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Collaborative Construction Scheduling:
Eight Steps to Success
By Charles E. Bolyard, Jr., PSP, CFCC
Chairman of the Board & Chief
Executive Officer
McDonough Bolyard Peck
In today's ever-changing and increasingly complex construction environment, delay costs and claims are more than ever a significant threat to overall project success. MBP believes that a collaborative approach to construction scheduling goes a long way to reducing and effectively managing the risks associated with delays. We recommend eight essential steps for achieving successful scheduling collaboration.
 Specify in the contract a thorough methodology for scheduling and delay analysis.
The first step is to adequately address scheduling for the project in the contract. This sets the ground rules for everyone involved. Obviously, scheduling mechanics such as cost and resource loading requirements or CPM software preferences need to be known at the outset, but this is also a great opportunity to resolve potentially sensitive issues like float ownership and early finish schedules. We also recommend specifying the development of the as-built schedule within the schedule reporting requirements. Often overlooked, the as-built schedule is a critical delay analysis tool that can be developed far more cost effectively during the course of a project rather than having a claims consultant reconstruct it after the project is completed and those with the best knowledge have moved on. Finally and most importantly, the scheduling specification should include the specific method by which delays will be reviewed and provide support for extensions of time to the contract duration.
 Include in the contract the methodology for cost analysis.
In addition to the time, the contract must speak to the cost elements associated with that time. Excusable and inexcusable delays should be defined especially in terms of the application of liquidated damages. Compensability of delays should be addressed to include what types of home office overhead and field overhead costs will be allowed. Similarly, the contract needs to detail allowable costs associated with the recovery of delay such as premium time for labor and expediting material deliveries. Concurrent delays and the resultant impact upon compensability should be clearly defined as well.
 Mandatory scheduling resources from start-to-finish.
To make the schedule truly work to the benefit of the project, there needs to be a commitment from the top down through each of the parties' organizations. This means adhering to one schedule for the project. It also includes providing the necessary people, dollars and software to ensure a successful scheduling effort by all project participants. Project managers must stay involved with the scheduling and take ownership of the schedule. Dedicated scheduling staff should have experience in similar project work, schedule preparation and updating, and delay analysis.
 Comprehensive scheduling effort.
Once there is the commitment of resources, everyone must then follow through with the application of those resources. Crucial to the scheduling success of the project is the development of a valid baseline schedule. The baseline should be complete to include all of the contract work as well as all interim and final completion dates/milestones. The detail of the schedule should match the complexity of the project, yet be manageable to meet the needs of the project staff. The schedule should be realistic reflecting access, logistics, seasons, multiple work areas and long lead items while providing sufficient time for contractor, owner and designer actions. Finally, specialty work items need to be accurately represented to include start-up, testing, commissioning and training in systems operations and the necessary technology interfacing between computer systems, climate controls and security systems.
 Timely and accurate Updates.
Once you have a good baseline CPM schedule, it is important to apply the effort into maintaining a useful scheduling tool. Actual start and finish dates for activities need to be documented in the daily records as well as any interim starts and stops. Actual logic and sequences should be tracked and the resources used should be noted. We recommend developing a joint acceptance procedure where data is agreed to by the parties. If possible, agree on which impacts are to be included and excluded, and check against current forecasts. At the very least, the parties should be able to agree on when things happen, if not why, and this will go a long way to managing the risks of increased costs.
 Resolve delays on a regular (quarterly) basis.
This may be the most essential step in mitigating potential delay claims. Meeting on a regular basis throughout the life of the project to resolve delays, time extensions and costs of delay or recovery is the key since this will not allow issues to fester and perhaps take on a life of their own. The parties should follow the established protocol for analyzing delays to include the formal submission of delays and the method of analysis. In general, it will be necessary to have a viable, approved baseline and updates agreed to by the parties that accurately reflect the status of actual construction progress. The project team should bundle quarterly issues as necessary, verifying the remaining work duration and logic including all approved changes. There should be a joint sign-off on the analysis, agreeing to extensions of time or plans for recovery from delays. Documentation for any change orders will include this agreed-to schedule analysis and should address both time and money. At the very least, coming out of these quarterly meetings there should be an agreement of what actions will be taken by the parties: e.g. is the contract duration to be extended or is the delay to be recovered? Are rights being for time/money or LDs?
 Use Third Party consultation if needed.
So what if you reach stalemate? We recommend jointly obtaining a non-binding independent opinion on the disputed issues. This can be in the form of a pre-appointed Project Neutral, a Dispute Review Board (DRB), an independent expert or a mediator. Whatever the approach chosen, the key is to hold to a firm schedule for third-party analysis and recommendations. This will include agreeing on the scope of issue briefs and documentation, and allowing appropriate discovery and legal input. We suggest dealing with entitlement first, then damages if disputed. Above all, it is critical to get the buy in from the top level decision makers for each of the parties involved.
 Resolve delays when you closeout the contract.
The time and money involved with delays can be as important as the project punch list, and is usually much more difficult to resolve. Delay analysis and time-related costs must therefore be jointly approached with resources, commitment, and good faith. It may be necessary to utilize outside resources to get an independent and fresh view of the remaining disputed issues, especially if there is a consolidated impact claim. One additional resource at the end of the project is the availability of as-built performance data for a comprehensive independent analysis. The parties are no longer dependent on the schedule update forecasts. While there may be serious problems to face in resolving schedule delay disputes, they will only become worse if the project participants are not able to resolve them and matters move into formal dispute resolution.
Remember...
In conclusion, while following these eight steps will provide a more collaborative approach to scheduling your projects, always remember that scheduling, like cost estimating, is as much an art as a science. Scheduling is dependent on experience, judgment, and reasonable assumptions. In the analysis of delays, the CPM computer software can be a useful tool but is no substitute for knowledge of construction, project experience, detailed research, thoughtful evaluation and clear presentation. Any successful negotiation requires give-and-take whether it's over the price of a change order or for a contract time extension.
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