Acceleration

RICS Practice Standards, UK

1st edition, guidance note

Acceleration1st edition, guidance note

This guidance note summarises what is meant by ‘acceleration’ in theconstruction industry, how acceleration can be achieved and how itcan be valued.

The focus is on acceleration requested by the employer and thequantity surveyor’s role in providing advice on the practicalities, risksand costs involved, particularly, reviewing and commenting on anyacceleration quotation provided by a contractor.

Guidance is given under the following headings which map to theAssessment of Professional Competence (APC):

• General Principles (Level 1: Knowing)• Practical Application (Level 2: Doing)• Practical Considerations (Level 3: Doing/Advising).

rics.org/standards rics.org/standards

GN 80/2011Part of the RICS QS & Construction Standards

AccelerationRICS guidance note

1st edition (GN 80/2011)

Published by the Royal Institution of Chartered Surveyors (RICS)

Surveyor Court

Westwood Business Park

Coventry CV4 8JE

UK

www.ricsbooks.com

No responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication canbe accepted by the authors or RICS.

Produced by the QS & Construction Professional Group of the Royal Institution of Chartered Surveyors.

ISBN 978 1 84219 686 1

© Royal Institution of Chartered Surveyors (RICS) June 2011. Copyright in all or part of this publication rests with RICS, and save by prior consentof RICS, no part or parts shall be reproduced by any means electronic, mechanical, photocopying or otherwise, now known or to be devised.

Typeset in Great Britain by Columns Design XML Ltd, Reading, Berks

Printed in Great Britain by Annodata Print Services, Dunstable, Beds

Contents

RICS guidance notes 1

Introduction 2

General principles: Level 1 – Knowing 3

1.1 Acceleration agreements 31.1.1 Acceleration under the JCT Standard Building Contract 31.1.2 Acceleration under the NEC3 Form of Contract 31.1.3 Acceleration under the ICE Conditions Contract, 7th edition 41.1.4 Separate agreements to accelerate 41.1.5 Implied instructions to accelerate 41.1.6 Does a contractor have a duty to accelerate in any event? 41.1.7 Risk allocation 51.1.8 When is a project ‘complete’? 6

Practical application: Level 2 – Doing 7

2.1 How can acceleration be achieved? 72.1.1 Extended working hours 72.1.2 Increased resources 72.1.3 Alterations to the programme 72.1.4 Introduction of temporary works 82.1.5 Working methods 82.1.6 Specification changes 82.1.7 Design changes 82.1.8 Work scope changes 8

Practical considerations: Level 3 – Doing/Advising 9

3.1 Factors to consider when suggesting/agreeing acceleration measures 93.1.1 Extended working hours 93.1.2 Increased resources 103.1.3 Alterations to the programme 103.1.4 Introduction of temporary works 103.1.5 Working methods 103.1.6 Changes to the specification or design 113.1.7 Work scope changes 11

3.2 Acceleration quotations 113.2.1 Basic costs 113.2.2 Allowance for risk 123.2.3 Lump sum or itemised quotations? 123.2.4 Assessment based on actual cost 12

3.3 Conclusions 12

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Acknowledgments

RICS would like to thank the following for their contributions to this guidance note:

Lead author

Christopher Linnett

Working Group

Chair: Andrew Smith (Laing O’Rourke)

Alpesh Patel (APC Coach Ltd)

Christopher Green (Capita Symonds Ltd)

David Cohen (Amicus Development Solutions)

Duncan Cartlidge (Duncan Cartlidge Associates)

Jim Molloy (Department of Health, Social Services and Public Safety NI)

John G Campbell (BAM Construction Limited)

Kevin Whitehead (McBains Cooper Consulting Limited)

Michael T O’Connor (Carillion Construction Limited)

Michelle Murray (Turner & Townsend plc)

Roy Morledge (Nottingham Trent University)

Stuart Earl (Gleeds Cost Management Limited)

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RICS guidance notes

This is a guidance note. It provides advice toRICS members on aspects of their work. Whereprocedures are recommended for specificprofessional tasks, these are intended torepresent ‘best practice’, i.e. procedures whichin the opinion of RICS meet a high standard ofprofessional competence.

Although members are not required to follow theadvice and recommendations contained in thenote, they should note the following points.

When an allegation of professional negligence ismade against a surveyor, a court or tribunal is likelyto take account of the contents of any relevantguidance notes published by RICS in decidingwhether or not the member had acted withreasonable competence.

In the opinion of RICS, a member conforming tothe practices recommended in this note shouldhave at least a partial defence to an allegation ofnegligence if they have followed those practices.However, members have the responsibility ofdeciding when it is inappropriate to follow theguidance.

Alternatively, it does not follow that members willbe found negligent if they have not followed thepractices recommended in this note. It is for eachsurveyor to decide on the appropriate procedure tofollow in any professional task. However, wheremembers do not comply with the practicerecommended in this note, they should do so onlyfor a good reason. In the event of a legal dispute, acourt or tribunal may require them to explain whythey decided not to adopt the recommendedpractice. Also, if members have not followed thisguidance, and their actions are questioned in anRICS disciplinary case, they will be asked toexplain the actions they did take and this may betaken into account by the Panel.

In addition, guidance notes are relevant toprofessional competence in that each membershould be up to date and should have knowledgeof guidance notes within a reasonable time of theircoming into effect.

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Introduction

What is ‘acceleration’?

This guidance summarises what is meant by‘acceleration’ in the construction industry, how, inpractice, acceleration can be achieved and how itcan be valued. ‘Acceleration’, when used inconnection with construction contracts, generallyrefers to increasing the originally planned or currentrate of progress of the works so as to complete theproject earlier than would otherwise be the case.

A contractor on a construction project may want tocomplete the project early to reduce site runningcosts or free up key site staff to work elsewhere, ormay want to accelerate in order to ensurecompletion by the contract completion date, so asto avoid liability for liquidated damages.

An employer may want a contractor to accelerateprogress in order to avoid the building beinghanded over late. In many cases, the completiondate for a project is crucial to the employer and anydeferment of that date may have very seriousrepercussions. In these circumstances, it may be inthe employer’s best interests to compensate thecontractor for any additional costs incurred inaccelerating the works, rather than to face the costconsequences of the building not being ready whenrequired and also a claim from the contractor forloss and expense in the form of prolongation costs.

Some of the points made in this guidance noteapply equally, whether the acceleration is instigatedby the contractor or the employer, but the focus ison acceleration requested by the employer.

It is likely that, regardless of the form of contract ortype of acceleration agreement, an employerconsidering acceleration will look to the quantitysurveyor to provide advice on the practicalities,risks and costs involved. In particular, it is likely tofall to the quantity surveyor to review and commenton any acceleration quotation provided by acontractor.

Guidance is given under the following headings,which map to the Assessment of ProfessionalCompetence (APC):

+ General Principles (Level 1: Knowing)

+ Practical Application (Level 2: Doing)

+ Practical Considerations (Level 3: Doing/Advising).

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General principles: 1 (Knowing)

Guidance is given within this section in respect of:(a) how acceleration is dealt with in the main formsof contract currently in use; (b) separateacceleration agreements; and (c) certain generalpoints relating to all acceleration agreements. Thereader is advised to check the precise wording ifworking with earlier or later versions of thestandard forms that are not specifically reviewed inthis guidance note.

1.1 Acceleration agreements

1.1.1 Acceleration under the JCT StandardBuilding Contract 2005

Acceleration is dealt with in Schedule 2 of the JCT2005 standard form of contract, which deals withvariation quotations and acceleration quotations.

Paragraph 2.1 of Schedule 2 states that:

‘If the Employer wishes to investigate thepossibility of achieving practical completionbefore the Completion Date … the Architect/Contract Administrator shall invite proposalsfrom the Contractor in that regard.’

When reading this clause, it should be rememberedthat the term ‘Completion Date’ may be the originaldate for completion, as stated in the ‘ContractParticulars’ (which are set out at the front of theJCT form), or a later date due to the award of anextension of time under clause 2.28. Therefore, anemployer who ‘wishes to investigate the possibilityof achieving practical completion before theCompletion Date’ may simply be seeking to havethe works finished by the original date ofcompletion despite having caused delays for whichit is liable.

If a contractor receives an invitation to makeproposals under paragraph 2.1, it must eitherprovide an ‘Acceleration Quotation’ or explain whyit would be impracticable to achieve an earlycompletion of the works.

The ‘Acceleration Quotation’ must identify theamount of time that can be saved and the amountof the adjustment to the ‘Contract Sum’ that thecontractor would require. The quotation must

include direct costs, consequential loss andexpense and an allowance for the cost of preparingthe quotation.

The quotation must be provided within 21 days(paragraph 3.1) unless otherwise agreed and remainopen for acceptance for 7 days (paragraph 3.2).The start date is the later of the date of receipt ofthe invitation by the contractor or the date itreceives sufficient information to enable a quotationto be prepared (paragraphs 3.1.1 and 3.1.2).

On many projects, a period of 28 days to agreeacceleration may be too long. If an employer issufficiently concerned about the completion datethat it invites the contractor to quote foraccelerating, it may be unlikely that it will want tosee a month or more go by before any action istaken.

The time periods for the production andacceptance of a quotation may be varied byagreement (paragraph 3.3) and so this time periodmay be reduced but it is important to note that anill-conceived acceleration agreement may wellresult in at least one of the parties sufferingsignificant unrecoverable additional costs and maylead to disagreement and dispute.

Therefore, a balance should be struck betweenallowing as much time as possible for accelerationmeasures to be effective and allowing sufficienttime to ensure that the agreement is properlythought out.

1.1.2 Acceleration under the NEC3 Form ofContract

Acceleration is referred to at ‘Core Clause’ 36 ofthe June 2005 edition of the NEC3 standard formof contract.

Under clause 36.1 the project manager mayinstruct the contractor to submit an accelerationquotation. As with the JCT form, the stated aim ofacceleration is to achieve completion before ‘theCompletion Date’. The ‘Completion Date’ may bethe original date stated in the ‘Contract Data’ (thefinal section of the NEC form) or a later reviseddate arising out of an extension of time award.

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Unlike the JCT acceleration clause it is not for thecontractor to state what acceleration it can achieve;under clause 36.1 of the NEC it is the projectmanager who informs the contractor of the reviseddate, or dates, that it is required to achieve.

Following receipt of an instruction, the contractormust provide a quotation and a revised programmeshowing how it can achieve the early completiondate(s). The contractor may decline to quote but, ifit does, it must state why (clause 36.2). Presumablythe usual reason for declining to quote will be thatthe contractor considers the revised dates are notachievable.

1.1.3 Acceleration under the ICE ConditionsContract, 7th edition

Acceleration is referred to at clause 47(3) of the ICEConditions Contract, 7th edition. Clause 47(3)provides that the employer may request thecontractor to complete the works earlier than ‘thetime or extended time for completion prescribed byClauses 43 and 44 as appropriate’. Clause 43refers to the completion date in the Appendix to theForm of Tender (which is a standard documentprovided at the back of the contract); clause 44refers to extensions of time.

If the employer requests the contractor to completeearly and the contractor agrees, then ‘any specialterms and conditions of payment shall be agreed… before any such action is taken’.

1.1.4 Separate agreements to accelerate

If there is no mention of acceleration in the contractthat does not mean that the employer cannot askthe contractor to accelerate. It is always open tothe parties to agree additional or separatecontractual terms and an acceleration agreementcan be entered into whether expressly envisagedunder the construction contract or not.

However, in order to produce a workable andreasonably comprehensive acceleration agreement,the parties must consider and take account of awide range of possibilities and permutations andmust agree who carries the risk for each situationthat may arise. This is likely to take some time tosort out and, if parties cannot reach an agreementin a relatively short space of time, the opportunityto accelerate may be lost. For every day that it

takes to reach an agreement the project is driftingever closer to the overrun that acceleration wasintended to avoid.

That is not to say the parties should rush into anagreement. As stated above, an ill-conceivedand/or incomplete acceleration agreement may wellresult in at least one of the parties sufferingsignificant unrecoverable additional costs and maylead to a major dispute.

1.1.5 Implied instructions to accelerate

An employer may be under severe pressure to havea building completed by a particular date and afailure to meet that date may have serious or evencatastrophic consequences. It is, therefore, notsurprising that employers occasionally tellcontractors that the project must be completed andhanded over by the completion date, come whatmay. The contractor may point to the extension oftime clause in the contract but an employer who isunder pressure may say: ‘I am not interested inextensions of time. You absolutely must finish bythe completion date, whatever it takes andwhatever it costs.’

It may be argued that a statement along these linesshould be deemed to be an implied instruction toaccelerate. Whether a court of law would agreewith this argument is a moot point. If a contractorthinks it is being asked to take action to acceleratethe works it would be well advised to clarify thesituation rather than to take action in the belief thatadditional costs will be reimbursed. Equally,professional advisers to an employer making astatement like this ought to seek to bring clarity tothe situation.

1.1.6 Does a contractor have a duty toaccelerate in any event?

There is a long-established English common lawprinciple that a party has a duty ‘to take allreasonable steps to mitigate the loss consequenton the breach’ and this duty debars that party‘from claiming any part of the damage which is dueto his neglect to take such steps’ (BritishWestinghouse Electric and Manufacturing Co Ltd vUnderground Electric Railways Co of London Ltd[1912] AC 673).

There also may be an express contractual dutyimposed upon a contractor to mitigate delay. In theJCT 2005 Standard Building Contract, the

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contractor must ‘constantly use his bestendeavours to prevent delay … however caused,and to prevent the completion … being delayed orfurther delayed beyond the relevant CompletionDate’ (clause 2.18.6.1). The same duty is imposedon sub-contractors operating under the JCT 2005Standard Building Sub-Contract at clause 2.18.6.1and similar provisions are found in many otherconstruction contracts.

Therefore, it may be thought that a contractor/sub-contractor has a duty to accelerate the progress ofthe works to recover delays (‘mitigate the loss’),even when the delays have been caused by theemployer.

However, in the case of British Westinghousereferred to previously, it was held that the duty tomitigate does not impose ‘an obligation to take anystep which a reasonable and prudent man wouldnot ordinarily take in the course of his business’.Therefore, there is no obligation on a contractor totake any steps to recover delays which areasonable and prudent contractor would notordinarily take. It is suggested that on this authority,a contractor would not be obliged to take anysignificant risks and/or incur any significantadditional costs in an attempt to recover delayscaused to the project by the employer.

The specific duties imposed by the JCT standardform of contract clearly do not require a contractorto accelerate the works. The clause referred toabove imposes a duty on the contractor to ‘preventdelay’ and to prevent ‘further delay’ but it does notimpose a duty to accelerate to recover delays.

Therefore, a contractor does not have a generalduty to accelerate the works to recover delayscaused by the employer. However, a contractormay well decide to accelerate progress, at its owncost, in order to recover any delays it has caused,so as to avoid liability for liquidated andascertained damages.

1.1.7 Risk allocation

If a contractor provides a fully detailed accelerationquotation, setting out precisely which resources itintends to increase and what extra hours it intendsto work, and if that quotation is accepted by theemployer, and if the contractor duly provides theextra resources and works the extra hours, who isresponsible for the additional costs if, in the event,there is no acceleration achieved?

The standard forms of contract referred to abovedo not address this question. They provide terms tofacilitate an acceleration agreement to be made butdo not say who carries the risk if the earlycompletion date is not achieved.

Such an outcome may, at least initially, be thoughtto be unlikely. If the resources and hours workedare increased, for example, then the rate ofprogress of the works ought to, and is perhapshighly likely to, increase. However, as explained insection 3.1, there are a number of reasons whyacceleration measures may not work and there maybe other delay events that occur after theacceleration agreement is entered into, which makethe early completion date unachievable.

It is for this reason that great care must be takenwhen entering into acceleration agreements. If theemployer wants the contractor to provide awarranty that the acceleration measures will besuccessful, it must make that clear when invitingthe contractor to provide a quotation. This is likelyto lead to a relatively high price being quoted,because the contractor will have to price in the riskof failure.

If an employer does not want to pay a premiumprice, it could accept that the contractor would notcarry the risk of failure to achieve acceleration. Inthis case, the employer should firstly ensure thatthe proposed acceleration measures have a highchance of succeeding and secondly, should ensurethat the proposed measures can be monitored, sothat checks can be made to ensure that thecontractor is keeping to its side of the bargain. In acase like this a lump sum quotation from thecontractor may not be suitable. The employerwould need details of each and every change thatthe contractor proposed to make and how mucheach change would cost.

When preparing an acceleration quotation, thecontractor is advised to ensure that it includes acaveat disclaiming liability in the event that furtherdelays are caused by new events that would entitleit to an extension of time. A failure to clarify thispoint may lead to disagreements and disputes.

The parties may also want to provide terms in theiragreement for a means of ending the accelerationmeasures. If things change after the agreement hasbeen made, for any reason, or if it can be seen thatthe acceleration measures are not working as

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planned, the parties may want to abandon theacceleration agreement and revert to the terms ofthe original contract. It will be easier to changeback if terms for doing so are thought out prior toconcluding the acceleration agreement.

1.1.8 When is a project ‘complete’?

In order to decide whether acceleration has beenachieved, the parties must be able to agree onwhat is meant by ‘completion’. What might beconsidered completion on one project or by oneperson may not be considered completion onanother project or by another person. And if theparties cannot agree when the works werecompleted they will not be able to say whetheracceleration measures were successful or not.

A precise and workable definition of ‘practicalcompletion’ is almost impossible to specify but, ifpossible, the parties should attempt to clarify whateach understands by ‘completion’ before enteringinto an acceleration agreement. Please see theRICS guidance note on ‘Practical Completion’ forbest practice in this area.

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Practical application: 2 (Doing)

This section looks in more detail at howacceleration measures can be achieved in practiceand what factors should be considered

2.1 How can acceleration be achieved?

The standard forms of contract and their guidancenotes do not give any indication as to whatmeasures a contractor might consider for inclusionin an acceleration quotation. This probably reflectsthe fact that acceleration is not a feature of mostprojects and also the diversity of actions that mightbe considered.

In order to work faster than planned, and in orderto complete the works earlier than would otherwisebe the case, the contractor and/or the employer willclearly have to make changes to the way in whichthings have been or are due to be carried out.

In order to improve the rate of progress thecontractor may be able to change:

+ the site working hours

+ the level of resources deployed

+ the programme

+ the temporary works; and

+ the methods of working.

The employer may be able to make changes to:

+ the specification

+ the design; and

+ the work scope.

2.1.1 Extended working hours

The introduction of longer working hours oughtgenerally to increase the overall rate of progress ofworks and enable completion to be achieved earlierthan would otherwise have been the case.

For example, if site working hours were increasedby one hour per day, or if weekend working wasintroduced or holiday periods worked, then onewould expect to see the rate of progress increase.

Alternatively, progress on site may be improvedsimply by increasing the hours worked byoperatives engaged in loading out materials. This

can apply particularly on a large project with onlyone crane, where different trades often vie for ‘hooktime’ to enable sufficient materials to be in placefor operatives to progress the works.

A more dramatic change to working hours wouldbe to introduce shifts. The introduction of one ortwo additional shifts in each 24-hour period oughtto bring about very significant increases in output.

2.1.2 Increased resources

The speed of progress of works on a constructionsite is usually proportionate to the amount oflabour, plant and/or supervision resourcesdeployed. In general, the rate of progress increasesif the amount of resources is increased and viceversa.

Therefore, one of the ways in which a contractormight accelerate a project is to increase the level ofresources. For example, the contractor mightincrease the number of bricklaying gangs, mixers,forklifts (or other plant used to distribute materialsaround the site) and supervisors. All other thingsbeing equal, such increases should boost outputand speed up progress.

2.1.3 Alterations to the programme

More efficient programming of the works mayenable completion to be achieved earlier thanwould otherwise be the case, and this may beachieved without making any changes to theresource levels and/or the working hours. Progresscan sometimes be accelerated simply by alteringthe sequence of activities or by increasing theamount of overlap between activities.

On many new-build projects it will be impossible toalter the planned sequence but it may be possible,for example, to carry out the first coat of emulsionpaint to walls in advance of the planned period fordecorations and this may enable overall progress tobe accelerated. On most refurbishment works thereare likely to be more options available for re-sequencing the programme as there are generallymore work faces available at any one time.

Introducing or increasing the amount of overlapbetween activities may also boost progress. For

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example, it may be that a contractor’s programmefor the project shows the final activity, of floorcoverings, commencing in week 25, immediatelyfollowing the completion of decoration works. If thefloor coverings take three weeks to complete, thenit will be week 28 before the project will becompleted. However, it may be that decorations inthe first part of the building can be completed andsufficiently dried for floor coverings to commence inthat area in week 24. The introduction of this oneweek overlap should, all other things being equal,accelerate completion by one week.

2.1.4 Introduction of temporary works

The rate of progress on a project may be increasedsimply by introducing additional temporary worksmeasures.

For example, progress may be expedited by theintroduction of temporary weather protection, in theform of temporary roof sheets or temporary screensat openings. Such action would allow finishingtrades, which require relatively dry conditions, tocommence work earlier than would otherwise bethe case and this should accelerate progress.

Alterations to scaffolding would also fall into thiscategory. If more scaffolding is erected, or moreboards provided to existing scaffold structures,then more work output ought to be achieved,providing this measure is combined with anincrease in resources.

2.1.5 Working methods

Other measures that may be beneficial to progressinclude the provision of generators (to providepower prior to the mains connection being made),floodlighting (to allow work to continue afterdaylight hours) and dehumidifiers (to expedite thedrying out of the works).

2.1.6 Specification changes

As stated above, there are some changes that canbe made by the employer. One of these is tochange the specification.

If a particular material has a long delivery period itmay be that it can be replaced by another similarmaterial, with a shorter delivery period. If thischange is acceptable to the employer, then this willreduce the time required to complete that operationand this may benefit the overall project.

Equally, if a pre-fabricated unit can be used in lieuof materials that require a long period for siteinstallation this may accelerate the works. Forexample, if a reinforced concrete staircase to abuilding was due to be cast on site, it may be thatchanging it for a pre-cast unit will reduce the timerequired, particularly if the weather is very cold andcasting concrete on site is not permitted.

Another example of a change to the materialsspecification is the use of plasterboards in lieu ofrendering. Rendered walls and ceilings will takesome time to dry out, particularly in cold and dampweather. Plasterboarded walls and ceilings shouldbe ready for following trades much sooner.

2.1.7 Design changes

Design changes are similar to changes to thespecification. If the design can be simplified oraltered to reduce installation periods then the effectmay be to accelerate overall progress.

Such changes may include the substitution ofbespoke joinery items with standard ‘off-the-shelf’products or may involve the redesign of an intricateor complex element of the structure so thatconstruction is made simpler and quicker.

2.1.8 Work scope changes

In general, omitting works from the contract oughtto reduce the contract period and thereby bringforward the completion date. In this way, a changeto the work scope may be made to accelerateprogress of the project.

If work cannot be omitted altogether it may bepossible to defer the work until after handover,particularly if it is not absolutely essential for thatitem to be complete at handover.

For example, it may be that the external softlandscaping works can be carried out afterpractical completion or that minor internal parts ofa building can be completed after the rest of thebuilding has been handed over.

Such changes generally bring forward the date of‘completion’.

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Practical considerations: (Doing/Advising)

This section looks at the practical considerationsthat should be taken into account when consideringwhat acceleration measures to adopt and how tovalue those measures.

3.1 Factors to consider whensuggesting/agreeing accelerationmeasures

The measures referred to above should, in general,whether employed individually or collectively,accelerate the progress of works on a constructionsite but, as with most choices in life, there arepotential downsides and these should be kept inmind.

One general point, which applies to anyacceleration measure, is that the changes must befocused on activities that are critical to completion.If the progress of a particular activity is expedited itwill only bring forward the overall completion date ifit is an activity that is on the critical path of theprogramme.

For example, if the critical path runs through themechanical installation works, and the internaljoinery works are not critical, any changes made tospeed up the progress of the joinery works will not,in isolation, achieve the desired result of an earliercompletion of the works. In this example, in orderto accelerate completion, changes would have tobe made to the mechanical installation works.

However, great care is needed when makingdecisions based on what appears to be the criticalpath of a construction programme. Theidentification of the critical path can be difficult, itmay be subject to change and, at any one time,there may be more than one path that can beidentified as being critical to completion.

In the example referred to above, accelerating themechanical installation works may remove it fromthe critical path and other activities will thenbecome critical.

It should also be borne in mind that, in order tosurvive in the commercially competitiveenvironment of the construction industry,

contractors will generally have to carry out theirworks using optimum levels of resources andadopting efficient procedures and methodologies.Therefore, by definition, any changes made tothese resouces, procedures and methodologies arelikely to create an imbalance or loss of efficiency.

When an acceleration agreement has been reachedit is important that the parties make a careful andaccurate record of progress achieved at the datewhen acceleration commences.

Other specific factors to consider are explainedbelow.

3.1.1 Extended working hours

As stated previously, the introduction of extendedworking hours will generally increase the rate ofprogress of works and enable completion to beachieved earlier than would otherwise have beenthe case but (a) the improved rate of progress willcome at a cost and (b) the initial increase in therate of progress may not be sustainable.

The increased cost of employing operatives forlonger hours will be offset by the increase inproduction but it is likely that enhanced rates willhave to be paid for overtime work, making the workundertaken relatively more costly to carry out, andit is likely that output will not rise in proportion tothe increase in hours. This is because operativeswill become increasingly tired the longer they work.For this reason, it is likely that the extra hours willproduce only limited improvement in productivityand the level of improvement may decline after thefirst few weeks if supervisors and operativesbecome weary.

In 2.1.1, it was suggested that shift working couldbe introduced to increase the total hours workedeach day but this may not be allowed or may onlybe allowed subject to certain restrictions.Construction sites are generally very noisy andrequire high levels of illumination. Therefore, unlessthe site is a long way from residential areas andhotels, it may be difficult to obtain approval forworking outside of normal working hours orapproval may be so restrictive that it significantlyreduces the impact of this acceleration measure.

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Shift working may also lead to inconsistencies inthe quality of work, with different supervisors anddifferent operatives involved in each task, and it willcertainly come at a high cost as operatives workingat night and at weekends will generally requiresignificantly enhanced rates of pay.

3.1.2 Increased resources

If progress is to be improved by increasing the levelof supervision, labour, plant and materials, caremust be taken to keep a correct balance betweenthe resources. If the balance is lost there may belittle or no improvement in progress. For example, iflabour resources are increased disproportionately tothe other resources there may be insufficient plant,materials and supervision on site and this may leadto standing time. There may also be a decline inthe quality of works carried out.

It is also necessary to ensure that there are, andwill be, sufficient work areas for the additionalresources. If the resources are doubled, but thework areas only increase by 50 per cent,improvements in progress will be limited and therate of increased output will not justify the level ofincreased costs incurred.

There is also the practical problem of work spaceto consider. If there are too many people trying towork in a limited space they will start to get in eachother’s way and work will slow down rather thanspeed up.

These are not insurmountable problems but it isessential that decisions are fully thought throughbefore being implemented. Otherwise, additionalcosts may be incurred without any benefitsaccruing.

When considering increasing the level of resourcesit should also be borne in mind that more resourcesmay mean more welfare facilities for operatives,more storage space for plant and materials andmore office accommodation for supervisors.

3.1.3 Alterations to the programme

Altering the programme may, superficially, be themost attractive of the various measures available toparties when considering acceleration, becausechanging the programme is relatively easy andrelatively inexpensive. However, this action is likelyto be the least effective method of acceleration.

Contractors and professional advisers rarely adopta sufficiently cautious approach to programming,with the result that most programme durations forconstruction works are optimistic and rely on all (ormost) things going to plan. If this abundance ofoptimism is adopted or even exaggerated whenlooking for ways to accelerate the works, theexpected improvements may well prove to beillusory. In practice, it is likely that the contractorhas already calculated the most efficientprogramme for completing works because (a) thiswill generate the best financial return and (b) thecontract period imposed by the employer is likelyto be tight in any event.

It was also suggested above that programmeactivities might be re-sequenced. The examplegiven was to bring forward the application of thefirst coat of emulsion paint to walls. This may seemto be a good idea at the time but changing thesequence of work in this way may backfire. If workis carried out early it is more likely to be damagedby other trades leading to additional repairs beingrequired. If damage is extensive the change insequencing will come at additional cost but mayproduce no overall time benefits to the project atall.

Perhaps the only time that re-sequencing would belikely to produce significant benefits is if the originalprogramme was flawed but, if that was the case, itis likely that the programme would be amendedregardless of any conscious decisions being takenabout acceleration.

The other change to the programme referred towas overlapping activities but this too may lead tomore damage to works carried out, in which casethere may ultimately be significant additional costsbut little or no overall acceleration of the works.Such problems are not inevitable and may beentirely avoided by careful management andconscientious operatives but the risks should notbe ignored.

3.1.4 Introduction of temporary works

The problem with temporary works measures suchas weather sheeting or screens is that the sheets/screens may not be robust enough to keep outparticularly bad weather, with the result thatcompleted works may get badly damaged. This

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may cause delays rather than acceleration to therate of progress due to the time required to carryout repairs.

Alterations to scaffolding may increase the rate ofprogress of the works that rely upon that scaffoldaccess but this will only bring about overallacceleration of the project if the rate of progress ofother works is maintained or improved.

As with all measures, it would be necessary toweigh the cost against the potential benefits/savings that these measures may produce. In somecases there may be design costs associated withthe introduction of additional temporary works.

3.1.5 Working methods

Other measures, such as artificial lighting, mayimpact adversely upon the quality of the workscarried out and dehumidifiers may cause shrinkage,leading to excessive cracking. Therefore, thesemeasures must also be treated with caution.

3.1.6 Changes to the specification or design

The obvious drawback to changes to thespecification or design is that the employer mayend up with something it did not really want andmay have to pay more for what amounts to itssecond choice.

Some changes to the specification or design maynot be significant but, returning to the illustrationgiven earlier, an employer who agrees to substitutebespoke joinery items with standard ‘off-the-shelf’products, or who agrees to have a less intricate orcomplex design than planned, may regret settlingfor second best once the building is complete.

It should also be borne in mind that the designermay charge additional fees for changing the designand changes to one part of the design may have animpact on other parts of the design. Therefore, caremust be taken to ensure that the full implications ofany changes are fully thought through.

3.1.7 Work scope changes

Omitting significant items of works, so as to bringforward the date of handover, is rarely possible orpractical.

Deferring work until after handover is not strictlyaccelerating the works and may lead to otherproblems. If operatives have to go back to a

substantially completed building there is a risk ofcompleted works and/or the employer’s furnitureand fittings getting damaged or dirty. There will alsobe disruption to the occupants of the building, dueto the noise and mess created by the works beingcarried out after ‘completion’.

If work is omitted altogether, the contractor mayclaim for loss of profit on those items.

3.2 Acceleration quotations

3.2.1 Basic costs

None of the standard forms, or their guidancenotes, suggest how a quotation for accelerationshould be prepared by the contractor or assessedby the employer. Other than general requirements,such as including all loss and expense, there is noindication given as to what items should beincluded in the quotation or how those itemsshould be priced.

However, it is clear that, in order to prepare aquotation, a contractor will have to decide: (i) whatit can achieve; (ii) how it can achieve it; and (iii)how much it will cost.

The decision of what can be achieved is likely to bemade by the contractor’s construction or projectmanager, in conjunction with the site agent and,possibly, the site foremen and sub-contractors. Thedecision about how to achieve these aims is likelyto be made by the construction/project managerand the contractor’s project quantity surveyor. Theproject quantity surveyor is likely to be the personresponsible for applying costs and prices to thedecisions made by management.

The quantity surveyor should have little difficultypricing the basic labour, plant and materials items,as this task is no different to pricing any othervariation.

The project manager and quantity surveyor mayhave more difficulty estimating the amount toinclude for loss and expense, but it should bepossible to come up with a reasonable estimate foritems such as non-productive overtime, additionalsupervision and extra site accommodation, ifrequired. The addition to these basic costs and lossand expense items for overheads and profit is likelyto be a standard percentage used for all othervariations.

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3.2.2 Allowance for risk

The main difficulty faced by the contractor whenpreparing an acceleration quotation is assessingand pricing the risk. Most experienced estimatorshave little difficulty assessing and pricing the‘normal’ risk events associated with a project, suchas adverse weather conditions, price rises ordifficult ground conditions, but, subject to the riskallocation under the acceleration agreement,assessing the risk associated with accelerationquotations may be far more difficult.

For example, if the employer has asked thecontractor to warrant that it will achieve an earliercompletion date, and if the contractor is to carrythe risk that it will receive no additional payment forthe acceleration measures if it fails to completeearly, it will have to include an allowance for takingsuch risks.

Exactly what factors a contractor would take intoaccount when assessing risk will vary from projectto project and the amount of the allowance willdepend on commercial considerations and attitudeto risk.

If the risk allowance is itemised separately in thequotation it may appear to the employer to beprofiteering, in which case the relationship betweenemployer and contractor is likely to be damaged.However, a risk allowance is like an insurancepremium – it may appear high until you need it. Ifall goes well and there are no costs to set againstthe risk allowance then it may appear that thecontractor has made an unreasonably high returnbut if things do not go well the contractor may endup with significant additional unrecoverable costs.

3.2.3 Lump sum or itemised quotations?

If all the risk is to be placed on the contractor itmay be better for a lump sum quotation to beprovided, albeit this will make it difficult for theemployer to assess the merits of the quotation. Itmay be that the employer is far less concernedabout whether individual elements of thecontractor’s quotation appear to be high and moreabout whether the money that can be saved bycompleting early justifies the money that will haveto be spent on acceleration.

If the employer wants as low a quotation aspossible, and is prepared to accept the risk offailure to achieve an early completion date, it will

be more important for a broken down price to beobtained from the contractor. This will allow theemployer to see that the proposed measures arebeing undertaken and that the additional costs arebeing properly incurred.

3.2.4 Assessments based on actual cost

Although the standard forms of contract envisage aquotation being provided before an accelerationagreement is made, the parties may agree to valueacceleration measures on the basis of costsactually incurred. If that is the case then there maybe some arguments as to whether a cost item hasbeen incurred due to acceleration or some otherreason but, in general, this method of valuationshould prove no more difficult than other valuationsprepared retrospectively based on actual costsincurred.

If an assessment is to be made on the basis ofactual cost the employer will not, of course, knowthe additional cost it will have to pay out until afterthe measures have been put in place and the costsexpended. Therefore, in this case the employer willhave to base its decision on an estimate of thelikely (not the actual) cost of accelerating. If theestimate proves to be wrong, the decision toaccelerate may also turn out to be wrong.

3.3. Conclusions

Decisions about acceleration will ultimately comedown to a cost/benefit analysis. If an employer isfaced with a potential additional cost of say£250,000, if the project is completed late, or withmaking a payment to a contractor of say £100,000,to accelerate and achieve early completion, theconclusions of the cost/benefit analysis will not bedifficult to reach. However, in most cases decisionsabout acceleration will not be simple or straight-forward.

As explained above, there are risks associated withacceleration measures. The most fundamental isthat measures may be carried out and costsincurred but, due to unforeseen factors, the worksare not completed early. As set out previously, thereare many other risks for the contractor andemployer, depending on which measures areadopted. It is the assessment of these risks thatmakes most decisions about acceleration difficult

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to make, particularly when the clock is ticking anda decision one way or the other is required urgently.

When considering acceleration the followingquestions should be borne in mind:

+ Does the contract allow for acceleration?

+ Is a separate agreement required?

+ How can acceleration be achieved?

+ Is the activity to be accelerated on theprogramme’s critical path?

+ What is the total cost of acceleration?

+ What costs will be saved by achieving an earliercompletion date?

+ What allowance should be made for risk?

+ Is the contractor to warrant completion by anearlier date?

+ How is failure to achieve an earlier completiondate to be dealt with?

Once these questions have been answered, aninformed decision can be taken as to whether ornot to instruct acceleration.

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14 | ACCELERATION

Acceleration

RICS Practice Standards, UK

1st edition, guidance note

Acceleration1st edition, guidance note

This guidance note summarises what is meant by ‘acceleration’ in theconstruction industry, how acceleration can be achieved and how itcan be valued.

The focus is on acceleration requested by the employer and thequantity surveyor’s role in providing advice on the practicalities, risksand costs involved, particularly, reviewing and commenting on anyacceleration quotation provided by a contractor.

Guidance is given under the following headings which map to theAssessment of Professional Competence (APC):

• General Principles (Level 1: Knowing)• Practical Application (Level 2: Doing)• Practical Considerations (Level 3: Doing/Advising).

rics.org/standards rics.org/standards

GN 80/2011Part of the RICS QS & Construction Standards