Preparing & Analyzing a Prospective

Contemporaneous Time Impact

AnalysisAugust 9, 2007

Chris Carson, PSPProject Controls Manager

Alpha Corporationchris.carson@alphacorporation.com

Mark Boe, PE, PSPVice President

Capital Project Management, Inc.mboe@cpmiteam.com

The information in this presentation or publication was developed and prepared by the authors for the purpose of education about the subject. This presentation or publication does not necessarily reflect the views of the Construction Management Association of America or constitute a position or policy of the Construction

Management Association of America (CMAA). This material was presented with the permission of the authors and is subject to copyright under applicable law. The

information contained herein is presented as descriptive of issues related to the subject at the time it was presented, but it has not been peer reviewed or approved by CMAA. No part of this presentation or publication is to be reproduced or used without written permission from the author and CMAA.

Introduction & Summary

� A Time Impact Analysis (TIA) is the best methodology for determining the extent of impact

from a potential delay event.

� When done in a prospective, or forward looking, manner, a TIA can promote negotiation and

ultimate settlement of any ramifications of a delay event.

� Performing a “Time Impact Analysis” has a reasonably industry-wide definition.

Participant Expectations

� Understand the terminology

� Understand the difference between

contemporaneous forward-looking

prospective and backward-looking

retrospective analyses

� Recognize the importance and power of a TIA

� Learn how to prepare a TIA

� Learn how to analyze a TIA

Industry Definition of Time Impact

Analysis

� The Best Industry Publication

� AACE International Recommended Practice No.

52R-06

� TIME IMPACT ANALYSIS – AS APPLIED IN

CONSTRUCTION

� Developed by a team of scheduling and dispute

resolution professionals

� “Provides guidelines for the project scheduler to

assess and quantify the effects of an unplanned event

or events on current project completion”

Industry Definition of Time Impact

Analysis

� The Best Industry Publication

� AACE International Recommended

Practice No. 52R-06

� “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.”

Industry Definition of Time

Impact Analysis

� From CPM in Construction Management,

6th edition book by James O’Brien and

Fred Plotnick, “time impact evaluation -

Use of a fragnet or subnetwork to evaluate

the impact of an event such as a change of

order or unusual occurrence on the

baseline schedule; known as TIE. This is

also known as time impact analysis (TIA).”

Industry Definition of Time

(Impact) Analysis

� From US Department of Veteran’s Affairs:

“CPM Time Analysis on Contract Changes: The affect that changes or delays have on a CPM schedule is determined by a comparison of the schedules before and after the delaying activities are incorporated into the CPM Network.”

Time Impact Analysis Defined

� Contemporaneous Prospective� Performed to “look-ahead” during project

� Performed at moment of start of impact

� Called Contemporaneous Time Impact Analysis (TIA)

� Compare the predicted completion of the schedule just prior to the date of the “delay event” to the predicted completion of the schedule after inserting a fragnet of impact activities into the schedule

� Discussed in this webinar

Definition of Time Impact

Analysis

� Forensic

� Performed after the project or delay event

� Typically used in delay analysis in claims

� No industry standard name

� Retrospective, backward-looking

� Sometimes also called Contemporaneous TIA

since analysis is done from the beginning of

the impact even though it is analyzed after the

fact

� Discussed in a future webinar

Reasons for Use

� Sometimes mandated by specification

� Best way to evaluate expected impacts resulting from changed conditions

� Supports negotiation of time extensions due to changed conditions

� Enables sharing of risk

� Keeps project on track with accurate schedule

TIA Specification Language

Case-law & Industry guidance

� TIA methodology typically used and

supported in litigation

� Industry publications

� Construction Law Library – Construction

Scheduling, Liability & Claims, by Wickwire,

Driscoll, Hurlbut, Hillman

� CMAA – CM Standards of Practice (Construction

Phase, Monitoring Schedule Compliance)

� AACE Recommended Practice – noted earlier

Situations for Use of TIA’s

� Excusable delay events

� Late Notice to Proceed

� Undisclosed condition

� Unknown site conditions

� Request for Proposal

� Construction Change Directive

� Field Order

� Excessive predicted adverse weather conditions

� Hurricane

� Extended excessive hot or wet weather

� Verify schedule (the current schedule)

�Test for reasonableness

�Ensure schedule logic models the actual project sequencing

�Check for constraints

�If constraints exist, establish methodology

�Remove constraints, if possible

�Insert logic to replace constraints

�Verify accuracy of changes

�Document use of methodology

Preparing a TIA

How to Prepare a TIA, continued

� Update the current schedule

� Use update data through the date that will reflect the situationimmediately prior to the beginning of the changed condition

� Do not make any logic changes after the update

� Calculate the schedule

� Set Data Date immediately prior to the beginning of the changed condition (to match update data)

� Document the completion date

� Use a common activity such as Substantial Completion (preferable), or an Interim Milestone as necessary

� Use EF of the entire project

� Be consistent in choosing the comparison activity

How to Prepare a TIA, continued

� Identify the reason for preparing a TIA

� Changed condition

� Potential delay situation

� Other actions beyond Contractor’s control

� Create a copy of the reference schedule for

use in the analysis, so the reference

schedule can be used as a target

.

How to Prepare a TIA, continued

o Determine scope of work required to deal

with changed condition

� List assumptions

� Scope of work

� Manpower & resources

� Sequencing rationale

� Note any questionable assumptions

• Provide narrative detailing how work will be done

.

How to Prepare a TIA, continued

� Create fragnet of activities

� Estimate durations & document

� Determine appropriate connection points;

predecessors and successors (which activities are affected by the changed condition?)

� Insert fragnet with new logic connections

� AACE RP – “Set the duration of the delay

activities to zero and recalculate the CPM.”

.

Fragnet Example

Fragnet

Logic Connections

Before Rebar Shop Drawings Delay

(Original Schedule)

Description

Act ID

Early StartEarly Fin

ODTotal Float

After Fragnet Showing Impact of Delay in Rebar

Shop Drawings

Description

Act ID

Early StartEarly Fin

ODTotal Float

Fragnet Example

Logic

Connections

Fragnet

How to Prepare a TIA, continued

� Recalculate project

� Compare results to updated schedule completion dates prior to insertion

� Review Critical Path changes and shifts� Identify CP in schedule prior to TIA insertion

� Identify CP in schedule after TIA insertion

� Compare and review changes

� Write up conclusions

� Be prepared to discuss & defend

.

Typical TIA Report

How to Evaluate a TIA

� Review schedule� Reasonableness

� Logic models the project sequencing

� Constraints & methodology

� Verify use of correct schedule� Pre-impact schedule

� Secure copy of unimpacted schedule

� Updated to beginning of impact

� Represents work plan before impact

� The As-Planned (Baseline) Schedule should not be used unless there is no progress (no updates) and the CP has not changed to the beginning of the impact

.

How to Evaluate a TIA, continued

� Review scope of work related to the changed

condition

� Does it cover the changes?

� Is it only new or changed scope of work?

� Review assumptions & narrative

� Are assumptions reasonable?

� Are there inconsistencies with previous schedule?

� Check for concurrent delays

� TIA should take into account all delay events that

could affect completion

.

How to Evaluate a TIA, continued

� Review fragnet� Check durations

� Do they match staffing and production rates of activities prior to impact?

� Are they in keeping with durations in schedule?

� Check logic within fragnet, does it make sense?

� Verify fragnet calendars are consistent

� Review insertion points of fragnet� Verify that predecessors & successors are “correct”

� Verify that relationship types are correctly defined

� Verify that any lags between fragnet and schedule are defined and reasonable

.

How to Evaluate a TIA, continued

� Verify that the recalculation is done correctly� Check that correct Data Date is used

� Ensure that Progress Override is not changed to Retained Logic

� Verify differences between pre-impact schedule and TIA schedule� Run comparison software

� Review report to ensure that changes match TIA narrative and logic

� The schedules should be identical except for the added fragnets

.

How to Evaluate a TIA, continued

� Check slippage total, if any

• Verify consistency in comparison of completion

� Review Critical Path (CP)

� Identify CP in schedule prior to TIA insertion

� Identify CP in schedule after TIA insertion

� Compare and review changes

� Evaluate conclusions

� Note any challenges for negotiation purposes

.

After the TIA

� After TIA submittal & review

� Negotiate time extension, if any

� Document decision

� If justified, incorporate TIA into schedule

� Publish revised schedule with new completion

dates

� Provide change order showing settlement

� Ideally, TIA resolution should conclude any known delay issues or impacts to date

Incorporate TIA into Schedule

Benefits of Use of TIA’s

� Benefits to Owner� Participates in decisions that affect budget &

completion

� Can negotiate requests for time and costs prior to work

� Encourages cooperation

� No lingering potential claims issues

� Budget & completion information always current and reasonably accurate

� Allows Owner to take advantage of pacing opportunities

� Reduce or eliminate need for unilateral modifications

� Shares performance and cost risk

Benefits of Use of TIA’s

� Benefits to Contractor� Relatively simple analyses (compared to claims)

� Receives timely time extensions

� Builds good documentation (even if rejected)

� Allows negotiation prior to spending money or doing work

� Minimal memory problems compared to old issues

� Allows for pacing other trades

� Costs for TIA effort should be reimbursable

� Fair preparation of TIA builds credibility

� Builds in understanding of risk in pricing

Disadvantages of Using TIA’s

� Process takes scheduling personnel with more analytical skills and knowledge

� Some added time burden (but considerably less than building a claim)

� Less attorney and consultant revenue (only real disadvantage is to attorneys)

Questions?

Comments?

War Stories?

Preparing & Analyzing a Prospective Contemporaneous Time Impact Analysis

August 9, 2007

Chris Carson, PSP

Project Controls Manager

Alpha Corporation

chris.carson@alphacorporation.com

Paul Beckwith, PE, CCM

Director of Construction

Regency Centers

pbeckwith@regencycenters.com