Managing risk of delay

MANAGING RISK OF DELAY – Managing Contractor Schedules (Part 13)

September 28, 2013 By George T McLaughlin PMP CCM

This McLaughlin & McLaughlin post is the thirteenth (13^th) in a series of discussions regarding various aspects of time management as it relates to the risk of delay. This post addresses managerial considerations for dealing with schedules prepared by contractors and submitted to owners or their agents (construction managers, managing contractors, advisors, etc.).

Recently, Mr. Chris Carson authored an excellent article titled “Dealing with Contractors Schedules That Cannot be Approved.” This fine article was published in COST Engineering(September/October 2013).

This article contains excellent advice for project teams regarding schedule management.

Mr. Carson’s article is, in reality two articles in one. While Mr. Carson’s article presents a methodology for problematic situations (which he calls DSAB), the preamble and initial discussion for this article is highly useful and applicable to project management teams as they address the frontend of project planning and execution. This post summarizes the sage advice provided by Mr. Carson regarding frontend project management challenges as they relate to scheduling and time management. [Read more…]

Filed Under: Claims, Featured, Projects, Uncategorized Tagged With: AACE International, Best Practice, Best Practices, Construction Contract Claim, Construction Contract Planning, Construction Contract Planning and Scheduling, Contractor Schedules, Delay, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, Productivity Management, Progress Reporting, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity – Cumulative Impact (Part 14)

February 25, 2012 By George T McLaughlin PMP CCM

This is McLaughlin and McLaughlin’s Project Professional’s fourteenth posting regarding labor/labour productivity and disruption. This contribution provides an overview of process alternatives that are extremely helpful and valuable for all stakeholders concerned with labor productivity and management.

The Subject Series regarding Labor/Labour Productivity and Disruption can be viewed here.

It is widely recognized that changed work (sometimes called change orders – assuming that the contract is changed as a result) may have a negative impact on field labor productivity (lower productivity). The impact of multiple changes may be recognized or sensed. The challenges are both timely recognition and demonstration of cause and effect. The publications listed below are some of the more useful and valuable references related to this cause and effect dynamic.

An article and related study published recently in Construction Lawyer has some valuable information and analytical process guidance that is very useful when considering potential impact to labor productivity resulting from changed work. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Changed Work, Construction Contract Claims, Construction Contract Planning and Scheduling, George T. McLaughlin PMP, Labor/Labour productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts on productivity, Productivity Management, Project Execution Planning, Project Management, Risk of Delay, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity –MCAA Publication (Part 13)

February 12, 2012 By George T McLaughlin PMP CCM

Changed Work, Productivity and Overtime

This is McLaughlin and McLaughlin’s Project Professional’s thirteenth posting regarding labor/labour productivity and disruption. This contribution provides an overview of a construction industry publication that is extremely helpful and valuable for all stakeholders concerned with labor productivity and management.

The Subject Series regarding Labor/Labour Productivity and Disruption can be viewed here.

This publication is Change Orders, Productivity, Overtime, Mechanical Contractors Association of America (MCAA).

MANAGING RISK OF DELAY – Subject Series Summary Update

November 10, 2011 By George T McLaughlin PMP CCM

This summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis. The last summary was posted on June 12, 2011

This summary is very brief and simply serves as an index for readers to follow. More robust summaries are provided in the June summary. Of course, detailed descriptions are contained in the individual posts.

Ideally this summary provides a starting point to investigate best practice on many delay-related features of project management.

The Context and Challenge (Part 1) – Talk/Speech by Mr. Keith Pickavance

Time-Management Strategy (Part 2) – Strategy according to CIOB Guide

As-Planned Schedule / Accepted Programme (Part 3) – Establishing the Time Management Baseline

Schedule Preparation and Maintenance (Part 4) – Managing the Time Baseline

Earned Value Management (Part 5) – Importance and Management of the Time Baseline Tool

Critical Path and Earned Value Management (Part 6) – Managing with Critical Path, Earned Value Management and Productivity Tools

Earned Value and Schedule Performance Indicators (Part 7) – Time Management Tools

Schedule Specification Sources and Implementation (Part 8) – Managerial Tools with sources

Recognition and Notice (Part 9) – Managerial Alerting and Action Tools

Going forward, we will post other features of MANAGING THE RISK OF DELAY. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Construction Contract Claims, Construction Contract Planning and Scheduling, Delay, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, McLaughlin & McLaughlin, Productivity Management, Project, Project Execution Planning, Risk of Delay, Schedule Specification, Time Management, Time Management Strategy, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity – Overtime Impacts (Part 11)

October 22, 2011 By George T McLaughlin PMP CCM

PLANNING CONSIDERATIONS

This is the eleventh posting regarding labor/labour productivity and disruption. This contribution provides managerial considerations or issues regarding the impact of overtime on labor productivity. The Subject Series can be viewed here.

Two key points:

“The project plan is needed as a baseline to calculate the expected cost and time performance (cost estimate or price and the project schedule)”
“Time and cost forecasts must be evaluated and adjusted if the project plan execution changes and overtime is introduced, increased or reduced.”

Project planning is one of the major challenges for program and project management teams. Past posts have discussed many aspects of project planning. The series regarding Project Management Challenges is here. Part 5 of this series is particularly relevant or germane to the discussion regarding the impact of overtime on labor productivity in this post.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

Perhaps more importantly the impact on the schedule duration must consider the planned and forecasted progress using the proper productivity. As overtime is introduced, progress may well be impacted. The time impact of more work hours per week is mitigated or offset by the lowered productivity.

The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, construction management, programming, consulting and other professional man-hours. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Best Practices, Construction Contract Claims, Construction Contract Planning and Scheduling, Field Labor Productivity, George T. McLaughlin PMP, Labor/Labour productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts of productivity, Productivity Management, Project Execution Planning, Project Management Plan, Project Planning, Risk of Delay, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity – Overtime Impacts (Part 10)

October 16, 2011 By George T McLaughlin PMP CCM

MANAGERIAL CONSIDERATIONS

This is the tenth posting regarding labor/labour productivity and disruption. This contribution provides managerial considerations or issues regarding the impact of overtime on labor productivity. The Subject Series can be viewed here.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. In general, some of the points of concern include:

“Project Management Plan – basis for the plan and related resource requirements”
“Changed Work – both prospective and retrospective planning and pricing”
“Delay Mitigation – planning and analyzing the options and related viability”
“Schedule Recovery – methods, options and viability”
“Forensic Analysis – claims for delay, acceleration and related impacts.”

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, programming, consulting and other professional man-hours. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Construction Contract Claims, Construction Contract Planning and Scheduling, George T. McLaughlin PMP, Labor Productivity, Labour Productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts on productivity, Productivity, Productivity Management, Project Execution Planning, Risk of Delay, www.mclaughlinandmclaughlin.com

Labor/Labour Productivity – Overtime Impacts (Part 9)

October 12, 2011 By George T McLaughlin PMP CCM

INDUSTRY STANDARDS

This is the ninth posting regarding labor/labour productivity and disruption. This contribution provides industry sources and references on the impact of overtime on labor productivity. The Subject Series can be viewed here.

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, programming, consulting and other professional man-hours.

For this post, we will use United States definitions and standards as a baseline. Many of the authoritative studies and analyses are done relative to US practices, if not US Gulf Coast (a common estimating standard or baseline).

However, these standards are relevant to the world open market. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects Tagged With: Best Practice, Best Practices, Construction Contract Claims, Construction Contract Planning and Scheduling, George T. McLaughlin PMP, Labor Productivity, Labour Productivity, Managing risk of delay, McLaughlin & McLaughlin, Overtime impacts on productivity, Productivity Management, Project Execution Planning, Risk of Delay

MANAGING RISK OF DELAY – Forecasting and Management (Part 12)

September 30, 2011 By George T McLaughlin PMP CCM

This post is the twelfth in a series of discussions regarding various aspects of time management as it relates to the risk of delay. This post addresses the managerial aspects of forecasting related to time management.

Planning for and implementing (time-related as opposed to cost-related) forecasting is, perhaps, one of the most important aspects of Time Management and, consequently, Managing Risk of Delay. As with progress assessment, timely (early) detection of trends (positive and negative) allows timely managerial action. Timeliness of action has a heavy influence over the effectiveness of Time Management. In project work, it is imperative that one finds problems quickly and fixes these problems rapidly. In order to implement timely action, professional and realistic time forecasting is required.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Best Practices, Construction Contract Claims, Construction Contract Planning and Scheduling, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, McLaughlin & McLaughlin, Productivity Management, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy

MANAGING RISK OF DELAY – Progress Assessment (Part 11)

September 24, 2011 By George T McLaughlin PMP CCM

This post is the eleventh in a series of discussions regarding various aspects of time management as it relates to the risk of delay. This post addresses planning for and implementing progress assessment.

Planning for and implementing progress assessment is, perhaps, one of the most important aspects of Time Management and, consequently, Managing Risk of Delay. Timely (early) detection of trends (positive and negative) allows timely managerial action. Timeliness of action is a heavy influence over the effectiveness of Time Management. In project work, it is imperative that one finds problems quickly and fixes these problems rapidly. In order to implement timely action, professional progress assessment is required.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects. [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practices, Construction Claims, Construction Contract Planning and Scheduling, Delay, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, McLaughlin & McLaughlin, Productivity Management, Progress Reporting, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy

MANAGING RISK OF DELAY – Schedule Updates and Progress Considerations (Part 10)

September 19, 2011 By George T McLaughlin PMP CCM

This post is the tenth in a series of discussions regarding various aspects of time management as it relates to the risk of delay. This post addresses planning for and implementing progress measurement and schedule updates.

The challenge associated with managing time is intensified in the case of larger and more complex projects as well as fast-track and high technology projects.

In order to professionally manage time (and, therefore, risk of delay) the manager must have a time baseline [typically a Critical Path Method schedule and a Performance Measurement Baseline – please see earlier posts on these topics] and a method to recognize variations from the baseline. In order to detect variances, the managerial team must have an effective process to measure progress data and update the schedule (or time model). [Read more…]

Filed Under: Claims, Featured, General, Projects Tagged With: Best Practice, Chartered Institute of Building (CIOB), Construction Contract Claims, Construction Contract Planning and Scheduling, Delay, Earned Value Management, Frederic L. Plotnick, George T. McLaughlin PMP, James O'Brian, Managing risk of delay, McLaughlin & McLaughlin, PMI, Productivity Management, Progress Reporting, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy

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