JCA have been commissioned by the Department of Housing and Works to take over the project planning consulting duties for the +$330m Perth Arena project, reporting to the Superintendant’s Representative.

With the project now well underway, JCA’s role will be three fold:
1 - Investigate scheduling to date, and report on progress since commencement.
2 - Independantly carry out regular status inspections and report on progress in tandem with the contractor’s reporting regime.
3 - Independantly carry out Forensic analysis of current and future Extension of time claims.

JCA is currently in the early stages of the initial consultation process, and looks forward to it’s nominated lead Planning and Forensic consultants becoming an integral part of the project.

A technical issue that the JCA Forensic team is often asked to consider is, “What is the most appropriate methodology to adopt when analysing a delay to a project”.

This is NOT an easy question to answer, and will depend on a number of factors.

However one very imporatant factor in selecting one of the main methodologies (ie impacted-as-planned, or Collapsed-as-built, or as-planned v as-built, or time-impact, etc) is the form of contract used on the project between principal and contractor.

ie some forms of contract provide the contractor entitlment to relief from delay (EOT) only where the contractor can prove actual delay to completion. Whereas other forms allow for relief for the “likely effect of a delay risk event”.

JCA would normally consult with their clients legal team (where available) to assess the relevant form of contract before finalising a delay analysis methodology.

Other matters to consider prior to deciding on a methodology, include:

Factual material available
Nature of proof required
Complexity of the delay event(s)
Quantum of Delay events

JCA have noticed an increase in projects progressing to Arbitration due to disputes over late project completion over the last 12 months. We beleive that many of these projects, in the past, most probably would not have escalated to such dispute level.

With a lack of resources, both contractor’s and client’s designers/superintendants, have had their work cut out to complete works in the nominated timeframe. Although JCA try NOT to get involved in the legitimacy of the claims, we do provide independant analysis of the effect of delay events on critical path/completion.

We wonder whether the current global financial crisis (fall out from SubPrime Loans) will increase these delays risks and occurence of time related disputes. One thought is, that as companies try to find savings in expenditure and cut costs (such as employment costs), that their ability to resource projects effectively may be further punished. We have already seen anecdotal evidence that business’s are holding off on employing new personnel (even though they have needed additional staff and continue to need additional staff).

Only time will tell of course!

JCA are repeatedly being commissioned (and more frequently) for Delay and Disruption Disputes, either to independantly adjudicate on time impacts of delay events, or to build claims for Extension of Time.

However it seems that there is a severe lack of understanding of the principles behind delay and disruption disputes by both contractor’s and developers. Developers (and their superindentants) are not specifying adequately the necessary planning methodology (for the contractor to adhere to) to avoid disputes. Likewise Contractor’s are not using suitable planning methodology to help justify their claims. Some are trying but seem to be more focused on developing proceedures to suit the planning software, rather than dealing with more useful procedures for avoiding delay and disruption disputes.

JCA recomend that all parties to a contract, before entering into contract, agreed to adopt the planning/scheduling principles as set out in “The Society of Construction Law - Delay and Disruption Protocol” (Oct 2002 www.eotprotocol.com). This is a protocol developed internationally for Construction contracts, and is used by Australian Arbitrators.

Were not saying that by adopting better practices that delays will be avoided… Delay and disruption will always ocur on construction contracts, however, by both parties adhereing to better planning protocols, then the measurement and adjudication when dealing with delays will be easier, and therefore help to avoid disputes, or escalatation to costly arbitration/litigation.

It’s already September…
I hear whispers that Christmas decorations are already starting to appear in random places….where did the year go ?

At JCA we are seeing a new rush of demand for services, which has made us re-assess our resource needs. We’re currently on the hunt for some very experienced planners to add to our quality team.

Area’s which have seen particular need for expansion include:
* Forensic Planning services - we seem to have a number of Law firms requiring our services, especially for building construction projects.
* Planning for Shutdowns - on major processing plants in the resource sector.

This time last year we were expecting a slight downturn in planning requirements for new projects, however works in this area have also maintained at high demand.

Then again when Mr James Clark started the business in 1980, he thought this “Project Planning” stuff might not last and gave it a couple of years before he’d have to do something else.

JCA Announcement:

JCA have today been awarded a consulting contract for Project Planning services on the Boddington Gold Mine Project.

The Boddington Gold Mine Project works include major expansion of the exsiting open cut mine operations worth approximately A$2.7B.

JCA’s role is to provide on site project planning services to the mine owner’s (Newmont Anglo Gold) EPCM firm (Aker Kvaerner Clough Murray & Roberts).

Some of JCA’s best planners have now been assigned to this project, which starts immediately for JCA.

No, it’s not a blog about CSI the series, Forensic Planning is a loosely coined term that aptley describes one of JCA’s specialist project planning services.

Forensic Planning can include either:

As good project planners know, the art of forensic planning not only requires an excellent knowledge of Critical Path Methodology (CPM) but, not unlike a CSI, also requires patience, an unbiased view, relyance on data/evidence, and not to be swayed by the emotive comments of contracting parties. Forensic planning also requires an ability to extract relevant information from the parties.

JCA have been involved in Forensic Planning for over 25 years including acting as independant expert witness for various cases in arbitration/litigation.

JCA has seen a sharp rise in demand for it’s Forensic planning services, as a result of recent contracts in the construction/mining indutries going off the rails in a booming market.

Clients utilising our Forensic Planning services include Law Firms, Developers, Contractors, & Engineering firms.

We often get asked, what is the difference between the term “Planning” and “Scheduling”, when discussing projects.

The answer given can depend upon various factors, ie:

For reference here is JCA’s basic thoughts (wrong or right) on this matter.
Planning - we believe planning is the art where based on knowledge, information and experience, a planner will develop, status and maintain (with out direction from others) a programme of works from scratch.

Scheduling - we believe scheduling is the action of using data, advice and direction of others to build and/or update a programme of works.

Having said that a person who is a competent planner in building construction, may not be able to fill the title of planner on an mechancal engineering based project (and vice versa).

Some believe the term planning refers to forecasting data, whereas scheduling refers to the recording of actual data. We’re not to sure that this is reflective definition of scheduling.

With increased demand on our engineering division planners, JCA have recently added a few new planners to our team, with the following having started during July:

Kirsty Caporn - Kirsty a local Perth-ite has private sector planning and coordination experience from the Defence industry. With JCA keen to further build on our presence in Defence projects Kirsty’s arrival is a welcomed addition. Kirsty will initially be filling in JCA’s West Perth offices, helping with our in house planning projects, with a view to site based consulting roles in due course.

Ali Shirazi - Joins JCA as a highly skilled and experienced planner/controller from Iran. Having work throughout the Middle East, on major Oil and Gas Projects, Ali is also a welcomed new arrival for JCA. Ali has immediately been snapped up by one of our clients and assigned to the Alkimos Water Treatment project, and will soon be availble for on-shore Oil & Gas Projects.

JCA have also employed three other planners/schedulers this month, all will be starting in August.

JCA are currently involved with a collaborative study between Curtin University, Royal Melbourne Institute of Technology and CRC.

JCA has been selected to provide input to this study on Disputes in construction. Through JCA’s considerable experience consulting in time planning, JCA has been able to provide insight to the study team on the how, what, why and when delay disputes occur, and how best to deal with these dispute in relataion to Time Delays, with a view to avoidance.

JCA is proud to be involved in this important national study, and looks forward to the published results in due course.