Delay analysis in construction contracts
Construction contracts are notorious for delays. Casual observers are less likely to understand how we measure and assess delay, why it matters and how to minimise its effects.
This article will give a brief introduction and overview of what you need to know about the process and how it can affect your construction project.
Delay analysis definition
This is a technique used in project management to ensure that the most critical tasks are completed first – helping keep projects on schedule and within budget.
Delays are time delays, such as late deliveries, non-achievement of milestones or deadlines, etc.
What is delay analysis in construction?
In construction, a delay analysis method is a process that helps identify the cause of delays in construction projects – with the aim of reducing them.
Many factors CAN contribute to these delays, such as personnel, equipment, materials, and even weather conditions.
This type of analysis method can also be used in other sectors like the manufacturing industry.
What can delay a construction project?
A delay could be a result of something as simple as an electrical outage or a change in design.
It could also be due to weather conditions, labour issues, or other unforeseen circumstances like natural disasters or criminal damages.
Why is delay analysis important in construction?
Delay analysis is a contractual requirement in most construction contracts.
It is the contractor’s responsibility to show that they have taken all necessary steps to avoid a delay in the construction process. If they are unable to do so, it becomes the owner’s responsibility or their representative. The contract should include a protocol for calculating delays in terms of money and time.
The delay analysis clause may postpone a project’s completion when unexpected events occur. A delay analysis clause can also accommodate changes in work schedules, or circumstances beyond either party’s control, by extending the contract term.
The cost of a delay will depend on the duration of the project delay and the materials used. Therefore, it is crucial to have a protocol in place to identify potential delays and its causes early on – and address them before they become more costly.
Schedule Delay Analysis techniques in construction
There are five commonly used delay analysis methods in construction.
The following are the five techniques and their definitions
Impacted As-Planned Analysis
The impacted as-planned analysis involves the insertion of delay and disruption events into a baseline or as-planned schedule to determine the hypothetical impact of such events. This method involves modifying the baseline or as-planned schedule to include new activities and logic to represent delay and disruption events.
The difference between the project completion date in the impacted as-planned schedule and the original as-planned schedule quantifies the delay. This methodology is simple and does not require an as-built schedule. However, it is considered a hypothetical model compared to other delay analysis methods as it does not rely on as-built data.
Time Impact Analysis
The time impact analysis (TIA) is a comprehensive technique used to analyze each delay event individually in chronological order to calculate its impact. This methodology quantifies each delay based on the schedule immediately before and after the delay event took place. The difference between the project completion date before and after the event determines the extent of the delay.
TIA does not require an as-built schedule and is typically easy and quick to perform. This technique is widely accepted when used during the project to timely resolve delayed performance.
However, it is considered a hypothetical model compared to other delay analysis methods as it does not rely on as-built data, and it can be overwhelming to perform if there are numerous delay events.
Time Slice Windows Analysis
The windows analysis is a retrospective technique that divides the total project duration into smaller periods (commonly referred to as windows) and quantifies the as-built critical path delays for each of these periods.
This form of schedule delay analysis compares the baseline or as-planned schedule’s forecasted critical path to the as-built schedule, reflecting the as-built conditions for each selected period.
This method typically relies upon the schedules in their contemporaneous state of submission (as-is). The windows analysis is easy to calculate and understand. It identifies delays as well as acceleration quantities and considers real-time conditions and actual construction progress.
Compared to other delay analysis methods, windows analysis is time-consuming, requires complete project records, and depends on a reliable baseline or as-planned schedule and as-built performance information.
As-Planned versus As-Built Windows Analysis
The as-planned vs. as-built analysis is a simple technique used to compare the baseline or as-planned schedule to the as-built schedule or a schedule update reflecting progress.
This method compares the planned start and finish dates with the actual start and finish dates of activities on the as-planned critical and near-critical paths. This identifies delayed starts, extended durations and late finishes.
This method is most effective on simple projects with short durations and one clear critical path that remains consistent throughout the entire project.
Compared to other delay analysis methods, its accuracy diminishes as the actual critical path deviates from the planned schedule.
Collapsed As-Built Analysis
The collapsed as-built analysis is essentially the opposite of an impacted as-planned analysis.
This method involves removing delay events from the as-built schedule to determine when the project should have been completed “but for” the delay events.
Compared to other delay analysis methods, it is easy to understand and does not require an as-planned schedule or contemporaneous schedule updates. However, it can be manipulated with the insertion of after-the-fact logic ties and delay events.
Delay Analysis Report
The Delay Analysis Report (DAR) is a tool for identifying and managing construction schedule risk. The report will focus on those aspects of work that are now delayed by up to 10% and possibly 3-4 weeks head start to bring forward any changes.
By identifying these causes that have some degree of control, it should be possible for the project team to find measures appropriate mitigation.
Doing so allows a change to reduce or remove this effect from critical areas that are not yet showing any signs of delay but are likely to do so if they follow past performance levels.
Delay analysis in Primavera P6
Primavera P6 is a project management software that helps manage both the projects’ schedule and cost. This software is applicable in many types of industries, including the construction industry. It helps plan, execute, and control the work on-site for all organisations involved in any construction works like civil engineering, architectural, etc.
Primavera P6 is a software that is easy to use. You can create charts from the data collected in this tool and export them into different formats such as PDF or XLSX file format.
Primavera P6 has been used by over half a million users worldwide since its launch in 1996, so it’s safe to say that it works! It supports both Windows OS and macOS operating systems, making it easier for users who have different platforms on their computers at home or workplace.
Some big organisations worldwide also use Primavera P6, including leading contractors like Bechtel Corp., Fluor Corp., JCB Ltd., Larsen & Toubro Ltd., Louis Berger Group Inc, etc.
Primavera P6 can definitely be used as a schedule delay analysis tool as it can generate an analysis report based on various factors affecting delay in each task and its components. You can use this tool to get a complete picture of how much time will be lost to possible project delay. This way, you can take steps to prevent such delays from happening or minimise their effects.
This video will demonstrate the use of Primavera P6 for the ‘Impacted As-Planned’ delay analysis technique, commonly used to seek time extensions due to unforeseen circumstances.
If you prefer written steps; please follow the following link for steps on delay analysis using Primavera P6:-
Benefit of using Primavera P6 in Delay Analysis
Delay analysis in Microsoft project
Microsoft Project is software that helps you plan, monitor and schedule work on your construction site.
This project management solution will enable you to organise people, equipment, time and money by the task or overall cost of the project effectively from start-to-finish.
Microsoft Project’s straightforward interface makes it an excellent tool for contractors who need powerful scheduling technology but don’t have an IT team managing their systems.
With Microsoft Corp.’s cloud reliability backing up every purchase of this product, the job in hand goes a lot smoother.
Some of the main benefits of using MS Project for your construction projects are:-
Better time management control
Monitor and schedule workloads quickly
Customise tasks and project plans to suit your needs
Useful for construction sites of all sizes
Works well with other Microsoft programs
You can use MS Project for delay analysis technique; Impacted As-Planned.Watch the video
Also, you can apply prospective schedule delay analysis using MS Project.
What is a good book to get started on analyzing delays in construction contracts?
Here are a few recommendations:-
Delay Analysis in Construction Contracts
Author: American Society of Civil Engineers
Publisher: John Wiley & Sons Inc
Shop at Book Depository
Construction Delays: Understanding Them Clearly, Analyzing Them Correctly 3rd Edition
Author: Mark F Nagata, William A Manginelli, Scott Lowe, Ted J Trauner Jr.
Shop at Amazon
Construction Delay Analysis Simplified: A Step-by-Step Guide for the Analysis and Formulation of Delay Claims
Author: Hendrik F Prinsloo
Publisher: Independently Published
Shop at Book Depository
Construction Delay Analysis Techniques
Author: Khalid S Al-Gahtani
Publisher: LAP Lambert Academic Publishing
Shop at Book Depository
Note: RPM Schedulers has no affiliation with the authors, publishers, nor online book stores.