Delay Analysis
How Does It Work?
- Construction projects continue to suffer delays.
- Things go wrong and the project’s completion date gets pushed back, with the question being is it a compensable or non-compensable delay.
- In practice, attempts are made to identify the causes of delays and schedules are modified to incorporate revised duration and new project time.
- The analysis itself is usually complex and can be aided by a computerized approach. This paper discusses different delay analysis techniques that are currently used by practitioners in the construction industry by asking the questions.
There are a variety of different approaches for analysing delay of which there are 5 main methods
- As Planned vs. As-Built
- As Planned Impacted
- Collapsed as-built
- Windows analysis
- Time impact analysis
Most delay analysis techniques have their critics and all should be used in the light of their weaknesses and limitations as well as their strengths.
How do we Interpret Delay in Relation to Construction?
Generally,
“Delay” = Impact to end date of contract
✔ But, must look to contract language
- “Delay” may = “impact to critical path” (longest path through the project)
- “Delay” may = “delayed early completion”
- “Delay” may = “float consumption” (Total & Free Float)
- “Delay” may = “start later than planned”
- “Delay” may = “disruption leading to impacts” (could affect activities with Float)
✔ “Delay” = Act or event which extends time required to perform or complete work of the contract
Manifests itself as additional days of work
How is Delay Analysis Conducted?
From project records & participants
- Ascertain & document facts & dates
- Apply facts to schedule impartially
- But, which schedule & in what manner?
- Calculate resulting impact to schedule
- Allocate responsibility for delay(s), if any
- Quantify time impacts by party
- Apply contract rules
Causes of Delay?
Generally, only 5 causes in contracts
- Owner Including agents and sub-contractors
- Contractor Including sub-contractors, suppliers etc.
- Both (Serial and/or Concurrent Delay) Owner & contractor responsible for delays or independent delays with potential combined effect
- Third Parties to the contract Companies and organisations not engaged by either the Owner or Contractor
- None of the above (Force Majeure – Leading to Delay)
Unforeseen event over which there is no control
Purpose of Delay Analysis
Purpose of schedule delay analysis is to determine…
What happened on the project?
- When & how did event(s) impact the schedule?
- Which party was responsible for the event(s)?
- Was any relief provided for in the contract for these event(s)?
- Was time or money owed?
Establishing The Basis For Measuring Performance/Impact On Programme
Determining The Method Of Analysis
Most delay analysis techniques have their critics and all should be used in the light of their weaknesses and limitations as well as their strengths.
There are a variety of different approaches for analysing delay of which there are 5 main methods i.e.
- As Planned vs. As-Built
- As Planned Impacted
- Collapsed as-built
- Windows analysisTime impact analysis
As Planned v As-Built
- The as planned v as-built, is as the title suggests is a comparison of the planned programme for the works against the as-built programme.
- This form of analysis is based on a simple graphical comparison of what was planned to happen and what actually happened.
- As planned v as-built is a method as a first step in constructing an analysis under the other techniques referred to above. •
Impact On Programme
As Planned v As-Built Programme
Sources of information
- The sources of information that were needed to produce the analysis for Whoever Ltd
- Accepted Baseline Programme. As-built vs. As Planned Programmes.
- Site visits to gain appreciation of the problems
- Dialogue/Email communication with past and present members of the Whoever Ltd team
- Previously published as-built programme progress records.
- Written Diary of Events
- Minutes of Progress Meetings
- Instructions from the Employer
- Production Rates achieved/non-performance
- Occurrence of Frustrated Access and how it impacted the programme.
- Interface with PFI’s and the interference it posed.
- Acceleration measures, increased resources.
- Photographic evidence.
To Persuade The Decision Maker
- Whoever Ltd must demonstrate the following;
- The As-planned schedule was reasonable & achievable
- That Whoever Ltd substantially followed the schedule logic
- That the Employer was responsible for the critical delay events
- That Whoever Ltd took reasonable mitigating action to deal with delay and disruption
- Whoever Ltd must demonstrate with reasonable accuracy the costs being claimed which are attributable to Employer delay events
Claim Entitlement
The Employer is obliged pursuant to the Key Objectives to provide an environment of reasonable certainty and stability to ensure that Whoever Ltd could plan and execute the Project in a manner which was economic and efficient to both parties.
By its actions and dealings with others the Employer contractors, the Employer caused delay and disruption to Whoever Ltd in the execution and completion of the Project.
The Employer’s actions have cost Whoever Ltd Time and Money
Conclusion
Outcomes
- Balanced view of Events in making a fair and reasonable assessment for claiming additional costs.
- Adding certainty and belief for recovering additional costs incurred by Whoever Ltd .
- A claim formulated in a clear and concise manner that the Employer can answer
- Establishment of the strengths and weaknesses of the historical data being researched by the claims team.
Review of the data gave an insight to:
- How long the project took by comparing actual performance against actual plans.
- The additional cost attributable to the delays.
- Where the difficulties arose
- Reviewing appropriateness and effectiveness of the decisions taken by the business during the project life cycle.
Dispute Resolution Commissions Undertaken by HPC Ltd
HPC Ltd have an excellent track record in dispute resolution cases; working alongside the following solicitor practices in settling disputes;
Herbert Smith LLP, Mayer Brown & Roe LLP, Eversheds LLP, Fenwick Elliot LLP, Fladgate Fielder LLP, Shadbolt LLP and Bond Pearce LLP & Lovell & Pitfield LLP.
HPC Ltd are familiar with the various forms of contract, namely; NEC3,FIDIC, ICE, JCT and PPP Contract.
HPC Ltd are familiar with the 5 main methods for analysing delays i.e.
- As Planned vs. As-Built
- Collapsed As Built
- As Planned Impacted
- Windows analysis
- Time impact analysis
Please speak to us for a free consultation we look forward to your call!