By Brian Bass
Project delays can plague any industry, any team and any individual project. One industry notorious for experiencing frequent and costly delays is the building and construction industry. A project delay can represent a costly occurrence for any organization. Therefore, it is important for an organization to understand what causes a delay and how to prevent delays from occurring.
A common cause of project delays is subcontractors and consultants. If a company contracts out labor for specific projects, certain delays may occur as a result of the contracted work, causing the project to become delayed. These situations are often difficult for an organization to anticipate and overcome and may require the organization to wait out the delay. A common cause of subcontractor delay results from subcontractors taking on too many projects at the same time.
Shipping and Supply Delays
Delays from shipping, supply or other acquisitions associated with required materials also have the potential to derail a project from its intended completion date. For example, a warehouse that experiences a sudden shortage can affect supply transport or availability, resulting in a delayed project. In some cases, an organization may have the ability to switch to a different supplier and avoid the delay. However, in other cases, the company may simply have to wait.
Climate delays result from weather disruptions or natural disasters that affect outdoor construction and transportation projects. Alternatively, climate delays can also stem from changes in the business climate for projects that companies carry out under particular circumstances. For example, a company could start a project under a particular investment climate or political climate that suddenly changes. Companies also commonly have a difficult time planning for and anticipating climate delays.
Project delays can also result from the client. These delays may result from the client’s dissatisfaction or a client that changes his mind regarding what the project entails. Either way, these delays are a relatively common occurrence with many types of projects. As work develops and the client assesses the progress, it is common for the client to request alterations. The best way to try to prevent this type of delay is to draft a very clear and specific working contract before the work begins.
About the Author
Brian Bass has written about accountancy-related topics and accounting trends for "Account Today." He works as a senior auditor specializing in manufacturing and financial services companies for one of the Big 5 accounting firms. Bass hold a master's degree in accounting from the University of Utah.