Schedule Delay Analysis Elearning

SDA 01 – TIME IMPACT OF CHANGE – KEY FACTORS

When you prepare a schedule delay analysis (SDA) to demonstrate the time impact of a
Change event and secure an extension of time (EOT), you will need to consider and work
through a number of key factors and principles.

Change

At the centre of your schedule delay analysis is usually a Change event that has caused a
delay. Note that we define Change quite broadly as ‘any action, incidence or condition that
makes a difference to an original plan or what the original plan is reasonably based on’ (Ibbs
& Vaughan, 2014). Changes are unplanned events. Those that impact the critical path(s) will
result in completion later than the contract completion date. Only changes for which the
Contractor is not responsible or liable will be valid grounds for an extension of time.

Cause

What caused the delay? There are potentially many aspects of a project that could have been
the cause of delay and it is important that you investigate each in order to ascertain which is
most likely to have been the ‘root cause’ of the delay. It is essential to identify and differentiate
between those causes of delay for which the Contractor is responsible and liable and those
where the Client bears responsibility and liability. Not all changes will cause delay to
completion but all Changes need to be investigated in order to identify those that have or are
likely to cause critical delay.

Compliance

Your SDA is required to support an extension of time claim and therefore the need for you and
the project team to be aware of and maintain their contractual obligations is critical. What
does the contract say about completion date(s), planning and scheduling, the baseline

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 Schedule Delay Analysis Elearning

schedule, the project execution plan, the Change clause, giving notices, extension of time,
etc.? The time management provisions may appear in various parts of the contract, (e.g.,
special conditions, general conditions, project procedures, specifications etc.); these all need
to be read and understood. If you do not comply with the contractual terms, you run the risk of
invalidating your entitlement to extension of time.

Liability

When a Change occurs, you need to establish which party is responsible and liable under the
Contract. In principle a Contractor is only entitled to an extension of time where it is not
responsible for the delay and only if the delay impacts the critical path(s). Liability is
determined by considering the Change in the context of the parties’ respective scope,
undertakings, duties, obligations, responsibilities, risk, rights, remedies and / or entitlements
under the Contract. Liability and responsibility must be established when the Change occurs
because the action to be taken in compliance with the Contract may be different whether
liability is with the Contractor or with the Client. Where the Contractor is liable and there is
schedule slippage, then the Contractor must take appropriate action in accordance with the
Contract; these are so-called non-excusable delays.

Entitlement

What are your contractual or legal rights to a time extension (e.g. under the Change/variation,
force majeure or extension of time clause)? Your schedule delay analysis will need to
demonstrate that you have a justifiable claim to an extension of time. The claim needs to be
made in strict conformity with the Contract and your analysis must be able to support this. If
the contract does not contain adequate extension of time provisions (i.e. does not cover the
reasons for the delays for which you are not liable) then your entitlement to relief from delay
damages might be under the law and not the contract. Note that an extension of time does not
automatically create an entitlement to the reimbursement of additional costs.

Impact

It is important to link cause and effect of a Change. What is the impact of the delay on project
completion? Is it on the critical path? By conducting an SDA you will need to consider the
effect of Change(s) on the critical path(s), the consumption of any float, any concurrent delays
and the mitigation measures taken by the Contractor. For retrospective analysis this can be a
complex process. Thus, rather than attempting to assess the critical impact of a Change it is
often better to examine the effects and then determine the cause(s) in order to establish a
credible relationship between the change and its impact. This may be done by examining the
factors that have delayed the as-built critical path and then to establish from the identified
Changes the root cause(s) of that delay. Where the root causes are the responsibility and
liability of the Client then the extension of time will be demonstrated.

Evidence

The SDA needs to be based on facts and supported by relevant, accurate and credible project
records. Especially important for your SDA is a baseline schedule, regular schedule updates
and accurate monthly progress reports. It is also necessary to have a comprehensive history
of each Change (eg., description of the Change, work affected by the change, date the Change
work was carried out, schedule activities affected, re-entry to completed areas of work and/or
re-work involved, etc) so that the relationship between the Change and the planned and actual
work performance can be readily identified.

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 Schedule Delay Analysis Elearning

Story

Note that facts are not enough – and claims, in order to be successful, need to tell a good
story! Building your case and telling a story helps the recipient make sense of what happened
on the project and convince them why you are entitled to recover time and money. Remember
that the prime objective of an EOT claim is to persuade the recipient that you are not liable to
pay delay damages. Therefore, by presenting the delay and extension of time in the context
of the project work execution, you provide the recipient with the opportunity to understand the
implications of the Changes for which it is responsible and liable – and you are not.

Disclaimer. Although all necessary care and attention has been taken by Kingsfield to ensure accuracy, we cannot in any
circumstances accept legal liability or responsibility for any errors, omissions or advice given in the Course content or for any
loss or damage resulting from the use of any information contained therein. This Course is intended for general training
purposes only and independent professional advice should be sought before applying any Course information to specific
circumstances.

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