Construction Project Behind Schedule? 4 Steps to Take 

When a construction project is behind schedule, contractors must determine the right steps to get it back on track to mitigate financial risks. There are four key steps your team can take to manage a construction schedule delay and help your new plan progress smoothly.  

Step 1: Determine the Plan 

Before you can assess the current status of your project, you must understand what you’re comparing it to. Reviewing your project documentation is a critical first step.

Schedule documents are created early in the planning stages of the project. These documents should describe: 

• Expected plan and timeline 
• Completion milestones 
• General sequence of work 

With this information, you can evaluate the actual steps your team has taken and where they differ from the original plan. The primary goal of this comparison is to determine how major the changes are and the impact of these changes. 

Questions you should ask yourself in this comparison are: 

• What extra costs will we incur? 
• How much time will we need to add to the project? 
• Can we benefit from extra staffing? 
• Do we need additional materials? 

A review of your project documentation may reveal that the delay is not accepted fact, meaning there are remediation efforts you can take to get the project back on schedule. In other cases, you may discover that the delay is a reasonable reflection of impacts on the schedule, and you will need to take additional steps to mitigate the delay or submit a claim for a time extension.  

Step 2: Create a New Baseline Schedule 

Your assessment of early project documents gives you the information you need to make informed schedule changes and create a forecasted completion date based on these changes. In this step, you should decide which measures will optimize your new schedule, such as adding resources to the project. 

To create this new baseline schedule, you need to determine the remaining tasks for your project, the sequence of these tasks, and the duration of each. It’s essential to be granular in this process to give everyone a clear understanding of the next steps. 

This scheduling process should also involve risk identification and analysis to ensure your team plans capital and resource allocations effectively. Your new schedule will be a guideline for the rest of your project, but there will always be variables that could impact task completion. The more prepared you are for these variables, the more readily your team can respond and keep up with schedule requirements. Determine if any projected risks can be mitigated before they occur to reduce your risk level as you finish the project. 

Since your schedule is always subject to change, you can use key performance indicators (KPIs) to measure schedule performance. Creating KPIs for your schedule allows you to determine when activities align with the planned execution of the project, even as the schedule shifts. 

Step 3: Evaluate Past Performance 

Previous performance data is a valuable resource as it reveals what has caused project delays in the past. Evaluating these past delays can highlight what type of risks your team is likely to face as you move forward with your current project. Past performance can help your team understand where you incurred additional costs and what resources you need to increase to respond to the delay.  

Analyzing past delays plays a significant role in a proactive strategy. With processes like delay analysis, your team can learn about the factors that lead to schedule delays. With these factors, you can develop risk mitigation strategies for the remainder of your project. 

There are various types of delay analysis methodologies that can offer valuable results for the approach to your current project. For example, time impact analysis examines delay events in chronological order to calculate the impact and the extent of the delay. 

This evaluation stage is also an excellent time to assess the validity of outstanding change order requests with time impacts. With an understanding of previous delays, you can decide if these change order requests are still applicable. You should also refer to the contract requirements to determine if performance up to this point aligns with them. Cost and time will be the most important aspects to consider. 

Step 4: Assess and Determine Go-Forward Recommendations 

After obtaining this important information, you can determine which schedule changes and risk mitigation strategies you should apply to your project moving forward. You can then submit a delay claim or recovery plan that details these changes and carry on with the project. 

As you move forward with project changes, the change management process will be critical for your team to succeed. Every stakeholder in the project needs to be fully informed about the changes and the impact these have on cost and time. A robust planning and scheduling agreement helps all involved parties understand the changes early on. 

During the completion process, providing regular updates to senior management is essential. All members of your team must keep each other accountable and ensure the new schedule is completed as agreed upon. Senior management should also assess project scope regularly to assess how the schedule is unfolding and where adjustments may need to be made. 

When Do You Need a Claims Expert?

If you must make a claim for additional compensation or time due to a delay, consider partnering with a claims expert. A claims expert is a professional who analyzes delays, prepares claims, and assists with dispute resolution. These professionals are vital in helping contractors recover costs and avoid litigation.

Construction delays often necessitate a complex claim — especially if the project is high-stakes — calling for expert assistance to mitigate financial losses. Regardless of claim complexity, you might partner with an expert to identify the cause of a delay and quantify damages accurately.

A claims expert can also be a valuable partner if there’s a likelihood of arbitration or litigation. They’ll provide objective guidance and help you gather the necessary evidence to substantiate your claim to stakeholders.

What Does a Claims Expert Provide?

A claims expert typically has the knowledge, skills, and experience to resolve a construction claim successfully. They provide the following:

Identifies the Cause of the Delay

Countless factors can lead to a schedule delay, from unforeseen weather events to supply chain disruptions. Identifying the root cause of the delay is the first step to achieving a resolution.

A claims expert can help you determine whether the delay was caused by something within your control, like a project management issue, or something outside your control, such as change orders from the project owner. Claims experts are skilled at using delay analysis techniques to establish liability efficiently.

Quantifies the Impact of the Delay

Once you know the cause of the delay, you must quantify its impact and all the costs incurred. There may be a range of damages to consider, including actual damages, liquidated damages, the cost of lost partnerships, and more.

Ensuring you accurately quantify all damages can be challenging, but a claims expert can help. A professional can properly assess and quantify damages using effective methods and thoroughly document their findings to support your claim. 

Prepares a Comprehensive Claim Document

A delay claim must be accompanied by supporting documentation to establish its credibility. Documentation may include a detailed breakdown of damages, a summary of contractual provisions that apply to the claim, and visual evidence, like charts or graphs. A claims expert can help you gather the evidence to present your claim persuasively.

For example, a claims expert can assist you in compiling documentation to prepare a request for equitable adjustment (REA) in response to a delay caused by an unforeseen event. They can also help you determine whether a delay claim or an REA aligns more with your desired outcome.

Negotiates a Settlement

It is often possible to resolve a construction delay dispute through negotiation if one can effectively present the relevant facts. Claims experts typically have experience negotiating with stakeholders and understand that an agreement is more likely to occur with objective evidence on hand.

An experienced claims expert also knows how to anticipate and respond to arguments confidently. They understand the opposing party’s concerns, helping them determine a solution that works for both parties and preventing dispute escalation.

Prepares for Litigation

If negotiating is not fruitful, you may need to prepare for litigation. Litigation can be costly and time-consuming, especially without proper preparation, making it vital to seek consultation to streamline the process as much as possible.

A claims expert who is well-versed in litigation can help you gather the necessary evidence to build a strong case and avoid an unfair settlement. Their process might include conducting an extensive forensic analysis or integrating expert witness testimonies to back up the facts.

Additionally, claims professionals are experienced in presenting technical information to a judge or jury in a digestible way, helping you establish credibility and increasing the chance of a favorable resolution.

How Do You Choose a Claims Expert?

An experienced consultant can help you identify delay causes, develop a schedule, get your project back on track, and file claims properly to recover damages. That said, it’s essential to partner with someone qualified to offer those advantages. Look for a consultant who has:

• Expertise: Claims experts should have a deep understanding of construction law, project management, and the claims process. Their knowledge will help you navigate legal complexities, accurately quantify damages, and effectively communicate with stakeholders. 
• Objectivity: Claims experts must be impartial and prioritize objective facts. Though they should offer you the best support possible, they must also provide an honest, fair assessment of your case for the highest chance of resolution.
• Experience: Look for claims experts with real-world experience handling construction delay disputes. They should be able to provide case studies or testimonials to demonstrate their track record.

There are several questions to ask when hiring anyone to come alongside you and your team during a challenging time: 

• What is their industry expertise? 
• Have they worked on a project like this before? 
• What is their track record like? 
• Do they understand and align with our company’s culture and goals? 
• What are their methodologies for this type of construction challenge? 
• What is the budget and time required to complete their findings? 

Partner With Spire for Claims Expertise and Dispute Resolution 

Project delays are common in the construction world, and they frequently lead to claims. Whether you need to prepare a claim or respond to one, Spire Consulting Group can help.

As a full-service, multidiscipline construction consulting firm, we use both proactive and forensic expertise to accurately identify and quantify project delays. Our consultants thoroughly understand construction laws, delay analysis techniques, and damage quantification methods to help you recover damages while avoiding costly disputes.

Additionally, we have the expertise to help you predict and prevent potential delays in the future, offering excellence in services like project management, CPM scheduling, cost estimating, and construction advisory. Our team has the hands-on experience to guide you through every phase of your construction project. 

Contact us today to schedule a consultation.

The content included in this article is for informational purposes only and does not reflect the opinions or recommendations expressed by any individual unless otherwise stated.