Statistical Analysis of Delay-Causing Factors in Indian Highway Construction Projects under Hybrid Annuity Model

Abstract

National highways are major transportation projects that greatly contribute to the economic and overall development of India. For speedy construction of national highways, in 2016, the Indian government rejuvenated the public–private partnership (PPP) model and approved the hybrid annuity model (HAM). In the HAM, government and contractor share 40% and 60% of total project cost, respectively, which reduces the financial burden on both. But in the present scenario, more than 200 HAM highway projects are facing delay for various reasons. To investigate the causes of delay in HAM highway projects, this paper provides a questionnaire-based, detailed statistical study of 35 identified delay-causing factors. The severity of each delay factor is elicited from 384 HAM highway construction experts including 123 government/client, 159 concessionaire/contractor and 102 consultant employees. Besides, 14 delay factors are identified using principal component analysis (PCA). Based on PCA and various other statistical analysis methods, such as ranking of delay-causing factors, correlation analysis, and hypothesis testing, results of the study indicate that delay because of land acquisition; delay in issuing various approvals/clearances; change in government laws and regulations; and inefficient planning, scheduling and controlling of projects are four major delay-causing factors of HAM highway construction projects. Moreover, this paper also provides some important suggestions to prevent delay in HAM highway construction projects.