Float & Construction Projects: Understanding "Float" in Scheduling
In this article, we take a look at the subject of 'float' in construction project scheduling. On the most basic level, construction projects are intricate networks of interconnected tasks. When one task experiences delays, it can create a domino effect, disrupting the entire project timeline.
This is where the concept of float becomes invaluable. Let's try and take a look at how it works...
What Exactly is Float?
It represents the amount of time a specific task can be delayed without jeopardising the overall project completion deadline.
Consider the construction project programme as a chain. Each task is a link, and the critical path (used by project managers to schedule activities) is the tightest sequence of links that determines the project’s finish date. Sticking with the metaphor, float is the “slack” in the chain for non-critical links. It provides a buffer or flexibility within the schedule.
Are There Different Types of Float?
Here’s where it begins to get a little complex — there are different types, depending on context. But, for most scenarios, there are two key float concepts to understand:
- Total Float: (TF) is the time a task can be delayed without delaying the project’s completion date. For example, if a task is scheduled to start on Monday and finish on Friday, but the next dependent task does not start until the following Tuesday, the task has a total float of one day.
- Free Float: (FF) measures how much delay the current task can tolerate, without affecting the start of the next sequential task. It’s more localised than total float and applies to individual tasks rather than the project in its entirety.
Why is it Important?
While it might sound like technical jargon, float is a very powerful tool that can help teams learn more about their work. It can help improve the productivity of projects. Moreover, it's crucial for maintaining flexibility in project programmes. This in turn helps project managers allocate resources more effectively, handle unexpected delays, and prioritise tasks to keep a project on track.
As an example, imagine a project which – among a myriad of things – contains two near-term tasks:
- Paint walls
- Install light fixture
Painting has two days total float, whilst the light installation has none, as it is on the critical path. But with limited resources a delay occurs. In this scenario, by prioritising lighting, the the overall project timeline remains on-time. The painting task can be rescheduled by up to two days later without affecting the critical path and completion date.
This is where prioritising activities comes into play. Rescheduling activities allows for the most efficient use of float. Importantly, this will preserve the expected completion date.
As you can begin to see, understanding the concept supports better communication between stakeholders and avoids unnecessary panic over tasks that do not immediately impact deadlines.
The Key to Delivering Projects On Time and Within Budget.
Without a thorough understanding of float, you will struggle to successfully manage projects in the construction industry and will likely be confronted with delays. By incorporating it into project schedules, project managers can enhance efficiency, limit risks, and ultimately deliver projects on time and within budget. For more detail on the 'ownership' of float take a look at this article.
This article was written by Paul Woodley BSc, LLB, MCIArb.
If you'd like to learn more about planning, scheduling and delay analysis, check out our delay analysis courses and get started today.
How to Prepare a Construction Claim
When you need to prepare a construction claim for the first time, it can be daunting, especially for those without legal expertise. Even seasoned experts can struggle. Understanding the key steps involved makes all the difference and significantly improves your chances of success.
In this blog, we examine the basics of preparing a construction claim. We’ll provide help on how to gather evidence, articulate your damages, and effectively present your case.
What Should You Include in the Claim?
When pursuing a construction claim, the contract serves as the bedrock upon which your case is built. It outlines the agreed scope of work, payment terms, variation procedures, and liability allocations.
To successfully pursue a claim, it's essential to provide strong evidence that you are entitled to compensation.
A successful claim will include:
- Cause — The event that has given rise to the claim, which is usually a statement of fact.
- Effect — It’ll be necessary to show that an event caused the effect forming the basis for the claimed compensation.
- Entitlement — Demonstrate that the event on which the claim is based is something referenced in the contract or law, and provides entitlement to the claimant.
- Substantiation — This is the evidential basis for proving, to a reasonable level, the accuracy all statements made, points relied on, etc.
Always Reference The Contract
The contract is the cornerstone of any construction project. By thoroughly understanding and referencing its terms, you can build a strong case for your claim. This in turn increases your chances of a successful outcome.
To successfully recover additional time and costs, it's essential to meet the specific requirements outlined in your contract. Many contracts include strict deadlines for filing claims. Failing to comply with these timeframes can significantly weaken your claim or even lead to a loss of entitlement.
This is particularly important for NEC contracts. Under NEC, strict adherence to contractual timeframes is a ‘condition precedent’ to entitlement. If you don't meet these deadlines, the original ‘prices, the completion date, or a key date’ may remain unchanged.
These time bars are also crucial to ensure fairness and efficiency in the dispute resolution process. Be aware of time bars in your contract and act within the prescribed timeframe. If you have to prepare a construction claim, the claim may be lost if time-bars are missed.
Here are some examples:
- Clause 4.20.1 of the JCT Design and Build 2016: This sets out an obligation for the contractor to notify the employer ‘as soon as the likely effect of a relevant matter… becomes (or should have become) reasonably apparent’.
- Clause 61.3 of the NEC4 ECC Option A: This sets out an obligation for the contractor to notify the project manager of an event believed to be a compensation event ‘within eight weeks of becoming aware that the event has happened’.
- Clause 20.2.1 of the FIDIC Yellow Book 2017: This sets out an obligation for the claiming party to give a notice to the engineer ‘as soon as practicable, and no later than 28 days after the claiming party became aware’.
Substantiation: How to Present Your Evidence
It’s essential to provide adequate substantiation of cause, effect and entitlement. In order to succeed, you will need credible evidence to support your claim. This involves gathering and organising documents, records, and other materials that prove the validity of your arguments.
When presenting your evidence, ensure it is clear, concise, and directly relevant to the specific issues raised in your claim.
As a framework to follow, Construction Claims and Responses: Effective Writing and Presentation by Andy Hewitt suggests a submission should consist of two parts:
- The narrative. This deals with the details of the project and sets the circumstances of the claim. It demonstrates the effects of the claim and explains the basis of any supporting documents. These should help demonstrate the effects or quantum of the claim.
- Appendices. These contain documents such as programmes, calculations, photographs and project records. They support, illustrate and substantiate the claim.
By understanding the key elements of a construction claim, referencing the contract, adhering to time bars, and effectively presenting evidence, you can increase your chances of a successful outcome.
This article was written by Luke Chamberlain.
If you are preparing a construction claim, taking advice from a legal or claims professional will help ensure you get the guidance and help you need for success. If we can help, do get in touch - you will almost certainly find one of our introductory courses helpful.
How to deal with conflicts in contract documents
A Claims Class student recently contacted me for some advice regarding conflicts in contract documents. The Engineer always instructed the Contractor to go by the most stringent of the conflicting documents. The student asked if this was the correct approach. This is often the default position of engineers or contract administrators. I disagree with such an approach, so I thought that it would make a useful blog topic.
The first place to try and resolve conflicts in documents is the contract. This will enable you to see if there is an order of priority of documents included. If, for example, the specification is deemed to be a higher priority than the drawings, then we should generally follow the specification. However, this is a simplistic approach and is not always appropriate. Let’s look at a few examples.
Contract documents should be regarded as being mutually complimentary. But, there are two categories of problems that may arise when interpreting the contract documents. First, there may be inconsistencies and conflicts that occur within a document or between documents. Second, there may be omissions in the documents where the subject matter is covered either inadequately or not at all.
Conflicts in Contract Documents
Sometimes we have conflicts in the same document or set of documents. One contract clause may say one thing and another something else. Furthermore, the specification may contain contradictory information in different places. In this case, we must adopt the accepted interpretation that the specific should control the general. This approach assumes that the general applies unless specifically contradicted. Here, it is a matter of a clause that goes right to the point versus one that generally discusses a particular circumstance or requirement.
Inconsistencies in Contract Documents
Drawings are sometimes created inconsistently. When this happens, the more detailed drawing should usually prevail over the general drawing. Similarly, a large scale drawing will take precedence over one drawn at a smaller scale. If the drawings are of equal detail, the most current of the two drawings should usually take precedence. The trade for which the drawing is prepared should also be considered. For example, plumbing details indicated on the plumbing drawings should prevail over deviations from or omissions of that work in drawings made for other trades. It is not uncommon for the drawings to indicate one thing, and the specifications, another. This may be dealt with in the contract by stating the order of precedence.
Omissions from Documents
No set of contract documents has ever been 'complete', and it is unlikely that one ever will be. The law typically requires that the documents be ‘reasonably complete'. They should also be competently done as is the norm for the profession. Therefore, omissions must be judged against that standard.
The first place to look for something omitted from either the drawings or the specifications is elsewhere in the contract documents. Thus, apparent omissions from the drawings may be covered by text in the specifications, and omissions or ambiguities in the specifications may be covered by details in the drawings. This is consistent with the viewpoint that the contract documents are complementary.
One additional point that may be important in individual cases is that the courts will tend to construe an ambiguous provision against the party who was responsible for drafting it. Thus, if the Contractor’s interpretation of a drawing or a part of the agreement or specification is reasonable, the Contractor’s interpretation may prevail over the Employer’s (as the party who caused the item to be drafted). This is based on the rationale that the party who drafted the item could have had it any way it wanted and if it did not draft a clear provision or produce a clear drawing, the other party should not be made to suffer unreasonably.
Dealing with Omissions
One of the ways that courts deal with omissions in documents is to infer that certain terms are included, though not explicitly stated. The attitude of courts (and their willingness to do this) has varied among jurisdictions and according to the types of documents involved. Courts are usually quite willing to find certain terms implicit in construction contract documents. However, express terms and conditions will preclude a court from inferring different terms and conditions.
Another method that the courts use to fill in gaps in the contract documents is to find implicit terms and conditions according to custom and usage in the industry. This could cover many items. It might even be used to decide which of the parties was responsible for a particular contractual event. Thus, who bore the risk of that event occurring or not occurring, as the case may be.
Conclusion
It is therefore important for the Engineer to examine all the documents before deciding on conflicts and omissions in the contract documents. They should also judge each case on its own merits.
If you need any help with any of the issues discussed, you can sign-up to one of our courses here.
10 Things Construction Gets Wrong When it Comes to Claims
Inadequately expressed claims are one of the leading causes of time-consuming and costly disputes. Avoid common mistakes to ensure acceptance of claims.
In this post, we set out ten common reasons that claims end up as disputes and offer best practice tips so you can ensure you do better. Take a look at the following, have you fallen foul of them? Are you constantly looking out for them so you can avoid them?
Common Mistakes
- Contractors wait until the end of the project to submit claims, instead of submitting claims when entitled to, as the project progresses.
- Contractors include several delay events into a single consolidated claim instead of preparing separate claims for each delay event.
- Contractors do not give notices of claim within contractual timeframes, and notices do not contain necessary information.
- Claims do not contain an adequate examination of cause, effect, and entitlement to justify the claim.
- Claims are not adequately substantiated to prove that the claim is just.
- Engineers and contract administrators do not follow their contractual obligations to respond to claims and attempt to reach agreement.
- Both claims and responses to claims are poorly expressed, so the recipient has difficulty in understanding the claimant or respondent’s positions.
- Delay analyses to demonstrate extensions of time are not performed following good practice.
- Cost claims are poorly demonstrated and substantiated.
- Those tasked with preparing and responding to claims are inadequately trained and qualified.
Whilst very common mistakes, these are all avoidable. They are all things you can keep an eye out for and minimise or even eliminate to ensure project success.
If you would like to learn how to submit successful claims and achieve quick resolution on projects, take a look at our e-courses.
FIDIC 2017: What You Need to Know Now
It is now 5 years since the FIDIC 2017 editions of the Red, Yellow and Silver Books were published. As anticipated, it’s taking the industry some time to get on board and adopt these latest editions on projects.
Change Can Be Uncomfortable....But it's Inevitable
Nobody likes change. Employers and engineers are no different. It can be uncomfortable and it takes time and effort to take effect. But, as time moves on more and more projects will move to the FIDIC 2017 editions and it's critical that project teams understand these contracts.
I also suspect that Read more
How To Avoid Disputes From the Outset
Hewitt Decipher Partnership recently presented a webinar on international arbitration. Panel members included a barrister, an arbitrator and a solicitor. They were joined by HDP employees who provide expert advice to legal professionals working on construction disputes. The aim was to look at how to avoid claims.
Whilst these professionals earn fees from disputes, the overwhelming consensus was that the best way to deal with disputes is to not have them in the first place.
So, what can we do to avoid disputes right from the start of the project?
The Difference Between A Claim to the Engineer & A Claim in Arbitration?
A student recently asked, "Is there any difference between a claim submitted to the Engineer and one submitted for arbitration?" My response was along the lines of, “Yes, there frequently is, but there shouldn’t be.”
The Scenario:
Let me explain why by describing a very frequent scenario related to claims.
The Contractor considers that they have a justifiable claim for a significant amount of money or an extension of time. This claim, in turn, will negate delay damages.
Our Contractor reviews the resources available to them and allocates responsibility for preparing the claim. However, they do not ascertain whether the person preparing the claim has adequate qualifications or experience to prepare it to a suitable standard.
The person given the responsibility does their best. However, lacking the necessary experience and skills, the preparation of the claim is not to a good standard.
The Engineer rejects the claim because it cannot be understood. It does not contain adequate information, it lacks substantiation, or it does not prove that the claim is justifiable. Even an impartial Engineer would be acting correctly in doing so. A defensive Engineer would be glad to have an excuse to reject the claim.
The Contractor still believes that a justifiable claim exists and thinks that the Engineer has acted unfairly. After several months of indecision, the Contractor elevates the matter to a dispute and calls in the lawyers.
The lawyers examine the claim and the response, and advise the Contractor that they agree the Contractor has entitlement, but the claim needs to be expressed properly if the matter is to succeed at adjudication or arbitration.
The Contractor still does not have anyone on the team with the qualifications or experience to prepare an adequate claim. So, the lawyers offer to prepare it themselves, or they recommend that the Contractor bring in someone with the appropriate skills.
The properly prepared claim is then presented to the adjudicators and arbitrators. They, in turn, make an award in favor of the Contractor. By this time, the whole process will have taken years rather than weeks and involved considerable time and cost for the Contractor.
The Reality:
Maybe now you can understand why, frequently, there is a difference between a claim submitted to the Engineer and one submitted for arbitration. More importantly, you may see why there shouldn’t be such a difference. Had the Contractor just prepared their claim to a suitable standard in the first place, rather than trying to save money on claim preparation, the matter could have been resolved quickly and for a reasonable cost.
Avoid the risks posed by poor training and the lack of skills highlighted in this article: join one of our courses. Find out more about our e-courses [here].
Why do Final Accounts lead to Disputes?
I recently provided advice on a dispute of US$250M. This sum includes variations, prolongation costs, acceleration costs, disruption costs and delay penalties. The dispute crystalised when the contractor submitted his final account. This is a familiar occurrence. In fact, a large proportion of disputes occur when the project is either nearing or after completion.
How to Ensure you Avoid Costly and Time-Consuming Disputes on your Projects
We all want to avoid disputes on our construction projects. But it seems we fail to learn from lessons of the past. ARCADIS have just published their annual Global Construction Disputes Report 2019. It makes interesting, but, not altogether surprising reading.
This year, the top three reasons for disputes are:
- Owner/Contractor/Subcontractor failing to understand and/or comply with its contractual obligations;
- Errors and/or omissions in the contract document;
- Failure to properly administer the contract.
Some other interesting noteworthy observations are:Read more
Construction and Contract News 2019
We are looking ahead to 2020 and back on the past year. What has changed and what should we be looking out for in the world of construction contract and claims? We take a look in this round-up of construction and contract news from around the world…
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