Issues in Road Construction

For more than a decade in the construction industry, Axis Capital Group has not only encountered troubles with our internal system, we have also been in the midst of critical issues that sometimes, we resolve to strict measures which leads to changes in our protocols and measures. In both our offices in Singapore and Jakarta, Indonesia, we have tens of complaints on common constraints in some of our equipment or involvement in seemingly impossible projects. Among these issues include road construction. Delays are also inevitable as there are unforeseen circumstances.

There are quite a few reasons for the delay and some of these are:

• Outdated revenue maps form the basis for preparation of land acquisition plans. The records are often not been reviewed and updated for a long period of time.

• The land acquisition plans are often not realistic as the design consultants lack expertise to prepare such plans. They also do not carry out the alignment and ground verification.

• There are frequent changes in the designs and alignments during implementation stage. In some cases, there are discrepancies in the project coordinates and the reference frames resulting in mismatch thereby resulting in redesign of the alignment.

• The project authorities have to depend on the human resources from the revenue authorities, who are already over stretched and cannot, provide the required assistance on time.

• In the absence of clear guidelines on providing compensation in special cases (including land owners with unclear titles or more than one owner), the settlement process takes a much longer time.

• Delay in finalization of the alignment and corridor of impact during project preparation stage

• Very weak contract management & enforcement environment.

• Lack of the understanding between the Employers and the contractors that speedy completion of the projects is to both parties’ interest.

• Lack of understanding of the contract conditions both by the Employers and the contractors.

• Due to dearth of construction management skills in the country, the contractor’s performance gets affected. This includes the contractor’s work planning, resource and workflow management, cash flow management and his overall project management.

• The contractors generally quote low to win the contract. They normally have their eyes on making money through raising claims at a subsequent date knowing fully well that the Employer will certainly provide them many avenues to do so, particularly because of delay in making land available and delay in decisions, payments etc.

• Since the role of the Independent Engineer is not very clear so the Engineer takes no responsibility. The Engineer is not accountable as after the project is completed, he is simply not there.