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Delay Analysis Methods in Construction Projects
Delay Analysis Methods in Construction Projects
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 -
: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
: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
Introduction
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 -
Introduction
..Schedule must be
ReliableReflect the Intended Plan
Approved
Introduction
Schedule Manipulations#
.Reduced or Increased Activity duration.Manipulated in activities constraints
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
Introduction
Introduction
Introduction
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
Introduction
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
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
. 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-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
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
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
Delays#
A delay is an event that prevents the contractor from completing the work within the
contractually specified performance period
], Wickwire et al. 2003[
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
.
When this occurs, the contractor cannot perform work in the manner anticipated during bid
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[
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
Examples of Delays
Examples of Delays
Financial difficulties
Examples of Delays
Adjacent contractors
Government Actions/Inactions
Examples of Delays
Subcontractors
Suppliers
Labor unions
Utility companies
Nature
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
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]
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
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
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
Example
Strengths
Weaknesses
Easy to apply
Straight forward
Simple mathematical difference calculations
,Employers Delays
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
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
Strengths
Weaknesses
Calculate Employer caused delays, Contractor caused delays and concurrent delays
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
As-Built
Schedule
Delay Events
NE
EC
NE
End
Example
, If we use the same example
the as planned schedule shows project Duration of 10 months
.As built Project Duration = 20 Months
Contractors Delays = the difference between the collapsed schedule and the as planned schedule
.months, this is subject to Liquidated Damages 8 = 10 18
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
Weaknesses
Repeat this procedure for each window period tell the end of the project
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
As-Planned Schedule
Logic Changes
1stst
Window
EC
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
Delay Events
1stst
Window
EC
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
Delay Events
Logic Changes
1stst
Window
Non Critical
Critical
EC
CD = Delayed events
NE
NE
EN
LD = Delayed events
Check visually for
concurrent delay
Next
Window
End
Strengths
Weaknesses
.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