Effect of Delay on Profitability of Building Construction Projects

In construction, delay could be defined as the time overrun either beyond completion date specified in a contract, or beyond the date that the parties agreed upon for delivery of a project. It is a project slipping over its planned schedule and is considered as common problem in construction projects. The Indian construction sector has acted as an engine of growth for the Indian economy for over the past five-decades and becoming a basic input for the socio-economic development of the country. Construction is the second largest economic activity after agriculture, and has contributed around 6 to 9% of India's GDP over the past five years while registering 8 to 10% growth per annum. This paper refers to study effect of delay in construction industry particularly in profitability or economic factors. Keywords: Construction, Delay, Profitability, GDP, Economic factor