When project delays occur, contractors may need to request a time extension. Time extension negotiation is usually done between contractors and owners. On the contractor’s side, they’ll need to provide documentation of the delay. This will show the owners the impact the delay will have on the project. If the owners decide that the delay is significant, they may approve a time extension for the project.
One way that contractors can document the effect of a delay is through Time Impact Analysis. This is a method of quantifying the effect that a delay will have on a project’s schedule and budget before it occurs. This analysis will show whether a delay will lead to significant change in the project’s duration, finish date, or cost. The more significant the delay, the more likely the owner is to approve extensions.
In Oracle Primavera Cloud (OPC), you can perform time impact analysis easily. The program has a variety of built-in tools to make this process efficient. Through Baselines, you can model delay with a fragnet while keeping project data safe. Then, using the Schedule Comparison tool, you can quantify the effects of the delay on the project. Within minutes, you’ll have enough information to negotiate a time extension.
In this article, we will overview how to perform time impact analysis in Oracle Primavera Cloud. This demonstration will feature creating baselines, creating fragnets, and performing schedule comparisons.
What is Time Impact Analysis?
Time Impact Analysis (TIA) is a method of forecasting the effect that a delay will have on a project. This method involves adding activities to a schedule to represent the delay. These delay activities are often added as a fragnet – which is another word for a fragmented network of activities. Fragnets are sets of linked activities that show additions, deletions, and modifications to the current schedule data. Once a fragnet for the delay is added to the schedule, you’ll be able to analyze the impact that it will have on the project’s duration, completion, and budget. This impact data is key, as you will use it to negotiate time extensions for the project. The more information the contractor can give about the effect of the delay, the more likely that a time extension will be approved.
3 Steps for Time Impact Analysis
There are 3 basic steps to performing Time Impact Analysis:
- Identify which schedule update to place the delay into. This generally will be the last accepted schedule update before the impact date. You will want to make sure you have a copy of the project before the delay – either as a baseline or an export. You will use this original schedule data to compare with the delayed schedule data.
- Create a model of the delay in the form of a fragnet. To create a fragnet, add activities to model the schedule delay. Then, tie the activities together with logic to create a sequence of activities.
- Place the fragnet into the project schedule to create the delayed schedule. You will need to determine where to place the fragnet within the project to analyze the effect of the delay. This can sometimes be tricky, depending on your goal. For example, if you add the fragnet to a non-critical activity, you may not see any change within the project’s duration. If you’re looking to receive a time extension, you should tie your fragnet to a critical activity. This will add duration to your project for the delay, making it more likely that the time extension gets approved.
How to Perform Time Impact Analysis in Oracle Primavera Cloud
To start with, open up the last schedule update before the delay is set to occur. This should be the last accepted update prior to the delay’s start. Navigate to the Activities screen by selecting Schedule > Activities.
Creating a Baseline for Comparison
Before creating the fragnet, you’ll want to have a record of the schedule as it is now. That way, you’ll be able to compare the delayed schedule with the current one to quantify the difference. You can do this by exporting the project, or by creating a baseline. To create a baseline for the open project, select Actions > Add Baseline.
Adding Baseline Bars
Creating a Fragnet
On the Activities page, you can now create the fragnet with activities and logic. To add new activities to the project, select the associated WBS layer and press Add.
In this example, our team realized that we need to add scope to the structure’s construction. To model this change, I’ll add four activities to the Fragnet WBS layer. For each added activity, adjust the Name, Duration, and Calendar to represent the needed work. I’ll add the following activities:
- Add Scope, 2 days of duration
- Design, 10 days of duration
- Procure, 20 days of duration
- Construction, 15 days of duration
If you’re concerned with the associated costs for the delay, you may also want to assign resources to these activities.
You should now have a little network of logical activities – otherwise known as a fragnet.
Adding the Fragnet to the Project Schedule
The most crucial step in time impact analysis is adding the fragnet to the rest of the project schedule. It is up to the scheduler to determine where these activities will go within the project’s logic. If you are looking to get a time extension, you will want to focus on the critical activities. The reason for performing time impact analysis is to show delay’s impact on the schedule. If you tie your fragnet to a non-critical activity, you may not see much duration change from the original project. On the other hand, when you tie the fragnet to critical activities, the project duration will increase – making it more likely that the time extension is approved. You’ll also need to make sure fragnet’s placement is logical. The fragnet should be set to precede the first activity that can not take place until the delay has occurred.
In my example, I’ll set the fragnet to take place after Strip Slab but before Erect Structural Steel. This will ensure that the delay takes before the building envelope and dry wall begins. To do this, I’ll select Strip Slab from the table, and navigate to the Relationships tab in the details section. I’ll select Assign in the Successors side of the table and assign Add Scope. That takes care of the start of the fragnet, but I also need to determine what will follow it. In the same way, I’ll assign Construction as a predecessor to Erect Structural Steel. Now, the fragnet is a part of the schedule’s driving logic.
Documenting the Delay
With this comparison report, you now have a good case for your time extension. It’s useful to provide the owner with as much information as you can on the delay’s effect. Specifically, make sure to show the changes between finish dates, durations, and costs (if relevant). With Oracle Primavera Cloud, you can generate this information in seconds. Now, you’ll be able to negotiate time extensions with the owner in no time.
Lauren Hecker is an Oracle Primavera Cloud Instructor and teaches onsite and virtual Oracle Primavera Cloudcourses. To see her next open enrollment course, please visit our OPC page. To schedule an onsite or custom course, please contact us!