Time For Change
Is it only complex [automated system] projects which require good time and project management? Of course not, however, the more complex [and/or automated] a project is the greater the need for a rigorous approach. Simple projects [conveyor transportation system] may generally be completed intuitively, that is, without any sophisticated project time management controls.
Another way to look at it is that - simple projects are carried out to a single completion date and without phased possession or completion dates, whereas complex projects, will include multiple key phased-in dates or sectional completion dates and with multiple possession [beneficial use] dates.
Cost, quality and time are the factors that typically determine project success, yet of all of these time is least understood and least often approached with rigor and with the support of formal models, benchmarks or tools.
In the tough current economic climate, project completion issues create an unnecessary risk to the bottom line, yet a lack of professionalism and rigor in managing the time aspect of major projects has long since been evident. One of the main issues is that on many construction projects, personnel with responsibility for time are often learning as they go along, although this is no fault of their own. Owing to a lack of formal professional training or accreditation, many have been self-taught, whilst others have transitioned into project management roles from other professional disciplines in construction, architecture, or engineering.
Small wonder, then, that time-related issues such as delays have such a disproportionate impact when they go wrong. Intuition and experimentation is not enough. It is imperative to continue to push for best practice in terms of tools for better project management and proper training for project managers and other key people in understanding the time dynamic and standards for time management.
Understanding Delay and Disruption
Delay: is anything which impacts timely completion of a project or project stage.
Disruption: is the mess which has occurred by trying to deliver to time, which may or may not have a direct relationship with project delay.
It has been the subject of litigation for many years and, until 20 years ago, was often a case of complex composite ‘global claims’ which were hard to disentangle for lawyers and had little substantiation of cause and effect. Since that time, however, the rise of computer-based planning, recording and communication has changed the landscape completely to the point where full, forensic analysis of the causes of and responses to delays can be conducted. While this provides a context for the avoidance of some lawsuits, it provides the fodder for others.
Without effective time management there can be no effective resource management, cost management, nor allocation of liability for slippage, its recovery, or accountability.
Dispute Process
Disputes around delay and disruption can come from two directions – either from an employer seeking damages from delayed project completion and the consequences of that, or from a contractor needing to secure what it sees as a legitimate extension of time (EOT) versus an original contract agreement or compensation for a disruption to its normal working methods which has lowered its speed and efficiency, resulting in delays.
From whichever direction the dispute originates, the process of dispute resolution follows roughly the same path.
The first stage of delay and disruption analysis is for the contractor to prepare (possibly in conjunction with its advisors) its contractual entitlement for more time, and usually more money, linked to delays arising within the contract.
Having prepared detailed evidence and given the other party time to consider that evidence and respond accordingly, the parties may reach agreement. If they have not, the matter may be referred to adjudication.
The strategic intent of the adjudication process is to resolve construction disputes in a quick and economical manner. However, it is fair to say that a raft of consultants make a very good living from supporting clients through this stage, and many solicitors and lawyers now get involved to help them through the legally sticky areas, such as ‘jurisdiction.’ What was designed to be a simple and cheap process has become anything but that.
If the adjudication process fails or the contract demands a different route to dispute resolution, litigation or arbitration are the next options. Arbitration is a slightly more discreet option than litigation, which is conducted in the public domain with significant potential media scrutiny and associated reputational risk. This is full legal territory with representation from law firms, use of expert witnesses, and with judges and lawyers in the driving seats.
Planning and project management come under serious scrutiny during any process of litigation or arbitration – and the information that each party can provide, in combination with the associated analysis of information, is central to the outcome. Analysis of delay-related information and facts is often the starting point for a consulting advisor, as well as the focus of legal proceedings. Understanding the role and importance of that information is fundamental to putting better practices and training in place to ensure you can manage delay and disruption risks more effectively.
An effective time management strategy will recognize that time expires at a regular and consistent rate, from inception to completion, whether it is used effectively, or not used at all. Accordingly, an effective planning strategy will demonstrate the most effective use of available time, in all circumstances.
Report Authors
David Tyerman is Managing Director of Athena Project Services, david.tyerman@athenaprojectservices.com a specialist provider of training and consultancy services relative to planning, scheduling and project controls. He is a member of the CIOB team who prepared the Guide and Chairman of the working group which is currently preparing the Project Time Management qualification and accreditation structure.
Paul Bamforth is Managing Director of Asta Development, enquiries@astadev.com a leading international developer of project, and resource management software. He has been an evangelist for how Asta’s flagship project management solution, Asta Powerproject, plays a key role in implementing good project management practice.
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