1. cpd 6-2011slides-delay analysis
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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
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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.
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Various Delay Analysis Approaches
•As-Planned v As-Built
•Impacted As-Planned
•Collapsed As-Built
•Time Impact Analysis
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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
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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.
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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
Contractor’s Delay
=7 days Contractor’s Delay
=8 days
Employer’s Delay
=15 days
Employer’s Delay=20 days
Contractor’sDelay
Employer’sDelay
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An Example of How toInsert Delay in a Program
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Base Line Program
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Inserting of Delay
Two New
Activities Added
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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.
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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
Contractor’s Delay
Pre-existing
Employer’s Delay will
show impact onProgram incorrectly
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Delay Impact Does Not Take into Consideration the ActualSequence /Progress of Works
Earth Works
Pavement Layers
Road FurnitureFoundation
Superstructure
Finishing
Pavement Layers
Road FurnitureFoundation
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
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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
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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
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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
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Snapshot Analysis –Example 1 ( UK SCL -Delay & Disruption Protocol
EOT 4 Days
Cost 0 Days
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Snapshot Analysis –Example 2 ( UK SCL -Delay & Disruption Protocol
EOT 9 Days
Cost 9 Days
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Snapshot Analysis –Example 3 ( UK SCL -Delay & Disruption Protocol
EOT 4 Days
Cost 4 Days
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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.
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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.
.
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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.
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Window Analysis
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Progress Update 1 (End of Month 1)
PavementLayers
Road Furniture
Foundation
Finishing
EarthWorks
Superstructure
PavementLayers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Progress Update 2 (End of Month 2)
Contractor’sDelay = 10
Days
EOT = 0 Days
Cost = 0 Days
-10 Days
Contractor’sDelay
Employer’sDelay
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Progress Update 2 (End of Month 2)
PavementLayers
Road Furniture
Foundation
Finishing
Earth Works
Superstructure
Progress Update 3 (End of Month 3)
-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
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Progress Update 4 (End of Month 4)
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
Road FurnitureFoundation
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
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Progress Update 5 (End of Month 5)
-20 Days
PavementLayers
Road FurnitureFoundation
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
Progress Update 4 (End of Month 4)
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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If Contract Terms Are Not Clear… Don’t
Expect Other Party to Rescue You DuringDispute…………
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What is Fair differs from case to case
Apportionment is not fair in the given case……..
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THANK YOU!
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