Guideline to develop and review baseline schedules Part 1: The Planning Process

1. Planning and Scheduling Construction Projects
Guideline to develop and review baseline schedules
Part 1: The Planning Process
Prepared by Alberto Sanchez 1

2. Alberto Sanchez
BEng, MsCLog, MIntBus, GradCertEnSt
Alberto has over 20 years of experience delivering capital
projects with values from $100 million to over $10 billion in
Asia‐Pacific, Middle East, Europe and Central Asia and Latin
America in the private and public sector. He has worked
across different industries including oil and gas, chemicals,
utilities and infrastructure throughout all project phases
(feasibility studies through to commissioning) as project
controls manager, head of project controls, planning manager
and head of capital projects for international oil companies,
E&C contractors and consulting firms
2
Alberto holds a bachelor degree in civil engineering, master degree in logistics
and operations, master degree in business and postgraduate in energy studies
from recognised Australian universities. He is often requested as a keynote
speaker at major companies and industry conferences worldwide on
planning/scheduling, risk management and modular construction.
He is always interested in hearing from former colleagues, clients, or just
interesting folk, so feel free to contact him

3. Contents
• Part 1: The Planning Process
• Common planning problems
• The planning and scheduling process
• The schedule basis
• Productivity rates and construction durations
• Resource loaded schedules and resource leveling
• Some factors impacting the baseline schedule
• Part 2: Schedule Assurance Review
• Schedule quality review
• Schedule risk review
• Schedule benchmark review
• Conclusion 3
Prepared by A. Sanchez

4. Common planning problems
Pre‐Award Post‐Award
Bid / No‐Bid Phase Bid Phase Initiation Phase Execution Phase
• Schedule benchmark is not
applicable or incorrect
(e.g. different country)
• Proposal schedule is
developed without clear
execution strategies
• Proposal schedule does
not fully reflect the project
scope
• Failure to develop
unbiased proposal
schedules (over optimistic
schedule)
• Proposal schedule is
developed by
planners/schedulers with
limited experience
• Durations are estimated
without key info such as
quantities, local content,
construction methods, etc.
• Lack of centralised
database with productivity
rates and project historical
data
• Poor identification and
quantification of schedule
risks and opportunities
during the proposal
schedule development
• Baseline schedule does not
reflect the final negotiated
scope
• Poor identification and
quantification of schedule
risks and opportunities
during the baseline
schedule development
• Baseline schedule is
developed by
planners/schedulers with
limited experience
• Difficulties to transfer
schedule liabilities to
subcontractors and
suppliers
• Lack of knowledge and/or
understanding of
contractual obligations
• Delay in payment
milestones leading to
negative project cash flows
• Extra costs to avoid
schedule penalties (e.g.
overtime, additional
workforces, extra
supervision, etc.)
• Difficulties to demonstrate
valid extension of time
claims to clients
• Lack of centralised
database with productivity
rates and project historical
data
Prepared by A. Sanchez
4

5. The planning process
Poor planning is project management mistake
number one”…Tom Mochal
5
Planning Scheduling
Prepared by A. Sanchez

6. Planning vs. Scheduling
• Do you know the difference between planning and
scheduling?
• Many companies think that the two are the same
• Planning should always be before scheduling
• Before we attempt to develop our proposal or baseline
schedule, we must have a clear understanding of the
project plan
6
Planning Scheduling Baseline
Prepared by A. Sanchez

7. The planning and scheduling
process
Prepared by A. Sanchez
7

8. The schedule basis (1 of 3)
Before developing the proposal or baseline schedule important elements
such as assumptions, exclusions, constraints, etc. must be defined and
understood. These elements form the schedule basis, such as:
• Sectors of construction or industry – e.g. oil & gas production facilities,
chemical plant, power plant, highways and roads, etc.
• Location of the construction site(s) – e.g. distance to borrow pits and
quarry, location of labor accommodation camp, etc.
• Local codes, standards and permits
• Site access and weather restrictions – e.g. rainy season, cold weather
• Temporary construction activities – e.g. temporary access roads,
temporary utilities, relocation of existing overhead or underground lines
• Construction priorities, logic and sequences
• Interfaces with existing facilities in operation – e.g. revamps,
shutdowns, modernisation, expansions
• Interfaces with other contractors – e.g. site preparation, drilling, utilities
Prepared by A. Sanchez
8

9. The schedule basis (2 of 3)
• Interfaces with local communities and regulatory bodies – e.g. traffic
and local roads, noise levels, etc.
• Working calendars – e.g. 6‐day calendar, 7‐day calendar, crew calendars,
weather calendars, rotation calendars, public holidays
• Construction methods and procedures – e.g. modular components, stick‐
built or traditional, prefabricated elements, pre‐cast concrete
• Special construction equipment requirements – e.g. heavy‐lift cranes,
barges, pipelayer, concrete batch plant, etc.
• Expected productivity rates (NORMs)
• Labor requirements – e.g. local content laws, labor union requirements
• Labor availability and possible overtime, rosters
• Construction subcontract arrangements
• Establish construction camp, material laydown area and storage
facilities
• Completion of approved drawings and design documents for
construction
Prepared by A. Sanchez
9

10. The schedule basis (3 of 3)
• Material and equipment deliveries
• Manufacturer or supplier scope – e.g. on‐site assembly, transportation,
preservation and storage, supervision, site testing
• Fabrication shop versus field fabrication
• Safety requirements – e.g. confined spaces
• Protection of completed work(s)
• Client requirements – e.g. hold points and key inspection dates
• Others
Prepared by A. Sanchez
10

11. Different construction sectors
Productivity rates, design codes, safety and quality
requirements, construction techniques, legal aspects, approval
processes and other factors can vary dramatically depending
on the sector for which the construction is required.
Prepared by A. Sanchez
11
Oil & gas
production
facilities
Textile mills Chemical plants Pharmaceutical
plants
Steel / aluminum
mills
Power plants
Manufacturing
facilities
Food processing
plants
Refineries Heavy
construction
Civil and
infrastructure
Building and
residential
Plant
upgrade/retrofit

12. Construction priorities, logic
and sequences
Before developing the schedule, other key planning elements
must be defined such as:
• Priorities or phases – design phase, temporary construction
phase, early production phase, pre‐shutdown phase, pre‐
commissioning phase, etc.
• Work Breakdown Structures (WBS) – the project schedule
must be broken down into its component parts (e.g. process
unit, utilities, storage, etc.) and/or work packages (e.g.
substructure works, mechanical works, piping works, electrical
works, etc.)
• Logic and sequences – construction activities must follow a
determined logic to deliver the project in the right sequence
depending on the proposed construction method(s)
Prepared by A. Sanchez
12

13. Construction priorities, logic
and sequences
• Work Breakdown Structures (WBS)
Prepared by A. Sanchez
13
Example: WBS or work
packages of industrial
process plant
1000
Industrial Plant
1000
Utilities
1100 ‐ Potable water
1200 ‐ Waste water
1300 ‐ Electrical
1400 ‐ Plant air
2000
Storage and Handling
2100 ‐ Warehouse
2200 ‐ Handling
2300 ‐ Chemicals
3000
Process
310 ‐ Process train
3200 ‐ Process
buildings
3300 ‐ Product storage
4000
Support
4100 ‐ Office and
admin buildings
4200 ‐ Roads and
carparks
4300 ‐ Landscape

14. Construction priorities, logic
and sequences
Prepared by A. Sanchez
14
Example: construction
sequence of industrial
process plant

15. Labor productivity rates
• Labor productivity rate is the number of labor hours
(work effort) required to complete a defined
construction activity (NORM or benchmark)
• Each productivity rate is a typical or average number of
labor hours required by the group of all individuals (i.e.
crew) associated with the construction activity
• Base productivity rate is adjusted by factors such as:
labor density, facility complexity, overtime, weather,
shifts, labor quality, labor availability, greenfield vs.
brownfield, elevated work, geographic location, security,
etc.
• A table should be provided in the schedule basis
showing the productivity rate applied for each type of
work (e.g. piping works, concrete works, steel works, etc.)
Prepared by A. Sanchez
15

16. Labor productivity rates
• Comparison of labor productivity in different countries
Prepared by A. Sanchez
16
COUNTRY
LABOR PRODUCTIVITY RANGE (*)
GOOD AVERAGE POOR
Australia 1.05 1.20 1.50
Brazil 1.30 2.25 2.85
India 1.75 2.30 2.80
Indonesia 2.50 2.80 3.20
Iraq 2.00 ‐ 3.50
Nigeria 1.75 2.25 3.35
Russia 1.25 1.75 2.25
South Africa 1.20 1.40 1.95
South Korea 0.95 1.20 1.65
Azerbaijan 1.50 ‐ 1.85
Kazakhstan 2.00 ‐ 3.00
* Source: Global Construction
Cost and Reference Yearbook.
2015 Annual Edition

17. The influence of location on productivity
and construction durations
• Example: comparison of similar industrial plant at
different locations
Prepared by A. Sanchez
17

18. Construction durations
Estimating construction activity durations (key terms)
• Effort‐driven duration – estimate based on the work volume or
bill of quantities (BOQ) and expected productivity rate
(duration = work quantity / productivity rate)
• Fixed‐duration – estimate based on amount of calendar time
available for the activity completion (e.g. shutdown window,
track possession, weather window)
• Forward schedule – from project start to finish, calculate the
earliest each activity can start and finish according to the
sequence of work and the duration of the predecessor activity
• Back‐end driven schedule – working backward from project
finish to start, calculate the latest each activity must start and
finish to meet the project end date
Prepared by A. Sanchez
18

19. Construction durations
Estimating effort‐driven durations
Prepared by A. Sanchez
19

20. Construction durations
• Example: estimated duration of piping work for a new
industrial plant in Uzbekistan
Prepared by A. Sanchez
WBS
Plant Area
Quantity
(diameter‐
inches)
Quantity
(Work Split)
Total Crews
Productivity Rates per
Crew
(diameter‐inches per day)
Duration
(in days)
Shop Site Shop Site Shop Site Shop Site
Utilities 54,720 DI 33,304 DI 16,416 DI 12 14 16 6 173 195
Storage 39,520 DI 27,664 DI 11,856 DI 12 12 14 4 165 247
Process 54,720 DI 38,304 DI 14,416 DI 12 12 14 4 228 300
Piping Crew
1 Welder
2 Fitter(s)
1 Helper
Estimated number of crews
or workers
(based on labor density values,
labor resources requirements,
labor availability, etc.)
Productivity rate
Estimated duration
Estimated quantity (BOQ)
Location of construction site
Quantity (BOQ)
number of crews x productivity rate per crew

21. Resource loaded schedules
• Resource loaded schedule – consists of a timeline
with details on assigned resources (labor,
construction equipment, tools and key quantities)
• Manpower plan – this plan focuses on estimating
the size of workforce, division in disciplines and
scheduling the deployment of required manpower
• Resource leveling – as defined by PMBOK “is a
project management technique in which start and
finish dates are adjusted based on resource constraints
with the goal of balancing demand for resources with
the available supply”
Prepared by A. Sanchez
21

22. Schedules under limited
resources
• The resource leveling process
Prepared by A. Sanchez
22
Assign resources to each construction activity in the
schedule (i.e. labor, construction equipment)
Produce resource histograms from resource loaded
schedule
Compare required resources vs. maximum possible
amounts of resources (e.g. safety density factors,
labor availability, possible overtime, rosters, etc.)
Resolve resource conflicts (e.g. overcrowded areas,
shortage of skilled labor)

23. Schedules under limited
resources
• Resource leveling example
Prepared by A. Sanchez
23

24. Schedules under limited
resources
• Resource leveling example
Prepared by A. Sanchez
24

25. Resource loaded schedules
Benefits of resource loaded schedules and resource
leveling
• Determine dates for resources mobilisation and
demobilisation
• Balanced resources, reducing over allocations or
unnecessary overtimes
• Validate estimated construction durations
• Sanity check of durations, logic and assigned
resources
Prepared by A. Sanchez
25

26. Some factors impacting the
baseline schedule
Prepared by A. Sanchez
26
PROJECT SPECIFIC FACTORS
1 Relevant design and/or construction codes and specifications
2 Completion date (normal schedule or fast track schedule*)
3 Contractual issues / type of contract / alliances (JV)
4 Payment terms / contract milestones
5 Liquidated damages / consequential damages clauses
PROCUREMENT FACTORS
1 Long lead items – equipment or materials (free issue)
2 Freight and transport issues
3 Vendor assistances
4 Warehousing (equipment and material preservation)

27. Some factors impacting the
baseline schedule
Prepared by A. Sanchez
27
CONSTRUCTION ISSUES
1 Location of facility / access to site
2 Weather issues (cold or hot climate, weather windows)
3 Expected productivity of workforce
4 Labor requirements (local content, union, etc.)
5 Labor availability and possible overtime, rosters
6 Establish camp, temporary facilities, site fabrication facilities, laydown areas
7 Location of quarry / concrete batch plant
8 Location of borrow pits
9 Required construction permits
10 Construction method(s)
11 Special safety issues
12 Protection of the completed work

28. Contents
• The Planning Process
• Common planning mistakes
• The planning and scheduling process
• The construction plan
• Productivity rates and construction durations
• Resource loaded schedules and resource leveling
• Some factors impacting the baseline schedule
• Schedule Assurance Review
• Schedule quality review
• Schedule risk review
• Schedule benchmark review
• Conclusion 28
Prepared by A. Sanchez

29. End of Part 1:
The Planning Process
Contact:
amsanchezu@gmail.com
Prepared by A. Sanchez
29