Effects of Delay in Construction Phase of Oil and Gas Projects in Malaysia

Abstract

Delay in project is a universal phenomenon and the effects of the delay can affect all
involved stakeholders. Thus, most project management companies managing
Engineering, Procurement, and Construction (EPC) contracts in oil and gas projects are
optimising the activities to avoid any delays which can affect the entire project
negatively. It is important to understand how the delay in the construction phase
affects the oil and gas projects negatively and how bad the effects can be. This paper
aims to investigate the effects of delay in the construction phase of the oil and gas
projects in Malaysia. A systematic literature review (SLR) from various sources through
books, conference proceedings, project management documents, and oil and gas
industry journals were made to write this paper. Some effects of delays were
categorised as the main effect and some as the sub effect. This initial study is based
purely on literature review, comparison of similar cases, cross referencing, and critical
judging. The effects of delay in the construction phase specific to the oil and gas
projects in Malaysia should be further researched with focus only in the Malaysian
projects and industry players in order to derive a good delay mitigation plan at later
stage.