Q&A: Deloitte partner discusses handling construction issues

Market pulseNews Amit Bansal “Construction is an integral part of process and growth,” says panellist Amit Bansal, partner at Deloitte, who participated in the session on “Role of Experts in Major Construction Project For Delay and Cost Overruns Claims” at the Inter-Pacific Bar Association (IPBA) conference in February this year in New Delhi. He sat down with India Business Law Journal, explaining his views. India Business Law Journal: How would you explain the issue of delay and cost overrun claims to laypeople? Bansal: According to what statistics indicate, almost 75% of projects that are delayed have cost overruns. And the balance 25% never see the light of day. Why are the cost overruns and delays so inherent? I think the fundamental issue starts from project preparation. It requires different kinds of studies to be done prior to the project being planned. These include studies of the land, soil, site, utilities and other things that may be below the ground. The delays happen because there are a lot of uncertainties, which the construction companies deal with. These uncertainties come in the form of surprises. Suddenly a utility below comes up, or a rock, or underground water, which were never thought about. When these uncertainties come up, it means designs and specifications have to change, which impact the cost. All of this requires approval from the project owners, which goes back and forth. Additionally, none of the construction companies do things entirely in hou...