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Level: Intermediate
TCM Section(s): 6.4. Forensic Performance Assessment
Venue: 2020 AACE International Conference & Expo
Abstract: For any construction project, unknown risks can become known problems that affect the project completion date. To reduce or altogether avoid delay to the project completion date, contractors often compress the schedule in the belief that such measures are mitigating actions. While such compression can restore the contractual project completion date without apparent added cost, it may increase project risk.This risk is amplified if the contractor does not clearly inform the owner of the mitigation steps taken and their potential cost. As such projects near completion, the contractor may realize that those risks have manifested as higher than anticipated cost, and the reward of earlier completion is far less than the risk taken. This paper demonstrates such an event and shows how two analysis methods defined in AACE International Recommended Practice 29R-03 can be modified to enable the contractor to analyze a zero slippage schedule which may contain concurrent delays.A contractor can use such an analysis to keep the owner informed of the full cost implications of compression measures and to request compensation for realized risks.
TCM Section(s): 6.4. Forensic Performance Assessment
Venue: 2020 AACE International Conference & Expo
Abstract: For any construction project, unknown risks can become known problems that affect the project completion date. To reduce or altogether avoid delay to the project completion date, contractors often compress the schedule in the belief that such measures are mitigating actions. While such compression can restore the contractual project completion date without apparent added cost, it may increase project risk.This risk is amplified if the contractor does not clearly inform the owner of the mitigation steps taken and their potential cost. As such projects near completion, the contractor may realize that those risks have manifested as higher than anticipated cost, and the reward of earlier completion is far less than the risk taken. This paper demonstrates such an event and shows how two analysis methods defined in AACE International Recommended Practice 29R-03 can be modified to enable the contractor to analyze a zero slippage schedule which may contain concurrent delays.A contractor can use such an analysis to keep the owner informed of the full cost implications of compression measures and to request compensation for realized risks.