Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement...

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1 Project Time Management Institute for Facilities Management Course Objectives Explore the challenges with managing a campus project schedule Review industry practices and contractual issues Discuss incentive clauses Outline 1. Project Time Management 2. Design Time Management 3. Construction Time Management 4. Contractual Incentives

Transcript of Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement...

Page 1: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation

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Project Time Management

Institute for Facilities Management

Course Objectives

Explore the challenges with managing a campus project schedule

Review industry practices and contractual issues

Discuss incentive clauses

Outline

1. Project Time Management2. Design Time Management3. Construction Time Management4. Contractual Incentives

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Project Time Management

Managing project timelines in a campus environment is particularly challenging

Campus Challenges

Immovable completion datesCompressed and restrictive

construction windowsProjects requested late

Campus Challenges

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Project complexityFunding processPermitting process

Campus Challenges

Board/administrative/regulatory approvalsDecision-making processNumber of people involved

Campus Challenges

Basic Goals of a Project

Lowest Cost

Highest Quality

Shortest Time

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Competing Goals

Shortening the schedule usually drives up cost and/or lowers quality

Insufficient Design Time

Reduces the opportunity for optimizing value and lowering project expenses

Lowers the quality of the design documents leading to higher bids and change orders

Insufficient Construction Time

Drives up bids in covering acceleration costs and higher risks

Limits the amount of time available for quality workmanship

Reduces competition

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Prioritizing Goals

A project without sufficient time has lessened the importance of the cost and quality goals to time

Design Time Management

Time is a Finite Resource

The time allotted for construction is inversely proportional to the time taken for design

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Time is a Finite Resource

Design Phases

ProgrammingDetermines and describes the facility needs

Schematic DesignDetermines the scale and

relationship of the project components

Design Phases

Design DevelopmentFixes and describes the size and character of the

entire project and building systems

Construction DocumentsDetails the project for

bidding and constructingpurposes

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Building the Pyramid

Designing is a process of building upon decisions...like blocks in a pyramid

Decisions (the building blocks) must be timely or the building process halts

Design Schedules Crash…

…when decisions are made or changed in the wrong phase of design; effectively dismantling the decision pyramid

Project Team Orientation

Clients and decision-makers need to understand and work with the discreet phases of design

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ConstructionTime Management

Construction Schedule

The schedule is the project team’s tool for managing construction time

Construction Schedule

Select an appropriate scheduling tool for the project

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Critical Path Schedules

Critical Path Schedules

Early Start & Early Finish

Late Start & Late Finish

Float

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Critical Path Schedules

Float is defined as the time between the earliest possible completion of an activity and the latest required completion

Most activities have float time

Critical activities do not have float time

Critical Path Schedules

The delay of a critical activity will cause an equal delay in the project’s completion

The sequence of critical activities from start to finish is the critical path

Look-Ahead Schedules

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Scheduling Considerations

Seasonal timingManpower availabilityLong lead items

Building in extra lead time allows time for...…shop drawing approval…long delivery items…planning the execution of the work

Scheduling Strategies

Time Extensions

A time extension is warranted only if an excusable or compensable delay impacts the critical path

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Schedule Delays

Non-excusableExcusable (Non-compensable)Compensable

Non-Excusable Delays

Contractor’s Fault

Poor planning, rework, insufficient manpower, poor management, late deliveries, etc.

Excusable Delays

Nobody’s Fault

Weather delays, strikes, acts of God, etc.

Non-compensable

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Compensable Delays

Owner’s (or A/E’s) Fault

Scope changes, design errors, etc.

Schedule Management

Key to successful schedule management is early recognition and response to delays

Contractual Strategies& Incentives

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Bidding Strategies

Phase the construction

Direct purchase long lead items

Bid an alternative schedule

Contractual Requirements

Specify owner’s rights and contractor’s duties related to schedule delays

Schedule Incentive Clauses

Three types:• Actual Damages• Liquidated Damages• Bonus/Penalty

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Actual Damages

Owner seeks reimbursement for damages actually incurred by the delay

Open-ended risk to contractor

Difficult to ascertain, burden of proof lies with the owner

Liquidated Damages

Eliminates arguments over valuation

Less risk for the contractor

Must be a reasonable projection of damages

Liquidated Damages

Limits the amount owner may collect

Need not be damaged to collect

Contractor may build damages into the bid

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Bonus/Penalty Clause

Penalty must be balanced by a bonus

Provides contractor with a positive incentive

Summary

Prioritize the project goals of cost, quality, and time

Recognize the discrete phases of the design process and manage the decision making process accordingly

Utilize contractual strategies as inducements and incentives for the contractor to meet the project schedule

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Page 22: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 23: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 24: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 25: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 26: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 27: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 28: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 29: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation
Page 30: Project Time Management - APPA · 2019-08-30 · Start Finish Predecessors 1 Material Procurement 100 days Tue 1/14/14 Tue 6/3/14 9 Construction ... Wed 5/21/14 12 PEMB - wall insulation