The successful execution of a construction program in terms of meeting time and cost objectives has always been dependent on effective planning. The increasing complexity and cost of today's construction programs highlight the importance of careful management of the entire construction process from project inception to closeout. In order to accomplish these objectives, it is paramount that the parties have an appreciation and understanding of the importance of a detailed project schedule and how it is effectively developed and implemented.

The balance of this article will discuss the effective use of baseline schedules, schedule approvals, schedule updates and schedule revisions as a management tool to optimize project performance.

Baseline Schedules

The principal function of a project baseline schedule is to set forth the plan for constructing the project within the amount of time and price agreed to in the contract. The project baseline schedule forecasts the amount of time necessary to complete a given task or job, and provides all parties with a tool to measure actual vs. planned performance, deal with problems and changes that arise, and minimize claims. The project baseline schedule also provides a basis for communicating a plan in order to make sound decisions which are consistent with the ultimate time and cost objectives and requirements. In theory, the initial contract schedule is a true baseline schedule since it reflects the contractor's planned performance time as it relates to costs.

The purpose of a project baseline schedule is to:

• Assure adequate planning, scheduling, and reporting during execution of the work by the contractor.
• Assure coordination of the work of the contractor and the various subcontractors, vendors, suppliers, and all other parties associated with the construction of the project.
• Assist the owner and contractor in monitoring the progress of the work and evaluating proposed changes to the Contract.
• Minimize claims.

The project schedule should consist of, but not be limited to, the following:

Procurement Activities: The proposed procurement activities should include the submittal and approval of shop drawings, product data, and samples as well as the fabrication and delivery of all major equipment and materials. Particular emphasis should be given to equipment or material that will require significant lead-time to procure.

Construction Activities: Should include activities representing all necessary permits, inspections, final testing of the work, milestones, etc.

Based upon the complexity of a project, it may take a significant period of time beyond the Notice to Proceed to develop an acceptable detailed project schedule. In these cases, it is recommended that the contractor be required to prepare a "Preliminary Project Schedule" initially. A typical provision contained within the contract scheduling specifications requiring such a schedule is:

Preliminary Project Schedule:  Within fifteen (15) calendar days after award of the Contract, the Contractor shall submit for the Owner's review and comment a preliminary project schedule. The Preliminary Project Schedule shall contain a detailed schedule for the first ninety (90) calendar days of construction following notice to proceed with the work and a "summarized" schedule for the balance of the remaining work in the contract. The summarized portion of the schedule for the balance of the work shall show the remaining activities of work in sufficient detail to demonstrate that the Contractor has a reasonable and workable plan to complete the project within the contractually required time frame.

Following the establishment of a preliminary project schedule, the contractor should continue with the development of the remaining portions of the schedule in preparation for its submittal of the detailed project schedule for the entire project:

Detailed Project Schedule:  Within thirty (30) calendar days after the owner's acceptance of the contractor's Preliminary Project Schedule, the Contractor shall submit for the Owner's review and comment a Detailed Project Schedule for the entire project. The Detailed Project Schedule shall incorporate the first ninety (90) calendar days of work as detailed in the accepted Preliminary Project Schedule.

Following its acceptance, the detailed project schedule should be maintained and updated by the contractor throughout the duration of the contract, coordinating and integrating the responsibilities of the owner, architect, any governmental agencies, utilities, subcontractors, and all other parties associated with the construction of the project and any other adjacent projects. The project schedule must clearly indicate the sequence and interdependence of activities required for complete performance of the work. All work sequences should be logical and indicate a coordinated plan for accomplishing the work.

Schedule Approval

The scheduling specification should address the steps and the accompanying time periods required for the development and approval of the project schedule. The approval process should be clearly defined and segregated into reasonable time frames so that both the owner and contractor can review the information and resolve any conflicts.

The scheduling specification should also address whether the owner is to formally approve the contractor's project schedule or if the project schedule is to be submitted for "information purposes only."  If the owner wishes to maintain some control over the project schedule, however, it is suggested that it utilize a formal review and approval process, one that is clearly defined in the scheduling specification. If that is the case, unless the owner has resources internally to review the proposed schedule, the owner should hire a knowledgeable scheduling consultant to evaluate the contractor’s proposed schedule before approving the schedule. The importance of establishing an acceptable and/or approved project schedule is paramount since these schedules are more and more becoming a tool to be utilized in the assertion or defense of claims on a project.

Schedule Updates

It is recommended that the project schedule be updated on a regular basis (at least once monthly) throughout the entire contract time until final acceptance of the project. As part of the update process, the contractor should meet with the owner and/or the owner's representative prior to submission of the update to review actual progress made through the data date (update date), including dates that activities started and/or completed, the percentage of work completed, and the remaining duration of each activity started but not yet completed as of the data date. In addition, the meeting should address the contractor's current allocation of manpower and major equipment as well as the current status regarding procurement of materials. At the conclusion of the schedule update meeting, the contractor should then update the current project schedule to reflect the agreed-upon progress to date and submit same to the owner for review and approval.

Schedule Revisions (The Next Plan)

Sometimes during the performance of the work as a result of a variety of reasons including unforeseen conditions, change orders, resource restrictions, or simply less than anticipated progress by the contractor, the project schedule no longer reflects the actual prosecution and progress of the work. When this occurs, it is necessary that the project schedule be revised.

If a revision of the project schedule is contemplated, the owner or contractor should advise the other party in writing, describing the contemplated revision and setting forth the reason thereof. As was the case with the establishment of a baseline schedule, the required procedures involving the performance of a revision to the project schedule should be addressed in the scheduling specification. 

Conclusion

Effective use, and even preconstruction understanding of, baseline schedules, schedule approvals, schedule updates and schedule revisions should not only be contract requirements but should also be an effective management tool. Even more importantly, perhaps, it can be a good way to increase the mutual understanding and interest of the parties as to how the project will be executed and successfully completed. Finally, the parties should follow these contract requirements and attempt to resolve scheduling issues sooner rather than later in order to minimize or avoid claims.