Return to Contractual

Delays and Delay Analysis

Delays and Delay Analysis

The appropriate selection of a delay analysis method is important to accurately quantify delays. Analysts must be aware of the strengths and limitations of each method to determine which one is most suitable for the case at hand. Several factors must be considered when selecting a delay analysis methodology including, but not limited to, contractual requirements, source data availability, budget, and time allowed for the analysis and size of the dispute.

Delays and Delay Analysis

Delays and Delay Analysis

The duration of contract performance has a direct effect on the profitability of construction projects from the perspective of all stakeholders. For project owners, lost profits or benefits stem from being unable to make use of the project at the agreed date whilst to the contractor, extra cost will be incurred due to prolonged stay on site. Most standard forms of contract thus have provisions that anticipate delay brought about by the actions and/or inactions of the contractor, the owner or are outside the control of both parties.

The contractor is often excused from the consequences and/or allowed compensation for any costs due to delays resulting from events or circumstances that are beyond its control. Contractual provisions also allow the owner to recover liquidated damages from the contractor for failure to deliver the project within the contract performance period. Liquidated damages clauses entitle the owner to recovery of a specified sum of money for each day or week of culpable delay. In both instances, a detailed schedule analysis is required to investigate the events that have actually caused the project to overrun.

Delay claims are now a major source of conflict in the construction industry and also one of the most difficult to resolve

Current programming software packages for analysis delay claims are characterised by different functionalities and capabilities. They also lack transparency on some crucial scheduling operations and employ different settings for dealing with key scheduling issues that affects delay analysis process such as project calendars, rescheduling activities with lags and status updates.

To ensure a more reliable delay analysis results, it is important to use resource-loaded and levelled baseline programmes, as such programmes provide for reliable task duration, network logic, and realistic float values in non-critical activities.

To read more please visit : https://www.mdpi.com/journal/buildings

 

Permanent link to this article: http://www.e-basel.com/contractual/delays-and-delay-analysis/