baseline schedules 2

BASELINE SCHEDULING BASICSPart 2: May 3, 2007

Mark Boe, P.E., PSPVice President

Capital Project Management, Inc.mboe@cpmiteam.com

Chris Carson, PSPProject Controls Manager

Alpha Corporationchris.carson@alphacorporation.com

The information in this presentation or publication was developed and prepared by the authors for the purpose of education about the subject. This presentation or publication does not necessarily reflect the views of the Construction Management Association of America or constitute a position or policy of the Construction Management Association of America (CMAA). This material was presented with the permission of the authors and is subject to copyright under applicable law. The information contained herein is presented as descriptive of issues related to the subject at the time it was presented, but it has not been peer reviewed or approved by CMAA. No part of this presentation or publication is to be reproduced or used without written permission from the author and CMAA.

2

Baseline Scheduling

How should you benefit from this session?

Understanding of complex conceptsUnderstanding of legal risksOverview of review standardsUnderstanding of complex terminologyQC – Program & checklistsRecognition of gamesmanship

3

Introduction – Complex Concepts

Schedule ApprovalsTraits necessary to approveTime frame recommendations for approval

Failure to approve scheduleWhat happens then?Best way to minimize risk

Early Completion schedulesOwnership of float

4

Critical Path Method (CPM) – representation of a project plan by a network that depicts the duration, sequenceand interrelation of the work activities.Critical Path – longest path (or sequence) of activities, driven by their relationships, lags, leads, calendars, and constraints, through the project. Total Float – the amount of time an activity can slip without impacting project completion (contingency time).Logic/Relationship Types – description of the interrelation between the individual work activities

Review Definitions

5

Schedule ApprovalsSchedule traits & features to win approval

Meets specificationsMatches Owner dictated sequencingStarts and finishes on timeProvides a ‘reasonable’ plan of workCritical path (LP) includes proportional share of activitiesIncludes Owner mandated milestonesIncludes contractual scope of workProvides ‘reasonable’ use of resourcesDoes not include hidden tricks such as unknown lags, float sequestering, positioning for claims

6

Schedule ApprovalsTime frame recommendations

No industry standardsImportant to get an approved schedule in placeTwo-Tiered schedules

• Consider a pre-construction or outline schedule submitted early, covering early work

• More detailed schedule with more time to developCost and resource loading require more time

• Consider submitted schedule for preliminary schedule as soon as logic worked out prior to loading

Data needs to be captured periodically while schedule is in review (can do informal updates)Actual data will help minimize confusion and claims positioning by either side

7

Failure to Approve ScheduleWhat happens if schedule is not approved?

Examine the legal situation if not resolved• In a claim situation, any schedules used for

management of the project will be used for analysis, regardless of formal approval

Examine the management situation• Schedules are necessary for planning and

monitoring• If the schedule is used to manage the project, it

becomes the “schedule”Schedules used for billing, if not approved, could hold up invoices

8

Failure to Approve ScheduleHow to minimize risk?

Require review deficiencies in writingMake corrections for reasonable review commentsFormally submit all revised submittalsShow re-submittal cycle in scheduleKeep a copy of official submittal schedule (baseline) without progressCapture update information even while developing scheduleIf stalemate, correct all reasonable, document unreasonable requests carefully when submitting last scheduleUse last submitted (the best meeting of the minds for the plan) schedule for updates

9

Early Completion SchedulesUnintentional Early Completion

Review durations and other components carefullyDo not leave float in baseline scheduleConstrain Substantial Completion for contractual dateRe-sequence or provide contingency time so schedule does not complete early

Intentional Early CompletionCheck specification requirements for early completionDocument or require documentation that project was bid with general conditions to match project durationIf Contractor, notify Owner that intention is to finish earlyIf Owner, suggest formal change order to move the completion date to the scheduled completionNegotiate the completion during baseline review

10

Review (or QC) StandardsDevelop Standardized Schedule Review Checklist for schedule review and internal Contractor quality control

11

Review Standards

Compliance with specificationsOwner milestones or constraintsStart and End datesSchedule Architecture

Software settings and rulesVerify calculations & no progressStatisticsCritical Path settings

12

Review Standards

Schedule Architecture (continued)Dictionaries (activity, resource code)CalendarsEvaluate activities

Descriptions & scope coverageRatio work/non-work activitiesRatio trade workTypes (owner, utilities, management, etc.)Relationship types

13

Work CalendarsPurpose

Tailor the schedule to specific work or non-work periods

Examples Holiday periods Non-work periods (e.g., winter months for sitework activities) Adverse weather planning (based on NWS average records)7 day activities vs. 5 day activities (curing or submittals)Fixed time periods (e.g., available work areas)

Form & Pour Cure 1 week

5

Strip Forms

5 3

One Calendar –5 day/week calendar

Different Calendars = Different Float

0 days Float

Cure 1 week

7

7 day/week calendar

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Form & Pour

5

Strip Forms

3

Multiple Calendars –5 day/week calendar

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2 days Float, but still critical

Form & Pour Cure 1 week

5

Strip Forms

5 3

One Calendar -5 day/week calendar

Different Calendars = Different Float

0 days Float

Cure 1 week

7

7 day/week calendar

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Form & Pour

5

Strip Forms

3

Multiple Calendars –5 day/week calendar

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2 days Float, but still critical

What’s important

The “Cure” activity will appear on the 2 day float path even though it is critical. The Zero Float path will have a 5 day gap.

16

Work Calendar Best Practices

Use the least number of calendars that you can, while reasonably modeling the projectMultiple calendars make analysis more difficultMultiple use of calendars will amplify or reduce the effects of delay

17

Review Standards

Schedule Architecture (continued)Logic

Statistics (lags, leads, relationship types)Evaluate Critical PathDevelop rules of thumb for ratio of CP activities

• Based on type of project, facilities/infrastructure• Also review near-critical activities

18

Review StandardsData retrieval from schedule

Develop data crunching methodologiesMaster layouts with filtersExport filters to export to Excel or LotusStandard Pivot tablesInput/output worksheet spreadsheetsGraphical depictions for reasonableness

• Histogram distributions• Tables• Charts

19

Review StandardsUse Pivot Tables or other data collecting & collating methodologies

20

Review Standards

Distribution of Activities

0

50

100

150

200

250

300

Hammoc

ks an

d Mile

stone

s

Aspha

lt Plac

emen

t

Clearin

g and

Grub

bing

Demoli

tion

Demob

ilizati

onElec

trical

Erosion

& S

edim

ent C

ontro

lGra

ding

Land

scap

ing

Materia

l Deli

very

Mobiliz

ation

Mainten

ance

of T

raffic

Storm D

rain /

Stor

m Sew

erSou

ndwall

Striping

/ Pain

ting

Submitta

l / App

rova

l

Sidewalk

/ Med

ian

Underg

round

Utili

ties

Feature of Work

No.

Act

iviti

es

Histogram of Activity Work Scope (showing out of proportion detail in trade activities)

21

Review StandardsRequire or provide Written Narrative

Check specificationsDevelop checklist for narrativeDevelop sequencing planGood narrative explains the plan

22

Review StandardsDevelop a good narrative checklist

23

Review StandardsDevelop & provide Sequencing Plan

24

GamesmanshipApproaches used to control outcome, or is it just bad scheduling?

No schedule or very late submittalIncomplete product submittals (statused as done)Missing management activities (fab, etc.)Overview schedule (minimal detail) or highly convoluted schedule (too much logic)Constraint driven scheduleCalendar schedule (especially MSP)

25

GamesmanshipSoftware calendar/date failure or just bad scheduling?

MS ProjectStatus date? Adjustable? Good feature? How does it calculate?Who understands it?Calendar schedule ability (just type in dates), where’s the logic?

Primavera P3eC, Version 5.0How many ways can you say “date”?Remaining & Remaining Late Start/Finish; calculated or manual, leveled or not (but not a resource calendar)Plain old “Start” or “Finish” – what do they mean; who’s in charge?

• Start - “Remaining Start date until activity is started, then set to the Actual Start date”

• Finish - “Activity Planned Finish date when…not started, the Remaining Finish date when … in progress, and the Actual Finish date once … completed.”

Be sure to understand how the software you are using works with progressNeed industry standardization

26

Update Process

Months1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

FoundationsStructural Steel

Roof

CurtainwallInterior Finishes Punch

List

44

1

44

1

Microsoft Project

27

Update Process

Months1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Does not automatically reschedule uncompleted workFoundations

Structural SteelRoof

CurtainwallInterior Finishes Punch

List

44

1

44

1

Microsoft Project

28

FoundationsStructural Steel4

Primavera

Update Process

Months1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

2 months

Does not automatically reschedule uncompleted work

Properly rescheduled

FoundationsStructural Steel

Roof

CurtainwallInterior Finishes Punch

List

44

1

44

1

Microsoft Project

4 Roof1

CurtainwallInterior Finishes Punch

List4

41

29

Microsoft Project

Reschedule Uncompleted Work to Start on Current Date

30

Gamesmanship

Tricks used to benefit schedule creatorContrived Critical Path

Runs primarily through Owner itemsRuns primarily through A&E reviewInappropriate successor relationshipsConstraints & calendars corrupt path

Sequestered float (everything is critical)Hidden float (lags, durations, calendars)Out of proportion detail in trade workInappropriate length of Critical Path

Definition of Critical Path (LP, TF<?)Any risk shifting behavior

31

Gamesmanship - Defense

ApproachesMinimize risk shifting contract language and behaviorPartnering

Develop process for updates and revisions early in projectFollow the process

Get involved in Dispute Resolution/Claims AvoidanceReconcile schedule gain/loss with each update

Identify causes and responsibility for delayRequire and provide recovery when schedule slipsTimely legitimate time extensionsDo not allow issues to fester

Request for Update Data

Collect Admin Progress Data

Collect Field Progress Data

Identify ContractChanges

Status Schedule

Update Schedule

Compare toBaseline

Publish UpdatedSchedule

Critical PathDelay?

Identify PreviousPeriod

Critical Path

No

Yes

Verify AllData

Identify ChangesTo Critical Path

Identify CausalDelay Activities

Quantify Delays

Research Documents For Driving Delays

AssessResponsibility

For Delays

AnyConcurrent

Delays?

Verify SingleSource DelayResponsibility

Is the Owner

Responsible For Delay?

No

No

Discuss Delay &Mitigation withSubcontractor

PerformConcurrent Delay

Analysis

Yes

Yes

Discuss Delay & MitigationWith Owner

Prepare DelayAnalysis

& Change Order

Is the Owner

Responsible For Delay?

No

Yes

Is a SubcontractorResponsible For Delay?

PrepareRecoverySchedule

No

Yes

Resolve Subcontractor Contributions

Gamesmanship - Defense

Develop a process for updates and revisions early & follow it

33

Gamesmanship - Defense

Defense against schedule tricksCareful and detailed schedule reviewAnalysis of Critical & Near Critical PathKeep good recordsInsist on accurate datesPromote or insist on maintaining schedule so it is current, providing a good modelGood specificationsExperienced schedulers and reviewersField buy-in of scheduleManagement use of schedule

34

Gamesmanship - DefenseTrack path to each milestone or constraint separately – multiple critical paths should be isolated and reported individually

35

Gamesmanship - Defense

Suggested ReadingJim Zack, Ex.: “Construction Scheduling Games & Ways to Win”Donald F. McDonald, Ex.: “Tripping Hazards in Schedules”

Documents are available at AACE website

BASELINE SCHEDULING BASICSPart 2: May 3, 2007

See You in the Next Webinar!

Mark Boe, P.E., PSPVice President

Capital Project Management, Inc.mboe@cpmiteam.com

Chris Carson, PSPProject Controls Manager

Alpha Corporationchris.carson@alphacorporation.com