1
Project Time Management
Institute for Facilities Management
Course Objectives
Explore the challenges with managing a campus project schedule
Review industry practices and contractual issues
Discuss incentive clauses
Outline
1. Project Time Management2. Design Time Management3. Construction Time Management4. Contractual Incentives
2
Project Time Management
Managing project timelines in a campus environment is particularly challenging
Campus Challenges
Immovable completion datesCompressed and restrictive
construction windowsProjects requested late
Campus Challenges
3
Project complexityFunding processPermitting process
Campus Challenges
Board/administrative/regulatory approvalsDecision-making processNumber of people involved
Campus Challenges
Basic Goals of a Project
Lowest Cost
Highest Quality
Shortest Time
4
Competing Goals
Shortening the schedule usually drives up cost and/or lowers quality
Insufficient Design Time
Reduces the opportunity for optimizing value and lowering project expenses
Lowers the quality of the design documents leading to higher bids and change orders
Insufficient Construction Time
Drives up bids in covering acceleration costs and higher risks
Limits the amount of time available for quality workmanship
Reduces competition
5
Prioritizing Goals
A project without sufficient time has lessened the importance of the cost and quality goals to time
Design Time Management
Time is a Finite Resource
The time allotted for construction is inversely proportional to the time taken for design
6
Time is a Finite Resource
Design Phases
ProgrammingDetermines and describes the facility needs
Schematic DesignDetermines the scale and
relationship of the project components
Design Phases
Design DevelopmentFixes and describes the size and character of the
entire project and building systems
Construction DocumentsDetails the project for
bidding and constructingpurposes
7
Building the Pyramid
Designing is a process of building upon decisions...like blocks in a pyramid
Decisions (the building blocks) must be timely or the building process halts
Design Schedules Crash…
…when decisions are made or changed in the wrong phase of design; effectively dismantling the decision pyramid
Project Team Orientation
Clients and decision-makers need to understand and work with the discreet phases of design
8
ConstructionTime Management
Construction Schedule
The schedule is the project team’s tool for managing construction time
Construction Schedule
Select an appropriate scheduling tool for the project
9
Critical Path Schedules
Critical Path Schedules
Early Start & Early Finish
Late Start & Late Finish
Float
10
Critical Path Schedules
Float is defined as the time between the earliest possible completion of an activity and the latest required completion
Most activities have float time
Critical activities do not have float time
Critical Path Schedules
The delay of a critical activity will cause an equal delay in the project’s completion
The sequence of critical activities from start to finish is the critical path
Look-Ahead Schedules
11
Scheduling Considerations
Seasonal timingManpower availabilityLong lead items
Building in extra lead time allows time for...…shop drawing approval…long delivery items…planning the execution of the work
Scheduling Strategies
Time Extensions
A time extension is warranted only if an excusable or compensable delay impacts the critical path
12
Schedule Delays
Non-excusableExcusable (Non-compensable)Compensable
Non-Excusable Delays
Contractor’s Fault
Poor planning, rework, insufficient manpower, poor management, late deliveries, etc.
Excusable Delays
Nobody’s Fault
Weather delays, strikes, acts of God, etc.
Non-compensable
13
Compensable Delays
Owner’s (or A/E’s) Fault
Scope changes, design errors, etc.
Schedule Management
Key to successful schedule management is early recognition and response to delays
Contractual Strategies& Incentives
14
Bidding Strategies
Phase the construction
Direct purchase long lead items
Bid an alternative schedule
Contractual Requirements
Specify owner’s rights and contractor’s duties related to schedule delays
Schedule Incentive Clauses
Three types:• Actual Damages• Liquidated Damages• Bonus/Penalty
15
Actual Damages
Owner seeks reimbursement for damages actually incurred by the delay
Open-ended risk to contractor
Difficult to ascertain, burden of proof lies with the owner
Liquidated Damages
Eliminates arguments over valuation
Less risk for the contractor
Must be a reasonable projection of damages
Liquidated Damages
Limits the amount owner may collect
Need not be damaged to collect
Contractor may build damages into the bid
16
Bonus/Penalty Clause
Penalty must be balanced by a bonus
Provides contractor with a positive incentive
Summary
Prioritize the project goals of cost, quality, and time
Recognize the discrete phases of the design process and manage the decision making process accordingly
Utilize contractual strategies as inducements and incentives for the contractor to meet the project schedule
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1/7/14
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1/26/14
Con
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XX
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pres
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test
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on n
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line
s ov
er to
the
Art
Stu
dio
build
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XX
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el o
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XX
XX
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tart
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ting
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the
grou
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XX
XX
XX
XX
Cen
tenn
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Con
trac
tors
Form
and
pou
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ion
wal
ls a
cros
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XX
Bac
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foun
datio
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alls
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oss
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XX
XC
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XX
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the
build
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X
XX
Bac
kfill
the
foun
datio
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alls
on
the
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XX
Dig
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in th
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XX
XX
XX
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XX
XX
XX
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XX
X
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XX
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XX
XX
X
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