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Who Owns the Float?

Categories: Total Float
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Primavera SchedulingArguments over who owns the float in the project schedule are common. But unless the contract documents state otherwise, float belongs to whichever party that uses it first. This fact makes no one in particular happy, but a very smart lawyer once told me that the perfect settlement is the one that both parties regret the next day.

Sharing the float is a fair solution, although there will always be times when it seems rather inequitable. The contractor waits until the last possible moment to submit a shop drawing; now the architect is under pressure to return the shop drawing in a timely fashion. The contractor ate the float, making the review critical. But at one time this path had plenty of float. The architect is not happy being put on the spot.

Conversely, the contractor submits the shop drawing very early, but the architect sits on the shop drawing for such a long time that all the float is gone. Now the contractor has no leeway in terms of procuring the materials. Any hiccups during fabrication and delivery will mean the contractor is blamed for the delay, yet he tried so hard to stay ahead of schedule.


As a construction consultant I am caught in the middle. My contractor clients want to own the float, and so do my owner clients. Making people unhappy seems to be part of my job. Nevertheless, it is universally recognized that float belongs to the project. Either party can utilize the float while it is still up for grabs.


There is one brief period of time, however, when only the contractor owns the float. He alone decides how much float each and every activity has in the project schedule. So when is this magic moment? It is quite simple: until the original plan is published the contractor has complete control over the float. Pity then that so many contractors squander the opportunity.

The contract documents clearly give the contractor ownership of means and methods. Certainly there may be some specified sequences in the contract documents (such as for project closeout) but otherwise the contractor decides how to build the project. And this means the contractor controls the float in the original plan. He overlaps work that he feels like overlapping, or makes the work more linear because he wants to conserve resources.

In my experience roughly one-half of all activity relationships in a project schedule are discretionary. We sometimes call these “soft” relationships because the work could be sequenced more than one way. Mandatory (or “hard”) relationships, on the other hand, cannot be violated. The wall has to be built before it can be painted, for example.

When the owner reviews a project schedule only the mandatory relationships can be verified easily. The other half of all the relationships are harder to discern. Why is the contractor starting brick work on the east elevation? Does feeder conduit have to start before branch conduit? But as long as the sequence represents what the contractor intends to follow, the owner has no valid objection. It is what it is.

As with any subject there are a few caveats. I have seen some pretty strange restrictions in contract documents that do affect how logic – and therefore float – can be applied. On one of my projects there was a restriction on what percentage of activity relationships could be Finish-to-Start. Yet on another project I was instructed to use only Finish-to-Start relationships. As a master scheduler I rather resent anyone telling me how to use my tools.

Otherwise, the contractor has so many opportunities to reduce the float in the schedule. Nothing can be considered unreasonable unless it is completely unrealistic. Pour the sidewalks next to the building before starting light poles in the parking lot? Why not? Whether the same trade is involved is immaterial. It is all about hitting dates that make the contractor happy. Besides which, owners often question why activities do not start on their early start dates regardless of the available float.

There is one loophole to consider. The owner and the contractor agree to share the float, per the contract documents. This does not preclude the contractor from crafting language in his agreements with subcontractors to restrict the use of float. In other words, the contractor only has to share the float with the owner. He is not obligated to share float with subcontractors.

Starting with my first scheduling position in 1983 I was told to monitor excessive float. In some cases it is a sign of bad logic. I either had the wrong predecessor (thereby starting too early) or the wrong successor, which allowed the activity to finish late in the project. If I thought the start date was too early I would go shopping for another predecessor that was finishing later than the current predecessor. Similarly, I might look for another successor that starts earlier than the current successor.

Some of you might think this is dishonest, that I am hiding float that otherwise should be there. No, quite the opposite. I am concerned that the float is unrealistic. Who in their right mind would say to a subcontractor, “you can show up as early as March 2nd or as late as September 15th”? Such a range of dates implies uncertainty. I suspect that Primavera P6 introduced two new date columns – Start and Finish – to avoid the confusion of early versus late. Hardly anyone other than experienced schedulers truly understands the concept of float. Trust me.

So we are not “sequestering” float, which is perhaps a nicer term for hiding it. Moreover, I am not a fan of using activity constraints to reduce the float on an activity. Excessive constraints are the bane of my existence. I once spent an afternoon with a client explaining why he needed to get rid of all 150 constraints in his 175-activity schedule. He had originally contacted me because he could not find the critical path. Duh!

When I conduct my final review of the project schedule I consider whether the activities on the critical path make sense. Contract documents sometimes restrict the percentage of activities that can be on the critical path (hint: add more non-critical activities such as submittals if you have too many critical activities). But I must also consider whether activities on secondary paths have too much float. Yin Yang.

There is certainly no worse feeling than a project schedule that seems to suck up all delays due to excessive float. We should not be sharing float that does not really exist. Once the schedule is published it is simply too late to rectify this problem. The float now belongs to the project.


What Dollar General Tells Us About Planning

Categories: Critical Path, Planning, Total Float
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Primavera Scheduling

Those of you living in the United States are probably familiar with Dollar General stores. Mostly found in small towns, Dollar General stores sell a wide-variety of lower-priced items. But there is big money in this market. Dollar General currently has 14,000 stores pulling in $22 Billion a year. The CEO of Dollar General, John Vasos, received a lot of press recently on comments he made to the Wall Street Journal that caught my attention as well.

Most commentators seized upon Mr. Vasos’ comments that the U.S. economy was creating more of what they consider to be their core customer – someone making less than $40,000 a year. Dollar General is planning to build thousands of new stores and is moving into metropolitan areas that were not previously identified as their demographic (i.e. the arrive of a Dollar General store in some communities could be considered a backhanded compliment.)

There has certainly been a lot of debate in this country about the percentage of Americans who are unemployed or underemployed (working fewer hours than desired) and how to solve this problem. The disappearance of good paying manufacturing jobs has resulted in many individuals working somewhere else, but for a lot less money. The new job is also far less likely to offer a pension.

Dollar General and other similar “dollar” stores thrive by selling small quantities of items to lower-income households at prices they can afford. These households do not buy in bulk even though it would result in savings. Hence, they are more likely to run out of something and need a replacement quickly. I can buy a 32-pack of bottled water for about the price of three individual bottles at my favorite store so clearly buying in bulk makes a big difference.

But here is the quote by Mr. Vasos that really caught my attention. He was describing Dollar General’s typical customer:

“Doesn’t look at her pantry or her refrigerator and say, ‘You know, I’m going to be out of ketchup in the next few days. I’m going to order a few bottles.’ The core customer uses the last bit of ketchup at the table the night prior, and either on her way to work or on her way home picks up one bottle.”

In other words, the typical Dollar General customer is not a planner. They wait until they are out of something before they buy more. They overpay without thinking. This is not how we manage projects. We do not (CAN NOT) let ourselves run out of resources needed to complete a project. That would be an inexcusable delay. We figure out what we need and make sure sufficient quantities are on hand when it is needed.

The critical path of the project in particular is a difficult taskmaster. We must complete the amount of work we planned each and every work day. It is not good enough to complete tasks totaling 19 days during a 20-day work period. That puts us one day behind schedule. The critical path keeps us honest. I see a lot of arguments at the end of the month when the final tally is taken. “But we did so much work this month”, they will invariably say. “Not enough”, I will reply.

It takes a different mentality to be a planner. We have deadlines based on expectations of quality and scope of work. A bad plan leaves us uncertain as to where we should be at any given time. Every day is a deadline of sorts, because what we did not finish today becomes something else that must happen tomorrow. Granted, we have some leeway with non-critical activities but a recurring problem that I see on many projects is that the amount of float on a secondary task is exaggerated, thereby diminishing its importance. We reap what we schedule.

Planning is all about opportunity. We have many options during the planning stage. Some options are more attractive or feasible, and hopefully the least-expensive option generates the best result. But it can certainly be more complicated than that. The California Department of Transportation (Caltrans) utilizes an “A + B” approach on larger projects: each bidder must specify a contract duration and a price. Both numbers are considered when awarding projects. Caltrans’ experience is that A + B bids result in lower prices and fewer road usage delays.

The longer we wait to make decisions the fewer options that remain. Projects finish on time because we monitor our progress on a regular basis and implement mitigation strategies whenever slippage does occur. We do not use up float for bad reasons but rather to give ourselves flexibility. We do not allow ourselves to run out of ketchup.


Weird Negative Float

Categories: Level of Effort, Primavera P6, Total Float
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There are several settings in Primavera P6 that can have unintended consequences, but perhaps none is worse than what I am about to describe. Primavera P6 users know that negative float can be induced by putting a constraint into a schedule. A Finish On or Before constraint, for example, will generate negative float if the activity is now scheduled to finish beyond the chosen constraint date.

But can a schedule with no constraints generate negative float? A reasonable person would say “no”. After all, if there are no constraints in the schedule the project can extend to any date. So negative float is simply not possible. Who could possibly argue otherwise?

Well, I can! Because I have seen it in action. Let me set the scene. I was at the Kennedy Space Center teaching a Primavera P6 class to a NASA contractor last year when one of the class participants presented an unusual problem. His schedule had negative float but no constraints.

I was quite sure he had forgotten about the Must Finish By constraint. It does not show up in the Schedule Log and no asterisk will appear in the date columns. Nope. My client truly had no constraints in his schedule. Yet some activities had negative Total Float.

The contractor commented that all of the negative Total Float seemed to be on Level of Effort activities and nowhere else. Yet the predecessors and successors to the Level of Efforts had positive float. Huh?

This is one of those situations when I wish I still had some hair to pull. I use Level of Efforts in pretty much every schedule and have never had any problems – regardless of whether any constraints were being used. Some setting or calculation in Primavera P6 was clearly off. After some research in the Oracle Knowledge Base (Document ID 988077.1) the culprit was located.

In Primavera P6, Total Float can be calculated by one of three methods:

  • Start Float = Late Start – Early Start
  • Finish Float = Late Finish – Early Finish
  • Smallest of Start Float and Finish Float

These options are found under the Schedule Options, as seen below:

Settings for Compute Total Float

 

 

 

 

 

 

 

 

 

Right out of the box, Primavera P6 always calculates float using the middle option, Finish Float = Late Finish – Early Finish. And most users would probably not consider changing the calculation method if for no other reason than not understanding why it would make a difference. The NASA contractor had likewise always used this method of calculating float until someone decided to play with the settings. By shear luck, this happened between our training sessions at Cape Kennedy.

There are of course a lot of settings in Primavera P6 that could change the way a schedule behaves. In this situation, no one remembered changing the Schedule Options. The schedule had just been updated, but not for the first time and previously there was never a problem with the float. Seemingly overnight, the float had just gotten weird.

The NASA contractor had switched the calculation to float = Late Start – Early Start. Primavera P6 calculates float values for both the beginning and end of each activity because the values can be different whenever the relationship type is not Finish-to-Start. You probably did not know this (or even care!) but it can make a difference. But any float calculation method other than the one using late dates results in erroneous float being displayed on Level of Efforts.

In the next screenshot I am displaying a Level of Effort activity with negative float.

Level of Effort with Negative TF

 

 

 

 

 

As you can see in the Activity Details, the predecessor and successor tasks do not have negative float. But why negative float? I have an answer but not an explanation. The negative float is being calculated as the difference between the actual start date of the Level of Effort and the Data Date.

Think about it. Primavera P6 considers the Level of Effort as being behind schedule because it has an actual start date that is before the Data Date. Where else should the actual start be?

In the schedule above the Level of Effort started the day before the Data Date so it is theoretically a day behind schedule. Ridiculous, but that is how Primavera P6 is calculating the float for Level of Effort activities.

Choosing the third method of calculation, Smallest of Start Float and Finish Float is still a bad idea because a negative number would still appear on the Level of Effort. According to Oracle, Start Float and Finish Float is usually the same, but can be different on both Level of Effort and WBS Summary activities.

Why? Who knows, but it keeps me on my toes!