The "Major Pitfall" Hidden in Construction Schedule Extensions
Compared to building construction, it is not uncommon for civil engineering projects to take longer to complete.
When I say this, some people in the architecture field say things like, “I’m jealous that your construction schedule gets extended,” or “Civil engineering is a piece of cake,” but that interpretation is wrong.
There’s a “major pitfall” lurking when it comes to extending the construction schedule for civil engineering projects…
Watch out! Project delays carry a high risk of losses.
First and foremost,An extension of the construction schedule is highly likely to result in a loss.。
Naturally, if the construction period is extended, that means additional costs on-site. While it’s not a problem if funds are available when the construction period is extended, it’s best to assume that no funds will be allocated for items not listed in the bill of quantities.
According to my boss, there was a time in the past when, even though the project schedule was extended by six months, the budget was increased by only about 500,000 yen.
Based on my experience, if the project runs for a month, it will cost at least 1 million yen. If labor costs or work requiring heavy machinery are involved, the budget should be set even higher. Given that the additional cost for a six-month extension was only 500,000 yen, it’s likely that the project incurred a significant loss.
It’s extremely dangerous to get too excited about the fact that the project timeline has been extended and you now have some extra time.
You must absolutely avoid extending the construction schedule due to delays in applications or other reasons!
I often hear that one reason for construction delays is that there were delays in preparing the documents required for submission to the relevant agencies, which caused construction to come to a halt for nearly a month.
To put it bluntly, extending the construction schedule due to delays in the application process is out of the question. That’s because we wouldn’t even be able to apply for the additional budget required for the extension.
Public works projects aren’t so lenient that they’ll provide additional funding just because a site manager failed to submit a request, resulting in a delay in the construction schedule.
Construction delays caused by factors like these carry a very high risk of resulting in a massive loss. We must absolutely avoid situations where construction schedules are extended due to requests.
Subcontractors are more likely to bear the burden than general contractors.
Although the situation varies depending on the reason for the schedule extension, the reality is that subcontractors are often left to bear a very heavy burden when schedules are extended. It is said that some unscrupulous general contractors even shift the blame for schedule extensions onto their subcontractors.
Even if a delay in the construction schedule is caused by a subcontractor, the general contractor is generally required to bear the costs as well; however, I’ve even heard of cases where the subcontractor was forced to cover the full cost of the delay, leading to the company’s bankruptcy.
Of course, the Construction Industry Act prohibits unilaterally imposing additional costs on subcontractors; furthermore, if the subcontractor is not at fault, the general contractor is required to bear those costs.
However, given that they are in a position where they are being given work, isn’t it fairly common for subcontractors to bear the costs?
This means that businesses in a weaker position are highly likely to suffer losses.
Extending the construction schedule should be considered only as a last resort.
It goes without saying that advance preparation is necessary to avoid delays in the construction schedule.
First and foremost, it is our job as construction managers to determine how much the schedule needs to be extended to meet the deadline, and to consider where the associated costs will come from and how they will be justified.
If we determine that the construction work will not be completed on time no matter what, it is our job to thoroughly identify the reasons and the items involved in the additional costs from the ground up, plan the budget for those additional expenses, and ensure that we receive the necessary funds.
If that can't be done, it could spell trouble for many businesses and stakeholders.We should not lightly choose to extend the construction schedule.
In my opinion, extending the construction schedule should be considered only as a last resort.
