CPM Contract Language
This section is to provide suggestions for CPM Contract Language that will properly enable and support TAKT Construction.
This guide is designed to help merge CPM and Takt for the control of construction schedules.
Section 1: Template Contract Language
ARTICLE __
COMMENCEMENT OF WORK, PROJECT SCHEDULE, AND SCHEDULING OBLIGATIONS
5.1 Commencement of Work. –Not included in this example–
5.2 Limited Notice to Proceed/Notice to Proceed. –Not included in this example–
5.3 Project Schedule. Contractor shall perform the Work in accordance with the Project Schedule. (Which includes the CPM and Takt formats)
A Target Substantial Completion Date. Listed in Attachment _ is the Target Substantial Completion Date for __. The Target Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement.
B Guaranteed Substantial Completion Date. Contractor shall achieve Substantial Completion of __ no later than the date specified in Attachment __ (“Guaranteed Substantial Completion Date”). The Guaranteed Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement. –Recommend bulleting out substantial completion requirements here–
C Final Completion. Contractor shall achieve Final Completion no later than *** (***) Days after achieving Substantial Completion of __ or as soon as reasonably practicable thereafter if the Parties mutually agree (both acting reasonably).
5.2 Limited Notice to Proceed/Notice to Proceed. –Not included in this example–
5.3 Project Schedule. Contractor shall perform the Work in accordance with the Project Schedule. (Which includes the CPM and Takt formats)
A Target Substantial Completion Date. Listed in Attachment _ is the Target Substantial Completion Date for __. The Target Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement.
B Guaranteed Substantial Completion Date. Contractor shall achieve Substantial Completion of __ no later than the date specified in Attachment __ (“Guaranteed Substantial Completion Date”). The Guaranteed Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement. –Recommend bulleting out substantial completion requirements here–
C Final Completion. Contractor shall achieve Final Completion no later than *** (***) Days after achieving Substantial Completion of __ or as soon as reasonably practicable thereafter if the Parties mutually agree (both acting reasonably).
5.4 CPM Schedule Submissions. Within fifteen (15) Days after NTP is issued in accordance with Section 5.2B, Contractor shall prepare and submit to Owner for its review a critical path method schedule (“CPM Schedule”) for the Work identifying a critical path for the phases of __, which shall be detailed to only include phase summaries and sequence summaries for non-repetitive work for the Project (including engineering, procurement, construction, pre-commissioning, commissioning, testing and startup). The CPM Schedule phases, and sequence summaries will be based on Takt principles with a reasonable sequence of work and with a line of balance between a 30% and 50% Realized Flow Potential. In addition, no later than thirty (30) Days after NTP is issued in accordance with Section 5.2B, Contractor shall submit to Owner for its review a complete Norm-level Takt plan, which shall be detailed to include all work packages for the Project (including engineering, procurement, construction, pre-commissioning, commissioning, testing and startup).
The initial CPM Schedule shall govern Contractor’s Work until the Norm-level Takt plan is prepared and reviewed by Owner. Each of the initial and revised Schedules shall be referred to as the “The Master Schedule,” and each shall comply with the requirements of this Section 5.4 and shall be provided to Owner in its native electronic format and in print. The CPM Schedule shall be prepared by Contractor using Primavera Project Planner, Microsoft Project, or Asta. Without limitation of the foregoing, the CPM Schedule shall include the information and meet the requirements set forth in Section 8.4 of Attachment A.
The initial CPM Schedule shall govern Contractor’s Work until the Norm-level Takt plan is prepared and reviewed by Owner. Each of the initial and revised Schedules shall be referred to as the “The Master Schedule,” and each shall comply with the requirements of this Section 5.4 and shall be provided to Owner in its native electronic format and in print. The CPM Schedule shall be prepared by Contractor using Primavera Project Planner, Microsoft Project, or Asta. Without limitation of the foregoing, the CPM Schedule shall include the information and meet the requirements set forth in Section 8.4 of Attachment A.
5.5 Recovery and Recovery Schedule. If, at any time during the prosecution of the Work, (i) should the Monthly Progress Report show that any phase or sequence on the critical flow path is ten (10) or more Days behind schedule, or should Contractor fail to provide a Monthly Progress Report in compliance with the requirements of this Agreement and Owner reasonably determines that any sequence or phase on the critical flow path is ten (10) or more Days behind schedule and (ii) Contractor or any of its Subcontractors or Sub-subcontractors are in Owner’s reasonable judgment responsible for such delay, Owner may, in addition to any other remedies that it may have under this Agreement, require that Contractor prepare a schedule to explain and display how it intends to regain compliance with the CPM Schedule and Takt plans. (“Recovery Schedules”).
Critical Flow Path: The longest path on the project that represents the critical flow and dependency between phases with buffers. The path represents the series of Takt trains (Train of Trades) that must flow through the project to complete it on time. This path does not trade stack, overburden crews, and is never found without buffers. It is composed of a start date, line of balance, phase sequence, buffer, and interdependence tie.
Within ten (10) Business Days after the determination by Owner of the requirement for a Recovery Schedule, Contractor shall prepare the Recovery Schedule and submit it to Owner for its review. The Recovery Schedule shall (i) represent Contractor’s best judgment as to how it shall regain compliance with the CPM Schedule & Takt plan, (ii) be prepared in accordance with industry current best practices, (iii) have a level of detail sufficient for Contractor to direct, manage and perform the Work, and (iv) incorporate a plan that is possible with current regional and industry resources without unduly burdening crews with trade stacking or excessive acceleration. The plan shall be for that period reasonably necessary to regain compliance with the CPM Schedule and Takt plan. Contractor shall address all comments received from Owner during Owner’s review of the Recovery Schedule, and Contractor shall provide a written statement describing why any of Owner’s comments or proposed changes to the Recovery Schedule were not implemented by Contractor.
Any of Owner’s comments or proposed changes to the Recovery Schedule that Contractor implements should be reflected in the revised Recovery Schedule. The revised Recovery Schedule shall then be the schedule which Contractor shall use in planning, organizing, directing, coordinating, performing, and executing the Work (including all activities of Subcontractors and Sub-subcontractors) to regain compliance with the CPM Schedule & Takt plan. The cost of preparing and executing the Recovery Schedule shall be at Contractor’s sole cost and expense; provided, however, if the preparation of a Recovery Schedule is combined with a request by Owner for a Change Order and the cost of preparing the Change Order for such request (excluding any costs associated with recovery) exceeds Thirty Thousand U.S. Dollars (U.S.$30,000), then Contractor is entitled to reimbursement for such preparation costs in accordance with Section ___. Owner’s review and comments regarding the Recovery Schedule shall not relieve Contractor of any obligations for performance of the Work, change the Target Substantial Completion Date or Guaranteed Substantial Completion Date or be construed to establish the reasonableness of the Recovery Schedule.
Within ten (10) Business Days after the determination by Owner of the requirement for a Recovery Schedule, Contractor shall prepare the Recovery Schedule and submit it to Owner for its review. The Recovery Schedule shall (i) represent Contractor’s best judgment as to how it shall regain compliance with the CPM Schedule & Takt plan, (ii) be prepared in accordance with industry current best practices, (iii) have a level of detail sufficient for Contractor to direct, manage and perform the Work, and (iv) incorporate a plan that is possible with current regional and industry resources without unduly burdening crews with trade stacking or excessive acceleration. The plan shall be for that period reasonably necessary to regain compliance with the CPM Schedule and Takt plan. Contractor shall address all comments received from Owner during Owner’s review of the Recovery Schedule, and Contractor shall provide a written statement describing why any of Owner’s comments or proposed changes to the Recovery Schedule were not implemented by Contractor.
Any of Owner’s comments or proposed changes to the Recovery Schedule that Contractor implements should be reflected in the revised Recovery Schedule. The revised Recovery Schedule shall then be the schedule which Contractor shall use in planning, organizing, directing, coordinating, performing, and executing the Work (including all activities of Subcontractors and Sub-subcontractors) to regain compliance with the CPM Schedule & Takt plan. The cost of preparing and executing the Recovery Schedule shall be at Contractor’s sole cost and expense; provided, however, if the preparation of a Recovery Schedule is combined with a request by Owner for a Change Order and the cost of preparing the Change Order for such request (excluding any costs associated with recovery) exceeds Thirty Thousand U.S. Dollars (U.S.$30,000), then Contractor is entitled to reimbursement for such preparation costs in accordance with Section ___. Owner’s review and comments regarding the Recovery Schedule shall not relieve Contractor of any obligations for performance of the Work, change the Target Substantial Completion Date or Guaranteed Substantial Completion Date or be construed to establish the reasonableness of the Recovery Schedule.
5.6 Acceleration and Acceleration Schedule.
A. Even if the Work is otherwise in compliance with the CPM Schedule, and Takt plan, Owner may, at any time, direct Contractor in writing to advance one or both of the Target Substantial Completion Date and the Guaranteed Substantial Completion Date; provided, however, such directive shall be reasonable, and Contractor shall have agreed in writing that such acceleration is commercially and technically feasible. In the event of such agreement, the directive shall be termed herein a “Confirmed Acceleration Directive” and shall be set forth in a Change Order. In no event shall Owner have the right to issue a unilateral acceleration directive requiring Contractor to achieve Substantial Completion of __ prior to the original Guaranteed Substantial Completion Date specified in this Agreement as of the Contract Date. In the event of a Confirmed Acceleration Directive, Owner shall pay Contractor for the documented costs plus fees attributable to such acceleration and appropriate incentives, if any, shall be mutually agreed upon by the Parties with respect to such early proposed completion and set forth in the Change Order. Such costs may include any shift differential, premium, or overtime payments to workers or field supervisors and other employees of Contractor dedicated to the Work on a full-time basis actually incurred over and above Contractor’s normal rates, and overtime charges for Construction Equipment. Any adjustment to the Contract Price or any other Changed Criteria necessitated by such acceleration of the Work shall be implemented by Change Order. Upon execution of the Change Order, Contractor shall immediately commence and diligently perform the acceleration of the Work and shall prepare a schedule to explain and display how it intends to accelerate the Work and how that acceleration will affect the critical flow path of the CPM Schedule and Takt plan (the “Acceleration Schedules”). With respect to the Acceleration Schedule, Contractor shall do the following:
1. No later than the tenth (10th) Business Day after execution of the Change Order with respect to the Confirmed Acceleration Directive, Contractor shall prepare the Acceleration Schedule and submit it to Owner for its review. The Acceleration Schedule shall represent Contractor’s best judgment as to how it shall satisfy the Confirmed Acceleration Directive. The Acceleration Schedule shall be prepared using current industry best practices and to a similar level of detail as the CPM Schedule and current Takt plans.
2. On the tenth (10th) Business Day after execution of the Change Order with respect to the Confirmed Acceleration Directive (or such longer time as specified in writing by Owner), Contractor shall participate in a conference with Owner, and with any other Person (including Subcontractors and Sub-subcontractors) whom Owner reasonably designates to participate, to review and evaluate the Acceleration Schedule. Any revisions to the Acceleration Schedule necessary as a result of this review shall be resubmitted for review by Owner as soon as reasonably practicable or as mutually agreed by the Parties. The revised Acceleration Schedule shall then be the schedule which Contractor shall use in planning, organizing, directing, coordinating, performing, and executing that portion of the Work that is affected by such acceleration, with the CPM Schedule governing the performance of all other Work.
Owner’s review of the Acceleration Schedule shall not constitute an independent evaluation or determination by Owner of the workability, feasibility, or reasonableness of that schedule.
A. Even if the Work is otherwise in compliance with the CPM Schedule, and Takt plan, Owner may, at any time, direct Contractor in writing to advance one or both of the Target Substantial Completion Date and the Guaranteed Substantial Completion Date; provided, however, such directive shall be reasonable, and Contractor shall have agreed in writing that such acceleration is commercially and technically feasible. In the event of such agreement, the directive shall be termed herein a “Confirmed Acceleration Directive” and shall be set forth in a Change Order. In no event shall Owner have the right to issue a unilateral acceleration directive requiring Contractor to achieve Substantial Completion of __ prior to the original Guaranteed Substantial Completion Date specified in this Agreement as of the Contract Date. In the event of a Confirmed Acceleration Directive, Owner shall pay Contractor for the documented costs plus fees attributable to such acceleration and appropriate incentives, if any, shall be mutually agreed upon by the Parties with respect to such early proposed completion and set forth in the Change Order. Such costs may include any shift differential, premium, or overtime payments to workers or field supervisors and other employees of Contractor dedicated to the Work on a full-time basis actually incurred over and above Contractor’s normal rates, and overtime charges for Construction Equipment. Any adjustment to the Contract Price or any other Changed Criteria necessitated by such acceleration of the Work shall be implemented by Change Order. Upon execution of the Change Order, Contractor shall immediately commence and diligently perform the acceleration of the Work and shall prepare a schedule to explain and display how it intends to accelerate the Work and how that acceleration will affect the critical flow path of the CPM Schedule and Takt plan (the “Acceleration Schedules”). With respect to the Acceleration Schedule, Contractor shall do the following:
1. No later than the tenth (10th) Business Day after execution of the Change Order with respect to the Confirmed Acceleration Directive, Contractor shall prepare the Acceleration Schedule and submit it to Owner for its review. The Acceleration Schedule shall represent Contractor’s best judgment as to how it shall satisfy the Confirmed Acceleration Directive. The Acceleration Schedule shall be prepared using current industry best practices and to a similar level of detail as the CPM Schedule and current Takt plans.
2. On the tenth (10th) Business Day after execution of the Change Order with respect to the Confirmed Acceleration Directive (or such longer time as specified in writing by Owner), Contractor shall participate in a conference with Owner, and with any other Person (including Subcontractors and Sub-subcontractors) whom Owner reasonably designates to participate, to review and evaluate the Acceleration Schedule. Any revisions to the Acceleration Schedule necessary as a result of this review shall be resubmitted for review by Owner as soon as reasonably practicable or as mutually agreed by the Parties. The revised Acceleration Schedule shall then be the schedule which Contractor shall use in planning, organizing, directing, coordinating, performing, and executing that portion of the Work that is affected by such acceleration, with the CPM Schedule governing the performance of all other Work.
Owner’s review of the Acceleration Schedule shall not constitute an independent evaluation or determination by Owner of the workability, feasibility, or reasonableness of that schedule.
8. PROJECT CONTROLS
8.1 General
Contractor shall plan and program the Work and its resource requirements in accordance with the requirements of the Project Schedule.
8.2 Project Controls Plan
Contractor shall produce a detailed Project controls plan (“Project Controls Plan”) for review by Owner within sixty (60) Days after Notice to Proceed. Owner will provide comments within ten (10) Business Days. The Project Controls Plan shall detail the procedures to be used by Contractor to maintain the scheduling, control, progress, Change Order control, and reporting of all activities required to ensure that Substantial Completion of __ is achieved by the Guaranteed Substantial Completion Date of __.
8.3 Program Reporting – Planning Network
The Work shall be planned, managed, monitored and controlled by use of an integrated critical path network planning system, derived from a location-based work breakdown structure (“WBS”). The CPM will monitor phases and non-repetitive sequences only. Detailed scheduling shall be done with Takt planning.
CPM Schedule. Contractor shall produce a CPM Schedule in accordance with Section 5._ of the Agreement that will be the reference schedule for the duration of the Project unless revised by Change Order approved by the Owner. The CPM Schedule shall be the Project baseline plan comprising a control network detailing phases to be completed in a logical sequence and being detailed only to summarize Takt phases and non-repetitive sequences. (Unless the CPM schedule replicates the Takt phase exactly) to provide a critical flow path for the project team to review and control the project. The identification of key activities and restraints, interdependencies, interrelationships, and resources required to control the Project will be done in the Takt Control System and with the Takt layouts.
Critical Flow Path: The longest path on the project that represents the critical flow and dependency between phases with buffers. The path represents the series of Takt trains (Train of Trades) that must flow through the project to complete it on time. This path does not trade stack, overburden crews, and is never found without buffers. It is composed of a start date, line of balance, phase sequence, buffer, and interdependence tie.
Contractor shall plan and program the Work and its resource requirements in accordance with the requirements of the Project Schedule.
8.2 Project Controls Plan
Contractor shall produce a detailed Project controls plan (“Project Controls Plan”) for review by Owner within sixty (60) Days after Notice to Proceed. Owner will provide comments within ten (10) Business Days. The Project Controls Plan shall detail the procedures to be used by Contractor to maintain the scheduling, control, progress, Change Order control, and reporting of all activities required to ensure that Substantial Completion of __ is achieved by the Guaranteed Substantial Completion Date of __.
8.3 Program Reporting – Planning Network
The Work shall be planned, managed, monitored and controlled by use of an integrated critical path network planning system, derived from a location-based work breakdown structure (“WBS”). The CPM will monitor phases and non-repetitive sequences only. Detailed scheduling shall be done with Takt planning.
CPM Schedule. Contractor shall produce a CPM Schedule in accordance with Section 5._ of the Agreement that will be the reference schedule for the duration of the Project unless revised by Change Order approved by the Owner. The CPM Schedule shall be the Project baseline plan comprising a control network detailing phases to be completed in a logical sequence and being detailed only to summarize Takt phases and non-repetitive sequences. (Unless the CPM schedule replicates the Takt phase exactly) to provide a critical flow path for the project team to review and control the project. The identification of key activities and restraints, interdependencies, interrelationships, and resources required to control the Project will be done in the Takt Control System and with the Takt layouts.
Critical Flow Path: The longest path on the project that represents the critical flow and dependency between phases with buffers. The path represents the series of Takt trains (Train of Trades) that must flow through the project to complete it on time. This path does not trade stack, overburden crews, and is never found without buffers. It is composed of a start date, line of balance, phase sequence, buffer, and interdependence tie.
The CPM Schedule shall:
1. Be consistent with the Project Schedule, including LNTP, NTP, the Guaranteed Substantial Completion Date for __;
2. Represent Contractor’s best judgment as to how it shall complete the Work in compliance with the Project Schedule;
3. Be a detailed graphic representation of all significant aspects of the Work showing Contractor’s plans for performance of the Work;
4. Comply with current industry best practices per taktguide.com;
5. Summarize the level of detail sufficient in the Takt formats for Contractor to plan, organize, direct, coordinate, perform and execute the Work, and for Owner to monitor the progress of the Work;
6. Indicate all Milestones to be used for progress payments. The initial CPM Schedule shall reflect the dates on the original Milestones progress payment schedule. Thereafter, at least once each quarter Milestones shall be re-scheduled in the CPM Schedule, if necessary, to reflect the current Schedule progress and updated projected Milestone dates. New Change Order Milestones, if any, shall be incorporated into the CPM Schedule at the quarterly CPM Schedule update.
2. Represent Contractor’s best judgment as to how it shall complete the Work in compliance with the Project Schedule;
3. Be a detailed graphic representation of all significant aspects of the Work showing Contractor’s plans for performance of the Work;
4. Comply with current industry best practices per taktguide.com;
5. Summarize the level of detail sufficient in the Takt formats for Contractor to plan, organize, direct, coordinate, perform and execute the Work, and for Owner to monitor the progress of the Work;
6. Indicate all Milestones to be used for progress payments. The initial CPM Schedule shall reflect the dates on the original Milestones progress payment schedule. Thereafter, at least once each quarter Milestones shall be re-scheduled in the CPM Schedule, if necessary, to reflect the current Schedule progress and updated projected Milestone dates. New Change Order Milestones, if any, shall be incorporated into the CPM Schedule at the quarterly CPM Schedule update.
The Takt Schedule shall:
1. Include separate activities for each significant portion of the Work in the Norm-level Takt plans including activities for mobilization, engineering, procurement, construction, commissioning, start up, testing, closeout and demobilization;
2. Show the duration, start dates, and finish dates for each activity;
3. Show activity description, and responsible Person (i.e., Contractor, Subcontractor, or Sub-subcontractor) for each activity;
4. Reflect logical relationships between activities with a reasonable duration for each activity, and show an uninterrupted trade flow from the LNTP through NTP, to Substantial Completion of __ and Final Completion of __;
5. Be consistent with the Project Schedule, including LNTP, NTP, the Guaranteed Substantial Completion Date for __;
6. Represent Contractor’s best judgment as to how it shall complete the Work in compliance with the Project Schedule;
7. Comply with all key requirements shown on the Taktguide.com website.
2. Show the duration, start dates, and finish dates for each activity;
3. Show activity description, and responsible Person (i.e., Contractor, Subcontractor, or Sub-subcontractor) for each activity;
4. Reflect logical relationships between activities with a reasonable duration for each activity, and show an uninterrupted trade flow from the LNTP through NTP, to Substantial Completion of __ and Final Completion of __;
5. Be consistent with the Project Schedule, including LNTP, NTP, the Guaranteed Substantial Completion Date for __;
6. Represent Contractor’s best judgment as to how it shall complete the Work in compliance with the Project Schedule;
7. Comply with all key requirements shown on the Taktguide.com website.
8.5 Progress Measurement
The Contractor shall, until Substantial Completion of __, develop and maintain systems and procedures for the measurement of progress against the CPM Schedule and Takt plan. The Contractor shall measure progress based on actual Work completed.
The Contractor shall, until Substantial Completion of __, develop and maintain systems and procedures for the measurement of progress against the CPM Schedule and Takt plan. The Contractor shall measure progress based on actual Work completed.
8.6 Meetings; Weekly Progress Meetings; Minutes
Periodic meetings shall be held as required for the purpose of keeping Owner fully informed of all aspects of the Work, and for reviewing execution plans, technical or financial concerns, progress status and scheduling of the Work, remedial actions, quality concerns, safety concerns, interfaces, and Owner and Contractor plans for resolving issues.
Commencing with LNTP, weekly progress meetings will be held between Owner’s Representative or his designee, and any other Persons designated by Owner, and Contractor’s Key Personnel at the appropriate Stage 3 Site location, or as agreed by the Parties, Owner or Contractor home office. Owner and Contractor shall agree on dates, standardized reports and agenda for such meetings well in advance as the Work demands.
Minutes of all progress-related meetings (including weekly and monthly progress meetings) shall be prepared by Contractor (unless otherwise agreed by Owner) and sent to Owner in electronic format within five (5) Business Days following the meeting. The contents of the minutes shall be subject to review at the next weekly progress meeting. The format for the preparation of the minutes shall be mutually agreed at the first meeting. The minutes as a minimum should include decisions made, action item responsibilities and action dates and the results of assigned actions outlined in the previous minutes and shall be distributed to all attendees, Owner Representative, and in accordance with the document distribution matrix, to be developed during the Project execution.
Periodic meetings shall be held as required for the purpose of keeping Owner fully informed of all aspects of the Work, and for reviewing execution plans, technical or financial concerns, progress status and scheduling of the Work, remedial actions, quality concerns, safety concerns, interfaces, and Owner and Contractor plans for resolving issues.
Commencing with LNTP, weekly progress meetings will be held between Owner’s Representative or his designee, and any other Persons designated by Owner, and Contractor’s Key Personnel at the appropriate Stage 3 Site location, or as agreed by the Parties, Owner or Contractor home office. Owner and Contractor shall agree on dates, standardized reports and agenda for such meetings well in advance as the Work demands.
Minutes of all progress-related meetings (including weekly and monthly progress meetings) shall be prepared by Contractor (unless otherwise agreed by Owner) and sent to Owner in electronic format within five (5) Business Days following the meeting. The contents of the minutes shall be subject to review at the next weekly progress meeting. The format for the preparation of the minutes shall be mutually agreed at the first meeting. The minutes as a minimum should include decisions made, action item responsibilities and action dates and the results of assigned actions outlined in the previous minutes and shall be distributed to all attendees, Owner Representative, and in accordance with the document distribution matrix, to be developed during the Project execution.
8.7 Monthly Progress Reports
Commencing with LNTP, Contractor shall provide a written Monthly Progress Report to Owner no later than ten (10) Days after the end of each Month, and the Monthly Progress Report shall cover activities up through the preceding the Month in which the Monthly Progress Report is issued. The Monthly Progress Report shall be provided in MS Word format. Contractor shall provide Owner with the number of copies of such reports and shall arrange for the distribution thereof as Owner may reasonably request.
Commencing with LNTP a progress meeting shall be held each Month by Contractor at the Stage 3 Site or at an alternate site mutually agreeable to Owner and Contractor and at a mutually agreeable time, for the purpose of reviewing with Owner the Monthly Progress Report issued during such Month.
Contractor shall provide Monthly Progress Reports in a form reasonably acceptable to Owner which will indicate, at a minimum:
Commencing with LNTP, Contractor shall provide a written Monthly Progress Report to Owner no later than ten (10) Days after the end of each Month, and the Monthly Progress Report shall cover activities up through the preceding the Month in which the Monthly Progress Report is issued. The Monthly Progress Report shall be provided in MS Word format. Contractor shall provide Owner with the number of copies of such reports and shall arrange for the distribution thereof as Owner may reasonably request.
Commencing with LNTP a progress meeting shall be held each Month by Contractor at the Stage 3 Site or at an alternate site mutually agreeable to Owner and Contractor and at a mutually agreeable time, for the purpose of reviewing with Owner the Monthly Progress Report issued during such Month.
Contractor shall provide Monthly Progress Reports in a form reasonably acceptable to Owner which will indicate, at a minimum:
1. Narrative summary of progress;
2. A description, as compared with the Project Schedule and CPM Schedule and Takt plan, of engineering, procurement, construction, commissioning, and testing status including actual percentage complete versus planned percentage complete, document status, significant activities accomplished during the reporting Month, significant activities planned for the current Month and current estimated dates on which Substantial Completion of __ shall be achieved;
3. Summary of Milestones planned and actually completed during the covered Month;
4. Change Orders pending and approved;
5. Description of any problems (including any occurrence of which Contractor is aware that could reasonably be expected to increase the cost of the Project or delay Substantial Completion of Subproject 5 beyond the Substantial Completion Date) and summary of plans for resolution;
6. A description of the status of the Contractor’s Permits, including the dates of Contractor’s applications submitted or to be submitted and the anticipated dates of actions by Governmental Instrumentalities with respect to such Permits;
7. A description of reportable environmental, health and safety incidents as well as any unplanned related impacts, events, accidents, reported near misses or issues that occurred during the reporting period;
8. A description of all safety and security issues;
9. A description of quality assurance activities;
10. Progress photos showing representative portions of the Stage 3 Site and the Work, including completed Milestones, with a description of the photograph and the date taken; and
11. All applicable information reasonably required by ___ and other Governmental Instrumentalities as identified in Section 9.0.
2. A description, as compared with the Project Schedule and CPM Schedule and Takt plan, of engineering, procurement, construction, commissioning, and testing status including actual percentage complete versus planned percentage complete, document status, significant activities accomplished during the reporting Month, significant activities planned for the current Month and current estimated dates on which Substantial Completion of __ shall be achieved;
3. Summary of Milestones planned and actually completed during the covered Month;
4. Change Orders pending and approved;
5. Description of any problems (including any occurrence of which Contractor is aware that could reasonably be expected to increase the cost of the Project or delay Substantial Completion of Subproject 5 beyond the Substantial Completion Date) and summary of plans for resolution;
6. A description of the status of the Contractor’s Permits, including the dates of Contractor’s applications submitted or to be submitted and the anticipated dates of actions by Governmental Instrumentalities with respect to such Permits;
7. A description of reportable environmental, health and safety incidents as well as any unplanned related impacts, events, accidents, reported near misses or issues that occurred during the reporting period;
8. A description of all safety and security issues;
9. A description of quality assurance activities;
10. Progress photos showing representative portions of the Stage 3 Site and the Work, including completed Milestones, with a description of the photograph and the date taken; and
11. All applicable information reasonably required by ___ and other Governmental Instrumentalities as identified in Section 9.0.
8.8 Quarterly Executive Progress Reports
Commencing at LNTP, within fifteen (15) Days after the end of each quarter, Contractor shall provide Owner an executive progress report (“Executive Progress Report”) suitable for presentation to Owner’s executive management and shareholders in a form reasonably acceptable to Owner. These reports will be presented to Owner and discussed at a progress meeting to be held between Contractor Key Personnel and Owner Representative or his designee and any other Persons designated by Owner, every three (3) Months. The Executive Progress Reports will include:
Commencing at LNTP, within fifteen (15) Days after the end of each quarter, Contractor shall provide Owner an executive progress report (“Executive Progress Report”) suitable for presentation to Owner’s executive management and shareholders in a form reasonably acceptable to Owner. These reports will be presented to Owner and discussed at a progress meeting to be held between Contractor Key Personnel and Owner Representative or his designee and any other Persons designated by Owner, every three (3) Months. The Executive Progress Reports will include:
1. Narrative summary of progress;
2. Update of the status of the Project, including a high level summary schedule depicting current progress and projected Substantial Completion of __;
3. Progress photographs and other illustrations; and,
4. Description of any problems and summary of plans for resolution.
2. Update of the status of the Project, including a high level summary schedule depicting current progress and projected Substantial Completion of __;
3. Progress photographs and other illustrations; and,
4. Description of any problems and summary of plans for resolution.
8.9 Contractor Deliverables –Not included in this example–
Section 2: Project Controls
CPM Controls:
1. CPM schedule will include start dates, intermediate milestones, and finish milestones.
2. CPM schedule will include phase summaries, sequence summaries within phases, or replicate the Takt plans for each phase in addition to non-repetitive sequences that tie into the overall network.
3. CPM schedule will enable the team to track and monitor the critical flow path from the start of the project to the end.
4. CPM schedule will trigger the creation of a recovery schedule if the overall project float is behind ten (10) days or more, or if any phase or non-repetitive sequence is behind ten (10) days or more.
5. CPM schedule Critical Flow Path will identify work for which additional time and money is to be provided for delays not a part of the contractor’s responsibility and listed in the agreement.
6. CPM schedule will not:
1. CPM schedule will include start dates, intermediate milestones, and finish milestones.
2. CPM schedule will include phase summaries, sequence summaries within phases, or replicate the Takt plans for each phase in addition to non-repetitive sequences that tie into the overall network.
3. CPM schedule will enable the team to track and monitor the critical flow path from the start of the project to the end.
4. CPM schedule will trigger the creation of a recovery schedule if the overall project float is behind ten (10) days or more, or if any phase or non-repetitive sequence is behind ten (10) days or more.
5. CPM schedule Critical Flow Path will identify work for which additional time and money is to be provided for delays not a part of the contractor’s responsibility and listed in the agreement.
6. CPM schedule will not:
1. Lock in the sequence to be followed by the contractor prescriptively.
2. Restrict the contractor from using phase buffers to control the work and absorb delays.
3. Restrict the use of Takt planning or Takt control.
4. Create or identify a critical path that runs through detailed activities for the purpose of restricting the contractor from an approved Time Impact Analysis.
5. Be created with a deliverable-based or phase-based Work Breakdown Structure. The schedule will be created with a Location-based Work Breakdown Structure.
2. Restrict the contractor from using phase buffers to control the work and absorb delays.
3. Restrict the use of Takt planning or Takt control.
4. Create or identify a critical path that runs through detailed activities for the purpose of restricting the contractor from an approved Time Impact Analysis.
5. Be created with a deliverable-based or phase-based Work Breakdown Structure. The schedule will be created with a Location-based Work Breakdown Structure.
Force trade stacking or burdening or unreasonable acceleration in the form of overtime or extended workdays. In short, the schedule will not push people for the recovery of the schedule.
Takt Controls:
1. The entire project will be broken into properly leveled zones.
2. The entire project will have zones proportioned according to the proper phase of the project and be within the Macro or Norm level range according to the measurement of the Realized Flow Potential.
3. All repetitive sequences will be detailed in a Takt phase with a stagger, trade flow, and staggered finish.
4. Each Takt phase will have appropriate buffers to cover and manage the risks and anticipated delays for the phase.
5. Takt phases will comply with the Efficiency, Value, and Stability parametric.
6. Takt phases will be monitored daily for constraints and constraints will be adjusted and reflected on the Takt plan to get trades more perfectly:
1. The entire project will be broken into properly leveled zones.
2. The entire project will have zones proportioned according to the proper phase of the project and be within the Macro or Norm level range according to the measurement of the Realized Flow Potential.
3. All repetitive sequences will be detailed in a Takt phase with a stagger, trade flow, and staggered finish.
4. Each Takt phase will have appropriate buffers to cover and manage the risks and anticipated delays for the phase.
5. Takt phases will comply with the Efficiency, Value, and Stability parametric.
6. Takt phases will be monitored daily for constraints and constraints will be adjusted and reflected on the Takt plan to get trades more perfectly:
1. Working the SAME long-term plan.
2. Going the SAME direction.
3. Moving in the SAME sequence.
4. Providing the SAME amount of value (energy or effort) to each zone.
5. Doing the SAME amount of work or value in each zone.
6. Going the SAME speed the SAME distance apart.
7. Receiving all needed resources to perform the work on time.
8. Being on the SAME team.
9. Working toward the SAME short-interval plan.
10. Giving the SAME level of respect and input as general.
11. Flowing without stops and restarts.
2. Going the SAME direction.
3. Moving in the SAME sequence.
4. Providing the SAME amount of value (energy or effort) to each zone.
5. Doing the SAME amount of work or value in each zone.
6. Going the SAME speed the SAME distance apart.
7. Receiving all needed resources to perform the work on time.
8. Being on the SAME team.
9. Working toward the SAME short-interval plan.
10. Giving the SAME level of respect and input as general.
11. Flowing without stops and restarts.
7. If constraints are slowing the progress of the project the following solutions will be considered before adding labor, money, or materials above needed levels:
1. Adjust Takt zones.
2. Adjust Takt time.
3. Adjust work packaging (how work is grouped by zone).
4. Adjust the work sequence.
5. Level labor counts and slightly adjust crew composition.
6. Optimize trade processes to be efficient.
7. Optimize zone configuration for ideal flow.
8. Adjust the number of zones per Little’s Law.
9. Increase labor productivity by increasing capability.
10. Reduce variation.
11. Align the plan to focus more on one-process flow.
12. Improve standard work.
13. Adjust the site configuration.
2. Adjust Takt time.
3. Adjust work packaging (how work is grouped by zone).
4. Adjust the work sequence.
5. Level labor counts and slightly adjust crew composition.
6. Optimize trade processes to be efficient.
7. Optimize zone configuration for ideal flow.
8. Adjust the number of zones per Little’s Law.
9. Increase labor productivity by increasing capability.
10. Reduce variation.
11. Align the plan to focus more on one-process flow.
12. Improve standard work.
13. Adjust the site configuration.
8. Takt trains will be leveled from Takt wagon to Takt wagon.
9. Materials will be brought to the place of work Just-in-Time.
10. Each Takt wagon will have buffers.
11. Delays will be considered when:
9. Materials will be brought to the place of work Just-in-Time.
10. Each Takt wagon will have buffers.
11. Delays will be considered when:
1. Added variation is experienced on the project due to owner changes and delays.
2. The project team is overburdened due to owner changes and delays.
2. The project team is overburdened due to owner changes and delays.
12. Delays will be absorbed using the following methods if possible. If they are not possible, an extension will be considered by the owner.
1. Stop the takt phase & swing to workable backlog.
2. Stop the takt phase, wait, & prepare.
3. Pull the delayed work out of the takt plan & onto a separate pull plan or scrum board.
4. Pull the car out of the takt train & onto its own takt time.
5. Recover within the wagon or box car.
6. Swarm the delay with swing capacity.
7. Delay an individual train. Be careful not to trade stack.
2. Stop the takt phase, wait, & prepare.
3. Pull the delayed work out of the takt plan & onto a separate pull plan or scrum board.
4. Pull the car out of the takt train & onto its own takt time.
5. Recover within the wagon or box car.
6. Swarm the delay with swing capacity.
7. Delay an individual train. Be careful not to trade stack.
13. The Norm-level Takt plan will not:
1. Be planned on a 5-day Takt time as a default.
2. Use weekends as the Takt time indicator.
2. Use weekends as the Takt time indicator.
14. Owner is not allowed at any time to direct a recovery to the schedule if it creates any of the following conditions:
1.Fatigue from work conditions.
2. Workers being forced to work beyond training.
3. Workers working with a lack of needed resources.
4. Workers having a lack of breaks.
5. Work having a lack of buffers within Wagons, Sequences, and Phases.
6. Workers being pushed.
7. Workers going too fast.
8. Workers working too much overtime.
9. Workers having too many areas to work in.
10. Work being stacked.
2. Workers being forced to work beyond training.
3. Workers working with a lack of needed resources.
4. Workers having a lack of breaks.
5. Work having a lack of buffers within Wagons, Sequences, and Phases.
6. Workers being pushed.
7. Workers going too fast.
8. Workers working too much overtime.
9. Workers having too many areas to work in.
10. Work being stacked.
Section 3: Takt Formulas
Takt control will be based on the following formulas:
Section 4: Project Scheduling Overview
The following is a summary of how the system would be operated pairing CPM and Takt.
Step 1: I would make CPM manage only Phases & Sequences.
If CPM is a contract requirement that cannot be negotiated, transition CPM to be a level 2 schedule that only summarizes phases and sequences. CPM as a system was designed to be very high level and track the critical path through phases and sequences only anyway. This can be done by summarizing the phases or the sequences that are governed by Takt on a Takt rhythm.
Image showing CPM at a summary level.
It can summarize them as phases.
Image showing a CPM phase summary.
And it can summarize them as sequences.
Image showing a CPM sequence summary.
The phase and sequence summaries would include buffers, respect the line of balance of the phase, and always have a rhythm that supported trade flow or confirmed separate resources for any stacking of activities, but it would never show level 3, 4, or 5 detail—it would only show the summaries.
The Takt plan would show the sequences, zones, buffers, and trade flow with the phase or simply represent a single sequence itself.
Image showing Takt schedule view.
So, essentially, the schedule would be based on Takt and be summarized in CPM (if necessary), and the critical path would identify which phases and individual sequences were critical to the project. It would become a critical flow path.
Section 5: Project Delays
Definitions:
- Start Date or NTP Milestone: Date which is specified as the start date per the contract.
- Substantial Completion Milestone: Date which is specified as the date of temporary occupancy by the contract.
- Intermediate Milestone: Date marking a key accomplishment in the schedule that has significance to the project team and owner.
Non-repetitive Sequence: This is a sequence of work that has only one zone.
- Phase: a phase is a group of a single Takt train or multiple Takt trains that run through the same zones.
- Line of Balance (Not like manufacturing): This shows the relationship between Takt time and the number of zones as the speed of trade flow. It shows the rate of throughput for a phase. If there are multiple trains the LOB is the slowest trade or the largest pace setting trade.
- Phase Sequence: The repetitive sequence in a phase that represents the workflow duration for the work.
- Buffers: A duration of time used as a buffer to absorb delays in a project schedule from executing work, not to absorb design or owner delays.
- Interdependence Ties: Ties between phases that symbolize a connection.
- Trade stacking: This is the phenomenon that occurs when too many subcontractors (or sub trades) have been scheduled to work on a given area of a construction project, simultaneously.
- Trade burdening: This is the phenomenon that occurs when subcontractors (or sub trades) have been scheduled to work in too many areas on a construction project at the same time.
Process for showing or submitting a delay:
1. Ensure your Takt schedule is current and correct for the following:
1. Start date
2. Current date
3. Substantial completion date
4. Phase sequences
5. Phase buffers
6. The phase LOB
7. Interdependence ties
2. Current date
3. Substantial completion date
4. Phase sequences
5. Phase buffers
6. The phase LOB
7. Interdependence ties
2. Identify what impact the delay has on the project by showing it in the schedule without trade stacking or trade burdening.
3. Ask the following questions to see if there is a way to absorb it:
1. Can the team use a phase buffer?
2. Can the team do any of the typical approaches?
2. Can the team do any of the typical approaches?
1. Stop the takt phase & swing to workable backlog.
2. Stop the takt phase, wait, & prepare.
3. Pull the delayed work out of the takt plan & onto a separate pull plan or scrum board.
4. Pull the car out of the takt train & onto its own takt time.
5. Recover within the wagon or box car.
6. Swarm the delay with swing capacity.
2. Stop the takt phase, wait, & prepare.
3. Pull the delayed work out of the takt plan & onto a separate pull plan or scrum board.
4. Pull the car out of the takt train & onto its own takt time.
5. Recover within the wagon or box car.
6. Swarm the delay with swing capacity.
3. Can the team stack the sequences and procure additional resources to complete the work?
4. If all possible strategies have been exhausted, then a Time Impact Analysis would be created with the following components:
1. Summary of the impact.
2. Printout of the entire schedule.
3. Window showing the impact and how it affects the end date.
4. Mitigation methods the project team has attempted to fix the issue.
5. An analysis of the critical flow path.
6. Description of requested time and cost.
7. A list of all other known options to mitigate the problem.
2. Printout of the entire schedule.
3. Window showing the impact and how it affects the end date.
4. Mitigation methods the project team has attempted to fix the issue.
5. An analysis of the critical flow path.
6. Description of requested time and cost.
7. A list of all other known options to mitigate the problem.
5. The time impact analysis review would show the impact and the critical flow path after the impact, and each of the following reviews would be done to verify the critical flow path past the delay:
1. A review of the dependence of the delay on successor activities, work packages, and wagons.
2. A review of the LOB for all phases. The realized flow potential percentage for all phases must be between 45% and 100% for it to be considered optimized.
3. A review of all base sequences in all phases to make sure they have been coordinated, parallelized, and optimized for accurate durations.
4. A review will be done of all phase buffer durations to ensure there is a logical relationship between the anticipated normal risks of the phase and the number of buffers for that phase. If there are more buffers than needed, they must be removed to be considered critical.
5. If the connection between the start or NTP milestones, non-repetitive sequences, lines of balance, phase sequences, buffers and interdependence ties to the substantial completion milestone are confirmed to be reasonable and within the specified parameters, the delay shall be considered reasonable.
2. A review of the LOB for all phases. The realized flow potential percentage for all phases must be between 45% and 100% for it to be considered optimized.
3. A review of all base sequences in all phases to make sure they have been coordinated, parallelized, and optimized for accurate durations.
4. A review will be done of all phase buffer durations to ensure there is a logical relationship between the anticipated normal risks of the phase and the number of buffers for that phase. If there are more buffers than needed, they must be removed to be considered critical.
5. If the connection between the start or NTP milestones, non-repetitive sequences, lines of balance, phase sequences, buffers and interdependence ties to the substantial completion milestone are confirmed to be reasonable and within the specified parameters, the delay shall be considered reasonable.
