SCHEDULE UPDATING

1. SCHEDULE UPDATING What is one of the Major Reasons that the majority of Contractor Claims fail?

2. SCHEDULE UPDATING What is one of the Major Reasons that the majority of Contractor Claims fail? • The inability of the Contractor to convincingly prove the significant impacts that the Owner’s Actions had on its Original Plan for accomplishing the Project.

3. SCHEDULE UPDATING What Approach/Method do most Contractors attempt to use to convince a Judge or Jury as to why they deserve to “Win” their Claim?

4. SCHEDULE UPDATING What Approach/Method do most Contractors attempt to use to convince a Judge or Jury as to why they deserve to “Win” their Claim? • Excessive Costs Incurred • They bid it for $XX and it cost them $XXX to do it • What’s wrong with this Reasoning?

5. SCHEDULE UPDATING Claim Justification Reasoning? • Did it cost the Contractor more to do the work because: a. The Owner impacted the Contractor or b. because the Contractor was Inefficient and/or Incompetent

6. SCHEDULE UPDATING Construction Contract Law constantly evolves as new cases are resolved, thus creating new legal precedents. Judges and Owner’s Attorneys are becoming increasingly aware of the irrefutable facts that Construction Schedule documents provide, but -

7. SCHEDULE UPDATING - The Converse is equally damning: • The Lack of periodic Schedule Updates deprives Contractors of irrefutable evidence of how the Owner’s Actions, Inactions, and Changes doomed the timely and successful completion of the Contract work.

8. SCHEDULE UPDATING How long ago was the first claim denied due to Contractor failure to keep the Schedule updated?

9. SCHEDULE UPDATING How long ago was the first claim denied due to Contractor failure to keep the Schedule updated? • 1987 – Santa Fe Construction, Inc. • “submission of proof based on revised activity logic durations and cost is obligatory to any approvals”

10. SCHEDULE UPDATING Too often, Contractors do not perform accurate contractually required Schedule Updates, and when Problems develop that create significant time or moneyimpacts – we do not have irrefutableevidence to Justify a totally legitimate Claim.

11. SCHEDULE UPDATING Prophesy: Within the next 10 years, there will be a time when each one of you regret the fact that you do not have accurate, historical Schedule Updates to justify impacts that cost your Company money that your Company is truly entitled to receive.

12. SCHEDULE UPDATING What are the three Purposes of periodic Schedule Updates?

13. SCHEDULE UPDATING What are the Purposes of periodic Schedule Updates? • Track Schedule Progress

14. SCHEDULE UPDATING What are the Purposes of periodic Schedule Updates? • Track Schedule Progress • Predict Project Completion

15. SCHEDULE UPDATING What are the Purposes of periodic Schedule Updates? • Track Schedule Progress • Predict Project Completion • Create a Historical Record of the Project

16. SCHEDULE UPDATING • Track Schedule Progress • What work has been completed to date – what’s ahead or behind • Progress Payments depend on the amount of work completed • Compare Actual Production with the PlannedProduction

17. SCHEDULE UPDATING 2. Predict Project Completion • Will the current status allow completion by the required date? • What changes have to be made to previously planned material delivery dates, Sub start dates, etc. • What manpower will be required – more, less, stay-the-same

18. SCHEDULE UPDATING • Create a Historical Record • What has changed since the last update? • What impacts has the weather had on the Job? • What impacts has the Owner’s Actions, Inactions, and Changes created to the Schedule

19. SCHEDULE UPDATING FACT: Schedule Updates are meaningless without a solid, comprehensiveBaseline Schedule to build on.

20. SCHEDULE UPDATING How Frequently do you need to Update a Schedule?

21. SCHEDULE UPDATING Schedule Update Frequency: • Maximum – Monthly – coincides with Progress Payment request • Complexity – Weekly for the Monday jobsite progress meeting • Major Impacts – Weather (Hot, Cold, Rain), Floods, Vandalism that delay your planned progress

22. SCHEDULE UPDATING Schedule Update Frequency: • Document Impacts of Owner’s Actions or Inactions – Untimely action on Submittals; Owner did not supply materials on time • Justify Time Extensions associated with Change Orders – incorporate changed work into Schedule

23. SCHEDULE UPDATING Schedule Update Frequency: • As specified in the Contract (usually monthly with payment request) • Kevin Schneider – Barnard PM • Updates his Projects daily

24. SCHEDULE UPDATING How do you go about Updating the Schedule?

25. SCHEDULE UPDATING How do you go about Updating the Schedule? • Use the AutomaticUpdate feature in Primavera SureTrak?

26. SCHEDULE UPDATING Schedule Updating Procedure: • Determine the Status of each Activity Actual (or Revised) Start date + Realistic Anticipated Duration = Updated Finish date

27. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • After an Activity is in progress, the Early Finish can be revised in SureTrak by either inserting a % complete or adjusting the duration. You can not insert a “hard” Early Finish date.

28. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • How do you determine what % of the work on an Activity has been completed?

29. SCHEDULE UPDATING Schedule Updating Procedure: Determining % complete • Quantity % - how do you measure?

30. SCHEDULE UPDATING Schedule Updating Procedure: Determining % complete • Quantity % - how do you measure? • Time % - Efficient or Inefficient?

31. SCHEDULE UPDATING Schedule Updating Procedure: Determining % complete • Quantity % - how do you measure? • Time % - Efficient or Inefficient? • Manhour % - Comparison Basis?

32. SCHEDULE UPDATING Schedule Updating Procedure: Determining % complete • Quantity % - how do you measure? • Time % - Efficient or Inefficient? • Manhour % - Comparison Basis? • Cost budgeted vs Cost expended?!

33. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update - % complete • Determining the % complete will almost always be a SWAG unless you have an Activity where the quantity can be accurately measured.

34. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • How do you accurately determine the % complete of Subcontracted work when you know nothing about “quantifying” electrical or mechanical work?

35. SCHEDULE UPDATING • Activity Status Update • % complete of Subcontracted work? • Sit down with the Sub’s PM/Foreman and have them justify the amount of work they claim to have completed – don’t just accept a written invoice • This is also a good opportunity to learn how they estimate their work

36. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • % complete of Subcontracted work? • Who gets stuck with the loss if a Sub is overpaid and then defaults (bankruptcy) or refuses to complete the work in a timely manner?

37. SCHEDULE UPDATING Schedule Updating Procedure: • Who gets stuck with the loss if a Sub is overpaid and then defaults? • You are the “stuckee” unless you required the Sub to post a bond to cover their performance of their Subcontracted work

38. SCHEDULE UPDATING Schedule Updating Procedure: • As the Project Manager located in the Home Office, how do you get an accurate assessment of the status of the Project?

39. SCHEDULE UPDATING Schedule Updating Procedure: • Accurate assessment of the status? • Visit the Jobsite periodically to keep “a feel for the Pulse” of the Job • Have some good quality personnel on the Jobsite (Superintendent or Field Engineer) that you trust

40. SCHEDULE UPDATING Ethics and Professionalism Scenario: You are the Field Engineer and your Job is not going well. You expect to be able to recover the portions that are not going well and be on Schedule in a couple months. What do you report to the Home Office about the current status of you Job?

41. SCHEDULE UPDATING How do you report to the Home Office about the current status of you Job? • The Project is on Schedule. • The Project has experienced some minor delays, but will be back on track by the end of next month. • We have a Sub that is delaying everyone and messing up the Job.

42. SCHEDULE UPDATING Ethics and Professionalism: • There may be a temptation to present the Job status as better than it currently is, or your optimism about recovering the Schedule may be misplaced – always be truthful. • Bad News does not get better with Age – tell the truth upfront.

43. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • When the amount the Contractor will be paid on its monthly Progress Payment is based on the % complete – you will find that the Owner’s Representatives will be conservative on this percentage.

44. SCHEDULE UPDATING Schedule Updating Procedure: • Activity Status Update • This “conservatism” on % complete for progress payments is usually unfairto the Contractor • Why?

45. SCHEDULE UPDATING Progress Payment Conservatism: • The Contractor is not the Owner’s banker • It’s an additional retainage • How long does it normally take for a Contractor to get paid after it submits a Payment request?

46. SCHEDULE UPDATING Progress Payment Conservatism: • How long does it normally take for a Contractor to get paid after it submits a Payment request? • 14 days at best – Federal Gov’t • Often as long as 2 months +++

47. SCHEDULE UPDATING Progress Payment Conservatism: • Bottom Line – To a certain extent, the Contractor is always “financing” the work – at a minimum 6 weeks of work – often much more than that • One reason for having Subs is to “spread out” the Risk – the Subs are carrying a portion of the $$$ due

48. SCHEDULE UPDATING Progress Payment Conservatism: • On a Federal Government Job – how long do you have to pay your Subs after you get paid?

49. SCHEDULE UPDATING Progress Payment Conservatism: • On a Federal Government Job – how long do you have to pay your Subs after you get paid? • 7 days

50. SCHEDULE UPDATING Review: What does the term “Substantially Complete” mean?