Float Ownership - Submission and Assessment of Delay or Disruption Claims

 

Float Ownership in Construction Projects

Float ownership refers to the allocation and management of extra time available to complete an activity without causing project delays. Properly addressing float ownership ensures that delays are mitigated and responsibilities are clear.

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Types of Float Ownership

1. Contractor-Owned Float

   • The contractor reserves float to manage their activities efficiently.
   • Enables flexibility in scheduling without seeking approval from the employer.

2. Employer-Owned Float

   • The employer controls the float and allocates it to mitigate project delays.
   • Helps maintain overall project timelines by addressing critical delays.

3. Shared Float Ownership

   • Both parties can utilize the float based on mutual agreement.
   • Example:
     • The employer uses float to mitigate delays in approvals or material supply.
     • The contractor uses float to resolve scheduling conflicts or unforeseen issues.

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Submission and Assessment of Delay or Disruption Claims

Managing delays or disruptions requires structured submission and assessment of claims. Here’s the process:

1. Submission of Claims

1. Notification

   • The contractor notifies the employer about the delay or disruption.
   • Notification timelines are specified in the contract and must be adhered to.

2. Detailed Claim Submission

   • Provide a comprehensive explanation of the delay or disruption event.
   • Include supporting evidence such as:
     • Updated schedules.
     • Daily site reports.
     • Documentation of the event's impact on time and cost.
   • Clearly quantify the impacts in terms of time and cost.

3. Contractual Basis

   • Refer to relevant contractual clauses that support the claim.
   • Examples:
     • Time extensions.
     • Compensation for additional costs.

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2. Assessment of Claims

1. Causation

   • Establish a clear link between the delay/disruption event and its impact on the project.
   • Prove that the event caused the delay rather than other unrelated factors.

2. Quantification

   • Time Impact:
     • Use Critical Path Method (CPM) analysis to assess the delay’s impact on the project timeline.
   • Cost Impact:
     • Analyze financial losses caused by the disruption, such as additional labor, equipment, or material costs.

3. Mitigation

   • Evaluate measures taken by the contractor to minimize the delay's impact.
   • Examples of mitigation measures:
     • Rescheduling activities.
     • Allocating additional resources.

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Key Takeaways

• Clear float ownership agreements ensure better management of scheduling flexibility and reduce disputes.
• Timely and detailed submissions of delay claims strengthen the contractor’s position.
• Assessment focuses on causation, quantification, and mitigation to evaluate the validity and impact of claims. 

Pooja Mattapalli