Construction Delay Analysis, Simplified

CONSTRUCTION DELAY ANALYSIS, SIMPLIFIED…

Presented By: Michael A. Pink

www.construxsolutions.com 2

ABOUT THE PRESENTER: MICHAEL PINK

Founder of Construx Solutions, LLC

Inventor of SmartPM: Data Capture, Storage and Analysis Technology

15 Years of Advisory Experience in Commercial Construction Industry

Specialization in Project Controls, Risk Management, Dispute Avoidance

Advisory Board Member for the School of Building Construction at Georgia Tech

Certified Planning and Scheduling Professional (PSP)

Certified Cost Engineer (CCE)


COURSE OBJECTIVES

Why is Delay Analysis Common in Construction?

Important Steps to Developing a Delay Analysis

Summarizing the Baseline Schedule

The As Planned versus As-Built Schedule

Identifying and Tracking the As-Built Critical Path

A Simplified Analysis for a Trade Contractor


WHY IS DELAY ANALYSIS NECESSARY IN CONSTRUCTION?

Most Project Bids and Baseline Schedules are “Best Case” Scenarios

Project Master Schedules are typically complex, with a lot of moving parts

Schedules and Budgets are generally impacted for multiple overlapping reasons

Lack of strong controls in Scheduling, Work Flow and Data Management

Construction is Expensive and there is a lot of money at stake.

A majority of Budget overruns are caused by Delay/Impacts issues

Crossed With

Crossed With

Crossed With

Crossed With

Crossed With


ENGINEERS &

ARCHITECTSOWNERS

CONSTRUCTION

MANAGERSCONTRACTORS OTHER

• Poor Design• Incomplete Design • Slow Response Time

• Excessive Changes• Delayed Approvals/

Permits• Prolonged Planning• Delayed Payment

• Poor Planning/ Scheduling

• Poor Contract Management

• Coordination Issues• Unachievable

Schedule• Poor Data

Management• Mismanagement of

Resources

• Unachievable Bid• Poor Productivity/

Performance• Mismanagement of

resources• Labor Shortages• Default

• Unanticipated Weather

• Changing Market Conditions

• Unforeseen Conditions

• Force majeure

WHAT IMPACTS THE SCHEDULE IN CONSTRUCTION?


Steps in Performing a Delay Analysis (on a master schedule)

Locate and Summarize the “Baseline” Master Schedule (Level 2).

Gain an understanding of the Planned Critical Path of the Master Plan.

Gain an understanding of the intended trade flow throughout the project (the order of

construction by area, crew and trades).

Generate an As Built Schedule (in the same ordering/level as the As Planned).

Compare the As-Planned Schedule to the As-Built Schedule (Level 2) .

Perform a holistic review to pinpoint delayed areas/issues; Try to find a theme.

Review contemporaneous information to determine the Historical (or “As-Built”) Critical Path.

Choose a methodology to highlight / prove “Critical Path” delay.

Measure Critical Path Delay to the Project over time.

Determine Causation for Critical Delay identified.


SUMMARIZING THE BASELINE MASTER SCHEDULE

QUESTION:

Why is this Necessary?

ANSWERS:

• A summary of the Master Schedule makes it more simple to digest the planned work flow of the entire job (ie. Logic).

• Comparisons at a Summary Level makes it easier and quicker to pinpoint delays

• A summary is much easier to explain than a full CPM Schedule


STEPS TO SUMMARIZING THE BASELINE MASTER SCHEDULE

Review the Schedule and figure out the “Trade Flow” of the Project.

Create a baseline summary that essentially divides the project by

area/location, and has a line item for each trade (Level 2). This will

become the basis for ANALYSIS. NOTE: “Areas” can be levels, site

locations, structures, etc. It depends on the project and the schedule.

Distinguish the Planned Critical Path in the Baseline Summary.

Prepare a Level 1 summary of that schedule for graphical purposes.

This will become the basis for DISCUSSION.

Study the Summary Schedule to understand the flow/logic of crews/

trades/resources


SUMMARIZING THE BASELINE SCHEDULE – LEVEL 2






SUMMARIZING THE BASELINE SCHEDULE (AGAIN) – LEVEL 1

NOTE: The Level 1 schedule needs to fit on ONE (1) page, whereas the Level 2 Schedule can be spread out across multiple pages.


QUESTIONS?


THE AS PLANNED VS. AS BUILT ANALYSIS

Find the latest contemporaneous schedule update.

Summarize “as-built” data points in latest schedule update to mirror

the Level 2 Baseline Summary. Compare.

NOTE: If no schedule update exists, use other sources to determine start and finish

dates for summary level activities (ie. payment applications, photo’s, dailies, etc.)

NOTE: Seek start dates and “substantial completion” dates for each activity.

Begin to analyze duration variances in each area, measure delay

from completion of one trade to the next and try to determine if there

appears to be a theme. (See example on next slide).

Overlap Areas, and see if a particular trade is impacting workflow

and driving delays

Begin to highlight delay issues for future analysis


LEVEL 2 COMPARISON EXAMPLE – BUILDING F

59 cd delay

81 cd delay(net 22 cd)




QUESTIONS?


WHAT IS THE CRITICAL PATH AND WHY IS IT RELEVANT?

• It is the longest “String” or “Path” of activities that logically connects the start date of the project to the end of the project.

• It is the one and only path on a project that has no float or slack and will results in a delay to the end date of the project if delayed.

• It is relevant because only a critical path activity can delay the project a certain point in time.

• Determining the “Historic” Critical path, is the most important step in building a Delay Analysis / Claim.

• Once Historical Critical Path is identified, one can assess responsibility for delay and then entitlement.


What is Compensable, Concurrent and Non Compensable Delay?

Once delay is identified, it is typically categorized into the following:

‒ Excusable Compensable – The Contractor was delayed and had no part in causing the delay (“Out of the its Control’); Granted time and money for extended GC’s, acceleration and/or impact costs.

‒ Excusable Non Compensable (“Concurrent”) – The Contractor was equally involved/responsible for a delay, along with another party (ie. owner, engineer, etc); Granted time, but no money for extended GC’s, acceleration, and/or other impact costs.

‒ Non Excusable Non Compensable – The Contractor was solely responsible the delay for a particular period of time; Granted no time and no money.

NOTE: On Projects where multiple delays are identified, each will need to be classified with the above categories to ultimately prepare a delay claim.


How do we determine the Historical Critical Path?

• Start with reviewing the Contemporaneous Schedule Updates.

• Try to determine if the schedule updates were used to “manage” versus used to “check the box”; Try these indicators:

‒ See if the project critical path was clearly delayed over time and the end date stayed the same for a long time. This

indicates the schedule is likely not usable to document CP.

‒ A lot of logic changes and shortened durations of activities. This indicates the schedule is likely unusable.

‒ If trades started getting stacked towards the end of the project and the end date stays the same. This indicates the

schedule is unusable for documenting historical CP.

‒ HINT: Create a Database of Schedule Updates with the following fields: Schedule Title, Data Date, No. of Activities, Project Completion Date, Go Forward Critical Path

• If the schedule updates seem legit, document the critical path and delay through a “Windows Analysis”.

• If the updates do not seem legit, one will need to either review meeting minutes, letters of delay, or calculate in an as planned versus as-built scenario.


WHAT IS A WINDOWS ANALYSIS?

A Technique that measures delay while documenting the historical critical

path through different periods (or windows) of time.

It essentially allows users to easily decipher what was deemed critical from

one period to the next, as the schedule is updated.

If properly utilized, it will document shifts in the critical path, from planned to

actual.

The more periods reviewed, the better. But lets not get crazy. Monthly

windows are best.

If properly performed it will be easier to digest, and more difficult to argue.

Windows Analysis should be analyzed in a Level 2 Summary, explained in a

Level 1 Summary.


WINDOWS ANALYSIS EXAMPLE


WINDOW 1 UPDATE

1/1

1/1


WINDOW 1 – SUMMARY OF DELAY


WINDOW 2 UPDATE

1/1

1/1


WINDOW 2 – SUMMARY OF DELAY


OTHER WAYS TO DETERMINE THE HISTORICAL CRITICAL PATH

• As Planned vs. As built Calculation Method

• Determine Variances by comparing Late Dates to Actual Dates

• Chart it out

• Compare

• Review of Meeting Minutes, Emails, Progress Reports to highlight

what appear to be “delaying issues”

• Read Correspondence

• Document Issues

• Highlight time frame


EXAMPLE: AS PLANNED V AS BUILT CALCULATION METHOD

0

50

100

150

200

250

300

350

8/10/2010 11/18/2010 2/26/2011 6/6/2011 9/14/2011 12/23/2011 4/1/2012

Core Area 1 Core Area 2 Core Area 3

Day

s o

f D

elay

Critical Path equals Highest Line

Concurrent Delay


QUESTIONS?


THE SIMPLIFIED METHOD

• As Planned Versus As Built Method Works Best.

• Step 1: Document the Agreed to Baseline (in Excel)

• Step 2: Document every day worked on which activity using daily

reports (in Excel).

• Step 3: Analyze variances, disruption, delay and even manpower

• Step 4: Determine Causation for budget overruns and delay

• NOTE: The project critical path and the trade contractors critical

path can be different. The trade contractor needs to determine both

for “offense” and “defense”.

• NOTE: If the trade contractors opts not to submit daily reports, this

analysis will become a lot harder.


SETTING UP THE AS PLANNED SCHEDULE INTO A VISUAL DATABASE


ADDING DAILY REPORT DATA INTO A VISUAL DATABASE


CONVERTING DAILY REPORT DATA INTO PERFORMANCE METRICS


PRESENTED BY: MICHAEL PINK

Contact Info:

C: 404 277 4387

O: 404 329 3000

[email protected]

Feel free to contact me directly if

you have any additional questions

Sign up for our upcoming courses:

— CPM Scheduling

— Data Management and Performance Analysis

— Delay Analysis in Construction

— Construction Claims Review/Prep

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Data & Analytics

Construction Delay Analysis, Simplified