Time is Money: Construction Contract Times, Delays, and Schedules-Time is Money Construction Contract Times Delays Schedules HO4 Contract Times

Time is Money Construction Contract Times Delays Schedules HO4 Contract Times

Pdf Summary

The article by Kevin O’Beirne, PE, published in the Construction Specifications Institute’s Buffalo-Western NY Chapter newsletter, emphasizes the critical importance of carefully determining stipulated contract times in construction contracts. He notes that while design professionals typically invest substantial effort in defining project scope and compensation, they often neglect the due diligence needed to set realistic contract durations. Improperly estimated contract times—too short or too long—can lead to significant issues: compressed schedules may inflate bids due to accelerated work costs and deter bidders, while overly extended schedules delay project benefits, disrupt facility users, and can increase project costs. Contract times may be expressed as either a number of days or specific completion dates, each with trade-offs related to flexibility and certainty. O’Beirne advocates for developing a preliminary construction schedule during the design phase, led by design professionals, construction managers, or program managers, to identify the project’s critical path and allocate reasonable durations for key activities. These activities include preconstruction tasks (mobilization, permitting, subcontracting), delegated design work, submittals and approvals, fabrication, staged or coordinated work, seasonal and weather considerations, site preparation and construction phases, commissioning, training, and closeout processes. He stresses the importance of maintaining proper documentation of scheduling efforts as these records may be crucial in resolving disputes. For larger, complex projects, retaining specialized scheduling consultants is recommended to mitigate risks associated with inadequate contract times. Ultimately, O’Beirne asserts that contract time determination should be treated with as much care as scope and compensation to avoid costly claims, change orders, and project delays, ensuring the stipulated times are “just right.” The article also clarifies that the author’s views are personal opinions and not legal advice.

Keywords

contract time determination

construction contracts

stipulated contract times

project scheduling

construction project management

critical path method

preconstruction activities

schedule documentation

scheduling consultants

project delays and claims