Top Tips for Delay Analysis in Construction
Delay analysis can be a confusing world. We’ve put our expertise together to create a free download with our top tips for preparing a delay analysis.
Despite ongoing improvements in the way in which projects are executed, delay remains one of the biggest sources of dispute. It is also one of the most significant causes of cost overrun in construction projects.
When a delay occurs on a construction project, analysing cause and effect is vital to understanding where liability lies. Delay analysis (sometimes called Forensic Planning) is something which some refer to as a ‘dark art’. Arguably because it’s often misunderstood by those who carry it out or claim to understand it.
There are at least six analysis techniques that are commonly accepted. However, depending on who you ask there are many more - which can add to confusion. It's generally agreed that no single method is better than the others. With a mix of prospective and retrospective approaches techniques can vary according to need.
A prospective analysis such as ‘Impacted as Planned’, or ‘Time Impact Analysis’ is often used whilst the project is still ongoing. This can help assess the impact a delaying event will have on the future completion date. Prospective methods can also be used on completed projects. However, extreme care should be taken when doing so to ensure the ‘theoretical’ prospective analysis corresponds with the ‘actual’ facts.
Whatever method is being used to analyse delay there are a few things you need to establish for a successful claim.
We have put together some of our top tips on preparing a successful delay analysis from our team of claims experts. Download our top 20 tips on delay analysis for free here:
Progress Updates – Fact or Fiction?
Contractors often shoot themselves in the foot when preparing progress updates for the employer’s team. Many times we see months worth of updates which present a rose-tinted view of project progress.
Whilst it is tempting to keep reporting good news month-on-month, be wary. A less than competent consultant may believe such reports because good news will not involve them in additional and troublesome work. However, you could be causing problems for yourself further down the line.
Problems frequently arise when the contractor needs to submit a claim for an extension of time. It becomes very difficult for him to subsequently tell the employer’s team: “I know we kept telling you that there was no delay to the completion date, but actually there is and it’s not our fault, so please can I have an extension of time.”
Time at Large - An Explanation
A blog reader asked for an explanation of “time at large”. This is not something that I have personally come across in practical terms. For the advice that I am about to give, I am indebted to my ex-boss, Roger Knowles. Roger provides an explanation in his book, 150 Contractual Problems and their Solutions. Roger explains it arises:
"when a contract is entered into with no period of time fixed for completion. Where this occurs, the contractor’s obligation is to compete within a reasonable time."
I have never experienced such a situation and I expect that when it does occur, it will be on Read more
Student’s Questions - FIDIC Information, Delay and Prevention
One of the modules on our e-courses requires the students to review various case studies to identify potential claims. Having identified the claims, the student is required to explain the reasons for the claim and what may be claimed. We examine the contractual clauses under the FIDIC Red Book that provide entitlement and explain how the claim would be evaluated. Having completed the module, one student posed certain questions. These were particularly around information and clause 8.4 on delay, impediment or prevention, which I think are worth repeating here.Read more