What is a delay?

A delay can mean different things to different people. A delay could be in:

• Critical or Non-Critical Activity Start
• Critical or Non-Critical Activity Finish
• Project Completion
• A milestone

Metaphorically speaking, a delay is an illusion – it doesn’t exist. Some plants grow slower than others. Some people eat slower than others. It takes time to go from point A to point B. Is there a delay here? No, it is just the natural course of execution. Humans, however, love to put labels and make a meaning of everything. A good example of that is labeling delays in construction projects. The only thing that allows us to determine a delay in construction is having a baseline schedule in place. Without a baseline, construction projects will, like everything else in life, just follow the natural course of execution. I wanted to give this introduction to emphasize the importance of the baseline schedule in identifying and managing project delays.

How do the majority of planning engineers manage schedule delays?

In my experience, many planning engineers intentionally make regular schedule changes in the schedule updates to recover the delays and show the project is on track. This is not a good practice. In fact, the schedule changes should be kept to a minimum, just enough to ensure the reliability of the schedule and not to recover the delays. Otherwise, the baseline becomes useless and hence, we lose the value of the only tool that helps us define delays. If we continue to show that the project is on track, why do we even need a baseline in the first place? When you forecast a delay, this suggests that there is something wrong and requires your attention. You might need to increase the manpower or expedite the material delivery.

How should we develop a recovery schedule?

When the delays become significant, it becomes very hard to follow the baseline schedule. This is when a recovery schedule is needed. A recovery schedule reflects the Contractor’s corrective actions and recovery measures to ensure the timely completion of the project. This may involve increasing manpower, crashing and fast-tracking for the remaining work of the contract to recover the delays. However, recovery schedules should not be frequently developed because in this case, you are making more changes to show the project is on track, which as I mentioned before, is not a good practice. For example, in a project that is 2 years long, it is not recommended to develop a recovery schedule every month but it might be a good idea to create one only when the delays have become significant in a way that makes it very hard to use the previous recovery schedule as a practical reference point. There are so many variables that should be considered to determine the need for a recovery schedule but I just wanted to give you an idea about the concept. The recovery schedule topic needs more than one article to fully explain it.

The scariest word in construction is “delay” because of the associated consequences that can include liquidated damages, job loss, prolongation cost, arbitration, court, market reputation, etc. Here are a few points that should be considered when a recovery schedule is developed.

– The recovery schedule should be developed when there is a significant delay and it becomes impractical to follow the baseline.

– The baseline schedule remains the ultimate and most important reference point for progress measurement.

– The progress can be reported against both the baseline and the recovery schedule to see how “effective” your recovery effort is. However, under any circumstances, the performance measurement against the baseline must be shown in all reports including the official submissions.

– Frequent recovery schedules should not be developed. Otherwise, the recovery schedules and the baseline lose their value. As a general practice in planning, schedule changes should be kept to a minimum.

Note that everything that has been discussed so far assumes that the delay is the Contractor’s responsibility. In other cases, the delay is beyond the reasonable control of the Contractor and it becomes impossible to complete the project on time. Therefore, an extension of time claim might be needed.

Embrace delays

The best way to overcome your fear of something is to face it. Instead of hiding behind some logic changes that will give you a temporary sense of relief, we should develop effective coping mechanisms and recovery measures. We should approach schedule delays with a healthy mindset. Take the time to analyze the situation and develop feasible corrective actions. Modern scheduling software tools such as Primavera P6 and MS Project have serious limitations in managing projects so you will eventually need to do a lot of work using other tools such as Excel or Power BI to support your recovery effort.

Regards,

Osama Saad, MBA, PMP, PSP, CCP, PMI-SP

The post Managing Schedule Delays appeared first on Smart PM Blog.

MIP 3.8: Collapsed As-Built, Single Simulation, Modeled, Subtractive.

MIP 3.9: Collapsed As-Built, Multi Simulation, Modeled, Subtractive, Periodic.

What will you learn?

• The Source Validation Protocols (SVPs) and the guidelines of both methods.
• How to perform the analysis STEP-BY-STEP.
• The advantages, disadvantages, uses and limitations of these methods.

Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

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The post MIP 3.8 & 3.9: Collapsed As-Built Delay Analysis Method appeared first on Smart PM Blog.

MIP 3.6: Impacted As-Planned

What will you learn?

• The Source Validation Protocols (SVPs) and the guidelines of both methods.
• How to perform the analysis STEP-BY-STEP.
• The advantages, disadvantages, uses and limitations of these methods.

Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

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The post MIP 3.6: Impacted As-Planned Delay Analysis Method appeared first on Smart PM Blog.

MIP 3.4: Contemporaneous “Split” (Bifurcated Contemporaneous Period), Observational, Dynamic.

MIP 3.5: Modified / Reconstructed Updates, Observational, Dynamic.

What will you learn?

– The Source Validation Protocols (SVPs) and the guidelines of these methods.

– How to perform the analysis STEP-BY-STEP.

– The advantages, disadvantages, uses and limitations of these methods.

Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

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The post MIP 3.3, 3.4: dynamic As-Is & Modified Delay Analysis Methods appeared first on Smart PM Blog.

MIP 3.1: As-Planned vs. As-Built, Observational, Single Base, Static, Gross

MIP 3.2: As-Planned vs. As-Built, Observational, Multiple base, Static, Periodic.

What will you learn?

The Source Validation Protocols (SVPs) and the guidelines of both methods.

How to perform the analysis STEP-BY-STEP.

The advantages, disadvantages, uses and limitations of these methods.

Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

Learn More!

Check out our comprehensive courses

The post MIP 3.1 & 3.2: As-Planned vs As-Built appeared first on Smart PM Blog.

In a nutshell, delay prevents the Contractor from completing the activity within the planned time frame.

However, disruption prevents the Contractor from completing the activity within the planned cost.

Watch the below video to learn more about the difference.

Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

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The post The difference between delay and disruption appeared first on Smart PM Blog.

Delay analysis from a scientific point of view

Explaining how the brain neurons work is far beyond the scope of this article although it might be interesting to learn how the human brain functions on your own. A project with 2 weeks of delay beyond the original completion date is just a conclusion that is similar to the accident damage you saw. We cannot understand the delay (damages) until we are provided with additional information which the brain can easily understand and verify. To evaluate the project delays, you need to develop a supportive argument that is similar to what the accident witness provided on a more complex level. You need to model the impact of delay events in logical steps as you progress throughout the project. You should also substantiate your pieces of evidence, demonstrate the cause and effect and follow all other best practices for a strong claim case. Moreover, you should present your claim in a way that is similar to the witness’ statement; a story that is easy and pleasant for the human brain to understand, follow and verify.

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Engineers’ way of thinking

Delay analysis is not difficult but most Engineers are used to having a binary way of thinking. Back in college, we evaluated our effort to solve a problem through a “final answer” which can be either right or wrong. An Engineer wants certain givens to carry out structural calculations and then determine the outcome that is either “safe” or “unsafe“. Delay analysis is not magic but has always been regarded as one of the top complicated topics in construction claims. In my opinion, the reason is that there is no “one size fits all” process to assess damages in construction projects. On the other hand, Engineers feel comfortable having a structured and systematic approach with expected binary results. For example, a colleague shows you how he demonstrates the cause and effect in his claims but his approach might be different from yours. Although you also address the cause and effect in your claim, you still feel something is missing or “imperfect“. When we experience similar feelings in life, our brain neurons try to re-arrange our thinking patterns in this area. As a result, we start questioning the whole process we develop our claims. Delay analysis is not a “one size fits all’ and there is no compulsory or standard approach for it. This is possibly why Engineers also hate marketing because it requires creativity, out-of-box thinking, testing different strategies and leaving your “perfectionism” behind.

How does the brain develop claim responses?

You need to use common sense, logic and fairness for both evaluating schedule delays and writing your narrative. Back to the accident example, there wasn’t a standard or must-follow approach to model the damages of this accident. Someone could just explain it using a combination of words and hand gestures. Another one might try to create a video that simulates what happened a few seconds before the accident. It doesn’t really matter what the person exactly did to convince you as long as it is an easy-to-follow and structured story that offers a logical conclusion. You might also have challenged the simulation and told the accident witness that the damage wasn’t so serious. The car must have run at a much slower speed to cause this amount of damage. This is exactly what a claim reviewer would argue with you. Your claim story just didn’t resonate with the entitlement you are asking for.

To sum up, there are some techniques that can help in your assessment but you are the author of the story. There is no perfect A to Z approach that has to be followed in every situation all the time. Determine what will work in your particular case and create your own story that is based on common sense and logic.

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Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

The post The Theory of Delay Analysis appeared first on Smart PM Blog.

Qualified planning engineers may prepare for such claim opportunities well in advance and even before any event has arisen. The necessity to keep a practical workable Program of Work requires regular “schedule maintenance” throughout the project. This maintenance is implemented through certain schedule changes that can cause radical alterations to the original schedule attributes (e.g. criticality level of network paths, total float amount, etc).

Only one schedule change can be enough to present new claim opportunities or even disqualify others and this where the black magic comes from. Moreover, such change(s) can allocate lower concurrent delays to Contractors and give them the opportunity to claim for a lot more prolongation costs. Planning engineers think that this is what it takes to prepare a strong claim case. However, in order for the Contractor to receive a favored response, a comprehensive claim has to be submitted for the Engineer’s evaluation.

In many cases, Contractors lack the appropriate skills to: incorporate relevant supporting records, present a clear demonstration and assessment of the “serious” losses or provide an adequate substantiation of the cause & effect. While Contractors can be actually entitled for Extension of Time and Prolongation costs, the quantitative evaluation might be biased. It takes a qualified practitioner with a demonstrated history of experience to accurately assess the damage but some Contractors lack such competencies in their own teams. That’s why lawyers, arbitrators and courts appointed experts are called up to continue the claim journey and go through the second half of the battle after the Contractor has completed the P6 work and submitted the initial claim case.

In my career, I have seen a huge gap between engineering practitioners and the extent to which they understand the construction law and practices which are mandatory to compile a well presented, structured, appropriately written and adequately substantiated claims. I could also see why construction law professionals are in high demand by Employers, Engineers, Main Contractors and Sub-Contractors. It is therefore recommended that you learn more about the construction law and arbitration procedures related to your jurisdiction or call up subject-matter experts early in the process to avoid wasting a lot of valuable time and incurring the associated significant costs.

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Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

The post The Dark Art of Construction Claims appeared first on Smart PM Blog.

Notices from the contractor’s perspective

In practice, the notice is meant to help both parties work together to mitigate the project delays toward the project’s success. However, Contractors look at notices as a burden and a task they wish they never have to do. The more critical delay events in a project, the more likely the Contractor will receive a favored response on its claims. So why would the Contractor become proactive to send effective notices and collaborate with the client to mitigate the impacts. However, modern construction contracts now outline strict requirements around the submission of notices. In case notices are not in compliance with the contract requirements, the contractor may lose its entitlements.

Notices are “Communications”

I also found that contractors tend to overlook the “communication” clause as per the contract before the notice is submitted. This clause answers key questions such as how the notice should be submitted and in which form. Contractors assume that it is enough that the Engineer is notified about the event but no attention is paid to how the notice should be communicated. For example, the event can be recorded in the minutes of meeting or highlighted as a part of an RFI or a submittal response. In this case, although the Engineer was notified of the event via such correspondences, the notice wasn’t in compliance with the contract requirements. FIDIC Red Book 1999 – Subclause 1.3 “communications“ clearly indicates the communication protocols for the notice submission. It outlines how the notice should be submitted and in which form. Similarly, some contracts have communication guidelines that should be read carefully.

If you are in doubt

Furthermore, the Contractor is often required to submit a Notice of Extension of Time claim within 28 days after the event has first arisen. In some cases, sufficient details haven’t been revealed to the Contractor yet about the nature of the event and the associated consequences. It is sometimes challenging to adequately analyze schedule delays and determine whether or not this event will have an impact within such a short time frame.

In such cases, I urge you to submit the claim notice anyway. According to FIDIC 1999 – Clause 20.1, the Employer is discharged from any liabilities if the Contractor failed to submit the notice. Hence, if more details have become available and there is no impact, the worst case is that the Employer will reject the notice. If it is the other way around, and the Contractor failed to submit the notice, the claim is void and the Contractor loses its entitlement.

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Regards,

Osama Saad, MBA, PMP, PSP, PMI-SP

The post Notices of Extension of Time Claims appeared first on Smart PM Blog.