Critical Path Method (CPM) Schedule

The Critical Path Method (CPM) Schedule is utilized by many contractors to plan, schedule, coordinate and control work activities on a variety of projects. The CPM schedule allows the contractor to plan and complete the work of improvement in the quickest and most economical fashion. It also allows the contractor to constantly monitor and evaluate its performance on a project. The CPM Schedule is more popular than thebar chart method of scheduling since the CPM schedule displays the interrelationships and interdependencies of the various work activities.

The critical path represents the longest chain of interrelated activities in terms of time from the beginning of the project to the end. Since this chain of activities will take the longest to complete, it is critical to the completion of the project.

In recent years, the courts have criticized the use of bar chart schedules in the proof and defense of delay claims. The courts have shown a strong preference for the use of the CPM schedule because the schedule shows the interrelationship between the various tasks included in the construction project. Inasmuch as certain construction contracts do not allow time extensions or additional compensation for delays which are not on the critical path, and some owners condition the contractor's right to additional time and/or compensation for delays on the contractor's ability to show an impact to the critical path, the determination of the critical path is crucial to the contractor.

The use of CPM scheduling techniques to prove delay damages involves a four-step process. This process may be summarized as follows:

i. Determine the as-planned schedule (i.e., how the contractor planned to perform the project at the time of the contract);
ii. Prepare an as-built schedule, which reflects how the project was actually built by the contractor;
iii. Compare the as-planned schedule with the as-built schedule and determine which critical activities were, in fact, delayed; and
iv. Prepare the "entitlement schedule."

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