§14.2 Scheduling

• Jurisdiction: Washington

§14.2 SCHEDULING

In construction, the process of managing the application of project resources—such as money labor, equipment, and materials—depends on developing an accurate plan that strives to bring together the necessary resources in a coordinated fashion to achieve the goal of completing the project on schedule and on budget. Time is one of the most crucial project resources to successfully manage, to avoid cost impacts and potential legal consequences. The legal consequences of failing to properly schedule a construction project and complete it on time are most often set forth in the terms of a written construction contract, as discussed throughout this chapter.

Although the concepts discussed in this chapter are discussed and viewed in terms of the owner/general contractor relationship, many concepts are equally applicable to subcontracts and subtier subcontracts, which often incorporate risks relating to the time for contract performance from the prime contract. Washington legal authority on matters of construction scheduling, delay, suspension of work, and acceleration is sparse, and thus in many instances, this chapter directs readers to non-Washington authority to illustrate its points.

(1) Important concepts

This section discusses the importance of planning and scheduling on construction projects, as well as the current standard for managing construction activity and the concept of "float" in scheduling projects.

(a) Importance of planning and scheduling

Scheduling is crucial on construction projects. The ultimate cost of project resources is time dependent, because construction, at least on complex projects where changes are common, rarely proceeds exactly as planned. Also, the amount of time required to complete a task can vary and might not have been predicted with precision at the time of issuance of the original project schedule, known as the "baseline schedule." Because labor crews are paid hourly wages and heavy equipment costs are time dependent, overruns in the time to complete a task due to scheduling and planning errors can mean the difference between a profitable proj ect and one beset with cost overruns

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and disputes. Extend this simple concept to a major project, with a complex activity network and a few dozen subcontractor trades and suppliers, and the importance of planning and scheduling is clear: all parties to a construction contract benefit from accurate and realistic schedules.

Additional benefits of planning and scheduling include the ability to

(1)	control the work flow beginning with submittals, procurement, installation, and execution of changed work and capturing the effect of changes on the schedule;
(2)	monitor the work, report progress, and adjust to issues affecting planned progress;
(3)	communicate the plan and updated plans to project stakeholders; and
(4)	evaluate progress and create a factual record of the project.

(b) Critical path method scheduling

Today's current standard for managing construction activities, discussed throughout this chapter, is critical path method (CPM) construction scheduling. First developed in the late 1950s, CPM or "network scheduling" is a method of planning and scheduling construction projects, whereby activities are arranged based on logical duration and sequence, which demonstrates which activities are on the "critical path" to project completion. The U.S. Court of Appeals for the 11th Circuit described CPM as follows:

CPM is a standard construction device used to plan the activities of a construction project in a logical, orderly sequencing manner citing durations for the different activities from the beginning of the job to the end. A CPM is created by dividing the entire project into discrete and quantifiable steps; in turn, each step is allotted an estimated time for completion. Ultimately, each step is arranged into a chronological sequence, thus revealing the anticipated length and structure of the entire construction schedule. In addition to serving as a road map for the contractors to determine when and where their work fits into the overall construction sequence, the CPM also assists contractors in assessing their hiring and material purchasing needs.

Roberts & Schaefer Co. v. Hardaway Co., 152 F.3d 1283, 1287 (11th Cir. 1998); see also In re Elect. Mach. Enter, Inc., 416 B.R. 801, 821 (Bankr. M.D. Fla. 2009) ("The standard practice in the construction industry

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for the scheduling and coordination of the work of trade contractors is called the critical path method of construction management, or CPM."), order aff'd in part, 474 B.R. 778 (M.D. Fla. 2012).

The "critical path" identified by the CPM schedule can be described as the sequence of activities, events, and dependencies that determine the "longest path through a project and thus defines the total duration of the project." Ace Constructors, Inc. v. United States, 70 Fed. Cl. 253, 294, fn. 46 (2006), aff'd, 499 F.3d 1357 (Fed. Cir. 2007). A succinct definition of critical path activities are '"those activities which if allowed to grow will impact the completion date of the project.'" Allstate Interiors & Exteriors, Inc. v. Stonestreet Constr., LLC, 907 F. Supp. 2d 216, 238 (D.R.I. 2012), aff'd, 730 F.3d 67 (1st Cir. 2013) (quoting Weaver-Bailey Contractors, Inc. v. United States, 19 Cl. Ct. 474, 480 (1990)). Stated differently, any delay of an activity on the critical path directly impacts the planned project completion date—there is no leeway (or "float") on the critical path. The concept of float is discussed more fully in §14.2(1)(c), below.

Over the last 60 years, CPM has become the standard methodology used in the construction industry to develop project schedules and track progress on those projects. Although the above terms are generally accepted industry definitions, note that definitions for scheduling terms are often set forth within specific contracts and, therefore, can vary from project to project.

(c) Concept of float

"Float" has traditionally been defined as the amount of time an activity can be delayed without affecting the project's completion date. See 5 Philip L. Bruner & Patrick J. O'Connor, Bruner & O'Connor on Construction Law §15:9 (2002 & Supp. 2017) (hereinafter Bruner & O'Connor). When an activity has float, it is not on the project's critical path. Id. The concept of float has been refined in more recent times to distinguish between (1) the amount of time that an activity's start date can be delayed without affecting the early start of successor activities, called "free float"; and (2) the measure of leeway an activity has in starting or completing without affecting the planned completion date for the overall project, called "total float." Id.

Float or total float can be determined by reviewing the difference between the activity's calculated early and late start date or its early and late finish date on the CPM schedule. See Appeal of Blake Constr. Co., ASBCA No. 35045, 88-3 B.C.A (CCH) ¶21,145 (Aug. 18, 1988). Provided that no activities have negative float, an activity with zero

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float that also occupies the longest...