True Concurrency in Construction: Definition and Implications.
Introduction
True concurrency refers to a situation in a construction project where two or more delays occur at the same time, and each delay is significant enough that, by itself, it would have caused a delay to the project’s completion date. True concurrency typically involves delays that directly affect the critical path, meaning that the delays overlap and each would prevent the project from finishing on time independently of the other.
In the context of construction project management, true concurrency can complicate delay claims, responsibility attribution, and contract disputes. Understanding true concurrent delays is critical for determining which party is liable and whether compensation (such as extension of time or cost claims) is warranted.
1. Key Characteristics of True Concurrent Delay
- Simultaneous Occurrence: The delays happen during the same period and overlap in time.
- Independent Events: The causes of the delays are independent of each other, typically with one delay being the responsibility of the contractor and the other being the responsibility of the owner or a third party.
- Critical Path Impact: Both delays affect the project’s critical path, meaning that each would independently delay the project’s completion if the other did not exist.
2. Example of True Concurrency
Scenario:
A contractor is building a commercial complex, and two delays occur simultaneously over a three-week period:
- Owner Delay: The owner fails to deliver critical design specifications for the building’s façade.
- Contractor Delay: The contractor faces equipment breakdowns, which prevent the continuation of foundation work.
Both the design delay (owner’s fault) and the equipment breakdown (contractor’s fault) happen at the same time and affect different critical path activities. If either of these delays had occurred on its own, it would have delayed the project by three weeks. Because both delays overlap, true concurrency exists.
3. Difference Between True Concurrency and Other Concurrent Delays
In most cases of concurrent delays, one delay may affect the critical path while the other does not. For instance, if a contractor’s delay impacts a critical path task but the owner’s delay only affects a non-critical task, this is still considered concurrent delay, but not true concurrency.
True concurrency is stricter: for it to exist, all delays must be independently capable of affecting the project’s critical path, meaning they both independently push out the project completion date.
4. Implications of True Concurrency
True concurrent delays pose significant challenges when determining who is responsible for project delays and whether parties are entitled to extensions of time or compensation. Common implications include:
- Shared Responsibility: Since both parties are at fault, neither party can usually hold the other responsible for the entire delay. Typically, the contractor and owner may share responsibility for the delay.
- Extension of Time (EOT): In true concurrency, the contractor is often entitled to an extension of time for the duration of the delay caused by the owner. However, because the contractor also contributed to the delay, they are generally not entitled to compensation for additional costs (such as liquidated damages or delay penalties).
- Delay Damages: True concurrency can prevent the contractor from claiming additional costs caused by delays, as both the contractor and the owner are responsible. Similarly, the owner cannot impose penalties on the contractor for delays that the owner contributed to.
5. How True Concurrency Affects Delay Analysis
In delay analysis, particularly in dispute resolution, true concurrent delays are challenging to assess. Common delay analysis techniques include:
A. Window Analysis
This method breaks the project into time windows and analyzes the delays occurring in each period. True concurrency can be identified by reviewing periods where multiple independent delays occur, each affecting the critical path.
B. Time Impact Analysis
This method involves inserting delays into the project schedule to evaluate their impact on the completion date. In true concurrency cases, both delays would push the completion date independently, confirming the existence of true concurrency.
C. Apportionment of Delay
If true concurrency is identified, delay apportionment may be used to allocate responsibility proportionally between the contractor and the owner. This could result in an extension of time but no financial compensation for either party.
6. How to Manage True Concurrent Delays
While true concurrency can’t always be avoided, managing it effectively can reduce its impact on the project. Here are some strategies:
- Accurate Record Keeping: Keeping detailed records of project activities, communications, and delays is essential for proving the cause and timing of delays.
- Clear Communication: Constant communication between the contractor, owner, and other stakeholders can help address delays early on and potentially avoid concurrent delays.
- Proactive Risk Management: Identifying potential delays early and developing mitigation strategies (e.g., resource reallocation or schedule adjustments) can minimize the occurrence of true concurrency.
- Contractual Clarity: Clear terms in the contract regarding how to handle concurrent delays can help reduce disputes. Some contracts include provisions on how to allocate responsibility and determine compensation when true concurrent delays occur.
7. Legal Considerations and Disputes
True concurrent delays are a common source of disputes between contractors and owners, particularly regarding extensions of time and compensation claims. In legal proceedings, the following considerations are important:
- Burden of Proof: Each party must provide evidence to prove the cause and extent of the delays they claim to be responsible for or affected by.
- No Cost Compensation for Concurrent Delays: Many jurisdictions and contracts follow the principle that if concurrent delays exist, the contractor is entitled to an extension of time but not to financial compensation (e.g., delay costs) unless the contract explicitly states otherwise.
- Contract Terms: The contract should clearly define how concurrent delays are handled, including whether the contractor is entitled to an extension of time and under what circumstances.
Conclusion
True concurrency in construction projects occurs when two or more independent delays happen simultaneously, each affecting the critical path and capable of delaying the project on its own. Unlike standard concurrent delays, true concurrency requires both delays to significantly impact the project’s completion. This situation presents unique challenges in terms of responsibility, delay claims, and compensation. Proper management, accurate record-keeping, and clear contractual provisions can help mitigate the impact of true concurrent delays on a construction project.