Control

Project Planning, Scheduling, and
Control
Dr. Saleh Mubarak
Part 3
Part VIII:
Time/Cost Trade-off
Project Acceleration: An
Added Cost or Cost
Savings?
Schedule Acceleration is
shortening the duration of
the project schedule
without reducing the
project scope, till reaching Scope
the desired duration or the
crash duration, whichever
comes first
Constr. Project Sched. & Control - Dr. Mubarak - Part 3 Slide No. 2
Project Schedule Acceleration
Schedule acceleration usually –but not always- increases
project cost and often has physical and practical limitation to
how much it can be shortened
Synonymous terms: Schedule compression, schedule

acceleration, and time-cost tradeoff, schedule shortening
Schedule acceleration may be:
 Planned before construction starts (accelerated schedule), or
 Decided in the middle of the project (recovery schedule)
Why Do Owners Demand
Schedule Acceleration?
1. To make sure contractor’s finish date meets
their deadline
2. To respond to market demand / maximize
profit
3. For the convenience of the public
4. To suit their cash flow (decelerate?)
5. Simply to reduce cost
Why Do Contractors Accelerate
Schedules?
1. To meet owner’s (contract’s) stipulated date
2. To avoid penalties (liquidated damages) and/or
get early finish bonus
3. To start other projects

4. Simply to reduce cost / increase profit
Time/Cost Trade-offs: The
Northridge Earthquake Case
The Northridge Quake: On January 17, 1994, a quake of 6.7
magnitude caused heavy damage and high casualties in
Northridge, California. The immediate major concern for
Caltrans (the California Department of Transportation) was
reopening the public highways, in one of the nation’s busiest
areas. Part of the damaged highways was two sections of the
Interstate 10 in Santa Monica.
C. C. Myers Inc. of Rancho Cordova, CA, was awarded the
contract to repair those sections. C. C. Myers' bid of $14.7
million was significantly below the Caltrans $22.3 million
engineer's estimate. The contract gave the contractor 140 days
to finish the project.
The Northridge Earthquake Case
(continued)
There was a liquidated damages clause of $200,000 for each
day of delay and a similar bonus amount for each day of early
finish.
The contractor was able to finish the project in 66 days only; 74
days ahead of the stipulated deadline.
The project was fast-tracked. In addition, C. C. Myers worked
around the clock; putting large amount of resources in the
project, making this project the focus of the company. What
also helped was the cooperation between Caltrans and the
contractor. Caltrans did its part to help push the project;
assigning 10 engineers on the day shift and four on call at night
to inspect work and answer questions.
The Northridge Earthquake Case
(continued)
C. C. Myers may have gone, in the process of expediting the
schedule, over their original budget but with about $14.8 million
bonus they were certainly ahead of the game. Despite the large
paid bonus, Caltrans seemed to be pleased with the results. The
convenience of the public was well worth the effort and the
money. Caltrans and C. C. Myers both believe that despite the
schedule compression, there was no compromise on work
quality.
More on Project Acceleration
 More case studies:
 The tomb of the late Turkish president
 The royal palaces in Makkah
 The Olympic games (1976, 1996, 2008)
 The project’s top priority: money or time?

 How important is meeting the project’s target finish date?
 Is acceleration really needed? How much acceleration?
 Is the extra cost justified?
Methods for Accelerating Work in a
Project
1. Invest more time and 7. Work overtime, more
money on planning workers and equipment,
2. Contractual adjustments / more shifts
incentives 8. Acquire special materials,
3. Revisit the schedule equipment, and
technologies
4. Fast-track the project 9. Offer incentives: individual,
5. Value engineering and crews, entire team
constructability studies 10. Improve project
6. Improve communications management
Techniques for Schedule
Compression
The Construction I. Ideas applicable to all
phases of a project
Industry Institute
Engineering phase
suggested more than 90 II.
Contractual approach
techniques for schedule III.
IV. Scheduling
compression. It further
V. Materials management
classified them by
VI. Construction work
project phase or
management
function:
VII. Field labor management
VIII. Start-up phase
Concept of Schedule Acceleration
1. Shorten the longest (critical) path. Start with the easiest/least
expensive activity to be shorten
2. At a certain point, the critical path will tie with the next critical
path. Shorten both paths: either select a common activity
(shared by both paths) or shorten two activities; one on each
path
3. At further point, the two critical paths will tie with the next
critical path. Shorten all three+ paths, and so on
4. Stop when you achieve desired duration or when the project is

completely crashed
Schedule Compression: Multiple
Paths - 1
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Paths - 2
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Paths - 3
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Paths - 4
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Paths - 5
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Effect of Project Acceleration on Cost
Direct cost: increases at an increasing rate
Indirect cost (overhead): decreases linearly
Total cost: watch the curve go down and up
Cost Changing with Schedule
Acceleration
Schedule compression Schedule compression
Direct Cost Indirect Cost
Schedule compression
Total Cost
Why Does Acceleration Increase
Direct Cost
1. We start with the least expensive activity to crash. As
we crash more, our options narrow down and get more
and more expensive
2. When we start, accelerating one activity by one day
usually results in the shortening the project duration by
one day too. As we progress and critical paths tie, we
will need to crash several activities; each by one day in
order to shorten the project duration by one day
Time/Cost Trade-offs - Example
- Act IPA Duration Cost $
Norm Crash Norm Crash

A - 5 4 500 600
B A 7 5 350 500
C A 8 5 800 920
D A 11 7 1200 1400
E B,C 6 4 600 700
F C 4 4 500 500
G D,F 7 5 700 1000
H E,F 6 5 300 420
Example Solution: The Network
5, 12
- B 13, 19 19, 25
7
E H
6, 13 6 6
13, 19 19, 25
25
0, 5 5, 13
A C PF
5 8
0, 5 5, 13 13, 17 17, 24 25
F G
4 7
14, 18 18, 25
5, 16
D
11
7, 18
Example Solution:
The Paths, before crashing
Path Duration
ABEH 24
ACEH 25
ACFH 23
ACFG 24
ADG 23
Example Solution:
The Paths: Crashing cycle #1
Path Duration
ABEH 24 24
ACEH 25 24
ACFH 23 22
ACFG 24 23
ADG 23 23
Example Solution:
Path Duration
ABEH 24 24 23
ACEH 25 24 23
ACFH 23 22 22
ACFG 24 23 23
ADG 23 23 23
Example Solution:
Path Duration
ABEH 24 24 23 22
ACEH 25 24 23 22
ACFH 23 22 22 21
ACFG 24 23 23 22
ADG 23 23 23 22
Example Solution:
Path Duration
ABEH 24 24 23 22 21
ACEH 25 24 23 22 20
ACFH 23 22 22 21 20
ACFG 24 23 23 22 21
ADG 23 23 23 22 21
Example Solution:
Path Duration
ABEH 24 24 23 22 21 20
ACEH 25 24 23 22 20 19
ACFH 23 22 22 21 20 19
ACFG 24 23 23 22 21 20
ADG 23 23 23 22 21 20
Example Solution:
Path Duration
ABEH 24 24 23 22 21 20 19
ACEH 25 24 23 22 20 19 19
ACFH 23 22 22 21 20 19 19
ACFG 24 23 23 22 21 20 19
ADG 23 23 23 22 21 20 19
Example Solution:
Path Duration
ABEH 24 24 23 22 21 20 19 18
ACEH 25 24 23 22 20 19 19 18
ACFH 23 22 22 21 20 19 19 18
ACFG 24 23 23 22 21 20 19 18
ADG 23 23 23 22 21 20 19 18
Linear Project Crashing Overhead per day = $120
Activity Duration Cost Duration Cost Crash Cost

Normal Crash Normal Crash Difference Difference per Day Days Shortened
A 5 4 $500 $600 1 $100 $100 1
B 7 5 $350 $500 2 $150 $75 1 1
C 8 5 $800 $920 3 $120 $40 1 1 1
D 11 7 $1,200 $1,400 4 $200 $50 1 1
E 6 4 $600 $700 2 $100 $50 1 1
F 4 4 $500 $500 0 $0
G 7 5 $700 $1,000 2 $300 $150 1 1
H 6 5 $300 $420 1 $120 $120 1
Days Cut 0 1 1 1 1 1 1 1
Project Duration 25 24 23 22 21 20 19 18
Increased cost $0 $40 $50 $100 $140 $165 $225 $270
Direct Cost $4,950 $4,990 $5,040 $5,140 $5,280 $5,445 $5,670 $5,940
Overhead Cost $3,000 $2,880 $2,760 $2,640 $2,520 $2,400 $2,280 $2,160
Total Cost $7,950 $7,870 $7,800 $7,780 $7,800 $7,845 $7,950 $8,100
Least Cost Least Time
Schedule Compression Using
Computers
1. There is no fully automated process
2. Start with the normal duration with normal

cost, producing the normal finish date
3. When “imposed finish date” is entered,

negative float will appear:
 Which path is the critical one?
 Compression by how many days?
Computers (Cont’d.)
4. Start shortening the critical path by picking the
activity with least cost per day
5. Compress by one day at a time or x days in
one step?
6. Keep going (as in the example) till reaching the
target
o What if you compress the critical path but the project
duration remains as is?
Computers
1. Create a spreadsheet displaying all activities; their
normal and crash duration along with their normal
and crash cost.
2. Do a regular CPM schedule and determine the
critical path.
3. Make a backup copy of the schedule.
4. Enter the imposed finish date and schedule the
project. You’ll notice the appearance of negative
float. The critical path is the one with the most
negative float.
Computers-2
5. You may want to print a logic diagram filtering out
activities with high float (TF > 10).
6. Start shortening the critical path by picking the
activity with least cost per day. Reduce the
duration by one day. Note the effect on the critical
path:
 All activities with the max negative float (in absolute
value) have their float reduced by one. Move to step 7.
 Some activities maintained their max negative float. You
may have to crash another activity instead (or in
addition).
Computers-3
7. Record new durations and cost in the spreadsheet
of step 1.
8. You can crash the schedule by more than one, say
x days. Your project’s decrease in duration is y:
0<y≤x
8. The more you crash, the more difficult and more
expensive it becomes to crash.
9. Stop when you achieve your goal:
 Minimum cost, or
 Minimum (or certain) duration.
Project Acceleration: Final Thoughts
Project Acceleration should be based on scientific

and systematic principles
 It is not random dumping of extra resources on the
site
 It is not a race to set records
It should be done only to the extent needed

You cannot accelerate all your projects; prioritize
them
Project Acceleration: Final Thoughts
(Cont’d.)
There are physical and practical limitations to project
acceleration
Unplanned or unorganized acceleration may result in

 Delays
 Higher cost
 Quality problems – rework
 More variation orders and claims
 Chaos – safety issues
Project Acceleration: Final
Thoughts (Cont’d.)
Not all subcontractors / crews or activities need to be
involved in the acceleration
Project contractor’s acceleration without owner’s

approval may lead to problems
Owner’s target finish date may be revised during

construction but other parties have to be informed
Optimum Scheduling
Optimum scheduling is selecting the project's
starting point and the composition of the
durations and timing of its activities that will
result in optimum schedule and least cost while
maintaining the project's scope and quality
Project scheduling in areas with extreme weather
Quiz 10-1
True or False:
1. It is always a good idea to accelerate projects
2. Project acceleration always cost more money
3. It is possible that a contractor accelerates a project even
though the owner does not require him to do so
4. When economy is slumping, the contractor is more likely
to accelerate the project
5. Fast-tracking a project saves time and money
6. Recovery schedule is a schedule aims at recovering time
lost earlier in the schedule
Quiz 10 - 2
1. In the general case when we start C. 226 or 228 days, depending on
accelerating projects: whether the shortened activities are
on the 2nd longest path.
A. Direct cost increases while indirect cost
decreases. D. 231 days.
B. Direct cost decreases while indirect cost 3. As we accelerate, the direct cost:
increases. A. Increases at an increasing rate.
C. Both direct and indirect costs increase. B. Increases at a decreasing rate.
D. Both direct and indirect costs decrease. C. Increases at a steady rate.
2. If the critical path in a project is 232 D. Decreases at a steady rate.
days long. The next longest path is 4. As we accelerate, the indirect cost:
228 days. We cut the critical path by 6 A. Increases at an increasing rate.
days. The project duration now is: B. Increases at a decreasing rate.
A. 226 days. C. Increases at a steady rate.
B. 228 days. D. Decreases at a steady rate.
Part IX: Other Scheduling
Methods
Program Evaluation and Review Technique
Linear Scheduling Method, LSM
Program Evaluation and Review
Technique, PERT
Program Evaluation and Review Technique
(PERT): An event-oriented network analysis
technique used to estimate project duration
when there is a high degree of uncertainty
with individual activity duration estimates.
 PERT applies the Critical Path Method to a
weighted average duration estimate
 PERT is considered a probabilistic or stochastic
method
PERT Calculations
In PERT, for each activity, three durations must be
estimated:
To: Optimistic Duration
Tm: Most Likely Duration
TP: Pessimistic Duration
the Expected Time
The standard deviation
The variance Ve = e2
PERT Calculations - 2
 For each path:
 Example (handout)
Constr. Project Sched. & Control -

Dr. Mubarak - Part 3 Slide No. 46
PERT: General Comments
 PERT focuses on a single path.
 Some software packages calculate the probability that a
project will finish within a certain date, taking in
consideration several paths using simulation because it is
hard to find the correlation among activities
 Stochastic (probabilistic)
 Good for experimental type projects
 The process of having three durations for each
activity is also called “3-point estimates”
PERT: General Comments
 Software used for calculating risk and probabilities
based on PERT calculations:
 Oracle Risk (Primavera Risk, Pertmasters)
 Risk+ (ProjectGear, Inc., Tacoma, WA)
 @Risk (Palisade Corp., Newfield, NY)
 Almost never used in the construction industry
Linear Scheduling Method, LSM
Linear Scheduling Method (LSM):

 Good for projects with few activities (usually with
large quantities) that have to be done in the same
order or sequence. For example, heavy
construction projects such as roads, earthwork, or
utility piping.
 Rarely used in the vertical construction industry
but trying to make a comeback.
 Also called Line-of-Balance (LOB) method.
LSM Concept
LSM Concept
A successor must not get ahead of the
predecessor.
LSM Concept
The successor must slow down or get done
intermittently.
LSM Concept
Simultaneous finish:
LSM Example
A project consists of five activities:
A. Excavating a trench, Duration = 1000/100 = 10 days
B. Laying a sub-base of gravel, Duration = 1000/125 = 8 days
C. Laying the concrete pipe, Duration = 1000/75 ≈ 14 days
D. Backfilling, and Duration = 1000/200 = 5 days
E. Compacting. Duration = 1000/150 ≈ 7 days
Length of the pipe is 1,000’

Productivity of the five activities 100, 125, 75, 200,
and 150 LF/Day; respectively
Leave a minimum one-day Time Buffer
LSM Example
LSM Example: Interruptible Activities
Time buffer
violations?
The Pipe Example in PDM
1 1 1 1
0, 10 3, 11 4, 18 14, 19 15, 22
A B C D E
10 8 14 5 7
0, 10 3, 11 4, 18 14, 19 15, 22
1 1 1 1
Excavating
Sub-base
Lay Concrete
Backfill
Compact
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
LSM Example: Interruptible Activities
1 1 1 1
0, 10 1, 11 2, 16 3, 17 4, 18
A B C D E
10 8 14 5 7
0, 14 1, 15 2, 16 10, 17 11, 18
1 1 1 1
Excavating
Sub-base
Lay Concrete
Backfill
Compact
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Quiz 11
True or False: 4. PERT requires the knowledge
of the distribution each activity
1. Regular CPM requires one
5. It is possible that the path
duration for an activity while
PERT requires a range of dates calculated by regular CPM as
the critical path, not be the
2. The “most likely” duration and
most critical path according to
the “expected” duration are
PERT
the same
6. In LSM, if the second activity
3. Higher standard deviation
has higher production rate than
means higher uncertainty in
the first one, then we apply the
the duration (of an activity or a
distance (or time) buffer to the
continuous path of activities)
end of the activities
Part X: Delay Claims
Avoidance and Resolution
 Delay Claims
 Reasons for Claims
 Types of delay claims
 Delay Claims Prevention
 Delay Claim Resolution
Types of Claims
A delay claim can be for:
 Extension of time,
 Monetary compensation,
 Extension of time and monetary compensation
Reasons for Claims
1. Differing Site Conditions
2. Design Errors or Omissions
3. Changes in Owner’s Requirements
4. Unusually Adverse Weather
5. Other Factors that may not be the claimant’s
fault
Force Majeure
The term “force majeure” (also written as
“force majure”) came around 1883 from a
French origin that means “superior force”.
It is a better alternate of the term “Act of
God”
Force Majeure
In the context of construction projects, this
term generally combines three important
elements:
1. Superior, overwhelming, or overpowering, i.e.
cannot be prevented,
2. Unexpected or cannot reasonably be anticipated
or controlled, and
3. Has a destructive or disruptive effect on the
construction process.
Types of Delay Claims from
Scheduling Point of View
1. Excusable delay: This is a delay that entitles
the contractor to additional time for
completing the contract work. Excusable
delays usually stem from reasons beyond
the contractor’s control
Excusable delays are further classified into:
 Non-compensable delays: Delays beyond the control, nor
the fault, of the owner such as unusual weather conditions,
natural disasters (earthquakes, floods, hurricanes, etc.),
wars or national crises, or labor strikes. These types of
delays will most likely entitle the contractor to a time
extension but not monetary compensation.
 Compensable delays: Delays caused by the owner or the
designer (architect/engineer.) These types of delay typically
allow the contractor to recover the costs and time
associated with the delay.
2. Non-excusable delay: Any delay that is either caused
by the contractor or not caused by the contractor
but should have been anticipated by the contractor
under normal conditions
 Examples: Slow mobilization, poor workmanship, labor
strikes due to unfair labor practices, accidents in the project
site caused by the contractor’s negligence or lack of
preparation, late delivery of contractor’s furnished materials
and equipment, contractor’s cash-flow problems, adverse
weather conditions that are expected for that location during
that time of the year, or lack of skilled labor.
3. Concurrent delay: A combination of two or more
independent causes of delay during the same time
period are generally held to be concurrent delays.
In reality, almost all of the delay claims are

concurrent,
Why?
Delay Claims Prevention: Frequent
Scheduling Mistakes
1. Baseline schedules that 6. Schedules with logic
don’t show logic errors
2. Baseline schedule with 7. Skipping periodic
dates rather than logic updates
3. Overuse of constraints 8. Lack of proper
4. “Erasing footprints” documentation
5. Unrealistic baseline 9. Lack of reasonable time
schedules contingency
10.No resources leveling or
proper management
Delay Claims Prevention:
Documentation!
Project information to be documented
(other items may have to be included, too):
1. Project baseline schedule that was accepted by
the owner: electronic and printed copies
2. Periodic updates for the schedule
3. Change orders: including administrative and
technical correspondence
4. Project manager’s daily log
5. Job diary
Project information to be
documented - continued
6. Submittals along with their records
7. Record of any transmittals such as requests for
information (RFI), requests for clarification (RFC),
test lab results, warranties and certificates, etc.
8. Correspondence with the owner, architect/
engineer, subcontractors, vendors and suppliers, or
other contracting parties
9. Correspondence with the home office
10. Meeting minutes
Project information to be
documented - continued
11. Procurement records (materials and equipment
orders and delivery tickets, equipment maintenance
records, quotations, receipts, etc.)
12. Government records such as permits, code non-
conformance reports, and OSHA forms/citations
13. Record of payments and lien waivers
14. Pictures / video clips
15. E-mails and electronic data in its native format (e.g.
schedules, submittals, databases)
Delay Claim Resolution
1. Negotiation
2. Mediation
3. Disputes Review Boards (DRB)
4. Arbitration
5. Litigation
Quiz 12 - 1
True or false?
1. Any party can initiate a claim but usually it is the contractor who
initiates claims against the owner
2. A concurrent delay is usually caused by the owner
3. One of the most important documents to keep in the project’s
records is the baseline schedule
4. As-built schedule shows the intent of the contractor on how he
planned to build the project
5. In most –but not all- cases, the as-planned schedule and baseline
schedule are the same
6. An owner adds work in an activity that increased the duration from
5 to 8 days. If this activity had 7 days of total float, then the
contractor is not entitled to any time extension
Quiz 12 - 2
1. While excavating, the 2. Which one of these in not
Contractor hits a rock layer. classified as force majeure:
Since the plans and soil A. Hurricane
report did not mention such B. Flood
rock, the contractor files a C. Unusually hot weather
claim under: D. Earthquake
A. Force majeure 3. A form of dispute resolution

B. Differing site conditions starts before disputes arise:
C. Design errors/omissions A. Mediation
D. Changes in owner’s B. Arbitration
requirements C. Negotiation
D. Dispute review boards
Quiz 12 - 3
4. The simplest form of 6. Who owns the float in a
dispute resolution is: construction schedule?
A. Mediation A. The owner unless the
B. Arbitration contractor demands it in
C. Negotiation the contract
D. Litigation B. The contractor unless the
owner demands it in the
5. A form of dispute resolution contract
that is not voluntary to the C. The contractor, always
disputing partied: D. The owner, always
A. Mediation
B. Arbitration
C. Negotiation
D. Litigation

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Project Planning, Scheduling, and

Dr. Saleh Mubarak

Synonymous terms: Schedule compression, schedule

3. To start other projects

 The project’s top priority: money or time?

4. Stop when you achieve desired duration or when the project is

Direct cost: increases at an increasing rate

Indirect cost (overhead): decreases linearly

Total cost: watch the curve go down and up

Schedule compression Schedule compression

Direct Cost Indirect Cost

Norm Crash Norm Crash

Activity Duration Cost Duration Cost Crash Cost

2. Start with the normal duration with normal

3. When “imposed finish date” is entered,

 Compression by how many days?

Project Acceleration should be based on scientific

It should be done only to the extent needed

Unplanned or unorganized acceleration may result in

 Quality problems – rework

 More variation orders and claims

 Chaos – safety issues

Project contractor’s acceleration without owner’s

Owner’s target finish date may be revised during

Project scheduling in areas with extreme weather

the Expected Time

The standard deviation

The variance Ve = e2

Constr. Project Sched. & Control -

 Almost never used in the construction industry

Linear Scheduling Method (LSM):

B. Laying a sub-base of gravel, Duration = 1000/125 = 8 days

C. Laying the concrete pipe, Duration = 1000/75 ≈ 14 days

D. Backfilling, and Duration = 1000/200 = 5 days

E. Compacting. Duration = 1000/150 ≈ 7 days

Length of the pipe is 1,000’

In reality, almost all of the delay claims are

A. Force majeure 3. A form of dispute resolution

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