Typical Delay Analysis Methods in Construction Claims

This article addresses the concepts of some typical delay analysis methods in construction claims.

Why do we need Delay Analysis in Construction Claims?

Because The Delay Must Affect The Critical Path

The Construction Contracts often state that no adjustment to the critical milestones dates or the scheduled completion dates would be made unless the delay affects a critical path activity.

This concept is consistent with industry practice, as stated in the SCL Delay and Disruption Protocol 2nd Edition, page 6: “Unless there is express provision to the contrary in the contract, where there is remaining total float in the programme at the time of an Employer Risk Event, an EOT [Extension of Time] should only be granted to the extent that the Employer Delay is predicted to reduce to below zero the total float on the critical path affected by the Employer Delay to Completion (i.e. if the Employer Delay is predicted to extend the critical path to completion).”

AACE (International Recommended Practice No. 29R-03 Forensic Schedule Analysis, April 25, 2011, Section 1.5, B.6 Delay Must Affect the Critical Path, page 18) addresses this requirement: “In order for a claimant to be entitled to an extension of contract time for a delay event (and further to be considered compensable), the delay must affect the critical path. This is because before a party is entitled to time-related compensation for damages it must show that it was actually damaged. Because conventionally a contractor’s delay damages are a function of the overall duration of the project, there must be an increase in the duration of the project.”

So, if the effect of adding any delays to the schedule is that float is consumed, but no actual delay to the completion of the project results from adding the delays, then the Contractor has no time extension entitlement.

Delay Analysis Methods

Delay analysis can be performed by a few methods.

The Society of Construction Law (SCL) Protocol 2nd Edition (Guidance Part B, paragraph no. 11) lists six common methods described in the table below.

Typical Delay Analysis methods in the Construction industry-1
Delay Analysis methods according to SCL Delay & Disruption Protocol

AACE International’s Recommended Practice No.29R-03 for Forensic Schedule Analysis (RP 29R-03) lists nine different methods described in the table below.

Typical Delay Analysis methods in a Construction Claim-1
Delay Analysis methods according to AACE International’s Recommended Practice No.29R-03

Concepts of Typical Delay Analysis Methods

1. Time Slice Windows Analysis

What is Time Slice Windows Analysis:

Time Slice Windows Analysis is an observational, windows-based methodology that focuses on comparing as-planned, updated and as-built project schedules to identify and quantify delays to the critical path of the project.

The Purpose of the Analysis:

  • This methodology is a retrospective analysis that uses the project schedule updates to quantify the slippage to the critical path during a select period of time;
  • Once all critical path activity delays have been quantified, the origins and causes of each delay are determined. The responsibility for each delay is then apportioned to either the Contractor, Owner, a third party, if appropriate, and to force majeure or other excusable delays defined by the contract.

Steps For Performing:

  • Select schedule windows;
  • Identify the critical path;
  • Perform a detailed review of the schedules selected for the analysis;
  • Determine the changes made between the schedules selected for the schedule windows;
  • Develop variance tables to calculate date and duration variances;
  • Research activity impacts and allocate responsibility for delays.

Time Slice Windows Analysis Illustration:

The figure below illustrates how the Time Slice Windows Analysis method work. In the first window, the delay is quantified by comparing the planned finish date and the actual finish date of Activity A.

Typical Delay Analysis methods in a Construction Claim-2
Time Slice Windows Analysis Illustration

2. Time Impact Analysis

What is Time Impact Analysis:

Time Impact Analysis is a schedule delay analysis technique that adds delays or changes to the schedule which are updated up to the day before the delay occurred.

The Purpose of the Analysis:

  • To determine whether the overall completion date of the project is delayed, or remains the same as a result of the delays;
  • To demonstrate a Contractor’s entitlement to a time extension;
  • To demonstrate a potential schedule acceleration;
  • To demonstrate an Owner’s entitlement to receive liquidated damages.

Steps For Performing:

  • Develop a fragnet to model the delay;
  • Obtain the approved schedule which is updated up to the day before the delay occurred;
  • Insert the fragnet into the approved schedule update and link to the impacted activities;
  • Recompute the schedule and note a change in the project completion date;
  • Determine the amount of project delay.

Time Impact Analysis Illustration:

The figure below illustrates how the TIA method work. After identifying the right Monthly Project Schedule, the delay is added to the schedule to impact the project completion date. The variance of project completion date between the Monthly Project Schedule and the Time Impact Schedule is the Time Extension.

Typical Delay Analysis methods in a Construction Claim-3
Time Impact Analysis Illustration

3. Collapsed As-Built / As-Built But-For Analysis

What is Collapsed As-Built Analysis:

Collapsed As-Built Analysis is a retrospective schedule delay analysis technique that determines the earliest date that the project completion date, or a required milestone could have been achieved but-for the owner-caused / contractor-caused delays that occurred during the project.

The Purpose of the Analysis:

  • To determine the compensable time extension by taking into account the concurrent delay situation;
  • The Collapsed As-Built Analysis that removes contractor-caused delays is used to determine the time period between the actual completion date and the Collapsed As-Built completion date for assessment of liquidated damages by the owner.

Steps For Performing:

  • Develop a model of the as-built schedule, which is called the As-Built Calculation Schedule;
  • Identify the owner-caused or contractor-caused delay;
  • Interpret the results of removing delays from the As-Built Calculation Schedule.

Collapsed As-Built Analysis Illustration:

The figure below illustrates how the Collapsed As-Built Analysis method work. The As-Built Calculation Schedule incorporates both owner-caused and contractor-caused delays. The period between the As-Planned Schedule and the As-Built Calculation Schedule is “Overall Time Extension”. After removing the Owner-caused Delay, the As-Built Calculation Schedule completion date collapses to an earlier completion date. The period between the As-Built Calculation Schedule and the Collapsed As-Built Schedule is the “Time Extension caused by the Owner-caused Delay”.

Typical Delay Analysis methods in a Construction Claim-4
Collapsed As-Built Analysis Illustration

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a website or blog at WordPress.com

Up ↑