22 Project Scheduling

update. The reviewer’s goal should be to always have a current version of the
Project schedule that provides an accurate representation of the Contractor’s
current plan to complete the Project. Such updates provide a reliable manage-
ment tool that can be used to forecast, predict, identify, and resolve problems
as they arise.

EARLY COMPLETION SCHEDULES

Most construction contracts specify the maximum time allowed for the
Contractor to perform the work. Few, if any, contracts specify a minimum dura-
tion. However, a Contractor has both the right and the financial incentive to fin-
ish a Project early, if possible. Thus, it is important for Owners and Contractors
alike to deal with early completion schedules fairly and effectively.
If early Project completion is intended by the Contractor, the early finish
date should be shown on the official Project schedule, and multiple schedules
should always be avoided. For the reasons discussed following, Owners and
Contractors are sometimes resistant to these practices. Owners typically take
issue with early completion schedules because some Contractors will claim for
damages if they believe the Owner prevented them from finishing early. It is
true that in some cases the Owner may be liable for damages associated with the
delay, but this is actually a good argument for always showing the early finish,
if intended, on the Project schedule.
The Contractor also benefits from these practices because, typically, it is
extremely difficult for a Contractor to convince an Owner or the courts that he
planned to finish early when the schedule did not reflect this plan. Nevertheless,
some Contractors choose to create an early completion schedule for them-
selves and their Subcontractors, but give the Owner a schedule reflecting the
full Contract duration. The rationale is that if the Contractor or a Subcontractor
falls behind schedule, he will not suffer any consequences. This position does
not make sense as explained below.
Assume that a Contract’s duration is 300 calendar days but that the
Contractor plans to complete the work in 200 calendar days. If a Liquidated
Damages clause is included in the Contract, the damages will not become
effective until day 301. Therefore, even if the Contractor exceeds the 200-day
duration through its own actions, it faces no greater exposure to damages from
the Owner.
Using two different schedules is counterproductive and can cause more prob-
lems. For example, how does a General Contractor respond to a Subcontractor
who has been given the 200-day schedule but sees the 300-day schedule posted
in the Owner’s trailer? Also, if a dispute arises over delays, the Contractor
could lose credibility when attempting to explain why there were two sched-
ules and which schedule was the “real” one. He may have to answer questions
from an attorney such as “Were you lying when you drafted the 300-day sched-
ule or when you drafted the 200-day schedule?” Obviously, this is a no-win
question for the Contractor.