TIA is a simplified analytical procedure typically specified on, of excusable days to project completion, due to delays that were not the. In the absence of liquidated damages, the Owner is often entitled to compensation for its actual damages. The start of work impacts discussed in Step 3 acted as the linkage between the change order fragnet activities and the impacted existing schedule activities. 29R-03 Forensic Schedule Analysis also sets forth this requirement:3. ), which allowed for a reasonable assessment of estimated schedule activity duration changes by discipline and plantarea. in Chemical and Petroleum Refining Engineering from the Colorado School of Mines in 1974. "Critical path method (CPM) schedules, properly prepared and maintained, make it possible to demonstrate, with reasonable certainty, the impact that can occur as a result of delays on a project. 124 on these existing activities. In these situations, the most appropriate logic tie from the fragnet to the existing activity in progress was determined to be an FF tie between the start of work event dates within the fragnet chain to the finish of the impacted existing activities. 25 See Section 6.6 of this article regarding Global vs. Firms and institutions with individuals participating as members of the standard committee include: AECOM, Altran, Berkeley Research Group, Capital Project Management, Inc., Delta Consulting, Exponent, Hill International, Illinois Institute of Technology, The Kenrich Group, Navigant Consulting, Secretariat International, and the Virginia Polytechnic Institute. Therefore, detailed research of the project records was necessary to fully understand when change order work actually commenced. 29R-03 Forensic Schedule Analysis, April 25, 2011. If, for example, a FF tie with a ten-day lag (FF 10) was created between Activity A and Activity B, the FF tie would hold out the completion of Activity B by ten days after the Activity A was completed. We are committed to sharing industry knowledge through publication of our books and presentations. Therefore, common industry practice is to insert the impacts into schedules that were updated prior to the occurrence of the impacts.8 Thus, the TIA/UIA is typically calculated by adding impacts that occur during each schedule period/window to the schedule which is statused at the start of each specific window or impact period (which is typically the same schedule that is statused at the end of the prior window), usually the the monthly schedule updates prepared during the project. Before a TIA may be accomplished, an accepted, CPM schedule, with a status date immediately just prior to the delaying event, must be developed that, has no reference to the delay in question. The Owner should approve or reject this TIA strictly in, accordance with contract terms and the same standard as was used b, intended to facilitate a reasonable estimation of the time impact to the project caused by a single delay, The TIA procedure is performed while a project is on-going, and thus has a, prospective analysis perspective in near-real time. 12 A contract may set forth the Contractors obligations including, but not limited to, design and engineering, procurement, construction, management, and other components of its work scope; the competency of its personnel; the Contractors responsibility for delays associated with its equipment; the Contractors responsibility for its work site; the Contractors responsibilities for local conditions; the requirement that the Contractor prosecute its work with diligence and dispatch; the Contractors responsibilities for warranties and defects; the Contractors responsibilities for quality assurance/quality control (QA/QC) and inspection and testing; the Contractors responsibilities for its subcontractors performance; the Contractors responsibility for standby time; and the Contractors obligations for work commencement, prosecution and completion. If youre looking at delays prospectively, in other words, before theyve occurred (youve got a change and youre trying to figure out how this change youre contemplating would affect the project) a TIA approach is the approach youd use to evaluate the delay. On Corporate Counsels Desk: A Primer for Outside Counsel Working with In-House Government Attorneys, Toil or Trouble: Labor Under the Federal Miller Act, Message from the Chair Elect: Making The Business Case For The Forum, American Bar Association The TIA is a forward-, looking, prospective schedule analysis technique that adds a modeled delay to an accepted contract, schedule to determine the possible impact of that delay to project completion. You take that fragmentary network, you drop it into contemporaneous schedule, and then look to see how it affects that schedule. For the sample gas project used for this article, the intent of the TIA/UIA was to model the effects of the change orders by impacting existing schedule activities with the changes and estimate the impact to the overall project completion date, if any. H,-Dv#Eo|@$&FFfP~w=0 HBRC Journal. However, approximately two months later, at the start of Window 3, the process had not progressed as originally anticipated. The magnitude of these projects can range from hundreds of million dollars to several billion dollars in contract amount. Any additional delay beyond the completion date calculated by the modeled schedule network with Owner-caused or other excusable delays inserted into the schedule would result from Contractor-caused problems; Potentially quantifying the amount of compensable delay; Demonstrating potential schedule acceleration by comparing the statused, as-built schedules to the impacted schedules for each schedule window. Get Access to ALL Templates & Editors for Just $2 a month. In this example, 7 work days of float exists on Activity 4 in a baseline CPM schedule, and a 3-work day delay to Activity 4 decreases the available float for that activity, in this case from 7-work days float to 4-work days float, but does not delay the Completion of Work. This is because before a party is entitled to time-related compensation for damages it must show that it was actually damaged. . Hehas presented and published numerous articles on the subjects of claims analysis, entitlement issues, CPM schedule and damages analyses, and claims prevention. In fact, for this sample gas project, the Contractor and Owner indeed both recognized that it was more important to start performing change order work as quickly as practical to keep pace with the current cadence of the work being performed and not wait for final signatures, although this was a deviation from a strict compliance with the Contract. While the time impact analysis tells you how much time these delays will take away, there are things that you one can benefit from knowing the information. and A.F. If youre interested in knowing the steps, just send me an email at scott.lowe@traunerconsulting.com. in Chemical Engineering from the University of Pittsburgh in 1970 and an M.S. By adding the Owner-caused delays to affected schedule activities in the baseline schedule, or to subsequent schedule updates during which the work was delayed, or to future activities that are known to be affected by a change order when the delay caused by that change order is evaluated, the calculated schedule impact result determines the amount of time extension that would be required, if any, as a result of the Owner-caused delays to the then critical path of the project schedule. As part of the evaluation of change order impacts that were inserted into the various analysis schedules, further evaluation of Contractor-caused delays embedded in Owner-responsible events was performed, especially for those impacts that spanned multiple months. The BIA measures the potential quantifiable and qualifiable impact that could occur if any business function was unable to operate for a period of time for any reason. The proper analysis of impact requires a counterfactual of what those outcomes would have been in the absence of the intervention.1 It may have taken 60 years, but the construction industry finally has an industry standard governing the use of CPM scheduling in schedule delay analysis. In consideration of the previous examples, the methodology for assessing schedule impacts to the sample gas project, due to approved change orders, generally included the following eight (8) basic steps discussed in the subsequent sections. While performing a TIA/UIA, it is important to determine the impact type and format, as described above, to more accurately model and quantify all impacts potentially affecting the schedule. CO44 would increase the original duration for the existing HAZOP schedule activity V1T250173 by 31 work days. Similarly, other types of relationship delays can be added to the schedule to model the effect of finish-to-finish (FF) or start-to-finish (SF) relationship delays. In Figure 1, a fragnet representing an Owner-caused change order is added at the time that the change order occurs to a statused or progress schedule update containing a simple chain of activities. However, TIA is an acceptable and useable tool for the, a past delay when employed in an analytical tool, such as a. these are usually far more expensive to prepare, more time-consuming, and require more expertise, : As a general guideline, TIA is more or less acceptable and useable for the, Do not sell or share my personal information. 124 were distributed, with 1,273 additional man-hours (48percent) allocated to piping fabrication and 1,401 man-hours (52percent) allocated to piping erection. It was concluded that this allocation method was reasonable and a fair representation of the impact caused by Change Order No. Thus, if there are questions regarding the Contractors entitlement to a time extension for any given impact, it may be helpful to know the effect, if any, of that given impact on the results of the analysis. Each guideline has commentary associated with it further explaining the guideline. Further, it was estimated that Change Order No. Youre going to have to figure this out so that you can describe each of them in the analysis. Mr. Long is based in Littleton, Colorado and can be contacted at rlong@long-intl.com and (303) 972-2443. Relevance In fact, if a party is not seeking compensation for the delay, be it the contractor forgoing delay damages and seeking only a time extension, or the owner forgoing liquidated damages and only defending the contractors compensable delay claim, that party need not concern itself with its own concurrent delays. The estimated additional (or reduced) engineering hours and field installation hours related to each change order were analyzed to estimate the extended or reduced impact on each activitys duration. Based on a thorough review of the change order information, the analyst found that one or more of the fragnet activities (described in Step2) in each change order were the driving start of work event, whose completion date, or start of change order work date, was the same as the Contractors actual start of the change order work. If you would like to learn about the other types of sample analysis that you can come up with, then you may decide to go through our site. 5.1.2.3 Time Impact Analysis Approach . Thus, the Contractor may be entitled to a time extension as a result of the added scope of work. Throughout the process, it is highly recommended that all notations, assumptions, and variations be recorded for traceability and future reference. 372 0 obj <> endobj Excusable delays can also be noncompensable delays for which the Contractor receives no additional compensation. Youll never know if there were any changes that were made before conducting the analysis so its important that you are able to grab hold of the updated schedule to ensure that you dont miss out on any last minute changes that you could have missed.
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