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Delay Analysis in Construction Contracts, 2nd Edition

ISBN: 978-1-118-63113-3
288 pages
April 2015, Wiley-Blackwell
Delay Analysis in Construction Contracts, 2nd Edition (1118631137) cover image

Description

The most significant unanticipated costs on many construction projects are the financial impacts associated with delay and disruption to the works. Assessing these, and establishing a causal link from each delay event to its effect, contractual liability and the damages experienced as a direct result of each event, can be difficult and complex.

This book is a practical guide to the process of delay analysis and includes an in-depth review of the primary methods of delay analysis, together with the assumptions that underlie the precise calculations required in any quantitative delay analysis. The techniques discussed can be used on projects of any size, under all forms of construction contract, both domestic and international.

The authors discuss not only delay analysis techniques, but also their appropriateness under given circumstances, demonstrating how combined approaches may be applied where necessary. They also consider problematic issues including ‘who owns the float’, concurrent delay, early completion programmes, and disruption. The book has been brought fully up to date, including references to the latest publications from the CIOB, AACEI and SCL, as well as current case law. Broad in scope, the book discusses the different delay analysis approaches likely to be encountered on national and international projects, and features practical worked examples and case studies demonstrating the techniques commonly used by experienced practitioners.

This is an invaluable resource to programmers and schedulers, delay analysts, contractors, architects, engineers and surveyors. It will also be of interest to clients’ professional advisors managing extension of time or delay claims, as well as construction lawyers who require a better understanding of the underlying assumptions on which many quantitative delay analyses are based.

Reviews of First Edition
"John Keane and Anthony Caletka are pukka analysts in that tricky area of delays, programming and extension of time. I highly recommend their book Delay Analysis in Construction Contracts. Buy the book." (Building Magazine, February 2009)

"The book′s stated purpose is to provide a practical guide for those interested in schedule delay analysis. It provides a good in–depth review of the most common delay analysis techniques.... An excellent book, full of practical tips for the reader and very timely in its publication. It is well worth the cost and a good read for anyone involved in schedule delay analysis." (Cost Engineering, February 2009)

It achieves in spades its stated aim of being a practical guide for contractors, contract administrators, programmers and delay analysts, as well as construction lawyers who require a better understanding of the underlying assumptions on which many quantitative delay analyses are based. (Construction Law Journal, 2009)

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Table of Contents

About the Authors ix

Preface to the Second Edition xi

Preface to the First Edition xiii

1 Introduction 1

1.1 General 1

1.1.1 Purpose of this book 2

1.1.2 Guidance 4

1.1.3 Construction planning and programming 5

1.2 Construction delays 6

1.2.1 Identifying delays 6

1.2.2 Analysing construction delays 7

1.2.3 Delay claim life cycle 9

1.3 Burning issues in delay analysis 10

1.4 Presentation and case study 11

2 Construction Programmes 13

2.1 Introduction 13

2.1.1 Planning, programming and project controls 13

2.1.2 Elements of a successful project 15

2.2 Planning and programming 16

2.2.1 Project planning 17

2.2.2 Work breakdown structure 18

2.3 CPM programming techniques: the fundamentals 21

2.3.1 Activity durations 22

2.3.2 Activity relationships 24

2.3.3 Event date calculations 28

2.3.4 Forward pass 30

2.3.5 Backward pass 32

2.3.6 Total float 34

2.3.7 Constraints 37

2.4 Baseline validation 38

2.4.1 Joint baseline review 38

2.4.2 Programme approval 38

2.4.3 The project baseline 41

2.5 Other planning techniques 41

2.5.1 PERT – Project Evaluation and Review Technique 41

2.5.2 Gantt charts (bar charts) 43

2.5.3 Line of balance 45

2.5.4 Critical chain method/theory of constraints 47

2.6 Why use CPM planning or scheduling techniques? 49

2.6.1 Project management 49

2.6.2 As-planned programmes 50

2.7 Project controls and the project control cycle 51

2.7.1 Progress monitoring 52

2.7.2 Process and analyse information – Earned Value Method 54

2.7.3 The cost and schedule performance curves 56

2.7.4 Time control 58

2.7.5 Programme updates 58

2.8 Records, records, records… 64

2.8.1 Electronic records: management and storage 66

2.8.2 Electronic records in practice 67

2.8.3 Document controls 68

2.9 Predatory programming practices 71

2.10 Guidance 72

3 Identification of Construction Delays 73

3.1 Establishing a basis for identifying delay 73

3.1.1 General requirements 74

3.1.2 Validation of an as-planned programme 75

3.2 Factual evidence and as-built programmes 77

3.2.1 As-built programme preparation 78

3.2.2 Summary 86

3.3 Identification of delay events 86

3.3.1 Delay identification 87

3.3.2 Recording delays 89

3.4 Identification and analysis of disruption 92

3.4.1 Disruption and delay 92

3.4.2 Calculating disruption 94

3.4.3 Establishing cause 95

3.4.4 Total cost claims/global claims 97

3.4.5 Measured mile 99

3.4.6 Graphical presentation 103

3.4.7 Summary 109

4 Analysis of Construction Delays 111

4.1 Introduction 111

4.1.1 The use of CPM techniques 111

4.1.2 Project planning software 113

4.1.3 Identifying delays: cause or effect? 115

4.2 Selection criteria and guidance 117

4.2.1 The SCL Delay and Disruption Protocol 118

4.2.2 The core statements of principle 120

4.2.3 AACEI Recommended Practice No. 29R-03: Forensic Schedule Analysis 124

4.2.4 Which technique to use under given circumstances 131

4.3 Summary 132

5 Delay Analysis Techniques 135

5.1 Introduction to delay analysis techniques 135

5.1.1 Additive methods of delay analysis 137

5.1.2 Impacted as-planned 137

5.1.3 Time impact analysis 142

5.1.4 Collapsed as-built 151

5.1.5 As-built based methods of analysis 159

5.1.6 Total time assessments (observational/static/gross) 162

5.1.7 As-planned versus as-built windows analysis 169

5.1.8 Contemporaneous windows analysis 172

5.1.9 Month-to-month update analysis 175

5.2 Summary 180

6 Problematic Issues 183

6.1 Introduction 183

6.2 Float and delay claims 183

6.2.1 General definitions: what is ‘float’? 183

6.2.2 How float is used 184

6.2.3 Float loss and the impact 187

6.2.4 Measurement of float loss 188

6.2.5 Who owns the float? 190

6.3 Concurrency 194

6.3.1 Definitions 195

6.3.2 Delay analysis and Concurrency 196

6.3.3 SCL Delay and Disruption Protocol 205

6.3.4 Delay scenarios 205

6.3.5 Common questions 208

6.3.6 Experience and common sense 209

6.3.7 The concept of pacing 210

6.4 Programme approvals and onerous specifications 211

6.4.1 Programme requirements, format and compliance 211

6.4.2 Approval or acceptance of construction programme 217

6.5 Acceleration and mitigation 218

6.5.1 Mitigation 218

6.5.2 Acceleration 219

6.5.3 Contractors’ right to early completion 221

7 Effective Presentation of Delay Analysis 223

7.1 Introduction 223

7.2 Case study: airport terminal expansion 223

7.2.1 Initial analysis by party-appointed planning experts 224

7.2.2 Using time impact analysis for prolongation 227

7.2.3 Tribunal planning expert’s contemporaneous approach 228

7.2.4 Runway Extension: are delays to the runway extension relevant? 230

7.2.5 Terminal Building: are delays to the terminal building relevant? 231

7.3 Float mapping: approach and methodology 231

7.3.1 Extracting float values 233

7.3.2 Creating a float map 233

7.3.3 Identify driving activities 236

7.3.4 As-built critical path 237

7.4 Demonstrating acceleration 246

7.5 Presentation skills: demonstrative evidence 248

7.5.1 Demonstration 250

7.5.2 Reconstruction 251

7.5.3 Weather 252

7.5.4 Summary 252

Appendix 255

Glossary 259

Table of Cases 267

Index 271

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Author Information

Dr P John Keane, PhD, MSc, FCIOB, FCIArb DipArb has 35 years’ experience in the construction industry and is currently principal of a private consultancy practice. Following training as a quantity surveyor, he graduated into construction and commercial management practice, subsequently holding executive directorships within contracting and professional consulting firms.

In the last 25 years John Keane specialised in the area of dispute resolution and has represented parties in arbitration, adjudication and mediation. He has extensive UK and international experience, particularly in the preparation and delivery of expert witness testimony with regard to delay and programming disputes. He is an experienced arbitrator, author, and speaker. He also lectures to undergraduate and post graduate students on construction law related topics.

Anthony F. Caletka, PE, CFCC, CCM is a civil engineer with over 25 years' experience in construction project and programme management, particularly on large civil engineering projects within the energy, mining, power, and utility sectors, and is a principal in a multinational professional services firm. He establishes governance frameworks, contract strategies, project control systems and tools aligned with global best practice which in turn contribute to the avoidance and resolution of disputes.

Tony is a recognised expert in critical path programming, forensic scheduling, earned value and risk management. He has extensive experience in the delivery of expert witness testimony and advising parties in all dispute resolution forums. He is a frequent speaker and lecturers to post graduate students on project management and forensic scheduling. He was a member of the drafting committee which produced the SCL Delay and Disruption Protocol.

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