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Construction Projects
COURSE CONTENT :
1- Introduction
2- What is Delay
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
scope of work or plan of action reasonably anticipated under the contract
Constructive Change –
a change that is not acknowledged by the owner as such when it occurs, but which nonetheless is a change
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 contractor’s 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 contractor’s 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.
Convenience Termination –
contract clause permitting the owner to terminate the contract at the convenience of the owner,
based on specific needs of the owner.
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 contractor’s original understanding of the project
and used as the standard by which progress is measured.
- The schedule that represents the Contractor’s Original Plan for completing the work. -
- Includes planned activities, durations and relationships, planned resources and any dates -
imposed by the Contract.
- Submitted for the Engineer’s 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 Contractor’s 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)
3 - External Relationship
Introduction
3 - External Relationships
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
1- Forward Pass :
- 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]
2 - Backward Pass
- 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
Excusable In-Excusable
Pacing Delay
(EX) N/N
Compensable Non
(EC) Compensable
(EN)
Concurrent Non-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
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 conditions…etc.
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 project’s 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
Contractor’s management takes a decision to de-accelerate non critical areas, due to the Employer’s
delays or Employer’s expected delays in critical areas, for the purpose of keeping pace with
Employer’s 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 contractor’s 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 owner’s 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.