In construction projects delay is a global experience and the same issue persists in Pakistani construction industry as well. This study has its major focus on recognizing the factors of delay in government funded construction projects in Malakand division of Khyber Pakhtunkhwa Pakistan. Construction delay and its effects have been studied separately by many researchers. The current study has jointly analyzed the causes and effects of delay in government funded construction projects of Malakand division, Khyber Pakhtunkhwa Pakistan. A questionnaire assessment was executed to investigate the factors which cause delay, and their effects by considering the three main stakeholders of construction industry i.e., Contractors, Clients and Consultants. Accordingly, 50 respondents from various districts of Malakand division of Khyber Pakhtunkhwa province participated in the survey. The ten most important causes of time overrun were identified by the current study from a list of 64 causes and in the same way six effects of delay were identified. The identified 10 major causes are: i. Funding for project/Financial position of constructor, ii. Delayed final inspection and third-party certification iii. Weather conditions, iv. Terrorist activities in construction area, v. Delay in bills payment vi. Flood, earthquake or other natural calamities, vii. Suspension and postponement of work activities, viii. Shortage of construction materials in market, ix. Disagreements in implementation schedule of sub-contractors, x. Late approval and finalization of drawings. Similarly, the 6 major effects identified are: i. Time Overrun, ii. Disputes iii. Cost Overrun, iv. Arbitration, v. Abandonment and vi. Lawsuit. An empirical relationship between causes and effects has been developed by this study. Keywords: Time Overrun, Construction Industry, Factors, Contractor, Consultant, Client, Construction delay.