Preparing & Analyzing a Prospective Contemporaneous Time Impact Analysis

August 9, 2007
Chris Carson, PSP
Project Controls Manager Alpha Corporation chris.carson@alphacorporation.com

Vice President Capital Project Management, Inc. mboe@cpmiteam.com

Mark Boe, PE, PSP

The information in this presentation or publication was developed and prepared by the authors for the purpose of education about the subject. This presentation or publication does not necessarily reflect the views of the Construction Management Association of America or constitute a position or policy of the Construction Management Association of America (CMAA). This material was presented with the permission of the authors and is subject to copyright under applicable law. The information contained herein is presented as descriptive of issues related to the subject at the time it was presented, but it has not been peer reviewed or approved by CMAA. No part of this presentation or publication is to be reproduced or used without written permission from the author and CMAA.

Introduction & Summary

A Time Impact Analysis (TIA) is the best methodology for determining the extent of impact from a potential delay event. When done in a prospective, or forward looking, manner, a TIA can promote negotiation and ultimate settlement of any ramifications of a delay event. Performing a Time Impact Analysis has a reasonably industry-wide definition.

Participant Expectations
Understand the terminology Understand the difference between contemporaneous forward-looking prospective and backward-looking retrospective analyses Recognize the importance and power of a TIA Learn how to prepare a TIA Learn how to analyze a TIA

Industry Definition of Time Impact Analysis

The Best Industry Publication
AACE International Recommended Practice No. 52R-06
TIME IMPACT ANALYSIS AS APPLIED IN CONSTRUCTION Developed by a team of scheduling and dispute resolution professionals Provides guidelines for the project scheduler to assess and quantify the effects of an unplanned event or events on current project completion

Industry Definition of Time Impact Analysis

The Best Industry Publication AACE International Recommended Practice No. 52R-06
The TIA is a forward looking, prospective schedule analysis technique that adds a modeled delay to an accepted contract schedule to determine the possible impact of that delay to project completion.

Industry Definition of Time Impact Analysis

From CPM in Construction Management, 6th edition book by James OBrien and Fred Plotnick, time impact evaluation Use of a fragnet or subnetwork to evaluate the impact of an event such as a change of order or unusual occurrence on the baseline schedule; known as TIE. This is also known as time impact analysis (TIA).

Industry Definition of Time (Impact) Analysis

From US Department of Veterans Affairs: CPM Time Analysis on Contract Changes: The affect that changes or delays have on a CPM schedule is determined by a comparison of the schedules before and after the delaying activities are incorporated into the CPM Network.

Time Impact Analysis Defined

Contemporaneous Prospective
Performed to look-ahead during project Performed at moment of start of impact Called Contemporaneous Time Impact Analysis (TIA) Compare the predicted completion of the schedule just prior to the date of the delay event to the predicted completion of the schedule after inserting a fragnet of impact activities into the schedule Discussed in this webinar

Definition of Time Impact Analysis

Forensic
Performed after the project or delay event Typically used in delay analysis in claims No industry standard name Retrospective, backward-looking Sometimes also called Contemporaneous TIA since analysis is done from the beginning of the impact even though it is analyzed after the fact Discussed in a future webinar

Reasons for Use

Sometimes mandated by specification Best way to evaluate expected impacts resulting from changed conditions Supports negotiation of time extensions due to changed conditions Enables sharing of risk Keeps project on track with accurate schedule

TIA Specification Language

Case-law & Industry guidance

TIA methodology typically used and supported in litigation Industry publications
Construction Law Library Construction Scheduling, Liability & Claims, by Wickwire, Driscoll, Hurlbut, Hillman CMAA CM Standards of Practice (Construction Phase, Monitoring Schedule Compliance) AACE Recommended Practice noted earlier

Situations for Use of TIAs

Excusable delay events
Late Notice to Proceed Undisclosed condition Unknown site conditions Request for Proposal Construction Change Directive Field Order Excessive predicted adverse weather conditions
Hurricane Extended excessive hot or wet weather

Preparing a TIA
Verify schedule (the current schedule) Test for reasonableness Ensure schedule logic models the actual project sequencing Check for constraints If constraints exist, establish methodology Remove constraints, if possible Insert logic to replace constraints Verify accuracy of changes Document use of methodology

How to Prepare a TIA, continued

Update the current schedule
Use update data through the date that will reflect the situation immediately prior to the beginning of the changed condition

Do not make any logic changes after the update Calculate the schedule
Set Data Date immediately prior to the beginning of the changed condition (to match update data)

Document the completion date

Use a common activity such as Substantial Completion (preferable), or an Interim Milestone as necessary Use EF of the entire project Be consistent in choosing the comparison activity

How to Prepare a TIA, continued

Identify the reason for preparing a TIA
Changed condition Potential delay situation Other actions beyond Contractors control

Create a copy of the reference schedule for use in the analysis, so the reference schedule can be used as a target

How to Prepare a TIA, continued

o

Determine scope of work required to deal with changed condition

List assumptions
Scope of work Manpower & resources Sequencing rationale Note any questionable assumptions

Provide narrative detailing how work will be done

How to Prepare a TIA, continued

Create fragnet of activities
Estimate durations & document Determine appropriate connection points; predecessors and successors (which activities are affected by the changed condition?) Insert fragnet with new logic connections AACE RP Set the duration of the delay activities to zero and recalculate the CPM.

Fragnet Example

Logic Connections Fragnet

Before Rebar Shop Drawings Delay (Original Schedule)

Act ID OD Total Float Early Start Early Fin Description

After Fragnet Showing Impact of Delay in Rebar Shop Drawings

Act ID OD Total Float Early Start Early Fin Description

Fragnet Example

Fragnet Logic Connections

How to Prepare a TIA, continued

Recalculate project Compare results to updated schedule completion dates prior to insertion Review Critical Path changes and shifts
Identify CP in schedule prior to TIA insertion Identify CP in schedule after TIA insertion Compare and review changes

Write up conclusions Be prepared to discuss & defend

.

Typical TIA Report

How to Evaluate a TIA

Review schedule
Reasonableness Logic models the project sequencing Constraints & methodology

Verify use of correct schedule

Pre-impact schedule Secure copy of unimpacted schedule Updated to beginning of impact Represents work plan before impact The As-Planned (Baseline) Schedule should not be used unless there is no progress (no updates) and the CP has not changed to the beginning of the impact
.

How to Evaluate a TIA, continued

Review scope of work related to the changed condition
Does it cover the changes? Is it only new or changed scope of work?

Review assumptions & narrative

Are assumptions reasonable? Are there inconsistencies with previous schedule?

Check for concurrent delays

TIA should take into account all delay events that could affect completion

How to Evaluate a TIA, continued

Review fragnet
Check durations Do they match staffing and production rates of activities prior to impact? Are they in keeping with durations in schedule? Check logic within fragnet, does it make sense? Verify fragnet calendars are consistent

Review insertion points of fragnet

Verify that predecessors & successors are correct Verify that relationship types are correctly defined Verify that any lags between fragnet and schedule are defined and reasonable

How to Evaluate a TIA, continued

Verify that the recalculation is done correctly
Check that correct Data Date is used Ensure that Progress Override is not changed to Retained Logic

Verify differences between pre-impact schedule and TIA schedule

Run comparison software Review report to ensure that changes match TIA narrative and logic The schedules should be identical except for the added fragnets

How to Evaluate a TIA, continued

Check slippage total, if any

Verify consistency in comparison of completion Identify CP in schedule prior to TIA insertion Identify CP in schedule after TIA insertion Compare and review changes

Review Critical Path (CP)

Evaluate conclusions Note any challenges for negotiation purposes

After the TIA

After TIA submittal & review
Negotiate time extension, if any Document decision If justified, incorporate TIA into schedule Publish revised schedule with new completion dates Provide change order showing settlement Ideally, TIA resolution should conclude any known delay issues or impacts to date

Incorporate TIA into Schedule

Benefits of Use of TIAs

Benefits to Owner
Participates in decisions that affect budget & completion Can negotiate requests for time and costs prior to work Encourages cooperation No lingering potential claims issues Budget & completion information always current and reasonably accurate Allows Owner to take advantage of pacing opportunities Reduce or eliminate need for unilateral modifications Shares performance and cost risk

Benefits of Use of TIAs

Benefits to Contractor
Relatively simple analyses (compared to claims) Receives timely time extensions Builds good documentation (even if rejected) Allows negotiation prior to spending money or doing work Minimal memory problems compared to old issues Allows for pacing other trades Costs for TIA effort should be reimbursable Fair preparation of TIA builds credibility Builds in understanding of risk in pricing

Disadvantages of Using TIAs

Process takes scheduling personnel with more analytical skills and knowledge Some added time burden (but considerably less than building a claim) Less attorney and consultant revenue (only real disadvantage is to attorneys)

Questions? Comments? War Stories?

Preparing & Analyzing a Prospective Contemporaneous Time Impact Analysis

August 9, 2007
Chris Carson, PSP Project Controls Manager Alpha Corporation chris.carson@alphacorporation.com Paul Beckwith, PE, CCM Director of Construction Regency Centers pbeckwith@regencycenters.com