided priorities in completion of  sub projects ,for instance completion of Sewerline package without even finalization of location for Sewage treatment Plant for town ship.

Operational FailureLocal resistance from political parties, delayed funds flow for the project

Miscellaneous Failures  Projects fail when do not take environmental factors into account.

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Mismatch of Cash flow & Men - Material management

idea posted by chandresh Makhija Executive Director-Construction & Project Management

Usually in any project estimated cash flow is disrupted due to mismanagement of men &  material required on site vis-a-vis the projected completion time of each activity, hence resulting in chaos and  failure of a project either in terms of cost, time or quality benchmarks. 

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by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 08 07 2010 11:25:53 +0000

when I support this also like add a few words.

Benchmark we set in because Project goal requires this along with resources bench mark productivity while executing project we hardly concern or watchful about this resources productivity and dynamically we do not shift to Plan B or Plan C while Plan A is not leading to optimum Bench mark or how compromise will be allowed in terms of deliverable.

Plan>>Resource>>Goal cycle optimisation failur means project failure

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5 M-Factors

idea posted by ER. PRASENJIT ROY Manager-Planning

Broadly and in simplified way , the basic reason of failure and the success of any project depend on 5nos. M-factors, which are as follows:-

 1.        Money

2.        Material

3.        Manpower

4.        Machinery and lastly,

5.        Management

 All the above 5 factors are co related, lake of any single factor the project can not be success.

Planning, Scheduling, Budgeting, Coordination, mismanagement etc. comes mainly under the heading of Management. So, whenever anybody thinks about the Failure/success of any project, we will ultimately get these 5 heads not anything else.

 

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Absence of Accountability

idea posted by Mohammad Bakhsh Consultant(Civil), Rail Vikas Nigam Limited
I find no other solid reasons except absence of accountability.The equivocal instructions issued every time when superior officials went for visits or inspections.
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by Mohammad Bakhsh, Consultant(Civil), Rail Vikas Nigam Limited  | 09 07 2010 03:38:50 +0000

A Good Management covers the project against failure.But what are the ingredients making up for or mark up.The core mark up is Accountability,if it is not ensured will leave the trances leading to failure of the project.

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by Mohammad Bakhsh, Consultant(Civil), Rail Vikas Nigam Limited  | 08 05 2010 03:06:25 +0000

Having brows through all the ideas,i find one prominent word missing is "accountability". The slackness in management seeped in the sub consciousness because of long and sick rope of  administration. The persons made responsible for executing the project are well aware of the consequences they may have to face.

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Lack of Coordination and Understanding in Responsibilties

idea posted by Irfan Hi Projects Coordinator, Buhaleeba Contracting

Major reason for failure of project is lack of understanding of responsibilities by Consultant or the contractor.

Major Consultants just want to release themselves out of any liabilities during execution of the project and even contract supports them to full extent. But instead of enforcing themselves as supreme authority, they have to understand that every contractor is a partner to the project with financial interests as well. There exists blame game for every disputes existing in the project. And always it is the contractor who fails in this unless he decides to go to arbitration.

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by prafull saxena, Purchase/Vendor Development Manager, simplex infrastructures limited  | 02 08 2009 15:09:55 +0000

In my opinion the main reason is the coordination which must be at every levels is not now failing thats why the staff working at low levels who faces daily problems and gives any idea how to be take off that solution but avoided by seniors at upper levels.Thats the main reason that Seniors does not want to think over that ideas becz they think that all is that they are right in all means but thats the junior staff has to face and yes the company has to face loss and the project cost go on higher where if idea of a junior level staff is to be heard who is working daily at the same place can give good solution for those who are sitting in high levels and away from the site work places

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Lack of Communication and co-ordination

idea posted by muqtar khan Architect

Due  to lack  of  Communication and Co-ordination  between the people working in the project is very necessary this are  the main two main reasons  for projects  to fail.

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Impracticable target period

idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd
Many projects ahve given impracticable time period. The time limit always not based on ground realities as a result project fails
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by Vidhu Dar, CEO/MD/Director, Shiva's Retreat  | 01 26 2010 19:32:06 +0000

the facts taken into considaration are not based on ground realities but are politicaly or required by financiars to consider it viable.

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Poor Planning or No Planning

idea posted by Tharakaraman Janaarthanan CEO/MD/Director, FaasTrackk

Poor planning by not taking into account risks involved in projects, sequential transmittal of drawings, expected arrival of materials, poor controlling of delayed activities and cost over run activities, poor project review and poor team development or no development.

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by SHIVENDRA KUMAR JHA, ASSOCIATE DIRECTOR, MEINHARDT SINGAPORE PTE LIMITED  | 06 08 2009 12:28:30 +0000

Planning should be done for mitigation of the risk involved on the project.

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Lack of well configured Construction ERP

idea posted by Prashanta Bhaumik Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd

Timely alert system for deviation from Planned objectives from good configured ERP system helps in identifying cause of failure from  construction projects. Depending identifieble risks cause vary form project to project.

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Many factors together

idea posted by ahamed Nadeem Project Manager

many factors together will seriously  results in failure.... To b simple a project is nothing but EPC ie engineering, procurement and constructions proper implementation of these will avoid the failure

to eloborate while engineering ie design and development local influence like availability of materials, technology for execution n other related resources shoul b considerd(Climatic Condotions shouldnt b ignored) also freezing the scope of the project with stakegholder is very important to minimise changes(keep in mind changes r unavoidable in any project) people say it as value engineering but it is only 'engineering' giev sufficient time for design n devolopment

while procurement its important to bring in right service providers for procurement n construction a thorough evaluation and analysis is a must bfr finalizing them. go for specialised contractors for special works...assignment of contractors/subcontractors/suppliers at an advance stage is very important.... also applying very logical contractual classes will avoid runnaway or poor performances by contractors.

always keep escalation clause to release the burden on contractors and as an employer keep contingencies budget to cope up with variations

construction is phase where most of the projects come to a failure stage,,, lack of co-ordination b/n contractors, consultants , employer, PMC's,,, unskilled manpower outdated equipments,,, incompetent  n corrupt engineers n managers r other major reasons for failure. Safety Quality n staturty compliances r the areas if neglected will have serious consequences on projects....

in complex projects its important to manage changes and carryout risk analysys frequently.

If v compare construction industry of Gulf with India v need to mechanize our construction, upgrade the manpower skills, effective implementation of management fundas n all above corruption is a biggest threat to the industry

 

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bad or unknowledge of right direction of management

idea posted by Jignesh Mistri Product Manager (CIVIL), Technical Head, Eengineers at ACE Infoway Pvt. Ltd.

In  most of cases of construction will be fail because of unknowledge of right ideas for cons. management. Also use of letest technology & experienced person on upper management position is effectable fector.Pre fix planning is best fector for real management.

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MORE REASONS LIKE BAD MANGEMENT IN CLUDES

idea posted by srinivas kotteti MANAGER (PRODUCT SUPPORT)

ITS  FAILS   REALLY  DUE  TO  MORE  PROBLES  LABOUR  PROBLEM, BAD MANAGEMENT, WORK CANCELLATION, TAKE  LEAVE  , ENGINEERS  ESCAPING, INTER GOVERNAMENTAL  AFFIARS, PENDING,MATERIALS PENDING AND  MOREPROBLEMS INCLUDES  BAD CONTRACTS AND  LOW  INVOICE SUPPLY LATE  OF  MATRIALS  POOR QUALITY  OF  VARIOUS  RAW MATERIALS........AND MORE

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by srinivas kotteti, MANAGER (PRODUCT SUPPORT)  | 08 07 2009 23:53:44 +0000

 INVOICE, MATERIALS, SUBCONTRACTS  ,LAGY PROJECT MANAGEMENT AND GOVERNMENT OFFICIALS SOMETHING  LAZY QUALITY INPECTORS   ARE  90%  FOR  PROJECT FAILS

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Fore see everything from Initiation to Closeout

idea posted by Tharakaraman Janaarthanan CEO/MD/Director, FaasTrackk
  • First of all confirm if the project is viable
  • If viable, prepare a comprehensive project plan including the complete scope, resources, documents, risks and change orders forecast.
  • Review the periodically and revise accordingly
  • Review the project status and implement all corrective actions required.
  • Disseminate project status to project stake holders.
  • Prepare punch list, complete, hand over and close the project.
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Bad Management

idea posted by Tharakaraman Janaarthanan CEO/MD/Director, FaasTrackk
  • First of all confirm if the project is viable
  • If viable, prepare a comprehensive project plan including the complete scope, resources, documents, risks and change orders forecast.
  • Review the periodically and revise accordingly
  • Review the project status and implement all corrective actions required.
  • Disseminate project status to project stake holders.
  • Prepare punch list, complete, hand over and close the project.
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    IILL conceivement and lack in planning, foresightedness

    idea posted by Commander Udaybir Yadav Head/VP/GM- Purchase/Material Mgmt/Admin/security/facility, Raheja Developers Ltd

    The factors such as ill conceivement of project, lack of planning and foresightedness are major causes in failure of any project whatsoever it may be. Money, authority, resources bla..bla... all are encompassed in the above headings. If we conceive any project it has to be supported by all pros and cons including mony in fact this is first part. No project if conceived well can be a failure. It is my gurantee. While conceiving we have to forsee change of global/national policies, recession, boom and any such factors.

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    Jnana Ranjan Das

    idea posted by Jnana Ranjan Das Construction high voltage transmission projects, UG Ltd
    The another cause of failure of a project may be cetralisation of decesion making in a management.Only accountability may not suffice to the very cause of failure of the project.
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    non utilisation of latest technology in optimum way.

    idea posted by Vidhu Dar CEO/MD/Director, Shiva's Retreat

    using cranes or manual operations in very high constructions such as towers instead of high power concreat pumps to take material even above 150 mtrs.and many more available now.

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    idea posted by HEMANTH KUMAR Construction-Residential, RFC

    Well, as far i know, lack of communication is the main reason. Because the communication gap between the seniors and juniors, the working people like masons & labour, they dont know what they have to do? the staff who are at site will lead the work, they will plan the daily work advance. Then the seniors or the managers will came over there and say it is wrong? If the both people plan together then no mistake willbe done. I am not saying seniors are wrong. Sometimes seniors and some times juniors both will do mistakes. so it is neccessary that communication is compolsury. If communication is good there will be no problem. Not only communication, management, finance etc.. also be there. But mainly there should be no communication gap

    Thank you 

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    Poor corrective actions

    idea posted by Nittoor Jayaram Suresh Sr.Project Manager, DHV India Pvt. Ltd

    A project can be to a large extent salvaged at any point of time on its course,by proper application of project managerial skills by the Project Manager.

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    Poor planning, local factors

    idea posted by Anil Tadmari Head/VP/GM-Corporate Planning/Strategy, MACCAFERRI

    Poor planning interms of project planning, execution & not considering the influence of local politics & factors into project cost & time may lead to delays, cost escalation & failure of projects

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    Lack of risk management & evalution of bottlenecks

    idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd
    many project are estimated very casually taking things granted. A time frame is generally made considering volume of work & ignoring ground constraints. That is why most projects fails to be completed on time.
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    Lack of risk management & evalution of bottlenecks

    idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd
    many project are estimated very casually taking things granted. A time frame is generally made considering volume of work & ignoring ground constraints. That is why most projects fails to be completed on time.
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    Lack of risk management & evalution of bottlenecks

    idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd
    many project are estimated very casually taking things granted. A time frame is generally made considering volume of work & ignoring ground constraints. That is why most projects fails to be completed on time.
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    Lack of risk management & evalution of bottlenecks

    idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd
    many project are estimated very casually taking things granted. A time frame is generally made considering volume of work & ignoring ground constraints. That is why most projects fails to be completed on time.
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    High Expectation on Low Returns

    idea posted by dsshatish Material Mgmt Executive/Manager, NCCL

    In the Initial Stage Every one like to keep Long Step to reach faster but fails to plan to success instead plans to fail. 

    A) For example to maintain the secrecy of the company they fail to discuss and analyse the upcoming project in louder.

    B) To Competate others trying to undercut the rates by expecting to adjust in future.  Negatively mrket becomes instable where they have to face huge fall in Labor Cost, Materials, Transportation & Hire Charges etc.

    C) Failing to Budget the exact cost on priority basis. 

    D) Excess Man Power.  To face the Clinets Pressure appointing a Group with out estimating their abilities.  Appointing on base of Certificates where field experience is required.

    E)  Investing on Improper Machineries instead hire the machines where the setup for maintenance is not available.  After procuring Service and Spares are not available in time etc.

    F) Major Functional Areas like Tendering, Planning, Q S, Finance, Procurement , Stores, Time Office are the Heart of company.  But this was treated partially.  For Example: Expecting that If Finance is Controlled all the other will be in control.  But in certain stage we may pay premium and extract the job there the company fails for that they suffer in future.

    G)       

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    High Expectation on Low Returns

    idea posted by dsshatish Material Mgmt Executive/Manager, NCCL

    In the Initial Stage Every one like to keep Long Step to reach faster but fails to plan to success instead plans to fail. 

    A) For example to maintain the secrecy of the company they fail to discuss and analyse the upcoming project in louder.

    B) To Competate others trying to undercut the rates by expecting to adjust in future.  Negatively mrket becomes instable where they have to face huge fall in Labor Cost, Materials, Transportation & Hire Charges etc.

    C) Failing to Budget the exact cost on priority basis. 

    D) Excess Man Power.  To face the Clinets Pressure appointing a Group with out estimating their abilities.  Appointing on base of Certificates where field experience is required.

    E)  Investing on Improper Machineries instead hire the machines where the setup for maintenance is not available.  After procuring Service and Spares are not available in time etc.

    F) Major Functional Areas like Tendering, Planning, Q S, Finance, Procurement , Stores, Time Office are the Heart of company.  But this was treated partially.  For Example: Expecting that If Finance is Controlled all the other will be in control.  But in certain stage we may pay premium and extract the job there the company fails for that they suffer in future.

    G)       

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    Lack of proper Design & planning and its effective implimentation

    idea posted by Bellala Gopinatha Rao Assistant General Manager, Promax Management Consultants

    In my view proper designing , planning and its effective implimentation is very very important in a construction project. Lack of these will leads to the failure.

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    bad finance management & bad planning

    idea posted by imran usman khan Construction-Construction Management, ekta world
    imran khan GM projects
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    construction projects fail becuase of the potical influence , inluence of locals,

    idea posted by devireddy project management, Power

    Normally construction projects fail becuase of the potical influence , inluence of locals, bad working condition, funding support ,

    Normaly no project will fail becuse of the bad planning / bad management / lack of communication / etc.

    Every PM & team prepares a implementation schedules based on their past rich experinces in anticipating the new probable issues too. But every project is unique and new new problems will come during the implementation stage.  Hence construction will not fail due to lack of planning and project might  be delayed due to ignorance of the PM & team.

    Most of the construction projects fail becuase politcal influence, eg tata motors mfg unit at bengal.

    Many project will suffer due to locals influence too, 

    Dealy in Release / support of fund from Lenders also have impact on the the proejcect.

    with the above all the project cost will be much higher than the estimated, to get the approval for the revised project cost again further delay.

    Hence project will be failed because the potical influence / locals only.    

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    Lack of creation of "Value"

    idea posted by Manesh Sivan M.Sc student, University of Leeds

    The concept of failure itself needs to be defined. Suppose that a construction project is completed with meeting the key drivers cost, quality and time. Do you think that project is a success?. If the client feels that "wow..my project was a success but it didnt give me what i want....".  A construction project or any other project can be considered as a failure when it is not able to meet the objectives of stakeholders. That project failed to create any "value" to the client. A simple definition for the term value is " maximum satisfation with optimum cost". Construction project are usually consists of large number of non value adding activites. This can be considered as "wastes" . These wastefull activities consumes the resources and eventually leads the project to a failure.

    In order to illustrate this concept an example is necessary. Majority of construction projects in India are done by a method called traditional procurement route by the British construction industry. In this method the construction projects composed of mainly sequential activitie. After finishing the design the designer pass it to the special consultans. They suggest changes and the designer alter his designs to cater those changes. This eventually form a vicious circle and it can be considerd as a non value adding activity consumes the resources like time.

     

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    Corruption

    idea posted by SB DIKSHIT STATE QUALITY MONITOR, U.P.R.R.D.A

    NOTHING TO SAY

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    Ineffective Organizational Set Ups

    idea posted by Bijumon.K.C Manager, Quality, Arcadis - Gulf Project Management Consultants

    I don’t know if there any single reason that can make failure of a construction project. In fact there are several reasons. As we know each project has to go through four stages which are initiation, planning, execution and closure. Negligence or lapse in any of these stages may lead to severe consequences and the failure of the project. Parties, (Client/Sponsor, Consultant, Contractor and Authorities) who are involved in the projects need to have effective organizational set up and proffessional environment by formalizing all the processes required to start up, define, plan, launch, execute and closure. Unfortunately majority of organizations in India don’t have that attitude and approach, as a result it lead to confusion and failure

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    Functional,Financial,Environmental faiulres

    idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

    The criteria of the failure of the project and reasons as I experienced are,

    A Functional Failure: A failed Project not serving the purpose it is intended for due to Substandard Materials and workmanship in water proofing materials of Residential building projects

    Financial Failure Unduely escalated Final Caste of the project beyond the Standard deviation of 10% due to Unforseen foundation conditions due to insufficient site investigation data.

    Executional Failure Failed project due to lop sided priorities in completion of  sub projects ,for instance completion of Sewerline package without even finalization of location for Sewage treatment Plant for town ship.

    Operational FailureLocal resistance from political parties, delayed funds flow for the project

    Miscellaneous Failures  Projects fail when do not take environmental factors into account.

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    Fuctional,Financial and envoronmental failures

    idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

    The criteria of failure of projectrs as I experiencesd are

    A functional Fail;ure Project not serving the purpose for which it is intended for.

    A Financial failure of the project due to undue rise in price of materials like steel and cemnt or Delayed flow of funds resulting heavy claims from the contractors.

    An Environmental failure Project failed when constructed in reclaimed lands notr taking the surface runoff  drainga into account.Lack of storm water drainage facility.

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    lack of Will

    idea posted by Nittoor Jayaram Suresh Sr.Project Manager, DHV India Pvt. Ltd

    The success or failure of a project is directly proportional to sum total of will power of all those are part of the project team

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    Fuctional,Financial and envoronmental failures

    idea posted by Mallaya Pandravada GM-Project , GSSInfraTech Pvt Ltd

    The criteria of failure of projectrs as I experiencesd are

    A functional Fail;ure Project not serving the purpose for which it is intended for.

    A Financial failure of the project due to undue rise in price of materials like steel and cemnt or Delayed flow of funds resulting heavy claims from the contractors.

    An Environmental failure Project failed when constructed in reclaimed lands notr taking the surface runoff  drainga into account.Lack of storm water drainage facility.

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    Proper Project Management ( i.e. Planning ,Scheduling & Controlling)& Auditing during Construction.

    idea posted by Brajesh Mishra Construction / Contract Management, UPSSCL

    There must be proper and realistic planning & scheduling as per requirement of project. Each critical & important task must be precisely and clearly explained to the concerned persons so that they must realize the importance of each tasks/ activities.One must keep eye on project duration and asses the progress from time to time if it is necessary to reschedule the tasks ,it should be done accordingly without delaying the project. In execution care must be taken at critical points where the load is high or in other words more stressed zone must be handled with great care.Auditing during construction is must so tat one can rectify the things before delivery.

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    construction projects fail because of improper planning

    idea posted by Jitendra Nair Superintendent of Customs, Customs and Central Excise

    construction projects in India fails mainly because of improper planning. In majority of cases there are cost overruns and hence project does not become feasible.

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    Mismatch of Cash flow & Men - Material management

    idea posted by chandresh Makhija Executive Director-Construction & Project Management

    Usually in any project estimated cash flow is disrupted due to mismanagement of men &  material required on site vis-a-vis the projected completion time of each activity, hence resulting in chaos and  failure of a project either in terms of cost, time or quality benchmarks. 

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    Small or Big Developers, all tend to diversion of Funds and get caught in vicious circle of Financial Trap.

    idea posted by PRITHVI RAJ DUBEY Managing Director, RAJ ENGINEERING INDUSTRIES PVT LTD
    Diversion of funds
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    Planning for execution and its regular update is not synch with targets expected from construction project.

    idea posted by Prashanta Bhaumik Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd
    Before moblising to site need good planning with forseeble risk in each work items. A one time plan without its updation in synch with targets and status is alsi bad management for construction. A well configured ERP always saves money and time from this evil design
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    Unawareness of actual problem

    idea posted by Mukesh Jhedu MBA/PGDM student, Christ University Institute of Management, Bangalore
    In any construction project, it is very important to find the actual problem. Sometimes silly and simple problems lead to frustration which again lead to bad management and wrong decisions. It is very true that most of the tricky problems can be very easily solved if you know the exact problem. One example is, if you go to the doctor he will diagnose you properly and will give you the right medicine. Unless the sickness is known there is no way that he can cure your sickness. There are lots and lots of problems of any nature that come before us in the construction projects and if we are able to find those correctly there are many ways to solve those.
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    Lack of planning

    idea posted by Dr.Zubair Irshad Project Management/ Construction management professional
    Lack of planning, monitoring, control is the major cause of a project failure.
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    "misuse of each and everything"

    idea posted by Sindhu S Manja visiting faculty, St george college
    money........ we need to give bribe to each end every level........ influence......... raw materials-lower quality.. so that the contractor can have a profit of more than 200% margin....... atlas. we ppl will suffer
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    Greed of builders

    idea posted by neha singh Content Editor, Avestia Corp
    It is not scientific to construct clusters of habitations. If u luk in Bbay, all heavily crowded areas are a bane to live in. Ppl want healthy homes, fresh air, nor over population, sewage jams, traffic jams etc. It's bad planning and even bad to legitimize utter greed due to which the earth cannt bear the burden of the illiterate masses.
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    Greed of builders

    idea posted by neha singh Content Editor, Avestia Corp
    It is not scientific to construct clusters of habitations. If u luk in Bbay, all heavily crowded areas are a bane to live in. Ppl want healthy homes, fresh air, nor over population, sewage jams, traffic jams etc. It's bad planning and even bad to legitimize utter greed due to which the earth cannt bear the burden of the illiterate masses.
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    Bad Intention......

    idea posted by Sampanna Shastry Deputy Manager- Marketing & Sales, Arani Power Systems Ltd

    Beside all these factors one more Important reason I feel is Intentions of Starting and INvesting on some Projects...

     

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    ENERGY BEHIND THE SYSTEM

    idea posted by Vivek Singh Project Manager, L&T

    Any system be it Mechanical, Electrical or Managerial needs energy. If that lacks failure is natural to occur.

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    TIME,COST &QUALITY IN PROJ. MGT.

    idea posted by SUNIL SHETE Head/VP/GM-Quality, RETD. LARSEN & TOUBRO LTD. (31 YRS.)

    BAD MANAGEMENT CERTAINLY INCLUDES ALL THE ATTRIBUTES MENTIONED EARLIER.  TIME ,COST ,QUALITY ARE THE MOST ESSENTIAL AND  OF PARAMOUNT IMPORTANCE.MEETING  THE  REQUIREMENTS OF THE CLIENTS TO THEIR  ENTIRE SATISFACTION  IS THE KEYWORD. IN MY OPINION AND THRU MY EXPERIANCE,IF YOU ABLE TO ACHIEVE THESE  THE PROJECTS WOULD RARELY FAIL.

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    ENERGY BEHIND THE SYSTEM

    idea posted by Vivek Singh Project Manager, L&T

    Any system be it Mechanical, Electrical or Managerial needs energy. If that lacks failure is natural to occur.

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    Bad policies

    idea posted by AMISH Writer - Administrator
    Construction projects have a timeline and has to be met with with better planning, better management and of course right policies. Unless policies are in place there can be no planning premise and without a planning premise there cannot be anything to manage. So there we have the policy at the logger heads with the timelines. Now the resources have to be provided adequately within the prescribed timelines in order to make the project a constructive one or a failure one. Resource allocation also goes hand in hand with the policy, planning process. If the policy is to indulge in excesses then the allocation of resources will be affected and this in turn the project itself and it is false to say that the Bad Management and lack factors as the defining sources for a projects failure.
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    Bad policies

    idea posted by AMISH Writer - Administrator
    Construction projects have a timeline and has to be met with with better planning, better management and of course right policies. Unless policies are in place there can be no planning premise and without a planning premise there cannot be anything to manage. So there we have the policy at the logger heads with the timelines. Now the resources have to be provided adequately within the prescribed timelines in order to make the project a constructive one or a failure one. Resource allocation also goes hand in hand with the policy, planning process. If the policy is to indulge in excesses then the allocation of resources will be affected and this in turn the project itself and it is false to say that the Bad Management and lack factors as the defining sources for a projects failure.
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    Bad policies

    idea posted by AMISH Writer - Administrator
    Construction projects have a timeline and has to be met with with better planning, better management and of course right policies. Unless policies are in place there can be no planning premise and without a planning premise there cannot be anything to manage. So there we have the policy at the logger heads with the timelines. Now the resources have to be provided adequately within the prescribed timelines in order to make the project a constructive one or a failure one. Resource allocation also goes hand in hand with the policy, planning process. If the policy is to indulge in excesses then the allocation of resources will be affected and this in turn the project itself and it is false to say that the Bad Management and lack factors as the defining sources for a projects failure.
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    Poor tendering, planning and awarding contracts

    idea posted by C Nijagunaradhya Asst. Manager, Aarvee associates

    Usually everything is wrong with that tender document and agreement copy itself b/n client & contractor.

    From the clients view, firstly they fix the deadline of the project without any manipulations of planned quantity or possible quantity per day.

    Secondly, in majority the lowest bidder is awarded contract. Why not or who knows, the next highest bidder may be capable of doing work on time with plenty of resources.

    Thirdly, the class of contractor. Today, contracts are being offered based on reference.

    Lastly, the more the number of contractors in a particular project , more will be the issues and more will be the delays.

    Clients have poor & slow decision making capacity. Getting clearances itself is taking years. Now the LATEST is LAND ISSUES.

    The best Example is status of Incomplete thermal power plants in our country as on date.

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    Lack of Risk Analysis & its mitigation for the Contract

    idea posted by Prashanta Bhaumik Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd
    When you get a Construction Contract is there any internal control system vetted with client contractor for the risk elements and possible agreed mitigation? As a fore thought we project directors or project managers blame the management or employer after post mortem. Have we thought of using an internal control System from a Construction ERP?
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    Why do construction project fails?

    idea posted by SHRIKANT MANOHAR DANKE Project Manager, Phadnis Infrastructur Ltd
    Construction project fails due to following reasons. (1) There is lot of interdependency there in the construction field. For ex. Suppose site - in charge gives requirement of material as well as required delivery schedule for the same, but then he will be totally depend upon the purchase manager. & though Purchase manager gives order to supplier then that supplier is supposed to depend upon the manufacturer.Thus interdependency can describe in construction industry. (2)Labor problems are there. Basically they are class 4 labors. & they are supposed to move at the time of festivals like holi, at the time of season of marriages, at the time of monsoon. (3)Most of the residential projects are depending upon the booking made by the customer & their payment schedule.Most of the customers are taking loans from banks, financial institution & they have their system of making payment. (4) Change of staff from time to time is one of the reason.
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    Long process to take decision

    idea posted by Rishu Bansal Manager, IREO Management Pvt. Ltd.

    Normally there is very lengthy procedure to take a minor decision in commercial and design terms, which should be taken immediately most of the times. The reason for the delay in the decisions is as so many agencies are involved from design development to the final execution of the activity.

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    construction projects fails with more problems

    idea posted by srinivas kotteti MANAGER (PRODUCT SUPPORT)

     HELLO MEMBERS

    CONSTRUCTS  PROJECTS  ARE  FRAILURE  WITH  MORE  REASONS  .THE  MAIN  PROBLEM  IS  BAD MANAGEMENT  AND INVOICE.

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    POLITICS

    idea posted by SRINATH ORN - MRICS Vice President - Projects, Pallazio Hotels & Leisure Ltd

    IT IS NOT THE EXTERNAL POLITICIANS ALONE,  HERE I MEANT THE " PROJECT GOVERNANCE"  the way the project is being handled by the top management and most of the projects for which the top management are non technical or in experienced but financial investors and their selfish or self centered clowns ( providing incorrect informations to investors for their own benefit) .  This distracts and misleads the top management and they wont to end up in actual management of the project, hence leave to their own reliable sources( clowns).  At the project the objective of the selfish clowns are achieved and not the projects.

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    Long process to take decision

    idea posted by Rishu Bansal Manager, IREO Management Pvt. Ltd.

    Normally there is very lengthy procedure to take a minor decision in commercial and design terms, which should be taken immediately most of the times. The reason for the delay in the decisions is as so many agencies are involved from design development to the final execution of the activity.

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    I agree with you Rajiv and one more factor is that builders put money into new projects than completing the one in hand

    idea posted by Satya Pal Business Unit Head, MPS Technologies
    I agree with you Rajiv and one more factor is that builders put money into new projects than completing the one in hand
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    Bad Management,Poor Coordination,Poor decision makings

    idea posted by SHANOJ KUMAR (BASHA) Project Manager, DMC

    There can be a lot of reasons behind a projects failure.It varies from one to another and the core issues are the Bad Management,poor coordination with internal and external dependencies and also poor decision makings.Lack of proactive thoughts also deepens the situation .

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    Material Deficiencies

    idea posted by Bhushan Patil Project Lead, Birlasoft Limited

    As far as I have seen or heard the construction Projject fail due to material defeciencies, but material is not the ecaat reason for a failure. Its the people who have failed. As most material problems are due to human errors involving lack of understanding of material. Which causes the build to collapse later on.

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    by Pragya Kothari, Construction-Heavy, DLF  | 03 31 2009 08:00:01 +0000

    Absolutely right Mr.Patil, its the mistake of the people or the management who just fail to understand what type of material is required for constructing different type of building.

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    Change Managment

    idea posted by Cyril Sr. Engineer Business Excellence

    A lot of constuction projects fail to complete on time is due to change., Where in lot of dicessions are taken at adhoc which finaly results in poor planning, coordination, material managment.

     

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    Project failure

    idea posted by PRASHANT VAKILNA Tech Support Engineer, K. RAHEJA

    Most significiant feature function in project failure are 1. Not properly invistagation of the infrastructural requirement about the project 2. geology invistagation report 3, planning of construction procedrual requirement as per technical adviser 4. Improper execuation progress and requirement of safty requirement.

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    Bidding

    idea posted by Pragya Kothari Construction-Heavy, DLF

    According to me Construction Project Fails when the contractors bid lowest for the project. Bid lowest hear I mean bidding less than what is estimate (no profits) just to gain contract and make profit later on. Construction projects is to generate profit for the company with money. And failure is always linked to money.

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    management & right decisions

    idea posted by chuni lal civil Engineer (survey & execution), samsung engineering co. ltd.

    Bad management & improper planing & delay in decisions causes to fail construction projects

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    Bad Management and Lack of coordination between depts

    idea posted by Chandramouli Sr. Manager - QS & Contracts

    Main reason is bad management, also depends on quality of workmanship and material used. the bad management  is clearly exposes the lack of coordination between depts. When the lack coordination between depts. the huge communication gap will develop and leads project failure.

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    Bad Management

    idea posted by Harendra Singh Rawthan Asst. Manager/Manager (Technical), Lanco Group

    I too agree with my fellow Engginers that the major cause of any construction site is the bad management,which includes poor planning or no planning at the top.Selecting right person for the right job does play a major role secondly.Support from the seniors & corporate office are another reasons which are responsible for the same.

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    Govt. Policies

    idea posted by Devinder Pal Singh Project Manager, AKS Group

    The delay in so many clearances from Govt. and Semi Govt. agencies is a reson of delayed start of project which very difficult to over come the obstacles due to late start, like price raise with the time passed

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    idea posted by delphine M.A student, delphinesee
    My name is Miss Delphine. My hobbies are reading, music, watching of movies and playing of basketball.contact me direct with(delphine1985m@yahoo.com.sg)Waiting to hear from you soonest. With love. Miss Delphine.
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    Lack of Role Clearity

    idea posted by prakashraj kumavat MBA/PGDM student, Omegan School of Business (ICFAI Tripura)

    Each & Every individual has got its own roles means has given Authority & Responsibilty in the same proportion. So, it is important to have a clear role & responsibilities of  each individual so that they can perform their role very well. 

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    lack of awareness and education

    idea posted by biswas Advisor/Outside Consultant, property developer

    labour lack basic education and therefore do not forsee the future consequences.

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    Inadequate study at conceptual stage & improper estimate of ground condition

    idea posted by Biranchi Narayan Acharya Chief Manager (Projects), Simplex Infrastructures Ltd

    Many a time a project is whimiscally made with out carrying out proper study at conceptual stage. Hinderances could be well addressed if it could be foresighted during conceptual stage. Theory in most time followed while estimating cost, bottlenecks & road blocks which are gnerally far away from the real ground condition.

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    Prime reason for faliure of construction project.

    idea posted by Anant Gupta Project Manager, Apollo db City

    Helloooo everybody

    As I think, poor management is only and only responsible for failure of project, here are the few example of poor management:

    • Wrong selection of construction agency: Generally client is not adopting proper process in selection of construction agency. The main reason for this is old relation of contractor with high authorities.  In this case they never accessed contractor's capacity, condition of running project, financial position, technical soundness, strength of technical & supervisory staff, availability of labour, m/c, tools, shuttering  with contractor  etc. here, old relation is only criteria and cost & time factor is nil. Result; either project is failed or gone in loss due to hike of price.  Latest example:Poor condition of “commonwealth games related construction”.
    • Project starts without getting permission from various government agencies.
    • Project starts without capturing Architectural, Structural and service details.
    • Improper prior planning, scheduling and monitoring.
    • Insufficient fund flow.
    • Frequent changes in drawings and in specifications.
    • Communication gap between agencies involved in project.
    • Decision not taken with in scheduled time

    REMEMBER we all are part of management.

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    failure of effective fund management

    idea posted by Vivekanand Research Consultant, Management Development Institute
    failure of effective fund management, financial instability and misutilisation
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    honesty is the best policy

    idea posted by sushil kulkarni PROPRIETER, SPMS
    Construction projects fail mainly due to the lack of honesty from both client and contractor. A project may be requiring twelve months to complete. client will force a project period of eight months. the thinking would be, if we say eight they will finish in twelve. speedy construction will have its extra cost. the client will never pay this. and the contractor tries to squeeze economy into everything at the cost of progress.
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    Lack of Coordination & Communication

    idea posted by Suvankar Lala Store Management, Nagarjuna Construction Company Limited

    I agree what the above said is very true. In my view if there is proper coordination between the superiors, and peers as well as good communication then the chances of coming problem will be lowered and the unachievable target can be achieved.

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    CLARITY OF SCOPE DURING BIDDING

    idea posted by UJJAL Construction-Construction Management, TBSL

    i feel sometimes construction projects fail due to not having clarity in the scope of work, during the bidding stage. Hidden clauses like quality standards, site norms, safety standards, local regulations, are not analysed properly, which built up into a huge commercial value, during the course of project, and the builder has to bear the expenditures after entering into the contract. as a result, he tries to pull back, taking short cuts, saving on resources, manpower etc., finally delaying the project, and ultimately the project fails.

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    Lack of Vision, Objective, Comittment towards the project by Management

    idea posted by Cyril S M General Manager & Head - Marketing - High Mast, Bajaj Electricals Limited

    It is essential to have clear vision, its objective and deliverables while starting a project. Understanding the project by management and communicating down the line, step by step measurable execution plan with correct assessment of resources required,risks involved with systems to overcome the percieved risks. Assessment, understanding, evaluation and slecting the correct stake holders(Suppliers, contractors, Financer etc;), monitoring progress, quality, saftey and payment in time is important. My experience is that if there is a comttiment and active involvement by the management projects achieve the desired objectives. 

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    WRONG BIDDING

    idea posted by ARNAB BHATTACHARYYA WILLING TO OFFER PROJECT MANAGEMENT SERVICES , M/S PRATYAY

    Its mostly due to wrong bidding and assess the the proper cost of execution in amarket situation when prices are varying almost everyday.Apart from that poor co ordination between Contractor Consultant and Client in all Indian projects causing failure.

    ARNAB BHATTACHARYYA

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    by SHIVENDRA KUMAR JHA, ASSOCIATE DIRECTOR, MEINHARDT SINGAPORE PTE LIMITED  | 04 14 2009 09:18:37 +0000

    Improper estimation of work involvement, performance parameters & risk are the amjor reasons of failure of the project. When companies take projects at wrong estimates , they try to cut corners to meet their budgetary requirement leading to poor quality materials & workmanship. They also delay the project by not delivering the engineering & materials at times.

    In fact oqners should also ask the bidders to provide the back up of costing to assess the working knowledge of the people involved in the project & all the relevant items have been covered or  not and most important there is adequate provision against all. 

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    by SHIVENDRA KUMAR JHA, ASSOCIATE DIRECTOR, MEINHARDT SINGAPORE PTE LIMITED  | 04 14 2009 09:18:19 +0000

    Improper estimation of work involvement, performance parameters & risk are the amjor reasons of failure of the project. When companies take projects at wrong estimates , they try to cut corners to meet their budgetary requirement leading to poor quality materials & workmanship. They also delay the project by not delivering the engineering & materials at times.

    In fact oqners should also ask the bidders to provide the back up of costing to assess the working knowledge of the people involved in the project & all the relevant items have been covered or  not and most important there is adequate provision against all. 

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    Lack of self interest in Project

    idea posted by RAJIV KUMAR Project Engineer, PARSVNATH DEVELOPERS LTD.

    Besides Lack of experience in Study of drawing, Bad Management, Lack of Cash flow, Lackof proper planing the self interst in the Project may take place very important role.

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    Placement of Improper officials / supervising authorities at Sr. level

    idea posted by Rajiv Ranjan Srivastava Head/VP/GM-Corporate Planning/Strategy, ITNL

    Placement of improper officials / supervising authorities at senior level is like a misfit brick in wall which effects overall construction procedure. it is basically a side effect of todays huge demand in Civil Construction projects. Due to increasing need of various types of infrastructural structures to meet pace of economic development, various types of specialised Civil Engineers are required. Instead of understanding various types of specialised experieance requirement for the construction project, the mentality of 'ANY CIVIL ENGINEER CAN DO ANY TYPE OF CONSTRUCTION" is leading towards a peculier type of failure. This is mainly because the person deputed for the work is unaware of requirements at every stage and hence is not able to visualise actual requirement in all aspects of construction which includes planning (of manpower, machinary and material), construction phasing, quality deliverals, procurement scheduling, cash flow etc. etc. etc.. It is also observed that a inexperienced senior official always fear to take decision in a notion that it might be wrong and for all the wrong hapennings he crucifies subordinates. This increases a particular resentment in subordinate staff which ultimatly affects the progress and quality.

    At the end, it can be said that placement of right candidate at senior level may reduce many of the execution problem and hence reducing major chances of project failure.

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    by SHIVENDRA KUMAR JHA, ASSOCIATE DIRECTOR, MEINHARDT SINGAPORE PTE LIMITED  | 06 08 2009 12:22:06 +0000

    Right person for the right job is the key matra for success of any projects.

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    by Anjali Bhatia, Construction-Heavy, Sobha Developers  | 04 08 2009 09:34:55 +0000

    Mr.Rajiv you have made a very good point. I do agree with you that one of the main reason for the failure of a construction project can be the most important person in its execution i.e. the supervisor.If the person himself is not knowledgeable enough and confident enough to tale decisions then the project is bound to suffer.

    But i want to ask  that you have also mentioned the need to have different types of civil engineers for different construction projects.Can you elaborate on that.

    hope to get a quick response.

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    DUE MANAGEMENT

    idea posted by srinivas kotteti MANAGER (PRODUCT SUPPORT)

    I AGREE  ABOUT  CONSTRUCTION  PROJECTS  FAILURE  DUE  TO  BAD  MANAGEMENT 100 PERCENT  CORRECT  ANSWERS  FROM PRGYA KOTHARI AND  UJWAL SINHA

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    by Prashanta Bhaumik, Head/VP/GM-Tech. Support, ASPIRTEK Technology Ltd  | 11 13 2009 10:52:50 +0000

    I dont see any reason why we are blaming mangement? Are we not part of management? Cant we become change aagent by identifying the risks involved at each stage of activities of our construction .Can we not identify the loss or gain for the identified risk if we do not mitigate? Can we not bring this as alert to our seniors supposed be " experienced or inexperienced" as we call them? Can we accept that Project is failing because risk mitigations are not taken care of BY so called" MANAGEMENT"??

    A well defined system will arrest fallinh down further atleast keep record why project is going to fail??

     

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    Non clarity of project's objective.

    idea posted by SHIVENDRA KUMAR JHA ASSOCIATE DIRECTOR, MEINHARDT SINGAPORE PTE LIMITED

    In case the project objective is not defined in the start of the project and communicated to all concerned , it is bound to fail.

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