Sir; I read with interest Doug Masson's article, Following a
Critical Path (CJ, 16 February 1995), but consider that perhaps Mr
Masson is a little out of touch with current developments in the
use of Critical Path Methods in delay claim analysis.
The criticism that CPM methods are essentially prospective is a
little difficult to understand. Surely this is what the majority of
construction contracts envisage in their extension of time clauses.
JCT 1980, for instance, at clause 25.2.1.1., obliges the contractor
to inform the architect of any incident that is or is likely to
delay the progress of the works.
Recent research has suggested that many delay-based claims that end
up in the courts could have been avoided if the contract had been
administered properly during the project; individual delay claims
being notified, ascertained and awarded contemporaneously instead
of leaving them until the end of the project when hindsight is
clouded by time and commercial pressures.
Using this premise it seems logical that a delay claim should also
be formulated in this manner; delays be analysed in a chronological
sequence reflecting the manner in which they would have been
analysed had the analysis been carried out contemporaneously.
Current methods of simulation using CPM are more sophisticated than
merely looking at the activities and delaying events on the
critical path. They also include the actual progress of the project
at the time the delaying event occurred; the changing nature of the
critical path and the effects of action taken (or that should have
reasonably been taken) to minimise potential delays.
By using facts as the data for the simulation (actual activity
starts and finishes, actual weather down-time, actual delivery
dates and data from other contemporaneous documentation) the
eventual result is more akin to an as-built network.
As-built bar charts are the classic method of illustrating project
delays but, as they are not dynamic, cannot demonstrate the cause
of the delay. Deducting the delays from an as-built programme will
not make it shrink, it will merely reduce the number of, or
duration of, the activities. To shrink it would take expert opinion
to guess what would have happened and the positions and durations
of activities adjusted accordingly.
CPM can be used to formulate as-built networks which would shrink
if delays were deducted. The construction of as-built networks as a
first step in delay analysis is, however, so open to manipulation
as to make it unreliable.
As to the Galoo case, I have not had the benefit of reading the
full judgement. Your readers may, however, be surprised to discover
that it is not a construction related case but one involving
auditors, trading losses and dividend payments.
David W Bordoli