1. CPD 6-2011Slides-Delay Analysis

7/28/2019 1. CPD 6-2011Slides-Delay Analysis

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Extension of Time –Various DelayAnalysis Approaches

By

Dharmendar PardasaniMSc(QS), FRICS, MCIOB

&

Narinder Sharma

MTech, MCIArb



Few Common Terms used in Delay Analysis-Definition

Critical PathLongest Path in the Program –Commonly known as the path along

which float is least (generally zero in a baseline program).

FloatThis is the period by which an activity can be delayed withoutdelaying the subsequent activity (Free Float) or without delaying theproject completion (Total Float)

Excusable Delay EventThis is the delay event, the risk of which lies with the Employer andoccurrence of which would entitle the Contractor for an Extension ofTime, if it cause the delay to the project completion.

Excusable and Compensable Delay EventThis is similar to Excusable Delay Event, with the difference thatthis delay event will entitle the Contractor for the cost inaddition to the time.



Various Delay Analysis Approaches

•As-Planned v As-Built

•Impacted As-Planned

•Collapsed As-Built

•Time Impact Analysis



As-Planned v As-Built

This method compares the duration of all the activities on theAs-Planned program with the corresponding activities on the

As-Built Program which are affected by the excusable delayevents especially the critical activities.

Advantages:

•Simple to use•Inexpensive

•Disadvantages:

•Suitable for only simple programs



Impacted As-Planned

•This method adds an excusable delay event into the As-Planned Program.

•This adding of delay can be as a separate activity or by

revising the duration of an existing activity.

•The revised completion date achieved as a result of this impactindicates the entitlement for an Extension of Time.

•Duration considered for the new activities is generally based onthe production rate considered in the original program, unless itis very irrational.



As Planned Impacted Approach

Pavement Layers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure

Contractor’s Delay

=15 days

Employer’s Delay

=35 days

Extension of Time = 35 DaysConcurrent Delay = 15 DaysHence Cost = 20 Days


=7 days Contractor’s Delay

=8 days

Employer’s Delay

=15 days

Employer’s Delay=20 days

Contractor’sDelay

Employer’sDelay



An Example of How toInsert Delay in a Program



Base Line Program



Inserting of Delay

Two New

Activities Added



Impacted As-Planned

Advantages:

As-Built Information is not required There is no hassle of having arguments over correctness of

Program Updates. The Extension of Time is determined as per the original

intent of the parties, i.e. any float in the activities comes intoeffect as per the As-Planned Program.

Disadvantages:• This method is very theoretical since it does not take into

account that the actual program vary a lot a as compared to

As-Planned Program.• Any errors in the program creep into the delay analysis• Any Extension of Time assessed may not be rational if the

actual sequence/progress is substantially different to As-

Planned Program.



Does not Take into Consideration Pre-existing Delays of OtherParty

Earth Works

Pavement Layers

Road FurnitureFoundation

Superstructure

Finishing

Pavement Layers

Road Furniture

Foundation

Supers

Finishing

Earth Works

Superstructure


Pre-existing

Employer’s Delay will

show impact onProgram incorrectly



Delay Impact Does Not Take into Consideration the ActualSequence /Progress of Works

Earth Works

Pavement Layers


Superstructure

Finishing

Pavement Layers


Finishing

Earth Works

Superstructure

Case 1 –Will show delay,while no actual delay

Case 2 –Will not show

delay, while there isactual delay

Work Completed

Earlier byContractor

If Float initially consumed by the Contractorbefore the Employer's Delay, still will not show

the delay if the duration of a subsequent activityincreased due to Employer’s Delay

Employer's Delay



Collapsed As-Built

In this method, all the Employer’s delays are removed from theAs-Built Program. The period by which it shrinks the As-BuiltProgram, reflects the total delay of the Employer or theExtension of Time.

Advantages:

•It takes into account the actual built program, hence certaintythat delay analysis is based on the actual sequence of workadopted in the project.

Disadvantages:

•The critical path resulting from removal of Employer’s delaysretrospectively may not result in the same critical path as existed

during the course of project.

•Creating an equivalent Baseline Program also involves lot ofsubjectivity

•The logic of the program has to be rebuilt once the Employer’sdelays are removed, which is complex



As built Collapsed Approach

Pavement Layers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure

Pavement Layers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure

Extension of

Time

Entitlement

Contractor’s

Delay

Employer’s

Delay

As-Built Program

Collapsed Program



Time Impact Analysis

Time Impact Analysis can be done by either of followingmethods,

• Snap Shot Analysis• Window Analysis (Or Time Slice Analysis)

Snapshot Analysis

Snapshot Analysis is normally used in contemporaneous delayanalysis. i.e. taking the progress update on the instance ofoccurrence of delay and incorporating the effect of excusabledelay in the progress update. This method is recommended in‘Delay and Disruption Protocol’ by UK SCL



Snapshot Analysis –Example 1 ( UK SCL -Delay & Disruption Protocol

EOT 4 Days

Cost 0 Days




EOT 9 Days

Cost 9 Days




EOT 4 Days

Cost 4 Days



Time Impact Analysis

Window Analysis

In Window Analysis, the entire period of project is divided into multipletime windows (Say one month or so depending upon the period of

updating the program).

Each Progress update is updated with the actual progress /anychange of sequence of work etc. This shall also include the effect of

delay due to any excusable events. Each window is then comparedwith previous window to analyze the effect of valid delay events.



Window Analysis

Advantages:

•This method is most favored and is most robust forretrospective delay analysis and has been adoptedinternationally in many litigation and arbitration cases.

•In each window, there are few activities (with negative float)that need to be analyzed to evolve the delay and thereforeprocess of delay analysis is more clearer than a global

approach. .

•It gives more realistic results, since it takes into account theproject status at the time of occurrence of delay events. Also, ittakes into account the changes by the Contractor in terms oflogic links etc.

•Calculation of Concurrent Delays is more practical to do.

.



Window Analysis

Disadvantages:

•Accurate Progress information to relate to each progressupdate needs to be maintained.

•This method is more time consuming than other methods andrequires more planning skills.



Window Analysis



Progress Update 1 (End of Month 1)

PavementLayers

Road Furniture

Foundation

Finishing

EarthWorks

Superstructure

PavementLayers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure


Contractor’sDelay = 10

Days

EOT = 0 Days

Cost = 0 Days

-10 Days

Contractor’sDelay

Employer’sDelay




PavementLayers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure


-20 Days Contractor’s

Delay = 20DaysPavement

LayersRoad Furniture

Foundation

Finishing

Earth Works

Superstructure

Employer’sDelay = 10

DaysEOT 0 Days

Cost 0 Days

- 10 Days

Contractor’s

Delay = 10

Days

Contractor’sDelay

Employer’sDelay

-10 Days




Progress Update 3 (End of Month 3)-20 Days Contractor’s

Delay = 20Days

PavementLayers

Road Furniture

Foundation

Finishing

Earth Works

Superstructure

- 10 Days

-20 Days

PavementLayers


Finishing

Earth Works

Superstructur

e

- 25 Days

Employer’sDelay = 10

Days

-5 DaysContractor’s

Delay = 25

Days

Employer’s

Delay = 25

Days

EOT 5 Days

Cost (View 1) 0 Days

Cost (View 2- Sharing)

2.5 Days




-20 Days

PavementLayers


Finishing

Earth Works

Superstructure

- 25 Days

-5 Days Contractor’sDelay = 25Days

Employer’s

Delay = 25

Days

EOT 10 Days

Cost (View 1) 10 Days

Cost (View 2- Sharing)

10 Days

-20 Days

PavementLayers

Road Furniture

Finishing

Earth Works

Superstructure

- 25 Days

-5 Days

Employer’s

Delay = 35

Days

Foundation

Contractor’s

Delay = 25

Days

- 10 Days




Summary of EOT & CostWindow Period EOT Cost (View

1)Cost (View2) Sharing

Window 1 End of Month 1 toEnd of Month 2

0 Days 0 Days 0 Days

Window 2 End of Month 2 toEnd of Month 3

0 Days 0 Days 0 Days

Window 3 End of Month 3 to

End of Month 45 Days 0 Days 2.5 Days

Window 4 End of Month 4 to

End of Month 510 Days 10 Days 10 Days

Total 15 Days 10 Days 12.5 Days



Concurrent Delays

•What is concurrent Delay

Where two or more events of approximate equal efficacy (one Employer’s Risk event an other Contractor’s Risk Event),

causes the delay in almost the same period

•General Practice in the Industry

•In case of Concurrent Delays, i.e. delay by the Employer aswell as the delay by the Contractor, only entitlement would beExtension of Time but no prolongation cost.

•Approach Advocated by Society of Construction Law

‘Delay and Disruption Protocol’

•Unless it is possible to separate out the cost caused by theContractor’s delay and the cost caused by the Employer’s

delays, the Contractor will not have an entitlement of cost incase of concurrent delay.



Concurrent Delays

What does the Contract Stipulates

Most of the contracts do not have any express provision to address the concurrent delays. As such, the parties intentions

are to be interpreted from the associated terms of contracts.

What are other ways to deal with Concurrent Delays

In various cases, the courts have addressed the issue ofconcurrent delays in different ways, such

Only time, but no cost based on the principle of ‘loss lies where it falls ’

Apportioning the cost to relate to the delay caused by eachparty.

Apportioning the time as well as the cost.



Concurrent Delays

What is the legal views that the courts in UAE may take on this issue,

Apportionment of damages based on the responsibility of respective

party is widely accepted in civil law. Accordingly, this approach maybe adopted by the courts.

However, again, apportionment may be viewed differently within civillaw, such as

Employer to bear its own loss of not being able to levy the delaydamages and contractor to bear its own loss of prolongation cost.

Entitlement for Extension of Time to be reduced due to delays byboth the parties. However, in that case, the cost is likely to beawarded for the reduced Extension of Time period.

Entire period of Employer’s delay be awarded as Extension of Timeand Cost be apportioned between the parties.

Due to unavailability of the relevant case judgments in UAE, it may

be difficult to arrive to a conclusion, what approach the courts maytake on this issue.



Heads of Prolongation Cost Claims

Site Overheads

Salaries or Wages of Indirect Staff such as project Manager / Engineers/Foremen/Store man/QSs/Safety Staff/Watchmen etc.

Engineer’s and Contractor’s Site Offices cost

Extended Safety Requirement

Handling /Protection works

Material Storage Yards

Scaffolding Extended Duration

Bond/Insurances Extension

Other costs

Head Office Cost (Mostly contentious)

Sub-Contractor’s claims

Delayed Release of Retention

Financing Cost for Delayed payments (Always contentious)

Loss of Profit due to lost opportunities (Always contentious)

Disruption (Reduced Productivity /Idle Resources etc.)

Off-site overheads



Good Planning –To Ensure Effective Use of

Baseline Program for Delay Analysis Activities Duration 7-28 Days

Activity Duration to be derived from Standard Production Ratesor the Company Standard Production Rates with reasonable

allowance for specific risks

Ensure Milestones are included

Ensure complete scope of work is included

Ensure activities are linked logically (correct predecessor andsuccessors)

Ensure reasonable period allowed for approvals

Allowance for Specified Provisional Sums

Verify critical path runs through logical chain of activities

Avoidance of open ends

Check for excessive floats

Lags to be checked



Good Planning –To Ensure Effective Use of

Baseline Program for Delay Analysis Check Holidays/Fridays assigned

Resources are loaded into the program and resources areleveled /balanced.

Cost is loaded into the various activities

Check for resources with respect to projected cash flow

Avoidance of (Constraints) Must start /Must Finish dates etc. asfar as possible.

Check what is the %age of critical activities to the total numberof activities, to ensure that it is realistically planned.



Final Word Follow the contract provisions related to techniques to be used

for Extension of Time Analysis, since that is what has beenagreed between the parties.

In case the provisions in the contract are not well defined, lookfor what could be acceptable the local laws by consulting thelegal experts.

Key word in Delay Analysis is to be Fair in our approach

Regardless of which approach we use (As Planned-Impacted orWindow Analysis), it is always good to maintain the bi-weekly or

monthly progress updates. Ensure protect the digital files.

As QSs, ensure we all learn Primavera, so that at least can readthe Program and understand the basis principles how the claim

can be made or defended



If Contract Terms Are Not Clear… Don’t

Expect Other Party to Rescue You DuringDispute…………



What is Fair differs from case to case

Apportionment is not fair in the given case……..



THANK YOU!

QUESTIONS?

(ONLY EASY ONES!!!)

Documents

1. CPD 6-2011Slides-Delay Analysis