Plotting the programme of work

by ODUFUWA OPEYEMI

BRIEFINGS

Programmes of work which show the sequence of activities are common in the construction industry, and their importance is growing rapidly. Managers, engineers, quantity surveyors and site managers now need to be able to read and interpret programmes as much as construction drawings. But the role of programmes is still unclear.

Standard forms of contract do not take a common approach to their use and often the contractual significance of a programme is difficult to establish. In this Briefing we describe the common types and uses of programmes and their status in standard contract forms.

Adopting the modern angle

Under the Engineering Construction Contract 2nd Edition the programme is an important tool in the management and administration of the contract. There are extensive provisions for both the submission of programmes for acceptance and for their revision.

This form adopts a modern and innovative approach, in which the term 'programme' means more than simply a bar chart, but also includes a method statement (identified at clause 31.2).

Detailed provisions are made for programmes.

They are required to show key dates, a method statement for each operation, resources, the order and timing of operations, float and time risk allowances.

The provisions for revising the programme under clause 32.2 ensures that programmes are updated to reflect progress and changes in the contractor's plans. The intention is to allow flexibility in the planning of work subject to express requirements in the works information.

If the employer does not provide information or carry out work in accordance with the programme, the contractor will be entitled to compensation. The employer is therefore obliged to follow the programme.

This programme is also used to establish delays and as such is a compensation programme.

Analysis of delay is intended to be based on the programme, revised to take into account not only the delay but also time risk allowances for the consequences of the compensation event.

Chart hits: the most common programmes

The term 'programme' is not a legal term. It takes its meaning from the contract. In order to decide what type of programme is required it is necessary to examine the role designated to the programme by the contract terms.

The most common type of programme is a bar chart representing a list of activities. The planned start and finish are shown on a time grid and are connected by a horizontal bar, which represents the duration of the activity.

The bar chart is used to report and monitor progress using a 'time-line' in which the progress of each activity is shown against the time-line. See Figure 1, above. The bar chart, although useful, only allows progress to be monitored; it does not allow analysis of the effects of different events or to decide which activities should have a priority. Neither does it easily allow an evaluation of any entitlement to extension of time, although it is useful as evidence.

The type of programme required to manage a project or establish entitlement is a Critical Path Network Programme of which the most commonly used is the linked bar chart, see Figure 2, left.

The linked bar chart models the whole project by linking activities by 'logic links'. It is possible to alter the duration or timing of an activity and see the effect on other activities and completion. Delayed activities which will delay completion are 'on the critical path'. Others are said to have 'float'.

Making progress

ICE 7th Edition Clause 14 requires the contractor to submit a programme and a method statement. One role of the programme is to measure progress: comparison against the programme will be evidence of the contractor having fulfilled its obligation to proceed as reasonably expected.

A bar chart will be sufficient to fulfil the function identified in ICE 7th Edition, as it will show the order of carrying out the works and allow progress to be monitored.

The ICE Form does not give the programme a significant place in the management of the contract. The contractor's report on its method of working is distinct from the submission of a programme and the contractor's obligation for progress is not directly related to the programme.

This programme is not a compensation programme since the entitlement to extension of time is based on actual delay and not on an analysis of the clause 14 programme.

It's all in the detail Under MF/1 Rev 4 2000 the programme is required to show:

The sequence and timing of the activities by which the contractor proposes to carry out the works;

Anticipated resources;

Respective times for submission by the contractor of drawings and operating and maintenance instructions; and n The times by which the contractor requires the purchaser to provide information and access, to have completed any necessary work, obtained permits and provided site utilities.

The programme a detailed document, although its role is only to allow progress to be monitored. Although the engineer can order revision of the programme, there is no express obligation to follow it.

It is advised that a bar chart is used to fulfil the functions required under the MF/1 Rev 4 2000, subject to provisions in the special conditions. This is not intended to be a compensation programme.

How to keep it simple

Of all the standard forms, the JCT 1998 is the least innovative in recognising the rise in the use of programmes in contracts and particularly in reducing the incidence of disputes.

The form refers to a 'Master Programme' in clause 5.4.1, which is optional. This programme does not have a defined role - it is made clear that nothing contained in the Master Programme, nor in its revision, imposes any obligation beyond those imposed by the contract documents.

The form refers to an 'Information Release Schedule'. This is the simplest form of programme: a list of required information together with dates on which the architect is to issue the information.

The failure of the architect to comply with clause 5.4.1 is a 'relevant event' which may entitle the contractor to an extension of time.

Primary importance

The IChemE Form has a rather ambiguous approach to the use of the programme. The role of the programme is intended only to allow progress to be monitored and a bar chart is sufficient to fulfil the required role. This programme is not intended to be a compensation programme.

The programme is intended to demonstrate progress that th project manager considers could reasonably be made by the contractor.

Clause 13.3 requires the contractor to use reasonable endeavours to perform its obligations in accordance with the programme.

The programme is required to be an accurate prediction of progress. The primary obligations are to complete on time an to proceed regularly and diligently. The obligation to follow the approved programme is a secondary requirement to achieving the primary obligations.