Effective Delay Analysis: The Tools & Techniques · 2020. 7. 2. · Claims, Ascertainment of Costs...

Effective Delay Analysis: The Tools & Techniques

Presented By

Henry Hathaway, Partner

Effective Delay Analysis

Presented By:Henry Hathaway, Partner

Henry is a qualified Civil & Structural Engineer and haspreviously spent twelve years in the ConstructionIndustry representing both Contractors and Clients inboth Engineering and Project Management

He specialises in Pre-Contract Negotiation, ContractFormation, Project Lifecycle, Tender Development,Identification of Delay & Disruption, Establishment ofClaims, Ascertainment of Costs

Tel: 0207 167 6602Email: [email protected]

Delay Analysis Techniques

The need to prove Delay:

1. To defend against Claims for LADs

2. To found a Claim against the employing party foradditional monies associated with the Delay

3. To found a Claim against the employed party for lossand/or expense and/or damages

The Assessment Of Delay

JCT – Delay to the completion date

NEC – Clause 63.3 - A delay to the Completion Date isassessed as the length of time that, due to theCompensation Event, planned completion is later thanplanned Completion as shown on the AcceptedProgramme


What is a Programme for?

• Primarily a management tool

• For programming the Works

• For monitoring progress

• The basis of making or defending a Claim


Is it a Contract Programme?

• If it is what is the implication?

• Does the Contract make express reference to the Programme?

• Does the Contract contradict the Programme?


If it isn’t a Contract Programme

What should you show on the programme?



What should you show on the programme?

• Earliest Start Dates

• Latest Finish Dates

• Provisional Sums

• Access



When should you revise a Programme?


Clause 11.2(1) The Accepted Programme is the programme identified in the Contract Data or is the latest programme accepted by the Project Manager.

The latest programme accepted by the Project Manager supersedes previous Accepted

Programmes

The Accepted Programme

The Accepted Programme

The Accepted Programme is a developing documentupdated to reflect:

• current progress - ‘as-built’• revisions to the proposed sequence

Techniques For Delay Analysis

Questions That Need Answering:

• What was supposed to happen?• What did actually happen?• What are the Variances?• How did it affect the Project Schedule?


Three Types Of Delay:

• Contractor assumes risk of costs & time consequences• Contractor is entitled to its cost and time extensions• Events for which no party has control or bears risk


How Do We Establish This?

The Contractor will set out the risks and obligations of theparties


How Do We Ascertain The Extent Of A DAT?

Six Methods:

1. As Planned Vs As Built

2. Impacted Vs As Planned

3. As Planned But For

4. Collapsed As Built

5. Window Analysis

6. Timeslice Analysis


1. As Planned Vs As Built• All delaying events are depicted on the schedule

• Difference between Time As Planned Vs As Built Completion Dates is the timereceived

• Critical Path is determined once in the As Planned and then in the As Built

Pros:

Easy & inexpensive

Cons:

Does not scrutinize Delay types and easily manipulated

Ignores dynamic nature of critical path and changes in logic

No attempt to determine individual impact of each Delay on completion


2. Impacted Vs As Planned• Measures the impact of the Delays on the Contractors As Planned CPM

Network• Various Delays are formulated as activities and added to the As Planned

Network in a chronological order, showing the effect of each Delay• Dates between the Networks before and after the impacts

Pros:

Simple & inexpensive

Popular for retrospective analysis

Cons:

Uses fixed As Planned Network to analyse out of context and time

Original Baseline may be incorrect or not realistic to base whole analysis on

May fail to consider all delaying events

Disputes as to the adequacy of the As Planned


3. As Planned Vs But For• Entails injecting the As Planned schedules with all Delays of a particular party to

form an Adjusted Network• Completion date of the Adjusted As Planned schedule compared with the

actual completion date gives the amount of Delay for which the other party isresponsible

• Technique is applied to the Network first for the Contractors point of view andthen the Owners point of view

Pros:

Performed quickly as there is no need to consider actual progress of works

Cons:

Does not take into account any changes in the Critical Path during the Project

Assumes the Planned construction sequence remains valid

Differing viewpoints and outputs by both Contractor and Employer


4. Collapsed As Built• A form of As For analysis but does not use the As Planned as a baseline but uses

the As Built schedule (As Built – But For)• Involves removing Delays of each party from As Built so that the resulting

schedule will give the Completion Date of the Project but for the Delays ofeither Party

Pros:

Perceived advantage of this technique is that it is based on actual events, thus givesmore credibility

Cons:

Once collapsed, forced to insert after the Event Logic Links

Delays being removed could result in an unrealistic Network especially when theDelays are integral

Ignores circumstances and dynamic nature of Critical Path

Input information is highly subjective


5. Window Analysis• Involves interim assessment of Delay on updated Networks at specific periods

of the Project• Similar to a snapshot• Total Project Duration is divided into a number of time periods usually based on

mature circumstances• Network within each Window is updated to reflect actual durations and

sequence at time of Delay whilst remaining As Planned is maintained• Difference in new Completion Date against As Planned provides amount of

Delay

Pro:

Divides a complicated Network into a coherent structure

Takes into account the dynamic nature of the Critical Path

Effective approach to analysing Delays

More snapshots the better


5. Window Analysis continued......

Cons:

Time consuming and costly

Demands complete Project records

Difference in Windows can produce different results

Back analysis is costly and laborious


6. Time Impact Analysis• Variant of the Window technique but this technique concentrates on a special

Delay but not on the time periods containing Delays

• A picture is generated each time there is a Delaying Event

• Network then updated upon this Delay period and the effect of the Delay isused to establish a new Completion Date

Pro:

Detailed

More likely to be accurate

Delays are Real Time

Critical Path is recognised throughout


6. Time Impact Analysis continued......

Cons:

May not be practical for smaller Projects

Highly laborious

Costly

Time consuming


So………………………….

Which is the correct technique?

• No straightforward answer as each principle relies on theinformation available and the intended budget

• Clearly, as the amounts rise, the greater the input toprove


Which is the correct technique?

Note the techniques as employed have been a source of contention becausethey yield different results

Balfour Beatty Construction Ltd -v- The Mayor And Burgesses Of The London Borough Of Lambeth [2002] EWHC 597 (TCC)

The Adjudicators decision challenged as the technique was not affordedcommentary by the Respondent. The Respondents position was upheld


Also:

Ascon Contractors Limited -v- Alfred McAlpine Construction Isle Of Man Limited (1997 ORB-361 & 1998 ORB-315)

Wholly theoretical calculations will be unlikely to succeed


CONCLUSION

QUESTIONS?

[email protected]

Following on from our January event, where we discussed

the impact of new technology on the construction &

property sectors, the April event will look at the legal

implication & implementation of this new technology with

experts from the insurance, construction & property

sectors

• A free event for young professionals in the Construction

& Property sectors

• An opportunity to meet your peers in both sectors

• Discussion on Technology In Construction & Property

• Your questions on the topic will be answered by industry

experts with a background in property, finance &

Construction

• Please RSVP and send your questions on the topic to

[email protected]

Challenges In

Construction & Property 2020Date: Thursday 23rd April 2020

6 - 6:30 Meet & Greet

6:30 – 7:00 Introduction by SSA Team

Topic: New Technology In Construction & Property – Implications & Implementation

7.00 – 8:30 Networking with Complimentary Refreshments

Venue:Crown Suite, Leonardo Royal London Hotel, 8—14

Coopers Row, London EC3N 2BQ

Free To Attend

Sponsored By

Looking for more information?

Free Breakfast SeminarsWhat Is Concurrent Delay?

Wednesday 18th March

QS Series – Loss & ExpenseThursday 19th March (Evening)

Practical Completion – A Game Changing CaseWednesday 25th March

COVID 19, Force Majeure, Frustration & Insurers Response (Evening)Wednesday 25th March

To book a place / places please email Julie at [email protected]

What The Property Team Does & What We Can Do To Help You!

• Development agreements – conditional contracts and pre-let agreements

• Financing for the purchase and building works and the re-financing including short term bridging finance

• Site acquisition and sale (from plan or as-built)

• Review of Section 106 Agreements and other planning documents

• Option agreements

• Joint ventures for finance and development

• Land promotion and other acquisition schemes

• Residential and mixed use development and plot sales/off plan purchases for high net worth clients

• Leases and the management work of commercial and residential portfolios

• Servicing the needs of commercial occupiers of offices, showrooms, warehouses and ‘sheds’

Contact: Niall Boland on [email protected]

or Michael Shapiro on [email protected]

Tel: 0207 167 6602

mailto:[email protected]

mailto:[email protected]

HELPLINECALL US ON

0207 167 6602

Effective Delay Analysis: The Tools & Techniques · 2020. 7. 2. · Claims, Ascertainment of Costs...

Documents

Transcript of Effective Delay Analysis: The Tools & Techniques · 2020. 7. 2. · Claims, Ascertainment of Costs...