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  • 1.  How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 25 days ago
    Edited by Muluken Kelemu 25 days ago

    Delays are a common source of disputes and arbitration in the construction industry. Construction companies can face significant financial losses if they become involved in lengthy legal proceedings. The most effective way to prevent disputes is to proactively negotiate changes and address issues in real time. However, delay analysis can be challenging for several reasons. Without robust methodologies, reaching a mutually agreeable solution can be difficult, especially when things go wrong.

     

    We appreciate your reflections on "How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?"



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    Muluken Kelemu
    Project Controller
    Beca
    Auckland
    muluken.kelemu@beca.com
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  • 2.  RE: How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 25 days ago

    Hi Muluken,

    Thank you for this important topic. From your perspective and from AACE Recommended Practices,  What are the best ways to anticipate such Schedule Delays and being ready to any similar disputes?

    Many thanks in advance.

    Kind regards,

    Hisham Osman



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    Hisham Osman
    Senior Associate- Project Management
    Beca
    Auckland
    hishamharoun@yahoo.com
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  • 3.  RE: How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 22 days ago
    Hi Hisham,
    "From my perspective, accurate and periodic updates to the project schedule are critical. Regular updates help track progress and quickly identify any deviations from the plan, allowing for timely corrective actions before delays become significant.
    In addition, monitoring and updating the risk and issues log periodically is essential for identifying potential risks or delays early on. By continually assessing risks and documenting issues as they arise, the project team can anticipate disruptions and implement mitigation strategies proactively.
    When delays do occur, performing a forensic delay analysis is crucial. This analysis helps determine the root cause of the delay and identifies the responsible party. By utilizing recognized delay analysis methods, such as Time Impact Analysis or As-Planned vs. As-Built analysis, it's possible to attribute delays to either the owner or contractor, ensuring that disputes are resolved fairly and in accordance with contract terms."

    Regards,
    Kosai
    -----------------------------------
    Senior Planning Engineer at BEC,
    PhD Candidate in construction management at AUT, Auckland





  • 4.  RE: How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 23 days ago
    Edited by Cristina Luces 23 days ago

    Interesting topic! I believe it's crucial to streamline communication through regular updates and thorough documentation. Implement a robust change management process, use real-time tools and Earned Value Management (EVM) to track progress, and foster a collaborative environment among stakeholders.

    As Hisham mentioned, it will be good  to  understand and share AACE Recommended Practices around facilitate fair entitlements.

    Thanks



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    Cristina Luces
    Senior Project Manager
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  • 5.  RE: How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 20 days ago

    Hi Muluken,

    Thanks for raising the discussion. My reply is based on AACE Recommended Practice "45R-08:Scheduling Claims Protection Methods", which I find a very useful resource and reference in the subject matter.  I also refer to Jim O'Brien and Fred Plotnick in the introduction of their 5th edition book CPM in Construction Management, where they state that "There are No Winners in delay". My viewpoint is that schedule delays are almost inevitable in every project; The key challenge is minimizing the impact of those delays and avoiding counter-productive claims between project parties. Below are the key aspects needed to help schedulers and project managers better understand the project delays and agree on an effective mitigation strategy for the best interest of the project's timeline.

    • Read and fully understand the project contract and its provisions for the programme of works and Extension of Time
    • The baseline schedule should define and set the time for the integration of different trades and disciplines and interface milestones between different parties.
    • Schedule Management and Control procedures should be kept and maintained. Schedule updates and records should be accurate and reflective of the contemporaneous project's progress and the critical path of activities impacting the project's completion.
    • Schedule Reviews: The baseline schedule and the monthly schedule updates should be reviewed, discussed, and agreed between parties. The baseline schedule and its updates then serve as the reference point for any delay and can be used effectively to allocate delay responsibilities.
    • Schedule Change Management: Scope Changes, Variations, and Design changes should be regularly assessed for time impact and integrated into the project schedule through a controlled schedule change process that is defined and agreed between parties.
    • As-built schedule: An as-built project schedule should be provided to validate project records and officialize the completion of important project milestones and, subsequently, its substantial completion.



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    Khaled Diaa
    Senior Planner/Scheduler
    Turner & Townsend
    Auckland, New Zealand
    khaledhesham88@hotmail.com
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  • 6.  RE: How can we proactively address changes and allocate responsibility for delays in real time to facilitate fair entitlements?

    Posted 8 days ago

    The key aspects are well articulated Khaled. 

    It must all start with a plan - without a master schedule using the common WBS for all of the project outputs (that any contract schedule feeds into) there's no way of measuring progress objectively, so delays are only seen in the rear-view mirror. 

    When we have a comprehensive baseline schedule that is being proactively managed with tools like early warnings and managing schedule contingency effectively, we can plan our way out of or even around the issues. Cristina's point of communication is well made - when done well there is an underlying culture of co-operation and alignment of critical success factors. 

    I'd also take a further step back and highlight the need for a set of integrated management plans to provide the why and how each of the controls are implemented - Change (Baseline), Budget & Cost, Schedule and Risk & Issues build the foundation for success - this provides that platform for communication in providing a common understanding.



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    Gary Jerome
    Technical Director - Risk
    Christchurch
    gary.jerome@aecom.com
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