Challenges Protocol

CHALLENGES OF THE SCL DELAY AND DISRUPTION PROTOCOL
Tony Farrow
Trett Consulting
www.trett.com
AGENDA
Background (Contracts, Delays,
Analysis, Claims, Disputes, Resolution)

The Protocol (Structure) The Protocol (Aims and Achievements) Challenges in Implementing the Protocol
Contracts and Project Delays

Contracts have completion dates and liquidated
damages are tied to completion date

Extension of Time clauses maintain LD provisions where there has been breach by Employer
If Employer causes a delay and there is no EOT

clause, time can (not universal) become at large and LD clause fails. EOTs also relate to financial matters including bonus situation
Contracts and Project Delays

Contract provisions define the basis of entitlement Contracts are imprecise as to how to demonstrate delay and prove entitlement Debate about actual delay and contractual
entitlement
Hence Delay Analysis Methodology has developed
SCL Protocol advances Delay Analysis

Delay to be on the critical path
Extension of Time Methods
Estimate or Model Methods (investigate the EVENT and its potential impact)
Actual Methods (identify the DELAY period and investigate what caused it)
Model Based Methods

Global and Net Impact Methods As-Planned Impact As-Planned But For Collapsed As-Built (As-Built But For) Time Impact Analysis (Impact / Update)
Actual Based Methods
As-Planned vs As-Built
Windows / Snap-Shot
Model Based Analysis

Activity 1 2 3 4 5 6 7 8 9 10 11
ACTIVITY A ACTIVITY B ACTIVITY C
Event Original Completion
Estimate of Delay
Actual Based Analysis

Activity 1 2 3 4 5 6 7 8 9 10 11
ACTIVITY A ACTIVITY B ACTIVITY C

Original Completion
Why Delay?
Prospective and Retrospective Approaches

P looks forward and anticipates delay
(Preventative; forward looking)

R looks back and establishes cause of delay (Curative; allocation of blame)
SCL Protocol offers another approach to

R; put yourself back at the time of the event and re-assess what might have
happened had things been done

differently.
Activity
Dur
10 11
Completion Date Week 7
A B C D
6 wks 1 wk 2 wks 2 wks
PLANNED PROGRAMME
Original Overall Duration 7 Weeks Critical Path runs through activities A and B
Activity
Dur
10 11
A B C D
AS-BUILT PROGRAMME
As-Built Overall Duration 10 Weeks Critical Path ran through activities C, D and B
Activity
Dur
10 11
Completion Date Completion Date Week 7 Week 10

Bad Weather
A B C D
8 wks 1 wk
VO
d2
d4
Late Info
5 wks 4 wks
d1
Lack of Resources
d3
DELAYING EVENTS
Events d1, d2 and d4 Owner Delays Event d3 Contractor Delay
Activity
Dur
10 11
A B C D
AS-PLANNED IMPACTED
Uses planned programme
Activity
Dur
10 11
A B C D
AS-PLANNED IMPACTED
Add in first delay to occur (d1)
Activity
Dur
10 11
A B C D
AS-PLANNED IMPACTED
Add in first delay to occur (d1)
Activity
Dur
10 11
A B C D
6 wks 1 wk
VO
2 wks 2 wks
d1
AS-PLANNED IMPACTED
Add in first delay to occur (d1) - 1 Week Critical Delay
Activity
Dur
10 11

Bad Weather
A B C D
6 wks 1 wk
VO
d2
2 wks 2 wks
d1
AS-PLANNED IMPACTED
Add in first delay to occur (d1) Add in 2nd delay to occur (d2) - 1 Week Critical Delay - No Critical Delay
Activity
Dur
10 11

Bad Weather
A B C D
6 wks 1 wk
VO
d2
2 wks 2 wks
d1
AS-PLANNED IMPACTED
Add in first delay to occur (d1) Add in 2nd delay to occur (d2) Add in 3rd delay to occur (d3) - 1 Week Critical Delay - No Critical Delay
Activity
Dur
10 11

Bad Weather
A B C D
6 wks 1 wk
VO
d2
2 wks 2 wks
d1
Lack of Resources
d3
AS-PLANNED IMPACTED
Add in first delay to occur (d1) Add in 2nd delay to occur (d2) Add in 3rd delay to occur (d3) - 1 Week Critical Delay - No Critical Delay - 2 Weeks Critical Delay
Activity
Dur
10 11

Bad Weather
A B C D
6 wks 1 wk
VO
d2
d4
Late Info
2 wks 2 wks
d1
Lack of Resources
d3
AS-PLANNED IMPACTED
Add in first delay to occur (d1) Add in 2nd delay to occur (d2) Add in 3rd delay to occur (d3) Add in 4th delay to occur (d4) - 1 Week Critical Delay - No Critical Delay - 2 Weeks Critical Delay - No Critical Delay
Activity
Dur
10 11

Bad Weather
A B C D
8 wks 1 wk
VO
d2
d4
Late Info
5 wks 4 wks
d1
Lack of Resources
d3
COLLAPSED AS-BUILT
Uses as-built programme logic linked
Activity
Dur
10 11

Bad Weather
A B C D
8 wks 1 wk
VO
d2
d4
Late Info
5 wks 4 wks
d1
Lack of Resources
d3
COLLAPSED AS-BUILT
Critical Path Identified and first employer delay removed
Activity
Dur
10 11

Bad Weather
A B C D
8 wks 1 wk 2 wks
d2
d4
Late Info
LackLackResources of of Resources LackLackResources of Resources LackLackResources Resources LackResources of Resources of of of of of of Resources of of of of of of Resources LackResources LackResources LackResources LackResources LackResources LackResources Lack Lack Lack
4 wks
dddddddddddddddd3 333333333333333
COLLAPSED AS-BUILT
Critical Path Identified and first employer delay removed
Activity
Dur
10 11

Bad Weather
A B C D
8 wks 1 wk 2 wks
d2
d4
Late Info
Lack of Resources
4 wks
d3
COLLAPSED AS-BUILT
Critical Path Identified and first employer delay removed 1 Weeks Critical Delay Allocated to d1
Activity
Dur
10 11

Bad Weather
A B C D
8 wks 1 wk 2 wks
d2
d4
Late Info
Lack of Resources
4 wks
d3
COLLAPSED AS-BUILT
Critical Path Identified and next employer delay removed 1 Weeks Critical Delay Allocated to d1
Activity
Dur
10 11

Bad Weather
A B C D
7 wks 1 wk 2 wks
d2
Lack of Resources
4 wks
d3
COLLAPSED AS-BUILT
Critical Path Identified and next employer delay removed 1 Weeks Critical Delay Allocated to d1 1 Weeks Critical Delay Allocated to d4
Activity
Dur
10 11

Bad Weather
A B C D
7 wks 1 wk 2 wks
d2
Lack of Resources
4 wks
d3
COLLAPSED AS-BUILT
Critical Path Identified and next employer delay removed 1 Weeks Critical Delay Allocated to d1 1 Weeks Critical Delay Allocated to d4
Activity
Dur
10 11
A B C D
6 wks 1 wk 2 wks
Lack of Resources
4 wks
d3
COLLAPSED AS-BUILT
Critical Path Identified and next employer delay removed 1 Weeks Critical Delay Allocated to d1 1 Weeks Critical Delay Allocated to d4 1 Weeks Critical Delay Allocated to d2
Results from Model Based Methods

Delay
d1 (VO)
As-Planned Impact
1 week critical delay
Collapsed As-Built
d2 (bad weather)
no critical delay
1 week delay
d3 (lack resources)
2 weeks critical delay
no critical delay
d4 (late info)
no critical delay
Activity
Dur
10 11
A B C D
AS-PLANNED vs AS-BUILT
As-Built Overall Duration 10 Weeks Critical Path ran through activities C, D and B
Activity
Dur
10 11
A B C D
AS-PLANNED vs AS-BUILT (WINDOWS)

Programme divided into time slices and analysed progressively
Activity
Dur
10 11
A B C D

Activity
Dur
10 11
A B C D

Activity
Dur
10 11
A B C D

The planned programme is reconstructed and divided into snap-shot periods

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Planned Finish Date
Ground Works
Basement Floor 1 Floor 2
Floor 3
TIME IMPACT ANALYSIS
Delays occurring within the first snap-shot period are added and the programme is re-analysed
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Planned Finish Date
Ground Works

Delay Influenced End Date
Floor 3
The actual progress within the snapshot period is researched

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Planned Finish Date
Ground Works

Floor 3
The planned programme is updated to reflect the actual progress within the snapshot period and then re-analysed
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Planned Finish Date
Ground Works

End Date based on Actual Progress
Floor 3
The next snapshot period is analysed

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
End Date as at end of 1st snapshot period
Ground Works
Floor 3
Delays occurring within the 2nd snap-shot period are added and the programme is re-analysed
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Ground Works

Floor 3
The actual progress within the snapshot period is researched

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Ground Works

Floor 3
The planned programme is updated to reflect the actual progress within the snapshot period and then re-analysed
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Ground Works

End Date based on Actual Progress
Floor 3
Programme Float
Two Main Types

Terminal Total
Contract Completion Date
10 days
TERMINAL FLOAT
10 days
15 days
TOTAL FLOAT
Who Owns the Float ?
10 days
TERMINAL FLOAT
10 days
10 days
TERMINAL FLOAT
EMPLOYER DELAY
10 days
10 days
TERMINAL FLOAT
EMPLOYER DELAY
10 days 15 days
CONTRACTOR DELAY
10 days
TERMINAL FLOAT
EMPLOYER DELAY
10 days 15 days
CONTRACTOR DELAY Original Contract period
CONCURRENCY

Revision to the Works 4 weeks Insufficient Resources
Bad Weather
4 weeks

Revision to the Works 4 weeks Insufficient Resources
Bad Weather
4 weeks
Revision to the finishing Works
Structure
Contractors M&E design fault identified
M&E
Finishings

Delay A 4 weeks
Actual
Delay B 3 weeks
4 weeks
Completion

Contractors Delay Fault A 4 weeks
Actual
Delay Employers B Fault 3 weeks
4 weeks
Completion

Contractors Delay Fault A
EFFECT OF THE EMPLOYERS FAULT

4 weeks
Actual
4 weeks
Completion
1 Week EOT

Contractors Delay Fault A 4 weeks
1 Week no L&E/ 1 week LDs

Actual
4 weeks
Completion
EFFECT OF THE CONTRACTORS FAULT

Contractors Employers Delay Fault A 4 weeks
Actual
Delay Contractors Employers B Fault 3 weeks
4 weeks
Completion

Contractors Employers Delay Fault A 4 weeks
2 Weeks EoT
Actual
4 weeks
Completion
EFFECT OF THE EMPLOYERS FAULT

Contractors Employers Delay Fault A
EFFECT OF THE CONTRACTORS FAULT

4 weeks
Actual
4 weeks
Completion
1 Week Prolongation costs
THE SCL PROTOCOL
THE PROTOCOL (STRUCTURE)

CORE PRINCIPLES GUIDANCE NOTES
S1. Explains the Core Principles
S2. Deals with Programming and Record Keeping S3. Extensions of Time (Prospective) S4. Extensions of Time (Retrospective)
APPENDICES
A. Definitions B. Model Specification Clause (Programmes) C. Model Specification Clause (Records) D. Illustrations
CORE PRINCIPLES
Good Programme Systems and Management Good Record Systems and Management
Contemporaneous, incremental, assessment of delays and

award of Extensions of Time Time Impact Analysis is the preferred methodology
Float Project owns, Contractor receives compensation

Concurrency Contractor receives Time but no Money Retrospective delay analysis Re-live the Project; contradicts
usual assessment of damage?
GUIDANCE NOTES - S1
Definitions (Appendix A) Extension of Time principles
Float
Concurrency Mitigation (best endeavours)
Variations
Global Claims Overheads
Profit
Acceleration (does not address Constructive Acceleration)
GUIDANCE NOTES S2
Form of Programme (Appendix B)
Method Statement Timetables for issue (Initial and Agreed) Updates and Revisions Software
Record Keeping (Appendix C)
GUIDANCE NOTES S3
Extensions of Time during the Project (Prospective) Time Impact Analysis Updated Programmes Revised Programmes
Level of detail in any analysis

Illustrations (Appendix D)
GUIDANCE NOTES S4
Extensions of Time after the Project (Retrospective)
Four Methods
Updated/Revised Programmes Balance taken re time/costs Consider the terms of the Contract Factual analysis or Entitlement driven? Placing oneself back at the time of the delay
THE PROTOCOL -AIMS Not intended as a contract document Offers specification terms for programme management and record keeping Offers guidance in the management of delay and disruption that is, in the management of change Extensions of Time should be dealt with at the time Time Impact Analysis is the recommended method
THE PROTOCOL -ACHIEVEMENTS Hoped that Contracting Parties would adopt its recommendations Prospective X Hoped/Attempted to have industry contracting bodies adopt it Prospective X Attempted to have the Courts adopt it Retrospective X Delay Analysts adopt it
Added to knowledge; Great Debate!
THE PROTOCOL -CHALLENGES Must be Industry/Profession/Employer led
Main Contractors would be unwise adopting it with

Subcontractors It reduces risk pre-set rules/outcomes It increases risk assumes one solution for all cases Early delays tend to over-compensate the Contractor Protocol needs re-drafting to remove optional aspects
THE PROTOCOL -CHALLENGES Needs to deal more practically with constructive acceleration Should advance a debate on the fairness of condition precedent clauses Does it amend the basis upon which damage is normally assessed?
English law focussed; need to consider other legal systems.
THE PROTOCOL -CONCLUSIONS Drafting requirements
Commercial implications; risk issue

Methodology greatly influences outcomes Practical implications; skills and resources required Not widely adopted yet on live projects Authors to be complemented for creating Great Debate
DELAY CASE STUDY
1 1 STEEL FRAME Sub-Contractor A 2 WALLS & ROOF Main Contractor 3 SWITCH GEAR Sub-Contractor B
10
11
12
13
14
Planned Completion
4 ACCESS GANTRY Main Contractor 200T CRANE Main Contractor

Approved Programme
10
11
12
13
14
Delay 1 Slow Progress
Planned Completion

Approved Programme As-Built Projected
10
11
12
13
14
Planned Completion
Delay 2 Notified Late Switchgear Delivery Delay 3 Inherent Design Fault Discovered
Approved Programme
As-Built
Projected
10
11
12
13
14
Planned Completion
Approved Programme
As-Built
Projected
10
11
12
13
14
Planned Completion
Delay 4 Crane Delay Approved Programme As-Built Projected
10
11
12
13
14
Planned Completion
10
11
12
13
14
Planned Completion
Actual Completion
10
11
12
13
14
Slow Progress
Planned Completion
Actual Completion
Late Switchgear Delivery
Inherent Design Fault
Crane Delay

REVIEW
Collapsed As-Built Method

Inherent Design Fault Crane Delay
10
11
12
13
14
Slow Progress


Inherent Design Fault Crane Delay
10
11
12
13
14
Slow Progress


10
11
12
13
14
Slow Progress
Both equally critical


1 1 STEEL FRAME Sub-Contractor A 2 WALLS & ROOF Main Contractor 3 SWITCH GEAR Sub-Contractor B 2 3 4 5 6 7 8 9 10 11 12 13 14
Slow Progress


Slow Progress
Reverse the Sequence


10
11
12
13
14
Slow Progress
Reverse the Sequence


10
11
12
13
14


Slow Progress

Employers Liability for Week 11 & 12 As-Planned Impact Method

Delay 3 Inherent Design Fault Discovered
10
11
12
13
14
Planned Completion
plus 1 Weeks Float
Approved Programme
Concurrency - No Critical Delay by Subcontractor A

Planned Completion

Approved Programme
Dominant Delay - 2 Weeks Delay by Subcontractor B

Planned Completion

Approved Programme
Answer 1 Month 11 - Subcontractor A Month 12 - Main Contractor Month 13 - Subcontractor B Answer 2 Month 11 - Subcontractor A Month 12 - Subcontractor B Month 13 - Subcontractor B Answer 3 Month 11 - Subcontractor B Month 12 - Subcontractor B Month 13 - Subcontractor B Answer 4 Month 11 - Employer's Liability Month 12 - Subcontractor B Month 13 - Subcontractor B

Challenges Protocol

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Challenges Protocol

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CHALLENGES OF THE SCL DELAY AND DISRUPTION PROTOCOL

Analysis, Claims, Disputes, Resolution)

Contracts and Project Delays

damages are tied to completion date

If Employer causes a delay and there is no EOT

Contracts and Project Delays

SCL Protocol advances Delay Analysis

Extension of Time Methods

Model Based Methods

Actual Based Methods

Model Based Analysis

ACTIVITY A ACTIVITY B ACTIVITY C

Event Original Completion

Actual Based Analysis

ACTIVITY A ACTIVITY B ACTIVITY C

Prospective and Retrospective Approaches

(Preventative; forward looking)

SCL Protocol offers another approach to

happened had things been done

Completion Date Week 7

6 wks 1 wk 2 wks 2 wks

Completion Date Week 7

Completion Date Week 10

8 wks 1 wk 5 wks 4 wks

Completion Date Completion Date Week 7 Week 10

Completion Date Week 7

6 wks 1 wk 2 wks 2 wks

Completion Date Week 7

6 wks 1 wk 2 wks 2 wks

Completion Date Week 7

6 wks 1 wk 2 wks 2 wks

Completion Date Week 7

Completion Date Week 7

Completion Date Week 7

Completion Date Week 7

Completion Date Week 7

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Completion Date Completion Date Week 7 Week 10

Results from Model Based Methods

2 weeks critical delay

1 week critical delay

Completion Date Week 7

Completion Date Week 10

8 wks 1 wk 5 wks 4 wks

Completion Date Week 7

Completion Date Week 10

8 wks 1 wk 5 wks 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)

Completion Date Week 7

Completion Date Week 10

8 wks 1 wk 5 wks 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)

Completion Date Week 7

Completion Date Week 10

8 wks 1 wk 5 wks 4 wks

AS-PLANNED vs AS-BUILT (WINDOWS)

Completion Date Week 7