The Risks & Implications of Forecasting an Early Completion in a Baseline Schedule
The ownership of total float is often not explicitly defined in construction contracts or subcontracts but can easily become the source of time-related disputes. In construction claims and disputes, it is widely accepted that the total float does not belong to the owner or contractor, but rather the project. AACE International (AACE) Recommended Practice (RP) 29R-03, states that the majority view is that total float, a shared commodity, is available for consumption on a ‘first come, first served’ basis. However, for projects that end up in dispute, the ‘first come, first served’ basis and ownership of total float could possibly increase the contractor’s risk and inability to recover time-related damages. The purpose of this white paper is to discuss a contractor’s risk associated with forecasting an early completion, or including total float, in its baseline schedule from a claims and disputes perspective. In addition, the paper will discuss potential mitigation efforts that a contractor can employ to decrease risks associated with a planned early completion. Furthermore, this paper contains representative examples where the apportionment of critical path delays and the entitlement of time-related damages were impacted by the contractors’ inclusion of total float in its baseline schedules.