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CPM Scheduling: The Contracting Officers' Guide for Risk Minimization and Claims Analysis

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There are several hundred contract management related positions in the Navys Civil Engineer Corps. Many junior and senior Contracting Officers and their representatives who serve in these positions have little to no experience with approving, monitoring and analyzing contractors construction schedules. Typically, the contractor submits an initial schedule for approval, however, due to the lack of experience and knowledge, scheduling software and computer hardware to verify schedule logic, relationships, activity content, and budgeted cost allocation, many construction schedules are approved based on their graphical appearance and the faith in the contractor to do the right thing. As required by project specifications, monthly update schedules are normally provided by the contractor, however, many of them either are updated incorrectly or dont accurately reflect the actual work sequence of the project. The current Naval Facilities Engineering Command NAVFAC guide specification provides basic guidance, however, it has proven to be an ineffective tool because of unclear and ambiguous directions and guidance. Further, many sections of this specification are obsolete or contradictory to industry standards and court rulings. Claims court journals are filled with case law examples involving suits against the Navy for schedule related issues. The American Arbitration Association has handled many arbitration and mediation cases involving these issues as well. The energy, effort, and intent demonstrated by Contracting Officers and their representatives have been sincere and noteworthy. However, their limited experience and knowledge with approving, monitoring, and analyzing construction schedules and lack of resources immediately available, have increased their risks and reduced their ability to effectively justify and defend their positions during litigation, arbitration or mediation.

Subject Categories:

  • Administration and Management
  • Logistics, Military Facilities and Supplies

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