In construction projects, float – also known as slack – is a crucial but often misunderstood concept. Float represents the amount of time an activity can be delayed without impacting the overall project completion date or the next dependent task. Managing float effectively can make or break a project, and its ownership can vary depending on the contract type. Let’s delve into what float means, who owns it, and how it should be managed to ensure project success.

What is Float?

Float can be categorised into two types:

• Total Float: The amount of time an activity can be delayed without delaying the project completion date.

 

• Free Float: The amount of time an activity can be delayed without delaying the early start of any subsequent activity.

Understanding and managing float is key to maintaining flexibility, mitigating risks, and resolving potential disputes in construction projects.

Who Owns Float?

The ownership of float is a contentious topic and often depends on the specific terms of the construction contract:

1. Contractor-Owned Float: Some contracts imply that the contractor owns the float, giving them the flexibility to manage it as they see fit to optimise resources and scheduling.

2. Project-Owned Float: In other cases, float is considered a shared resource, available to both the contractor and the client. This encourages collaboration but requires clear communication to avoid disputes.

3. First-Use Basis: Certain contracts operate on a “first-come, first-served” basis, where the party that identifies and uses the float first effectively owns it.

4. Defined Ownership in Contracts: Some contract types, such as NEC or bespoke agreements, may explicitly define who owns the float, reducing ambiguity.

Managing Float Based on Contract Type

The approach to managing float varies depending on the contract type:

1. JCT (Joint Contracts Tribunal) Contracts:

• Ownership is often project-based unless explicitly stated otherwise.

• Planners should ensure that float is allocated carefully, particularly for critical path activities, to avoid disputes.

2. NEC (New Engineering Contract) Contracts:

• NEC contracts typically encourage collaboration, viewing float as a shared resource.

• Regular programme updates and risk registers ensure that float is managed transparently.

3. Design-Build Contracts:

• Contractors may assume ownership of float to accommodate design changes.

• Planners must balance design milestones with construction activities to avoid consuming all available float.

4. Cost-Plus and T&M Contracts:

• Float management is closely tied to cost control.

• Transparency in float usage is critical to maintaining client trust.

5. EPC (Engineering, Procurement, and Construction) Contracts:

• Contractors often retain control of float to manage the high-risk, fixed-scope nature of these contracts.

• Float must be strategically allocated to absorb procurement and construction delays.

Best Practices for Float Management

Regardless of the contract type, effective float management requires:

1. Detailed Programme Development – Create a robust baseline programme that clearly identifies critical and non-critical paths.
2. Transparent Communication – Clearly communicate float usage and its implications to all stakeholders.
3. Regular Programme Updates – Update the programme frequently to reflect actual progress and remaining float.
4. Risk Mitigation – Use float strategically to mitigate identified risks without compromising the project timeline.
5. Collaborative Planning – Foster collaboration among stakeholders to ensure float is used judiciously and transparently.

The AZS Approach to Float Management

At AZS, we view float as a strategic asset. Our team ensures:

• Contract-Specific Strategies: Tailoring float management approaches based on the contract type.
• Proactive Risk Management: Identifying and addressing risks early to preserve float for critical activities.
• Clear Documentation: Providing detailed reports on float usage to maintain transparency and avoid disputes.
• Stakeholder Alignment: Encouraging open communication to ensure that float benefits the project as a whole.

Conclusion

Float is more than just a scheduling buffer – it’s a tool for flexibility, risk management, and efficiency. Understanding who owns the float and how to manage it effectively based on the contract type is crucial for successful project delivery. At AZS, we’re committed to helping our clients navigate these complexities and achieve excellence in project planning and execution.

Share your thoughts or experiences with float management in the comments. Let’s continue the conversation about driving better outcomes in construction projects.