Schedules Are Not Required for Major Projects in Australia

Updated: Aug 24

Schedule requirements in contracts - It is not uncommon for major projects in Australia where the 'Schedule is not required' as a contractual artifact. This can lead to confusion and mismanagement. Let’s clarify what this means.

Understanding Schedule Requirements in Contracts

Yes, a contractor must submit a Schedule that complies with the scope and technical requirements.
Yes, a contractor must submit a Schedule update on a regular (monthly) basis.
Yes, key milestone dates are financially incentivised.
No, the contractor does not need to update the original baseline Schedule with agreed/approved variations or Extensions of Time (EoT's).
Yes, the contractor must submit a Schedule for client review and comment. However, No, the contractor doesn't need to address the client's comments.
The Contract or Deed specifically excludes the Schedule from the Deed. So, No, the Schedule does not form part of the Contract.
The Client or Project Owner cannot rely on the Schedule for analysing time-related delays.

The Impact of Poor Contractual Terms

In my opinion, based on over 30 years of experience in major infrastructure projects globally, and more recently in Australia, external consultants have intentionally manipulated contracts.

Why Do They Do This?

Consultants benefit from poor contractual terms when delay claims and costs eventually reach the court system. Project delays and claims are a massive business in themselves.

The Solution: NEC4 Contract

So, what is the solution? Let's adopt the NEC4 form of contract. The NEC puts the programme, or schedule, at the heart of project management. It's a contractual document, not just a planning tool.

The NEC contract becomes the baseline for assessing progress, delays, and compensation events. Time impacts are assessed based on the accepted schedule.

Float Ownership and Risk Sharing

NEC does not define float ownership. In practice, it benefits the party needing it first, unless otherwise stated. This encourages collaborative risk sharing rather than adversarial float control.

The NEC's early warning system ensures that risks to time are flagged early. This proactive approach helps prevent delays before they escalate into larger issues.

Conclusion: Let's Fix the Problem!

It is crucial to understand the implications of not requiring a Schedule in major projects. Adopting a more structured approach, like the NEC4 contract, can lead to better project outcomes.

In summary, the Schedule should not be seen merely as a planning tool. It is an essential part of the contractual framework that can significantly impact project success.

For more information on effective project management practices, consider exploring resources that delve deeper into the NEC4 contract and its benefits.

Schedule = program for simplicity

Contract = Deed, JV Agreement, Alliance Agreement, PPP agreement for simplicit