Structuring Tiered Liquidated Damage Clauses for Multi Tenant Manufacturing Bottlenecks
Tiered liquidated damage clauses protect multi tenant manufacturing bottlenecks by aligning delay fees directly with verified operational displacement costs.
Schedule Compression
Meaning
Project management technique aims to shorten the total duration of a project while maintaining the original work scope. Utilizing schedule compression involves reallocating resources or performing tasks in parallel. This action responds to market demands for faster product delivery or a need to recover from a previous delay.
Timeline Acceleration
Adding more labor or overtime to the most restrictive tasks is a common way to achieve a faster completion date. This form of schedule compression increases the total cost of the project but keeps the final deadline intact. It is most effective when the tasks are labor-intensive rather than machine-limited.
Resource Crashing
Overlapping tasks that were originally planned to happen one after the other is known as fast tracking. This type of schedule compression carries the risk of rework if the earlier task changes the requirements for the later one. Engineering and construction phases are often overlapped to save months of calendar time.
Critical Path
Evaluation of the sequence of tasks that determines the project finish date is the only way to find where schedule compression will work. Shortening a task that is not on this path provides no benefit to the overall timeline. Constant monitoring ensures that a different set of tasks does not become the new restriction as the original ones are shortened.
The cost of calling for this acceleration too early is a significant waste of the budget on unnecessary overtime.