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Major & Intermediate Milestone

19 replies [Last post]
Mon, 2010-01-18 04:20
Aryan Yap
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Hello Guys,

I would like to know what are the difference between Major & Intermediate Milestone?

Thank you & Best Regards,

Aryan
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Replies

Sun, 2010-01-31 03:22
#1
R. Catalan
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Dear Samer,

Particular Conditions of Contract.

Sorry for using PCC, I know it’s not universally known abbreviation.


Best regards,
R. Catalan
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Sun, 2010-01-31 02:48
#2
Samer Zawaydeh
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Dear R,

What is meant by PPC? Thank you for your response in advance.

With kind regards,

Samer
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Sun, 2010-01-31 02:12
#3
R. Catalan
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Dear mimoune,

In construction industry, normally LDs is applied if the Contractor fails to comply with Time for Completion.

There are contracts (PCC/adjustments to FIDIC) that allows suspension of monthly payments in relation to a milestone (Intermediate) in respect of milestone which have not been achieved on a particular month and payment will be resumed after the said milestone is achieved on the next monthly payment applications.

I think it’s a good practice to include LD clauses in your Subcon’s contract in order to cover your interests when there’s delay attributed to your Subcon.

Best regards,
R. catalan


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Thu, 2010-01-28 05:34
#4
Samer Zawaydeh
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Dear mimoune,

The Contractor must achieve the milestones because that zero duration activity (milestone) is connected to many other activities, which will not start without completing the milestone.

After all, one of the Contractor’s main targets is to complete the job as fast as possible and save on overhead.

With kind regards,

Samer
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Thu, 2010-01-28 04:40
#5
mimoune djouallah
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samer

thanks for the "exact" definition, my point was a why a subcontractor should care if there is no LD linked to the milestone ?
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Thu, 2010-01-28 03:30
#6
Samer Zawaydeh
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Dear Anoon,

You are close. Here is the definition from "The Practice Standard for Scheduling" from PMI.
"
Milestone, page 94: A significant point or event in the project.

Schedule Milestone, page 100: A significant event in the project schedule, such as an event restraining future work or marking the completion of a major deliverable. A schedule milestone has zero duration. Sometimes called a milestone activity.
"
With kind regards,

Samer
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Thu, 2010-01-28 02:06
#7
Christian Adrian ...
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Aryan

In my previous project our contract defines what are the Intermediate and Major milestones, so I would suggest you have to check your contract just to make sure.

Anoon

I like that term... "Political Milestone" :-)
thank for the idea...
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Thu, 2010-01-28 01:32
#8
Anoon Iimos
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Samer,

A milestone is a stone marker which indicates a certain mark (i would guess in miles) as you can see along the roads.

In scheduling, I would assume that it is also used as marker, i.e. for a start and/or finish of an activity or group of activities. So here, a milestone maybe singular or plural; major or minor, which represent a certain time.



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Wed, 2010-01-27 21:28
#9
Samer Zawaydeh
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Dear Mimoune,

A "milestone" is an activity with zero duration. So you can have any activity you like depending on the project type, environment or requirements to be set as a milestone. It does not have to be related to LDs in any way.

With kind regards,

Samer
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Wed, 2010-01-27 17:43
#10
mimoune djouallah
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"What if the milestone is not covered with LD"
so it is not a milestone. i think the phrase coined by Anoon is a good one "political milestone"


best regards

PS: I’ll forward this thread to our contract manager, he will like it for sure
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Wed, 2010-01-27 15:28
#11
Mike Testro
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Hi Catalan

Remember that in the simple meaning of the word - excluding Military and Musical examples - Major means greater and Minor means lesser.

Greater or lesser than what is never clear.

I was running a claim on a steel mill in Egypt some time ago when an amendment to the FIDIC 5 stated that only Major variations would be valued.

I argued that variations that reduced work should not be valued because they were minor- only major variations which added value should be includeed.

It would probably have worked but for the fact that my employer was a Japanese contractor and they bottled it.

The point is that some words in English have a precise meaning and should not be used loosely.

Others have multiple meanings and should be used very carefully.

Whenever I see the phrase "for the avoidance of doubt" I reach for my thesaurus.

Best regards

Mike Testro
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Wed, 2010-01-27 11:00
#12
Shah. HB
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Hi Catalan

Your message really sounds good .Many Thanks
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Wed, 2010-01-27 08:20
#13
R. Catalan
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Aryan,

I would suggest to change the terminology:

- Major to Contractual Milestone

- Minor to Construction Milestone

Sometimes there’s many ideas on which milestone is major or minor.

Best regards,

R. Catalan
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Mon, 2010-01-18 23:25
#14
Shah. HB
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Hi

Major milestone you could define as discussed below project start and finish,then followed by power on , municipality connection.

Intermediate milestones could be your sectional completion targets for example in a tower project, completion of plant room at basement level is an interim milestone
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Mon, 2010-01-18 08:51
#15
Samer Zawaydeh
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Dear Aryan,

The following events can be considered as an Intermediate Milestone:

1. Arrival of Major Equipment to site.
2. Approval of Design drawings by Owner.
3. Testing and Commissioning
4. Removal of Big Tower Cranes from Site.

These event will start plenty of other activities after them.

With kind regards,

Samer
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Mon, 2010-01-18 04:45
#16
Aryan Yap
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Thank you....

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Mon, 2010-01-18 04:42
#17
Anoon Iimos
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you can call it a political milestone
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Mon, 2010-01-18 04:39
#18
Aryan Yap
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Hi Anoon,

Thank you for quick response. What if the milestone is not covered with LD, can we call them intermediate milestone but it is part of the contractual milestone?

Thank you & Best Regards,

Aryan
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Mon, 2010-01-18 04:27
#19
Anoon Iimos
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I would guess major milestones to be contract start and completion; and Intermediate milestones as interim milestones
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