Delay Analysis

By Bruce Stephan I. Introduction A. Most construction disputes involve delay B. Each critical delay event should be analyzed C. Proving cause and effect is essential D. A convincing presentation is required

II. Delay Claims A. Generally involves gray area B. Usually involves elements difficult to prove 1. Suspended/Disruption of activities 2. Out-of-sequence performance of work 3. Acceleration directed or constructive 4. Productivity losses 5. Compensable extended duration of project C. CONTRACT DELAYS CONTRACTOR DELAYS Lack of proper resources Differing Site Conditions Lack of proper planning Underestimation of duration Material delivery delays Other Prime Contractor delays Subcontractor delays Failure to follow schedule Late site access Later permits Acts of the Government Acts of the State Acts of others beyond parties control Utilities Design Changes Suspension Weather Labor Strikes OWNER DELAYS THIRD PARTY DELAYS (GR 8.10) Acts of God

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Delay Analysis
By Bruce Stephan 1. ** Note that the Owner may be due a credit for overhead or other timerelated costs when an event occurs which shortens the Contract Time. Type Of Delay Cause Of Delay Time Kor Owner

Extension Delay Delay Costs INEXCUSABLE DELAYS EXCUSABLE DELAYS Non-compensable Concurrent delays, 3d Party & Force Majeure Compensable Due solely to Owner Yes Yes No Yes No No Outside control of Contractor See below Due solely to contractor No No Costs Yes

III. Schedule Analysis Methods A. Total Time approach B. But-For approach (Collapsed As-Built) C. Impacted As-Planned D. Should-Have-Been approach (Acceleration) E. Window Analysis

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Delay Analysis
By Bruce Stephan

IV. Requests For Time

ORIGINAL SCHEDULE

Contract Finish

WINDOWS ANALYSIS
Impacting events

Requested Time Extension

schedule in effect at time of delay

TOTAL TIME APPROACH

as-built schedule

Actual Finish

V. Windows Method - Recognized Standard For Delay Analysis A. The impact of each change, or delay, on the previously charted sequences must be fitted into the network. . . . Activities that were not critical prior to the new event may be rendered critical; and conversely, formerly critical activities may develop float. Whether the change or delay affects the critical path must be determined on the basis of conditions existing immediately prior to its occurrence. Norair Engineering Corp., ENG BCA Nos. 3804, et al., 90-1 BCA P 22,327 at p. 112,205 VI. Delay Analysis Windows Methodology A. Research Delay 1. Read Contractors Claim 2. Compare Baseline to As-Built Schedule 3. Talk to Field Personnel, Designer, Owner, Contractor 4. Analyze schedule reports to determine timing of delay 5. Review field reports, correspondence, meeting minutes 6. Using the information gained:

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Delay Analysis
By Bruce Stephan 7. Determine start and end dates of delay or extra work 8. Determine affected activities 9. Create a chart summarizing your findings 10. Baseline/As Built

B. Determine start date for delay & select schedule 1. Determining proper schedule to use for analysis a) Use schedule in effect at start of delay b) Determining delay Start is subject to negotiation c) Consumed float automatically accounted for d) Time Extension measured from current delay (1) Presumes any delay to that was caused by other party e) May have to create schedule if not updated 2. Methodology for Creating Schedule Updates (if needed)

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Delay Analysis
By Bruce Stephan
Create Updates by copying revised baseline and moving

Revised Baseline
Revise logic Remove Constraints

data date to desired period

Unimpacted

Unimpacted Update 2

Unimpacted Update 3 Copy Unimpacted Schedule and add delay

Baseline

Update 1

As Built
Automatically transfer actual starts & finishes for select periods

Impacted Update 3

activity

Move data date Input Actual Starts

& Finishes (based on daily reports)

C. Verify schedule update and modify as needed 1. Schedule updates may need to be revised if: a) Does not reflect how work was planned b) Baseline logic improperly revised c) Constraints affect schedule calculation d) Actual starts and finishes are incorrect e) Prior impacts analyzed in earlier period (1) Adjust Milestones to reflect prior time adjustments (2) Include subnets for all delays previously analyzed 2. How to determine if revision needed a) Compare baseline and latest schedule update b) Check impacted result against as-built c) Talk to field personnel familiar with work 3. Sample Schedule Needing Revision

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Delay Analysis
By Bruce Stephan
The longest path goes through kitchen work. This path was driven by a constrained start and a 10-day lag The schedule did not contain a contractually-required logic tie showing the B Wing work done by the end of summer recess. However, if the tie were made the schedule would have incorrectly shown a very late finish In the original schedule, all the B-Wing activities were lumped together. However, only the work east of the corridor had to be done by the end of Summer Recess

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Delay Analysis
By Bruce Stephan

The longest path goes through kitchen work. This path was driven by a constrained start and a 10day lag

4. Thorough Document Revisions

A report of all changes is included as Attachment A

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Delay Analysis
By Bruce Stephan D. Add delay activities to show impact to schedule E. Determine successor and tie in to new activity

Steel Supplier submitted its steel shop drawings on 4/17, and expected approval 4/24. Design changes and a lack of dimensions delayed approval until 6/25. This caused a 41-day slippage to Project Completion (11/16/0112/27/01)

F. Calculate and measure impact to project completion

LEGEND: Yellow bars = Un-impacted schedule Pink bars =Impacted schedule Black bars = As-built schedule

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Delay Analysis
By Bruce Stephan G. Concurrent Delay Analysis 1. Repeat the analysis for other sides delays a) Limit to critical delays 2. Hard to determine if one delay tracking to other 3. Does not have to be during same time period H. Verify dates against as-built & analyze mitigation

Calculated time is later than actual Completion date

I. Consider other options 1. No cost logic changes (preferential logic) 2. Low cost mitigation (2nd crew, equipment, etc.) 3. Acceleration (overtime, etc.) 4. Re-define Interim Milestone (defer scope) 5. Transfer scope to follow-on Contractor Obviously, these are only useful if work is ongoing

VII.

Dispute Resolution

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Delay Analysis
By Bruce Stephan
CHANGE ORDER/CLAIM ENTITLEMENT GRADIENT

CLEAR ENTITLEMENT

DEBATABLE ENTITLEMENT

NO ENTITLEMENT

A. Negotiation Strategies 1. Inform client/management of 3 possible dollar amounts a) Starting Position (white only) b) Realistic settlement offer (middle of grey) c) Final offer (all gray and white- no black) 2. Get Independent evaluation of position 3. Be prepared to give something away VIII. Summary A. Run comparisons and challenge client B. Use Windows Analysis C. Schedule Update just prior to delay D. Show Causation E. Consider Concurrency F. Compare results to As-Built G. Consider Alternatives to extending time

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