Professional Documents
Culture Documents
Construction Projects
:COURSE CONTENT
Introduction- 1
What is Delay- 2
3- Types of Delay
4 - Analyzing Delays
All construction projects consist of detailed scope of work that must be performed -
. within a specified duration for an agreed amount of compensation
Failure to complete the project in the mandatory time period can result in -
. financial losses and penalties
Hence, the use of a properly prepared construction schedule is a necessity to satisfactorily
. complete projects and maintain profitability
, If a project is delayed#
The construction schedule can be utilized to quantify the impact by
. comparing planned performance with actual execution
The majority of project owners as well as the legal system now require the use of
properly prepared construction schedules to prove liability and entitlement of
.delay damages in construction projects
Introduction
Terminology
:Act of God -
a natural occurrence caused directly and exclusively by natural forces
without any human intervention, which could not have been reasonably foreseen
or prevented by the contractor or any other party to the contract
:Adjusted As-Built-
a retrospective schedule impact analysis technique ,that uses a
, one time
after-the fact insertion of owner and excusable delays into the as-built schedule
to quantify global impact
:Adjusted As-Planned-
a retrospective schedule impact analysis technique in which delays are
incorporated into the original CPM without regard to actual progress or historical
work activity data, in order to quantify global impact
Cardinal Change
a change (either directed or constructive) to the contract that,
because of size or the nature of the changed work, is clearly beyond the general
scope of the contract
Change
when a contractor takes on any type of work that deviates from the
original contract, or from the
Introduction Terminology-
Directed Change
a directed written modification to the contract that orders the
contractor to make specific changes to the work required by the project plans
and specifications
Contractor Responsible Delay (CRD) a delay attributable to the
contractors actions or inactions
Differing Site Condition
a material, significant difference between the
conditions represented in the
contract and those encountered on site
Global Impact a retrospective schedule impact analysis technique that plots
all delays on an as-built bar chart, equating the total delay to be the sum total
.of the durations of all delaying events
Force Majeure unforeseen events with causes beyond the contractors
control, for which the contractor is deemed excusable in their failure to perform
.within the required time limits
Disruption the lost productivity that results from interruptions in the planned
.sequence of operations
Default Termination
contract clause permitting the owner to terminate the
contract when the
.contractor is not meeting the contract requirements
Introduction
:Types of Schedules #
Baseline Schedule-
Updated Schedule -
Recovery Schedule-
Revised Schedule-
As-Built Schedule -
Introduction
:Types of Schedules
Baseline (As-Planned) Schedule#
the target construction schedule based on the contractors original understanding of the project -
.and used as the standard by which progress is measured
.The schedule that represents the Contractors Original Plan for completing the work - -
Includes planned activities, durations and relationships, planned resources and any dates - -
.imposed by the Contract
Submitted for the Engineers approval, as a Contract requirement obliged by clause 8.3 -
.of the Conditions of Contract
.Part of the Planning Process -
.Represents the basis for measuring the Contractors progress during execution of the Works -
Introduction
Schedule prepared during the course of executing the project at predetermined intervals -
.periodic basis
.Periodic basis (Monthly/weekly/by weekly) depends on the size and duration of the project -
Percent completion of activities, actual dates tracked during the preparation period, actual -
.resources and any other data related to progress shall be included
.Provide start and finish dates for all activities started and/or finished during the report period -
. Provide the current status for all activities reported as being in progress in the last update report-
If they were completed during the current period, the date of actual completion should be recorded -
The fragment that has to be incorporated into the schedule to reflect delays and/or change -
Recovery Schedule#
Revised Schedule
It is a schedule prepared during
construction, after the project has fallen behind
.the Project Completion date will be changed-
Introduction
:A-Built Schedule#
an accurate historical representation of the actual sequence of construction and how it was -
completed
Dates represent the actual start and actual finish dates of activities -
Includes change orders executed on the project. May also include activity disruptions -
..Schedule must be
Reliable-
Approved -
Schedule Manipulations#
.Reduced or Increased Activity duration-
Schedule Mistakes#
Dangling Activity (Open end activities)-
External Relationship - 3
Introduction
External Relationships - 3
Network Calculations
:Important Terminologies
: Early Start (ES)/ Early Finish (EF)
.The earliest date an activity can start/finish on
: Late Start (LS)
.The latest date an activity can start/finish on without delaying the project
: Total Float (TF)
. It is the excess time along non-critical chain of activities
Introduction
:Forward Pass- 1
Early dates are the earliest times an activity can start and finish once its predecessors -
.have been completed
The calculation begins with the activities without predecessors. [Start Activity] -
Backward Pass - 2
Late dates are the latest times an activity can start and finish without delaying -
.the end date of the project
The calculation begins with the activities without successors. [Finish Activity] -
Total Float :
- The amount of time an activity can slip from its early start without
.delaying the project Finish Date
: Positive Float-
Project/Activity in good situation
: Zero Float-
Project/ Activity is critical
: Negative Float-
Project/ Activity is extremely critical
Introduction
- Best practices:
Critical Activities
- If your project schedule falls behind, focus on critical activities causing delay.
Critical activities are usually defined as those with zero or negative float.
# How to define critical activities :
- If you are focusing on specific activities,
Critical activities as those whose Total Float is less than or equal to a specific value.
- If you want to focus on the overall end date of the project,
Critical activities as those on the longest path.
Introduction
Free Float
- Free float is the time the activity can be delayed without
delaying the successor activity/activities
Delay
In-
Excusable Pacing
Excusable
(EX) Delay
N/N
Compensa Non
ble Compensab
(EC) le
(EN)
Non-
Concurrent
Concurrent
Delay
Delay
Types Of Delay
:Types of Delays
Excusable Delays
In-Excusable Delays
Compensable Delays
Non-Compensable Delays
Concurrent delays
Pacing Delays
Types Of Delay
, Delays caused by the actions or inactions of the Contractor or one of his Sub-Contractors
.Suppliers or any other party whose in contractual relation with the Contractor
The Contractor will not be entitled for an Extension of Time
Types Of Delay
, Excusable delays generated as a result of event(s)) that are within the control of the Employer
.one of his employees or agents (Engineer/CM/Designer/ another Contractor at site etc
a delay that will serve to justify an extension of contract performance time, as well as award delay
damages; a delay at fault of the owner
Most of the times, it entitles the Contractor for an extension of time as well as prolongation costs that
..may include all his head office support, site management expenses, disruptions,..etc
Examples may include delay in material submittal review, change orders, other contractors delays,
.suspension of works to the convenience of the client etc
Types Of Delay
Non-Compensable Delays
. Generally both parties are precluded from the recovery of the delay damages
. Examples may include labor strikes, acts of nature, adverse weather conditionsetc
Compensable Delays
Types Of Delay
Concurrent Delays
. Two or more delay events share the same time and fall in parallel critical paths
If any of the delays occurred, the projects completion date would be affected
Delay on the critical path is not considered concurrent with other delays of the critical
.path arising in an overlapping period
If concurrent delays arise from two different parties (Contractor and Employer) it may result
in issuance of excusable non-compensable extension of time, where Employer furnishes
.time and gives up liquidated damages
However, compensation is highly dependent on the situation, claim analyst must be aware of
.each case independently
Types Of Delay
Pacing Delays
. This is a new type of delays in construction claims
It is addressed as legitimate business decision rather than being contractual, where the
Contractors management takes a decision to de-accelerate non critical areas, due to the Employers
delays or Employers expected delays in critical areas, for the purpose of keeping pace with
Employers delays
. Contractors in England and USA has won some cases related to pacing delays in courts
Types of Schedule Impacts
Delays#
A delay is an event that prevents the contractor from completing the work within the
contractually specified performance period
], Wickwire et al. 2003[
. a slowing down of the work without stopping it
Disruptions#
A disruption can be defined as an impact that alters the contractors planned work
sequence or flow of work expected at the time of bidding, which results in increased difficulty,
cost, and/or time
. [Bramble et al. 1990, Wickwire et al. 2003]
When this occurs, the contractor cannot perform work in the manner anticipated during bid
Types of Schedule Impacts
Change #
. Another major type of potential schedule impact involves changes
When a contractor takes on any type of work that deviates from the original contract, or from the
scope of work or plan of action reasonably anticipated under the contract, that results in an
increase in performance time, the contractor may seek an adjustment
]. Bramble et al. 1990 [
Suspensions #
A suspension of work is a written directive by the owner to stop all work on
the project, either because the contractor has failed to perform in accordance with contract
documents, or at the owners convenience
]. Wickwire et al. 2003[
Types of Schedule Impacts
Termination #
Termination is a permanent stoppage of work of all or a portion of
. the contract, and the contract is terminated
For a party to possess the right for termination, a termination clause must be specifically
. included in the contract
Most contracts allow the owner the right to terminate the contract, while some contracts
.grant the contractor this right
Causes of Schedule Impacts
Common examples of delays that are beyond the control and without the fault of the
:contractor include but are not limited to
Acts of Allah or of the public enemy-
Fires -
Strikes -
Examples of Delays
Site access-
Differing site conditions -
Shop drawing approval -
Design errors and omissions -
Permit acquisition -
Utility relocations -
Adjacent contractors -
Government Actions/Inactions -
Examples of Delays
Contractor -
Owner -
Subcontractors -
Suppliers -
Labor unions -
Utility companies -
Nature -
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
The notice shall be given as soon as practicable and no longer than 28 days after the Employer
.became aware, or should have become aware, of the event or circumstances giving rise to the claim
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
If the Contractor suffers delay and/or incurs Cost from executing work which was necessitated by
an error in these items of reference, and an experienced contractor could not reasonably have
discovered such error and avoided this delay and/or Cost, the Contractor shall give notice to the
:Engineer and shall be entitled subject to Sub - Clause 20.1 [Contractors Claims] to
an extension of time) a(
payment of any such Cost plus profit) b (
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
The Contractor shall take reasonable precautions to prevent Contractors Personnel or other
.persons from removing or damaging any of these findings
, The Contractor shall, upon discovery of any such finding, promptly give notice to the Engineer
.who shall issue instructions for dealing with it
If the Contractor suffers delay and/or incurs Cost from complying with the instructions, the
Contractor shall give a further notice to the Engineer and shall be entitled subject to Sub-Clause
20.1 [Contractors Claims]
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
The Engineer shall give the Contractor not less than 24 hours notice of the Engineers intention to -
attend the tests. If the Engineer does not attend at the time and place agreed, the Contractor may
proceed with the tests, unless otherwise instructed by the Engineer and the tests shall then be deemed
.to have been made in the Engineers presence
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
Then this delay or disruption will be considered as a cause of delay under subparagraph (b) of Sub-
.Clause 8.4 [Extension of Time for Completion]
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
Require the Engineer to agree or determine a reasonable reduction in the Contract Price in- 2
accordance with Sub-Clause 3.5 [Determinations]
if the defect or damage deprives the Employer of substantially the whole benefit of the Works or any - 3
major part of the Works, the Employer shall then be entitled to recover all sums paid for the Works, plus
financing costs and the cost of dismantling the same, clearing the Site and returning Plant and Materials to
.the Contractor
TYPES OF DELAYS - RELATED CONTRACT CLAUSES
. It assumes that the party uses the method did not cause any delay
Example
Easy to apply
Straight forward
Simple mathematical difference calculations
Strengths
,Employers Delays -
.Impact the schedule with Employers Delays
: To conclude the delay period
NN Securities delay EC
events type
LD = the different in project CD = the different in project
completion dates of As-Planned completion dates of As-Planned
schedule before and after the schedule before and after the
Impact Impact
Next delayed
event
End
The Impacted as Planned Method
(What If Approach)
Example
If we use the same example, the as planned schedule shows project Duration of 10 months
As built Project Duration = 20 Months
, After impacting the baseline schedule with Employers delays- [ A]
project duration tends to be 25 Months
:Therefore
Contractor Caused Delays= 25 -20= 5 months , this will be entitled for liquidated damages -
The Impacted as Planned Method
(What If Approach)
:Therefore
.Contractor Caused Delays = 23 -10= 13 months this will be entitled for liquidated damages -
Note
The but for schedule results from removing all owner
. caused delays that affect the as built critical path
EC Classify delay NE
events type
EC NE
End
The Collapsed as Built Method
(But For Approach)
Example
, If we use the same example
the as planned schedule shows project Duration of 10 months -
.As built Project Duration = 20 Months -
, After removing Employers Delays from the as built schedule
.total project duration shows 18 months
Employers Delays = the difference between the as built and collapsed schedule
.months, that is Compensable Delays 2 = 18 20 =
Contractors Delays = the difference between the collapsed schedule and the as planned schedule
.months, this is subject to Liquidated Damages 8 = 10 18 =
The Collapsed as Built Method
(But For Approach)
Reflects cause and effect on the as built schedule that represents the actual
.sequence of work
Eliminates the use of the base line schedule, which is more theoretical
Strengths . Reliable
Repeat this procedure for each window period tell the end of the project
The Contemporaneous Period Analysis Method
(Windows Approach / CPM)
Note
Once the first CPM schedule is prepared and periodically updated during the
construction period, the first schedule update is compared to the original
schedule, and any delays in the project that occurred during that period are
. analyzed using a But for approach
Later on, the first update becomes the new baseline and the process repeated at
. the end of the second update period
The process can be repeated at the end of each reporting period
The excusable, compensable, non compensable delays
. sum to the cumulative delay on the project
The damages delays are allocated accordingly
The Contemporaneous Period Analysis Method
As-Planned Schedule Delay Events Logic Changes Define window Period
1stst
Window
EC NE
Collapse all NE
Collapse all EC delayed
delayed events
events
from As-Built
from As-Built schedule
EN .Schedule
CD = The different in project LD =The different in project
completion date of As-built completion date of As-built
schedule before and after the schedule before and after
.collapse .the collapse
Next
Window
End
The Contemporaneous Period Analysis Method
As-Planned Schedule Delay Events Logic Changes Define window Period
1stst
Window
Next
Window
End
The Contemporaneous Period Analysis Method
(Windows Approach / CPM)
, Most controversial and analytical method
therefore most claims reviewer consider its results reliable
Analyzes all types of delays
Allows for complying with FIDIC clauses, especial this related to interim claims
Tends to be very accurate
Strengths Puts all delays in the context of time, place and actual conditions of the project
Periodical runs allows easier documentation