Providing Expert Solutions For Projects Worldwide

Providing Expert Solutions For Projects Worldwide

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By: Robert McCue

Shipyard Contracts: New Construction vs. Ship Repair

Contracts for the construction of new ships have many key differences from contracts for ship repair. The most obvious difference concerns the type of work (new versus repair) but other important differences exist concerning the nature and extent of changes, scheduling, engineering and contract claims. Attorneys and others involved in contract administration and dispute resolution need to understand these important differences.

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Why is there a Labor Overrun?

On a large multi-million dollar project, it shows up in the cost reports. On a smaller project, the schedule may start to show specific activity schedule slippage. The same estimator developed the bid, the project scope has not changed and your most trusted foreman says he has excellent crews. You might be experiencing labor inefficiencies and probably don’t know it. The cost reports and schedules might tell you that it occurred, but it will require additional data / analysis to determine why it has occurred and who has caused it to prove entitlement and to calculate your recovery costs.

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Avoiding Death by a Thousand Cuts

Cost and Schedule Issues

You are a month and a half into construction of a planned one year project. It’s a new client and if you do well, you are in line to construct his future projects. However, the Engineers’ drawings don’t quite match the existing site conditions; there is already an inordinate amount of Requests for Information (RFIs), and the Client is very involved with your construction means and methods. No change orders have been written because 1: You “worked-around” the site layout problems; 2: There is still time to resolve the unanswered RFIs and 3: The finish milestone on the project has not been affected because you used float in the schedule. In any event, you don’t want to “nickel and dime” the new client.

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Time Impact Analysis (TIA®)

Robert C. McCue, P.E., Consulting Engineertia-graphic
Stephen M. Rymal, P.E., Esq., Consulting Engineer

MDC Systems®

Critical Path Method (CPM) schedules and formalized methods of analyzing schedule impacts started to enter mainstream construction management practice in the early 1980’s. At that time, the industry recognized a need to accurately and scientifically measure schedule delays and conversely the affects of acceleration in real time during construction and also retrospectively after the work was completed. The ability to determine which party ultimately bore responsibility for schedule delays became the main focus on many projects as the assessment of liquidated damages or granting compensable time extensions became critically important to both owners and contractors. Just as the Rosetta Stone provided scholars with a means to translate Egyptian hieroglyphics into Greek text, Time Impact Analysis (TIA®) provides users with the means to translate Critical Path Method (CPM) activities into understandable schedule impacts.

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Risk Management: Insuring Continuity of Supply

Over the last several years, supply management professionals have been spending a majority of their time in creating, implementing and managing Business Continuity Planning (BCP) for critical products, materials and services. BCP is a strategic management process that focuses on insuring continuity of supply. The main objective is to identify and minimize or eliminate business interruptions in the event of a catastrophic event or major incidents occurring within the supply chain that can lead to adverse consequences for your business. Ten to twenty years ago, supply disruptions were caused by major snow storms, truck breakdowns, labor strikes, fire or explosions, electrical outages, machine breakdowns or even a truck driver making an unscheduled social visit.

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More Than Just Counting Rainy Days: Documenting Weather Delays

by Michelle N. Delehanty, PE, PMP
MDC Systems® Consultant

According to the farmer’s almanac, this upcoming winter is predicted to be more severe than last year, which already seems as if it were one for the record books. For many regions throughout the United States, that means a multitude of storms, extreme cold, and potential closings to schools, offices, and, most problematic, construction sites. These closings of construction projects can lead to schedule delays, change order requests, and ultimately claims. In order for a contractor to justify to the owner that there is indeed a weather-related construction delay, they must demonstrate four specific things: (1) that the delay is within the terms of the contract (2) that the activity delayed had a direct effect on the project end date (was on the critical path), (3) the weather event occurred in excess of the “normal” weather for the season, and (4) there is documentation of which specific activities were delayed on each weather occurrence.

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Primavera Scheduling

Robert C. McCue, P.E.
MDC Systems®
Consulting Engineer

Recently, MDC Systems® made the jump from Primavera P3 (version 3.1) to P6. However, the landing was a little rough- initially, erroneous information was received from a Primavera representative and then outside IT consultants had to be brought in to resolve issues with the server installation. If the installation experience is any indicator, it seems likely that P6 will require more IT overhead on an ongoing basis. This is in addition to the learning curve for the new features and capabilities of P6.

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