What is Float Time, and Who Owns It?

    Float Time is the period in Critical Path Method scheduling that allows the contractor to an excusable delay when the original contract schedule allows more than enough time to perform the work. In other words, the float is the maximum delay allowed before a delay will cause a slow-down in completion of the whole project.
    Ownership of the float is important when the project becomes delayed and a determination must be made as to who is responsible for the delay. The owner must also be known to calculate the length of the delay and whether the contractor should be given extra time to complete the work.
    If the site owner owns the float, then it can require the contractor to perform additional work outside of the critical path, without extending the original contract deadline and without paying additional money to the contractor. If the contractor owns the float then any additional work assigned that is not on the critical path could result in an extension to the completion date. If the contractor is considered owner of the float it could be considered the property of all contractors and therefore open to be used by any contractor on the job.
    The majority view is that the first party to use the float is considered the owner of the float, but some insiders suggest that if the contract doesn’t specify the owner of the float, that it should belong to the contractor because it should have the authority to control its own work and schedule.

Private Sector Contracts

    A dispute arose in Construction Enterprises & Contractors, Inc. v. Orting School Dist. No. 344, 2004 Wash. App. Lexis 681 (2004), when CE&C encountered in the water, sewer, and storm plans and the road grading and paving plans while working on elementary school. Even though CE&C completed the job on time, they sued the school district for losses resulting from inadequate design and failure to provide timely fixes for the design deficiencies. CE&C also sued Warner Engineering, the designer of the paving, grading, water, sewer, and storm plans. Warner used the float as a defense and claimed that the contract between the district and CE&C stated the float was owned by the district and therefore CE&C was not entitled to any additional payment by reason of loss or use of any float time because they still finished the job before the completion date. However, this decision was reversed because the contract did not provide a definition for float time. Therefore, the appeals court ruled the term was ambiguous and was not properly understood. In conclusion float time should be properly defined concerning damages regarding disruption as opposed to delay.

Public Sector Contracts

    Some states specifically state which party owns the float in state contracts. For example, California’s Department of Transportation explicitly stated that the float belonged to the contractor. This successful implementation gave contractors an incentive finish the job quickly. Federal contracts however state the float is not for exclusive use by either party. However, the contracts state the government will allow an extension for performance required under certain clauses, but only to the extent that these time adjustments do not exceed total float on the paths involved. If a contractor wants an adjustment based on government changes then they must show the change affected completion of the overall project and the extent to which the project was delayed (Maron Construction Co., Inc. GSBCA No. 13625 (April 7, 1998.)) InMaron, the contract stated that the government was not responsible for any delay or overhead increases incurred by Maron if the time could be absorbed by the total float time. The Board ruled that the government can preclude its liability for delay damages, but they must specifically and expressly exempt themselves from liability, which this contract did not. In conclusion, there should be no assumptions about float time and contracts should specifically define the float, the owner of the float, and explain the intent regarding the calculation of damages for delays arising out of a dispute.
    This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.




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