Tracking The Schedule

1. Managing the Risk Associated with Construction Delays Presented byBill Whitt, PEMSI Universal, Inc. Tracking The Schedule

2. Construction Delays Working Definition: A construction delay is one in which the project completion is delayed beyond the original performance period of the contract or one which the completion is delayed beyond the contractor’s scheduled completion date in those instances where the contractor had demonstrated the intention of completing the project early

3. Excusable Delays An excusable delay is one that is caused by an event that is beyond the control of either party to the contract. These include weather delays, strikes, acts of God, etc. In these cases the contractor is granted a contract extension without additional compensation.

4. Sovereign Act Delays A Sovereign Act Delay is one which the contractor is prohibited from performing due to an action of the government acting in its sovereign capacity. These include such actions relating to an national emergency as occurred after 9/11, providing security for the nations leaders, evacuations ordered for the protection of life and property, etc. In these cases the contractor is granted a contract extension without additional compensation.

5. Compensable Delay • A compensable Delay is one in which the cause is solely due to something for which the government has responsibility, the delay is of an unreasonable duration and the delay has impeded the contractor’s progress of tasks on the critical path. Defective contract documents, changed site conditions or actions or inactions of the government which impede the contractor from performing work on the critical path are examples of Compensable Delays.

6. Concurrent Delay A concurrent delay is one in which the project delay is caused by the concurrent actions of both the contractor and the government. In such cases the delay must be apportioned to the two parties based on the relative impact of the parties to the delay.

7. Tools to Manage Delay Risks The Challenge Develop contract requirements and project management tools that properly measure progress, identifies delays and potential delays and assists in assigning responsibility, yet, are simple to use and do not impose an onerous and costly burden on the contractor or the government team.

8. Division 1 General Requirements Schedule • Require Critical Path Method (CPM) scheduling for all projects over $1 Million • Have A-E edit UFGS to fit ANG Processes and staffing • UFGS 01 32 01.00 10 PROJECT SCHEDULE • UFGS 01 32 16.00 20 CONSTRUCTION PROGRESS DOCUMENTATION (Projects < $1 Million) • UFGS 01 32 17.00 20 NETWORK ANALYSIS SCHEDULES (NAS) (Projects < $1 Million)

9. Division 1 General Provisions Schedule (Con’t) • Require the contractor and major subs to make oral presentation explaining the sequencing of the project and the logic of the schedule as part of schedule submission. • Require the contractor explain in detail the tasks on the critical path • Require contractor brief updates of the schedule at progress meetings

10. Division 1 General Requirements Schedule (Con’t) • Require the contractor to provide a Time Impact Analysis Report • For every proposed change order or contract modification • Any time the critical path of the project is more than 5% behind the approved schedule have contractor provide written report on how he intends to complete project on schedule • Provide updated schedule and copy of updated schedule disc at least monthly and as part of the payment application process

11. Division 1 General Requirements Progress Meetings • Require that meetings be held on regular basis, suggested every two weeks • Provide minimum required agenda • Require the contractor to brief progress using the approved CPM schedule as the basis of the briefing • Require the contractor to provide minutes of meeting for review within three days of progress meetings • Attach any required reports and CPM updated disc

12. Division 1 General Requirements Submittal Requirements • Limit Shop Drawing submittals to only essential items • Require A-E provide a Table of Required Submittals in Division 1 • For each submittal listed in Table provide: • Name of Item or System • Section of Specification showing requirement • Allowed review period by the Government

13. Approval of CPM Schedule Have Contractor and major subs provide an oral briefing of schedule as part of the submission requirements Have Type “C” A-E attend to provide “Professional Expert Review” and comments to the Contracting Officer Ensure logic passes the “Giggle” test Question all Items not fully understood Ensure the schedule does not exceed contract performance period

14. Approval of CPM Schedule Ensure shop drawing submittals and reviews are shown Ensure schedule reflects adequate time for required Governmental actions including quality assurance testing Ensure schedule reflects required closeout items, final commissioning and training Be extremely cautious if schedule does not reflect full performance period

15. Progress Meetings • Agenda – What must be presented? • See Following Slides • Who should attend? • All stakeholders • Who is responsible to chair the progress meeting? • Contractor – It is his progress/not the Government’s

16. Progress Meetings • Who is responsible for recording the minutes? • Contractor – It’s his meeting • Who is responsible for reviewing the minutes? • Contracting Officer, COR and A-E review for accuracy and completeness • How often will the meetings be held? • Normally every two week on same day

17. Progress Meeting Agenda • Attendance sign-in form • Review Minutes of last meeting • Action items from previous meeting • Progress Schedule (See next slides) • Site observation reports • Personnel and prosecution of the work (number of personnel and what were they doing briefly) • Project testing log • Quality Issues Discussion • Safety report from the contractor

18. Progress Meetings • Progress Schedule • Review prior two week planned activities • Prior two week performance – # of workers and work performed • Discussion of differences between planned and actual progress • 2 week look ahead • Critical Path Schedule • Current Schedule Update • Critical Path Activities • Current Anticipated Completion Date • Next Schedule Update

19. Progress Meetings Progress Schedule • Critical Delays (work on critical path) • Any delays since the last meeting? • Current or Potential Delays • Excusable – weather –unusually severe • Non-Excusable • Contractor caused • Government caused • Concurrent?

20. Progress Meetings Progress Schedule • Non-Critical Delays (work NOT on critical path) • Any delays since the last meeting? • Current • Potential

21. Progress Meetings • Time Extensions • Requests by Contractor • Compensable • Granted • Pending • Non Compensable • Granted • Pending

22. Progress Meetings Progress Schedule • On schedule? • Behind schedule? • Cause of delay(s)? • How can we recover and do we need a revised schedule?

23. Progress Meetings Discuss and clarify the following question: “Is there any action that the government has taken or has failed to have taken that has caused a delay or that has the potential to cause a delay to the project?” • Provide a discussion in the meeting minutes

24. Progress Meeting Minutes • Contractor Prepares Minutes • Include all pertinent schedule information discussed • Prepared schedule reports should be included as attachments • Updated CPM disc should be attached if not delivered in the Progress Meeting • Provide statement on government actions that have caused a delay

25. What About Small Projects? • Schedule required on all projects 60 days or more • Probably not require full CPM schedule • Should have regular scheduled progress meetings • Focus Progress Meetings on Progress and schedule

26. What About Small Projects? Document and resolve all delays Ask question on if the government is causing delay Have Contractor provides minutes of meetings

27. Daily and Follow Up Actions • Keep a Daily Inspector’s Log • AF IMT 1477 (Blue Book) • www.e-publishing.af.mil • Note the weather and note if weather prohibited any scheduled activity • Count workers on site and note trade • Have A-E make reports on all site visits

28. Daily and Follow Up Actions • Keep log of all delays • Note responsible party • Track length of each delay and cumulative total • Make appropriate contract modifications • Define any contract extensions required • Have contractor sign a Release of Claim • Adjust Schedule Baseline to reflect major Contract Modifications

29. How to Get Help NGB Advisory Services Contract Support Contract funded by NGB/A7O with MSI Universal, Inc through the ND USPFO and CETSC Minot Assistance provided at no cost to Units Simply call or email one of contract team members

30. How To Get Help Tom Coleman 785-422-3686 or 785-608-0684 tomc@msiuniversal.com Gary Heidle 703-582-7387 whcgary@gmail.com garyh@msiuniversal.com Bill Whitt 301-870-0919 or 301-385-6118 billw@msiuniversal.com

31. Summary • Defined types of delays • Discussed Division One Requirements • Schedule • Progress Meetings • Review and Approval of Project Schedule • Conducting Progress Meetings • Progress Meeting Minutes • Small Projects • Follow-Up Actions