Time Management Guidelines - cmaanet.orgcmaanet.org/files/publications/PubsDload/CMAA Time Management...CMAA 2012 Time Management Guidelines | Page v Preface These Time Management

Time Management Guidelines

2012 Edition

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Copyright Construction Management Association of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database of retrieval system, except as permitted by Sections 107 or 108 of the 1976 United States

Copyright Act, without the prior written permission of the publisher.

CMAA 2012 Time Management Guidelines | Page iii

Table of Contents Table of Contents .................................................................................................................................. iii Preface.................................................................................................................................................... v Chapter 1: Introduction .......................................................................................................................... 1

Introduction .................................................................................................................................................................... 1 Time Management Basics ............................................................................................................................................. 2 Role of CM in Time Management .............................................................................................................................. 2 Organization of this Document .................................................................................................................................. 3

Chapter 2: Pre-Design Phase ................................................................................................................. 5 Introduction .................................................................................................................................................................... 5 Defining the Appropriate Level of Scheduling ......................................................................................................... 5 Master Schedule Development .................................................................................................................................... 6 Master Schedule Contents ............................................................................................................................................ 6 Master Schedule Update ............................................................................................................................................... 9 Design Phase Milestone Schedule ............................................................................................................................... 9

Chapter 3: Design Phase ....................................................................................................................... 11 Introduction .................................................................................................................................................................. 11 Role of the CM ............................................................................................................................................................. 11 Design Schedule ........................................................................................................................................................... 11 Design Schedule Review and Acceptance ................................................................................................................ 12 Monitoring and Updating the Design Schedule ...................................................................................................... 13 Pre-Bid Construction Schedule ................................................................................................................................. 14 Developing Schedule-Related Contract Provisions and Specifications .............................................................. 15

Chapter 4: Procurement Phase ............................................................................................................. 21 Introduction .................................................................................................................................................................. 21 Role of the CM ............................................................................................................................................................. 21

Chapter 5: Construction Phase ............................................................................................................ 25 Introduction .................................................................................................................................................................. 25 Role of the CM ............................................................................................................................................................. 25 Role of the Construction Schedule ........................................................................................................................... 25 Construction Schedule Development ....................................................................................................................... 26 Construction Schedule Review .................................................................................................................................. 27 Construction Schedule Acceptance........................................................................................................................... 28 Construction Schedule Updates ................................................................................................................................ 29 Construction Schedule Update Review .................................................................................................................... 30 Updating Options ........................................................................................................................................................ 31 Construction Schedule Revision Review .................................................................................................................. 32 Analyzing Delay Impact of Change Orders............................................................................................................. 33 Analyzing Time Extension Requests ........................................................................................................................ 35 Concurrent Delays ....................................................................................................................................................... 36 Recovery Plan ............................................................................................................................................................... 37 Short Interval Schedule ............................................................................................................................................... 37

Chapter 6: Post-Construction Phase .................................................................................................... 39 Introduction .................................................................................................................................................................. 39 Role of the CM ............................................................................................................................................................. 39 Use of CPM Schedule ................................................................................................................................................. 39 As-Built Schedule ......................................................................................................................................................... 40 Occupancy Plan............................................................................................................................................................ 40 Commissioning and Move-in ..................................................................................................................................... 42 Sustainability Verification ........................................................................................................................................... 43

Index .................................................................................................................................................... 45

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CMAA 2012 Time Management Guidelines | Page v

Preface These Time Management Guidelines have been prepared to provide Construction Managers (CM) and the construction industry with general guidelines for the successful management of “time” on construction projects. These procedures supplement Chapter 4 of the “CM Standards of Practice,” also published by the CMAA. The intent of these guidelines is to go beyond the technical aspects of “scheduling” and address the management of time. There are many excellent textbooks and reference books providing detailed information on Critical Path Method (CPM) scheduling. No attempt has been made to duplicate these reference materials. Instead, the focus of these guidelines is on the appropriate use and application of scheduling tools to manage time successfully on construction projects. Construction Management is successful when it strikes the appropriate balance between cost, time, and quality to achieve the project team’s established goals. All three components are interconnected, influencing each other. These guidelines deal with the time component of this triumvirate. These guidelines are reflective of the CM’s role on projects, where the CM acts as the Owner’s representative, managing each phase of the project, and overseeing the performance of each project team member, including the Design Professional, the Contractor, and other parties contracted by the Owner. The CM’s exact responsibilities may vary and are a function of the CM’s agreement with the Owner and the project delivery method used. These guidelines assume a “typical” CM relationship with the Owner. This first revision to the Time Management Guidelines was the result of the efforts and hard work of several CMAA members. Scott Lowe, Chair of the Time Management Committee, provided leadership, coordination, and wrote and edited, too. Jesus de la Garza, Carmen Rainieri, Rod Olson, Brad Spain, Steve Earp, Mario Maciel, Dwain Thomas, and Chris Carson each made major contributions to this first revision, as well. The original guidelines were developed through the substantial efforts and participation of several CMAA members. Mani Subramanian, chair of the Time Management Committee, provided leadership, coordination, and wrote and edited several sections. Jerry Priegel, Larry Sivak, Ronald Pennella, Karl Burrelsman, and Jim Palmborg each made major contributions to the original procedures, as well. The guidelines benefited greatly from the review of Dick Maes, Joe McAtee, Gary Berman, Rocco Vespe, and Chris Griffith. The CMAA is a voluntary organization and relies on the voluntary efforts of its members for its success. The organization appreciates the contribution made by both teams in bringing these guidelines to fruition.

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Chapter 1: Introduction

Introduction

The standards of construction management practice relative to time management were defined in terms of actions to develop, monitor, and implement schedules, and prepare related periodic reports. How these tasks are accomplished and in what detail they are communicated depend upon the particular project type, size, complexity, and constraints of time, cost, and quality. In addition, the CM's specific roles and responsibilities and, hence, the standard against which a CM's performance will be measured, must always consider the contract or agreement under which the CM is working. Generally, the CM's responsibilities related to time management can be summarized as follows:

1. The CM ensures that the project team develops a project plan that considers time. 2. The CM ensures that the project team develops a schedule both for planning and monitoring

time on the project. 3. The CM guides the project team as to the appropriate form and content of the project

schedule, as well as making sure that the schedule functions as an effective communication tool.

4. The CM acts as the leader of the time management and scheduling effort. This last responsibility itself has several basic pieces. Depending on the contractual relationships established among the parties on the project, the CM may be responsible for all or some portion of the following tasks:

1. The CM may be responsible for development of the project schedule. This may include everything from collecting the necessary data related to work activities, durations, resources, and logic, to assembling these pieces into a coherent plan for time on the project.

2. The CM may be responsible for updating the project schedule on a periodic basis to allow the project team to track, measure, and monitor its progress against its original plan and revisions to this plan.

3. The CM may be responsible for revising the project schedule to reflect changes in the scope of the work or the plan for execution.

4. The CM may be responsible for monitoring and analyzing the schedule to track project performance relative to time and alert other parties to deviations from the established plan.

5. The CM may be responsible, given that the project has fallen behind, for recommending mitigation actions to be taken by the project team to bring the project back within established goals or, alternatively, recommending revisions to project goals.

6. The CM should advise the Owner regarding schedule provisions to be included in the design, construction, and other project contracts.

7. The CM will likely be responsible for review and recommendations regarding acceptance of the Contractor's Initial and Baseline Schedules during the Construction Phase.

8. The CM will likely be responsible for review, monitoring, and recommendations regarding acceptance of schedule updates and revised schedules.

9. The CM will likely be responsible for evaluation of time extension requests or delay claims submitted by other parties involved on the project, most commonly the Contractor.

The sections that follow describe the guidelines by which the CM accomplishes these basic responsibilities.

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Time Management Basics

Time management can be broken down into two major categories:

Planning (Plan Your Work)

Implementation (Work Your Plan)

Project work is best performed twice. The first time, the work is “performed” through the planning process. Then, and only then, is the project team in a position to execute the actual work efficiently. Planning starts with the establishment of project goals for cost, time, and quality, and it is at this point that the project team should make the inevitable compromises necessary to bring these three goals into harmony. While all three components are important, different projects will weight them differently, and make different tradeoffs to reach the optimum combination for the project. The priorities and the balance of these components must be established with the Owner, consistent with its needs and goals for the project. Within the confines of these established goals, the time management plan for the project takes shape. Schedules and scheduling are tools that are used in planning time for a project. Implementation is the act of executing this time management plan. It involves managing the efforts of the project team in accordance with the schedule. However, it is the rare project that is executed as exactly as planned. Consequently, managing time also requires modification of the plan to address the inevitable issues that arise during the course of the project. This includes taking timely action to assist the team in maintaining its time-related goals. It may also include evaluation of the impact to cost and quality resulting from delays to time management goals. Schedules are valuable tools that assist the CM in managing and implementing the established plan and making the right decisions as the original plan is modified to adapt to the realities of the project. In managing time, the overall project goals must always be kept in focus. The ultimate success of the project depends upon striking the right balance between quality, cost, and time.

Role of CM in Time Management

The timely completion of a project relies on contributions from all team members. Design Professionals need to keep to the requisite timeframes. The Owner needs to carry out its review functions and render decisions in a timely manner. Contractors need to plan and execute their work on time. Other team members, such as inspectors, regulatory agencies, and the many other parties involved in the successful execution of a project, also need to complete their responsibilities timely. The CM’s role in time management is to act as the coordinator and catalyst for the activities of the other team members, and to assist the team in establishing and meeting the time management goals of the project. Successful CMs must be able to synthesize the Owner’s goals and needs into a well-formulated time management plan that is in balance with other requirements of the project and the realities of construction. They must be skilled in anticipating and avoiding problems, resolving or facilitating the resolution of problems in a timely manner, and monitoring the implementation of these resolutions to avoid time impacts. They must be able to identify critical issues and focus the team’s energy on resolution of such issues. Besides these management skills, construction managers need to have adequate technical knowledge of scheduling, schedule monitoring, schedule updating, and the use of schedules as analytic tools to determine project status, measure delays, determine responsibility for delays, and recommend the actions needed to recover delay and get the project back on track.


Organization of this Document

This document is organized to reflect the various phases of a project. Subsequent sections are organized for each project phase as follows:

Pre-Design

Design

Procurement

Construction

Post-Construction

Time management elements, the role of the CM, and the proper use of time management tools are discussed for each phase.



Chapter 2: Pre-Design Phase

Introduction

Master-level planning for the project is carried out during the Pre-Design Phase. The project starts with the setting of project goals. The CM helps establish the goals for time, cost, and quality and their relationship to each other; develops, with the Owner, the overall plan or approach to the project to achieve the established goals; develops the time management plan for the project, usually represented initially by a Master Schedule; and prepares the Design Phase Milestone Schedule based on the Master Schedule. These documents are discussed in greater depth later in this section. In addition to planning out the overall project at the Master Schedule level, the CM also monitors and expedites the activities during the Pre-Design Phase, using the Master Schedule as the embodiment of the established plan to meet the Pre-Design Phase goals.

Defining the Appropriate Level of Scheduling

The CM determines the appropriate scheduling systems and procedures for monitoring the schedule during the Pre-Design Phase. Typically, the CM also develops the schedule for this phase. In determining the appropriate systems and monitoring procedures, the CM should consider the following project characteristics:

Size of the project

Complexity of the project

Project timeframe

Owner’s information needs

The availability of resources

Site and logistical constraints

Requirements of governing agencies

Necessary phasing of the project

Number and type of contracts contemplated

Timing and frequency of updates Decisions made at the beginning of a project will affect later phases of the project’s execution. Thus, it is during the Pre-Design Phase that consideration should be given to the appropriate scheduling tools and procedures related to the Master Schedule, Design-Phase Schedule, Procurement-Phase Schedule, Construction-Phase Schedule, and the Post-Construction Phase Schedule. The development and maintenance of these schedules need to be considered in defining the preferred attributes of project schedules during the schedule design process. Decisions to be made include the form of the schedule (whether critical path method (CPM) or bar chart), the level of detail (number of activities), and the responsible team member for schedule development and preparation of updates (the CM, the Design Professional, the Contractor, some combination, or another party altogether). It is self-evident that smaller and simpler projects may require only simple schedules. While bar charts may suffice for Master Schedules and Design-Phase schedules for such projects, CPM schedules should also be considered. The availability of computers, the user friendliness of today’s software packages, and the more widespread knowledge of CPM scheduling techniques make CPM


schedules accessible to most team members. The advantage of a CPM schedule, even for simple schedules, is that logical relationships between activities are preserved in the schedule. This makes many of the tasks associated with updating, monitoring, and revising a schedule much more efficient and effective. It also means that the impacts of any delays can be seen more easily, addressed more quickly, and the actions taken to address delays monitored more effectively. The resources available and the anticipated skill levels of the project team should be an important consideration in choosing the type of schedule. For example, it may be of limited utility to require a Design Professional to produce and maintain the Design Schedule in CPM format, if the Design Professional lacks the background and skill to do it. It may be better to require a bar chart that the Design Professional can develop and maintain with greater reliability (and, perhaps, at lower cost). Alternatively, a CPM schedule could be developed with the CM assisting the Design Professional. Whatever approach is selected to scheduling a project, scheduling is a means to an end, not an end itself. It is a tool for time management. It is important to select the appropriate tool for the task.

Master Schedule Development

The Master Schedule is developed at the outset of the project. Its purpose is to establish the overall time-related goals of all project phases, and to graphically depict the time-related components of the project plan. The Master Schedule is typically prepared at a more summary level than the detailed schedules produced during later phases of the project. The Master Schedule highlights major project milestones, with more detail provided relative to the “front-end” activities of the project associated with the Pre-Design and Design Phases. The Master Schedule typically specifies the proposed starting and finishing dates for each contract and the dates by which certain critical construction activities must be completed. In developing the Master Schedule, the CM must take into consideration the three components of project management – cost, time, and quality. For example, the overall duration of the project and the duration of each phase have a significant impact on cost. After developing various alternative approaches for phasing, sequencing, managing, and executing the Pre-Design, Design, Procurement, Construction, and Post-Construction Phases of the project, the CM will review the alternative approaches with the Owner and make recommendations as to the best overall approach to completing the project. The CM will then work with the Owner to finalize and obtain the Owner’s acceptance of the overall plan for the project. With the Owner’s acceptance of this plan, the CM can prepare the Master Schedule for the Owner’s final review and acceptance. The CPM is the preferred format for the Master Schedule, even though a bar chart format might suffice for simple projects. Updating or revising a Master Schedule developed in a CPM format is more efficient. This is because CPM schedules allow for a quicker evaluation of project status based on the established relationships between activities available in the CPM scheduling format. Updating a bar chart schedule is more time consuming and can result in project delays not being recognized if the original basis for the juxtaposition of the bar chart schedule activities is forgotten or ignored.

Master Schedule Contents

A general list of activities that may be included in a Master Schedule follows. The nature of the project will determine if further breakdown or summarization of these activities is required.

Pre-Design Phase

Finalizing Construction Management Plan


Selecting PM/CM (including issuance of the RFP, finalization of the shortlist, conducting interviews, making the final selection, obtaining approval of the final selection, and negotiating and finalizing the PM/CM contract.)

Establishing Sustainability Goals

Establishing Criteria for Sustainability Professionals

Selecting Sustainability Professionals (including the selection and contracting process)

Selecting the Design Professional (including the selection and contracting process)

Selecting Other Consultants (including the selection and contracting process)

Selecting the Inspection Firm or Agency

Completing the Needs Assessment

Site Analysis and Selection

Starting the Environmental Impact Evaluation Process

Preparing the Soils Report

Finalizing the Budget

Identifying Funding

Obtaining Funding

Program Development

Preparing Sustainability Program Approach and Preliminary Scorecard

Defining the Contracting Strategy

Preparing and Publishing the Design Procedures Manual Design Phase

Completing the Schematic Design (SD)

Performing the SD Review

Preparing and Reviewing the SD Estimate

SD Value Engineering

Preparing Trade-Off Studies for Sustainability Program

Reviewing and Updating the Sustainability Scorecard

Selecting the Commissioning Agent

Completion of Design Development (DD)

DD Review

Preparing and Reviewing the DD Estimate

DD Value Engineering

Performing the Sustainability Review

Reviewing and Updating the Sustainability Scorecard

Regulatory Agency Reviews

Funding Authorizations

Reviewing the Funding and Agency Requirements for Sustainability Achievement

Constructability Review

Claims Avoidance Review

Development of General and Supplemental Conditions

Development of Technical Specifications

Completion of Construction Documentation (CD)

CD Review


Preparation and Review of the CD Estimate

Development of Bid Package Work Scopes

Development of Pre-Bid Construction Schedule

Development of Potential Bidder’s Interest

Obtaining Permits and Regulatory Approvals

Submittal of Final CD for Bid Procurement Phase

Advertising and Marketing

Document Reproduction

Bidding Period

Issuance of Addenda

Pre-Bid Meeting

Confirming Sustainability Objectives and Requirements for Constructor

Bid Opening

Bid Evaluation

Contract Award and issuance of the Notice to Proceed

Preparation and Publication of the Construction Procedures Manual Construction Phase

Pre-Construction Meeting

Sustainability Pre-Construction Meeting

Submittal Review and Approval

Major Materials Procurement

Construction (including the definition of critical phases or major milestones)

Utility Relocations and Hookups

Delivery of Owner-Furnished Equipment

Critical Inspections

Commissioning Facility

Move In

Final Completion

Obtaining Permits and Other Required Approvals to Occupy Post-Construction Phase

Obtaining O & M Manuals, As-Built Drawings, and other Information

Training of Operations and Maintenance Personnel

Construction Contract Closeout

Consultants’ Contract Closeouts

Submitting Sustainability Application and Final Report

Final Project Review/Report

Obtaining Sustainable Project Certification Notification

Final Project Review/Report

Post-occupancy Review


This list of activities should be expanded or repeated for projects with multiple construction bid packages or construction programs consisting of multiple projects or phases. Realistic timeframes for activities included in the Master Schedule must be assigned for each activity. These timeframes and durations should be based on input from team members, when available, and consistent with the established goals for the project. Responsibility for the completion of the activities must be identified in the schedule. The Master Schedule becomes an integral part of the construction management plan. The original established Master Schedule can be called the “Baseline” Master Schedule against which all updates to the Master Schedule will be measured.

Master Schedule Update

It is typically the responsibility of the CM to monitor the progress of all scheduled activities in the Master Schedule. To perform this duty, the CM must be cognizant of the status of every activity, responsible parties, and potential impacts to performance. The Master Schedule must be updated each month, or at shorter, regular intervals, when appropriate for short-duration, fast-paced, complex, or large projects. Updating is a simple process where every activity is reviewed in relation to the Baseline Master Schedule and previous Master Schedule updates. The review begins with determining the activities that have started, the activities that have completed, and for those activities that have started but are not yet complete, the status of completion (usually expressed in terms of a remaining duration or percentage of completion). Once this information is determined, the actual progress of all activities is compared to the planned completion dates for the project, key milestones, and various activities within the original plan, as defined in the Baseline Master Schedule and previously accepted Master Schedule updates. This comparison allows the reviewer to determine if actual progress is on schedule, behind schedule, or ahead of schedule. If progress is lagging, the CM must determine the cause of the delay and take immediate action. Such action may include notification of the Owner, notification of the team member responsible for the delay, a request for recovery plan from the responsible party, suggestions for recovery, or revisions to the accepted plan such as re-sequencing of the remaining work activities or reducing the duration of future activities. Recovery options must be identified and thoroughly explored. Potential impacts of the recovery plan on cost or quality must be evaluated. Recommendations must be made to the Owner related to recovering the delays or accepting the delay and the resultant impact. If the project is determined to be on or ahead of schedule, no action is usually necessary. However, it may be beneficial to consider revising the Master Schedule to capture time saved when a project is significantly ahead of schedule. The decision to revise the Mater Schedule should be made only with the Owner’s concurrence, and may require the concurrence of other project parties, as well. Regardless of whether or not the project is on schedule, the CM and other members of the project team should always be mindful that timely decisions and resolution of issues are critical to keeping the project on schedule. An important aspect of the Pre-Design Phase involves making critical decisions related to project scope that have a great influence on the remainder of the project. The CM must facilitate this process through the establishment of clear communications and procedures.

Design Phase Milestone Schedule

The purpose of a Design Phase Milestone Schedule is to highlight the key events in a project, as an executive-level summary. Since the Master Schedule consists of detailed activities, especially related


to the Pre-Design Phase, the Milestone Schedule helps the project team to be cognizant of the “big picture” by identifying key milestone activities and critical dates for their completion. For example, a Milestone Schedule may include major activities such as Design Professional Selection, Funding Approval, and completion of various design stages, key regulatory approvals, and relevant Construction Phase milestones. The Design Phase Milestone Schedule acts as a “pull out” or “roll up” from the Master Schedule and is to be used to judge progress during the Design Phase. By establishing the Milestone Schedule and monitoring it with each update of the Master Schedule, the CM can keep the project team abreast of critical time elements and their status throughout the course of the project. In essence, the primary function of the Milestone Schedule is as an enhanced communication tool.


Chapter 3: Design Phase

Introduction

During the Design Phase, the goals established in the Pre-Design phase are transformed into a set of documents that will enable the Contractor to make the project a three-dimensional reality. The procedures that follow relate to the CM’s time management responsibilities during the Design Phase. Note that time management and cost management are sometimes combined through earned value reporting. Effective earned value analysis requires that the schedule be cost and resource loaded. The guidelines outlined in this section will discuss the use of resource-loaded schedules, but the CM should also consult the “Cost Management” section of the Standards of Practice for additional information regarding cost loading and earned value reporting.

Role of the CM

The role of the CM during the design process is discussed in Chapter 2 of the Standards of Practice. The major tasks that relate to Time Management are as follows:

Maintaining the Master Schedule and preparing regular, timely, and appropriate schedule reports

Maintaining the Design Phase Milestone Schedule

Development and monitoring of the Design Schedule

Managing the Design Phase activities to achieve established Design Phase milestones

Developing the Pre-Bid Construction Schedule

Development of contract language related to time management, including development of general and special provisions for time management to reflect specific project requirements

The actual duties of the CM during the Design Phase are defined by its Owner and described in the CM’s contract. Generally, the CM will either be in a lead role (directly assisting in selection of the Design Professional and managing the design process) or support role (providing specific support to the Owner’s project management team).

Design Schedule

As early as possible in the Design Phase, the CM should begin the process of developing the Design Schedule. The CM should ascertain the scheduling capability of the Design Professional before finalizing the requirements for the Design Schedule. It is possible that the CM may have to produce the schedule, with details of the work provided by the Design Professional. The time frame allotted in the Master Schedule must be the starting point for the overall duration of the design work. Key milestone dates or durations contained in the Master Schedule should also be made a part of the Design Schedule. The type of Design Schedule is dependent on the requirements of the Owner, the size and complexity of the design effort, the sophistication of the project team, and specific project needs. For smaller or less complex projects, it might be possible to expand the design portion of the Master Schedule to provide sufficient detail for monitoring progress. Larger or more complex projects or projects with accelerated schedules will generally require the use of a separate Design Schedule that can then be “rolled up” into the Master Schedule.


A Design Schedule with minimum detail includes activities for the Design Phase (schematic, design development, and construction documents, including required interim submittals and reviews) by discipline (civil, structural, architectural, electrical, mechanical, cost estimating, etc.). It should show the interrelationship between the disciplines, durations of activities, and resultant milestone dates. If a project requires less detail than this, the Master Schedule (with a little expansion, if necessary) may suffice for the management of the Design Phase. A prudent CM will require that the Design Professional develop and use a Design Schedule, at least up to the level identified here, to facilitate the Design Professional’s planning and execution of its work, including the management of sub-consultants. Advance consideration shall be given by the CM to the number of activities required and the maximum duration of individual activities so that the completed Design Schedule is meaningful and can be monitored effectively during the Design Phase. Some projects warrant a very detailed Design Schedule that is resource loaded. Some project teams may also monitor and manage the design process by evaluating “earned value.” Such an effort is accomplished in part by updating the detailed, resource-loaded, Design Schedule and using this information in conjunction with cost information to prepare earned value analyses and reports. An earned value analysis compares the actual value of the work performed (the earned value) with the actual consumption of resources. In some cases, the earned value analysis is used as the basis for payment of the Design Professional. In such situations, the Design Schedule will include the tasks and sub-tasks that lead to each deliverable required by the Design Professional’s contracted scope of work. The interrelationships of the tasks, subtasks, and design process deliverables should be indicated in the schedule. The resources identified for each activity may be limited to the total cost of each activity or may be much more detailed, including specific design resources such as the senior architects, draftspersons, CAD operators, structural engineers, etc., required to perform the activity. By using such a schedule, project teams and Design Professionals can monitor resource utilization, and balance workloads and level resources to maximize efficiency within the established time constraints. As outlined here, the range of detail and extent of use of Design Schedules can vary greatly. The chosen schedule format should be matched with the project needs, with the simplest and least costly approach that fulfills the needs of the project being preferred.

Design Schedule Review and Acceptance

The review and approval process discussed in this section applies in varying degrees to all the schedules discussed in these Time Management Guidelines. The essential objective of the review and acceptance process is to obtain the project team’s endorsement of the time management plan for the project. The culmination of this process is the Owner’s acceptance of schedules proposed by other project team members. With regard to the Design Schedule, if the Design Professional is preparing the proposed Design Schedule, then the first step in the review and acceptance process is for the Design Professional to submit the Design Schedule to the CM for review. The CM has several objectives when conducting its review of the Design Professional’s proposed schedule (or any other schedule submitted by other project team members to the CM for review):

The CM checks to ensure that the schedule as submitted complies with the requirements of the applicable contract. With regard to the review of the Design Professional’s schedule, the


CM is reviewing the schedule to ensure that it complies with the Design Professional’s contract. In general, this will mean that the CM checks to ensure that the submitted schedule shows completion of the Design Professional’s work by the contracted dates. If the work is to be performed in phases, the CM will verify that the work is properly phased in the schedule as required by the contract.

The CM checks to ensure that the schedule as submitted is prepared to relevant industry standards and as required by the contract. This typically means that the CM verifies that the schedule contains all the work associated with the performance of the Design Professional’s contract, including the work of other parties such as the Owner, other Design Professionals, and third parties whose efforts are essential to the completion of the Design Professional’s scope of work. This last category may include permitting agencies, the public, other political jurisdictions, and other parties with a voice in the project’s ultimate design. This step also includes checking to ensure that the basic logic of the schedule and activity durations are correct.

The CM checks to ensure that the scheduler has not overused or improperly used constraints, lags, calendars, and other features of modern scheduling software.

The CM checks to ensure the basic soundness of the schedule. If it is the “Baseline” schedule, this means that the CM checks to ensure that the schedule doesn’t include any actual start or actual finish dates, and shows no progress. The “data date” of the schedule must coincide with the start of the contract time for the Design Professional. The schedule is also checked to ensure, typically, that there are only two “open ends,” the first and last activities in the schedule.

The CM checks to ensure that the activities, logic, and durations related to the CM’s and the Owner’s scope of work depicted in the schedule are as provided in the contract and are reasonable.

A more thorough discussion of schedule reviews is provided in Chapter 5, Construction Phase. Once the CM is satisfied that the schedule is in compliance with the contract and applicable standards, the CM typically forwards the schedule to the Owner with a recommendation that the schedule be accepted. Once the Owner’s acceptance is obtained, the CM can inform the Design Consultant of the acceptance of the schedule. The accepted schedule becomes the baseline against which future progress is measured, at least until the next schedule update or revision is approved. If the CM is not satisfied with the schedule submittal, then the CM should notify the party preparing the schedule that the schedule is not acceptable and describe the deficiencies noted. The CM should notify the Owner of the status of the schedule review process and document the deficiencies noted in the schedule submittal. The schedule submittal and review process should continue until an acceptable schedule is submitted.

Monitoring and Updating the Design Schedule

During the Design Phase, the CM should hold regular meetings with the Design Professional. These meetings should be held on a monthly basis or shorter intervals, if necessary, for complex or accelerated projects, to discuss the progress of the Design Phase activities. At this meeting, or immediately before, the Design Schedule should be updated and Master Schedule milestone dates reviewed. The Design Professional should be prepared to discuss work planned for the next period and any remedial strategies necessary to regain schedule slippage, if any has occurred. It may be useful for these meetings to be held in the Design Professional’s office, as it affords the CM and


Owner a chance to view the progress of the design first hand. The updated Design Schedule is used to update the Master Schedule. The CM must be proactive in avoiding delays and causing timely actions to be taken in case of delays. Such actions should be consistent with suggested actions as described under the section titled, Master Schedule Update. If schedules are resource-loaded and actual resource consumption is tracked for various activities, an earned value analysis can be performed as discussed in the previous section. If actual resource consumption is greater than earned value, corrective action may be necessary. The review and acceptance procedures discussed for the Design Schedule in the Design Schedule Review and Acceptance section are generally applicable to updates or revisions to the Design Schedule. The only additional responsibilities of the CM will be to verify the accuracy of the actual performance information (as-built data) provided in the update, and to check to ensure that the schedule complies with the team’s current plan for completion of the Design Phase. Also, if the Design Schedule update shows a delay to the project, the CM will need to act in order to verify that the project is in fact behind schedule, to identify the source and magnitude of the delay, to determine the party responsible for the delay, and take appropriate action to mitigate the delay. If the delay cannot be mitigated, then the CM will advise the Owner as to how to proceed – making recommendations, for example, to extend the contract dates, hold the Design Professional accountable, accelerate the remaining work, shift work to a later phase, or reduce the scope of the project.

Pre-Bid Construction Schedule

The Pre-Bid Construction Schedule is a detailed construction schedule developed by the CM that is used to determine or validate the construction durations to be included in the Contractor’s contract documents. It also identifies key milestones that must be included in the applicable contract documents to reflect specific project needs, and is a valuable resource when reviewing the Contractor’s construction schedule. The Pre-Bid Construction Schedule should be assembled when the design has progressed to the point that all project elements have been defined (usually at the completion of the Design Development stage). During the development of the Pre-Bid Construction Schedule, the interfaces with existing facilities or operations should be explored and worked out. This includes consideration of adjacent projects and contracts. This is also the time to finalize the interrelationships between the many elements of the project, including project phasing. Minimum operating needs for existing facilities or adjacent contracts affected by the new work must be studied and any constraints identified must be included in the schedule. The Pre-Bid Schedule should be assembled in sufficient detail to allow resource loading of the schedule. Construction cost estimates can be useful sources to identify the resources needed to complete construction activities. The Pre-Bid Schedule should also reflect the time necessary to have materials and equipment delivered to the job site and should incorporate expected lost time due to normal inclement weather. The Pre-Bid Schedule should be checked when the design is complete to determine, for example, if any changes in the type or quantity of material or equipment were made subsequent to the Pre-Bid Schedule’s development or special phasing or resource requirements added. The Pre-Bid Construction Schedule should be prepared prior to transmitting construction documents to the bidders for the project, and should be made available to the bidders during the Procurement Phase.


Developing Schedule-Related Contract Provisions and Specifications

Scheduling and other time management contract provisions should be contained in the general conditions and other front-end specifications of the contract documents for every project. The CM should recommend appropriate additions to those contracts that do not contain these provisions. For those contracts that already have scheduling and other time management clauses, these provisions should be reviewed by the CM to determine if they adequately address the form of the project schedule, the level of detail required, the contract duration, allowable methods for modification of the schedule, the documentation necessary to request a time extension, the acceptability of early-completion schedules, and the ownership of float. The CM should then make recommendations to the Owner regarding revisions or additions to the contract’s time management specifications based on the results of the CM’s review. The CM should also be the party that determines and recommends to the Owner the contract provisions that stipulate the project completion date and other contractual milestone dates, phasing, constraints on access, and the availability dates of Owner-furnished services or equipment. The scheduling provisions in the specification must discuss preparation and acceptance of the Contractor’s detailed schedule and how and who will update or revise the schedule. It should also address the acceptance process for schedule submittals. If the schedule is to be resource-loaded or cost-loaded or progress payments made based on the schedule update, the scheduling provisions must agree with the payment provisions of the contract. In general, the CM should review the following topics and determine if the scheduling and other time management provisions properly address them or if changes are necessary to the contract documents to appropriately reflect the time management standards and procedures to be implemented on the project:

Responsibility – The party responsible for the development, updating, and revising the construction schedule must be identified. Generally, this responsibility should belong to the Contractor. Timeframes – Timeframes for the submittal, review, re-submittal (if necessary), and acceptance of the Initial or Preliminary Schedule, Baseline Schedule, schedule updates, and schedule revisions must be specified. Generally, an accepted Baseline Schedule should be in place on a project within 30 to 60 days of the receipt of the Notice to Proceed. These timeframes may vary somewhat depending on project length and complexity, but it is essential that a viable schedule be in place as quickly as possible and that the maintenance of this schedule be performed expeditiously. An alternative approach is for the Contractor to submit its schedule with its bid or before the Pre-Construction Meeting. This alternative approach may limit the input of subcontractors or vendors not yet selected, but it does mean that the project will have an otherwise complete schedule in place from the inception of the work. Schedule Format and Submission Requirements – The precedence format is recommended. Acceptable software and the required plots and reports for submittals must be identified. The CM should insist on receiving electronic submissions of all schedules in addition to paper submissions. For projects using enterprise-level software, or server-based or web-based systems, submittal, access, security, and archiving protocols must be established.


Schedule Acceptance – The Owner’s right to review the schedule and the procedures and protocols to be followed related to the review and acceptance process must be defined in the contract documents. Remedy for Non-Compliance – The consequences for failure to submit satisfactory schedules, schedule updates, and revised schedules needs to be addressed in the contract documents. This is particularly true when the commonly used approach of withholding all or part of the Contractor’s payment is used as the tool to enforce compliance with the scheduling requirements. This approach must also be coordinated with the payments section of the contract. Initial or Preliminary Schedule – A schedule detailing the project plan for the first 60 to 120 days of work may be required to cover the earliest work activities on the project while the Baseline Schedule is being developed. Workday Versus Calendar Day – The contract and the scheduling specifications need to be consistent as to the definition of a “day.” There are differing opinions as to the advantages and disadvantages of workday contracts versus calendar-day contracts. The project team needs to determine what is appropriate based on the Owner’s standard practice and the project’s needs. Level of Detail – Detail is typically specified for schedules two ways. The first way is to indicate what work must be included in the schedule. Typically, all work associated with executing the project should be included in the schedule. This includes activities related to the procurement process such as submittal preparation, submittal review, and fabrication and delivery. It also includes work to be performed by parties other than the Contractor. For example, the Design Professional may be responsible for reviewing submittals and recommending them for acceptance; an activity representing these responsibilities for each significant submittal needs to be included in the project schedule. The second technique used to specify detail is to limit the maximum activity duration. Generally, the limit is two to three weeks, with exceptions often allowed by request for procurement and similar longer-duration activities. If the concern is that the schedule will be overly detailed, it is also possible to limit detail by limiting the percentage of short-duration (1- or 2-day) activities. A maximum or minimum number of activities can also be specified, though this approach is less common. Commissioning and Startup – For many projects, particularly process-related industrial and municipal plants, commissioning, testing, and startup activities can be very time consuming and, thus, important to include in the schedule. Cost and Resource Loading – Cost and resource loading is recommended. Cost-loaded schedules can be used as a means of making progress payments. This must be coordinated with the payment provisions of the contract documents. Resource loading (typically with labor and equipment) can be useful, but the effort required to add resources to a schedule often limits the full use of this feature to larger or more complex projects. The value of resource loading is greatest for resources that will be limited on the project. Cranes are a commonly used example of a limiting resource. The value of resource loading is further enhanced when schedules can be combined and resources managed at the enterprise level. Though perhaps not a justification for resource leveling alone, knowing what resources a Contractor intends to mobilize to the project in order to achieve the scheduled productivity significantly enhances the CM’s ability to monitor the progress of construction and analyze the sources of delays. In this respect, a resource-loaded schedule is substantially more useful than a cost-loaded schedule.


Weather – Generally, “normal weather” should be included or factored into contract durations and the setting of contract milestones. It should also be included or factored into the project schedules. “Normal weather” should be defined. This can be done by referencing reliable sources of weather data, such as data compiled by and available from the National Oceanic and Atmospheric Administration (NOAA) and then determining how this “normal” weather might affect the project. Note that NOAA data will not establish alone the number of days that might be lost to “normal” weather. For this reason, it is often useful to include in the contract a table listing the number of days that are expected to be lost to “normal” weather each month. Using this table in conjunction with a well-written time extension provision and careful tracking of the effect of weather on daily project operations, should allow project participants to avoid disputes associated with determining the “normal” impact of weather on a project. Ownership of Float – Ownership of float should be defined in the contract. Generally, float belongs to the project and not solely to the Contractor, the Owner, or any other entity involved with the project. Early Completion Schedules – The contract should address the acceptability of early completion schedules. These are schedules that show scheduled project completion dates earlier than the contract completion dates. The options available to the CM include recommending that early completion schedules be rejected because they show early completion; recommending that such schedules be accepted; recommending that such schedules be accepted but that the time between the scheduled early completion date and the contract date be defined as float; or recommending that the contract stipulate that the contract completion date be revised to match the scheduled early completion date. This last alternative would mean that liquidated damage assessments, if any, would be made from the revised earlier completion date, not the original contract date. Owner Responsibilities – The contract should address the time to be allocated for submittal reviews by others (usually Design Professionals) and other significant Owner responsibilities, such as granting the Contractor site access, making key work areas available, and delivery of Owner-furnished materials and equipment. Schedule Updates – The frequency (usually monthly) of schedule updates and the allowable timeframe between the data date of the update and the submittal date should be defined in the contract documents. If the schedule is to be cost loaded or made the basis for progress payments, this must also be established and appropriate procedures and protocols defined in the contract. The contract should also clearly distinguish between updates (defined as the posting of progress information – actual start and finish dates, percentage of completion, and remaining duration) and logic revisions (significant changes in sequence or to durations). The contract should clearly address what should and should not be included in an update. Complex schedules often contain imperfections and minor changes are frequently required to keep these schedules accurate and useful. The CM may recommend that such minor changes be allowed as part of the updating process. The contract should state whether delay-related activities can be included in an update and, if so, the process by which such activities are to be incorporated. Significant (meaning “not minor,” as discussed above) logic or duration revisions should be subject to CM and Owner review and acceptance. Narrative Reports – A narrative report should be submitted with each schedule update. Specific elements required in the narrative report include an executive summary, areas of progress, delays or potential delays, time extension requests, logic and duration changes, recovery plans, and an overall assessment of schedule achievement. A narrative report assists the project team in thinking through


project progress during the previous update period, the affect of major events during the period, the causes of delays, if any, and actions that may be necessary in the future as a result of the project events. A good narrative translates the schedule update into language that can be understood by those who may not have the expertise or time to understand the intricacies of the project schedule. The narrative also helps the CM understand the Contractor's means and methods so as to ensure that the schedule logic and sequencing reflect the Contractor's intent. Often, the Contractor does not provide the logic and sequencing in the schedule necessary for the CM and the Owner to fully comprehend the Contractor’s approach to constructing the project. The narrative provides crucial insight into the Contractor's intentions, enhances the communication value of the schedule, and minimizes scheduling issues. Basis for Determining Time Extension – The procedure for requesting time extensions, associated notice requirements, required information, and the method to be used to evaluate delays and time extensions should be defined by the contract. In addition, the CM should recommend that the contract require the Contractor to provide a “fragnet,” “network window,” or “sub-network” (depending on the terminology commonly used in the Owner’s or CM’s industry or region) for each delay the Contractor anticipates going forward, at a minimum. Some Owners may want these for every delay, not just anticipated delays. Fragnets, network windows, and sub-networks are essentially mini schedules that show the activities related to the delay, their duration, their relationship to other activities, and the relationships of these activities to each other and to the larger construction schedule. The contract should clearly indicate that time extensions will only be provided for delays to the critical path(s) of work. Also, the contract-specified time extension procedures should be consistent with the float ownership and early completion provisions as discussed above. Delay Excusability and Compensability – An excusable delay is a delay for which a Contractor would be entitled to a time extension. A non-excusable delay is a delay for which no time extension would be due. The contract should define excusable and non-excusable delays. Generally, a non-excusable delay is a delay for which the Contractor is responsible. Equipment breakdowns, remedial work, and similar circumstances for which the Contractor typically bears responsibility are non-excusable. Excusable delays are typically defined as delays for which the Contractor is not responsible, that were not caused by the Contractor, and that could not have been reasonably foreseen by the Contractor. Industry-wide strikes are a common example of an excusable delay. Weather delays might be either non-excusable or excusable. The Contractor is typically expected to anticipate or foresee a “normal” amount of inclement weather. However, typically, the Contractor is not expected to foresee unusually severe weather and, thus, is often entitled to a time extension for such conditions. The contract should also define compensable and non-compensable delays. A non-compensable delay is a delay for which the Contractor is not entitled to additional compensation for delay. Typically, these would be delays which are neither the Owner’s, nor the Contractor’s fault and responsibility, and could not reasonably have been anticipated by either party. Strikes and weather are both examples of non-compensable delays. Obviously, all non-excusable delays are also non-compensable. A compensable delay is a delay for which the Contractor is entitled to additional compensation. Typically, these are delays that are the Owner’s fault and responsibility. Delays due to the Owner’s failure to provide access or procure right-of-way, or the delays due to an Owner-initiated change would be compensable. Concurrency – The determination and handling of concurrent delays (concurrent excusable and non-excusable delays or concurrent compensable and non-compensable delays) can be a matter of some debate. For this reason, it is important that the contract address the disposition of concurrent delays.


No Damage for Delay Clauses – Applicable law and legal precedent should be considered before a “no damage for delay” clause is inserted into a construction contract. For example, some state procurement laws render such clauses unenforceable in public contracts. Even if legal, the difficulties associated with enforcement may advise against the inclusion of these clauses in the contract. Ultimately, the Owner must decide as to the advisability of using “no damage for delay” clauses. Liquidated Damages – Liquidated damage provisions allow the Owner to specify the amount the Contractor must pay in the event the Contractor delays the project and these delays are not excusable. Liquidated damages may not be a penalty and, typically, should be based on a reasonable estimate of the Owner’s damages associated with a Contractor’s delay. There is a saying in the construction industry that liquidated damages can be thought of as the Owner’s sword and the Contractor’s shield. As a sword, they can be used by the Owner to prod a Contractor towards timely execution of the project. As a shield, they often represent the maximum delay damages for which the Contractor would be responsible to the Owner in the event of a non-excusable delay. Liquidated damages can be applied to interim project milestones. They may include indirect costs. For example, road user costs can be factored into amounts that a state department of transportation may recover from a Contractor for non-excusable delay. Revised Schedules and Recovery Plans – The contract should make clear the circumstances under which a Contractor must submit a revised schedule or, when the project has fallen behind, a recovery plan. Typically, this is accomplished by provisions that define the degree to which the Contractor’s actual construction approach can deviate from the plan as depicted in the schedule. Frequently, this is accomplished by specifying the number of days the Contractor can fall behind. Often, these provisions give the Owner the right to demand a revised schedule showing timely completion. These provisions also often give the Owner the right to withhold all or part of the progress payments that would be otherwise due until an acceptable revised schedule showing a recovery plan is submitted. Subcontractor Participation – Some project teams find it beneficial to require subcontractors to sign off on the project schedule indicating their commitment to executing the project in accordance with the accepted plan. Though a different situation when a project is being constructed by multiple Prime Contractors, it is essential that all Prime Contractors review and accept the project schedule. Short Interval Schedule – If a short-interval schedule (SIS) is to be required, this requirement should be reflected in the contract. A SIS is a 2- to 3-week detailed look ahead at the Contractor’s work plan. Generally, it is in greater detail than a construction schedule but correlates with construction schedule durations for performance. Generally, the CM should advocate scheduling and time-related specifications written in a manner that is fair and equitable to all parties. Unreasonable shifting of risks should be avoided. Ultimately, of course, it is the Owner that decides what goes into the contract documents and what does not.



Chapter 4: Procurement Phase

Introduction

The Procurement Phase spans the time from the completion of the design to the start of construction. Typically, it includes bid advertising, questions and answers, the Pre-Bid Meeting, bidding, addenda issuance, bid review, and contract award on competitively bid projects. The main time management objective of the CM during the Procurement Phase is to verify that there is a set of project-specific guidelines or specifications clearly delineating the time-related responsibilities of the project's participants, both to the project and to each other. These specifications are developed during the Design Phase. If the CM comes on board during the Procurement Phase, the CM should immediately review the contract documents with an eye to time management, schedule requirements, and the evaluation of time extensions. If the CM finds the contract documents lacking in this area, the CM should promptly recommend additions and modifications to the documents through the addendum process to address these shortcomings. The CM may also be tasked with ensuring that the time management plan, as depicted in the contract documents, is clearly understood by the bidders. The CM may use the Pre-Bid Meeting as a forum to help the contracting community understand the time management aspects of the bid package. When the CM has management responsibilities during the Procurement Phase, the CM must also manage and expedite project activities such as issuance of contract documents and bid packages, issuance of addenda, and the contract award process. If the CM’s role is more limited, the CM may still be required to provide analysis and recommendations to enhance the Owner’s ability to successfully complete this phase of the project. In either case, the CM will be using the Master Schedule, the Milestone Schedule, and the Design Schedule to plan and monitor the progress of the project during the Procurement Phase.

Role of the CM

During the Procurement Phase, the CM ensures that project scheduling and other time-related specifications are appropriate for the project and consistent with the size and complexity of the work. The CM may also be tasked with providing understanding and some level of comfort to the Owner and the Contractors related to the time management aspects of the project plan. The necessity for clear, concise, unambiguous scheduling specifications cannot be over emphasized. The CM may be charged with the additional responsibilities during the Procurement Phase such as integrating and distributing contract drawings, project specifications, and addenda. The CM may also be tasked with scheduling and managing the necessary Pre-Bid Meetings with Contractors, and scheduling and conducting project site visits and walk-throughs. The CM may also be tasked with handling all things related to scheduling. This may include updating the project’s Master and Milestone Schedules; developing a schedule for the Procurement Phase or, at least, the bidding process; developing a Pre-Bid construction schedule; and educating potential bidders regarding the project’s scheduling requirements. The CM may also be required to continue to coordinate, update, and revise the Master and Milestone Schedules with outside governmental and regulatory agencies and other third parties to ensure that the milestones continue to adequately reflect external restrictions or requirements.


Depending on the nature of the procurement, during the Pre-Bid period, it may be useful for the CM to have a dialogue with potential bidders, seeking their commitment, input, and responses to the time management and scheduling requirements consistent with the Owner’s goals and objectives and, of course, the Owner’s procurement requirements. Though most likely not possible as part of public bidding processes, through discussions with prospective bidders, the CM may be able to identify and relay to the Owner opportunities to takes advantage of the labor and material markets to the Owner's advantage. Conversely, if the Owner has very tight restrictions, the CM may be able to convey the importance of the schedule to the prospective Contractors so that they can adequately plan and staff their work to enhance the chances of timely and successful completion of the project. Commitment to making the schedule work is the responsibility of all project participants; however, the Contractor has the most influence on the viability of the construction schedule as it controls the bulk of the resources to be mobilized to execute the project, either directly or through subcontractors and vendors. Thus, the ability of the CM to develop an agreement or understanding between all potential Construction Phase team members during the Pre-Bid period regarding the important or potentially limiting factors affecting the time elements and scheduling elements of the project enhances the chances of a timely and successful conclusion to the project. This is particularly true in a multi-prime environment. One of the tools available to the CM is to emphasize bonuses for early completion and the liquidated damages associated with late completion. The significance of these numbers helps Contractors focus on the time aspects of the project and plan accordingly with regard to their resource plan. It is also at this point that the CM may come to understand that the contracting community is viewing the combination of the contract completion date and substantial liquidated damages as placing undue risk on the Contractors, driving up bid prices as Contractors attempt to price in their perceived risk. By timely relaying these concerns to the Owner, addenda can be used to make appropriate adjustments and avoiding the re-biding of projects when bids come in over budget. The timely issue of addenda is also important. Addenda issued too close to the bid date may necessitate postponement of the bid date. The CM may be the party charged with ensuring the Procurement Phase is completed timely. As a consequence, the CM should be eager to make sure that bidder’s questions or other issues are brought to the Owner’s attention as early and resolved as quickly as possible. This, combined with understanding the process and expediting the Owner’s or Design Professional’s evaluation of the issue and preparation of the addendum, will help to minimize the need to delay the bid opening. Projects with sustainability goals and requirements may generate more bid questions and answers, which may lead to more extensive and additional addenda. This and the design and CM team's experience and expertise in bid issues related to sustainable project goals and requirements should be considered when setting bid durations and evaluation periods leading up to award. Once the bids are received, the CM may be asked to assist the Owner in expediting the award process. This includes working with the Contractor in its submission of bond and insurance information and working with the Owner to expedite review, contract award, and issuance of the notice to proceed. The evaluation of bids for responsiveness and responsibility is crucial, especially with standard Design/Bid/Build projects where Owners may be using a low-bid, fixed-price procurement model. In such circumstances, the CM may be able to quickly develop bidder evaluations that allow the Owner to evaluate both the responsiveness of the bid and, more importantly, the bidder’s ability to perform the work (the bidder’s responsibility). In the best case,


the CM’s analysis may prevent the Owner from entering into a contract with a Contractor that does not possess resources to complete the project within the contract and schedule constraints. Hopefully, the Master and Milestone Schedules and the CM’s schedule for the Procurement Phase give the CM and the rest of the project team sufficient time to properly evaluate the bids, contact the references, and analyze the company credentials without delaying the award of the contract and, ultimately, notice to proceed.



Chapter 5: Construction Phase

Introduction

All the planning during the preconstruction phases is put into effect during the Construction Phase. A well-developed project Master Schedule and properly defined construction duration(s) set the stage for the successful management of the time element during this phase.

Role of the CM

Delivering the project on time goes well beyond making sure that the Construction Schedule is prepared and updated properly. The CM continues to play a major role as problem solver, troubleshooter, expeditor, facilitator, and anticipator to keep the project moving and on track. The CM has the primary responsibility of reviewing the Contractor’s schedules and updates, determining the schedule status, analyzing the cause of delays, reviewing Contractor’s time extension requests, and working with the Contractor to identify recovery plans, in the case of delays. In addition to the direct time and schedule management responsibilities, the CM manages the time component of the project by expediting Requests for Information and submittals, working to avoid unnecessary change orders for time extensions, resolving time extension requests in a timely manner, and resolving all issues expeditiously so that the Contractor’s work is not interrupted or held up. The CM has the responsibility to note deviations from the planned schedule, such as staffing, productivity, equipment order dates, equipment delivery dates, submittal dates, submittal review periods, submittal approvals, schedule deviations, etc. These observations must be logged, along with observations in order to document actual Contractor progress and the reasons and bases for deviations from the accepted plan. This process is not one-sided, in that delays that are not under control of the Contractor will also be fairly documented (such as plan and specification discrepancies, submittal review delays, utility or governmental delays, contract changes, etc.). It is the CM’s responsibility to objectively address all issues and proactively act to review, analyze, discuss, and resolve through negotiation all outstanding issues on the project as quickly as possible. It should be the CM’s recommendation that delays and time extension requests be evaluated quickly and objectively and that time extensions be granted when they are due (or, alternatively, the decision to accelerate be made quickly and early so as to mitigate the associated costs).

Role of the Construction Schedule

The Construction Schedule is an important tool in time management, but it is only a tool. The development of the schedule and regular updates do not guarantee that a project will be completed on time. However, the project team, working together and using the schedule prudently and appropriately, can significantly enhance the chances of timely completion of construction. In addition, if the schedule is the focus of progress meetings, it increases the chances of the project team entering into a constant process of reviewing the progress and impediments to timely completion, as well as opening discussions into important issues such as change management and delay mitigation.


In using the schedule, the project team must always be aware of the big picture and should not get bogged down in the intricacies, details, and “nuts and bolts” of the schedule. It is the CM’s responsibility to create the proper atmosphere on the project site and enhance the use of the schedule as a viable tool. All team members in the construction process should be encouraged to pay attention to how their portion of accomplishing the work fits into this big picture, and use the schedule for planning and integrating their work with the work of others. The Construction Schedule is a valuable planning and monitoring tool throughout the project. It also has significant legal importance. It has been accepted by courts internationally as a tool to demonstrate time-related impacts and damages, so it is important that actual progress information captured in the schedule is accurate and forward-looking analyses to predict completion are thorough and timely.

Construction Schedule Development

The CM must encourage the design and development of a proper schedule at the outset of construction and enforce contract requirements. As discussed in the Procurement Phase section, the importance of the schedule must be discussed in the Pre-Bid Meeting. With construction contract award, the CM must take the earliest opportunity to meet with the Contractor to discuss the design and development of a schedule. Schedule design is an important early step in the creation of a full schedule, and provides the framework, structure, and direction for the schedule development. Some of the items to consider during schedule design are:

Purpose and use of the schedule

Organization of the schedule (includes Organizational Breakdown Structure, Work Breakdown Structure, and necessary Activity Codes to allow efficient filtering and organizing)

Required reports to be generated from the schedule

Level of detail

Weather planning methodology

Cost loading and reporting requirements

Resource loading and reporting requirements

Risk analysis

Change management process

Stakeholders in the project and the information needed for each

Scheduling software to be used The preconstruction meeting must include schedule design and development as agenda items. A separate schedule meeting focusing on the design of the schedule would be appropriate to discuss the format, specification requirements, Owner's use of the schedule, reporting needs, and other design topics. Such meetings can significantly enhance the quality and timeliness of completing the contract schedule. The impact of a sustainable project on the construction schedules is highly variable as a function of a project's overall approach to sustainability and the systems, equipment, and products specified. The CM should be aware that adaptive reuse of building and components, and reuse of existing materials may add a level of complexity to the construction. Likewise "sustainable" products or


products from a regional source may not be as readily available as traditional alternatives and thus may have a longer lead period for acquisition and installation. Other major activities that require detailed scheduling during the construction period are equipment start-up and Commissioning. While equipment start-up is technically part of Commissioning, it can often occur well before the project completion and must be coordinated with the design engineering and commissioning teams. Advanced Commissioning for LEED and other sustainability programs may also call for other interim inspections, and testing and documentation submittals that must be coordinated through the construction schedule. Commissioning periods should be ample to allow for a complete battery of testing, training, and documentation prior to occupancy. The program task of Commissioning should appear both on the Construction Schedule and the Master Schedules to remind all that it is an important and time sensitive part of the development process. Too often projects are scheduled for occupancy at the Substantial Completion milestone prior to the completion of Commissioning. Commissioning can serve all parties well and result in a much better product at occupancy. The CM must understand that it is the Contractor’s schedule and avoid influencing the direction of schedule development. However, the CM must offer appropriate assistance to the Contractor in finalizing the schedule. Some specifications require that all major subcontractors sign off on the schedule. Even if the schedule specifically does not require such sign offs, the CM must encourage the Contractor to solicit input from the major subcontractors and vendors and get their buy-in for the schedule, as well as Owner buy-in for their responsibilities.

Construction Schedule Review

One of the basic responsibilities of the CM is to review the Contractor’s schedule and make recommendations to the Owner regarding acceptance. In order to successfully review the schedule, the CM must be fully familiar with the project. Knowledge of both construction and scheduling methodology is necessary. The scheduling requirements of the contract document must be understood. The following questions should be considered regarding the major components of a schedule review:

Have the scheduling requirements of the specifications been met?

Are all the contract milestones, access restraints, and contract completion dates consistent with contract requirements? (Including permit expiration dates.)

Is there early completion of milestones or contract? If so, does the contract allow it? (Refer to Chapter 3 for options related to dealing with Contractor’s submittals of early completion schedules.)

Are all contract work items included in the schedule?

Does the schedule include sufficient detail to monitor complex components such as commissioning?

Is the level of detail consistent with contract and project requirements? (This should have been discussed with the Contractor to develop a common understanding in the early meetings.)

Does the overall sequencing and approach make sense?

Does the overall logic of the schedule make sense? Review logic based on physical constraints (such as foundation after excavation) and crew-based constraints (such as Area A after Area B).


Are the activity durations reasonable? On resource-loaded schedules, are they consistent with labor resources and cost?

Does the critical path make sense? Is the percentage of critical and near critical activities reasonable? (Generally, as a very rough rule-of-thumb, somewhere around 10% to 25% of activities should be critical or near critical in a reasonable non-linear project schedule. However, the specific project type, presence of multiple milestones, and aggressiveness of time requirements can cause a higher percentage of activities to be critical or near critical.)

Is float being sequestered? Sequestering of float is an approach where float on the schedule is reduced artificially through the arbitrary increase of activity durations and the introduction of unnecessary logic.

Are there missing predecessors and successors? Check for forced end dates that are not contractually required. Forced end dates and activities without successors will cause artificial critical paths and is another way of sequestering float.

"Constraints," as a defined scheduling event, should typically not be entered into a schedule until after it has been accepted by the Owner.

Is there sufficient time for submittals, review, and procurement? Is there adequate time for delivery of Owner-supplied materials and equipment? Check for reasonableness of other Owner responsibilities such as provision of utilities, tie-ins with other contracts, etc.

Check on the makeup of the calendars being used, and which crews use which calendars.

Are there activities for events performed by others, such as utilities or permit reviews?

Does the schedule address the normal weather in the area? (Refer to Chapter 3 for a discussion regarding “normal” weather.)

Is there sufficient time for punch list, clean up, start-up testing, and final inspection at the end of the schedule?

Is the cost loading (if required) reasonable? Does the cash flow make sense? Is the schedule front-end loaded?

Is the resource loading (if required) reasonable? Are the general crew sizes and resources adequate to complete the project?

Is productivity of the crews reasonable? Contract specifications should require that a 60- to 120-day Initial or Preliminary Schedule be submitted by the Contractor at the outset of the contract so that a monitoring tool exists while the Baseline Schedule is being finalized. The CM should rely on the Contractor at all times prior to the acceptance of the Construction Schedule to identify the critical elements of construction. It is also important that actual progress is documented during the schedule submittal and approval process so as to provide the necessary data to analyze any delays, time extension requests, or claims that arise during this period.

Construction Schedule Acceptance

When the CM forwards its review comments to the Contractor, the CM must keep in mind that it is the Contractor’s schedule. With the exception of non-compliance with the contract provisions and very obvious errors, the review comments should be worded such that they cannot be construed as “directives” to the Contractor regarding the means and methods of construction. In the case of Contractors that take unreasonable positions on reasonable review comments, it is important for the CM’s comments to be made in writing. Note that such comments can be useful should the Contractor make a request for time extensions.


In conducting its review, the CM’s role is not to “accept” the Contractor's means and methods; rather, the CM is attempting to understand a couple of key points:

The reasonableness of the plan; is it possible?

That the schedule really does reflect and communicate the Contractor's plan for construction. Too often the Contractor provides a schedule that is poorly developed in resource logic and fails to fully detail how it intends to build the project. For example, viewed only from the perspective of Early Start Dates, the schedule might appear to be very good, but as soon as progress slips or there is out-of-sequence work, the individual trade activities, which were sequential in the Baseline Schedule, Early Start Sort, start to stack up, requiring significant increases in resources to meet the plan. This is why it is important that the reviewer insist on and understand the written narrative that should accompany the schedule as part of the submittal package; many times the written narrative is the only place where the Contractor clearly explains its intentions and its means and methods. By comparing what the Contractor intended to what the Contractor’s logic actually shows, the CM can help to ensure that the project schedule presents a complete and workable plan for the project, without dictating the Contractor’s means and methods.

The specific project situation and the judgment of the project team will guide the acceptance of the Contractor’s schedule. Generally, it is recommended that the schedule acceptance period not be prolonged. In many cases, it may be better to accept a schedule with noted reservations, rather than continuing to reject the schedule, leaving the project without an agreed-upon tool for monitoring progress. Special care must be taken not to allow “scheduling trivia” to interfere with the acceptance of the Construction Schedule. On the other hand, construction schedules not in compliance with basic contract requirements must be rejected and contract terms enforced.

Construction Schedule Updates

A schedule update is the project team's primary tool for evaluating the status of construction related to contract time requirements. It is the result of a process of applying progress information in the form of actual start and finish dates, percentages of completion, or remaining durations to all activities that have progressed during the update period. The standard update period is one month, though more frequent updates may be required for projects that demand closer monitoring. Though this will be discussed in more detail later in this section, the update is not usually the best venue for making significant schedule changes. In addition to indicating the overall status of construction, a schedule update can assist the CM with:

Maintaining an ongoing, timely record of progress (resulting in an “as-built schedule” at construction completion)

Proactively managing the project by identifying potential delays or trends in the progress of the work, thereby providing for the possibility of mitigating delays before they significantly affect the project or jeopardize the project team’s ability to meet contract milestones

Determining the cause and duration of delays

Assessing status of the work as it relates to progress payments (if cost-loaded) A process should be established whereby the CM and the Contractor can review the update information jointly before the schedule is updated. This can limit misunderstandings or entry of


incorrect information. This process is especially important when the cost-loaded schedule update is also used for progress payment. In order to clearly understand the effect of the progress of work on the schedule, it is recommended that the update, as defined above, and schedule revisions be conducted as two separate processes. Schedule Revision – the process of revising the schedule activity durations or logical sequences to reflect changes to the original plan, as presented in the Baseline Schedule or subsequent, accepted schedule revisions. Consequently, combining the update and revisions in one operation can leave the project team without a clear understanding of the effect of the update versus the effect of revisions. For larger or more complex projects, the CM may choose to allow minor changes in logic and duration within updates in order to help maintain the most accurate schedule possible with the least effort. It is essential that the CM review the schedule updates and revisions presented by the Contractor, as outlined in the following sections. Of particular note or concern are revisions to schedule updates that are the Contractor’s attempt to document “delays.” While such revisions may be appropriate, they complicate the process of schedule review and acceptance. For this reason, it is best for the schedule revision process, particularly when the Contractor believes that it has encountered delays that necessitate revisions to the project schedule, to proceed quickly and objectively, but separately from the schedule updating process.

Construction Schedule Update Review

The primary focus of the CM when reviewing the schedule update is to determine construction status. The scheduled completion dates, including completion of interim milestone dates, must be reviewed and compared with contract requirements and their forecast completion date in the last update. The difference in completion dates between the last update and current update indicates whether the scheduled completion date was maintained, delayed, or showed improvement. There are three areas that need to be monitored to ensure that a project stays on schedule. First, the critical path, since delays to critical path activities are the cause of critical delays to the project. Second, the near-critical paths, to monitor slippage in activities that could result in the critical path shifting to a new critical path and then cause critical delays. And, third, the work paths with significant float, to ensure that the lack of general progress on the project does not push so much work to the end of the project that the project cannot be completed efficiently and without extraordinary effort or significant compromises relative to quality. Even if the scheduled completion dates are maintained in an update as compared to the previous update, an increase in the number of critical activities and the continuing reduction in the float of remaining activities can indicate that the project’s progress will become increasingly more difficult to maintain. This may also be an indication that the effects of delays early in the project are being masked by imprudent assumptions about the amount of work that can be performed concurrently at the end of the project. This issue can also be evaluated using cost- and resource-loaded schedules in combination with earned value analysis. The CM should verify the accuracy of both the actual dates inserted into the schedule and the status of ongoing activities (which may be input by either percent complete or remaining duration). It is important to realize that the Contractor does not have every activity on the construction project in the schedule. Some processes are lumped together to keep the number of activities from getting too


large. When entering start and completion dates, be sure that any related activities are included in those dates. For example, trusses might be "set," but the item isn't complete until the stabilizing cross members are placed and secured; or a concrete wall might be poured, but it still needs curing, stripping of forms, patching and sacking, and waterproofing to be complete. Agreement on the actual dates as the project progresses will facilitate agreement on the as-built schedule. The CM should review any minor logic changes or duration revisions to ensure they are both reasonable and accurate. The update narrative should be reviewed for accuracy. If the update review indicates that construction is behind schedule, the reason for the delay must be identified. If the cause of the delay is the Contractor’s responsibility, a recovery plan should be requested. If the Contractor believes the delay is the Owner’s responsibility, the Contractor should submit a Time Extension Request; including an analysis of the delay.

Updating Options

The updating process presents the project team with distinct options regarding the updating approach that can be taken. Generally, the project team must choose the option that is most suitable for the particular application. The options are discussed below: Percent Complete vs. Remaining Duration Generally, cost-loaded schedules that are used for progress payments are updated using the percent complete method, with the remaining duration of activities calculated by the computer. Some project teams believe that updates based on remaining duration present a more accurate picture of schedule status, since the project manager, superintendent, foreman, and others tend to plan and forecast the remaining work in terms of days it will take to complete (remaining duration) rather than the percent of work that is left. Another option, perhaps, is to disconnect Percent Complete from Remaining Duration and status Percent Complete for costs and Remaining Duration for time. Decisions made during the schedule design and development process can affect the accuracy of Percent Complete information. The level of detail, the types of relationships, and the accuracy of cost loading all potentially affect this accuracy. Percent Complete as a measure of status is more accurate and more closely aligned to Remaining Duration when the cost loading is directly proportional to the duration. As an example, if the electrical service equipment package is embedded in the 8-week installation activity, but all the equipment is delivered on the first day, then the Percent Complete as a function of the cost of the activity will likely be vastly different from the Remaining Duration, which will be a function of the remaining time necessary to install the electrical service package. Percent Complete and Remaining Duration will more closely align when the activity’s total cost divided by the activity’s duration provides a fair and reasonable estimate of the value of the installed work for each day of duration. Retained Logic vs. Progress Override When an activity progresses ahead of its logical start date (out-of-sequence work progress) the schedule can be calculated using the “retained logic” or “progress override” approaches.

With “retained logic,” the update is calculated assuming that the logical relationship is still valid for the remaining duration of the activity even though the activity started ahead of its specified logic. With “progress override,” the scheduler decides to ignore the specified logic when an activity starts ahead of what schedule logic shows to be possible. This will allow the successor activity to


complete prior to the predecessor activity in some cases, which leaves the predecessor activity no longer tied in to the CPM network.

Generally, the prudent approach is to use the “retained logic” method, because the fact that an activity started ahead of its logical start date may not necessarily mean that it can continue to progress or complete without regard to its logical ties. Though prudent, this approach may result in an overly conservative evaluation of the project’s status. On the other hand, the “Progress Override” method may present an unrealistically optimistic projection of remaining work since the scheduler ignores the logic ties associated with work started out of sequence. Ideally, the project team should review out-of-sequence work progress and revise or eliminate logical ties, as appropriate. This approach allows for a more accurate evaluation of the project status.

Construction Schedule Revision Review

A schedule revision involves changing schedule activity durations or logical sequences to reflect changes to the project plan, as presented in the Baseline Schedule or previously accepted schedule revisions. The following are some of the major reasons for logic revisions:

The Contractor’s work plan has changed (changes can be major or minor)

The Contractor is behind schedule and has to incorporate a recovery plan into the schedule

Change orders and the resultant changes in the plan to perform the work need to be incorporated into the schedule.

Minor adjustments to the schedule to correct for out-of-sequence progress can often be viewed as schedule maintenance or part of the normal updating process and do not generally rise to the level of a “revision.” The Contractor should be encouraged to keep the schedule current and maintain its accuracy as a model of the Contractor’s and the project team’s plan for construction. Generally, minor schedule adjustments would not require review and acceptance outside of the normal updating process. It is still necessary, however, for the Contractor to explain even minor adjustments in its update narrative. It is essential that the CM review the revisions proposed by the Contractor. The guidelines for review of schedule revisions are similar to those for reviewing the Baseline Schedule. This includes the need to carefully review Owner requirements or obligations that may have changed from the Baseline Schedule to the revised schedule. It is important to ascertain what the Contractor's expectations from the Owner are with respect to the revised schedule. The revisions might, for instance, require the Owner to expedite or reschedule equipment delivery. Careful attention must also be paid to the effect of schedule revisions on scheduled completion dates and milestones. The Contractor has the right to change its plan for execution of the contract during the course of construction. However, changes to the Contractor’s plan potentially affect other parties. Consequently, revisions made by the Contractor to recoup delays by reducing the durations or increasing the concurrency of subsequent activities or revisions that presume or anticipate time extension requests must be carefully reviewed and analyzed by the CM, and appropriate recommendations made to the Owner. It is important for the Contractor to treat the revised schedule submittal just as it would the Baseline Schedule submission, and provide the same type of information with the submittal, including a written narrative, in order to help the CM and the Owner understand the revised plan. This includes addressing such issues as the changes in necessary resources due to the revisions, the risks added or increased as a result of the revisions, and other concerns.


Rejection of the Contractor’s proposed schedule revisions must be accompanied by carefully documented reasons for the rejection. As with all reviews conducted by the CM of the Contractor’s schedules, the CM should acknowledge the Contractor’s responsibility and right to determine the means and methods of construction, including the need to be able to revise its approach to construction, while fulfilling its responsibility to the Owner and the rest of the project team to ensure that the schedule functions as an effective time management tool and complies with the requirements of the contract.

Analyzing Delay Impact of Change Orders

One of the key responsibilities of the CM is to advise the Owner regarding the impact of change orders on contract completion dates and other milestone dates. Schedule impact analysis can help the Owner have an understanding of the time implications of change orders or other anticipated Owner actions or project events. Such analyses, like the cost estimates prepared for change orders, can provide the Owner with a forward-looking analysis of the estimated time impact due to change orders. It helps the Owner make a fully-informed decision regarding whether to proceed with a change order or not. It also helps focus the project team, including the Owner, on the actions that might be taken to avoid or mitigate potential delays. Whether the CM is providing a unilateral analysis, or reviewing the Contractor's submittal, the approach to such a Prospective Time Impact Analysis should take into consideration the current project status and other available information. This means that the first thing that should be done is to ensure that the schedule that is to be used as the basis for analysis is a current, updated schedule for the project, representing the plan and sequencing of the project. A fragnet (small network that includes the activities encompassing the full scope of work related to the change, modeling the changed condition and its relationship to the rest of the project) should be developed, including understanding all of the logical ties of the fragnet to the rest of the Construction Schedule necessary to provide a good model. The schedule can then be analyzed by incorporating the fragnet into the schedule, recalculating the schedule using the same data date, and measuring the resultant impact on the contract and milestone completion dates. The most current update of the schedule prepared prior to the impact event should be used in analyzing change orders or other events that are anticipated or planned for the future. It is important that this update provide an accurate and complete model of the project, incorporating all previous impact events, corrects any problems with the schedule such as out-of-sequence work, and accurately reflects the status of the project. With the schedule updated accurately to the beginning of the impact event, the analysis will be more accurate, and will function as a much better predictive tool of the consequences of making the change. If the update shows late completion, it can and should still be the basis for analyzing the delay associated with the change order fragnet, if any. For a detailed process that has industry-wide acceptance, see the Association for the Advancement of Cost Engineering, International (AACEI), Recommended Practice No. 52R-06, "Time Impact Analysis: As Applied in Construction." (See the AACEI website for details.) The Contractor submitting a Prospective Time Impact Analysis (TIA) should provide a written narrative, similar to that submitted with the Baseline or update schedules. This narrative provides the background for the analysis, including assumptions and resource limitations, so that the TIA is more easily understood. The written narrative should also state clearly any expectations that the Owner will need to fulfill in order to meet the conditions used to prepare the analysis. This would include reductions to the Owner’s standard submittal review and acceptance periods or modifications to


other requirements that are the responsibility of the Owner that have to be integrated or coordinated with the new scope of work. The Baseline Schedule should not be used in analyzing TIAs, except in the rare case of an impact event occurring immediately after the data date of the Baseline Schedule and, more importantly, when the Baseline Schedule still represents an accurate picture of the project’s status at the time of the impact event. This case rarely presents itself, so it is unusual that a Prospective TIA can rely on the Baseline Schedule as the starting point for analysis. Schedule updates are typically more reliable indicators of the project status of the job. Consequently, schedule updates provide a more accurate basis for assessment of the delay impact of an anticipated change or event. Analyses that are performed by using only the Baseline Schedule as the schedule into which fragnets are inserted are typically called "Impacted As-Planned" or "Impacted Baseline" schedule analyses and usually do not provide good results. This is true for a number of reasons not the least of which being the dynamic nature of the critical path from schedule update to schedule update. If multiple issues or change orders need to be analyzed, they can be done one by one, to evaluate the impact of each issue or change order. But their collective impact is likely to be less than the total of their individual impacts because there is likely some overlap in the impacts of the changes or other events. Consequently, all or a combination of change orders or issues need to be analyzed simultaneously to assess their collective impact. The analytical techniques described in this section provide an estimate of the potential delay (or not) attributable to a contemplated change or anticipated event on the contract completion date. It also provides the project team with critical dates by which decisions need to be made in order to avoid or minimize further delay. Such analyses become the basis for negotiations with the Contractor regarding the delay and time extensions that are required for change orders and other events. As emphasized throughout this document, a prudent CM should question and verify the results of the schedule analysis. The CM should ask if the analysis makes sense, particularly if the results are unexpected, unusual, or counter-intuitive. If the results appear suspect, the analysis and the schedule should be verified to ensure that errors in the analysis or schedule do not result in misleading outcomes. The CM must continue to keep in mind that schedules are a tool for time management. They should not take the place of common sense and good judgment, but enhance them. The contract should require that the Contractor incorporate major change orders into the construction schedule as fragnets as discussed in this section. While it is not absolutely necessary that a fragnet for every change be incorporated into the schedule, particularly if the changed work has already been performed by the time the schedule update is prepared, changed work that is to be performed in the future, that is expected to cause (or will allegedly cause) a delay should be incorporated into the construction schedule to evaluate its impact before the work is performed. Change orders should address the time extensions due as a result of the change. Time extensions should be given when due and should not be withheld to the end of the project. The Prospective Time Impact Analysis is the preferred method for predicting the delay associated with a change. When done quickly and contemporaneously, it can provide the basis for negotiation of the time extension, if any, to be provided as a result of the change. It is in the best interest of the project, the Owner, and the Contractor to negotiate and provide timely and accurate time extensions when they are legitimately due to the Contractor. The use of this well-defined process minimizes the risk of constructively accelerating the Contractor and will reduce disputes and claims resulting from


both alleged delay and disruption. This process will also allow the project team to manage their work more effectively, allowing them to pace other work to match the new time frames.

Analyzing Time Extension Requests

When receiving a time extension request, the preference is to evaluate the alleged delay before it occurs, using a Prospective Time Impact Analysis process, as described in the previous section. This gives the project team an opportunity to avoid or mitigate potential Owner-caused delays before they occur. The CM should emphasize the mitigation opportunity, and remind the Contractor of its responsibility to mitigate Owner delays, when possible. Providing timely, forward looking, notice and analysis is of much greater benefit to the project than allowing delays to linger or accumulate before attempting to analyze them. However, despite the best efforts of the project team, many delay events occur before the Contractor can identify and provide an analysis of the delay. In such circumstances, the analysis will have to be conducted in a forensic mode. The best and most comprehensive compilation and look at methodologies for delay analysis was published by the AACEI with the publication of its Recommended Practice No. 29R-03, “Forensic Schedule Analysis.” (See the AACEI website for details.) As this publication notes, there are numerous methods that have been used to analyze delays, many of which carry the same naming convention, but are performed differently, and provide conflicting results. If the CM provides forensic schedule analysis services, it is important that the CM understand the different methodologies and recognize the strengths and weaknesses of each. This knowledge and understanding is required both to evaluate the Contractor’s time extension requests and to determine the best approach to the analysis of delays. For many projects, the contract is silent regarding the methodology to use to analyze delays. Those contracts that do specify an approach often require some version of a Prospective Time Impact Analysis. However, this approach is really only appropriate when the delay is in the future and has not yet occurred. Frequently, such specifications do not describe how delays that have already occurred should be identified and measured. While there is such a thing as a Retrospective Time Impact Analysis, its application on projects where the contract requires a Prospective TIA is not automatic or even, necessarily, appropriate. Using the AACEI nomenclature, TIA approaches to analyzing delays are considered to be “modeled” approaches. This means that the delay is “modeled,” and the delay impact is determined based on this model. The results of the analysis are dependent on the assumptions that go into the model. This is an advantage when analyzing delays prospectively, since the delay has yet to occur and there is no other way to evaluate the delay other than to model it in the schedule. When viewed retrospectively, however, the analysis can be more difficult. For example, the schedule update that is relevant when evaluating a delay is the schedule update current at the time the delay occurred, not the update in use on the project when the analysis is performed. Picking the right schedule can itself be a source of dispute. Also, since an impact event is chosen, modeled, and inserted into the schedules, it is possible to control or, in the worst instance, subvert the analysis just by the choice of delays or through the development of fragnets. For example, the Contractor could ignore its own, inexcusable delays and insert only the Owner’s compensable delays. The resulting analysis would likely conclude that the Owner’s delays were critical. The other family of schedule analysis techniques identified by the AACEI is “observational” methodologies. Such methodologies are based on “observing” or analyzing the existing project schedules. Because these approaches use the existing project schedules and schedule updates as they existed on the project, there is less opportunity for the analyst to push the analysis in a particular


direction. Overall, this family of schedule analysis techniques is viewed as being less subjective. Observational approaches require a two-step analysis that first identifies and quantifies the delay. Research is then necessary to determine the cause of the delay. Regardless of the approach used to analyze the schedule and determine the delay, it is imperative that the Contractor provide a narrative report that gives the history of the issue, explains how the analysis was performed, and presents the actual analysis, including schedules, schedule updates, and fragnets (if used), and demonstrates entitlement to the time extensions sought. This will help the CM in its review of the Contractor’s time extension request and expedite the resolution of the issue. Given the potential controversies, the contract should outline the procedures to be followed in determining time extensions. Generally, the Contractor will be requested to submit an analysis of each change order or other issue and demonstrate their impact on the schedule as substantiation of any time extension request. The specifications should make clear that only delays to the critical path will be cause for time extensions, and that float is not owned by either party to the contract. If an independent delay analysis was performed by the CM, the Contractor’s request should be compared to the independent analysis. The differences should be verified as to facts and become the basis for negotiating an agreement with the Contractor. If an independent delay analysis was not available, the Contractor’s request should be evaluated objectively based on the information provided and the available project records. Upon verification of the facts, the CM’s evaluation of the Contractor’s submission becomes the basis for negotiations. The contract should require timely submittal of time extension requests and the CM should respond expeditiously. Waiting to address time extension requests at the end of the job is a strategy that will, more often than not, lead to controversies and claims. The establishment of trust and a willingness to address and resolve issues promptly between the CM, Owner, and Contractor can help foster timely and amicable resolutions to problems that might otherwise lead to disputes, claims, and, sometimes, costly and non-productive litigation. The Owner must be fully informed and involved in the execution of time extensions to the Contractor. The CM’s analysis and findings become recommendations to the Owner. The Owner has the final authority to grant time extensions.

Concurrent Delays

Concurrency of Contractor delays with Owner delays should be fully considered in analyzing delays and time extensions. Though dependent on the contract and applicable law, concurrency of Owner-caused delays and Contractor-caused delays typically results in a time extension to the Contractor that is non-compensable and excusable. Essentially, the assessment of liquidated damages against the Contractor for late completion is waived. If any compensation would be due the Contractor, it would likely be the result of the Owner’s decision to accelerate or re-sequence the schedule to recover such concurrent delays. The analysis of concurrent delays requires knowledgeable schedule analysts willing to take the time and make the effort to fully understand the project schedule and to dig into these schedules and other project documentation to identify the start and finish of individual delays, their causes, and the responsible parties. When the Owner causes multiple delays and the Contractor’s work, for other reasons, is also proceeding slowly, the complexities associated with evaluating concurrent delays are multiplied.


The only sure way to identify and assign responsibilities for delays that might be concurrent is to perform a detailed analysis of the project schedules and associated project documentation.

Recovery Plan

If it is determined that the project delays were caused by the Contractor, the CM should require the Contractor to submit a recovery plan. The recovery plan should include “concrete” actions, such as increasing crew size or working overtime, rather than simply reducing the planned durations of the work remaining in the schedule, especially for activities such as punch list and clean up. Arbitrarily re-sequencing sequential work to proceed more concurrently without corresponding commitments to mobilize additional crews and equipment should also be avoided. The first step in development of the recovery schedule is to update the current schedule and ensure that it provides a good model of the current project progress and conditions. This is necessary so that the team really understands the status. During the development of the recovery schedule, some level of risk analysis should be performed, especially in the choice of which trades to accelerate. For example, if the electrician caused the delay and is understaffed, then expecting the electrician to work overtime or increase resources may be naive. Relying solely on the electrician to recover project delays in this circumstance could doom the recovery effort to failure. The development of the recovery schedule is important and the Contractor should be encouraged to spend the effort to evaluate the most cost effective approach to achieving the necessary improvement in the scheduled project completion dates. Working overtime to recover delays may not provide the improvements expected due to the inefficiency that can result from excessive or poorly managed overtime. The CM should suggest that sequencing be reviewed as a potentially more cost effective method for gaining time. Whatever changes are planned in the development of the recovery schedule, it is important that the recovery approach be schedule-driven, showing specific steps in the schedule and not relying on abstract commitments. The entire project management team should be involved in this schedule development to get their buy-in into the final product. Review and acceptance of the recovery plan should be consistent with the procedures for review and acceptance of revisions to the schedule discussed earlier. Once accepted, the recovery plan should be incorporated into the Construction Schedule. If there are differences between the Contractor and the CM or Owner as to responsibility for delay, and a time extension is not granted, the Contractor may claim that schedule recovery on their part, even without explicit direction from the Owner to accelerate, is a “constructive acceleration.” In such circumstances, the Contractor will typically submit a claim to the Owner to recover the costs associated with the acceleration. The CM should be aware of the legal requirements for a Contractor to be entitled to additional compensation for constructive acceleration. The CM should endeavor to answer questions expeditiously and negotiate time extensions, when due, with the Contractor to reduce the likelihood of a claim of constructive acceleration. If that is not feasible, the CM should clearly document all issues, all direction given, the job status, the Contractor’s actions, and other relevant events to assist the Owner with the defense of the Contractor’s claim.

Short Interval Schedule

The short interval schedule (SIS) is typically a 3- to 4-week (past week, this week, and the next 1 to 2 weeks) window that is consistent with the contract schedule. The SIS provides the project team with a detailed look ahead at the immediate plans of the Contractor.


The SIS can be based on the contract schedule, but may provide more detail to better define work activities. For example, if the construction schedule had an activity identified as, “pour slab on grade—south side,” the SIS may break it down by grids to better define the specific portion of the slab on the south side where concrete will be poured each day. The Contractor should be encouraged to cross reference such detailed SIS activities to the associated schedule activity. Some project teams select the 3- to 4-week windows out of the schedule and use these excerpts as the SIS. This approach can be successful as long as the schedule is sufficiently detailed, is kept current through updates and appropriate logic and duration revisions, and accurately reflects the detailed plan being pursued by the Contractor’s project superintendent. The SIS is a very important document. It is the bridge between the day-to-day activities on the job site and the schedule. This is the document that is used in weekly project meetings to review the work progress and plan the coming week(s). It can be an extremely useful tool when developing a detailed daily as-built schedule.


Chapter 6: Post-Construction Phase

Introduction

The Post-Construction Phase is the phase that bridges construction and operations. This phase gets the Owner from one to the other, finalizing construction, and handing the facility over to operations. For some projects, this phase is small and minor. For other projects, it is complex and involves numerous players and a multitude of actions. In both cases, the Post-Construction Phase is an important part of the process. In fact, it can be just as important as the Design or Construction Phases. Accomplishing the transition from construction to occupancy smoothly is another basic aspect of time management. The CM, by managing the time element, can build a satisfactory bridge between construction and operations.

Role of the CM

The Owner, the facility occupants, the Design Professionals, the Contractor, other Contractors, and the CM each have a role to play during the Post-Construction Phase. The CM plans and organizes for the occupants so that they can take advantage of all the work that has gone into the project, and guides all the parties to efficiently make the transition. The Contractor completes the construction for the facility and prepares it for occupancy. As soon as the construction is completed, the Owner desires to move in and occupy the facility or make it available for tenants to occupy. The Design Professional will be directly involved with the final actions to complete the Construction Phase, including preparing or reviewing the As-Built drawings for the project, closing out submittals, and other functional issues related to facility operations. All of the interests, concerns, and actions of all team members must be managed to make the bridge between construction and operations. For small projects, this transition might be handled by the Owner or the occupants, with limited assistance from the CM. Larger projects typically will benefit from the CM overseeing all aspects of occupancy and representing the Owner on a variety of matters relating to this phase.

Use of CPM Schedule

Just as the Construction Schedule is an important tool in managing the ongoing construction, it is also an important tool for construction completion and preparation for the Post-Construction Phase. The schedule as a management tool becomes all the more important at the end of a construction project. It is a time when the schedule is most effective at identifying what still has to be done, when, and by whom, so lost time is minimized and the need for excessive labor is eliminated. Completing the Construction Schedule is the means to obtain that objective. Too often, the construction schedule is neglected as substantial completion is achieved. Continuing to use this management tool and continuing to update the schedule and treat the schedule as an active document all the way through to final acceptance and occupancy is a win-win situation for both the Contractor and the Owner. The end of the project is a time when competing interests come into play. Until that point, the Contractor focused on construction, the action that the Contractor does best. At the end of the


project, however, other interests come into play. The Contractor wants to reach final acceptance with minimum additional expenditures and is ready to start reducing its work force and moving its project management team to other projects. The CM wants the Contractor to correct all remaining punch list items. The construction documents require numerous non-construction actions by the Contractor. The Owner wants to occupy the new facility. The occupants want changes as they occupy the facility and still want the occupancy to run smoothly with minimum disruption to their operations. These conflicting interests can often delay project acceptance, extending project completion. It is important to continue to provide accurate updates to the schedule regularly to support active planning and management of the remaining work, to maintain an accurate historical record of project events, and to allow for expeditious and objective analysis of delays. At no time in the project life-cycle is the risk of change any higher than at the end of the project, when the stakeholders are witnessing the final product, starting to finalize the total project costs, and dealing with the end users. The schedule must continue to provide a good model of the project means and methods and be kept current with changes, sequence changes, and other revisions, as necessary. With a good and accurate identification of the critical path, it is easier to assess requested changes and to provide analysis of the effects of delay impact events. This is also the best way to minimize confusion from intermingled concurrent delays on the project. With an accurate and timely schedule in hand, the evaluation of concurrent delays is less subjective. To help manage all of the actions at construction completion, the schedule should include all end-of-project requirements contained in the construction documents, typically in the general provisions. These requirements include items such as developing and completing punch lists, training for operators and maintenance personnel, making final project deliverables as a pre-condition for final payment, project clean-up, disposal of excess material, turnover to operations of closeout documents, restoration of the site, equipment start-up actions, and financial closeout. Without a good schedule that contains all work required to meet those completion requirements, management of the Post-Construction Phase becomes haphazard, unfocused, and more likely to fail.

As-Built Schedule

The As-Built Schedule documents records what actions were accomplished and when, records warranty and start-up actions, tallies costs if the schedule is cost loaded, and provides one source of historical information for any unresolved disputes and claims. It is important that as part of the process of finalizing the As-Built Schedule, the actual dates and activities are validated. Historical data in the project As-Built Schedule that is not accurate will reduce its value and potentially hinder the resolution of remaining disputes. The final update of the Construction Schedule becomes the As-Built Schedule for the project. Though it is unlikely that this schedule will eliminate the need for a more detailed daily As-Built should there be a claim on the project, it can serve as the basis for such a schedule. If used this way, the final update can be augmented by data from the daily reports, meeting minutes, photographs, correspondence, and other detailed project records that map the daily activities during the project.

Occupancy Plan

The Occupancy Plan is the means to bridge the gap between the Construction and Operations Phases. It is the schedule of activities, actions, responsibilities, the sequence of actions, and the timing for those operations. The plan includes not only those construction activities that relate to


occupancy, but all the other actions too. These actions include planning for the move, arranging for the move, buying and delivering furniture, fixtures and equipment (FF&E), buying the initial consumables, stocking the supply stores, and preparing the occupants for the move. The plan must incorporate change management for the flexibility to accommodate occupant needs that were not identified or disclosed in the original program. In addition, it is not unusual for the end users to change or increase in number. The Occupancy Plan, explained through the schedule, is the means to organize and monitor all the work that must be done in order to complete the project. For some renovation projects, construction and occupancy may occur simultaneously. When a large building is renovated, the occupants may be relocated in a series of moves to and from swing spaces. If swing space is not available, temporary facilities may be required. Of special concern will be the disruption of the HVAC systems in a partially occupied building. The schedule is critical for the coordination of outages, start-ups, and shut-downs. In this renovation case, the Occupancy Plan parallels construction. Other complexities arise, such as maintaining secure areas. All of these concerns should be addressed by the Occupancy Plan. For new facilities, the situation is different, but no less important. New facilities require the coordination of many different activities at once, all pointed toward a single move-in and occupancy date. The planning and coordination can be monumental for large projects. The construction must be completed in a timely manner. The occupants must be prepared. Local utilities must make connections and start service. Suppliers, vendors, and support Contractors must be established or converted for the new facility. Personnel actions must be taken and communication between the different stakeholders becomes vital. Whether the project involves renovation or new construction, an Occupancy Plan is required. The Occupancy Plan is the vehicle, and the communication tool, to pull together all of the various actions that relate to the occupancy phase. At a minimum, the Occupancy Plan should identify actions, dates for those actions, sequencing, and the lead responsible party. For large projects, the plan may be a sizable document with sections devoted to each functional area. In this case, the schedule would be the summary document for all of the sections. The schedule could have different levels of detail, with the ability to extract different views of the schedule such as an overall schedule for top management review and individual detail schedules for each functional area. The schedule would be the management tool, whereas an accompanying narrative document would summarize the results of the occupancy phase planning process. The process that produces the Occupancy Plan may be swift for small projects or more time consuming for large projects. If the project is large and involves many parties and actions, the process should start early and be organized into a separate group. The occupancy planning group should be organized based on the number of functional areas involved. For example, a typical Occupancy Planning group for a large comprehensive project may involve the following personnel:

Chairperson from the CM or Owner

Member from facilities or engineering

The Design Professional

Members from the occupant group

Commissioning Agent

The Contractor

Regulatory agencies (inspectors, fire marshal, etc.)

Utility companies


The move coordinator

Vendors (demountable furniture, telephone/communications systems, etc). This group would meet as often as necessary to define what has to be done, what activities must be accomplished, establish the timing and sequencing of those actions, and assign responsibilities. Progress monitoring could be accomplished with meetings or with feedback reporting. The occupancy plan would address functional items such as the following:

Construction completion: Timing of construction turnovers, the As-Built Schedule, As-Built drawings, partial occupancy, start-up of equipment, and training

Non-construction facility issues: Telephone systems and wiring, computer systems and wiring, and additional signage

Furniture, fixtures, and equipment (FF&E):

Identification of requirements, budgeting of funds, procurement, temporary storage, and move-in and final placement

Outfitting of consumables: Identification of requirements, budgeting of funds, procurement, temporary storage, and final placement

Other operations items:

Equipment and tools and other consumables

Information services: Informing involved parties, mail control, rumor damage control

Move-in: Space plan, parking plan, logistics, relocation services, move coordinators, flag people, move rules (do’s and don’ts), and utility cut-overs

The Occupancy Plan is a management tool to organize how the Owner gets from construction completion to a fully operational facility. It identifies assignments, sets up processes for monitoring actions, establishes information-sharing procedures, provides for corrective actions, and states the details for commissioning. The plan is best communicated through a good occupancy CPM schedule that can be easily monitored and analyzed when changes occur.

Commissioning and Move-in

Commissioning involves the execution of the Occupancy Plan, which serves as a guide for all of the actions required during the Commissioning process. Without adequate planning, Commissioning execution will consume scarce time and funds. Adequate planning is the driving issue for successful Commissioning. All organizations—manufacturing, services, or governmental—face a big financial impact risk from poor Commissioning planning. Manufacturing costs are highly visible and therefore very apparent to top management. What may not be easily recognized is that delays to service and governmental organizations also have large cost impacts, but those costs are not readily visible. The impact starts with lowered productivity while people are preparing for the move, no productivity while the move is under way, and lowered productivity again while the people adjust to the new facility. These periods of less than full productivity can be decreased and minimized with satisfactory planning and execution. In addition, the risk of complete or partial shutdown of operations is greatly increased without a good Commissioning plan as well as the complete Occupancy Plan. Each of the functional areas of the Occupancy Plan requires an execution leader, someone who will make the plan happen and adjust as the circumstances warrant. These leaders should communicate


and coordinate with a central command post where actions are monitored, using the schedule and the Move-in Plan. Phased Commissioning operations are easier to manage when the actions take place over a greater length of time, but any Commissioning operation will require enough time that it must be first planned. In any case, organization for the execution of Commissioning is second only to the planning. The organization must address the functional areas as well as the physical aspects such as locations and directions. The third important element for the Commissioning execution is communication. All three of these elements are bound together through the use of the schedule as the planning and execution monitoring document. With a good schedule, the Owner can always be kept abreast of accurate predicted completion and occupancy dates.

Sustainability Verification

If one of the goals of the project were to achieve a certain level of sustainability as established by certifying authority (e.g., the United States Green Building Council in the case of a project seeking LEED certification), the schedule should include an activity showing the duration of time required after the final submittal of the application until a decision or finding is rendered by and received from the certifying authority regarding the certification level or score achieved. This could take more than a year after the final application is submitted.

Summary

The Post-Construction Phase bridges the gap between the Construction Phase and the Operations Phase. This phase requires planning and execution just as the other phases. The management tool that best helps planning and execution is the occupancy schedule, which provides for the identification of required actions, the timing and sequencing of those actions, and the responsible party for each action. The schedule can be used to monitor and track progress and document adjustments. Real benefits can be obtained with the proper and full use of schedules and prudent time management during this phase. Completing the Post-Construction Phase is like a very complicated chess game with all the different items needing to be coordinated and maneuvered into position at the right place and the right time, at the right cost. Only through the use of a good occupancy schedule can this phase run smoothly and efficiently.



Index

A

AACEI. See Association for the Advancement of Cost Engineering, International

Analyzing Delay Impact of Change Orders, 33 Analyzing Time Extension Requests, 35 As-Built Schedule, 40 Association for the Advancement of Cost Engineering,

International, 33, 35

B

Bar Chart, 5, 6 Baseline Master Schedule, 9 Basis for Determining Time Extension, 18

C

Calendar Day, 16 Commissioning, 16, 42 Commissioning and Move-in, 42 Concurrency, 18 Concurrent Delays, 18, 36 Construction completion, 42 Construction Phase, 8 Construction Schedule Acceptance, 28 Construction Schedule Development, 26 Construction Schedule Review, 27 Construction Schedule Revision Review, 32 Construction Schedule Update Review, 30 Construction Schedule Updates, 29 Cost and resource loading, 16 Cost Load, 16 CPM. See Critical Path Method Critical Path Method, 5

D

Defining the Appropriate Level of Scheduling, 5 Delay Compensability, 18 Delay Excusability, 18 Design Phase, 5, 7, 11, 12, 13, 14, 21 Design Phase Milestone Schedule, 9 Design Schedule, 11 Design Schedule Review and Acceptance, 12 Developing Schedule-Related Contract Provisions and

Specifications, 15

E

Early Completion Schedule, 17 excusable delay. See Delay Excusability

F

FF&E. See Furniture, fixtures and equipment Furniture, fixtures, and equipment, 42

I

Initial or Preliminary Schedule, 16

L

Level of Detail, 16 Liquidated Damages, 19

M

Master Schedule, 5, 6, 9, 10, 11, 12, 13, 21, 25 Master Schedule Update, 9 Monitoring and Updating the Design Schedule, 13 Move-in, 42

N

Narrative Reports, 17 No Damage for Delay Clauses, 19 Non-construction facility issues, 42

O

Occupancy Plan, 40, 41, 42 Occupancy Planning group, 41 Owner Responsibilities, 17 Ownership of Float, 17

P

Percent Complete, 31 Percent Complete vs. Remaining Duration, 31 Post-Construction Phase, 8, 43 Pre-Bid Construction Schedule, 8, 11, 14 Pre-Design Phase, 5, 6, 9, 10 Procurement Phase, 8, 14, 21, 22, 26 Progress Override, 31

R

Recovery Plan, 19, 37 Remaining Duration, 31 Remedy for Non-Compliance, 16 Resource Load, 16 Responsibility, 15 Retained Logic, 31 Revised Schedule, 19 Role of CM in Time Management, 2 Role of the Construction Manager, 11, 21, 25, 39 Role of the Construction Schedule, 25


S

Schedule Acceptance, 16 Schedule Format and Submission Requirements, 15 Schedule Revision, 30 Schedule Updates, 17 Short Interval Schedule, 19, 37 SIS. See Short Interval Schedule Startup, 16 Subcontractor Participation, 19 Sustainability Verification, 43

T

TIA. See Time Impact Analysis

Time Impact Analysis, 33, 34, 35 Time Management Basics, 2 Timeframes, 15

U

United States Green Building Council, 43 Updating Options, 31 Use of CPM Schedule, 39

W

Weather, 17 Workday, 16

Documents

Time Management Guidelines - cmaanet.orgcmaanet.org/files/publications/PubsDload/CMAA Time Management...CMAA 2012 Time Management Guidelines | Page v Preface These Time Management