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Delay Analysis Methods in

Construction Projects

:COURSE CONTENT
Introduction- 1
What is Delay- 2
3- Types of Delay
4 - Analyzing Delays
5- Methods to Analyze Delays
6- Case Studies Using P6

Introduction
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-Builta 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-Planneda 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 ScheduleUpdated Schedule Recovery ScheduleRevised ScheduleAs-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

:Updated Schedule is#


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
.Used to generate progress reports .It is NOT a revised schedule .Part of the monitoring and controlling processes -

Introduction

:To Create Up Dated Schedule#


.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 reportIf they were completed during the current period, the date of actual completion should be recorded .For those remained in progress, provide remaining duration The fragment that has to be incorporated into the schedule to reflect delays and/or change . conditions that influence the schedule and progress of the project

Introduction

Recovery Schedule#
,It is a schedule prepared during construction
after the project has fallen behind with adjustments
by the contractor that expedite the remainder of the project
.and ensure a timely finish

Introduction

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 Resources represent the actual resources exhausted to execute the Works .Part of the closing processes of the project -

A network logic diagram is commonly used to represent


all activities in a project and their dependency
.relationships

Introduction

..Schedule must be
ReliableReflect the Intended Plan
Approved

Free from Mistakes


.Free from Manipulations

Introduction

Schedule Manipulations#
.Reduced or Increased Activity duration.Manipulated in activities constraints

.Manipulation of the activity status or history


.Change schedule sequencing

.Schedule the activity based on late start

Introduction

Schedule Mistakes#
Dangling Activity (Open end activities)Fail to tie start of activities with submission shop drawing, approval,
.fabrication, and material delivery
.Contractors fail to recognize and schedule other trade work

Not providing sufficient mechanical details in a multiple


.activities

Introduction

:Types of Relations used while sequencing the schedule


Hard Logic, Mandatory dependencies - 1
Soft Logic, Discretionary dependencies - 2
External Relationship - 3

Introduction

)Hard Logic, Mandatory dependencies- (1


.This is enforced by technical requirement or work methodology

.This type of relations cannot be changed during acceleration or recovery -

Introduction

)Soft Logic, Discretionary dependencies- (2


This is used as decision of team member, planner or project .manager where he/she prefers to do the work using this sequence
.This can be changed during acceleration or recover -

Introduction

External Relationships - 3
This is relation introduced by external party like authorities
for example changing this relation depends on the approval of
.the party enforcing such relation

Introduction

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
.The forward pass calculates an activity's Early datesEarly 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] Early Start (ES) + Duration - 1 = Early Finish (EF)

Introduction

Introduction

Backward Pass - 2
.The backward pass calculates an activity's late dates 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] Late Finish - Duration + 1 = Late Start

Introduction

Introduction

Total Float :
- The amount of time an activity can slip from its early start without
.delaying the project Finish Date
The difference between an activity's late dates and early dates.
- Activities with zero Total Float are critical
You cannot edit an activity's float values direct
Late date - Early date = Total Float (TF)

Introduction

:Total Float Value


: Positive FloatProject/Activity in good situation
: Zero FloatProject/ Activity is critical
: Negative FloatProject/ Activity is extremely critical

Introduction

Who Owns Float ?!!


- Debatable Issue: Case Law does not provide consensus
- Best practices:
50% owned by the Contractor and 50% owned by the Client/Employer

Introduction

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
- It is very important to monitor in packages/multi contractor environment

Free Float (FF) =


Successor Early Start Activity Early Finish

DELAY
Definition
the lack of performance or the extension of time required to complete a project that results from unexpected events; may be caused by the contractor, the owner, third parties, or by unanticipated natural
or artificial site conditions
. Is an act or event that extends the time required to perform tasks or activities under a Contract

.It is usually reflected as additional days of work or as delayed start of activities


.May or may not include change(s) in the scope of work of activity(s) or the Contract

. May or may not shift the over all completion date of the contractor the entire scope completion date
May or may not be on the critical path

Types Of Delay

Types Of Delay

Delay

InExcusable
N/N

Excusable
(EX)
Non
Compensab
le
(EN)

Compensa
ble
(EC)
Concurrent
Delay

NonConcurrent
Delay

Pacing
Delay

Types Of Delay

:Types of Delays
Excusable Delays
In-Excusable Delays
Compensable Delays
Non-Compensable Delays
Concurrent delays
Pacing Delays

Types Of Delay

:In Construction Industry, Delays are known to be classified as


Excusable Delays [ED]
Delays that are not caused by the Contractors action or inactions, but occur as a result
of events beyond the Contractors control
as used in the schedule impact analysis techniques, a delay not attributable to either
the contractor or owner
Such delays entitle the Contractor to an extension of time (if the contractual completion
)date of the project is affected as a result of occurrence of the excusable delay event
Might be compensable or non-compensable delays

In-Excusable Delays
, 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 Compensable Delays (E/C)


, 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
Excusable delays that are caused by neither of parties
.or (both parties in case of concurrent delays)) Contractor and Employer

Both parties have been affected by the delay


Only extension of time is warranted (without compensation) to eliminate
.the Contractors liability for Liquidated Damages
. Generally both parties are precluded from the recovery of the delay damages
Each party bears his costs incurred as a result of non-compensable delays
. 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
Delays might, or might not be related
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
It is usually disputed issue as no contractual cover for such decision

. 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

Events that cause contractors delays


Poor workmanship that causes rework Failure to supply the Four Ms: Money, Materials, Machinery, Manpower Failure to coordinate subcontractors and lower-tier subcontractors Failure to perform job site investigate (pre-bid visits and geotechnical investigation) Project Manager or Superintendents inability to manage crews General work slowdown; over-estimated productivity of crews ; Lack of construction know-how contractor does not know what they are building, or not know how to build it
Failure to account for normal weather Failure to follow contractual obligations -

Causes of Schedule Impacts

Events that cause Owner Delays


Disruption
Additional Quantity
Differing Site Conditions

Third Party / Force Majeure


, Force Majeure schedule impacts are commonly known as unforeseen events .causes beyond the contractors control, and events without fault or negligence
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 enemyFires
Strikes
-

Examples of Delays

Examples of Owner - Caused Delays


Site accessDiffering site conditions

Shop drawing approval

Design errors and omissions

Extra work / change orders

Failure by owner to timely provide materials


Changed conditions, e.g., working hour restrictions
Work suspension

Examples of Delays

Examples of Contractor - Caused Delays


Procurement/Submittal problems (mat. & equip.)
Subcontractor delays

Lack of adequate resources (labor, material, equipment)


Poor work sequencing
Lack of productivity
Rework

Financial difficulties

Examples of Delays

Examples of Third - Party Delays


Permit acquisition
Utility relocations

Adjacent contractors
Government Actions/Inactions

Examples of Delays

Parties Responsible for Delay


Contractor
Owner

Subcontractors

Suppliers

Labor unions

Utility companies
Nature

TYPES OF DELAYS - RELATED CONTRACT CLAUSES


TYPES OF DELAYS - RELATED CONTRACT CLAUSES
Clause 2.1: Right of Access to the Site
Clause 2.5: Employers Claim
Clause 4.2: Performance Security
Clause 4.7: Setting Out
Clause 4-12: Unforeseeable Physical Conditions
Clause 4-24: Fossils
Clause 7.4: Testing
Clause 8.4: Extension of Time for Completion
Clause 8.5: Delays caused by Authorities
Clause 11.3: Extension of Defects Notification Period
Clause 11.4: Failure to Remedy Defects
Clause 13.3: Variation Procedure
Clause 13.7: Adjustments for Changes in legislations
Clause 16.1: Contractors Entitlement to Suspend the Works
Clause 16.2: Termination by the Contractor
Clause 17.4: Consequences of Employers Risks
Clause 19: Force Majeure
Clause 20.1: Contractors Claims

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 2.1: Right of Access to the Site


The Employer shall give the Contractor right of access to, and possession of, all
.parts of the Site within the time (or times) stated in the Contract Data
If the Contractor suffers delay and/or incurs Cost as a result of a failure by theEmployer to give any such right or possession within such time, the Contractor shall
give notice to the Engineer and shall be entitled subject to Sub-Clause 20.1
:[Contractors Claims] to
, a) an extension of time for any such delay
if completion is or will be delayed, under Sub-Clause 8.4 [Extension of Time
, for Completion]
.payment of any such Cost plus profit, which shall be included in the Contract Price) b

if the Employers failure was caused by any error or delay by the Contractor, including
, an error in, or delay in the submission of, any of the Contractors Documents

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 2.5: Employers Claims


. the Employer or the Engineer shall give notice and particulars to the Contractor
However, notice is not required for payments due under Sub-Clause 4.19 [Electricity, Water and Gas], under SubClause 4.20 [Employers Equipment and Free-Issue Materials], or for other services requested by the Contractor
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

Clause 4.2: Performance Security


The Contractor shall obtain (at his cost) a Performance Security for proper performance, in
. the amount and currencies stated in the Contract Data
.If an amount is not stated in the Contract Data, this Sub-Clause shall not apply
The Contractor shall deliver the Performance Security to the Employer within 28 days after receiving the Letter of Acceptance, and shall send a copy to the Engineer
The Contractor shall ensure that the Performance Security is valid and enforceable until the .Contractor has executed and completed the Works and remedied any defects
The Employer shall return the Performance Security to the Contractor within 21 days .after receiving a copy of the Performance Certificate

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 4.7: Setting Out


The Contractor shall set out the Works in relation to original points, lines and levels of .reference specified in the Contract or notified by the Engineer
The Employer shall be responsible for any errors in these specified or notified items of reference, but the Contractor shall use reasonable efforts to verify their accuracy before they are
.used
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

Clause 4-12: Unforeseeable Physical Conditions


In this Sub-Clause, physical conditions means natural physical conditions and
manmade and other physical obstructions and pollutants, which the Contractor
encounters at the Site when executing the Works, including sub-surface and
.hydrological conditions but excluding climatic conditions

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 4-24: Fossils


All fossils, coins, articles of value or antiquity, and structures and other
remains or items of geological or archaeological interest found on the Site shall be placed under
.the care and authority of the Employer
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

Clause 7.4: Testing


This Sub-Clause shall apply to all tests specified in the Contract, other than the Tests after

.Completion (if any)


The Contractor shall agree, with the Engineer, the time and place for the specified testing of any .Plant, Materials and other parts of the Works
The Engineer may, under Clause 13 [Variations and Adjustments], vary the location or details of .specified tests, or instruct the Contractor to carry out additional tests
If these varied or additional tests show that the tested Plant, Materials or workmanship the cost of carrying out this Variation shall be borne by the Contractor is not in accordance with the
.Contract, notwithstanding other provisions of the Contract
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

Clause 8.4: Extension of Time for Completion


The Contractor shall be entitled subject to Sub-Clause 20.1 [Contractors Claims] to
an extension of the Time for Completion if and to the extent that completion for the purposes of SubClause 10.1 [Taking-Over of the Works and Sections] is or will be delayed by any of the
:following causes
a Variation or other substantial change in the quantity of an item of work included in the Contract ) a(
a cause of delay giving an entitlement to extension of time under a Sub-Clause of these) b(
,Conditions
,exceptionally adverse climatic conditions) c(
Unforeseeable shortages in the availability of personnel or Goods caused by epidemic or ) d(
governmental actions, or
any delay, impediment or prevention caused by or attributable to the Employer, the Employers) e(
.Personnel, or the Employers other contractors

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 8.5: Delays caused by Authorities


:If the following conditions apply, namely
the Contractor has diligently followed the procedures laid down by the relevant legally ) a
,constituted public authorities in the Country
these authorities delay or disrupt the Contractors work, and ) b
(
, the delay or disruption was Unforeseeable) c
(

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

Clause 11.3: Extension of Defects Notification Period


The Employer shall be entitled subject to Sub-Clause 2.5 [Employers Claims]
to an extension of the Defects Notification Period for the Works or a Section if and to the
extent that the Works, Section or a major item of Plant (as the case may be, and after
taking over) cannot be used for the purposes for which they are intended by reason
. of a defect or by reason of damage attributable to the Contractor
.However, a Defects Notification Period shall not be extended by more than two years

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 11.4: Failure to Remedy Defects


If the Contractor fails to remedy any defect or damage within a reasonable time, a date may be
fixed by (or on behalf of) the Employer, on or by which the defect or damage
.is to be remedied. The Contractor shall be given reasonable notice of this date
If the Contractor fails to remedy the defect or damage by this notified date and this remedial work was to be
executed at the cost of the Contractor under Sub-Clause 11.2
:the Employer may (at his option)], Cost of Remedying Defects[
Carry out the work himself or by others, in a reasonable manner and at the Contractors cost, but the- 1
Contractor shall have no responsibility for this work; and the Contractor shall pay to the Employer
;the costs reasonably incurred by the Employer in remedying the defect or damage
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

Clause 13.3: Variation Procedure


Each Variation shall be evaluated in accordance with Clause 12
[Measurement and Evaluation ], unless the Engineer instructs or approves otherwise in

.accordance with this Clause


Clause 13.7: Adjustments for Changes in legislations
The Contract Price shall be adjusted to take account of any increase or decrease in
Cost resulting from a change in the Laws of the Country (including the introduction of
new Laws and the repeal or modification of existing Laws) or in the judicial or official
governmental interpretation of such Laws, made after the Base Date, which affect the
.Contractor in the performance of obligations under the Contract

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 16.1: Contractors Entitlement to Suspend the Works


the Contractor may, after giving not less than 21 days notice to the Employer,
suspend work (or reduce the rate of work) unless and until the Contractor has received the
Payment Certificate, reasonable evidence or payment, as the case may be and as described in
.the notice
If the Contractor subsequently receives such Payment Certificate, evidence or payment (as
described in the relevant Sub-Clause and in the above notice) before giving a notice of
.termination, the Contractor shall resume normal working as soon as is reasonably practicable

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 16.2: Termination by the Contractor


the Contractor does not receive the reasonable evidence within 42 days after giving notice under) a(
Sub-Clause 16.1 [Contractors Entitlement to Suspend Work] in respect of a failure to
,comply with Sub-Clause 2.4 [Employers Financial Arrangements]
, the Engineer fails, within 56 days after receiving a Statement and supporting documents) b
,to issue the relevant Payment Certificate

the Contractor does not receive the amount due under an Interim Payment Certificate within ) c
,days after the expiry of the time within which payment is to be made 42
the Employer substantially fails to perform his obligations under the Contract in such manner
. as to materially and adversely affect the economic balance of the Contract

(
)d (

,the Employer fails to comply with Sub-Clause 1.6 [Contract Agreement] or Sub-Clause 1.7 [Assignment] ) e (
a prolonged suspension affects the whole of the Works) f (
,the Employer becomes bankrupt or insolvent) g (
In the event the Bank suspends the loan or credit from which part or whole of the payments to the ) h (
,Contractor are being made
The Contractor does not receive the Engineers instruction recording the agreement of both Parties on
) i(
the fulfillment of the conditions for the Commencement of Works

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

Clause 17.4: Consequences of Employers Risks


If and to the extent that any of the risks listed in Sub-Clause 17.3 above results in loss
or damage to the Works, Goods or Contractors Documents, the Contractor shall
promptly give notice to the Engineer and shall rectify this loss or damage to the extent
.required by the Engineer

Clause 19: Force Majeure


,which is beyond a Partys control) a

which such Party could not reasonably have provided against before entering into the Contract ) b
which, having arisen, such Party could not reasonably have avoided or overcome, and ) c
.which is not substantially attributable to the other Party) d

TYPES OF DELAYS - RELATED CONTRACT CLAUSES

. Clause 20.1: Contractors Claims


This Clause organizing all aspects for Contractor Claims
timing, types and all conditions for the approval of claims

?How Do Delays Arise

:Delays Originate From One Of Two Sources


Within the Performing Organizations control
Contractors delay in ordering material after approval is granted

Contractors delay in executing critical activity after all related requests are released
. Factors beyond the Performing Organizations control
Adverse weather conditions
Labor strikes

Changes in legislation
Force Majeure

Analyzing Delays

?How to Analyze Delays


: To Analyze Delays you should
Clearly define all causes of Delays and/or event giving rise to claim. that occurred during the analyzed period
.Determine to which type of delays each event is related Include the delay event(s) to the Time Schedule of the Project and determine
.the effect of such event(s) on the contractual completion date of your project

Techniques to analyze delays

, There are Several techniques to analyze delays


:but the most commonly used are
As Planned Vs. As built Comparison Method (Total Time Approach)The Impacted as Planned Method ( What If Approach)
The Collapsed as Built Method (But For Approach)

The Contemporaneous Period Analysis Method (Windows Approach)

As Planned Vs. As built Comparison Method


(Total Time Approach)

. Compare the as planned Vs. As built Schedule


. It assumes that the party uses the method did not cause any delay
.all delays have been cause by the other party

As Planned Vs. As built Comparison Method


(Total Time Approach)

:To carry the analysis


.a- Recover your baseline(as planned) schedule
.b- Prepare as built schedule
.c- Add delays to the as built schedule
.d- Mathematically calculate the difference in the two completion dates

As Planned Vs. As built Comparison Method


(Total Time Approach)

Example

As planned (Baseline)schedule shows total project duration of 10 months


As built schedule reflects total project duration of 20 months
The total delays tracked will be
As-Built Project Total Duration As Planned Project Total Duration=
months 10 months = 10 Months 20=

As Planned Vs. As built Comparison Method


(Total Time Approach)

As Planned Vs. As built Comparison Method


(Total Time Approach)

Strengths

Weaknesses

Easy to apply
Straight forward
Simple mathematical difference calculations

Considers only one party delays


Do not considers time of occurrence of delay event or type of delay
Assumes the baseline is accurate
Might be rejected by arbitrators or courts

The Impacted as Planned Method


(What If Approach)

Use the baseline schedule


Impact the schedule with delays
To examine the effect of
Contractors delays. Impact the baseline schedule with Contractors delay events

The Impacted as Planned Method


(What If Approach)

,Employers Delays

.Impact the schedule with Employers Delays


: To conclude the delay period
Do mathematical sum between the baseline completion date and impacted
as planned schedule completion date

The Impacted as Planned Method


(What If Approach)

As-Planned
Schedule
Determined the Critical
Path in As-Planned
Schedule

Delay Events
Sort Delay Events on
a time manner

First
Delayed
Event
Impact the As Planned Critical
Path With all delayed Events on a
time manner

NN
LD = the different in project
completion dates of As-Planned
schedule before and after the
Impact

Securities delay
events type

Next delayed
event

End

EC
CD = the different in project
completion dates of As-Planned
schedule before and after the
Impact

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
Employer Caused Delays = 25 -10= 15 months this is will be compensable delays

Contractor Caused Delays= 25 -20= 5 months , this will be entitled for liquidated damages

The Impacted as Planned Method


(What If Approach)

, After Impacting the baseline schedule with Contractors delays [B]


project duration tends to be 23 Months
:Therefore
.Contractor Caused Delays = 23 -10= 13 months this will be entitled for liquidated damages .Employer Caused Delays= 23 -20= 3 months , this will be compensable delays -

The Impacted as Planned Method


(What If Approach)

Strengths

Can be prepared quickly


)providing that all required data is available
(
Easy Mathematical calculations to represent net delays
. It assumes that the as planned schedule is perfect
. It assumes that the Contractor always follows the original plan
It assumes nobody responsible for delays except the party who is doing the analysis

Weaknesses

As planned logic usually amplifies the effect of delays


.because of various simple assumptions the planner may take during planning
. It may ignore what actually happened on the project
Thats why some Engineers and arbitrators consider this method
argumentative rather than analytical technique

The Collapsed as Built Method


(But For Approach)
A retrospective schedule impact analysis technique that apportions responsibility for each
party by removing all sources of each delay (owner, excusable, contractor) to quantify global
impact

Have your as built schedule completed


Include all delay activities
.

Analyze and remove all apparent Employer caused delays

. Collapse the Schedule


The result should be the schedule that the Contractor should have followed
.

during the course of execution of the project

Calculate Employer caused delays, Contractor caused delays and concurrent delays

The Collapsed as Built Method


(But For Approach)

Note
The but for schedule results from removing all owner
. caused delays that affect the as built critical path
The amount of Compensable delays is the difference in
time between the actual completion date shown in the
As-built schedule and the completion date shown in
.the but for analysis

The Collapsed as Built Method


(But For Approach)

As-Built
Schedule

Delay Events

Determined the Critical


Path in As-Planned
Schedule
EC

Sort Delay Events on


a time manner
Classify delay
events type

NE

EC

NE

Collapse all EC delayed events


from As-Built Schedule during
the window Period

Collapse all NE delayed events


from As-Built Schedule during
the window Period

CD = the different in project


completion dates of As-Built schedule
before and after Collapse

CD = the different in project


completion dates of As-Planned
schedule and As-Built Schedule

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)

Strengths

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
. Reliable

. Considers nobody to be blamed for the delay but the Employer


. Do not put delays in timely sequence as when they have occurred
. Can be considered as argumentative rather than analytical

Weaknesses

. Not as easy to prepare as it shows

The Contemporaneous Period Analysis Method


(Windows Approach / CPM)

a schedule impact analysis technique applied at the time of the potential


schedule impact

The Contemporaneous Period Analysis Method


(Windows Approach / CPM)

:To carry out this analysis#


Get your as planned - baseline schedule ready
Select reliable window periods to analyze
Enter actual project progress and delay activities to copy of the original baseline schedule
.using contemporaneous project documents for the first window period
Calculate the schedule to analyze delays for the first window period Calculate the Employer
caused delays, Contractor caused delays and concurrent delays for the first window
period
Copy the schedule to use as bases for the second window run

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


Delay Events

As-Planned Schedule

Logic Changes

Define window Period

1stst
Window

Adjust the As-Planed Schedule with any changes of


Adjustthe
thelogic
As-Planed
with
any changes of
during Schedule
the window
Period
the logic during the window Period

EC

Classify delay events for


the window period

EC
Impact the Adjusted AsPlanned Schedule
with all NE and EN delayed
events up to the beginning of
the window period
Impact the Adjusted AsPlanned Schedule
with all EC and EN delayed
events up to the end of the
window period

EN
EN

NE
NE
Impact the Adjusted AsPlanned Schedule
with all NE and EN delayed
events up to the beginning of
the
windowAs-Planned
period
Impact the
Adjusted
Schedule
with all NE and EN delayed events up to
the beginning of the window period, and
Only all NE delayed events that were
happened during the window period
CD = the different in project
completion dates of As-Built
schedule before and after Collapse

CD - The different of project


completion dates between the
.two impacted schedule
Next
Window

The Contemporaneous Period Analysis Method


As-Planned
Schedule

Delay Events
1stst
Window

Update the As-planned with As-Build data up to the


Update the
As-planned
As-Build
data up to the
beginning
of thewith
window
period
beginning of the window period

EC

Classify delay events Type

NE

EC
Collapse all EC delayed
events
from As-Built schedule
CD = The different in project
completion date of As-built
schedule before and after the
.collapse

NE

EN

Next
Window

End

Collapse all NE
delayed events
from As-Built
.Schedule
LD =The different in project
completion date of As-built
schedule before and after
.the collapse

The Contemporaneous Period Analysis Method


As-Planned Schedule

Delay Events

Logic Changes

Define window Period

1stst
Window

Update the As-Planned schedule with As-Built data up to


Update the .As-Planned
schedule
As-Built data up to
the end of the
windowwith
period
.the end of the window period

Non Critical

Critical

Classify delay event for


the window period
EC

Classify delay event for


the window period
EN

EC
CD = Delayed events

NE
NE

EN
LD = Delayed events
Check visually for
concurrent delay
Next
Window

End

The Contemporaneous Period Analysis Method


(Windows Approach / CPM)

Strengths

, 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
Puts all delays in the context of time, place and actual conditions of the project
Periodical runs allows easier documentation

Not as easy as it sound s to be utilized

Weaknesses

The most time consuming schedule delay analysis

Which Technique to Use

: The Choice of technique depends on

.Type and quality of Data available- Type and quality of Documentation available.
- Capacities of the analyst.
- Capacities of the reviewer or who is going to prepare the counter claim.
- Complexity of the project.
- Complexity of the delays tracked.

CASE
STUDY
NO.1

CASE
STUDY
NO.1