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Method of Delay Analysis

The document discusses extensions of time (EOT) in construction contracts when delays occur. It explains that EOT clauses maintain the enforceability of liquidated damages provisions when the owner causes a delay. Various delay analysis methodologies are presented, including model-based methods like as-planned impact analysis and actual-based methods like as-planned vs as-built analysis. Prospective methods look forward to anticipate delays while retrospective methods establish actual delay causes by looking back. Examples of as-planned impact analysis are shown step-by-step to determine project delays and their impacts.

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100% found this document useful (1 vote)
147 views

Method of Delay Analysis

The document discusses extensions of time (EOT) in construction contracts when delays occur. It explains that EOT clauses maintain the enforceability of liquidated damages provisions when the owner causes a delay. Various delay analysis methodologies are presented, including model-based methods like as-planned impact analysis and actual-based methods like as-planned vs as-built analysis. Prospective methods look forward to anticipate delays while retrospective methods establish actual delay causes by looking back. Examples of as-planned impact analysis are shown step-by-step to determine project delays and their impacts.

Uploaded by

shalabh2381
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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PROJECT DELAYS & EOT

Sourav
Topics

1. Why Extensions of Time?


2. Methods of Analysis and examples
3. Schedule ‘Float’
4. Concurrent Delay
5. Exercise
6. Questions
Construction Contracts and Project Delays
• Construction Contracts have Completion Dates and
Liquidated Damages (LDs) are tied to Completion Date.

• Extension of Time (EoT) clauses maintain the


enforceability of LD provisions where there has been
failure/breach by Owner.

• If Owner causes a delay and there is no EoT clause,


time may become ‘at large’ and LD clause fails.
Construction Contracts and Project Delays

• Contract provisions define the basis of entitlement


for EoT.
• But most (if not all) Contracts are silent as to how to
demonstrate delay and prove entitlement.

• Debate about actual delay and contractual


entitlement.
• Hence ‘Delay Analysis Methodology’ has been
developed.

• Delay to be on the critical path.


Extension of Time Methods

• Estimate or Model Methods (investigate the EVENT


and its potential impact)

• Actual Methods (identify the DELAY period and


investigate what caused it)
Model Based Analysis

Activity 1 2 3 4 5 6 7 8 9 10 11

ACTIVITYA Event

Original
ACTIVITY B Completion

ACTIVITY C

Estimate of Delay
Actual Based Analysis

Activity 1 2 3 4 5 6 7 8 9 10 11

ACTIVITYA

Original
ACTIVITY B Completion

ACTIVITY C

Why Delay?
Model Based Methods

• Global and Net Impact Methods

• As-Planned Impact

• As-Planned But For

• Collapsed As-Built (As-Built But For)

• Time Impact Analysis (Impact / Update)


Actual Based Methods

• As-Planned vs As-Built (Windows)

• Time Slice Windows

• Longest Path
Prospective and Retrospective
Approaches

• Prospective methods look forward and


anticipate delay (Preventative)

• Retrospective methods look back and


establishes cause of actual delay (Allocation
of blame)
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7

A 6 wks

B 1 wk

C 2 wks

D 2 wks

PLANNED PROGRAMME
Original Overall Duration 7 Weeks
Critical Path runs through activities A and B
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks

B 1 wk

C 5 wks

D 4 wks

AS-BUILT PROGRAMME
As-Built Overall Duration 10 Weeks

Critical Path ran through activities C, D and B


Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weat her

A 8 wks d2 d4
Late Info
B 1 wk
VO

C 5 wks d1
Lack of Resources

D 4 wks d3

DELAYING EVENTS
Events d1, d2 and d4 Owner-responsibleDelays
Event d3 Contractor-responsible Delay
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7

A 6 wks

B 1 wk

C 2 wks

D 2 wks

AS-PLANNED IMPACTED
Uses planned programme
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7

A 6 wks

B 1 wk

C 2 wks

D 2 wks

AS-PLANNED IMPACTED
Add in first delay to occur (d1)
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7

A 6 wks

B 1 wk

C 2 wks

D 2 wks

AS-PLANNED IMPACTED
Add in first delay to occur (d1)
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7

A 6 wks

B 1 wk
VO

C 2 wks d1

D 2 wks

AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7
Bad Weather

A 6 wks d2

B 1 wk
VO

C 2 wks d1

D 2 wks

AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Add in 2nd delay to occur (d2) - No Critical Delay
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7
Bad Weather

A 6 wks d2

B 1 wk
VO

C 2 wks d1

D 2 wks

AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Add in 2nd delay to occur (d2) - No Critical Delay
Add in 3rd delay to occur (d3)
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7
Bad Weather

A 6 wks d2

B 1 wk
VO

C 2 wks d1
Lack of Resources

D 2 wks d3

AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Add in 2nd delay to occur (d2) - No Critical Delay
Add in 3rd delay to occur (d3) - 2 Weeks Critical Delay
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date
Week 7
Bad Weather

A 6 wks d2 d4
Late Info
B 1 wk
VO

C 2 wks d1
Lack of Resources

D 2 wks d3

AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Add in 2nd delay to occur (d2) - No Critical Delay
Add in 3rd delay to occur (d3) - 2 Weeks Critical Delay
Add in 4th delay to occur (d4) - No Critical Delay
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weat her

A 8 wks d2 d4
Late Info
B 1 wk
VO

C 5 wks d1
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Uses as-built programme logic linked
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weather

A 8 wks d2 d4
Late Info
B 1 wk
VO

C 5 wks d1
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and first Owner delay removed
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weat her

A 8 wks d2 d4
Late Info
B 1 wk

C 2 wks
LLaLacLakcLakcoLakofLakcofRLako
cfRLackeofRLakcesofRLakceosfRLakceosfR
uofR
La
L
kca
eosurofRLakceosurofRLakcesouro
fRka
ece
souorfRecsourofRecesosurfRecreso
cse
ursourecosurecsourecsurcere
scsess

D 4 wks dd3ceodsuro3d3d3d3d3odsurofR3kcedceso3surod3d3d3Rde3csosud3d3d33

COLLAPSED AS-BUILT
Critical Path Identified and first Owner delay removed
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weather

A 8 wks d2 d4
Late Info
B 1 wk

C 2 wks
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and first Owner delay removed
1 Weeks Critical Delay Allocated to d1
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weather

A 8 wks d2 d4
La te Info
B 1 wk

C 2 wks
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and next Owner delay removed
1 Weeks Critical Delay Allocated to d1
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weather

A 7 wks d2

B 1 wk

C 2 wks
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and next Owner delay removed
1 Weeks Critical Delay Allocated to d1
1 Weeks Critical Delay Allocated to d4
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10
Bad Weather

A 7 wks d2

B 1 wk

C 2 wks
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and next Owner delay removed
1 Weeks Critical Delay Allocated to d1
1 Weeks Critical Delay Allocated to d4
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 6 wks

B 1 wk

C 2 wks
Lack of Resources

D 4 wks d3

COLLAPSED AS-BUILT
Critical Path Identified and next Owner delay removed
1 Weeks Critical Delay Allocated to d1
1 Weeks Critical Delay Allocated to d4
1 Weeks Critical Delay Allocated to d2
Results from Model Based Methods

Delay As-Planned Impact Collapsed As-Built

d1(VO) 1 week critical delay 1 week critical delay

d2 (bad weather) no critical delay 1 week critical delay

d3 (lack of resources) 2 weeks critical delay No critical delay

d4 (late info) No critical delay 1 week critical delay


Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks

B 1 wk

C 5 wks

D 4 wks

AS-PLANNED vs AS-BUILT
As-Built Overall Duration 10 Weeks

Critical Path ran through activities C, D and B


Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks
1 2 3
B 1 wk

C 5 wks

D 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)


Programme divided into time slices
and analysed progressively
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks
1
B 1 wk

C 5 wks

D 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)


Programme divided into time slices
and analysed progressively
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks
2
B 1 wk

C 5 wks

D 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)


Programme divided into time slices
and analysed progressively
Activity Dur 1 2 3 4 5 6 7 8 9 10 11
Completion Date Completion Date
Week 7 Week 10

A 8 wks
3
B 1 wk

C 5 wks

D 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)


Programme divided into time slices
and analysed progressively
Who Owns the Float ?
Contract Completion Date

10 days FLOAT 5 days

10 days
Contract Completion Date

Zero FLOAT
10 days

Owner 10 days
Delay
5 Days
Contract Completion Date

10 days FLOAT minus 5 days

Owner 10 days
10 days
Delay
5 Days

Contractor
Delay
5 Days
Contract Completion Date

10 days FLOAT minus 5 Days

Owner 10 days
10 days
Delay
5 Days

Contractor
Delay
5 Days

Original Contract period


CONCURRENT DELAY
Contract Completion Date
Contractor
Owner resource
Owner
revisions problem
Revisions

4 weeks

Bad 4 weeks
Weather
Owner revision
to the Fit Out

Structure

M&E
Contractor
Delay to M&E
Procurement
Fit out
Contract Completion Date
Delay
A

4 weeks

Delay Actual
B 4 weeks Completion

3 weeks
Contract Completion Date
Contractor’s
Fault

4 weeks
Actual
Completion
Owner’s 4 weeks
Fault

3 weeks
Contract Completion Date
ContractorD
elay ’s
EFFECT
FaultA
OF THE OWNER’S FAULT

4 weeks
Actual
Owner’s Completion
4 weeks
Fault

3 weeks 1 Week EOT


Contract Completion Date
Contractor’s
Fault

4 weeks 1 week LDs


Actual
Completion
EmployerD 4 weeks
elay’s
FaultB
3 weeks
EFFECT OF CONTRACTOR’S FAULT
Contract Completion Date
Owner’s
Fault

4 weeks
Actual
Completion
Contractor’s 4 weeks
Fault

3 weeks
Contract Completion Date
Owner’s
Fault
2 Weeks
4 weeks EoT

Actual
ContractorE Completion
4 weeks
mployerDela
y’s
FaultFaultB
3 weeks
EFFECT OF THE OWNER’S FAULT
Contract Completion Date
ContractorE
mployerDela
EFFECT
’s
y’ OF CONTRACTOR’S FAULT
FaultFaultA

4 weeks Actual
Contractor’s Completion
4 weeks
Fault
No LDs
3 weeks
Q-?
The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme
The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Delay 2 Notified
Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B
Delay 3
Inherent Owner’s
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Delay 2 Notified
Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B
Delay 3
Inherent Owner’s
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Delay 2 Notified
Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B
Delay 3
Inherent Owner’s
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor
Delay 4 Crane Delay

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Delay 2 Notified
Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B
Delay 3
Inherent Owner’s
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor
Delay 4 Crane Delay

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Delay 1 Slow Progress Planned Actual
Completion Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Delay 2 Notified
Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B
Delay 3
Inherent Owner
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor
Delay 4 Crane Delay

Approved Programme As-Built Projected


The Switch Room
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress Planned Actual
Completion Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor Late Switchgear
Delivery

3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault Crane Delay
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


WHO IS RESPONSIBLE FOR
THE DELAY?
Collapsed As-Built Method

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor
Late Switchgear
Delivery
3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault Crane Delay
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-Contractor A

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault Crane Delay
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-ContractorA
Both
2 WALLS & ROOF
equally
Main Contractor critical

3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-Contractor A
Reverse
2 WALLS & ROOF the
Main Contractor Sequence

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-Contractor A
Reverse
2 WALLS & ROOF the
Main Contractor Sequence

3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B
Inherent Owner’s
Design Fault
4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Collapsed As-Built Method
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress

1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

200T CRANE
Main Contractor

Approved Programme As-Built Projected


Owner’s Liability for Week 11 & 12
- As-Planned Impact Method
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
plus
Sub-Contractor B 1 Month’s Float
Delay 3
Inherent Owner’s
Design Fault
4 ACCESS GANTRY Discovered
Main Contractor

200T CRANE
Main Contractor

Approved Programme
Concurrency - No Critical Delay
by Subcontractor A
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

3 SWITCH GEAR
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

2000T CRANE
Main Contractor

Approved Programme
Dominant Delay –
2 Weeks Delay by Subcontractor B
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Planned
Completion
1 STEEL FRAME
Sub-ContractorA

2 WALLS & ROOF


Main Contractor

Late Switchgear
3 SWITCH GEAR Delivery
Sub-Contractor B

4 ACCESS GANTRY
Main Contractor

2000T CRANE
Main Contractor

Approved Programme
Which do you think?

Answer 1 Answer 2
Month 11 ‐ Subcontractor A Month 11 – Main Contractor
Month 12 ‐ Subcontractor B Month 12 ‐ Subcontractor B
Month 13 ‐ Subcontractor B Month 13 ‐ Subcontractor B

Answer 3 Answer 4
Month 11 ‐ Owner Month 11 – Owner
Month 12 ‐ Subcontractor B Month 12 – Owner
Month 13 ‐ Subcontractor B Month 13 ‐ Subcontractor B

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