Delays and Financial Implications of COVID-19 for Contractors in Irrigation Projects

Construction project delays are costly to stakeholders. Therefore, extensive research has been carried out in various countries covering different types of construction projects to identify delay factors and mitigation strategies. However, the literature has not documented the impact of a once-in-a-century event such as the COVID-19 pandemic on construction projects' schedules and costs. The present study uses a case study approach to examine the effect of the COVID-19 pandemic on three lift irrigation projects' construction programs and the financial implications for the contractor in the Indian construction industry. The findings reveal that the main factors responsible for delays due to the COVID-19 pandemic were fear of an outbreak, imposition of a nationwide lockdown, late return of workers, resource shortages, and changes in operating procedures. Furthermore, the study found that the contract conditions and government directives allowed for time extensions in construction projects by recognizing the pandemic as a force majeure. However, such provisions did not protect contractors' financial interests. This study evaluates the financial implications of the COVID-19 pandemic for the contractor in terms of worker compensation during the lockdown, idling of resources, overhead costs, cost escalation, and liquidity.