Delay Analysis Method of Allocating Floats on Ownership Base
Date Issued
2014
Date
2014
Author(s)
Tsai, Chi-Chen
Abstract
Delay dispute is one of the most common disputes during the execution of constructed project. When a delay dispute occurs, delay analysis must be adopted to attribute responsibility for the delay. Float ownership is recognized as the critical issue in delay analysis; however, float ownership is often not analyzed using the basic assumptions of delay analysis. Furthermore, most of practitioners believed that the float should belong to the project, and therefore parties executing the contract of the project do not need to pay any consideration when using the float, even, it is not necessary. This may affect the functions of schedule management. Meanwhile, the user of later float might commonly bear a larger delay risk.
To solve these problems, many scholars had proposed various methods. The primary objective of this study is to construct a new delay analysis method based on the assignment of float ownership. This new method can be used to be a reference to establish contract provisions of float ownership before signing a contract and to serve as a mechanism for resolving and analyzing delay disputes during contract performance. The concepts of criticality of potential risk and cost efficiency are employed as a foundation to address the insufficiency of methods proposed in the past. From the prospect of criticality of the associated risk, this study allocated float and delay responsibility by using criticality index of each activity which was derived from Monte Carlo simulation. From the prospect of cost efficiency, the cost efficiency is measured by the least impact on total cost due to the delay. In other words, the project will result in minimum cost.
The results of this study indicate that, in terms of float allocation, in the most of past methods, the activity time of each activity is taken as the basis for allocating float. That is, the longer the activity time is, the larger the float should be allocated to that activity. The method utilized in this study uses critical indices as the basis of float allocation. In other words a larger float should be allocated to activities with higher risk due to delayed. This study found that float allocation may not be efficiently optimized when that float is equally shared between users. Moreover, when analyzing the attribution of delay responsibility, past methods did not consider certain problems associated with weight of severity, namely responsibility assignment on those of critical and non-critical delay. This method weight the criticality due to impact of the delay. Thus, it avoids the situation where a delay occurs on the critical path but the liability is not duly assigned because the party delayed the critical path may have extra floats that are pre-allocated on the non-critical path and are used to decline the liability.
The proposed criticality index delay analysis method is based on total project cost impacted by the delay. This method is a systematic approach that considers float allocation and delay responsibility attribution. This method can be used as a reference to establish float ownership attribution before signing a contract and to serve as a mechanism for resolving and analyzing delay disputes and responsibility during contract performance. In addition, this method is suitable for situations where the contractual parties have a large cognitive gap regarding float ownership.
Subjects
遲延
浮時
浮時擁有權
成本
要徑指數
Type
thesis
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