The importance of resource loading in a schedule when substantiating standing time claim

In my previous article I explained the benefits of having a resource loaded programme and why it is crucial to do so. In this article / case study, I would like to demonstrate and explain how resource loading can assist in substantiating a standing time claim.

I would like to start with this statement, If you don’t have a resource loaded programme you are going to find it very difficult to substantiate a standing time claim and that is purely because the client / owner will always ask you to prove that the resources, you are claiming standing time for are in fact evident in the baseline / accepted programme.

Condition president to any claim may it be a standing time claim or a claim for delay because of others is as follows but not limited to;

  • Identify who is responsible for the event that is causing the delay to work progress.

  • Notify the Engineer / Client / Owner of the event, this is either by way of an early warning, if the event has not occurred but is imminent, or if it has occurred then by way of a compensation event notice

  • Determine if the delay can be mitigated in any way
    • Can the labourers be deployed on other work?
    • Can plant and equipment be utilised in other areas?

This should be done with a level of caution because moving resources from one area / workface to another brings another dynamic into the equation and that is one of disruption, which is very difficult to prove in many instances. So, beware of just moving for the sake of moving.

  • Ensure contemporaneous records are updated
    • Take photos, where possible
    • Capture event in daily diary
    • Capture event in schedule
      • Suspend activity
      • Split activity
    • Ensure timesheets are available

Ensure that you consider the effect the delay has on restarting the works and that it isn’t just an immediate start-up when in fact there is a sort of ramp-up time required to remobilise to the area.

Case Study

This case study involves the installation of an underground pipeline. There are two contractors, one a civil contractor and the other a mechanical piping contractor. Figure 1 shows the planned scope of work. The rates for each resource, may it be labour or non-labour, are not in alignment with the actual rates of the respective resources and are purely for the purpose of demonstrating the calculation.

Fig. 1

Fig.1 Planned scope of work shows site clearance, excavate trench and lay bedding, install pipe, blanket backfill, hydro test, final backfill and compaction.
Fig.1 Planned scope of work

Figure 2 – 5 shows the resource loading for each activity in the programme. It should be noted that the resource loading has been done at crew level rather than individual level.

Fig. 2

Fig. 2 Resource loading for activity A1010 Excavate Trench and Lay Bedding, being Civil Crew with 240 budgeted units
Fig. 2 Resource loading for activity A1010 being Civil Crew with 240 budgeted units

Fig. 3

Fig. 3 Resource loading for activity A1030 Install Pipe, being Mechanical Crew with 160 budgeted units
Fig. 3 Resource loading for activity A1030 being Mechanical Crew with 160 budgeted units

Fig. 4

Fig. 4 Resource loading for activity A1040 Blanket Backfill, being Civil Crew with 160 budgeted units
Fig. 4 Resource loading for activity A1040 being Civil Crew with 160 budgeted units

Fig. 5

Fig. 5 Resource loading for activity A1060 Final Backfill and Compaction, being Civil Crew with 80 budgeted units
Fig. 5 Resource loading for activity A1060 being Civil Crew with 80 budgeted units

Figure 6 – 7 shows the makeup of the crews including the hourly and daily rates. The civil crew has a total daily rate of R11,900 per day, and the mechanical crew a daily rate of R13,660 per day.

Fig. 6

Fig. 6 shows the daily rate of the civil crew is R11 900 per day
Fig. 6 Daily rate of the civil crew

Fig. 7

Fig. 7 shows the daily rate of the mechanical crew is R13 660 per day.
Fig. 7 Daily rate of the mechanical crew

Let us assume that all went according to plan and on the 20th of December the civil team came across an underground pipe that was not identified on the site survey report. As a result of this pipe the excavation works must be stopped. Figure 8 shows the progress of the work performed to date

Fig. 8

Fig. 8 Progress of the work performed to date
Fig. 8 Progress of the work performed to date

As mentioned earlier, it is imperative that the client / owner gets notified as soon as practically possible, since this is what the contract normally calls for and what the contractor is obligated to do.

Figure 9 shows the fragnet of the events as they occurred from the event date.

Fig. 9

Fig. 9 Fragnet of the events as they occured
Fig. 9 Fragnet of the events as they occured

Figure 10 shows the impact the delay event has / had on the remaining works. It is seen that the total delay amounted to 9 days of non-progress

Fig. 10

Fig. 10 Impact the event has/had on the remaining works shows that the total delay amounted to 9 days of non-progress.
Fig. 10 Impact the event has/had on the remaining works

Figure 11 shows the total cost of the delay should the contractor not be able to mitigate this delay. The total delay cost for the 9 days of standing time would be R230,040. If the resources are loaded into the baseline programme, or you have loaded by crew but have resource tables to detail the crew make-up, then it makes it clear when it comes to calculating and substantiating your claims.

Fig. 11

Fig. 11 Total cost of unmitigated delay is shown as R230040
Fig. 11 Total cost of unmitigated delay

In this case study the contractor was able to mitigate some of the impact by moving some of the resources elsewhere for the duration of the standing time. Figure 12 shows the cost that the contractor was able to save the client / owner.

Fig. 12

Fig. 12 Cost the contractor could save by mitigating some of the impact is R88800.
Fig. 12 Cost the contractor could save by mitigating some of the impact

Figure 13 shows the total cost less the mitigation cost, and Figure 14 – 15 shows the spread of these costs. The green highlighted cells indicate the mitigation.

Fig. 13

Fig 13. Total cost less the mitigation cost is R141240
Fig 13. Total cost less the mitigation cost

Fig. 14

Fig 14. shows the spread of the costs across the civil crew, showing the mitigated cost as zero.
Fig 14. Spread of the costs, green cells being the mitigated cost.

Fig. 15

Fig 15. shows the spread of the costs across the mechanical crew, showing the mitigated cost as zero.
Fig. 15 Spread of the costs, green cells being the mitigated cost.

Picture of the author of this post
Sean Vermaak
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