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Each project, How is it known, It has three essential constraints to be respected: time, Costs and quality (understood as compliance with the contractual requirements). Among these, Time is the most insidious and potentially disruptive factor. Suffice it to weigh the investment projects whose profitability is linked to the time or the need to perform critical works of interest for the community.

It is interesting to note that some of the most important project management techniques were developed precisely for control and the’Analysis of the delays of complex projects, from the 1960s (Pert and CPM programming).

In this article I will deepen the Management of delays in projects, with particular reference to the construction sector.

Causes of delays in projects

Delays in the execution of construction projects are frequent and may depend on a multiplicity of factors:

• Low productivity;
• Inadequate definition of the purpose of work (scope);
• Delays of supply (materials and contracts);
• Delay in the mobilization of a subcontractor;
• Delay in the authorization cycle and PEMITTING;
• Non -timely resolution of interference dependent on the entity involved;
• Lacking quality, which involves a restoration (re-work).

In the most complex and articulated executions, a typical delay cause concerns the submission-approval process that may require several passages of responsibility between the contractual stakeholders.

Definition of the delay

The delay is a temporal deviation measurable to a certain date from one or more completion dates, Compared to what is planned (baseline). In the absence of a baseline, the delay measure does not make sense: This implies the need to accurately define the contents of the baseline plan and how the project plan must be developed.

The most structured contracts include specific clauses that describe both the baseline definition procedure, both the progress process, also specifying the programming techniques to be used: usually the CPM (Critical Path Method) and the IT tools (For example spring p6).

In each project, The time factor plays a predominant role.

Time factor: essential element for success

Each project that undergoes delays creates negative effects in terms of cost e, more general, in contractual and business relationships, up to arrive, In particular cases, to bankruptcy of the company.

Time plays an essential role in cost management. Indeed, In addition to the cost of materials, often subject to increases for inflationary phenomena, The cost of the human resources committed and those of the equipment and equipment depend on the time in which they are employed. Consequentially, The delays accumulated in a project are among the main causes of extra costs, together with any causes of force majeure.

The time factor is also at the center of most contractual disputes. Failure to meet deadlines, be it the completion date or other milestones, may result in penalties and, if the delay exceeds certain thresholds, even the termination of the contract with related compensation for damages.

Every dispute inevitably involves the’analysis of delays associated with events that gave rise to them. Even in disputes of a different nature, as design errors, poor quality of works or failure to pass a test on complex equipment, it will still be necessary to evaluate i costs related to delays consequent.

Let's analyze the impacts caused by delays in more detail.

Effects of delays

a. Cost impact

Extra costs in projects depend largely on delays that accumulate on the project, in addition to those dependent on force majeure. The impacts on costs are expressed through two elements: the cost of materials and labor exposed to inflationary phenomena and the productivity of resources (labor, equipment and equipment) whose actual costs depend on the time in which they are used.

When estimating costs, manpower is there resource more subject to uncertainty. Furthermore, has a direct impact on timing, as productivity may vary based on different factors or may have been incorrectly estimated.

Luckily, they exist cost management techniques that allow us to estimate, effectively evaluate and monitor the productivity and timing of a project. Time control is, therefore, essential for cost control.

Furthermore, in the overall cost estimate, the so-called indirect costs must also be considered, which depend directly on time. For example, in a medium-sized infrastructure project, specialized personnel can have business costs exceeding ten thousand euros per month. To these are added rental costs, services and other construction site management expenses. A three-month delay could therefore have a significant impact on the overall project budget.

b. Phases of activity and impact on contractual relationships

A crucial aspect of’analysis of delays in project management is their propagation along the execution phases: initial delays inevitably have repercussions on subsequent ones. For example, in a construction project, a delay in the construction of the structural system compromises the progress of subsequent work, such as finishes and systems.

These delays generate cascading effects, accumulating further slippage along the execution chain. This can lead to complex contractual disputes and, in the most serious cases, to the termination of the contract with claims for damages.

In international contracts, managing delays requires advanced methodological approaches, such as schedule delay analysis and forensic planning techniques. In Italy, However, a specific culture in this area is still missing, and we tend to favor empirical approaches, often poorly structured.

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Concomitance of causes (Concurrency)

The causes of delays in carrying out the works are various and often concomitant, so the
liability may fall on one or more contractual parties: the client, the designer, the contracting company or one or more subcontractors.

In the majority of cases, delays in the execution of the works are caused by concomitant factors and cannot be attributed to a single cause, especially on projects of a certain size with the simultaneous presence of various subcontractors; in these cases we speak of "concurrent delays", that is, caused by multiple factors not attributable to a single contractual party.

L’delay analysis and the related responsibilities is complex and requires the division of the amounts of delay between the contractual parties involved to quantify the related damages for "greater costs". For example, a subcontractor's delay in one process impacts subsequent processes and therefore other subcontractors may suffer delays and find themselves in the situation of having multiple concurrent work fronts, with greater costs and a decline in productivity.

In other cases the delays accumulated in a work phase (for example on foundations) are passed on by the main contractor to one or more subcontractors who intervene in subsequent phases (for example in finishing works or in the technical systems of the building), who find themselves in the situation of being subjected to sometimes unrealistic requests for "acceleration of work"., anyway, expensive.

Techniques used in the international field

Ultimately, in the majority of cases of complex projects there is a concomitance of causes that may depend on different actors (client, contractor, subcontractor, stakeholders) that cause “concurrent delays” – concurrency – which have important contractual implications, especially between client and contractor. L’concurrency analysis it's a complex problem and, Often, Delay disputes result in long and costly legal disputes.

All’estero, for many years now, these themes have been the subject of numerous studies and professional contributions, so much so as to give rise to a true forensic engineering discipline called forensic planning, based on delay measurement and analysis techniques (schedule delay method).

Forensic analysis of delays: Forensic Planning

The forensic planning techniques allow you to analyze the impacts of individual events or a group of events, often concomitant, on the project execution stages, in order to negotiate time extensions (EOT) e prolongation costs.

Foreign international contracts now regulate this activity, which requires to be well framed right from the tender phase and implemented in an integrated manner with the system of controlling control and contract management.

The new FIDIC versions, some already published in 2018, require even more specific claim management processes. In relevant projects, a specific working group dedicated to claims management may be necessary, composed of appropriate professionals.

Main delays analysis methodologies

There are specific methodologies recognized internationally by AACE International (RP 29 R-03, USA) e dal SCL Protocol (2ª edition, UK), which are classified into perspectives, when analysis is performed in real time during project execution, and retrospectives, when it is conducted upon completed work on the basis of historical data.
The main methodologies are described below, using AACE terminology.

1. Impacted As-Planned
   This methodology involves the inclusion of delay events in the reference timetable (baseline o as-planned) to evaluate their impact on the overall duration of the project.
   Advantages: simple to apply, does not require an as-built timetable.
   Disadvantages: it does not allow the evaluation of concurrent delays or delay recoveries. It is a hypothetical model that is not based on actual data (as-built).
2. Collapsed As-Built
   Opposite method to the previous one: consists of removing delay events from the as-built schedule to determine the theoretical completion date of the project without such delays.
   Advantages: it does not require a baseline timetable or simultaneous updates.
   Disadvantages: it can be manipulated by introducing postponed logical constraints and delays that are not consistent with the actual evolution of the project.
3. As-Planned vs. As-Built
   Technique that compares the baseline or as-planned timetable with the as-built one or with an updated state of progress.
   Objective: identify differences between planned and actual start and end dates of activities on critical and quasi-critical paths.
   Advantages: simple method, effective on short-term projects with a single stable critical path.
   Disadvantages: loses accuracy in complex projects, where the critical path changes over time.
4. Time Impact Analysis (TIA)
   Advanced methodology that analyzes delay events in chronological order to quantify their impact: calculates the difference between the project completion date before and after each delay event.
   Advantages: it is the most effective method for analyzing delays during project execution, based on contemporary data.
   Disadvantages: it is a hypothetical model (not based on as-built data) and it becomes complex if the number of delays is high.
5. Windows Analysis
   Retrospective technique that divides the project duration into smaller intervals (windows) and analyzes the delays on the critical path for each period.
   Objective: compare the predicted critical path with the actual one at each stage of the project.
   Advantages: allows you to evaluate concurrent delays and delay recoveries.
   Disadvantages: complex method, requires extensive documentation and a reliable CPM timetable.

The delay analysis methodologies vary based on objectives and application context. Prospective analyses, as the Time Impact Analysis (TIA), they are more useful during execution, while retrospective analyses, as the Windows Analysis, they are more suitable for post-project disputes and evaluations.

The Cost Engineering association AACE International has developed two recommended guidelines (recommended practice):

• AACE-29R-03 – Forensic Schedule Analysis
• AACE-52R-06 – Prospective Time Analysis as Applied in Construction
  

The RP 29R-03 as suggested by the title, it is the one that can be used in the case of delays that have already occurred and on which it is necessary to carry out a subsequent analysis, typically on disputes already established.

La RP 52 instead it concerns the optimal methodological approach to follow during the project implementation phase; essentially concerns the project planning and scheduling activity aimed at analyzing and evaluating delays as they occur during construction.

In Italy

In our country, unfortunately, these methodologies are still substantially unknown and rudimentary approaches prevail. The problem of measurement and analysis of delay that happens, for example, on public works, is left to the sensitivity of the works manager and the RUP of the commissioning station.

The tender specifications rarely regulate the programming activity. The same CPM (Critical Path Method) which was also developed in the 1960s, in Italy it still finds few applications. However, It has been observed for some years that specific planning and time scheduling requirements are increasingly present also in the private sector.

For example, ANAS provides programming clauses for the most demanding projects but not specific ones measurement and analysis of delay, that instead, as we have illustrated, they are particularly useful because they facilitate contract management, in reference for example to the evaluation of time extensions following variations, as well as the resolution of contractual disputes.

Conclusions

The analysis and evaluation of delays is the basis of the contractual management of each project. A rigorous methodological approach is necessary, based on structured planning and the adoption of consolidated techniques scheduling and analysis of delays (schedule delay analysis). In particular, it is fundamental:

1. Plan in a structured and shared way.
   Well-structured initial planning, with the involvement of stakeholders, allows you to define a clear baseline, complete and realistic, fundamental for objectively measuring deviations and delays.
2. Apply recognized delay analysis methods.
   The analysis of delays must be based on structured methodologies, con il Critical Path Method (CPM) as the primary programming method, supported by schedule delay analysis techniques, in accordance with established AACE International guidelines.
3. Distinguish and quantify concurrent delays (concurrency).
   The analysis of delays must take into account the concomitance of causes (concurrency), which in the most complex cases represents one of the main difficulties in managing contractual relationships. The correct attribution of responsibilities between the client, contractor and subcontractors is essential to avoid prolonged disputes and to manage any requests for extension of time or financial compensation.
4. Integrate forensic planning into complex projects.
   Internationally, the use of forensic planning techniques has significantly improved the delay management and disputes. The adoption of structured tools forretrospective analysis of delays (come la Time Impact Analysis (TIA) o la Windows Analysis) allows us to precisely identify their origin and related consequences, facilitating the management of requests for extension of contractual times and prolongation costs.

The adoption of internationally recognized delay analysis methodologies, like those of AACE International (Rp. 29R-03 e RP 52R-06), represents an essential step to bridge the gap between global best practices and the Italian reality, still characterized by empirical approaches. A correct methodological approach not only facilitates the management of time extensions and contractual disputes, but it also helps to improve overall efficiency in managing complex projects.

Delay management integrates with other advanced project control tools, come l’EVM (Earned Value Management) and the Rashra (Quantitative Schedule Risk Analysis), which are explored in depth in other articles on this blog, in order to provide a complete vision of advanced project control methodologies.

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To learn more about planning and delay management techniques, A specialist course dedicated to project planning and scheduling is also available.