Chapter 27 - § 27.1 • GENERAL PRINCIPLES

• Jurisdiction: Colorado

§ 27.1 • GENERAL PRINCIPLES

§ 27.1.1-The Role of Scheduling in the Construction Process

The success or failure of a construction project depends largely upon the construction schedule. Delays in the construction schedule can drive up the contractor's costs associated with paying an idle workforce or paying its workforce for an extended period of time; extended equipment charges; unabsorbed home office overhead; possible increases in wages, materials, or equipment rental during the extended duration; or increases in General Conditions costs for the additional time on the project, including the additional expenses for office trailers, project office equipment, and additional supervision expenses, just to name a few. Also, delays can burden the owner with additional costs due to his or her inability to use or occupy the building or project as expected. For example, a delay in the construction of a hotel project can cause the opening of the hotel to be delayed beyond peak season, causing the owner to lose revenue. Therefore, it is axiomatic that construction delays are one of the primary sources of disputes, claims, and litigation in the construction industry.

The schedule is also critical to the success of a project because it lays out the stages of construction. The schedule identifies which subcontractors will be on the project at any given time, when materials will be needed for the project, and the sequencing of the work, among other things. On a critical path schedule, each project task is related to those that must complete prior to the task at hand, and to those upon which completion of the task is dependent. If a project delay causes a change in the critical path, a host of problems may occur that may cause additional costs; for example, subcontractor work sequences may be disrupted, trades who would have been on the job sequentially may be required to work simultaneously (or "stacked"), and acceleration may be required.

In recognition of the pivotal role the schedule plays in a construction project, contract terms relating to time, schedule, and delays are woven throughout construction contracts. Typical construction contracts will address delay issues in standard clauses, such as the "changes" clause and the "termination" or "default" clauses. If the construction contract does not address these issues, then the common law will govern the dispute.

§ 27.1.2-Scheduling Methods

Several types of scheduling methods are available for use on a construction...