1. McDONOUGH BOLYARD PECK CONSTRUCTION ENGINEERING SUCCESSFUL STRATEGIES FOR SCHEDULING PROJECTS TO FINISH ON TIME Presented by Christopher J. Payne, PE, CCM McDonough Bolyard Peck

2. 2 Projects are frequently late Delays are contentious Schedules are contentious –Not used properly –Difficult to manage BACKDROP

3. 3 CPM is the best tool out there Highly defined requirements will encourage contractor compliance Schedules don’t build jobs, people do WHAT WE ALL KNOW …or think we know

4. 4 How do we use the schedule successfully to ensure the project is completed on time? So…

5. 5 Specifications Building the Schedule –Partnering –Sub Buy-in –Cost Loading –Resource Loading Updating the Schedule Resolving Problems with the Schedule AGENDA

6. 6 Building the Schedule

7. 7 BUILDING THE SCHEDULE UNLESS… –Specifications have too many rules WHAT WORKS –Clear Specifications

8. 8 Good –Activity Code Structure –Maximum durations –How time will be extended –Use for Payment Bad –Minimum activity requirements –Numbering rules –Restrictions on relationships –Onerous reports BUILDING THE SCHEDULE

9. 9 UNLESS… –People don’t partner WHAT WORKS – Partnering the Schedule

10. 10 Good –Jointly working on schedule –Making sure subs are present –Understanding philosophy of how job will be built –Making a complete schedule (all activities) Bad –Dictatorial review comments –Contractor creating a submittal to fulfill a requirement –Pre-claim posturing –Mismatched subcontractor input BUILDING THE SCHEDULE

11. 11 How to intelligently involve subs? –Subs not on board at beginning –G.C.’s practicing “mushroom” philosophy –G.C.’s running two schedules One Solution… –Keep schedule on the table at all meetings with subs CHALLENGE

12. 12 BUILDING THE SCHEDULE UNLESS… – It becomes an unwieldy mess WHAT WORKS – Cost-loading the Schedule

13. 13 CHALLENGE How do you get the Schedule of Values to agree with the CPM? –Build together –It takes work –Don’t duplicate work BUILDING THE SCHEDULE

14. 14 BUILDING THE SCHEDULE UNLESS… – The purpose isn’t clear WHAT WORKS – Resource-loading the Schedule

15. 15 Good –Resource loading to identify manpower needs, smooth peaks, corroborate with bid Bad –Hard to get real data –Is it necessary to update? –Sub reluctance –Use as a weapon BUILDING THE SCHEDULE

16. 16 Updating the Schedule

17. 17 UNLESS… –Still waiting for/arguing over baseline –Schedule is unwieldy/lack of contractor help in updating UPDATING THE SCHEDULE WHAT WORKS –Update at the date of the pay requisition

18. 18 Accurate Updates –Get into a rhythm –Have a substantive but informal review meeting –Agree on progress first, acknowledge status –Understand implications and deal with later –Two-part process STRATEGIES

19. 19 Resolving Problems with the Schedule

20. 20 Delay is inevitable. Disagreement is inevitable. Communication and resolution are not inevitable. OBSERVATIONS

21. 21 UNLESS… –Process gets behind –Process is unwieldy –Disagreement over impacts RESOLVING PROBLEMS WITH THE SCHEDULE WHAT WORKS –Time Impact Analysis

22. 22 Develop fragnet of impact Run schedule before impact Run schedule with impact PITFALLS –Too many changes –Requires time to develop –How to address an ongoing change TIME IMPACT ANALYSIS APPROACH

23. 23 Can you agree on an impact without agreeing on entitlement? Forward-looking mindset vs. backward-looking Typical scenario may take 2-3 months to resolve…what to do about project in the meantime? TIME IMPACT PITFALLS – DISCUSSION

24. 24 TYPICAL SCENARIO TIA 1 TIA 2 DELAY … Owner worried about this… TIME $ … …but not ready to agree on this DD PLAN PROJECTION

25. 25 Acknowledge Delay Quickly Do TIA’s but pick milestones to cut off analysis and assess globally Tolerate negative float (for a while) Continue to insist on performance Allow (but discuss) minor logic changes TIME IMPACT STRATEGIES

26. 26 Two-year project, $40 million Baseline schedule submitted 4 weeks after NTP Owner comments 7 weeks after NTP Resubmit 10 weeks after NTP Approval 12 weeks after NTP 1st update 14 weeks after NTP, shows project 6 weeks behind SAMPLE SITUATION

27. 27 Contractor’s narrative: –We were delayed by bad weather, late approval of drilling plan, late availability of east access. –We anticipate recovering time by working six- day drilling schedule and in later work. SAMPLE SITUATION

28. 28 What should Owner do? 1.Schedule unacceptable. All delays are contractor’s. Resubmit with recovery plan. 2.Acknowledge receipt of schedule, but do nothing else. 3.Dialogue, discussion, concession, analysis… EXAMPLE

29. 29 Outcome No. 1: –Contractor disagrees, asserts right to file a claim, brings up constructive acceleration… –Schedule is now a “claims football”…but is no longer useful as a communication tool on the project. EXAMPLE

30. 30 Outcome No. 2: –Contractor submits the next update, now nine weeks late. Cites more vague causes of delay… –Claims are brewing… –Job tracking late… EXAMPLE

31. 31 Outcome No. 3: –Grant 5-day EOT for late pile approval. –Pay limited acceleration cost to overcome delay. –Cite lack of progress on other paths. –Job in good shape going forward. EXAMPLE

32. 32 Schedule is a necessary tool too often overlooked. Cost implications are huge. Proper use of tool limits intimidation and ignorance. SUMMARY

33. 33 Schedule should be a communication tool, not a communication barrier SUMMARY