DR 03 Concurrency
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Transcript of DR 03 Concurrency
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Gibson Consulting Limited | Technical Papers : Dispute Resolution 03
Gibson Consulting Limited Technical Papers : Dispute Resolution
Concurrency
In t roduct ionA question that frequently arises is the method of dealing with extensions of time which may be due to
either or both of two causes, i.e. concurrency. The more complex the project the more likely that this issue
will arise.
Concurrent delays, refer to delay situations when two or more delays, regardless of the type, occur at the
same time or overlap to some degree – either of which had the delays occurred alone, would haveaffected the project completion date.
It is important to differentiate between the delaying event or cause and the delay itself. It is generally
recognised that there are times when there are delays which may be the result of different causes, but that
sometimes the causes will run at the same time or overlap. This makes it difficult to dec ide how to treat thedelay, particularly if the causes originate from different parties or the delays are of different kinds. For
example, under most forms of contract, some causes may give the contractor entitlement to an extensionof time; some causes may give the contractor entitlement to an extension of time and also loss and
expense, whilst other causes may not entitle the contractor to any extension of time or loss and expensewhatsoever.
In analysing concurrent delays, each delay should be assessed separately and its impact on other ac tivities
and the project date for completion calculated. Much will turn on the quality of planning and
programming, and record keeping. Not only will there often be several delay events running in parallel, but
there may be parallel critical paths to contend with and periods of acceleration and/or mitigation to take
into account. The contract conditions will also have to be taken into account on the analysis technique
used.
Me thod s of a ssessm en t
‘Keating on Building Contracts’ looks at a number of propositions as follows:1) The Devlin Approach; which contends that if there are two causes operating together and
one is a breach of contract, then the party responsible for the breach will be liable for theloss.
2) The Dominant Cause Approach; which contends that if there are two causes, the effective,
dominant cause is to be the deciding fac tor.
3) The Burden of Proof Approach; which contends that if there are two causes and the
claimant is in breach of contract, it is for the claimant to show that the loss was caused
otherwise than by his breach.
A further method to consider is the ‘Malmaison’ approach, which is often considered to be the leading
modern decision on concurrent delay. Disputes occurred on a hotel project in Manchester whichculminated into arbitration and subsequently ended in Court before Mr J ustice Dyson.
An agreement on concurrency was reached between the parties and this was ratified in Court by J udge
Dyson, who said in his judgment,
“ It is a greed that if there a re tw o c onc urrent c a uses of d e lay , one o f which is a re levant e vent a nd
the o ther is not , then the c ont ra c tor is ent it led to a n e xtension of t im e for the p er iod of d e lay c aused
by the re leva nt event , notwi thstand ing the c onc urrent ef fec t of the other eve nt . Thus to take a
sim p le e xam p le, if no w ork is p ossib le o n site fo r a w ee k, not o nly b ec a use o f exc ep t iona lly
inc lem ent w ea ther (a re levant eve nt ) , but a lso b ec au se the c ont ra c tor ha s a shor tage of la b our
(not a re levant eve nt ) , an d if the fa ilu re to w ork d uring that w ee k is like ly to d e lay the w orks b eyon d
the c om p le t ion d ate b y one w ee k, then i f he c onsid ers it fa ir an d rea sona b le to d o so, the a rc h itec t
is req uired to g ra nt a n extension o f t im e o f one w ee k.”
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Gibson Consulting Limited | Technical Papers : Dispute Resolution 03
Gibson Consulting Limited Technical Papers : Dispute Resolution
Therefore, by using a simple example, J udge Dyson demonstrated that if a contrac tor suffered a delay of
one week due to exceptionally inclement weather, a Relevant Event, and in the same period there was a
delay due to the contrac tor’s shortage of labour, which is not a Relevant Event. Then, if the architectconsiders it fair and reasonable to do so, he should grant an extension of time of one week; and he cannotrefuse to grant one on the grounds that the delay would have occurred anyway because of the
contractor’s shortage of labour.
A simplistic approach sometimes used is the ‘first past the post’ method. This is based on the logic that
where delays are running in parallel, the cause of delay that occurs first in terms of time will be used first to
evaluate the impact on delay to the date for completion.
‘Brom p ton Hospita l ’In a subsequent case, Royal Brompton Hospital NHS Trust v. Frederick Alexander Hammond and Others
(2000), a key issue was “concurrency”. On this issue, His Honour J udge Seymour QC distinguished between
sequential causes of delay and true concurrency, stating,“How eve r, it is, I th ink, nec essa ry to b e c lea r w ha t one m ea ns b y eve nts op erat ing c on c urrent ly. It
d oe s not m ea n, in m y jud gm ent , a situa t ion in w hic h , w ork a l rea d y be ing de laye d, le t it be
supp osed , bec a use the c ont rac tor has ha d d if fic u lty in o bta in ing suf fic ien t lab our , an eve nt oc c urs
wh ich is a Re leva n t Even t a nd wh ich , had the c on t rac to r no t b een de layed , wou ld have c aused
h im to be de laye d , b ut which in fac t , b y rea son o f the ex ist ing d e lay , m a de no d if fe renc e. In suc h a
situa t ion a lthou g h the re is a Releva nt Even t, ‘ the c om p let ion o f the Wo rks is [no t ] likely to b e d elaye d
thereb y be yond the C om ple t ion Da te ’ . The Relevant Event sim p ly has no e f fec t on the c om ple t ion
d a te . This situa tion o b viously ne e d s to b e d ist ingu ishe d from a situa tion in wh ic h, as it w e re, the w o rks
a re p roc eed ing in a reg u la r fash ion a nd on p rog ram me , when tw o th ings hap pe n , e it he r o f w h ic h
ha d i t hap pe ned on i ts ow n wo uld ha ve c a used d e lay , a nd o ne is a Relevant Event , while the o ther
is not . In suc h c irc um sta nc es the re is rea l c on c urrenc y of c a uses of d elay.”
Therefore, an important matter to be gleaned from this case and the judgment was that the matter ofconcurrency should be looked at c losely in order to determine those events which are sequential and those
which are truly concurrent.
A p rac tica l app roac h to conc u rrencyWhen faced with the problem of concurrent delays, it is always worthwhile pausing and asking whether the
delays really are concurrent; as most delays are in fact consecutive. The test is to look at the projec t’s
critica l path. Delays will generally be consecutive unless there are two or more critica l paths. On some
projects, several critical paths running in parallel is not uncommon, but even in such cases, true
concurrency is rare. Usually, after investigation it can be established that one delay occurs after the other.
Or, for example, only one delay is affecting the critical and the other delay is using up only available float,
the non-critical delay is not delaying completion of the project.
Therefore, before the question of concurrency arises at all, it must be established that there are twocompeting causes of delay operating at the same time and affecting the critical path or paths of the
project.
Complications are introduced when, for example, one delaying event is soon followed by another during
the delay caused by the first event itself, and it may be unclear as to whether the second event was
triggered by the first; or if the contractor’s obligation to mitigate delays has to be reassessed.
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Gibson Consulting Limited | Technical Papers : Dispute Resolution 03
Gibson Consulting Limited Technical Papers : Dispute Resolution
Useful g uid eline sWhere there are overlapping, or concurrent delays, the most popular guidelines are,
a. No extension of time granted when an employer responsible delay event is within a non-critical path while a contractor responsible delay (e.g. poor progress through lack of
resources) is on a critical path.
b. An extension of time is awarded when both an employer responsible delay event and a
contractor responsible delay event occur concurrently on parallel critical paths, on the basis
that either delay by itself could have prolonged the project by the same period.
However, where the delays are unequal, or where an employer responsible delay is followed by acontractor responsible delay (or vice versa) on the same or parallel critical paths, and it is unclear as to
whether the second was triggered by the first, the ‘dominant cause’ approach could help to allocate
liabilities.
Clearly, more explicit guidelines are needed based on sound principles to improve fairness, consistency andcertainty in practice which would in turn lead to better planning and control of potential project risks and
less resource wastage on acrimonious disputes if these risks eventually do materialise.
Rog er Gib son
Ma y 2010