Purpose The purpose of this paper is to provide insights into the environment, resources and surroundings factors to develop a system dynamic model of dynamic project scheduling that aids on-time project delivery by reducing the project delay for the road construction industry in New Zealand (NZ). Design/methodology/approach This study adopted narrative inquiry methodology that involved semi-structured interviews (SSI)/expert opinion and systematic literature review (SLR) data to determine the environment, resources and surroundings factors to develop a system dynamic model of dynamic project scheduling that aids on-time project delivery by reducing the project delay for the road construction industry in NZ. The data were analysed by using descriptive analysis, Likert scale and thematic analysis techniques to understand the relationship of these factors to propose a system dynamic model. Findings This study concludes that weather, pandemic, material, geotechnical and disaster factors highly influence while other factors such as equipment shortage, breakdown, design error, labour and event had mixed impact on the dynamic scheduling (DS) that aids on-time project delivery. The proposed system dynamic model can enhance the understanding of factors affecting DS. Research limitations/implications SLR is limited to English literature. The limitations of an SSI and a small sample size are acknowledged. Practical implications The proposed model can reduce the uncertainty and scheduling errors during the planning phase and aid in the lesser scheduling modification during the execution phase. In practice, this study will be helpful for road contractors to understand environment, surroundings and resource in-control and out-of-control factors, overcome road construction delays, reduce cost, aid in stakeholder management and sustainable development. Social implications The inclusion of environment, resource and surroundings factors in force majeure clauses will bring an understanding between contracting parties and in turn reduce disputes and delays and help social causes such as on-time infrastructure delivery. Originality/value For the first time in a road construction, dynamic project scheduling model that collectively included and linked environment, resource, and surroundings factors to determine the in-control and out-of-control factors for an organisation is proposed. The novelty in the paper is provided by the inclusion of the events, disasters, and pandemics influence on DS in the NZ road construction industry for the first time.