As promised, we will now discuss what international standards recommend when dealing with concurrent delays.
We already know that concurrent delays occur when two or more delays happen at the same time, leading to a compound impact on the project timeline. The really interesting case is when some delays are the contractor’s responsibility, while others are the owner’s. Concurrent delays refer to situations where multiple factors contribute to a delay in the project, making it challenging to assign responsibility for the overall delay.
“Both parties need the project to be completed. As a natural outcome, owner and contractor are actually partners, instead of opponents.”
When something like that happens, we need to explore what international standards recommend to achieve a reasonable solution, meaning a solution able to be accepted by both parties.
At the end of the day, both parties need the project to be completed. The owner needs a productive project generating income as soon as possible, while the contractor needs to be paid for a successfully completed project. As a natural outcome, owner and contractor are actually partners, instead of opponents in a fight.
The most important international standards dealing with concurrent delays are the Association for the Advancement of Cost Engineering (AACE), the American Society of Civil Engineers (ASCE) and the Society of Construction Law (SCL).
- Association for the Advancement of Cost Engineering
AACE takes a position of recognition and appropriate management regarding concurrent delays in construction projects and acknowledges that concurrent delays can present significant challenges for all parties involved in a construction project. While there is no single, universally accepted definition of concurrent delays, AACE advocates for a clear understanding of this concept and the implementation of project management practices that adequately address these situations.
AACE emphasizes the importance of properly identifying and documenting concurrent delays throughout the course of the project. This involves gathering accurate data and records, including the start and finish dates of each activity, the allocated resources, and any external events that may have affected the project's progress. This accurate documentation is crucial in establishing a solid foundation when dealing with concurrent delays.
Furthermore, AACE stresses the importance of transparency and effective communication among all parties involved in a construction project. It is essential for
owners, contractors, and subcontractors to collaborate and share information in a timely and accurate manner to resolve concurrent delays fairly and equitably.
In terms of dispute resolution, AACE suggests the use of alternative methods such as mediation or negotiation before resorting to costly and protracted legal processes. These alternative approaches can help parties reach mutually satisfactory agreements and
avoid escalating conflicts.
In summary, the AACE's position regarding concurrent delays highlights the importance of accurate documentation, transparency, and effective communication in construction project management. It promotes a collaborative approach and the adoption of alternative dispute resolution methods to address and resolve concurrent delays in a fair and efficient manner. By following these guidelines, construction projects are expected to minimize the impact of delays and achieve successful outcomes.
- American Society of Civil Engineers
ASCE emphasizes the importance of proactive management and effective communication to address and mitigate the impacts of concurrent delays.
Firstly, the ASCE recommends implementing a robust project management system that includes accurate scheduling and documentation. This involves developing a detailed project schedule that identifies critical activities and their dependencies. By maintaining an up-to-date schedule and recording any changes or disruptions, it becomes easier to identify and analyze concurrent delays.
The ASCE also emphasizes the importance of proactive communication and
collaboration among all project stakeholders. Timely and transparent communication can help identify potential delays and enable the parties to collectively explore mitigation measures. Regular project meetings, progress reports, and clear lines of communication should be established to foster a collaborative environment.
In the event of concurrent delays, the ASCE suggests using a dispute resolution mechanism to assess the impact of each delay factor and determine their respective responsibility. This may involve engaging independent experts or a dispute resolution board to evaluate the delay claims objectively. The ASCE encourages parties to consider alternative dispute resolution methods, such as mediation or arbitration, to achieve a fair and timely resolution.
To minimize the impact of concurrent delays, the ASCE recommends implementing concurrent delay analysis techniques. These methods involve assessing the critical path of the project and analyzing the effects of different delays on the project timeline. By quantifying the effects of concurrent delays, project stakeholders can better understand their impact on the overall schedule and identify potential mitigation strategies.
It is important for project participants to document all delay events and maintain accurate records throughout the project. This includes recording the dates, causes, and
impacts of delays, as well as any mitigating actions taken. Proper documentation provides a reliable basis for assessing concurrent delays and can help in the resolution of disputes.
In summary, the ASCE recommends proactive project management, effective communication, and collaborative dispute resolution mechanisms to address concurrent delays. By implementing these strategies, project stakeholders can better manage and mitigate the impacts of concurrent delays, leading to successful project completion.
- Society of Construction Law
The SCL emphasizes the importance of understanding the complexities of concurrent delays and suggests various approaches to deal with them effectively.
One key recommendation by the SCL is the use of contemporaneous records. It is crucial to maintain accurate and detailed records throughout the project, documenting the events, causes, and effects of delays as they occur. This includes recording the progress of activities, any disruptions, and the reasons behind them. Contemporaneous records serve as a valuable resource for analyzing and assessing concurrent delays.
The SCL also suggests conducting a time impact analysis (TIA) to evaluate the effects of concurrent delays on the project schedule. A TIA involves assessing the critical path of the project and analyzing the impacts of various delays on the project timeline. This analysis helps identify the extent to which each delay has affected the project and provides a basis for determining responsibility and entitlement for time extensions.
To address concurrent delays, the SCL recommends implementing a collaborative approach and open communication among project participants. It is essential for parties to engage in timely and transparent discussions regarding the delays and their potential impacts. This allows for early identification of concurrent delays and facilitates the development of appropriate mitigation strategies.
The SCL also advocates for the use of alternative dispute resolution (ADR) methods to resolve disputes arising from concurrent delays. ADR methods such as mediation or expert determination can help parties reach mutually acceptable resolutions in a more time-efficient and cost-effective manner compared to traditional litigation. By choosing ADR, parties can work together to find practical solutions that mitigate the impact of concurrent delays.
Furthermore, the SCL highlights the importance of contract management and proactive risk management practices. Clear and well-drafted contracts should address the allocation of risks associated with concurrent delays and provide mechanisms for addressing them. Proactive risk management involves identifying potential concurrent delays early on, implementing mitigation measures, and promptly notifying relevant parties to mitigate their impact.
In summary, the SCL recommends maintaining contemporaneous records, conducting time impact analysis, fostering collaboration and open communication, utilizing alternative dispute resolution methods, and practicing proactive contract and risk management to effectively deal with concurrent delays in construction projects. By adopting these recommendations, parties can better manage concurrent delays and mitigate their impacts on project schedules and costs.
As we can see, there are some common recommendations across all the reviewed standards: appropriate and proactive management (which includes risk and contract management), data and contemporaneous records, transparency, collaboration, open and effective communication, and alternative (collaborative) dispute resolution mechanisms.
It seems obvious that the underlying principle to all reviewed standards is that owner and contractor are part of the same team, since both share the same goal: to finish the project as close as possible to the plan, both in time and cost. Any deviation increasing time or cost means a common problem, the approach should be a collaboration, not a confrontation.
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