Warning – Do not try these at home! Severe financial injury could result!
CONSTRUCTION DAMAGES
LABOR PRODUCTIVITY
As planned Impacted Schedule Analysis
The As-planned Impacted Schedule Analysis or Impacted As-planned Schedule Analysis has fallen into disfavor as a construction schedule delay method. However, versions of this technique has been employed by a few scheduling experts in certain construction schedule acceleration and lost labor productivity analyses in an attempt to fairly apportion each party’s (owner, designer and/or contractor) share of the overall impact to the contractor’s construction cost overruns due to lost craft labor productivity. This approach has been used in situations where the actions of the owner, designer and the contractor have adversely affected the construction project and where comparative analysis is needed to provide a reasonable measure and allocation of each party’s impact to the contractor’s direct labor cost overruns.
The chances of a damages expert being successful with this method are directly proportional to his/her skills as a damages, scheduling and testifying expert. The chances of a lay person or non-expert being successful with this method are not as good as is winning the Lotto.
In this method, can be performed in three steps or iterations as follows:
Step 1: The reasonable as planned schedule is first impacted with owner caused construction schedule delays and excusable delays (plus any negative delays for paid for acceleration) and a new or impacted completion date is calculated (negative days for paid-for acceleration are removed from the schedule in this analysis to avoid charging the owner twice for acceleration previously paid for via the change order process).
Step 2: After the owner-caused delays are set to zero, the reasonable as planned schedule is then impacted with contractor caused delays (plus negative delays for unpaid acceleration) and a second impacted completion date is calculated (negative days for unpaid acceleration are removed from the schedule in this step to avoid overstating the contractor’s schedule impacts).
Step 3: The reasonable as planned construction schedule is finally impacted with both owner- and contractor caused delays and excusable delays, as well as negative delays for paid for and unpaid acceleration, and a third impacted completion date is calculated.
The critical paths and activity sequences in each simulation are then verified to ensure that they are reasonable and logical. The results of the three as planned impacted simulations can then be used to apportion the amount of labor productivity loss attributed to the owner and contractor, assuming that concurrent delay or impact is apportioned equally.
Analytical Approach
The following approach might then be used to calculate the amount of relative impact attributed to the owner and contractor. In Figure 3, “A” represents discrete impact attributable to the owner, “B” is discrete contractor-caused impact, and “C” is impact caused jointly and equally by the contractor and owner and is concurrent impact. This pictorial presentation can be expressed algebraically as three equations with three unknowns so that A, B and C can be quantified.
Using three equations with three unknowns:
A + C = 23 Days
B + C = 39 Days
A + B + C = 51 Days
Solving for C:
A = 23 – C
B = 39 – C
Then:
(23 – C) + (39 – C) + C= 51
C – 2C = 51 – 23 – 39
- C = - 11
C = 11 Days
Solving for A:
A = 23 – C
A = 23 – 11
A = 12 Days
Solving for B:
B = 39 – C
B = 39 – 11
B = 28 Days
Thus, the owner caused 12 days of impact, the contractor caused 28 days impact, and the owner and the contractor share equal responsibility for 11 days of con-current impact. For these 11 days of concurrent impact which are not allocable between the owner and contractor, the owner is not entitled to liquidated damages, and the contractor is correspondingly not entitled to impact damages.
For the purpose of apportioning the pool of direct labor dollars, the owner is responsible for 100% of A, 50% of C, and 0% of B. Then the owner’s share of the impact can be quantified as follows:
OWNER’S SHARE OF LOST PRODUCTIVITY
= 1.0 (A) + 0.5 (C) + 0.0 (B) x 100%
A + B + C
= 1.0 (12) + 0.5 (11) + 0.0 (28) x 100%
51
= 17.5 x 100% = 34.3%
51
By difference, the contractor’s responsibility for direct labor cost overrun equals 65.7%.
METHOD SUMMARY
Experts are quick to disregard the as-planned impacted schedule analysis as a method of analyzing construction schedule delay. However, they should look closer at its application in construction labor productivity analysis and apportionment.
Contact Steve Holloway – Toll Free – at 888-545-0666 about your requirements
Holloway Consulting
Construction Schedule – Damages Experts
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International Toll Free: (888) 545-0666
Fax: (303) 716-0432
Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com
_______________________________________________________________________________________________________________
