---
title: "Delay and cost overrun due to management failure"
subject: "Construction Management"
chapter: 1
key: "semester_8/construction_management:management-failure-delay-cost"
source: https://www.bctengineer.com/q/semester_8/construction_management/management-failure-delay-cost
site: BCT Engineering
---

# Delay and cost overrun due to management failure

Construction Management · Chapter 1: Construction Management Framework

- Asked in: 2079 Shrawan, 6 marks
- Video: [😲5 Reasons , Why your Project is Delayed😱](https://www.youtube.com/watch?v=KI5pzzGGKJM) — Project's Mind
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/management-failure-delay-cost
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-1

## Question

The construction projects face delay and cost over-run mainly due to management failures. Do you agree with this statement? Explain in brief. Discuss on different construction environment which affects a construction project.

## Short answer

Yes, delay and cost overrun are largely due to management failures: poor planning, late design, delayed decisions and payments, weak supervision and coordination. Construction is also affected by physical, economic, political, social, technological and organisational environments.

## Answer

**Yes, in most cases I agree.** Studies of Nepali and international projects show that delay and cost overrun are caused mostly by weak management rather than by technical difficulty. Typical management failures:

- Poor planning and scheduling; unrealistic programme, no resource-loaded schedule.
- Incomplete or late design and drawings, frequent variations.
- Delays in client decisions, land acquisition, approvals and payments.
- Poor contractor selection (lowest bid without capacity) and weak site supervision.
- Shortage of labour, materials or equipment; late procurement.
- Weak monitoring and control, no corrective action on early warnings.
- Poor coordination among the client, consultant and contractors, and cash-flow problems.
- Weak risk management.

Some delays are external (strikes, weather, landslides, fuel shortage), but better management reduces their effect.

#### Construction environments affecting a project
| Environment | Examples |
|---|---|
| Physical / natural | Terrain, climate, monsoon, floods, earthquake, geology |
| Economic | Inflation, price of materials, interest rate, availability of finance |
| Political / legal | Government policy, laws, permits, strikes, instability |
| Social / cultural | Community acceptance, local labour, compensation, resettlement |
| Technological | Available methods, equipment, skilled labour |
| Organisational | Client, contractor, consultant capacity and relations |
| Physical site conditions | Access, utilities, storage space, neighbouring structures |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What does the answer conclude about delay and cost overrun?
   A. They are mainly due to weak management rather than technical difficulty
   B. They are purely due to weather
   C. They are caused only by the client
   D. They are unavoidable
   Answer: A. Studies show weak management is the main cause, though some external delays exist. (Key point: Main cause)

2. Which is a management failure listed?
   A. Earthquake
   B. Poor planning with an unrealistic programme
   C. Monsoon rain
   D. Fuel shortage by strike
   Answer: B. Poor planning and scheduling is a management failure; the others are external. (Key point: Management failure)

3. Why is selecting the lowest bidder a problem?
   A. It raises the bid security
   B. It always shortens the duration
   C. It is illegal
   D. The contractor may lack capacity, causing delay and weak work
   Answer: D. Lowest bid without capacity is a poor selection that leads to delays and cost problems. (Key point: Contractor selection)

4. Inflation and interest rate belong to which construction environment?
   A. Economic
   B. Physical
   C. Social
   D. Technological
   Answer: A. Inflation, material prices, interest rate and finance availability are economic factors. (Key point: Environment)

## Related in Construction Management

- [How CM helps with delay, quality and cost](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acm-course-delay-cost) — Construction Management, chapter 1
- [Function of project management in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acpm-function-nepal) — Construction Management, chapter 1
- [Characteristics of a construction project](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aconstruction-project-characteristics) — Construction Management, chapter 1
- [Define construction management and its need](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Adefine-cm-need-knowledge) — Construction Management, chapter 1
- [TCTO, crashing and reducing project duration](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Atcto-crashing-reduce-schedule) — Construction Management, chapter 2
- [Time cost trade-off concept with example](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Atcto-concept) — Construction Management, chapter 2, asked 5×

## Related in other subjects

- [Project vs traditional management; external environment](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-vs-traditional-mgmt-external-env) — Project Engineering, chapter 1
- [Types of projects; effect of project management](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-types-effect-of-management) — Project Engineering, chapter 1
- [Risk in construction projects and its management](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-define-more-chance-construction) — Project Engineering, chapter 5
- [Modes of failure due to settlement](https://www.bctengineer.com/question.md?key=semester_5%2Ffoundation_engineering%3Asettlement-modes-sketch) — Foundation Engineering, chapter 6