Delay Experts and IT Projects
This article was written by Jonathan Melzer with the assistance of Chris Raske and David Goodman
In December 2022, the US Army rolled out its new Integrated Personnel and Pay System.[1] This immense IT system was delayed by a total of 12 months[2] which?itself followed an earlier failed IT project to create a unified human resources platform for the entire US military, expected to be rolled out over a decade ago, in 2009.[3]
This may seem to be an astonishing one-off failure to efficiently modernise a public organisation, but actually, rather than being a rare occurrence, such delays and failures appear to be the norm. In 2015, a study of 50,000 IT projects found that 60% were in delay.[4] An earlier 2011 study published in the Harvard Business Review determined: “Fully one in six of the projects we studied was a ‘black swan’, with a cost overrun of 200%, on average, and a schedule overrun of almost 70%”.[5]
As a delay analyst at Kroll, my day-today role is generally related to construction disputes, but to an ever increasing degree I work on IT disputes as well. It was this personal experience which spurred me to write about this subject.
Applying construction delay expertise to IT disputes
IT projects may seem to have very little relation to construction projects. After all, IT projects are not typically thought of as requiring concrete or steel, builders, or civil engineers.
However, look closer and important patterns appear. IT projects, like construction projects do often require equipment, such as servers, some of which have long lead times for procurement. Like construction projects, this equipment also requires operatives to install and commission them on site. While it’s unlikely that the IT aspect of an integrated programme will require any civil engineers, it will require other types of engineers, such as software and hardware engineers. Furthermore, certain IT components, such as cabling, ventilation, cooling, and robotics may all be indirectly reliant on the work of civil engineers (and more) since they require dedicated and precise operating space. Technology is also being rapidly adopted on construction sites, a subject my colleagues at Kroll, Declan Fitzgerald and Siobhan Forster wrote a fascinating article on in NCE magazine.[6]
Large IT projects, like construction projects, need to be managed by project managers, who use schedule software such as Primavera P6, or Microsoft Project to plan their projects. IT projects are also likely to have many stakeholders, and subcontractors, another aspect that is shared with construction projects.
In some cases, projects are as much an IT project as a construction project: Take for example airports that can funnel your bag from check in to your plane, Amazon warehouses that digitally track thousands of packages a day, or manufacturing plants that use IT systems to automate the production of all sorts of goods from cars to washing machines.
From my perspective as a delay analyst, IT projects present the same fundamental task as construction projects. The delay analyst must use the contemporaneous documents, including the available schedules, to determine the project’s critical path, causes of delay, and extent of delay.
So should we let delay experts loose to solve your IT disputes?
Delay experts are essential when assessing the extent and causes of delay, this remains true in both construction disputes and IT disputes. Unlike in construction, IT disputes do not have a long history of delay analysis. This means that there is a wealth of delay analysis knowledge and experience that can (and is) being taken from construction disputes and applied to IT disputes.
Personally, I have worked on a long list of construction disputes. I’m also a chartered engineer and I have worked both on site and in design offices. While my experience of IT disputes is growing, I cannot yet claim the same in-depth knowledge of IT projects. From my personal and anecdotal experience, I have seen delay experts on IT disputes being supported by relevant IT experts. Having a specialist IT expert to compliment your delay expert is a key consideration that will depend on the needs of the client, the complexity of the IT project, and the experience of the delay expert. As Kroll has both specialist IT experts and delay experts, I have had the opportunity to work in closely integrated teams and seen the huge advantages this provides to efficiency and quality of our work.
A specialist IT expert can provide technical and common-sense insight that are particular to IT projects that a delay expert may not be able to provide. For example, an IT expert may be able to review software code and determine whether the completion of another aspect of work was dependent on the completion of that code. Alternatively, an IT expert may be able to look at the integrated systems in a hospital, data centre, or other programme of works, and determine the extent to which each component is technically dependent on the others.
Conclusion
In conclusion, IT projects frequently become delayed, and are increasingly arriving in the inboxes of the delay experts at Kroll. In my opinion, this is a sign of progress as delay experts are essential when assessing the extent and causes of delay and to hence, assist with the dispute resolution process. Particular care should be taken to ensure there are no knowledge gaps in expertise and, where necessary, your delay expert should be supported by a specialist IT expert.
领英推荐
This article was written by Jonathan Melzer with the assistance of Chris Raske and David Goodman.
Jonathan Melzer is a director in the Expert Services practice, based in Paris. Jonathan leverages more than 13 years of construction experience. Since 2018 Jonathan has provided independent expertise to law firms, construction companies and clients with disputes involving delays and disruption to construction projects.
Chris Raske is a senior director in the Data Insights and Forensics practice, based in London. He leverages a decade of experience analysing the primary causes of delay and failure in technology projects, as well as software code for copyright claims. His analysis is used to assist software suppliers, customers and their legal advisors with problematic or failed technologies.
David Goodman is a managing director in the Expert Services practice, based in the London office. He is a civil engineer and delay analyst with over 25 years of experience in the construction industry, the last 17 of which have been spent working within project planning, strategic advice, project management and dispute resolution teams globally.
?
Advice and expert witness services concerning delay & disruption
1 年Jonathan Melzer a project is a project and if it contains multiple interrelated but identifiable discreet activities then any delay can be analysed in a similar fashion. The one piece that you need, amongst many others, is as you very rightly say, a very good knowledge of the process and activity relationships. I could not analyse a pure IT project as I don’t have the knowledge personally. But sit an IT expert with that knowledge next to me and I could do the analysis. But that has often been the case. Building MEP I have a very good knowledge of, but today the mix of traditional MEP and tech means I often need assistance on parts of it. About 10 years ago I was involved in a large fibre optic utility claim. Physically putting the cable in the ground etc was second nature to me but commissioning the cables, etc was all new. I got assistance. But now I know what’s involved and could likely analyse it myself,
Delay Expert | Construction Claims | Project Planning
1 年To bolster your argument, consider the prominent legal case involving concurrent delay, De Beers v Atos Origin IT Services (decided in TCC in 2010). This case centered around an IT system crucial for relocating De Beers' business to Botswana. In the absence of delay experts hired by either party, Judge Edwards-Stuart had the challenging task of determining the critical path and critical delays. It raises speculation about whether the case outcome might have been different had the parties used the delay experts - despite granting the contractor an Extension of Time (EOT), the judge denied the recovery of prolongation costs due to contractor concurrent delays.
Director at HKA | Expert Services
1 年Great article Jon!