Delay is one of most common problems in construction projects resulting in construction disputes and claims. Basically delay is the time overrun either beyond the completion date specified in the contract or beyond the agreed-upon date for delivery of the project. Most large projects are completed later than these agreed-upon dates for a number of reasons. As per various research, 95% of construction projects are Schedule overrun and/or Cost overrun. It’s almost avoidable the delay in project that give rise to the claim-disputes. These delays can have severe financial impact on the project. Basically delays are a net loss situation: All the parties lose one way or the other and there are no real winners. Reputations are at stake as well.
When disputes erupt, delay claims may be filed, unless compromises are reached. To recover the damage caused by delays, both the delays and the parties responsible for them should be identified. However, delay situations are complex in nature because multiple delays can occur concurrently and can be caused by more than one party, or by none of the principal parties (force majeure, etc.). As a result contract schedule and payment dispute are becoming two most common items of dispute during the construction phase.
Delay Analysis is an investigation (usually forensic) into what has caused the project to run late and who is responsible for the delay events. Delay analysis is performed in three steps:
- Investigation Phase (evidence collection);
- Description Phase (analysis of facts collected during phase one);
- Presentation of the case to an arbitrator or jury to prove the claim
Some of the typical reasons for delays in project due to below but not limited to.
- scope creep
- variation/ change order
- Change in drawing/design
- Missing information
- Rework at site
- Regulatory approvals
- Land Acquisition (typical in road and metro projects)
- Cash flow issues
- Contractual problems between the prime contractor and subcontractors
- Inadequate resource allocation
- Force Majeure
DELAY ANALYSIS– it's importance?
Types of Delays:
Construction project delays can be classified according to their origin into four groups: 1.Excusable compensable (caused by the owner): For example, owner initiated changes in work; architect or engineer supplied designs which are defective; work site is not available to the contractor in timely manner, etc. 2.Excusable but not compensable (neither the contractor’s nor the owner’s fault): For example, force majeure; unusually severe weather conditions, etc. 3.Neither excusable nor compensable (caused by the contractor or its subcontractor): For example, failure of the contractor to mobilize work crews and start the work in timely manner; improperly allocating labor, material, and other resources; lack of coordination of subcontractors, etc. 4.Concurrent (delay caused by multiple factors)
Types of Schedule Delay Analysis Methods :
- Identification of Delay Events and Analysis of Delay Issues.
- IAP (Impacted as Planned) : It is a prospective analysis
- Retrospective (As-Built) Analysis vs. Contemporaneous (As-Planned) Analysis
- TIA (Time impact analysis) : Update Impacted Analysis
- Windows/Period Analysis to Address Dynamic Critical Path
- As-Built But-For Analysis
Out of Schedule Delay Analysis Methods :
- Entitlement of Extension of Time
- Assessment of applicability of Liquidated Damage of actual damage
- Establishment of Concurrent Delay
- Evaluation of Excusable and non-excusable delay
- Evaluation of compensable and non-compensable delay
- Entitlement for mitigation or acceleration cost
- Entitlement of prolongation cost
- Evaluation of Potential Basis for Allocation of Loss of Productivity Responsibility
DELAY ANALYSIS – How Can we help you?
We have specialization in analyzing, preparing and validating construction schedule delay and disruption . We have a team of certified Project
Management Professional and Scheduler. Our scheduling and project control experts are experienced in preparing baseline schedule on Primavera or
Microsoft Project, identifying critical paths of project, preparing catch-up or recovery plan, developing micro schedule , analysis floats on activates and
projects, evaluating overall project buffer etc.
Our experts can support in mitigating schedule delays and disruptions. We identify liability, quantify damages, and assist in preparing a request for
equitable adjustment or claim in a timely and cost-effective manner. During delay analysis, once all critical and near critical path activity delays have been
quantified, the origins and causes of each delay are determined. This process often involves the organization and analysis of extensive project
documentation to establish the cause-effect relationships of each party’s actions or inactions and the resulting delays. The responsibility for each delay is
then apportioned to either the Contractor, Owner, a third party if appropriate, and to force majeure or other excusable delays defined by the contract. By
performing these schedule analyses, we can provide supportable opinions with respect to time extensions, excusable and non-excusable delay ,
compensable delay, and acceleration. Our delay analysis services has been instrumental in the resolution of many of the liquidated damages disputes
between the contractors and the owners.