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Identify the 2 Potential Driving Factors for Your Project

A well-prepared construction schedule helps the project manager manage project tasks, other parties in the contract, and the various risks inherent in any project. Since all participants have some role in the successful project and some interests and risks at stake, it is important to bring each party into the planning and scheduling process. There are often many parties involved in the project management process and each one has their issues and risks to manage. For example, the project owner has a goal for a quality project delivered on time and within budget. Usually one or both of these issues drive the project finish from an owner’s perspective. Time is the driving factor when the owner is willing to accelerate a project (and pay for it) in order to meet a certain deadline. The budget is the driving factor when time extensions are granted instead of paying for acceleration costs.

What are the 2 potential Driving Factors for Your Project?

When project delays occur, it is important to clarify what the owner’s driving factor is in order to resolve schedule delay issues early. For example, if a delay occurs and the contractor accelerates to pick up time and, after the fact, submits a claim against the owner in order to recover the extra costs associated with the acceleration, the owner may respond that the budget was the driving factor and that a promptly submitted time impact analysis may have resulted in a time extension and no acceleration would have been necessary so the contractor bears the risk of those costs. Contractors often finish a project late when there were legitimate delays, only to find that a time extension is not granted at the end of the project because the driving factor for the project was time more than budget. Therefore, the owner argues that a promptly submitted time impact analysis would have resulted in an acceleration order at the owner’s expense in order to meet the construction completion milestone, so liquidated damages are enforced.

Well defined scheduling processes will give the contractor and owner an effective tool to identify these driving factors early in the project and resolve issues impacting these factors.

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CPM Scheduling – Why a Project Roadmap Is So Important

The role of CPM scheduling in the construction industry has increased significantly over the past couple decades. One reason for this is economic. Owners have become more demanding in their scheduling specifications in order to better monitor the project and meet funding requirements and budget projections. And tight competition and narrow profit margins have forced contractors to maximize efficiency through careful planning, scheduling, and coordination.

A second reason is liability. From claims preparation and dispute resolution to legal evidence in a trial, a well-designed and maintained CPM schedule can make or break the chances of recovering damages.

Most fundamentally, however, a well-designed and maintained CPM schedule is just good project management practice—it lays out the road map that tells you how to get from point A to point B, from project start to project completion.

CPM Scheduling – The Project Road Map

Growing up in my family meant road-trip vacations every summer. And, of course, we asked all the typical questions children ask after sitting for hours in a back seat. The “How many more miles?” and “When are we going to get there?” questions were most often responded to with a map highlighted along the shortest path of travel (the “critical path”), and we were encouraged to figure out the answers ourselves. We learned that we could use the red numbers along the highway to measure progress and project our arrival time (duration). We could measure our average speed by counting the miles traveled divided by the hours on the road (production). Taking our average speed we could calculate our arrival time based on remaining miles (projections). What’s more, if my father made a wrong turn or we experienced mechanical difficulties, all we needed was the map to determine where we were when we went off course, how long we were off, and when we were safely back on the right path. From there we could measure the impact of the mishap.

These maps were great management tools. Not only did my parents use them to plan and make projections for the trip, they also were great for back seat management. The longer we went without getting the answers we needed the greater the noise level from the back seat. My parents learned early that an easy-to-read, clearly highlighted map kept us busy for hours and proved to be a good exercise in noise reduction and dispute management.

In any undertaking it is important to know where you are going, how you will get there, and what resources will be required to successfully achieve the goal. It is no different with any construction project. A successful project roadmap (a well-maintained construction plan) is an essential management tool for many of the same reasons that my parents learned in our vacation experiences.

A well thought-out plan and schedule will help in planning and allocating the five key resources on the project: time, money, personnel, equipment, and material. With that plan in place you only need to know three things to measure the impact of most delays: where you were on the critical path at the time of impact, how long you were off of the critical path, and when did you returned to full production on the critical activities. Finally, the well-prepared, easy-to-read plan is great for communication and noise management.

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3 Executive Strategies for Successful Project Execution

So much is written and discussed these days to help teams execute organizational objectives. It is not enough to have thorough knowledge of a particular strategy, and good intentions will not get the job done. What organizations need is a culture or environment that fosters execution, or follow-through on goals or strategies communicated from the top. While many construction executives focus sincere effort on high-level strategies and goals, there is often a breakdown at the implementation level. No program strategy will be successful without the team and tools in place at the project level to execute that strategy.

Program strategies can vary as much as the number of programs that exists; from individual construction project execution to enterprise software implementation, from a rollout of corporate standards, to a management accountability program. Successful execution of the program strategy, no matter what it is, will generally consist of three themes that must flow down from the executive level.

Empower the Team

The successful project execution process begins with a systematic project team approach to planning the rollout of the strategy. Without a rigorous dialogue on the detailed day to day strategy of an entire project among those assigned to accomplish it, it is impossible to move forward as a coherent team. With the dialogue up front before the project even begins, the team becomes more of a unit and their effectiveness reaches way beyond their individual skill or knowledge base.

This principal is demonstrated regularly in sports. Every player on a football team, no matter what position they play is a part of game-plan discussions. It is important that each player sees how their efforts fit into the big picture. The quarterback may participate at a different level in the discussion, but if an offensive lineman is unaware of his part in the overall plan, the quarterback may have a rough game.

It is no different for a construction project, or group of projects. The most effective game-plan sessions are those that include participants from the entire project management team. These sessions allow the team to discuss in detail the “how’s” and “what’s” of the project and form a cohesive plan for project execution.

As a professional planner and scheduler I have participated, as a facilitator, in a wide variety of these types of “game-plan” sessions, usually lasting one or two days at the beginning of the project. The focus and team spirit that comes from these meetings always benefits the execution mentality and helps link organizational strategy to field operations.

Establish Milestones

Milestones help execution teams (Project Management Teams) establish goals and work together as a team to accomplish them. Milestones also help the executive know if a project is in trouble before it is too late. Some effective guidelines for milestone setting are:

  • Establish some milestones early in the project. Unlike a sporting event with a real-time scoreboard most projects/programs are moving forward in the dark when it comes to measuring their score on time and budget. So, an executive will need to set up a scoreboard with milestones if he wants to know how his team is doing.
  • Establish rewards for milestone accomplishment. By spreading rewards or bonuses over the course of the project for specific accomplishments an executive benefits from the ongoing accountability of the project team. The execution team benefits from the ongoing team motivation and accountability offered by the milestone rewards.

Ask the Right Questions

It is so important for executives to know the right questions to ask and to know when to ask them. Most of the construction claims that I have been involved with over the years could have been avoided had executives (those with experience and vision) understood this simple process.

To ask the right questions an executive must be involved. In the “game-plan”, or planning and scheduling sessions mentioned above, an executive can learn so much about the team he is depending on to execute. Those sessions open up so many opportunities to ask “How are you going to do that?” or “What resources will that require?” Asking the right questions forces the team to think about their assumptions and contingencies. Asking the right questions also exposes strengths and weaknesses among the team members. So often weaknesses are not discovered until it is too late when execution hopes become replaced by recovery necessities.

Secondly, to ask the right questions the executive must be informed. Having the right information allows the executive to understand the proper management questions. I’ve known executives who would meet with their project managers and maintain a cordial relationship with general conversation about the project and major issues. Their intent may have been to keep the project manager motivated and keep the project moving forward. Their intent may have been to become more informed on the status of the project. In either case, without the proper information to know what questions to ask these executives were so often left holding the bag.

Clear and succinct reports that compare current status with planned status, milestone status, progress on the critical path, along with budget and projections provide the information needed to ask the right questions. When the right questions are asked the execution team will stay motivated because problems are always in the open. Executives stay better informed and their experience brings earlier and more effective resolution to project issues.

John Jackson is a professional scheduler, expert claims consultant, and enterprise software implementation and corporate standards specialist. For question please contact jjackson@encrp.com.

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Scheduling Technology or Experience – Which is Most Important?

Advancements in technology continue to stretch construction project programs and their managers. It sometimes seems that the technology has outpaced organizational capabilities to manage it. While the technology promises advantageous results in effectiveness and efficiency in managing not only larger and more sophisticated programs and projects but also the small project as well. It also presents new issues for organizations to deal with in implementing new systems and procedures. So, between Construction Scheduling Technology vs Experience – which is more important?

Competitive nature of construction Technology

On the one hand, many firms have done well enough without the technical advancements and resist any change in their current ways knowing that change will have to come eventually, while other organizations struggle with attempts at implementing any new scheduling Technology to ease their pain. There is no doubt however that the competitive nature of construction scheduling technology and development, both public and private, continues to force a resistant construction industry into a new age. In this environment it is imperative that executives adhere to certain basic business fundamentals – some things do not change. While they may not understand all of the ramifications and benefits of new construction scheduling technologies, certain elements should not be overlooked, like the importance of scheduling technology experience experience and expertise. Technology, in particular computer hardware and software, is only a tool, and benefits will only be noticed based on the hand that wields it. Let me illustrate with a simple analogy:

Construction Scheduling Technology or Training

Mr. Smith, a Framing and Drywall contractor knows that to stay competitive in the current market it is important to keep up with the latest in hammer development. After all, he knows that good tools increase productivity. His approach is to purchase only the finest hammers for the young apprentice carpenters on his staff. Through careful research and evaluation Smith selects a new hammer from a reputable manufacturer for his inexperienced crews. The selected manufacturer provides the sleekest and most user friendly features in the hammer industry. The contractor justifies the purchase price and the cost of training for the best tools in the business with the money he is saving hiring only apprentice carpenters. Following a day of training with their new device, the carpenters begin framing walls with new enthusiasm.

Construction Scheduling Technology and Experience

Over time the overall company production has not increased significantly with the new product or construction scheduling technology. Our Smith gradually becomes somewhat disillusioned with the innovative hammer product and begins re-entertaining new products for the company thinking that the previous selection has not lived up to his expectations. We on the outside look at Smith and his hammer selection process and say “It’s your carpenters, Smith.” You can purchase the best hammer, but in the hands of inexperience, even the best tools will bring little benefit to a construction project. On the other hand, an experienced carpenter can produce a quality performance with a mediocre hammer.

Let’s apply this same analogy to a different area of project delivery. Planning and scheduling construction project and using that schedule to coordinate the execution of the project can have such an impact on whether or not a project is successful. Yet emphasis on experience for scheduling is often minimized. Just like our contractor, expensive and sophisticated planning tools (software) are entrusted to inexperience for their implementation. In so many situations, project executives entrust the coordination of the project scheduling to apprentice project managers inexperienced in critical planning and scheduling techniques, developing a well-coordinated plan, identifying potential risks, recognizing issues, and analyzing impacts. Owners are also guilty of minimizing experience in the schedule coordination and review process.

Here’s a tip, inexperience will often cast blame on the failure of technology (a quality planning tool) for a lack of quality performance. Experience, on the other hand, provides quality with the available tools. A change or an upgrade in technology will usually only increase efficiency, not quality. With so much at stake, budget and time, wouldn’t it be prudent to re-evaluate where the planning and scheduling department focus should be. Research and evaluate procedures, experience, and expertise first – then review technology.

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4 Reasons Project Schedules Don’t Get Updated

We are often asked to work on troubled projects, such as when a contractor realizes there are two months of remaining contract time with five or six months of work left to perform. While my clients usually request that I go back to the beginning of the project to find out what went wrong, my first recommendation is always to look at the remaining work and develop a detailed plan to complete the project. As in any emergency it is important to find the bleeding and to stop it. This would seem to be an obvious conclusion, yet it is amazing how many projects are “bleeding” and contractors, as well as owners, don’t know it until it is too late, and even at the point they realize it they don’t take the time to bring the remaining work under control. Only then should one analyze what happened prior to the update point and analyze how much “blood” was lost. These types of situations can usually be avoided if the project plan is well developed, carefully monitored, and regularly updated.

Planning and scheduling a construction project is one of the most valuable exercises during the entire construction process. Unfortunately, many organizations still place little value on it. Often both owners and contractors avoid the process even though contract specifications require it. These specifications do serve a good purpose. A good schedule update is a great opportunity for:

  • Analyzing and developing a snapshot of where your are in your project
  • Re-evaluating the work that is left to see what it will take to finish
  • Developing an as-built record of what has happened; and
  • Analyzing and documenting delays.

Problem 1 – Little emphasis on planning and scheduling

While most organizations place a heavy emphasis on developing the project budget, they often leave the task of developing the project schedule to a junior technician. If a budget exists without a well-thought-out comprehensive plan to accomplish it, a project is at risk before it starts. However, when a comprehensive plan and schedule is developed, the budget, if realistic, usually falls in place.

Problem 2 – Planning stops after the baseline schedule is prepared

Frequently, the baseline schedule is needed for a pre-construction conference, and some contract specification requires the preparation of a formal submittal. After the baseline project schedule is prepared and approved, however, many owners don’t insist on and many contractors don’t bother with regular schedule updating. The problem is that a plan loses its value if it is not updated—things never go exactly as planned, and if the schedule isn’t regularly reviewed and updated, it will quickly become inaccurate and useless as a management tool. But, as I emphasize below, a well-developed and maintained CPM schedule is the single most useful management tool there is. Without it, the contractor can only fly by the seat of his pants when unexpected delays occur, and this almost always leads to considerable inefficiencies and wasted resources.

Problem 3 – Excuses are made for not updating the schedule

The following are the most common excuses I hear for not updating a project schedule

  • No schedule updates are required (or if it is required, the owner is not requesting it).
  • The project management team doesn’t have the time to devote to the schedule.
  • The organization doesn’t use a schedule to monitor projects.
  • The baseline schedule no longer reflects what is going on in the project.
  • The baseline schedule doesn’t have the detail to be useful to management.

All of these are poor excuses. When schedule updates aren’t required submittals, it is foolish not to carefully monitor progress on a project and have up-to-date projections about remaining items. Without a good, updated schedule you don’t have the information to efficiently manage a project. As for as the time required to maintain and manage the schedule, it will cost the team more time and money due to project inefficiencies if they don’t give proper attention to the schedule. Even if your organization doesn’t require schedule reporting to monitor project, or you’ve “never done it that way”, it’s still a good idea to do it that way. An out-of-date baseline is a condition due solely to the contractor’s lack of attention to the schedule in the first place. The proper response is to build a better schedule, one that is up to date and sufficiently detailed to be useful to management.

Problem 4 – Organizations don’t see the value of updating a schedule

I am amazed that many organizations still view scheduling as a “necessary evil”. That is the term used when I was hired for my first scheduling assignment many years ago. It is an attitude that still pervades many construction firms. Here are some tangible benefits of implementing good updating procedures:

  • 1) A well-documented as-built schedule. It is always less costly to build an as-built schedule as-you-go rather than after-the-fact. It is usually much more accurate as well. This can mean significant savings in claims resolution. Also one of the overlooked values of an as-built is the information they can provide for future projects.
  • 2) A well-executed plan saves time. It’s not enough just to finish a project within the contract allotted time. I constantly remind clients that every day has a dollar value. If the operational overhead of an average project is $10,000 per day, and a well-executed plan cuts 5% off the project time, then planning efforts could easily knock $100K off the bottom line per year per project just in overhead savings, not to mention efficiency gains.
  • 3) Documentation of delays. Documenting delays can save a project money in several ways. First, a delay can be documented and analyzed as it happens in a fraction of the time and cost of an after-the-fact analysis. Second, early identification and resolution of the delay issues always results in a better return than delays resolved in the claims process. Third, better resolution of delays can represent significant cost savings if Liquidated Damages are relieved, and/or Extended Overhead is recovered, and often (most important) a good owner/client relationship is preserved.
  • 4) ) Team building. Most project management staff frustration and turnover occurs as a result of the burden of out-of-control projects. A good schedule, just like a well-managed to-do list, gives the project management team a sense of control. Even if the project is not going well a good schedule that’s updated will help the team realize where they are in the process, what is left to accomplish, and a good road-map for how to get there. In addition, good updating procedures keep executives in the loop so that their experience can be brought into the situation for better results for the project and the project team. When organizations see the value the scheduling process brings to the project their priorities change. The old excuses don’t work anymore. I have seen repeatedly how those that have begun to emphasize good scheduling practices and procedures benefit from the results.
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2 Rules for Resolving Construction Delays

Construction Delays and Disputes are all too common in the construction world. Avoiding delays is always preferable, however at times construction delays are at times inevitable. Delays cost time and money, and so planning for the possibility of encountering Construction Delays or Construction Disputes should be fully appreciated and considereda. Today we will be discussing 2 Rules for Resolving Construction Delays.

For this reason, it is imperative that all participants in the construction project agree to acceptable guidelines and methodology, and these should be fully participated In by all parties, and established at the start of the project. When preparing for delays it is important to understand that most construction disputes remain unresolved for one or more of the following reasons:

  • The delay entitlement has not been settled (acknowledgement of who is responsible for a particular issue), and/or
  • The understanding of delay resolution concepts is not understood (see the article on concurrent delays), and/or
  • here is no understanding of the RulesO of Engagement in the delay resolution process.

There are two fundamental Rules of Engagement that must be followed in order to successfully resolve a construction dispute over delays:

Agreement to the method of construction delay analysis, or which Time Impact Analysis (TIA) to use for evaluating the construction delay impacts, and Once the method is selected, agree to adhere to the guidelines built into the particular evaluation method. Both of these rules for resolving construction delays are essential. It is not enough to establish an schedule analysis method. Both parties must agree to work within its parameters.

Following the Construction Projects Established rules

I have two children, and as angelic as I want to believe they are, I constantly must step into a dispute and establish a plan for resolution, as in “taking turns”. It seldom fails that one will cry for enforcement of the rules when it benefits their position and will want to claim alternate reasoning when the rules are not in their favor. I must remind them that, although the rules may not seem fair in some situations, in the long run, following the established rules will work both ways and is the fairest way to resolution.

Resolving Construction Delays

I recently worked with an associate who was in the process of buying into a partnership with an optional buy-back clause. This associate spent a lot of time and effort attempting to calculate the best method for evaluating the value of the shares of the business he was buying. The seller had proposed a specific evaluation method for the purchaser’s shares, at a discount, with the agreement that in a set time frame the same evaluation method would be used in buying back the shares at full value.

Avoiding Construction Projects Delays First

Through this process we concluded that as long as the evaluation method was reasonable at the beginning and was the same for both transactions, whatever part of the formula may work against him during the purchase would be in his favor when he sells. ¬In the end it would be fair and equitable, as long as the formula was consistent for both parties, and both transactions.

Resolve construction projects delays

In attempting to resolve construction projects delay issues the same reasoning will typically apply. It helps to start with the best delay analysis methodology. But even if the best methodology is not selected, if both parties will follow specific guidelines of the agreed upon method, equitable resolution can be accomplished. 1) Establishing the Best Construction Delay Analysis Method AACE established Recommended Practices identify numerous analysis methodologies. In general, however, delay analyses fall into four basic categories:

  • Total Time Analysis – used mostly in efficiency claims when the budgeted time is compared to the total time.
  • Adjusted As-Planned Analysis – delay activities are inserted into an ‘As-Planned’ or ‘Baseline’ schedule to measure impacts to the critical path.
  • Adjusted As-Built Analysis – an as-built schedule is prepared from project documentation and delay activities are removed to collapse the schedule back to a ‘but for’ status to quantify the impacts.
  • Contemporaneous Time-Frame Analysis – delays are inserted into the current updated schedule to determine impacts to the current critical path including the current as-built conditions and the contemporaneous critical path.
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Reactive or Proactive Scheduling?

To many managers in the construction industry value is overshadowed by cost. By not seeing the value that planning and scheduling can bring to a project, 98% of the project budget may be placed at risk in order to save a few dollars of the overhead budget. I categorize attitudes toward scheduling among those that consider scheduling a necessary project function as either ‘reactive’ or ‘proactive’. In addition, there is still a considerable part of the industry that does not schedule at all; we might say they have an ‘inactive’attitude to scheduling.

The difference between the proactive and reactive approach

The difference between the proactive and reactive approach is defined by the goal of the scheduling efforts. Reactive scheduling starts with a haphazard approach to the planning process and continues when the ongoing scheduling efforts are spent trying to keep up with happenings in the field, and making adjustments when field operations deviate from the scheduled plan. In this case the schedule may be built with good intentions, but the reality is that the project drives the schedule.

Proactive scheduling requires a coordinated effort of the project management staff to actually plan the work for the project and then utilize the scheduled plan in performing and overseeing the work in the field. Updates are performed to measure how the plan is going and to make necessary adjustments. The process of planning and scheduling is never complete until the project is done. In other words, the plan and schedule drives the project.

The Absurdity of Reactive Scheduling

I will never forget my first job as a professional scheduler. My contractor client informed me that my services were required to appease an ‘overzealous’ owner and were not necessary for success of the project. My services were merely a ‘necessary evil’. I proceeded to study the project documents and prepared the contractor’s schedule for submittal. The schedule clearly delineated how the project was to be built and was readily approved by the owner. My client received a long-awaited first payment on the project and I enjoyed hero status for a day.

However, the contractor’s project management team proceeded almost immediately to deviate from the schedule that I had spent so much effort to prepare. To my knowledge, no one on the contractor’s project management team ever put together a comprehensive plan for completing the project in a timely and efficient manner. The contract targeted completion date was a ‘hope for’ goal with no basis for the assumed accomplishment.

Since they had never really looked at my schedule, nor did they care to start, my task became increasingly an exercise in keeping up with what they were doing, and adjusting the schedule to show how their plan was deviating from mine. I also found myself trying to guess at what they might do in the future and make the appropriate adjustments in ‘my’ schedule. As the project slipped I would arbitrarily change relationships or durations to continue showing the project completion within the contract limits, which kept the cash flow coming from the owner. In no way did the schedule have any influence on the work performed. As the scheduler, I spent the majority of my effort trying to make the schedule match what was happening in the field,the project drove the schedule.

Schedule as a tool for planning the project

On the other side of the world, the owner reviewing my schedule never really looked at it as a tool for planning the project either. The only person who even looked at it on behalf of the owner was their expert scheduler, whose main objective was to make sure the schedule met the technical requirements of the contract specifications. The extent of the review was purely technical in nature. Did the numbers balance? Were the milestone dates aligned with the contract? Was the format of the schedule correct? The review and approval processes never included a review of whether or not the schedule was a valid plan or even whose plan it was. The only issue that seemed to matter was whether or not the document showed that the projected dates were being met.

No one ever mentioned to me that the contractor was not following their (my) plan. I don’t believe anyone ever paid enough attention to it to really notice. The people who really knew how the project would have to be constructed did not care to look at the technical data generated by a computer that they saw as a threat to the world as they knew it. The schedule was simply a required exercise someone passed down from a lofty legal bureaucracy on a planet far, far, away. On the other hand, the two scheduling experts (including myself) were too busy trying to impress each other with our own schedule geek techno jargon, and philosophical homilies regarding schedules and like things pertaining to it, to think about coordinating our efforts with the less technical project management staff who oversaw the actual construction. Even from the owner’s side, the project drove the schedule.

The Benefits of Proactive Scheduling

On many projects over the years my schedules were completely separate from the construction process. Contractors submitted them but didn’t use them. Owners were often contractually separated from the process and had minimal enforcement capability in how a schedule was managed. Times haven’t changed much. But there is hope. I have seen it work. Planning and scheduling can be used in a proactive way to make a project move faster, more efficiently, and with much less management headache. There are four main aspects of proactive construction scheduling, if implemented, these will positively transform the project at all levels.

Coordination and Collaboration

Though intertwined in practice, it is helpful to consider these separately. Coordination is bringing the various project participants into the planning process, securing their input and getting everyone to sign on to the project plan. The participants naturally include those actually building the project, including project managers, superintendents, subcontractors and yes, even the owner and their representatives. I often hear the first months of the project referred to as the ‘honeymoonv phase. If agreements are going to be made and cooperative measures are to be coordinated for the project, this is the period most beneficial to meet those objectives. By coordinating through the planning and scheduling process, each aspect and phase of the project can be addressed and reviewed by the parties.

Collaboration is the ongoing use of the schedule throughout the project as a communication tool to identify, address, and resolve project issues. To accomplish this, the contractorvs project management must be committed to communication and a level of openness with the various project participants, including the owner. Owners are usually more open to the idea but have a difficult time enforcing collaboration.

Consistent Tracking and Analysis

Consistent tracking and analysis of progress requires a level of scheduling discipline that is often lacking, but where it exists the rewards are substantial. For example, it is much easier to prepare a lookahead schedule with a handwritten chart or spreadsheet application than it is to update a working CPM schedule. Excuses such as vThe established schedule does not have the detail I need, or I only update the schedule for the submittal process, or ‘My schedule doesn’t match what I am doing’ are common. There is a simple response to such excuses: Adjust your schedule to reflect your plan so that you can use it to monitor your progress on a weekly or bi-weekly basis. Using this proactive approach in a project meeting may meet resistance because of the accountability involved.

The project accountability is a result of looking at what someone said they would do last week compared to what they are saying this week. Over time, however, such accountability serves to bring more consistent project planning and projections to the project. This level of project management tracking will also keep stakeholders aware of the project’s current critical path, which spreadsheet charts cannot do. One of the most important features of this proactive scheduling approach is the early identification of issues. Of course, early identification of issues promotes early resolution of issues, which is valuable in every project scenario.

Effective Project Reporting

Effective project reporting keeps senior management, the key decision makers and problem solvers, in the loop. Many project issues get out of control before senior management, or those with the most experience in resolving issues, ever get involved. This results from delays in identifying and communicating issues. A carefully monitored project plan and schedule will identify most issues as, or even before, they surface. An effective reporting procedure will keep executives in the loop to proactively resolves the issues before they become serious or get out of control. Risk Management and Early Resolution of Conflicts.

Proactive Construction Scheduling and Risk management

Risk management and early resolution of conflicts may be catchy industry buzz-phrases, but they are very important. This aspect of proactive construction scheduling depends on the implementation of the previous three proactive scheduling techniques. Without collaborative coordination, consistent tracking and analysis, and effective reporting, issues will often not be identified early enough for a quick resolution, and even when they are, the lack of a healthy cooperative atmosphere may impede that resolution. Part of updating the schedule regularly and proactively includes incorporating impacts immediately into the schedule to demonstrate their effects on the progress, and ultimately the completion of the project. This sometimes meets resistance. I have been requested not to put an impact into the schedule until the change or delay is approved. My response to this is simply, “Do you want the current project schedule, that we all are trying to work from, to be accurate or inaccurate?” If you want it to be accurate then what is going on in the field should be reflected in the schedule. I have yet to have someone tell me, “I would rather the construction schedule be inaccurate.” By incorporating issues into the schedule immediately it is much easier to see the impact and come to an early resolution.

Proactive Scheduling Pays

Ultimately, there is a cost factor to the proactive approach. It takes commitment from the involved parties and often it takes more management budget, especially if an experienced scheduler is brought in to assist in the process. However, the benefits from a successful implementation of the proactive approach usually far outweigh the costs associated with it. Managing the critical path effectively nearly always saves time on the project. Given the daily overhead costs of a project multiplied by the number of days saved by good planning and execution, this also saves money. Furthermore, regular planning and coordination brings a positive partnering atmosphere to the project. Reviewing a schedule is a great forum for structured discussion of every aspect of the project, since a good, proactive schedule will include every aspect. Finally, proactive scheduling is very effective in early resolution of disputes, maximizing recovery of cost impacts as well reducing the cost of prosecuting claims.

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CPM Scheduling – Why a Project Roadmap Is So Important

The role of CPM scheduling in the construction industry has increased significantly over the past couple decades. One reason for this is economic. Owners have become more demanding in their scheduling specifications in order to better monitor the project and meet funding requirements and budget projections. And tight competition and narrow profit margins have forced contractors to maximize efficiency through careful planning, scheduling, and coordination.

A second reason is liability. From claims preparation and dispute resolution to legal evidence in a trial, a well-designed and maintained CPM schedule can make or break the chances of recovering damages. Most fundamentally, however, a well-designed and maintained CPM schedule is just good project management practice—it lays out the road map that tells you how to get from point A to point B, from project start to project completion.

CPM Scheduling – The Project Road Map

Growing up in my family meant road-trip vacations every summer. And, of course, we asked all the typical questions children ask after sitting for hours in a back seat. The “How many more miles?” and “When are we going to get there?” questions were most often responded to with a map highlighted along the shortest path of travel (the “critical path”), and we were encouraged to figure out the answers ourselves. We learned that we could use the red numbers along the highway to measure progress and project our arrival time (duration). We could measure our average speed by counting the miles traveled divided by the hours on the road (production). Taking our average speed we could calculate our arrival time based on remaining miles (projections). What’s more, if my father made a wrong turn or we experienced mechanical difficulties, all we needed was the map to determine where we were when we went off course, how long we were off, and when we were safely back on the right path. From there we could measure the impact of the mishap.

These maps were great management tools. Not only did my parents use them to plan and make projections for the trip, they also were great for back seat management. The longer we went without getting the answers we needed the greater the noise level from the back seat. My parents learned early that an easy-to-read, clearly highlighted map kept us busy for hours and proved to be a good exercise in noise reduction and dispute management.

In any undertaking it is important to know where you are going, how you will get there, and what resources will be required to successfully achieve the goal. It is no different with any construction project. A successful project roadmap (a well-maintained construction plan) is an essential management tool for many of the same reasons that my parents learned in our vacation experiences.

A well thought-out plan and schedule will help in planning and allocating the five key resources on the project: time, money, personnel, equipment, and material. With that plan in place you only need to know three things to measure the impact of most delays: where you were on the critical path at the time of impact, how long you were off of the critical path, and when did you returned to full production on the critical activities. Finally, the well-prepared, easy-to-read plan is great for communication and noise management.

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Create a New Project in Powerproject

Create a New Project in Powerproject

In this video you will learn how to start a new Project in Elecosoft Powerproject, from an experienced construction scheduling consultant. Want the Training Manual?

Get the training manual for this series, as well as other great free resources for Powerproject, including a free Scheduling Template and more. To download visit our Powerproject Resources Page.

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Perfecting the Fixed Perspective Windows Delay Analysis

Abstract – With the variety of Delay Analysis Techniques available to schedule reviewers and analysts, it is difficult to know and implement the most reliable and effective way of demonstrating an accurate impact calculation caused by delay. Contractual requirements for time extension requests using the common term, “Time Impact Analysis”, are increasingly appearing throughout the construction industry. The broad application of the term “Time Impact Analysis” can lead to significant variances in delay calculations. Several of the AACE International’s Recommended Practices (29R-03) are commonly labeled as “Time Impact Analysis”. While each methodology may have its appropriate implementation, certain methodologies can be combined to produce a more reliable and accurate result. In the following paragraphs the Fixed Perspective Windows Delay Analysis (“Analysis”) method will be presented, which incorporates the strengths of various retrospective methods, while minimizing, if not alleviating the weaknesses. The result is an analysis that, when prepared correctly, is simple to calculate and easy to defend.

With the variety of Delay Analysis Techniques available to schedule reviewers and analysts, it can be difficult to identify and implement the most reliable and effective way of demonstrating an accurate impact calculation caused by delay in retrospect. Each analysis method has strengths and weaknesses with a series of validation requirements, so proper application of the various methods is essential to a reliable conclusion. The “Time Impact Analysis” is the method recommended within the Society of Construction Law Delay and Disruption Protocol.

In this method time impact analysis preparation includes the insertion of a delay activity into the sequence of unimpacted activities in a schedule prior to the delay event. The analyst can then determine the impact of the delay by measuring the impact to the prior completion date. Many, if not most, contract specifications that address preparation of time impact analyses are specifying a method that generally aligns with the method outlined by the Society of Construction Law. This method is virtually identical to that outlined in the AACE’s 29R-03 MIP 3.7. In addition, this methodology is similar to that which is outlined in the AACE document for prospective TIA preparations, 52R-06, with the notable exception that actual dates of the delay be used, retrospectively.

As will be detailed in the enclosed analysis, these referenced methodologies can be easily manipulated to reach biased results.

However, as construction scheduling requirements and specifications have become more stringent over the last few decades, it is possible to minimize these manipulations. More projects require monthly updates, more project staff are involved in the scheduling process, and more stakeholders provide input into the scheduling process. With increased experience and participation schedules are increasingly more consistent and accurate. Contemporaneously prepared schedule information is available more often. Delay analysis methods that rely on and incorporate this available schedule data will be consistently more reliable and accurate.

In the following paragraphs the Fixed Perspective Windows Delay Analysis (“Analysis”) method will be presented, which incorporates the strengths of certain retrospective, observational and additive methods while minimizing, if not alleviating the weaknesses. The Analysis identifies delay including mitigation and acceleration quantities, identifies concurrency, and accounts for changes in the critical path. It is equally significant to note that the Analysis will demonstrate how to select which schedule to use for the analysis to minimize manipulation. The result is an analysis that, when prepared correctly, is relatively simple to calculate and, just as importantly, easy to defend.

Common Problems with Contract Specified Delay Analyses (MIP 3.6 and MIP 3.7)

The AACE document for prospective TIA preparations, 52R-06 [2], details a recommended protocol for preparing Time Impact Analyses using a forward-looking approach. However, most project owners are hesitant to grant time extensions until the full extent of the delay is known. In shorter delays this may not be as challenging. However, on longer delay events, where the anticipated delay duration is not known, a retrospective approach is usually preferred by owners. The enclosed methodology is useful when contract documents require the actual durations of the delay and not the “forward looking” analysis detailed in 52R-06. The analysis may be prepared during the project or after, but is retrospective in time and incorporates Method Implementation Protocol (MIP) 3.7 – Retrospective, Modelled, Additive, Multi-based analysis.

The AACE document for prospective TIA preparations, 52R-06 [2], details a recommended protocol for preparing Time Impact Analyses using a forward-looking approach. However, most project owners are hesitant to grant time extensions until the full extent of the delay is known. In shorter delays this may not be as challenging. However, on longer delay events, where the anticipated delay duration is not known, a retrospective approach is usually preferred by owners. The enclosed methodology is useful when contract documents require the actual duration's of the delay and not the "forward looking" analysis detailed in 52R-06. The analysis may be prepared during the project or after, but is retrospective in time and incorporates Method Implementation Protocol (MIP) 3.7 – Retrospective, Modelled, Additive, Multi-based analysis.

As an example, a contractor may submit a Request for Information ("RFI") early in a project for installation of light fixtures that are not scheduled to be installed until very late in the project. Since the fixtures are not scheduled for installation for several months into the future, the architect may not respond immediately to the RFI. In the meantime, additional unrelated delays push the scheduled fixtures installation even further into the future. As a result, the actual duration for the response to the Request for Information extends even longer. Eventually, the architect responds to the RFI with a change. The change delays the installation of the fixtures a few days impacting the completion of the project.

In this scenario, the contractor, may choose to submit a TIA, prepared in an early schedule with the planned future duration's (blindsight) around the time of the initial RFI submission. The TIA specification states that delays should be analyzed by inserting actual delay duration's (hindsight) into a schedule just prior to the delay. Using the older schedule and the actual duration of the RFI response, the analysis would appear to demonstrate the RFI was on the critical path its entire duration, ultimately impacting the end date. By not incorporating details included in subsequent updates during the alleged delay period, the analysis misrepresents the real impact of the RFI and change.

In the following chart, Delay Event 1, representing a hindsight as-built duration of a delay activity, is inserted into a copy of a contemporaneously updated schedule. This analysis seems to demonstrate that the Delay Event 1 impacted the critical path of the project.

However, if the contemporaneous schedules are reviewed, the Delay Event 1 may have never been on the critical path until much later in the analysis period, once float was consumed. The following graphic illustrates a contemporaneous updated schedule with a data date in month 6 in which the Delay Event 1 is not driving the critical path. In many cases, the Delay Event 1 may not even be in the contemporaneous schedule since it is not driving an activity contemporaneously as of the data date.In this scenario, the Delay Event 1 may, or may not be a concurrent delay depending on available float and its management.

Another scenario is that the Delay Event 1 only becomes critical in a later contemporaneous update, once float is consumed. Following the completion of the Delay Event 2 impacted activities, Delay Event 1 becomes critical in the Month 10 schedule.

Using the previous examples, it is apparent that a delay analysis can be manipulated applying MIP 3.6 or 3.7 simply based on the application of terms detailed in the typical TIA specifications. This is why an Observational review of contemporaneous schedules during the delay period should be incorporated. The additive model of MIP3.7 may not include concurrent delays occurring during the delay event, or more significantly, it may not take into account changes in the critical path occurring during or prior to the delay event. In addition, TIA's are often prepared without consideration of contemporaneous updates within the delay period, which may impact the TIA's outcome. It is not uncommon for TIA's to be prepared that analyze delay events that never appear on the project’s contemporaneous updated schedule’s critical paths.

The questions remain, how can an analyst be reasonably certain when a delay impacted the critical path? How can the start of the actual delay period be reasonably identified? How can the end of the delay period be accurately be identified? How can the added or prolonged delay duration be quantified? And, how can an analysis determine if or when a particular delay was overtaken on the critical path by another delay? The following paragraphs detail an approach for preparing a single based or multi-based TIA (MIP 3.6 or 3.7), where each of these considerations are addressed and, as a result, the TIA is more reliable and more importantly, defendable. In summary, the Analysis addresses and corrects the common TIA specification approach of inserting delay events into a schedule prior to the delay event. “Prior to the delay event” is often manipulated and, based in the arguments below, should be adjusted to state, “Prior to the when the delay event became critical”.

How the Fixed Perspective Window Analysis Method fits into the AACE International’s RP for Forensic Scheduling

As stated in the previous section, the Analysis is a two-stepped process for analyzing delays that incorporates sections of the AACE International’s 29R-03 Recommended Practices. The Analysis is a retrospective approach that incorporates both the observational and modeled approach.

The first step includes the exercise of reviewing a Progress Period Window Looking Forward and Backward as part of the Observational model, Dynamic Logic Observation, and more specifically the Contemporaneous / As-Is and/or Contemporaneous / Split, MIP 3.3 or 3.4 [1]. This approach provides the analyst with an opportunity to review the project’s critical path, as memorialized during the project, before and after the delay event, and as documented in the submitted schedule updates. It is an accurate quantification of the delay event from start to finish, including the time frame of when the delay event became critical and when it was finished or when another event took over the critical path.

The analysis requires the project baseline schedule and periodic schedule updates that were prepared contemporaneously during the project, and whose network logic may differ to varying degrees from the baseline and from update to update [1]. It can be implemented using all periods or grouped periods as long as each individual period is reviewed to ensure a comprehensive analysis and to avoid utilization of subjectively selected data.

The second step in the Analysis incorporates the findings of the first step into the Modeled approach, specifically the Additive Modeling with the Single Base or Multi-Base, as defined in MIP 3.6 or 3.7, or the "TIA", in order to meet the common contractual requirements for measuring project delays.

Prerequisites for Preparation of the Fixed Perspective Windows Analysis

Prior to preparation of the Analysis a thorough review of the baseline and monthly updated schedules should be performed with sufficient and appropriate Source Validation Protocols as detailed in the AACE 29R-03 SVP 2.1 – 2.4. Although the AACE RP for Forensic Scheduling states that "Forensic Scheduling is a technical field associated with, but distinct from, planning and scheduling field", experience with planning and schedule is essential in order to avoid misapplication of the enclosed analysis. The analyzer “is assumed to have advanced, hands-on knowledge of all components of CPM analysis and a working experience in a contract claims environment involving delay issues”[1]. A hands on, in-the-field scheduling experience is also valuable.

Performing a Fixed Perspective Windows Analysis – Part 1

The Fixed Perspective Window Analysis in the enclosed Analysis is a detailed and multi-view analysis of a period, or window, of project time using the contemporaneous time frame schedule updates prepared during the course of the project. The analysis is multi-view in that it reviews the fixed window of time from two perspectives, before and after the window of time. The term fixed perspective addresses a common generalization about the windows analysis method where analysts define their own time periods, often subjectively and materially affecting the end results. The analysis is prepared one window at a time. It assumes the periodic schedule updates are reasonably accurate, and the Source Validation Protocols for baseline schedules and updates have been reviewed.

The Analysis is a two-step approach to preparing the traditional TIA that ensures an accurate and reliable result when calculating delay events. It incorporates the fixed approach of reviewing the contemporaneously prepared schedule updates without modification (MIP 3.3) and incorporating the results of that review into an additive model (MIP 3.7), required in a common TIA contract specification. The review requires that each of the Critical Path Method (CPM) schedules, prepared during the project, be used. The critical path activities are the primary activities analyzed with their associated changes and impacts.

The goal of the Analysis is to isolate only those delays that impacted the critical path and ultimately the completion of the project. Therefore, the Analysis does not attempt to analyze every delay event, but only the critical path delay events as they impacted completion once construction began. The Analysis includes both an as-built critical path analysis to accurately identify and analyze any changes or delays to the critical path, and project completion included in the submitted schedules (MIP3.3). It also includes a contemporaneous analysis of delays (MIP3.7) whereby the delay issues are inserted into the schedule update nearest to the actual start of the delay issues, in order to meet a TIA contract requirement. The methodology includes a detailed review of each project schedule update prepared during the project, analyzing the specific periods between the schedule updates as “progress period windows”. The review includes: 1) a review of the progress period window looking forward, using the schedule update prior to the progress period window; and 2) a review of the progress period window looking backward, using the schedule update at the end of the progress period window. This is illustrated in Figure 4.

The first step in preparing the Analysis incorporates a review of specific “windows” of time looking forward using a static model of the contemporary updates, an implementation of AACE International’s 29R-03, MIP 3.3. The Fixed Perspective Window Analysis Looking Forward includes a detailed analysis of each progress period (periods in between monthly updates), or a window analysis. First, the analyst should perform a detailed review of the critical path in the monthly update prior to the progress period window. Second, a progress verification is performed comparing the planned critical path activities to actual performance included in the subsequent updated schedule. Third, the monthly update critical path is compared to actualized performance in the subsequent update to verify whether the critical path had changed during the reported period. Finally, changes in sequence and/or duration's are reviewed to determine if the critical path changed during the period.In addition, changes in future planned activities are evaluated to determine schedule impacts, gains, or losses outside of the selected evaluation period in order to demonstrate how overall changes impacted the final completion date.

In addition to delay impacts, the Analysis identifies and quantifies efforts made through re-sequencing work activities, or reduced duration's that may have recovered time during the project, incorporating MIP 3.4[1]. The following paragraphs include a review of two windows from a sample project to demonstrate delay calculation using the Fixed Perspective Window Analysis.

The Forward-Looking Window Analysis for Period 1

Figure 5 includes a bar chart from a contemporaneous schedule (Schedule 1) compared to a subsequent schedule update with a data date one month later (Schedule 2). The Forward-Looking comparison is comparing changes that occurred to the critical path in the subsequent updated schedule. The spreadsheet area of the bar chart schedule includes three columns: the activity name, variance in start dates, and variance of finish dates. The comparison bars for Schedule 2 are shown below the Schedule 1 bars. The color of the bars indicates whether the activities are critical or not in both schedules. As an example, the top bars for the Phase 1 activities are red indicating that they are critical in the current schedule, while the comparison bars are black, indicating that, in the subsequent schedule, the activities are no longer critical. The first three activities in the “Phase 2” section were not critical, but in the subsequent schedule these activities have become part of the critical path. Notations are numbered and include in a Table 1 after the bar chart.

The following comments in Table 1 detail notations from Figure 5.

The Backward-Looking Window Analysis for Period 1

Figure 6 includes a bar chart from the contemporaneous schedule (Schedule 2) compared to a previous schedule update with a data date one month earlier (Schedule 1). This perspective is reviewing the same time frame as Figure 5, except comparing changes that occurred to the critical path in the previous updated schedule. The spreadsheet area of the bar chart schedule includes the same three columns: the activity name, variance in start dates, and variance of finish dates. The comparison bars for Schedule 1 (previous update) are shown below the Schedule 2 bars (subsequent update). Once again, the color of the bars indicates whether the activities are critical or not in both schedules.

As an example, the top bars for the Phase 1 activities are not red indicating that they are no longer critical in the current schedule, while the comparison bars are red, indicating that, in the previous schedule, the activities were critical. The first three activities in the “Phase 2” section were not critical, but in the subsequent schedule these activities have become part of the critical path. In this window of time between Schedule 1 and Schedule 2 the notations are identical and are detailed in the previous Table 1.

A summary of the events in the first window are detailed in Table 2. In summary, the delay event impacted the critical path 18 days. Considering the gain in production of the previous critical activity of 1 day, the net result to the schedule is a 17-day loss.

The Forward-Looking Window Analysis for Period 2

Period 2 is the subsequent month from the month analyzed in Period 1. Figure 7 includes a bar chart from the contemporaneous schedule (Schedule 2) compared to the subsequent schedule update with a data date one month later (Schedule 3). The Forward-Looking comparison is comparing changes that occurred to the critical path in the subsequent updated schedule. The spreadsheet area of the bar chart schedule includes the same three columns as the previous bar charts: the activity name, variance in start dates, and variance of finish dates. The comparison bars for Schedule 3 are shown below the Schedule 2 bars. The color of the bars indicates whether the activities are critical or not in both schedules.

As an example, the top bars for the Phase 2 activities are red indicating that they are critical in the current schedule, while the comparison bars are black, indicating that, in the subsequent schedule, the activities are no longer critical.

There is a gap between the activities, “Exc/Grade Detours” and “Pave Detours”. This is indicative of added activities in the subsequent schedule (or extended duration's if a filter is being used) causing a change in the critical path.

Notations are numbered and included in Table 3 following the bar chart.

The following comments in Table 3 detail notations from Figure 7. Identification of recovery/acceleration in the schedule comparisons coincide with the MIP 3.4 criteria.

The Backward-Looking Window Analysis for Period 2

Figure 8 includes a bar chart from the contemporaneous schedule (Schedule 3) compared to a previous schedule update with a data date one month earlier (Schedule 2). This perspective is reviewing the same time frame as Figure 7. The spreadsheet area of the bar chart schedule includes the same three columns: the activity name, variance in start dates, and variance of finish dates. The comparison bars for Schedule 2 (previous update) are shown below the Schedule 3 bars (subsequent update). Once again, the color of the bars indicates whether the activities are critical or not in both schedules. As an example, the top bars for the Phase 2 activities are not red, indicating that they are no longer critical in the current schedule. While the comparison bars are red, indicating that, in the previous schedule, the activities were critical. The first two activities in the “Phase 2” section were critical, but in the subsequent schedule these activities were no longer on the critical path. Notations from Figure 8 are included in Table 4. The comments are similar to the Forward-Looking comparison with added information from the later schedule, unavailable in the forward-looking schedule.

A summary of the events in the second window of time are detailed in Table 5 below. In summary, the Delay Event 1 impacted the critical path an additional 19 days. Another Delay Event (Delay Event 2 – Paving Mix Design Resolution), impacted the critical path an additional 10 days this period. Subsequent re-sequencing reduced the impacts by 10 day for a net loss of 19 days this period. With the 18 days lost in the previous period the net loss by Delay Event 1 is 36 days.

NOTE: There are two issues not in these conclusions: 1) Delay Event 2 overtook Delay Event 1 on the critical path 10 days prior to its planned completion date in Schedule 3. No conclusions were drawn regarding any of the overlap period that may have been a concurrent delay. 2) The gain resulting from resequencing may be contributed to either delay depending upon which party initiated the recovery/acceleration efforts.

Performing a Fixed Perspective Windows Analysis – Part 2

.Part 2 of the Analysis complies with the 29R-03 MIP 3.7 and 52R-06 Time Impact Analysis, if the reviewer is requiring a known completion of the delay period (retrospective). Part 1 identified the duration of the delay events and when the various delay events impacted the critical path. With this information, separate and often overlapping delays can be inserted into the appropriate schedule prior to the start of the delay’s impact to the critical path. In the above example Delay Event 1 impacted the critical path in Schedule 2. Therefore, the appropriate schedule in which to insert a delay activity representing Delay Event 1 (37 days) is in Schedule 1. Delay Event 2 impacted the critical path in Schedule 3. Therefore, the appropriate schedule for the MIP 3.7 analysis of Delay Event 2 is in Schedule 2.

The Advantages of the Fixed Perspective Window Analysis

The previous Analysis meets all of the Underlying Fundamentals and General Principals laid out in the AACE Recommended Practices for Forensic Scheduling,: 1) It uses CPM Calculations; 2) The concept of Data Date is an integral part of the Analysis; 3) network float is identified and accounted for; 4) Float is based on the appropriate schedule; 5) Sub-Network Float can also be evaluated when needed; 6) the calculation of impacts can be demonstrated in relation to the critical path; and, 7) all available schedules are considered. Preparing an analysis as described herein, where Impacts of potential causes of delay are evaluated within the context of the schedules in effect at the time when the impact or multiple impacts happen, increases the accuracy in quantification. In addition, the fixed time periods provide the best as-built of not only project dates and sequences, but an as-built view of the prospective critical path as contemporaneously prepared.

Conclusion

Guidelines for preparation of Time Impact Analyses prescribed in many contract specifications align with the MIP 3.7 methodology. The guidelines can be vague and easily manipulated. Therefore, a proper application of a Time Impact Analysis methodology is essential to reach a reliable conclusion. The enclosed method for measuring delays incorporates the strengths and minimizes the weaknesses of common delay analyses by combining an application of MIP 3.3 to MIP 3.7. The combination, as described in the previous paragraphs, will minimize errors and manipulations by identifying the appropriate schedule to use as a basis for the Time Impact Analysis and a reliable duration of the analyzed delay, while meeting the typical contract requirement for preparing a TIA.

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