Schedule Update – Page 3 – Construction and Schedule Management Services

Scheduling Consultants. What will Scheduling Consultants Need from an Owner to Successfully Provide Schedule Support Services?

Now that you’ve engaged your planning and schedule professional, what will you need to provide this consultant for them to be able to successfully provide the schedule support services you need?

Before any schedule review can begin…..

First, they need to understand the project. To do this, they need to learn the basic scope of the project. They will need the IFB or RFP docs with addendums, the successful contractor’s proposal, the award documents (if the contract is already awarded), your reporting requirements or preferences, and a list of stakeholders.

They need to understand what the schedule requirements are for your specific project. (Hopefully, you require a critical path method (CPM) schedule with specific activity coding, calendar, schedule and calculation requirements). The schedule consultant needs to know what the successful contractor proposed and any exceptions they may have included. The schedule consultant needs to know what your reporting preferences are, in addition to whatever requirements you have provided. The schedule consultant needs to know who the project stakeholders are and how you want their reporting formatted, or if you want stakeholders getting reports directly from any scheduling consultants at all.

All planning and scheduling consultants must develop a basic idea of the project work breakdown structure (WBS) and organizational breakdown structure (OBS) the contractor will likely develop. This is basically an organized list of the project deliverables broken down into work packages and a list of individuals or companies from which to assign a responsible party for each package. This is necessary for the review of the contractor’s schedule development and validation that the entire project scope is included by the contractor.

Baseline Schedule Development….

The contractor will develop a preliminary or baseline schedule, (depending on the contract requirements…), and submit for your review. This needs to be forwarded to the schedule consultant immediately. Scheduling consultants will review the WBS & OBS for completeness and organization. Scheduling consultants will then verify calendars have been set up and assigned. They will review resource and cost loading, (If these required by the contract). They will verify schedule and calculation settings meet the contract requirements. They will review several schedule metrics and develop review comments. Scheduling consultants will verify required milestones are included and review the use of activity constraints. Scheduling consultants will review the proposed work sequence for reasonableness. They will review activity durations for reasonableness and note anomalies. Scheduling consultants will verify the schedule period of performance meets the contract requirements. They will then create reports and review comments for your use.

The baseline development process may require a couple of passes to get to an acceptable project baseline schedule. Once this is completed, the schedule consultant will set up schedule performance metrics to use for measuring the contractor’s progress against the baseline and subsequent accepted schedule updates.

This will provide you with a project baseline schedule, (and hopefully it is a CPM baseline schedule), based on the contractor’s plan to execute the project, of which you can have confidence in. You can use this schedule with a high degree of confidence, (If you have a CPM schedule).

Managing Updates, revisions, change orders and recovery schedules…

The planning and schedule professional will be able to review periodic schedule updates provided by the contractor and compare the progress against the baseline schedule or the most recently accepted update and identify delays in the contractors work and trends in work areas which could potentially delay work at a later date. They will do so by comparing the performance for the current period schedule update against the previously accepted schedule update and the baseline schedule and then analyzing changes the contractor makes to the schedule update. This is much easier if the contractor updates the schedule in a two-part process. First the contractor updates the progress only, with no revisions, and submits for review. This schedule will most likely include out-of-sequence work and total float values which are not acceptable. That’s fine, we only want to see what updating the progress did. Now the contractor can make schedule revisions as necessary to correct out-of-sequence work and model their plan to complete the remaining scheduled work. This is the schedule they will submit, and you will accept based on the review and comments of the schedule consultant.

If you need to make changes or additions to the contract, you will, of course, request pricing from the contractor and negotiate this additional work or change in scope. The contractor should also be including a request for additional contract time to incorporate this additional work or change in scope. Or they should be stating that no time extension is needed or requested. Prior to sending the contractor your request for change pricing, you should have your schedule consultant review the change and the potential impact to the currently accepted schedule. This involves the schedule consultant creating a “fragnet” or subnet of schedule activities to model the change order work and inserting it into the most recently accepted schedule to analyze the impact to this schedule. (This is the same as having an owner’s independent estimate completed prior to receiving the change order proposal from the contractor). The schedule consultant will then compare the contractors request for time to the estimate created and develop a contemporaneous Time Impact Analysis. This is the best way to manage potential time extension claims. Address them now and get them negotiated as part of the current change order. The schedule consultant will review the contractor’s “fragnet” for reasonableness and report on the impact to the project’s current critical path. This is what determines the change in contract duration, (if you have a CPM schedule).

If your contractor falls behind in their progress, based on the most current accepted schedule, you will most likely require them to develop and submit a recovery schedule. This schedule will need to be reviewed by your schedule consultant and also be accompanied by a narrative defining how the contractor plans to implement the recovery. Be it through additional work hours, an increase in resources, and prefabrication of assemblies…… The schedule consultant will look at the plan for recovery and compare proposed durations against historical project performance and production rates and verify the plan meets the required finish date. You will want to be involved in this review. If it cannot be determined that the contractor can actually implement the plan for recovery or the contractor’s plan is just not reasonable, there needs to be a discussion with the contractor. Your schedule consultant can provide this analysis and reporting to support your discussion.

Summary…

The owner absolutely needs a planning and schedule professional on their team to act as their advocate for the project schedule development and management. Not using professional planning and scheduling consultants is kind of like just accepting any price proposal the contractor provides with a change order request or any periodic invoice amount the contractor submits without any verification of validity by a competent team member. You would not follow a process like that for cost management. Unless you have a competent team member to validate all schedule actions, you’re not really managing your project schedule…..

I realize this is a simplistic view of the entire schedule oversight process. This is intended for use by small CMa’s and owners that do not have a planning and schedule professional on their team or completely understand the necessity of CPM schedule and professional schedule oversight.

Please visit https://conschmanservices.com to learn more about basic schedule concepts.

Please visit my LinkedIn account to learn more about me.

Paul Epperson CCM, PMP, PSP, PMI-SP

Scheduling Consultant. Why would a Project Owner need a Professional Planning and Scheduling Consultant? Isn’t the Contractor Responsible for the Schedule?

It is surprising that many project owners don’t obtain any assistance with managing the general contractors’ schedule. They have PM’s on staff who look at the Gantt Charts and perhaps ask about milestone completion dates or basic duration or logic details. Universities, financial and medical groups usually employ a Construction Manager as Agent (CMa) to help with very large projects; other times they choose CM at Risk as the project delivery vehicle. Only they don’t have anyone as their schedule advocate after the project goes to construction. Or if they have medium and small projects, they don’t employ any CM assistance with at all.

The Gantt Chart is not much value to the owner if they don’t know how the schedule settings and calendars and logic are set up. Most PM’s on the owner’s team don’t have the background, training or experience to look at the schedule and check these. They really need someone to help them review the schedule development and update process to work as their advocate. That someone is a Professional Planning and Scheduling Consultant.

Without having the ability to open the schedule and analyze the settings and data, the owner has no way of validating the schedule as presented. While contractors don’t intentionally produce schedules that do not meet the contract requirements, it happens all too often. The only way to know is to have the training, experience and ability to analyze the schedule file.

The owner really needs to know what the schedule calculations are set for. Is it retained logic or progress override? How is the “critical” path determined? By longest path or a total float value? Are calendars established, and if so are they assigned to activities? What type of percent complete is selected? What type of activities are in use? Are there lags in use? All of these settings and selections impact how the schedule calculates. The owner should have specified requirements for these, and other items. The owner also needs to be able to check these.

The contract typically requires the use of a minimal set of activity codes. If it does not, the contractor should include at least a few activity codes for their own use. There is no reason the owner can’t use these activity codes to help group, filter and sort the schedule activities for their own use in analyzing the schedule for resource usage, area congestion, and activities specifically coded to the owner for responsibility. The owner can always request this from the contractor, but why shouldn’t the owner be capable of performing these tasks? Even if it is through the use of a professional scheduling consultant. That way they know exactly what the filter, layout, and grouping is set for.

And finally, why can’t the owner use the most recent update to run “what if” scenarios? Perhaps, in addition to creating a preliminary cost estimate for a potential change order, the owner creates a draft fragnet and adds it to the schedule to see what the potential time impact could be? This would certainly help with documenting and supporting the business decision to issue a request for proposal for a change order. How many times has an owner issued a request for proposal only to determine the price or schedule impact is too great after the contractor develops their proposal with time and cost included? This just wastes the contractor’s resources, often results in the contractor holding the start of the work being changed to prevent rework, and allows the owner more control over the project’s change management.

This is a simplified version of the topic of owners using a scheduling consultant or CMa services for schedule oversight and intended only to create thought and discussion of the issues surrounding this topic. Many owners aren’t aware of the benefits which having the ability to really analyze the schedule will provide. They have gotten by with looking at Gantt Charts so far, why should they change now?

Please visit https://conschmanservices.com to learn more about basic schedule concepts.

Please visit my LinkedIn account to learn more about me.

Please visit my “The Blue Book” ProView.

Paul Epperson CCM, PMP, PSP, PMI-SP

Schedule Management. Why should a General Contractor invest in the use of Critical Path Method, (CPM) Scheduling when they have gotten by with “Schedule by Date” bar charts for so long?

Many contractors I’ve worked with in my role as a planning and schedule professional consultant, had been developing their schedules in-house using their Project Managers, (PM’s) or Superintendents. Who better knows the project requirements! They had been using the basic functions of a simple schedule program and had been setting “milestone dates” for the completion of major pieces of the work. They used some logic, but not complete logic. They inadvertently set constrained dates for most of the activities. They let the program use the default calendar, whatever that was. They did not do any coding. They did not have a schedule driven by the durations and relationships of the work. They also did not have a schedule management process.

Basically, they had a list of tasks and milestone goals and they managed their work to that plan. They made adjustments to the dates and progress as they went along, and believed they were managing the schedule and the project. If it isn’t broke don’t fix it, right?

This is definitely not schedule management!

Why not, at the very least, consider what stepping up to CPM scheduling could do for your project control and management?

If your project team is encouraged to learn more about Critical path Method, (CPM) scheduling, it will only help them see ways they can better manage their work. My most recent client, (like most of my clients), considered going through the SOW to verify all work was in the schedule to be very familiar. But they enjoyed the intensive exercise of building all the activities to support the execution of each piece of the project and then adding the relationships to “plan” how the work will be sequenced. They always remark that it makes them look at the project differently. They like how developing the complete logic for the schedule forces them and other project team members to really think about how the coordination of the various trades and deliveries and sequential logic for the submission/deliver/construct sequences impacted other areas they had not considered. They also enjoy having more direct control over their execution plan and having the ability to easily see when work is slipping, and which corrective actions will actually help maintain the project completion date.

Having the control over their planning and scheduling of the project has given these PM’s and Superintendents and their project teams much greater control over the project execution and their ability to proactively manage their work. It’s much better to proactively manage potential issues than spend your time putting out the fires that aren’t apparent until that specific trade is at a log jam in the work flow.

These PM’s and Superintendents don’t have the time to learn a new skill set specific to planning and scheduling. They already understand how logic works and how the activity relationships affect the sequencing of the work. What they don’t have is the specialized training and experience to understand how the calendars, resource assignments, and schedule calculation options work behind the scenes to deliver the schedule model they need. That is why they need the assistance of a planning and schedule professional to work with them as a schedule consultant to develop and manage the schedule. A good schedule consultant will work with your project team to model the project and set the calendars, resources and schedule calculations settings specific to your project. This relieves your project team of the burden of trying to make a software program they are not experts with work to fit their contract requirements and provides you with an as-needed expert resource for this specific skill set.

Having the true CPM schedule will allow your project team to identify slippage or trends in a particular trade or in a specific area and model what corrective action is best for the mitigation of this event. No guess work, no just tell them to “get back on schedule”. Your project team can actually analyze which options will produce the most efficient use of resources and obtain the required result. This is an important part of the Schedule Management process.

It does however, require a good bit of up front work during the CPM schedule development phase, but this work actually helps to identify missing scope and helps with the initial coordination of your work forces. Owners are also held accountable with a CPM schedule. The schedule includes activities for all work or deliverables for which the owner is responsible. This allows them to better plan their involvement and allows you to better coordinate this work. A well-maintained CPM schedule is also critical for managing change orders and delays to work. Once both parties agree on how the additional work or delay should be inserted into the most current updated and accepted schedule, there isn’t much to negotiate. The schedule either supports the impact claim or it does not.

The bottom line is that there is no really good reason not to plan and schedule your work with a CPM schedule. It aids in the planning, scope validation, execution management and change order/delay management. If the schedule is also cost loaded, it makes invoicing easier as well. There is a reason almost all large general contractors and large projects require the use of CPM schedules. They work.

I recommend any general contractor not currently using CPM planning and scheduling for their projects, at least, talk to a planning and schedule professional. It can’t hurt and you might be surprised at how much using a CPM schedule approach and having a schedule management process will help your projects succeed.

Please visit https://conschmanservices.com to learn more about basic schedule concepts.

Please visit my LinkedIn account to learn more about me.

Please visit my “The Blue Book” ProView.

Paul Epperson CCM, PMP, PSP, PMI-SP

Construction Project Scheduling. How does the CPM Schedule Progress Update Process Work, and What Basic Information does the Schedule Consultant Need from the General Contractor to Accomplish the Schedule Progress Update?

You have an approved baseline project schedule and you are working your plan. That is great. You are utilizing a valid tool to proactively managing your project. But, you still need to monitor the actual work progress and take corrective action as necessary to maintain your scheduled plan to execute the project. This is an important part of the construction project scheduling process.

Best practice, for most projects, is to update the project schedule progress weekly. This allows you early identification of schedule slippage. Most contracts require monthly schedule updating and reporting to the owner or Construction Manager Agent, CMa. You should really do both. Complete weekly progress updates for your own use and provide monthly reporting as required.

What progress information do you need to provide the planning and schedule professional for the CPM schedule update process?

Before you begin the update process, the frequency of reporting and report requirements needs to be established and planned for in the CPM schedule development process. (Which is part of the master construction project scheduling process).

The planning and schedule professional will require several key pieces of information for each activity in order to properly update the schedule progress.

They need the data date, (as-of date) for the update. (This is probably specified in the contract documents).
They need the actual start date for each activity started. (This should be recorded in your daily reports by activity number. It makes it much easier to remember the information).
They need the actual finish date for each activity completed. (Again – Daily Reports)
They need the physical percent complete, (% of actual work accomplished) for each activity. (This is a judgment call based on measurable work completed. Like the number of windows installed against the total quantity required for the activity).
They need the estimated finish date for any activity underway. (This is a judgment call based on production to date and expected production to complete).

These five simple pieces of information, when assigned to each activity, will allow your schedule consultant to produce a schedule which provides new calculated start and finish dates for all remaining work based on the relationships assigned during the CPM schedule development process and the progress to-date with the expected production rates of in-progress activities.

Note: It is a good idea to keep a copy of this updated only schedule for future reference.

This is a great time to analyze where you’re at on your schedule and look at any corrective action necessary to “get back on schedule”. But before you do this, you need to look at any work you’ve executed out-of-sequence to the plan. Perhaps you were able to start an activity prior to the completion of the activity’s predecessor. That’s OK. You should make any schedule revisions necessary to correct any out-of-sequence logic so the schedule progress matches your as-built progress. This is a good practice and will help with any revisions you need to now make to get “back on schedule”.

Note: Rarely is the project “on schedule” after an update. At a minimum, there is likely to be out-of-sequence work even if you have maintained the scheduled finish date.

Now you can make revisions to your planned logic and/or durations to reflect your plan of execution for the remaining work. This should be based on actual, corrective action you intend to take. You need to provide this information to the planning and schedule professional. This will most likely be an iterative process you go through with your schedule consultant.

Once you’ve completed the revision process to “get back on schedule”, you have an updated schedule which can be submitted in support of your monthly invoicing or used in-house. If you contract requires your schedule to be cost loaded, you should verify the dollar values calculated for each period update match the physical percent complete, (actual work in place or whatever your contract requirements allow). Many contracts which require the project schedule to be cost loaded base the monthly invoicing on this value, rolled up for each activity.

This “schedule update” is the schedule any future work will be measured against for period performance measurement. (In addition to measuring against the most recent approved baseline schedule). This is also the schedule any new change orders will be based on.

Note: It is imperative you maintain an accurate schedule throughout the project. Without an accurate updated CPM schedule, you will struggle to substantiate any delay claims or requests for time for change orders.

There is more detail which can be measured when updating the schedule progress such as units completed and labor hours expended. These are great to measure and track. But I consider these more advanced items than the typical small to medium size general contractor will have the resources to accurately forecast or manage on a daily basis.

Revising the schedule for delays or change orders is another topic. Developing the projects’ CPM baseline schedule and managing the periodic CPM schedule update process are basic building blocks of schedule management and the construction project scheduling process.

Please visit https://conschmanservices.com to learn more about basic schedule concepts.

Please visit my LinkedIn account to learn more about me.

Please visit my “The Blue Book” ProView.

Paul Epperson CCM, PMP, PSP, PMI-SP