DELAY ANALYSIS PROCEDURE

Doc. No. xx-xx-xx-xx

XYZ PROJECT

CLIENT NAME

Agreement No: XXX/XX/XX/XX/XX

DELAY ANALYSIS PROCEDURE

Doc. No.: xx-xx-xx-xxxx
Document Class: 1

CONTRACTOR NAME

Reviewed Approved
Rev. Date Description Originator
By By

1 12-Dec-15 Issued for Implementation (IFImp)

Mujahid
B 30-N0v-15 Issued for Approval (IFA) Name Name
Akhtar

A 01-Nov-15 Issued for Review (IFR)

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TABLE OF CONTENT
1. Project Introduction & Background ............................................................................................3

2. Purpose of the Procedure ..........................................................................................................3

3. Acronyms & Abbreviations ........................................................................................................4

5. Overview and Potential Causes of Project Delays .......................................................................6

6. Roles and Responsibilities ..........................................................................................................8

7. Project Schedule & Key Milestones .......................................................................................... 10

8. Data Gathering for Delay Analysis ............................................................................................ 10

9. Delay Analysis Methodologies ................................................................................................. 11

10. Delay Analysis by Window Analysis/Time Impact ..................................................................... 12

10.1 Overview ................................................................................................................................. 12

10.2 Delay Analysis Steps ................................................................................................................. 12

10.3 Excusable Delay ....................................................................................................................... 12

10.4 Non-Excusable Delays .............................................................................................................. 12

10.5 Window Analysis/Time Impact Technique ................................................................................ 13

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1. Project Introduction & Background

Provide below the Project introduction and background, usually given in Agreement.

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Fig-1: Provide here schematic of your Project (if applicable)

2. Purpose of the Procedure

There are always chances that delay events may occur during the lifecycle of the project, and impacting project progress,
resulting in delays of project milestones or overall completion. The purpose of this procedure is to define and outline the
process of analyzing why the delay has happened or what the expected impact of an event(s) will be. Delay analysis an
important tool for the project management team to take appropriate decision during lifecycle of the project. The
procedure will be aimed to identify all delay events considering the variances in progress of the project. The process starts
by data gathering of the relevant project records, then analyzing collected data, linking facts and figures, attributes of
delays etc. The delay analysis results are then represented using different types of tables.
All delays from baseline plan will be analyzed to identify the root causes and proposing relevant and suitable corrective
actions. Although many techniques are available to perform the delay analysis, however for this project, delay analysis will
be performed by using “window analysis/time impact analysis”. Window Analysis is a retrospective method that breaks
the construction period into discrete time increments and examines the effects of the delays attributable to each of the
project participants as the delays occur. It adopts the as-planned schedule as its baseline, but the as-planned schedule is
periodically updated at the end of each planned time period.
Further define the purpose and scope below as per your contract and organization & client requirements.

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3. Acronyms & Abbreviations

Include acronyms & abbreviations w.r.t. this PEP below

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XYZ COMPANY

ABC CONTRACTOR

DEF CONSULTANT

PEP Project Execution Plan

ACWP Actual Cost of Work Performed

CP Cathodic Protection

E&I Electrical and Instrumentation

HAZID Hazard Identification

HAZOP Hazard and Operability

LLI Long Lead Item

LOI Letter of Intent

QA Quality Assurance

QC Quality Control

QMS Quality Management System

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4. Reference Documents

Document Title Document No.

Engineering Execution Plan xx-xx-xx-xxxx

Construction Execution Plan xx-xx-xx-xxxx

Procurement Execution Plan xx-xx-xx-xxxx

Project Control Procedure xx-xx-xx-xxxx

Project Quality Plan xx-xx-xx-xxxx

Project HSE Plan xx-xx-xx-xxxx

Document Control Procedure xx-xx-xx-xxxx

Change Control Procedure xx-xx-xx-xxxx

Interface Management Plan xx-xx-xx-xxxx

Project Document Numbering Procedure xx-xx-xx-xxxx

Project Coordination Procedure xx-xx-xx-xxxx

Your Text Here xx-xx-xx-xxxx

Your Text Here xx-xx-xx-xxxx

Your Text Here xx-xx-xx-xxxx

Your Text Here xx-xx-xx-xxxx

Your Text Here xx-xx-xx-xxxx

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5. Overview and Potential Causes of Project Delays

Delay is a time event during which, few or many activities of the project has been extended or are not performed due to
an unanticipated circumstance or event. Anyone or all the project stakeholders can be responsible for activities or
deliverables delay.
Usually following are the major project key stakeholders:
• Client
• Consultant
• Contractor
• Sub-Contractor
• Vendors
• Third Party Agencies
• Statuary Authorities
• Others

There are several causes of project delays and every delayed project will have its own problems and reasons. Sometimes,
it may be a single trigger event that leads to delays or a combination of events that will result in the project schedule and
cost overrun.
Below are some of the common reasons for the project delays;
Project Initiation Phase:
• Inherited Bidding Inaccuracies and Estimation Mistakes
• Aggressive Un-realistic Schedule
• Project Complexity
• Delay in the Bank Guarantees/Performance Bond and Advance Payment
Project Planning Phase:
• Changes in Rely Upon Data/Information
• Client-Side Delays e.g. Approval of Deliverables
• Weak or Poor Project Planning
• Delay in Obtaining NOC Or Permits from Statutory Authorities
• Team Competency Gaps
• Delay in Selection and Mobilization of the Project Management Team
• Inadequate & Inefficient Project Management Consultant’s Team
• No Consideration of Previous Project’s Lesson Learnt
Project Implementation Phase:
• Delay in Engineering Queries and Resolution
• Engineering/Design Issues and Changes
• Ineffective Leadership and Poor Decision-Making
• Inadequate & Inefficient Contractor and Client Management Team
• Inadequate & Inefficient Labor
• Inadequate Construction Equipment & Machinery
• Cultural Difference in Team
• Delay in Materials Ordering
• Delay in Manufacturing and Delivery of Materials
• Defective Materials and Supplies
• Poor Preservation of Materials and Equipment
• Budget Inaccuracies & Poor Cash Flow
• Serious HSE Violations and Accidents
• Environmental/Weather Un-Avoidable Events
• Unavailability of Labor, Material, or Equipment
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• Labor & Material Cost Escalation

• Delay in Sub-Contracting and Mobilization
• Construction Implementation Failures
• Geopolitical and Economic Conditions
• Lack of Effective Communication
• Construction Works Quality Issues and Reworks
• Change in Government Regulations and Laws
• Delay in Permit to Work (PTW) issuance and compliance
Project Monitoring & Control Phase:
• Poor Project Monitoring and Control
• Scope Changes and Variations
• Poor Interface Management
• Poor or No Project Risk Identification, Analysis, and Mitigation
• Idle Labor & Equipment Cost
Project Close-out Phase:
• Lack in Provisions for Feedstock for Commissioning and Startup Activities
• Early Demobilization of Project Management Team
• Delay in Punch List Clearance
• Improper or Deficient Project Close-out Report
• Delay in Provisional Acceptance Certificate Issuance
Some of the above causes of delay are critical while others are non-critical. A critical delay cause is one responsible for
impacting project schedule and cost w.r.t. baseline while a non-critical delay cause may not impact schedule or cost of the
project; however, non-critical delays may influence intermediate project milestones/ activities when completed late than
scheduled completion.
A delay where the contractor will be entitled to an extension of time (EOT) or cost compensation and/or both, under the
standard terms & conditions of the agreement is an excusable delay. In that case, contractors usually don’t have any
control over the activities getting delayed beyond the baseline. The examples of excusable delay including but not limited
to following;
• Force Measure Clause
• Natural Catastrophes e.g. Storms, Flooding, Earthquake, etc.
• Political/Social Turmoil
• Terrorism-Related Incidents
• Delay from Client e.g. Approvals, Decisions, etc.)
Whereas a delay where the contractors are entirely responsible for the activities being delayed and resulted in EOT
(critical delays) is non-excusable delays. In that case, the contractors must bear the risk of costly consequences. The
examples of non-excusable delay including but not limited to following;
• Delayed Mobilization of Manpower & Equipment
• Delayed Procurement & Material Deliveries
• Delayed Submission of Deliverables
• Poor Planning & Monitoring and Control
Further define the scope below as per your contract covering complete project lifecycle

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6. Roles and Responsibilities

Explain roles and responsibilities for each position w.r.t. this procedure and as per your Organization requirements.
• PROJECT MANAGER
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• ENGINEERING MANAGER
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• PROCUREMENT MANAGER
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• CONSTRUCTION MANAGER
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• COMMISSIONING MANAGER
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• PROJECT CONTROL MANAGER
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• INTERFACE MANAGER
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• QA/QC MANAGER
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• HSE MANAGER
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• OTHERS
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7. Project Schedule & Key Milestones

Here you can mentioned about Project Start and Completion Date as per contract and other major milestones for reference
and then can compare the results in the delay analysis report. (Optional)

Milestone
Milestone Description Contractual Date
No.
M1 Effective Date of Contract (Project Start) 21-May-2015
M2 Project Kick Off Meeting Your Text Here
M3 Finish Project Team Mobilization Your Text Here
M4 Commence Engineering Your Text Here
M5 Issue Project Procedures Your Text Here
M6 Complete Engineering Your Text Here
M7 LLI’s Ordered Your Text Here
M8 Commence Temporary Facilities Your Text Here
M9 Your Text Here Your Text Here
M10 Your Text Here Your Text Here
M11 Your Text Here Your Text Here
M12 Your Text Here Your Text Here
M13 Your Text Here Your Text Here
M14 Your Text Here Your Text Here
M15 Your Text Here Your Text Here

8. Data Gathering for Delay Analysis

Here you can mentioned about the data that will be required in order to perform the delay analysis; I have mentioned typical
data requirements as below however change according to your project;
• Project approved baseline schedule
• As built schedule, forecast and or updated schedule
• Project approved manpower deployment plan incl. histogram
• Project approved construction equipment deployment plan incl. histogram
• Project approved deliverables register (Engineering Drawings & Deliverables Registers)
• Project approved control registers for Procurements (Materials)
• Project approved control registers for Constructions incl. design quantities
• Project approved control registers for Pre-commissioning/Commissioning
• Project approved subcontractors and vendors registers
• Project records for design and material releases
• Project progress reports incl. daily/ weekly/ monthly incl. subcontractors and or vendors
• Project correspondences (between all parties)
• Project variations and changes requests
• Project trends log, site instructions, technical queries etc.
• Project non- conformance reports (NCR/CAR)
• Project Quality KPIs & Productivity Reports
• Project time-lapse photographs (if available)
• Minutes of meetings, emails, faxes and any other form of communications
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9. Delay Analysis Methodologies

There are numerous delay analysis methods that can be used to quantify delays that occurred during a project. The
appropriate selection of a delay analysis method is important to accurately quantify delays. Analysts must be aware of the
strengths and limitations of each method to determine which one is most suitable for the case at hand. Several factors must
be considered when selecting a delay analysis methodology including, but not limited to, contractual requirements, source
data availability, budget and time allowed for the analysis and size of the delay/dispute. The most common delay analysis
methods are as follows: (I have mentioned these only for your reference, but I will only explain Window Analysis as a
reference to this procedure).
• Impacted As-Planned
The impacted as-planned analysis involves the insertion of delay events into a baseline or as-planned schedule to determine
the hypothetical impact of such events. This method involves modifying the baseline or as-planned schedule to include new
activities and logic to represent delay events. The difference between the project completion date in the impacted as-planned
schedule and the original as-planned schedule quantifies the delay. This methodology is simple and does not require an as-
built schedule. However, it is considered a hypothetical model as it does not rely on as-built data.
• Collapsed As-Built
The collapsed as-built analysis is essentially the opposite of an impacted as-planned analysis. This method involves removing
delay events from the as-built schedule to determine when the project should have been completed ‘but for’ the delay events.
This methodology is easy to understand and does not require an as-planned schedule or contemporaneous schedule updates.
However, it can be manipulated with the insertion of after-the fact logic ties and delay events.
• As-Planned vs. As-Built
The as-planned vs. as-built analysis is a simple technique used to compare the baseline or as-planned schedule to the as-built
schedule or a schedule update reflecting progress. This method compares planned start and finish dates with the actual start
and finish dates of activities on the as-planned critical and near-critical paths. This identifies delayed starts, extended durations
and late finishes. This method is most effective on simple projects with short durations and one clear critical path that remains
consistent throughout the entire project. Its accuracy diminishes as the actual critical path deviates from the planned
schedule.
• Time Impact Analysis (TIA)
The time impact analysis (TIA) is a comprehensive technique used to analyze each delay event individually in chronological
order to calculate its impact. This methodology quantifies each delay based on the schedule immediately before and after the
delay event took place. The difference between the project completion date before and after the event determines the extent
of the delay. TIA does not require an as-built schedule and is typically easy and quick to perform. This technique is widely
accepted when used during the project to timely resolve delayed performance. However, it is considered a hypothetical model
as it does not rely on as-built data, and it can be overwhelming to perform if there are numerous delay events.
• Windows Analysis
The windows analysis is a retrospective technique that divides the total project duration into smaller periods and quantifies
the as-built critical path delays for each of these periods. This form of analysis compares the baseline or as-planned schedule’s
forecasted critical path to the as-built schedule, reflecting the as-built conditions for each selected period. This method
typically relies upon the schedules in their contemporaneous state of submission (“as-is”). The windows analysis is easy to
calculate and understand. It identifies delays as well as acceleration quantities and considers real-time conditions and actual
construction progress. However, the windows analysis is time consuming, requires complete project records and depends on a
reliable baseline or as-planned schedule and as-built performance information.

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10. Delay Analysis by Window Analysis/Time Impact

10.1 Overview
Delay analysis is performed by comparing the actual date with the plan/schedule date and considering duration of delay
events w.r.t. progress variance for all phases of project e.g. Engineering, Procurement & Construction etc. Delay is assessed
for the period of the project in which it has occurred. After comparing the results between actual and plan, the delayed
duration and the delay reasons will be identified, and a mitigation plan must be prepared to avoid the major impact on the
project completion. The results can be issued to client as a report, EOT requests and or as and when required basis.
10.2 Delay Analysis Steps
Steps and flow diagram for the delay analysis are explained below, we need to ensure that the following are available;
• Approved baseline schedule (validated schedule)
• Actual schedule updates performed (validate/compile as-built schedule)
• Critical and near critical paths has been identified
• Baseline and Actual Schedule comparison performed (early starts, early finish, total float and variance etc.)
• Identify the controlling chain of activities
• Calculations and judgment for delay relativity performed
• Verify the delays on the critical path and responsible party considering extended duration of delayed activities
and shortened durations for early finished.
• Identification, quantification & apportionment for each window period
• Your Text Here Your Text Here Your Text Here – Mention others
Delays can be categorized in two main areas:
10.3 Excusable Delay
Excusable Delays occurs due to events which are outside the control of contractor like heavy rains, storms, strikes, fire, client
suggested changes, differing site conditions, change of government policy… etc.
When there are excusable delays, contractor is entitled to time extension in case date of completion is extended. Such delays
can also affect non-critical activities which must be considered with more detailed analysis.
Excusable delays can be further classified in compensable and non-compensable delays.
• Excusable Compensable Delays
As name suggests excusable compensable delays are those in which contractor is entitled for extra payment (compensation)
i.e. monetary compensation and time extension as well. But decision that a delay is compensable or non-compensable is taken
as per contract between client and contractor. Natural disasters or some reasons which are out of control are not considered.
Example of such delay could be that client doesn’t allow access to site even after notice to proceed is given; other such delays
which are due to client are compensable.
• Excusable Non-compensable Delays
Such delays are such where both contractor and client are not responsible for delay. Under such circumstances only time
extensions are granted, and no monetary compensation is provided. Such delays include act of God.
10.4 Non-Excusable Delays
As name suggests these delays are such that they don’t have any excuse, or no excuse can be given for them. They arise due to
carelessness or actions and inactions of contractors and subcontractors. For such delays no time extensions and monetary
compensation is given to contractor if it has affected whole duration of project. In such cases client is liable to get liquidated
damages. Example of such delay could be constructing something wrong which is not given in drawings, not completing work
on time, improper resource allocation etc. Non excusable delay is one for which the contractor assumes the risk of delayed
performance and its consequences including impact upon others.

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10.5 Window Analysis/Time Impact Technique

This technique involves interim assessment of delay on updated schedules at specific periods of the project. This is like the
“snapshot technique” and “contemporaneous period analysis”. First, the total project duration is divided into a number time
periods (windows or snapshots) usually based on major changes in planning or major project milestones. The schedule within
each window is updated to reflect the actual duration and sequence at the time of the delay while the remaining as-planned
schedule beyond the window period is maintained. Analyses are performed to determine the critical path and new completion
date. This new completion date is compared with the as-planned completion date prior to this analysis to give the amount of
delay during that window period.
The windows analysis/time impact typically begins with the baseline construction schedule and proceeds chronologically from
update to update, tracking progress along the critical and near critical paths. For each analysis period, the prior update
becomes the baseline for the analysis of delays or accelerations. The windows method compares start dates, finish dates, and
duration of the activities and identifies changes to schedule logic between analysis periods. As such, implementation of the
windows schedule analysis depends on reliable baseline schedule information, contemporaneous schedule updates, and as-
built schedule information.
The following illustrations shows the effect of critical path delays occurring during different windows, or periods, of a project
schedule: We have a simple project with the planned schedule like this:

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1st MONTH: We have delay (21 days) on Excavation due to un-foreseen site condition

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2nd MONTH: We have no delay.

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Doc. No. xx-xx-xx-xx
XYZ PROJECT

3rd MONTH: We have 2 delays.

• Owner change house design (14 days)
• Subcontractor left job (21 days)
And those are concurrent delay, so 14 days charge to owner, and 7 day charge to contractor.

16 XYZ PROJECT Prepared by: Mujahid Akhtar

 DELAY ANALYSIS PROCEDURE
Doc. No. xx-xx-xx-xx
XYZ PROJECT

4th MONTH: We have 1 delay from Contractor in “Garage Walls” but it was not on the critical path. If the delay is within
available float there is no effect on the final completion date.

17 XYZ PROJECT Prepared by: Mujahid Akhtar

 DELAY ANALYSIS PROCEDURE
Doc. No. xx-xx-xx-xx
XYZ PROJECT

5th MONTH: We have 1 delay (28 days) from Owner in Garage Doors but it only affects 7 days in the critical path. Other 21
days were absorbed by available float.

18 XYZ PROJECT Prepared by: Mujahid Akhtar

 DELAY ANALYSIS PROCEDURE
Doc. No. xx-xx-xx-xx
XYZ PROJECT

LAST MONTH: We don’t have any delay.

So, we can have the Time Impact/Windows Analysis report like this:

19 XYZ PROJECT Prepared by: Mujahid Akhtar

 DELAY ANALYSIS PROCEDURE
Doc. No. xx-xx-xx-xx
XYZ PROJECT

RESULT:

• 28 days for time and cost impact.

• 14 days for time impact only.

It should be noted that there are several important considerations for choosing an appropriate schedule analysis methodology.
Each claim is unique and deals with different contract requirements, situational contexts, levels of documentation,
complexities, legal jurisdictions, and dispute resolution forums, among other factors. The selection of a delay analysis method
should be based on professional judgment and diligent factual research and evaluation.

20 XYZ PROJECT Prepared by: Mujahid Akhtar