Primary Author: Dr Seyyed Amin Terouhid
Co-Author(s): Ms Diana Minchella; Mr Andrew Lawrence Sargent
Audience Focus: Intermediate
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA
Abstract: Pacing delays occur when a project party intentionally decelerates work production to keep pace with project activities that drive the critical path. Typically, contractors decide to slow their pace to minimize costs, and these business decisions can also ultimately lead to cost savings for the owner. If the contractor’s pacing delays occur concurrently with owner-caused delays, the contractor’s pacing may partially offset delay damages that otherwise would have been chargeable to the owner.
Current literature does not adequately address how pacing delays can be used for the collective benefit of the project parties. This article aims to outline scenarios in which pacing is used as a delay management mechanism. Pacing decisions must be carefully considered to ensure the parties fully understand potential impacts of these decisions. The decision of whether to limit one party’s work pace must be carefully considered to ensure that all parties understand the impacts to the schedule, costs and claim recovery potential. This article describes the characteristics of pacing delays and provides guidelines to facilitate informed pacing decisions.
Co-Author(s): Ms Diana Minchella; Mr Andrew Lawrence Sargent
Audience Focus: Intermediate
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA
Abstract: Pacing delays occur when a project party intentionally decelerates work production to keep pace with project activities that drive the critical path. Typically, contractors decide to slow their pace to minimize costs, and these business decisions can also ultimately lead to cost savings for the owner. If the contractor’s pacing delays occur concurrently with owner-caused delays, the contractor’s pacing may partially offset delay damages that otherwise would have been chargeable to the owner.
Current literature does not adequately address how pacing delays can be used for the collective benefit of the project parties. This article aims to outline scenarios in which pacing is used as a delay management mechanism. Pacing decisions must be carefully considered to ensure the parties fully understand potential impacts of these decisions. The decision of whether to limit one party’s work pace must be carefully considered to ensure that all parties understand the impacts to the schedule, costs and claim recovery potential. This article describes the characteristics of pacing delays and provides guidelines to facilitate informed pacing decisions.