DELAY

• DELAY can be defined as the time during which some

portion of a project or an activity under a contract has
been extended beyond what was originally planned due
to some unanticipated circumstances.
• DELAY may or may not be due to the changes(s)
imposed on the scope of works agreed under a Contract.
• DELAY may or may not be to a Critical activity.
• DELAY may or may not impact the Critical path of the
project.
• DELAY may or may not impact the established scope
completion date or shift the agreed completion date
under the Contract.
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 IMPACT OF A DELAY
To the Owner / Employer:
 Delay to the contract completion leads to cost overrun.
 Delay can lead to loss of income due to differed cash flow.
 Delay can lead to penalty from the customer / end user.
 Assessment of the cause of delays allocate entitlement for liquidated
damages for the Contractor.

To the Consultant and / or Construction Manager:

 It would have a negative impact and affect their project’s control capacities.
 Would result in additional responsibility due to the need for assessment of
the delays.
 The delays from a project can at times impact their other ongoing or
planned projects.

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 IMPACT OF A DELAY
To the Contractor:
 Delayed completion date would result in additional overheads.
 Assessment of the cause of delays allocate entitlement for delay penalty
by the owner.
 Delay in completion and handing over may require extended warranty /
liability.
 It can lead to differed cash flow and may lead to need for extra
financing.

To the Bonding companies / Sureties:

 Delay to lead to additional burden as they have to indemnify the
contractor’s performance.
 Delays can lead to additional claims and may result in disputes.
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 CAUSES FOR A DELAY
Owner / Owner’s representative Caused Delays:
• Failure to provide timely clearance / access to the Contractor.
– Delay in issuing Notice to Proceed.
– Failure to provide the right of access to project site.
• Failure to provide required right of way.
• Delay in the supply of Materials.
• Suspension of work.
• Failure to make and confirm timely decisions.
• Changing the scope requirements or designs.
– Change Orders or Variation Orders.
• Ordered Changes (Due to instructions)
• Constructive Changes (Due to situations)
– Changed Project Conditions.
• Subsurface conditions.
• The accessibility conditions.
• Stoppage of work / Stop work Orders.
• Failure to properly coordinate multiple contractors.

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 CAUSES FOR A DELAY
Owner / Owner’s representative Caused Delays:
• Interfacing or obstructing the Contractor’s performance.
– Direct Interference.
– Early Occupancy.
• Requiring the work to be done out of normal work sequence.
• Defective scope definitions (Plans & Specifications).
– Errors and Omissions.
– Lack of coordination.
– Ambiguity in specifications or designs.
• Failure to provide drawings on schedule.
• Unreasonable delay in review and approval of Shop drawings and
Materials.
• Improper or delayed change orders.
• Not providing adequate supervision/inspection for timely work.
• Failure to accept the completed work in a timely manner.
• Unreasonable / delayed interpretation of contract requirement.
• Unreasonable delay in issuing orders to proceed.
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 CAUSES FOR A DELAY
Contractor Caused Delays:
• Delayed or Slow mobilization.
• Failure to properly Staff / equip the project to match the schedule.
• Poor workmanship or unacceptable finished work (NCR & Rework).
• Delay in submission or re-submission of Shop drawings, method
statements or material submittals.
• Failure to provide / coordinate or manage:
– Required level of Productivity.
– Adequate and quality supervision.
– Poor project planning.
– Failure to schedule the resources.
– Award and mobilize the right sub-contractors.

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 CAUSES FOR A DELAY

Contractor Caused Delays:

• Cash Flow Limitations.
– Slow to pay the sub-contractors and suppliers.
– Inadequate Financing.
• Failure to make reasonable site investigations.
• Delay in ordering or delivering the correct Materials.
• Default, Failure or abandonment.

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 CAUSES FOR A DELAY
Force Majeure - Delays Not Caused by a Party to
the Contract:
• Acts of God.
– Natural Calamities.
– Adverse Weather conditions.
• Acts of Government.
– Changes in Law and regulations.
– Change in Policy and procedures.
• Labor Strikes.
• Acts of the Public Enemy.
– War.
– Riot.
– Crime.
- Force majeure is not intended to excuse negligence or other malfeasance of a party, as where
non-performance is caused by the usual and natural consequences of external forces, or where the
intervening circumstances are specifically contemplated.
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 DELAY TYPES

Critical Delay: A delay that affect the critical path duration of the
project whereby it provides eligibility to recover damages for extended
performance or provide extension of time. The late completion of the
project must have been caused directly by the events and problems alleged
in order to recover extended performance cost or time extension due to
such critical delays.

Non critical Delay: These delays occur within a schedule but do

not extend the overall project completion date mostly because the delay
has occurred to a non critical activity with float. Delays which merely eat
into the float have no direct effect on the completion date and hence the
contract would not provide any compensation or EOT for such delays.
The ownership of the float is with the Project.

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 DELAY TYPES

Independent Delays: These are isolated or stand alone delays

which are not resulting from any previous delays. Hence the effect of an
independent delay on the completion date of a project can easily
calculated. These delays can lead to serial delays.

Serial Delays: This type of delays occur exclusively from previous un-
related delays to predecessor activities. Serial delays occur in sequence
consecutively and not overlapping with each other on a particular network
path. Determining the timing of these delays with respect to other delays is
the primary issue. As the individual delays within a series do not conflict
and so the determination of the overall effect on the project’s completion
date is relatively easy.

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 DELAY CLASSIFICATION
DELAYS

NON EXCUSABLE EXCUSABLE DELAY PACING DELAY

COMPENSABLE NON COMPENSABLE

CONCURRENT DELAY NON CONCURRENT

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 DELAY CLASSIFICATION
Non Excusable Delays (N/N): These delays are caused by the
actions or inactions by the contractor or any of the sub-contractors,
suppliers or any other party who is in a contractual relationship with the
contractor.

The Contractor would not be entitled for any Extension of Time.

Excusable Delays: These delays are not a result of the Contractor’s

actions or inactions, but occur as a result of events beyond the control of
the Contractor.

Such delays entitle the contractor to an Extension of Time. This is subject to

the contractual completion date of the project is affected as a result of the
occurrence of the excusable delay event. This can further fall under a
compensable or a non-compensable category of delay.
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 DELAY CLASSIFICATION

Excusable Non Compensable Delays(E/N): These

delays are caused by the actions of neither the Contractor and Employer
and both the parties are affected by these delays.

Generally both parties are precluded from the recovery of the delay
damages and each party bears the cost incurred as a result of non
compensable delays.

Only the EOT is warranted without any compensation to eliminate the

Contractor’s liability for liquidated damages.

Examples for this category may include Force majeure (Acts of nature,
adverse weather conditions, labor strikes etc.)

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 DELAY CLASSIFICATION

Excusable Compensable Delays(E/C): This category of

excusable delays which are generated as a result of event (s) that are within
the control of the Employer, one of his employees or another agent
(Engineer / Designer / PMC / another Contractor).

In most of these cases , the Contractor is entitled for an extension of time

as well as prolongation costs that may include all his head office support,
site management expenses, disruption costs etc..

Examples for this category may include delay in the review and approval of
material submittal, method statement, shop drawings, change order, Delays
by other contractors, Suspension of work to the convenience of the
Employer etc.

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 DELAY CLASSIFICATION

Concurrent Delays: These are delays occurred as a net resultant

of two or more delay events that share the same time and fall in parallel
critical paths. Should any of these delays had occurred independently the
project completion date would have been affected. These delays might or
might not be related to each other.

Delay on a critical path is not considered concurrent with any other delay
off the critical path arising in an overlapping period.

If concurrent delays arise from two different parties say Contractor and
Employer, it may result in issuance of excusable non-compensable EOT,
where the Employer furnishes time and gives up liquidated damages.
However, compensation is highly dependant on the situation, and the claim
analyst must be well aware of each case independently.

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CONCURRENT DELAY

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 DELAY CLASSIFICATION

Concurrent Delays:
Only the overlapping duration is considered concurrent and analyzed
according to the concurrent delays criteria. The non overlapping portions of
each delay are to be treated as individual delay and analyzed accordingly.

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CONCURRENT DELAY
Listed below are the criterion, all of which be valid to treat a delay as a
concurrent delay.
1. Two or more delays occurring in a project must be independent
2. Either of these would have delayed the project if others did not exist.
3. These delays are a contractual responsibility of different parties, one of
which may be force majeure.
4. The alleged concurrent delays must be involuntary.
5. The work associated with each of these delays must be substantial and
easily curable.
6. These delays each of which if absent would independently delay the
critical path.
7. These delays must occur or impact the same time analysis period.

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 CONCURRENT DELAY

NON EXCUSABLE DELAY

EXCUSABLE DELAY

EXCUSABLE NON COMPENSABLE DELAY

If a Non excusable delay occurs concurrently with an Excusable delay the

resultant would be an Excusable Non compensable delay.
Only Extension of Time would be granted.

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 CONCURRENT DELAY

EXCUSABLE COMPENSABLE DELAY

EXCUSABLE NON COMPENSABLE DELAY

EXCUSABLE NON COMPENSABLE DELAY

If an Excusable compensable delay occurs concurrently with an Excusable

Non compensable delay the resultant would be an Excusable Non
compensable delay.
Only Extension of Time would be granted.
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 CONCURRENT DELAY

EXCUSABLE COMPENSABLE DELAY

EXCUSABLE COMPENSABLE DELAY

EXCUSABLE COMPENSABLE DELAY

If an Excusable compensable delay occurs concurrently with another

Excusable compensable delay the resultant would be an Excusable
compensable delay.
The Contractor would be eligible for EOT & Delay damages.
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 CONCURRENT DELAY

EXCUSABLE DELAY

EXCUSABLE COMPENSABLE DELAY

EXCUSABLE COMPENSABLE DELAY

If an Excusable delay occurs concurrently with an Excusable compensable

delay the resultant would be an Excusable compensable delay.
The Contractor would be eligible for EOT & Delay damages.

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 DELAY CLASSIFICATION

Pacing Delays: This is a new type of delay witnessed in the

construction claims. It is addressed as legitimate business decision rather
than being contractual, where the Contractor’s management takes a
decision to de-accelerate non critical areas, due to the Employer’s delay or
Employer’s expected delay in a critical activity for purpose of keeping pace
with the Employer’s delays.

It is usually a disputed issue as there is no contractual cover for such a

decision.

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 DELAY ANALYSIS
Need for a Delay Analysis:
Amount of delay is a measurement of time and to do so a standard has to be
established to measure against.
It is very essential to have an established criteria to assign the responsibility for
each delay.
Any claim submittal has to be substantiated with proper documentation and
supporting documents that prove the cause and effect.

Steps in Delay Analysis:

Clearly record and list the delays as they occur.
Define the cause or the event that gave rise to the delay.
Relate the causes to each category of delay.
Apply the delay event to reflect the delay to the time schedule and determine
the impact on the contractual completion date.
Evaluate any other impact of this delay to any other deliverable.
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 DELAY ANALYSIS TECHNIQUES
There are several techniques to analyze the delays, but the most
commonly used are:
Total Time Approach
(As planned Vs. As built comparison method)
What If Approach (The impacted as planned method)
But for Approach (Collapsed as built method)
Windows Approach
(The contemporaneous period analysis method)

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 AS PLANNED Vs. AS BUILT METHOD
The Basis: This is a retrospective method of delay analysis that compares the
As-planned duration of an activity / project on the original (baseline)
schedule with the As-built duration for the same activity / project on the As-
built schedule.

It assumes that the party adopting / implementing this method did not
cause any delay and all the delays have been caused by the other party.

Steps:
 Develop the baseline (As planned) schedule.
 Update the As built schedule.
 Add all the delays and their reasons to the As built schedule.
 Mathematically calculate the difference between the dates as delay.

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AS PLANNED Vs. AS BUILT METHOD

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 AS PLANNED Vs. AS BUILT METHOD

Example:
A Project has Baseline (As-planned) schedule for 10 months.
During execution the As-built schedule is 24 months.
So the total tracked delay = 14 months.

Analysis:
Identify all the delays and allocate them between Contractor & Owner.
If we assume Contractor caused delays = 10 months
And the Owner caused delays = 14 months
Since both the parties were responsible for 10 months of delay
The additional delay caused by the Owner = 14-10 = 4 months.
The remaining delay is caused by the Contractor = 14-4 = 10 months.

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 AS PLANNED Vs. AS BUILT METHOD

Strengths:
 Simple to use and understand.
 Good for negotiations only.
 Straight forward and easy to apply.
 Simple mathematical difference calculations.

Weaknesses:
 Consider only one party delays.
 Do not consider the delay type or the timing of occurrence.
 Assumes the baseline is accurate.
 Might be rejected by Arbitrators or Courts.
 Can not deal with Concurrent delays.

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 IMPACTED AS PLANNED METHOD
The impacted as-planned method of delay analysis is a technique which
forecasts or predicts a delay’s effect on a project’s completion date.

Implementation of the impacted as-planned delay analysis involves

identifying project delays or changes and then inserting or adding activities,
which represent these delays or changes, into the baseline construction
schedule.

The resulting schedule demonstrates the effect of the delays or changes on a

project’s completion date.

Conduct the analysis of the delay one by one and record the impact. To
obtain the net delay do mathematical sum between the baseline completion
date and the impacted as planned schedule completion date.

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IMPACTED AS PLANNED METHOD

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 IMPACTED AS PLANNED METHOD

Example:(If prepared by the Contractor)

A Project has Baseline (As-planned) schedule for 10 months.
During execution the As-built schedule is 24 months.
So the total tracked delay = 14 months.
Upon impacting the baseline schedule with Owner delays, the project duration
would become = 22 months.

Analysis:
Owner caused delays = 22-10= 12 months
(This would be compensable delays)
Contractor caused delays = 14-12 = 2 months.
(This would be entitled for Liquidated damages).

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 IMPACTED AS PLANNED METHOD

Example:(If prepared by the Owner)

A Project has Baseline (As-planned) schedule for 10 months.
During execution the As-built schedule is 24 months.
So the total tracked delay = 14 months.
Upon impacting the baseline schedule with Contractor delays, the project
duration would become = 20 months.

Analysis:
Contractor caused delays = 20-10= 10 months
(This would be entitled for Liquidated damages).
Owner caused delays = 14-10 = 4 months.
(This would be compensable delays)

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 IMPACTED AS PLANNED METHOD

Strengths:
 Can be prepared quickly provided required data is available.
 Easy mathematical calculations to represent net delays.

Weaknesses:
 It assumes that the as planned schedule is perfect.
 It assumes that the Contractor always follow the original plan.
 The party doing the analysis is responsible for the delays.
 As planned logic usually amplifies the effect of delays because of
assumptions the planner may take during planning.
 It tends to ignore what actually happened on the project. Some Arbitrators
consider this method as argumentative rather than a analytical technique.

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 COLLAPSED AS BUILT METHOD

Have the As built schedule completed including all

the delay activities. Analyze and remove all the
Owner caused delays and collapse the schedule.
The result is assumed as the schedule the
Contractor should have followed during the
course of execution if the Owner had not caused
any delay.
Using the resultant delay the Contractor caused
delays are computed.
The but for schedule results from removing all the
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COLLAPSED AS BUILT METHOD

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 COLLAPSED AS BUILT METHOD

Example:
A Project has Baseline (As-planned) schedule for 10 months.
During execution the As-built schedule is 24 months.
So the total tracked delay = 14 months.
After removing Owner caused delays, the project duration would become = 20
months.

Analysis:
Owner caused delays = 24-20= 4 months
(This would be compensable delays)
Contractor caused delays = 20-10 = 10 months.
(This would be entitled for Liquidated damages).

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 COLLAPSED AS BUILT METHOD
Strengths:
 Reflects the cause and effect on the as built schedule that represents the
actual sequence of work.
 Eliminates the use of the base line schedule, which is more theoretical.
 It is more reliable and hence more accepted.

Weaknesses:
 Considers nobody to be blamed but the Owner.
 Does not put the delays in timely sequence as and when they occur.
 This can also be considered argumentative rather than analytical.
 Not as easy to prepare as it is shown.

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 THE WINDOWS APPROACH

Steps to carry out this analysis:

Prepare your As planned baseline schedule ready.
Decide on a reliable window period to conduct analysis.
Update the actual project progress and the delay activities to a copy of the
original baseline schedule for the first window period.
Calculate the schedule to analyze the delays for the first window period.
Segregate the Employer caused, Owner caused and the concurrent delays
for the first window period.
Copy the schedule to be used as a baseline for the second window period.
Continue to repeat and record the results till the end of the project.

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 THE WINDOWS APPROACH

Sample data Output

DELAYS
Project Slip
Update Schedule
Completion During REMARKS
Number Month Non Excusable
Months Period Compensable
Compensable Compensable

0 0 10 0 0 0 0
1 2 11.5 1.5 0 0 1.5
2 4 14 2.5 0 2.5 0
3 6 14 0 0 0 0
4 8 20 6 6 0 0
5 10 22 2 1 0 1

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 THE WINDOWS APPROACH
Strengths:
 Most controversial and analytical method, therefore most claim reviewer
consider its results most reliable.
 Analyzes all types of delays.
 Allow for complying with FIDIC clauses, specially interim claims.
 Tends to be very accurate.
 Puts all delays in the context of time, place and actual conditions of the
project.
 Periodical runs allows easier documentation.

Weaknesses:
 The most time consuming schedule delay analysis.
 Not as easy as it sounds to be utilized.

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