Disk of Knowledge

May 2006 - Construction Schedules

posted by Larry J Smith

Submitted by: Elton T. Cobb, P.E.

Introduction

History has shown that contractors preference can be changed by adopting closed specifications that direct implementation of better business practices, as exemplified by the Gantt Chart. Henry Gantt, a Maryland management engineer, invented the Gantt Chart to allow foremen to study the performance of their equipment. The chart was adopted by the military, who changed the focus from adjusting machine efficiency to managing the shipment of materials. Before World War II, about 12 companies used the Gantt Chart. After the war, there were about 1200 companies using Gantt Charts as a result of a military requirement to suppliers.

Obligations and Opportunities

Scheduling provisions are both an obligation and an opportunity. The contractor is obligated to prepare the schedule. The schedule is submitted to the architect or owner, establishing that project performance was agreed upon by all parties. For a contractor who schedules a two-year project for one and a half years, he forecasts a one-half year float. This scheduled finish date
exhibits the contractor’s intention to complete the project early and substantiates the right to receive prompt payment upon early completion. Federal law grants contractors the right to complete the project earlier than the contract completion date and the schedule forewarn the owner of an obligation for early payment.

Construction Management

Construction management has become much more sophisticated with network analysis of updates easily incorporated into computer schedules. Extended durations and changed conditions are recomputed in minutes. With an interactive scheduling procedure, the project’s time and the effect of changes to the project are instantly updated. The revised "what if" schedule predicts the consequences of significant changes to the as-planned "original" schedule. "What if" schedules are easy to generate with today s software, and managers should directly encourage interactive analysis as the construction norm.

Developing Schedule Specifications

Scheduling is a form of programmatic goal setting and feedback, which can increase productivity by up to 20%. Open scheduling specifications, such as the two paragraphs in the AIA specifications, allow flexibility to the contractor. But at the outset of the project, parties should clearly specify how performance will be measured, including the type of scheduling software, the number of activities, the update frequency, and the type of graphics. Experience has shown that the more detailed the specification, the better the chance to eliminate misunderstanding.

For large complex construction projects, scheduling software is of immense value as a planning tool, reducing uncertainty in managing the project. Similarly, closed specifications standardize
administrative procedures and reduce heated debates resulting from unplanned events. Insisting on a closed specification that dictates the updating requirement may be found by contractors to be annoying and meaningless. The Veterans Administration s Network Analysis System (Section 01311) is over a dozen pages long. Many construction projects do not require this amount of detail. A balance must be struck between more information versus more paperwork. It is not complex but efficient scheduling that reduces confusion, lessens conflict between the parties, and maintains focus on the project’s completion.

Clearly defined administrative procedures promote smooth contractual resolution, just as construction scheduling promotes harmonious project flow.

Scheduling specifications should address not only the format, updating, and cost loading; but procedures for justification of time extensions, float utilization, involvement of subcontractors,
and remedies for noncompliance.

Lack of specified administrative procedures can exacerbate the project efficiency, whereby contract administrators may generate excessive correspondence, meetings, delays, claims, or lawsuits.

We welcome your comments or feedback.

comment posted by Larry J. Smith on 06/11/06

Barry,

Thank you for your excellent comments on something that was not included in this article. "Resouce Loading" is the key to every schedule and every project that finishes "on time."

Resource loading (workers per day) is required per Specification Section 01312 and the Standard Data Exchange Format required per ER 1-1-11. It is the most single overlooked requirement in our scheduling specifications.

Absent knowing the number of workers per day on any given activity the Contractor and the Government are flying in the dark with no instrumentation. Most of the “late finishes” can be traced to insufficient workers per day and no single person “responsible” for monitoring the schedule. The Superintendent and the QAR need to know what activities are scheduled to start and finish on every day.

Our focus on “resource loading” has been discussed on the Disk of Knowledge Forums.

Readers can quickly locate topics on "resource loading" and "manpower loading" by entering your search words in the search window on the Forum. We have provided many tools for estimating the number of workers per day and some excellent spreadsheets showing manpower loading.

A brief description can be found at the URL listed below:

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comment posted by J. Barry Morley on 06/08/06

I noticed that your discussion on construction schedules did not cover "resource loading" requirements that should be part of NAS specifications. Another point is that most contractors balk at giving us realistic and detailed, resource loaded schedules on short duration contracts claiming that it is unnecessary. I disagree, the Government particularly needs to be confident that the selected contractor has the ability to perform in the allotted time, and the simplest and best way to gain this confidence is by proving their ability by providing a resource loaded schedule that is realistic and aceivable.

From a contract administration point of view most contractors do not want to "resource load" anything other than cost. Why? Because if the Government knows the details of the resources they plan to use, they can argue against unwarranted time extensions and eliminate the equally unwarranted extended overhead costs claimed by the contractor.
Specifications we use require resource loading for labor, equipment, materials, as well as cost. The value of true resource loading applies both to the contractor and the Government. The Government gets to fairly assess impacts they create by changes before the fact, and the contractor has little difficulty demonstrating the impacts and the costs associated. Negotiation become simpler and quicker.

I would appreciate your feedback on this comment.

Thanks.