This post is the fifth in a series of discussions regarding various aspects of time management.\u00a0 More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program \/ project management.\u00a0 This post addresses some ideas regarding preparation and maintenance of time management related to overall bulk progress.\u00a0 Some might refer to this as Earned Value Management.<\/p>\n
The challenge associated with managing all (critical and non-critical path) work is common to virtually all Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects.\u00a0 In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge.\u00a0 Owner\/Employer delays can be masked among the myriad of activities that are the responsibility of other (than the Owner\/Employer) stakeholders.\u00a0 Even when detected or disclosed, these variances to plan are often dismissed as simply consuming available float.\u00a0 Hence, the Owner\/Employer (or other stakeholder) may rationalize these variations as having no impact.\u00a0 Of course, the reality is that these sorts of departures may (or may not) add risk or disruption to the project execution.\u00a0 Further, they may delay forecasted completion.\u00a0 The managerial challenge becomes detection, assessment and quantification (should it be appropriate to compensate the contractor for the impacts).<\/p>\n
Selection of earned value parameter resource or parameters is a complex consideration.\u00a0 It can differ for each of the following phases of execution:<\/p>\n
–\u00a0\u00a0 Conceptual<\/p>\n
–\u00a0\u00a0 Detailed<\/p>\n
–\u00a0\u00a0 Purchasing \/ Ordering<\/p>\n
–\u00a0\u00a0 Expediting\u00a0 (Fabrication and Delivery)<\/p>\n
–\u00a0\u00a0 Other<\/p>\n
–\u00a0\u00a0 Erection<\/p>\n
–\u00a0\u00a0 Construction Support<\/p>\n
–\u00a0\u00a0 Direct Labor<\/p>\n
–\u00a0\u00a0 Indirects<\/p>\n
–\u00a0\u00a0 Trade<\/p>\n
–\u00a0\u00a0 Material<\/p>\n
–\u00a0\u00a0 Labor<\/p>\n
As an example, the owner had an obligation to provide various utilities to support the construction plan and schedule.\u00a0 While these requirements were contract requirements (dates certain), the owner was materially late with the actual supply\/completion dates.\u00a0 When pressed, the owner took the position that the contractor was not truly ready for the utility and that the impacts of the delays merely served to consume float.<\/p>\n
The contractor provided a retrospective Performance Measurement Baseline (PMB) or \u201cS\u201d curve analysis to demonstrate the impact (time) and a retrospective measured mile analysis to demonstrate related disruption.\u00a0 While the analyses demonstrated cause and effect, the lack of timeliness coupled with notice requirements degraded the effectiveness of the underlying position.<\/p>\n
Schedule risk and labor disruption can be suitably recognized and demonstrated through the use of analyses such as \u201cS\u201d curves and measured mile.\u00a0 Since timeliness and notice are compelling issues, the contemporaneous project reports and managerial action must be sufficiently robust to achieve detection and quantification of these problematic variances.<\/p>\n
Project Management Institute (PMI) Earned Value Management Community of Practice (EVM CoP)<\/a> provides the industry with resources in this essential area of project management.\u00a0 Key EVM CoP resources will be cited in this blog\u2019s Resource Center<\/a> updates and additions.\u00a0 Other key resources (AACE, CII and others) are useful and blog users are encouraged to cite quality resources on this subject.<\/p>\n Time-Management Strategy<\/strong> is the higher level challenge.\u00a0 The Time-Management Strategy <\/strong>must be integrated with progress and claims management strategy.\u00a0 More specifically, the time-related issues must be harmonized and synchronized with the progress and claims strategy.\u00a0 The specific strategy, process and procedures are driven by the project specifics.<\/p>\n When M&M undertakes an assignment involving program\/project development, planning and\/or management, we integrate earned value management practices and procedures into project execution.<\/p>\n Good luck and let us all attempt to approach the issue of Time<\/strong>–Management<\/strong> strategy with all the factors in an integrated manner relative to other related aspects of program and project execution planning.<\/p>\n It is important to note that McLaughlin and McLaughlin<\/strong> [M&M] is not a law firm and is not intending to provide legal advice.\u00a0 M&M is a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support.\u00a0 The Resource Center is for the convenience of blog visitors and M&M does not offer this for commercial purposes.\u00a0 For further information on M&M services, please see<\/em> <\/em>www.McLaughlinandMcLaughlin.com<\/a><\/em><\/strong>.<\/em><\/p>\n This post is the fifth in a series of discussions regarding various aspects of time management.\u00a0 More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program \/ project management.\u00a0 This post addresses some ideas regarding preparation and maintenance of time management related to overall […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"yes"},"categories":[8],"tags":[25,87,86,5,6,7,59,50,80,20,46,38,39,72,51,21,60,256,81,64,78,79],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/353"}],"collection":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/comments?post=353"}],"version-history":[{"count":3,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/353\/revisions"}],"predecessor-version":[{"id":359,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/353\/revisions\/359"}],"wp:attachment":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/media?parent=353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/categories?post=353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/tags?post=353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}