Early Completion Schedule Contingency Ownership Considerations
AACE International
North Florida Section
Thursday, May 12th, 2022
Abstract: This paper was initiated by a situation encountered on a large institutional project. The owner stipulated a finish on or before contractual completion date. To gain a competitive cost advantage, during the bidding process, the contractor planned their work to be completed three (3) months early. However, there was no mechanism in the bidding process, such as the requirement for a bid schedule, to identify this condition. As work started the contractor’s schedules were compliant with the contract requirements and consistently showed a construction completion date three (3) months earlier than the contractual “Finish No Later Than” completion date. Late in the project, the owner issued changes which required the contractor to be on site after their anticipated construction completion date, but still prior to the final contractual completion date. The contractor put forward a request for additional compensation for the additional time on site, the period between their planned completion and their extended actual completion date.
This presentation reviews the issues raised by this situation including ownership of project float, ownership of earned contingency, and contract risk allocation. The paper also investigates the current recommended practices, legal remedies, and provides some alternative contracting solutions to deal with similar issues on future projects.
Speaker: Michelle L. McMillan, P. Eng.
Michelle McMillan, P. Eng. is a Director with Driver Trett Canada with over 25 years experience producing and evaluating construction claims for negotiation, mediation, arbitration, and litigation on commercial, large scale residential, infrastructure, institutional and industrial projects in Canada, the United States, the Middle East and Asia. Michelle has worked with contractors, owners, government agencies and non-profit agencies. Michelle has specialized skills in schedule creation, monitoring, and forensic delay analysis.
Michelle has been qualified as a testifying expert for construction claims. Michelle has also functioned as a third party neutral, expert evaluator in construction disputes and assisted in the evaluation and completion of troubled projects. Michelle is a faculty member of the Project Management Certificate program at the University of Calgary, specializing in teaching project controls, claims avoidance, and claims quantification, including delay analysis.
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