Who Owns the Float in a Construction Project?

Who Owns the Float in a Construction Project?

Float in a construction project is a key concept that often generates controversy between the different stakeholders involved. This article seeks to clarify what float is, its importance in project management, and the different positions on who should be its "owner".

What is float?

Float is the margin of time that an activity has within a project before its delay affects the completion date of the project as a whole. The critical path, on the other hand, is the sequence of activities without float, meaning any delay in these activities will directly impact the final delivery date.

The controversy over float ownership

The allocation of float ownership is a subject of constant debate in the construction industry. While some argue that the float belongs to the contractor, others argue that it is the property of the employer or that it should be shared.

• Employer: If the contract states that the float belongs to the employer, they have the right to delay any activity to the point where the float is exhausted, turning a non-critical activity into a critical one.
• Contractor: If the float is owned by the contractor, they have the flexibility to manage the timing of non-critical activities without affecting the project completion date.
• Shared or undefined: In many cases, the contract does not specify who owns the float. In these situations, the "first come, first served" principle applies, which can lead to conflicts and disputes.

Different perspectives and the importance of contractual clarity

Various organizations and experts have differing opinions on float ownership:

• The Society of Construction Law (SCL) advocates for sharing the float.
• The Association for the Advancement of Cost Engineering International (AACEI) considers the float to be the property of the contractor.
• Many employers believe that the float should belong to them.

The lack of a standard definition and the diversity of opinions highlight the importance of clearly establishing in the contract who owns the float. This will help avoid misunderstandings, conflicts, and potential project delays.

Conclusion

Float ownership is a complex and crucial issue in construction project management. It is essential that all parties involved understand the concept of float and its impact on the project schedule. Furthermore, it is essential that the contract clearly and precisely defines who owns the float to avoid disputes and ensure a smooth project execution.

And you, what do you think about float ownership?

About Fractal - Ingenieros & Abogados

Fractal—Ingenieros & Abogados is a boutique firm that specializes in Project Management and Construction Law. It is focused exclusively on the Construction Industry.

Our comprehensive services include independent consultancy and advice on claims, contracts, risks, integrity, and project control. We cater to various clients, including law firms, claims consultants, commercial and multilateral banks, fiduciary and insurance companies, arbitration and adjudication courts, dispute boards, project owners, equipment and materials suppliers, national and foreign investors, and engineering and construction companies.