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Project not recoverable

7 replies [Last post]
Mon, 2009-05-18 08:04
Patrick Homer
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I am looking for any papers or books that discuss the probability that a project has a low or no probability to recover time from a series of substantial project delays by the owner and others.

I have a construction job that is greatly behind schedule due to delays by others. The owner wants a recovery schedule to finish the project per original schedule. The owner is willing to pay acceleration costs, but the project is too far behind schedule to recover to the original dates.

Thanks in advance
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Replies

Wed, 2009-05-20 08:29
#1
Alistair Blakey
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I agree with Neil (post below) regarding risk analysis. The more you squeeze the construction durations and attempt to rationalise the programme by running activities concurrently, the greater your exposure to risk. Eventually you will have a programme which might look possible on paper, but will fall down as soon as one of your (now hypercritical) activities falls behind. Better to inject a note of realism into the project now and try to set a realistic and achievable completion date.
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Tue, 2009-05-19 13:20
#2
Samer Zawaydeh
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Dear Partick,

The project duration can be reduced.

The basic idea would be to look at the critical path activities. Then you will select the least expensive activity and start reducing the time by increasing the resources. With each run, you would have reduced the time and increased the cost (acceleration). The critical path will change slowly, and you will need to keep doing the same process until you are satisfied.

With kind regards,

Samer
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Tue, 2009-05-19 07:32
#3
Patrick Homer
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Thanks all for the responses.

The Owner has granted EOT in the past. I am just presenting the Owner with various options at this time; one of which is that project delay cannot be recovered with acceleration or resequencing this time.
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Tue, 2009-05-19 03:47
#4
Toby Hunt
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Patrick

Try reading Pickavance’s book Delay & Disruption in Construction Contracts, Chapter 11 titled "Mitigation and Acceleration"

Regards

Toby
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Tue, 2009-05-19 02:04
#5
Neil Tait
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Patrick,

In terms of looking at probability of achievement you could look at risk management. There are various papers / background floating about that explain the concept and calculation of risk and its impact upon the programme / schedule and costs. However, in your case it appears that the risk of overrun has already materialised into reality.

If resequencing and assignment of increased resources does not yield an acceptable acceleration / delay recovery programme you need to start thinking out of the box: perhaps the introduction of sectional completion dates will satisfy the client’s needs; perhaps the project is no longer viable and the client needs to cut their losses;...

To enable their decision, the client needs to be presented with the various options in terms of time and cost - the starting point being ’what if we do nothing’ and simply pursue the EOT route. Generally an optimum (sensible) position regarding acceleration / recovery of time and cost can be established. ’Impossible’ and ’backhole’ (where your money will go) are concepts that are generally not too difficult to explain but you do need to present options to give the client a way out.
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Mon, 2009-05-18 16:47
#6
Mike Testro
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Hi Patrick

What Samer says is correct as far as Acceleration is concerned.

But it seems you have grounds for an Extension of Time so why not pursue that Avenue.

If you are going to plan an acceleration conentrate on the tasks that are critical.

Best regards

Mike Testro.
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Mon, 2009-05-18 12:06
#7
Samer Zawaydeh
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Dear Patrick,

If you want to consider acceleration, then you need to have an approved schedule, resource loaded. You will keep increasing the resources and reducing the construction time whenever possible. Finally, you will have the minimum duration with which the project can be completed, and the associated cost with the reduction in time (acceleration).

Hope that the information helps.

Best Regards,

Samer
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