A Delay Liquidated Damages (Dlds) Mitigation Model Using Earned Schedule (Es)-Based Algorithm for Engineering-Procurement-Construction Projects

The current schedule management practices by the Korean Engineer, Procure, Construct companies are unsustainable. These companies are, on average, experiencing margin losses as high as -7.2%, mainly attributed to expensive construction acceleration or significant delay liquidated damages (DLDs) of these mega-projects. Thus, this paper presents a model that provides project managers with a decision-making tool that incorporates DLDs and construction productivity through an earned value management system that incorporates an early start-based algorithm (Resource Leveling, Limiting Work Crew, etc.). The output is a comparison of construction acceleration charges versus potential DLDs