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Delay Analysis & Claims

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Delay analysis (also called forensic analysis) identifies causes of delay on a project and the subsequent impact on the overall programme. A claim is a statement of the consequence of a particular issue on the various stakeholders and must affect the critical path in order for the delay to be properly substantiated.

Delay analysis is an effective method of promoting negotiations and future agreements on delay claims as it enables quantification and appointment of causes of delay. The critical path needs to be impacted to justify a delay claim.

Construction projects are complex. Any project, large or small, has several stakeholders (individuals charged to deliver a project) and many moving elements - site conditions, external interfaces, equipment, materials, labour and even the weather. Projects experience delays for a wide variety of reasons. An unforeseen change experienced by any one of these elements has the potential to cause delay.

Selection of the right project delay analysis technique is crucial. We consider several factors when recommending which project delay analysis technique to use, including source data availability, contractual requirements, time, and budget available for the analysis. If a project is still running, we'll usually recommend prospective (forward looking) analysis such as Time Impact or Impacted as Planned analysis. If the works are completed, a retrospective (backward looking) method such as As Planned versus As Built analysis is best.

We'll make evaluations using the agreed (baseline or approved amended baseline) programme, feeding delay effects into the programme to determine and describe the effects on the programme. We'll explain what is happening and the outcome.

We'll undertake disciplined and rigorous critical forensic evaluation and factual analysis of programmes and other documents to identify the causes of delay as well as apportion delays between the client and contractor. We'll analyse time-related issues covering variations, disruption and acceleration, concurrency, float and pacing arguments. We'll identify a realistic proposal for an extension of time and claims attributable to delay.

TYPICAL CAUSES OF PROJECT DELAY

  • Delay in land acquisition.
  • Delay in approvals by the client, consultants, and local authorities.
  • Failure by the client team to provide drawings or documents in a timely manner.
  • Unexpected variations in design and/or changes in dimension, scope, etc being notified too late.
  • Coordination failures and/or delays and interruptions in interconnecting contracts or packages.
  • Poor procurement planning, suppliers behind schedule, or delays caused by difficulties in import or customs clearance.
  • Unanticipated requirements by the client's team.
  • Disputes between the parties due to delay in project completion.
  • Cash flow issues by either party.
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Malcaire Consulting

RC Number: 1712171