Concurrent Delays
Introduction:
Concurrent delays are a common occurrence in construction and other contractual projects. They can significantly impact project timelines, costs, and contractual obligations. Therefore, it is crucial for contract managers and project stakeholders to understand what concurrent delays are, how they are calculated, and their importance in contract management.
What are Concurrent Delays?
Concurrent delays occur when two or more events, typically caused by different parties, cause delays on a project simultaneously. These delays can impact project schedules and contractual obligations. Identifying and accurately assessing concurrent delays is essential for fair contract management, risk assessment, and dispute resolution Methods for Determining Concurrent Delays.
Advantages and Disadvantages of Concurrent Delays:
a) Contractor's Perspective:
Advantages:
– Contractors can claim for additional time and compensation due to concurrent delays.
– May help protect contractors against liquidated damages and potential financial losses.
– Can provide an opportunity to renegotiate pricing or terms in the contract.
Disadvantages:
– Can strain contractor-client relationships and lead to disputes and legal battles.
– Delayed project completion can impact future project opportunities.
– Extra resources and management may be required to handle concurrent delays, increasing costs.
b) Client's Perspective:
Advantages:
– Provides clarity and allocation of responsibility for project delays.
– Potential for renegotiation of contract terms and pricing.
– Allows clients to better manage financial expectations and adjust project deliverables.
Disadvantages:
– Potential impact on reputation and potential future business opportunities.
– May lead to additional costs or claims from contractors due to concurrent delays.
– Can result in loss of revenue or delayed occupancy for commercial projects.
Analyzing Concurrent Delays:
To effectively deal with concurrent delays, a thorough analysis is required. This analysis involves:
1. Impacted As-Planned Analysis:
Explanation: The impacted as-planned analysis involves comparing the original project schedule (as-planned) with the actual progress to identify delays caused by various parties, including the contractor and external factors. The goal is to evaluate how these delays intersect and collectively contribute to the project’s extended timeline.
Process:
(i) Develop the initial project schedule outlining the planned timeline for activities.
(ii) Document all delays as they occur, indicating the causes and durations.
(iii) Compare the as-planned schedule with the as-built progress, considering all delays’ impacts.
(iv) Analyze how delays from different sources intersect and prolong the project duration.
Strengths: Provides an overview of cumulative delays and their impact on the project timeline
Limitations: Assumes that the as-planned schedule accurately reflects the project’s intended progression.
2. Impacted As-Built Analysis:
Explanation: Impacted as-built analysis involves reconstructing the as-built schedule, considering all delays’ effects, irrespective of their sources. This method provides a comprehensive view of how all delays, including concurrent ones, have impacted the project
Process:
(i) Document each delay’s causes, start dates, and durations.
(ii) Reconstruct the project’s as-built schedule by integrating the actual progress with delay effects.
(iii) Analyze the cumulative effect of all delays on the project’s timeline.
Strengths: Offers a detailed perspective on the combined impact of all delays, regardless of their origin.
Limitations: Requires meticulous documentation and may be time-consuming if records are incomplete.
3. Time Impact Analysis:
Explanation: Time impact analysis isolates the delay caused by a specific event or condition and evaluates how it interacts with other delays, including concurrent ones. This method is valuable for determining the precise impact of individual delays.
Process:
(i) Identify the specific event causing a delay (e.g., labor strike, material shortage).
(ii) Calculate the delay’s duration and impact on affected activities.
(iii) Analyze how this individual delay intersects with other concurrent delays and assess their combined effect.
Strengths: Provides a granular understanding of how individual delays interact and contribute to overall project delays.
Limitations: Requires a deep understanding of each delay’s causes and effects
Case Studies:
Case Study 1: In a bridge construction project, unfavorable weather conditions led to a 30-day delay, while a design modification resulted in an additional 15-day delay. Applying impacted as-planned analysis, it was determined that both these delays occurred concurrently, extending the project timeline by a total of 45 days.
Case Study 2: In a high-rise building project, a labor strike caused a 20-day delay, and unexpected ground conditions led to a 10-day delay. By using impacted as-built analysis, it was revealed that the combined impact of these concurrent delays was an extension of 30 days to the project timeline.
Case study 3: In a software development project, the client requests significant changes to the project’s scope (an inexcusable delay) while the development team faces unexpected technical challenges (an excusable delay). The project’s timeline is extended due to concurrent delays, and both the client and the development team share the responsibility for the delay.
Real-Life Examples:
To illustrate the significance of concurrent delays, let’s look at two well-known construction projects:
(a) The Sydney Opera House, Australia:
During the construction of this iconic landmark, concurrent delays such as design changes, labor strikes, and complexities in construction methods led to extensive delays and cost overruns. The project, originally estimated to be completed in1963, was finally completed in1973. The delays resulted in damaged relationships and financial losses for both the contractor and the client.
(b) Boston’s Big Dig: This extensive highway project faced concurrent delays due to unforeseen geological challenges and disputes with contractors, leading to a prolonged timeline and substantial budget overruns.
(c) The Panama Canal Expansion: Delays due to labor strikes, geological challenges, and design changes led to a substantial concurrent delay, resulting in a significant budget overrun.
(d) Cross rail Project, London, UK:
Concurrent delays caused by unexpected ground conditions, design issues, and other external factors led to significant delays and a substantial cost increase in the construction of the Cross rail project. The original budget of £14.8 billion escalated to over £18 billion, and the completion date was postponed from December2018 to an estimated opening in2022. These delays resulted in reputational damage and financial burdens for all parties involved.
Recommendations for Managing Concurrent Delays:
Managing concurrent delays in construction projects is a multifaceted challenge that requires contract managers to adopt a strategic approach. The methods discussed – impacted as-planned analysis, impacted as-built analysis, and time impact analysis – provide valuable tools for contract managers to navigate through the complexities of concurrent delays.
When dealing with concurrent delays, contract managers should:
a) Proactive Communication:
Establish clear lines of communication between all project stakeholders to ensure timely collaboration, transparency, and efficient decision-making.
b) Realistic Scheduling:
Develop a realistic project schedule from the start, accounting for potential concurrent delays and allowing buffer time for unexpected events.
c) Diligent Documentation:
Maintain thorough and accurate documentation of all project activities, events, and changes. This documentation is invaluable in analyzing concurrent delays and allocating responsibility appropriately.
d) Expert Analysis:
Engage professionals with expertise in delay analysis to objectively assess the concurrent delays and provide a clear understanding of the responsibility and impact.
e) Experienced Project Management:
Assign experienced project managers who can anticipate, mitigate, and manage concurrent delays effectively while maintaining clear communication with all parties involved.
Conclusion:
Concurrent delays are a complex yet inevitable aspect of construction projects. For contract managers, accurately calculating concurrent delays is essential to ensure fair compensation, maintain project efficiency, and avoid disputes. The methods discussed – impacted as-planned analysis, impacted as-built analysis, and time impact analysis – offer distinct approaches to assessing the effects of concurrent delays. By leveraging these methods based on project characteristics and data availability, contract managers can navigate the intricate landscape of concurrent delays and contribute to successful project outcomes.