Resources For The EoT Masterclass - Project Control Academy

Resources for Masterclass
Attendees
When Should An Extension of Time be
Provided & Is It Granted to the Activity or
Milestone?

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Copy of the Slides

When Should An Extension of Time be
Provided & Is It Granted to the Activity or
Milestone?
PROJECT CONTROL ACADEMY
When Should an EoT be Provided & Is It
Granted to the Activity or Milestone?
PRESENTED BY: WHEN SHOULD AN EXTENSION OF TIME BE

Chris Carson PROVIDED & IS IT GRANTED TO THE
FRICS, FAACE, FGPC, PSP, CEP, DRMP, CCM, PMP
ACTIVITY OR MILESTONE?
Copy Right © Project Control Academy. All rights reserved

The Goal of This Masterclass
To provide you with a greater understanding of

Extension of Time (EoT) requests.
•  The purpose of EoTs
•  When an EoT should be granted
•  Shall the EoT be granted to the Activity or Milestone
To equip you with delay analysis methods, and the

best ways to deal with delays and Extensions of
Time (EoT) requests.
2 Copy Right © Project Control Academy. All rights reserved

INTRODUCTIONS

Shohreh Ghorbani
  Founder & Director, Project Control Academy

  Creator of the following training programs:
¤  Applied Project Controls Training
¤  Essentials of Earned Value Management
¤  Mastering EVM for Project Success
¤  Project Scheduling Blueprint
¤  Project Control Career Success Roadmap
  Served tens of thousands of professionals

worldwide to take their project controls skills
to the next level.

Chris Carson
  Enterprise Director of Program & Project Controls,

Associate Vice President, Arcadis
  Project Control Academy Trainer for the “Forensic
Schedule Delay Analysis” Course
¤  Over 55 publications (Two in AACE Journal in 2020)
¤  Over 700 training sessions and paper presentations
  Awarded Fellowships in RICS, AACE, GPC

  Received Awards from AACE, CMAA, PMI
  Earned certifications: PSP, CEP, DRMP, CCM, PMP

WHAT TO EXPECT IN
THE NEXT 1.5 HOUR….

Outline
What will be discussed….

  Question Posed in the Forum
  When an Extension of Time Should Be Granted
  Whether it Should It Be Granted to the Activity or Milestone
  Purpose of the Extension of Time
  Dealing with the Additional Float Due to the EoT
  How to Analyze an EoT in a Forensic Analysis
  Reference Material

QUESTION POSED IN FORUM

When Should an EoT be Provided & Is It Granted to the Activity or Milestone?

When Should an EoT be Provided & Is It Question from – Module 1B: Contract Basis of Claims
Underlying Fundamentals:
  Forensic Schedule Delay Analysis:
¤  From the Forensic Schedule Analysis Recommended Practice (RP), “the

study and investigation of events using CPM or other recognized
schedule calculation methods”
  Extension of Time (EoT):

¤  A Contractual change to the project duration that extends the contract
completion date

Underlying Fundamentals:
  Time Impact Analysis (TIA):

¤  Most commonly, an analysis to determine if a predicted (future) impact event will
cause a Critical Path delay to the project, prolonging the predicted contract
completion and providing entitlement to an EoT – described in the AACE RP No.
52R-06, “Prospective Time Impact Analysis”
¤  Also, a generic term for a specific type of forensic schedule analysis that models an
already absorbed impact event by adding fragnets of activities to the appropriate
schedule. The purpose is to determine if the impact event was responsible for a
Critical Path delay which prolonged the contract completion date. Most commonly
used to mean the methodology described in the AACE RP No. 29R-03 “Forensic
Schedule Analysis” as MIP (Method Implementation Protocol) 3.7

Forensic Schedule Delay Analysis Forums

Question Posed in Forum

  Question posed in “Module 1B: Contract Basis of Claims”
  Noted that Engineering, working for the Owner, used up float, and
project will not complete on time
  Attendee requested:
“Should EOT be negotiated and granted after each impact event/contract
change, or it should be waited for the contractor to completed all the works
related to a contractual Reception Milestone.?” AND
“Also, should EOT be granted on an activity or the contractual reception
milestone?”

Project Background
  Project was EPC contract
  Engineering was subconsultant to owner
  The delayed activity eventually fell off the Critical Path

Project Background
  When the Contractor modeled the Engineering delay, it showed
project delay
  Contractor was entitled to an extension of time, used example of 10
days
  Anticipated that the delay would only be on the Critical Path for a
couple of months and then fall off the Critical Path

How do you respond to this case?

  Should the Owner Grant the EoT Immediately & Grant to Activity or
Milestone?
¤  A. The Owner should wait a few months and see the long-term
impact, and then grant an EoT for a continued delay to the
Milestone.
¤  B. The Owner should immediately issue the EoT, but rescind it if the
activity is not Critical Path in the next period.
¤  C. The Owner should immediately issue the EoT, and apply it to the
Activity.
¤  D. The Owner should immediately issue the EoT, and apply it to the
Milestone.

WHEN AN EOT SHOULD BE GRANTED

When an EoT Should be Granted
Five issues to examine in this case:
  1. The TIA is an estimate that is negotiated into an EoT

  2. The TIA is best analyzed using AACE Recommended Practices
  3. An EoT is issued when there is entitlement to a project extension
  4. The EoT will add Float to all other activities not on the EoT path
  5. The extended completion date and additional float will allow other
work to be “paced” – allowed to slip within the limits of float

  1. The TIA is an estimate that is negotiated into an EoT

¤  The Time Impact Analysis is a prospective analysis that models the changed
condition resulting in a delay using the latest approved schedule
¤  If the TIA does not result in a delay, the changed condition only uses up
available float and no EoT is entitled
¤  TIAs are treated just like a forward priced change order for cost
¤  TIAs are developed and documented by the Contractor
¤  TIAs are reviewed, or independent TIAs are developed, by the Owner
¤  Negotiations between the Contractor and Owner are used to establish the
agreed-upon EoT, which would then be issued as a contractual extension to
the contract duration

Documentation of the Prospective TIA
Summary (LOE)
Logic Connections
Add Fragnet

  2. The TIA is best analyzed based on the AACE Recommended Practice
¤  AACE has a Recommended Practice No.

52R-06, “Prospective Time Impact Analysis – As
Applied in Construction”
¤  This is the best way to estimate the impact of a
changed condition that has not been absorbed
¤  This condition is for a predicted delay

PROJECT CONTROL ACADEMY TIA Before Rebar Shop Drawings Delay
Granted to the Activity or Milestone? (Original Schedule)
Original Milestone
11Mar05 Finish
Original Critical
Path
Delay Impacts SD
Approval
Act ID OD
Total Float
Early Start
Early Fin
Activities Affected Description
have 1-day Float


PROJECT CONTROL ACADEMY TIA After Fragnet Showing Impact of Delay in Rebar Shop
Drawings
Impacted Milestone
16Mar05 Finish
New Critical
Path EoT = 5 cd
Inserted 2 Act ID OD
Total Float
Activities Activities Affected
Early Start
Early Fin
Now are Critical Path Description
& Driving Delay


  3. An EoT is issued when there is entitlement to a project extension

¤  Entitlement is based on the type of delay
¤  The delay that proves entitlement is an excusable delay
¤  Excusable delays are beyond the control of the contractor
¤  The delay may be the responsibility of the owner which would be
compensable
¤  The delay may be the responsibility of a third party, not within control of
the Owner, which would be non-compensable

  4. The EoT will add Float to all other activities not on the EoT path
¤  Once the EoT is issued contractually, the TIA schedule becomes the
official schedule-of-record
¤  The TIA schedule establishes the new contractual completion date
¤  The EoT is the difference between the original and the new contractual
date
¤  All activities in the TIA schedule that were not impacted by the changed
condition Critical Path will now have additional float (or float if they were
previously critical)
¤  The additional float is generally available to the first need, Owner or
Contractor

  5. The extended completion date and additional float will allow other
work to be “paced” – allowed to slip within the limits of float
¤  Pacing is recognition that the paced activities no longer have to be

completed at the dates in the original schedule
¤  The activities that have float could slip and be completed later than
originally, as long as they complete by the new Last Finish dates
¤  Pacing is different from concurrent delay
¤  Concurrent delay is when two activities each delay the project
¤  Pacing is when one delay causes entitlement to an EoT and the other
delay is intentional, allowed to be delayed due to the available float
form the first delay

EOT GRANTED TO THE ACTIVITY OR

MILESTONE?

EoT Granted to the Activity or Milestone?
Is the EoT granted to the Activity Delayed or the Milestone Affected?

  The TIA Drives the Activity Delay
¤  The TIA models delays to certain activities, which may or may not affect the
Milestone
¤  Once it is determined that the TIA drives a delay to a contractual Milestone, it shows
that the changed condition does affect the completion Milestone
¤  The Milestone serves as a common marker, with the difference in completion dates
of the Milestone resulting in the need for an EoT
¤  But the TIA model shows how the changed condition causes delay to a certain
activity which may or may not cause the same delay (quantum) to the Milestone – it
might consume available float in the path leading to the Milestone – the resultant
Milestone delay is the EoT

EoT Granted to the Activity or Milestone?
Is the EoT granted to the Activity Delayed or the Milestone Affected?

  The TIA Shows that the Milestone is Affected & Drives the Milestone Delay
¤  When the TIA becomes the new schedule-of-record, the schedule contains the
estimated and agreed-upon delay to the activity as well as how it affects the
Milestone
¤  The EoT is analyzed to the activity that was delayed, since that proves the delay
¤  But the new schedule contains the delay to the Milestone so it affects the Milestone
¤  And the entitled EoT is the amount of time the contractual Milestone completion
date changes from the unimpacted (pre-TIA) schedule
¤  So, the EoT is actually granted to the Milestone but the additional time is
embedded in the schedule by the TIA changes

PROJECT CONTROL ACADEMY TIA Delay Drives an Activity, but EOT Calculates at
Milestone
Impact Shows at
Milestone 16Mar05
Finish
Activity Driven
to Delay EoT = 5 cd
By TIA
2 Inserted Act ID OD
Total Float
TIA Activities Early Start
Early Fin
Description

PURPOSE OF THE EXTENSION OF TIME

Purpose of the Extension of Time
The Extension of Time Provides the Required Time to the Contractor

  The TIA Proved the Need for Additional Time
¤  Upon negotiations for the EoT based on the TIA, the Owner and Contractor
agreed that the project requires additional time to complete based on the delays
demonstrated by the TIA
¤  This additional time allows the Contractor to accommodate the changed
condition without needing to accelerate the work by spending additional costs
and resources
¤  The EoT prevents the risk to the Owner of a Constructive Acceleration claim by
the Contractor

Purpose of the Extension of Time

  The EoT Reduces Risk to the Contractor for Installing the Changed Condition
Work
¤  The changed condition work must be installed along with the original planned
contract scope of work
¤  This changed condition work will have some impact to the contractual work
¤  The TIA shows what the impact is to the contractual work
¤  Issuing the EoT minimizes any risk to the Contractor for adding that changed
condition work to the project

DEALING WITH FLOAT FROM EOT

Dealing with Float Added by the EoT

  The EoT Adds Float to Most Activities
¤  Since the EoT adds float to the paths that are not affected by the changed condition
work, most of the activities in the schedule gain float equal to the EoT
¤  This additional float adds a “buffer” to most activities, giving the trade contractors
additional time in what was likely getting to be a tight schedule
¤  These additional buffers established by the EoT allow protection from performance
issues
¤  Performance is often affected by changed conditions – the contractors get side-tracked
by the changed conditions and trying to accommodate that additional or changed
work
¤  Often, the changed condition will require some work to be pushed off and other work
to be done immediately – the TIA will provide those changes to the planning


  The EoT Allows for Re-Planning the Non-Critical Work Established by the TIA
¤  Since the EoT adds float to the paths that are not affected by the changed condition
work, it allows the Contractor, or the Owner, to re-evaluate the plan
¤  This re-evaluation might result in decisions to allow Non-Critical work to be scheduled
at a different time than the original dates
¤  As long as the re-planning maintains the work within the limits of the float values, any of
that work can be adjusted
¤  The re-evaluation can often help jump-start parts of the project that were at risk of
delay
¤  This ability provides more flexibility in managing the project and lowers risks
¤  This helps to place the project back into the original risk profile


  The EoT Allows for Pacing Non-Critical Work Established by the TIA
¤  Pacing is recognizing that there is more time to complete certain scopes of work due to
the additional time in the EoT
¤  This cannot be simply “claiming” pacing when it is actually a concurrent delay
¤  Pacing requires a conscious decision to delay work ONLY because there is additional float
due to the EoT – good practice requires notification to the Owner of the intent to pace
¤  This ability provides more flexibility in managing the project and lowers risks
¤  Pacing reduces needs to waste money completing work that now has float due to the EoT
¤  Pacing can be done prior to the formal issuance of the EoT, but the Contractor must be
careful to avoid concurrent delays, which may be an Owner defense to avoid
compensation

HOW TO ANALYZE AN EOT IN A FORENSIC

ANALYSIS

Analyzing an EoT in a Forensic Analysis
When Delays Have Been Absorbed into the Schedule/Project

  It is no longer appropriate to analyze using a Prospective TIA – which is based on
estimating the impacts
  Absorbed delays are defined by Actual Start and Finish Dates – no longer an estimate
  Consider these the same as completed T&M work – the cost of the work is no longer
an estimate, it is defined by actual invoices and delivery tickets
  Absorbed delays are the same
  They require a forensic schedule analysis

  Absorbed Delays are Best Analyzed Based on Another AACE

Recommended Practice
¤  AACE has a Recommended Practice No.
29R-03, “Forensic Schedule Analysis”
¤  This is the best way to estimate the impact of a
changed condition that has been absorbed into
the schedule
¤  Absorbed means the work is done, the delay
has already shown up in the As-Built side of the
update

In a forensic mode, generally analysis is performed period-by-period
  The analysis starts in the update preceding the impact from the changed condition
  As the analysis works through the updates, each delay is quantified, assigned
responsibility, and assessed for entitlement
  Assignment of responsibility for delay will thus be done as early as the project is
impacted by the changed condition
  So in Forensic Analysis, there is no waiting to see the final impact of the delay

In a forensic mode, generally analysis is performed period-by-period
  The first period with delay will be charged to the responsible party, in case of
excusable/compensable delay, the Owner
  So, the Owner is immediately responsible for the delay, not withstanding if the Owner
actually waits to issue the EoT
  Later period analysis may give credit for “gains” to the Owner, but that does not
remove the responsibility for the initial delays
  The forensic analysis is likely to “prove” entitlement to a constructive

acceleration case by the Contractor

Forensic Schedule Analysis of the Delays
Periods
Delays Analyzed
As-Planned
Period-by-Period
As-Built
Activity A Delay
Shows Need for a
10-Day EoT (Owner
Responsible)

CONCLUSION
When Should an EoT be Provided & Granted to the Activity or Milestone?

Conclusion
  The Contractor should develop a prospective TIA as soon as aware of an

impending delay
  If the delay is missed and absorbed, the Contractor should develop a forensic
analysis immediately to determine the impact of the delay
  EoTs should be issued as soon as possible after analysis of the TIA or forensic
analysis
  The TIA or the forensic analysis will determine the impact to the affected
activities, but will also show the full impact to the Contractual Milestone(s)
  The net delay to the Milestone is the required Extension of Time
  Timely issuance of EoTs reduces risks to both parties, Constructive
Acceleration claims to the Owner, performance disruption to the Contractor


Milestone?
¤  A. The Owner should wait a few months and see the long-term
Milestone.
¤  B. The Owner should immediately issue the EoT, but rescind it if the
activity is not Critical Path in the next period.
¤  C. The Owner should immediately issue the EoT, and apply it to the
Activity.
Milestone.


Milestone?
¤  A. The Owner should wait a few months and see the long-term False
Milestone. False
¤  B. The Owner should immediately issue the EoT, but rescind it if the False, only
activity is not Critical Path in the next period. because the TIA
¤  C. The Owner should immediately issue the EoT, and apply it to the will apply it to the
Activity. Milestone
Milestone. TRUE!

RESOURCES FOR FURTHER EDUCATION

References
  AACE Recommended Practice No. 29R-03, “Forensic Schedule Analysis”

  AACE Recommended Practice No. 52R-06, “Prospective Time Impact Analysis”
  AACE Recommended Practice No. 90R-17, “Statusing the CPM Schedule”
  “Identifying As-Built Completion Drivers”, Zartab Zafar and Dean Robert McCullough
and Satinder Baweja, Cost Engineering, 2006 AACE International Transactions
  “Which Critical Path: As-Planned, Contemporaneous, or As-Built”, Mark Nagata, 2010
AACE International Transactions

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Resources for Masterclass

As promised, I am providing you with the following material:

1. A PDF copy of the webinar slides on “When Should An Extension of Time be

Join us at Project Control Summit

We cannot wait to see you at the Project Control Summit.

Forensic Schedule Delay Analysis Training- Highly

In this in-depth practical course, you will learn how to

A leading authority on Forensic Schedule Delay

The return on this investment will be substantial once

Claiming Professional Development Hours

Claim 0.15 CEUs

Claim 1.5 Professional Development Hours

Please note that we won’t be able to issue a certificate of attendance

Copy of the Slides

PRESENTED BY: WHEN SHOULD AN EXTENSION OF TIME BE

Copy Right © Project Control Academy. All rights reserved

To provide you with a greater understanding of

To equip you with delay analysis methods, and the

2 Copy Right © Project Control Academy. All rights reserved

4 Copy Right © Project Control Academy. All rights reserved

Founder & Director, Project Control Academy

Served tens of thousands of professionals

5 Copy Right © Project Control Academy. All rights reserved

Enterprise Director of Program & Project Controls,

Awarded Fellowships in RICS, AACE, GPC

6 Copy Right © Project Control Academy. All rights reserved

7 Copy Right © Project Control Academy. All rights reserved

What will be discussed….

8 Copy Right © Project Control Academy. All rights reserved

QUESTION POSED IN FORUM

9 Copy Right © Project Control Academy. All rights reserved

Forensic Schedule Delay Analysis:

¤ From the Forensic Schedule Analysis Recommended Practice (RP), “the

Extension of Time (EoT):

10 Copy Right © Project Control Academy. All rights reserved

Time Impact Analysis (TIA):

11 Copy Right © Project Control Academy. All rights reserved

12 Copy Right © Project Control Academy. All rights reserved

Question Posed in Forum

13 Copy Right © Project Control Academy. All rights reserved

14 Copy Right © Project Control Academy. All rights reserved

15 Copy Right © Project Control Academy. All rights reserved

How do you respond to this case?

16 Copy Right © Project Control Academy. All rights reserved

WHEN AN EOT SHOULD BE GRANTED

17 Copy Right © Project Control Academy. All rights reserved

Five issues to examine in this case:

1. The TIA is an estimate that is negotiated into an EoT

18 Copy Right © Project Control Academy. All rights reserved

1. The TIA is an estimate that is negotiated into an EoT

19 Copy Right © Project Control Academy. All rights reserved

Copy Right © Project Control Academy. All rights reserved

2. The TIA is best analyzed based on the AACE Recommended Practice

¤ AACE has a Recommended Practice No.

21 Copy Right © Project Control Academy. All rights reserved

Activities Affected Description

have 1-day Float

Now are Critical Path Description

& Driving Delay

  Founder & Director, Project Control Academy

  Served tens of thousands of professionals

  Enterprise Director of Program & Project Controls,

  Awarded Fellowships in RICS, AACE, GPC

  Forensic Schedule Delay Analysis:

¤  From the Forensic Schedule Analysis Recommended Practice (RP), “the

  Extension of Time (EoT):

  Time Impact Analysis (TIA):

  1. The TIA is an estimate that is negotiated into an EoT

  1. The TIA is an estimate that is negotiated into an EoT

  2. The TIA is best analyzed based on the AACE Recommended Practice

¤  AACE has a Recommended Practice No.

  3. An EoT is issued when there is entitlement to a project extension

¤  Pacing is recognition that the paced activities no longer have to be

  They require a forensic schedule analysis

  Absorbed Delays are Best Analyzed Based on Another AACE

  The forensic analysis is likely to “prove” entitlement to a constructive

  The Contractor should develop a prospective TIA as soon as aware of an

  AACE Recommended Practice No. 29R-03, “Forensic Schedule Analysis”