Total Float Traded as Commodity

Abstract

Total float is a by‐product of critical‐path‐method calculations. It represents the length of time that an activity's finish date may be delayed without affecting the completion date of the entire project. Disputes over the existence of total float and its ownership are at the core of most claims involving change‐order work. While some tribunals have ruled in favor of contractors, others have held for owners on very similar facts. This paper is motivated by practical experience with problems concerning float. The paper acknowledges the fact that total float is beneficial to both owners and contractors. It does so by proposing ways of making its commercial trade‐in‐opportunity value explicit. Contract language is also introduced that will allow the trading of total float as a commodity. Such contract language grants the contractor the right to administer total float, imposes on the contractor the obligation to disclose its value and trade it on demand.