Schedule Basis
Schedule Basis
38R-06
Acknowledgments:
Edward E. Douglas, III CCC PSP (Author)
Rodney B. Adams, CCE
Zia Akhtar
Thilak M. Bandara
Peter R. Bredehoeft, Jr. CEP
John P. Buziak, PE
Timothy T. Calvey, PE PSP
Dr. Tadashi Eguchi
Douglas A. Findley, CCC PSP
Dennis Read Hanks, PE CCE
Sanjay Kelkar
Copyright 2009 AACE, Inc.
Joseph O. Kikiowo
Yingsheng Li
Gregory N. McDowell, CCC
Bill Mendelsohn, EVP
Steven S. Pinnell, PE
Amit Sarkar
Hannah E. Schumacher, PSP
H. Lance Stephenson, CCC
Donald F. Sulzer
Manan N. Vakil, CCE EVP PSP
Ronald M. Winter, PSP
AACE International Recommended Practices
Purpose
This AACE International recommended practice is intended to provide a guideline, not to establish a
standard for documenting the schedule basis for the planning of projects. This recommended practice is
written and intended primarily for use on construction projects by the project team members and
stakeholders involved in the planning and scheduling of the project work activities. These RP guidelines
may be applicable to many other types of projects. The focus of this recommended practice is on
documenting the necessary elements of the schedule basis.
Many project individuals and groups contribute to the planning and development of the project schedule.
By documenting the schedule basis, the project team captures the coordinated project schedule
development process, which is by nature unique for most construction projects. This improves the final
quality and adds value to the project baseline schedule, which serves as the time management navigation
tool to guide the project team toward successful project completion. The schedule basis also is an
important document used to identify changes during the schedule change management process.
Background
The requirement to document the basis of the schedule has been an established procedure for several
years with many large corporations, and some federal agencies[4]. This recommended practice describes
the important elements of schedule information that may be included to document the basis and
assumptions of this project management tool.
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Scope of Work
The scope of work (what it includes, as well as what it excludes) may be documented and attached as a
supporting document to the schedule basis. The work breakdown structure (WBS) defined in the planning
stage would be included in this section of the basis. The WBS may identify all the work to be executed as
per the contract. Also, this section may include the organizational breakdown structure (OBS) and the
division of responsibility (DOR) or responsibility assignment matrix (RAM) so that the schedule can clearly
and concisely represent the responsible parties to their appropriate scope items. Including this DOR
listing will help eliminate omissions to the project scope as well as minimize redundancy or overlap of
responsibilities of project team personnel and contractors. The level of design completion should be
identified in the schedule basis document. The schedule basis includes all of the important project
conditions, and potential issues or impacts to the project. Risks and schedule contingencies are
discussed in detail later in the schedule basis.
Execution Strategy
The execution strategy may describe and identify these items.
1. Briefly describe the type of work (new project, addition or expansion, revamp, renovation, relocation).
2. Briefly describe the execution strategy, specifically whether the project is considered one of the
following:
a. Standard or phased execution (standard workweek, spot overtime, non-shutdown)
b. An aggressive execution approach (non-standard workweek, high overtime)
c. Options to accelerate the schedule and constructability issues (reference checklist in Appendix A)
d. Fast-track approach (engineering incomplete or phased design/procurement at the start of
construction plus aggressive execution).
e. Shut-down (planned shut-down/outage periods, non-standard workweek, high overtime).
3. Briefly describe the contracting strategy:
a. Self perform, prime contractor, multiple contracts, alliance, joint venture.
4. Briefly describe the procurement strategy.
5. Briefly describe the contract type:
a. Lump sum, fixed price, cost plus, unit price, guaranteed maximum price (GMP), design build,
public-private partnership (PPP), 3rd party CM, etc.
b. The contract performance period as defined by the contract documents. (I.e.: from the notice to
proceed (NTP) date to the contract completion date, or commencement date to contract
completion date.)
c. The project contracting strategy may be included to describe the various means and methods of
completing the project.
6. Identify the cash flow profile (availability of funds) for the project. Note that this information may be
privileged or confidential and not included in the basis document.
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Planning Basis
The planning basis describes the methods and sources used for determining the project schedule,
including:
Identify resource planning methodology, crew size/mix expectations, etc. and capacity planning
(maximum resources allotted). The resource plan may include a travel/housing plan, as well as an
understanding of local hire vs. travel cards.
Activity identification, duration estimating: defines methodology use to establish activity durations,
which may include information on planned crew mixes or crew sizes.
Identify the project calendars, shift calendars, crew calendars and weather calendars (if any) for the
project.
Identify storage facilities, lay-down areas, staging areas and their planned usage.
Identify the cost estimate version and issue date, funding sources and cash flow profiles.
Identify source and methodology for determining logic and sequencing.
Identify labor productivity adjustments, including protective equipment, congestion (or confined
space) assessment, extended work hours, and local weather work limitations.
Identify construction equipment utilization plan.
Identify interfaces with the existing plant and facilities in brown field development
Document sources of planned production rates.
Identify equipment, modular, fabrication, vendor shop inspections, and bulk delivery
methodologies/strategies, long lead procurements. This includes timing issues such as planning for
as late as possible deliveries.
Identify any planned technology implementation (such as building information modeling (BIM)).
Identify basis for any contractor schedules included. Include subcontractor interfaces/limits of work.
Identify basis for start-up and commissioning sequencing requirements.
Identify owner requirements (regulatory, environmental, LEED certification, other quality/inspection
requirements).
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Path of Execution
Briefly describe the high level execution sequencing of the project, and the area paths of execution
(routing of people and equipment while on the site or premises). This will assist the project team in
determining the prioritization or postponement of modules and installation of equipment to allow
equipment and resources to be used more efficiently and effectively.
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Assumptions
Briefly describe the assumptions used while developing the schedule. Assumptions identify the
parameters and conditions used for determining the outcome (project start to completion dates) of the
project schedule.
Some examples of assumptions are: fabrication shops will complete the required work as per our
priorities and timing, the required craft is available, the project will not require any overtime, all project
funding is available at project start, etc.
Exclusions
Describe items that have not been included and therefore not supported during the development of the
schedule. Some examples or exclusions might be:
Specialty contractors/resources.
Sharing of equipment (such as cranes, excavators, etc.).
Exceptions
The exception section may identify any significant deviations from standard operating practices for
developing schedules, including the planning process, reviews and acceptance of the project schedule.
Any deliverables identified on the schedule input checklist (in Appendix A) not provided or that did not
meet the degree of completeness necessary for the proper development of the schedule may be
identified as an exception. If there are any deviations or exceptions from that scheduling specification,
describe that variation and submit a request for approval to the project owner.
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Project Buy-In
Because the schedule basis is such an important document, it likely will not be the creation of just one
individual, such as the project scheduler. The project management team including craft superintendents,
key subcontractors and technical specialists (i.e. rigging and safety) should be involved in the preparation
and review of the schedule basis document. The basis document may not be considered to be a valid
description of the project schedule unless it has been approved by the appropriate members of the
project management team. Incorrect or faulty information contained in this document may later be
detrimental to support a fair resolution of disputes or interpretation of contract documents.
A Graded Approach
Smaller projects may use a graded approach to development of the basis document. A graded approach
would apply a fit-for-use abbreviated version of the full basis table of contents. However, it must still cover
all the key basis items. An example of a graded or abbreviated table of contents is as follows:
Scope of work
Work breakdown structure
Key assumptions and constraints
Issues and impacts (risk)
Inclusions and specific exclusions
Schedule change order process
Integration & progress reporting process
Key procurements and submittals
The use of logical relationships (some software only allows a single relationship between any two
activities).
Inter-project dependencies.
Lags and leads.
Constraints.
Multiple calendars established for project holidays and non-work periods.
Resource loading.
Resource leveling.
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The schedule basis may include the activity coding dictionary used in the schedule to provide for
sorting, organization, and filtering capabilities for the various schedule report layouts.
The schedule basis may describe any use of preferential logic which is defined by AACE as the
contractors approach to sequencing the work over and above those sequences indicated in or required
by the contract documents. Examples include equipment delivery/setup restraints, crew movements,
concrete form reuse, special logic (lead/lag) restraints, etc. that are factored into the schedule which
would mask the associated activity float times.[12]
Ownership and use of schedule float is a significant concern that may be clarified by the contract and
based upon the project requirements. Any scheduling software technique used for handling project
planning assumptions and constraints (such as funding limitations) may also be described. It is important
to insure that all of the requirements from the contract schedule specifications are incorporated in the
baseline project schedule. If there are any deviations or exceptions from that scheduling specification,
describe that variation and submit a request for approval to the project owner.
CONTRIBUTORS
Edward E. Douglas, III CCC PSP (Author)
Rodney B. Adams, CCE
Zia Akhtar
Thilak M. Bandara
Peter R. Bredehoeft, Jr. CEP
John P. Buziak, PE
Timothy T. Calvey, PE PSP
Dr. Tadashi Eguchi
Douglas A. Findley, CCC PSP
Dennis Read Hanks, PE CCE
Sanjay Kelkar
Joseph O. Kikiowo
Yingsheng Li
Gregory N. McDowell, CCC
Bill Mendelsohn, EVP
Steven S. Pinnell, PE
Amit Sarkar
Hannah E. Schumacher, PSP
H. Lance Stephenson, CCC
Donald F. Sulzer
Manan N. Vakil, CCE EVP PSP
Ronald M. Winter, PSP
REFERENCES
1. AACE International, Recommended Practice No. 14R-90, Responsibility and Required Skills for a Project
Planning and Scheduling Professional, AACE International, Morgantown, WV, (latest revision).
2. Baker, S. and K. Baker. On Time/On Budget: A Step-By-Step Guide for Managing Any Project,
Prentice Hall, New Jersey, 1992.
3. Bechtel Corporate Procedure #302, Revision B, Houston Regional Office, November 4, 1991.
4. Douglas, Edward E., CCC PSP. Documenting the Schedule Basis, AACE International Transactions,
AACE International, Morgantown, WV, 2005.
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II.
III.
IV.
Execution strategy
a. Define project type
b. Funding (identify the funding source and cash flow profiles)
c. Contracting strategy
d. Procurement strategy
e. Constructability issues
i.
Resource demand
ii.
Logistics
f. Total number of calendar days: from start date to end date
g. Contract performance periods
h. Acceleration options to improve schedule
V.
VI.
Planning basis
a. Resource planning methodology, crew size expectations and capacity planning
i.
Travel & housing plan, as well as an understanding of local hire vs. travel cards.
b. Activity identification, duration estimating: define methodology for establishing activity durations,
which may include crew mixes, crew sizes
c. Project calendars, shift calendars, and crew calendars
d. Storage facilities, lay-down areas, staging areas usage plan
e. Logic and sequencing methodology
f. Labor productivity adjustments & congestion assessment
i.
Extended work hours, winter work
ii.
Document all production rates
g. Equipment utilization plan
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VII.
Critical path(s)
a. Description (written) of critical path(s)
VIII.
Path of Execution
a. Description of execution sequencing
i.
Execution priorities list
b. Path of Execution
i.
Identifies access restrictions
IX.
Punchlist/turn-over/system start-up
a. Testing and functional checkout: mechanical, electrical, plumbing, pre-commissioning
X.
XI.
XII.
Assumptions report
XIII.
Exclusions report
XIV.
Exceptions report
XV.
Baseline changes/reconciliation
a. Baseline change (not a recovery plan, used for stage/gate processes)
b. Reconciliation between master and contractor schedules
XVI.
Schedule reserve
a. Schedule confidence report
b. Application of schedule reserve (for scheduled activities)
c. Schedule identifying activities with schedule reserve
XVII.