Takt Only Contract Language

Purpose and Scheduling Philosophy

This Specification governs how the Project shall be planned, scheduled, controlled, reported, and recovered. It applies to all Work performed under the Agreement, including engineering, procurement, construction, pre-commissioning, commissioning, testing, startup, and closeout.

The Project shall be planned, executed, and controlled using the Takt Production System. The Takt Production System is a flow-based production system that engineers a project as a Train of Trades moving through Zones at a steady rhythm, on a visual plan that can be read on one page, governed by production laws and Lean principles. Under this Specification, the Takt plans are the Master Schedule — they are the plan of record, the production plan, the reporting plan, and the as-built record.

Two Plan Levels — One System

The Macro Level Production Plan is the Promise. It is built in pre-construction as part of the First Planner System®, on a coarser zoning strategy and a longer Takt time, with a Realized Flow Potential between thirty percent (30%) and fifty percent (50%). The Macro is what Contractor commits to in this Agreement.

The Norm Level Production Plan is the Target. It is built collaboratively with the trade partners through pull planning, with optimized zones, an optimized Takt time, and detailed work packages, with a Realized Flow Potential between fifty percent (50%) and one hundred percent (100%). The Norm is what the field runs on, day by day, as part of the Last Planner® System.

The space between the Macro and the Norm is the buffer. When the Norm runs faster than the Macro, the Project gains protection against variation. That protection — not pressure on people — is how Contractor will keep the Promise to Owner.

What This Specification Does Not Use

Golden Rule

Build and run the Project from the Takt plans. The Macro is the Promise. The Norm is the Target. The gap between them is the buffer. There is no parallel CPM schedule, no CPM export, and no CPM as-built. The Takt plans are the schedule of record.

Definitions

The following definitions apply throughout this Specification. Capitalized terms not defined here have the meaning set forth in the Agreement. References to “taktguide.com” are to the public methodology of the Takt Production System® as in effect on the Contract Date.

Andon. A signal — visual, verbal, or written — that notifies the team of a quality, safety, or process problem so it can be addressed immediately rather than allowed to travel forward.

Buffer. A planned, transparent, intentional reserve of time or capacity inserted into the Takt plans to absorb normal variation and protect flow. Buffers belong to the production team and are not Owner contingency. Types include the calculated end buffer, Takt time buffers, Takt wagon buffers, sequence buffers, and supply chain buffers.

Conditions of Satisfaction. The clearly stated criteria a piece of Work must meet for a handoff to be considered complete and accepted by the next trade and by Owner.

Constraints. Permanent or semi-permanent conditions inside the production system itself that limit its rate — improper Takt time, varying trade speeds, incorrect sequence, lack of buffers, wrong number of zones, missing resources, misshapen complex zones, behavioral conditions. Constraints are part of the system design and are optimized through Takt Steering, not removed by force.

Day Plan. The plan that guides daily work in the field. Filtered from the Norm and the Weekly Work Plan; not a separate document.

Efficiency Parametric. A measure comparing the number of Takt wagons and Takt sequences in a phase. Required range: 0.3 to 3.0.

Final Completion. The point at which the punch list is complete and the Work is fully finished in accordance with the Agreement, with all systems turned over.

Financial Completion. The date past which the Project stops generating revenue and begins consuming general conditions and general requirements at Contractor’s expense. Tracked separately from Substantial and Final Completion.

First Planner System®. Collaborative production planning performed early in pre-construction by the people best positioned to plan it (superintendents, project managers, designers, trade partners). Produces the Macro Level Production Plan.

Full Kit. The condition in which all materials, information, tools, drawings, equipment, permissions, labor, and predecessor work required for a task are confirmed in place before the task begins. Required for every Work start under this Specification.

Independent Activity. A scope of Work that is one trade in one zone, integrated into the Takt format alongside the Train of Trades. Not an exception to the system; simply a different proportion of crews and zones.

Integrated Production Control System (IPCS). The full project planning and control system comprising the First Planner System® (pre-construction collaborative planning), the Takt Production System® (production planning, steering, and control), and the Last Planner® System (short-interval planning by the people doing the Work).

Interdependence Tie. A deliberate logical tie linking trains, phases, zones, and Independent Activities. A Macro-level Takt plan typically has between ten and thirty Interdependence Ties.

Last Planner® System. Short-interval planning by the people doing the Work, in the form of Six-Week Lookaheads, Weekly Work Plans, and Day Plans. Filtered from the Norm Level Production Plan.

Line of Balance. The diagonal line connecting the wagons of a Takt train as they move through zones over time. The visual signature of flow. The angle indicates the speed of the train.

Macro Level Production Plan (the Promise). A predictive Takt plan built in pre-construction as part of the First Planner System®, with a Realized Flow Potential between thirty percent (30%) and fifty percent (50%). The schedule of contractual record.

Master Schedule. Under this Specification, the Master Schedule is the Takt plans together — the Macro Level Production Plan governing as the contractual reference and the Norm Level Production Plan governing the production of the Work.

Milestones. Defined start, finish, or decision points of the Project — including Notice to Proceed, intermediate phase milestones, Substantial Completion, Final Completion, and Financial Completion. Milestones are binary: a Milestone is either achieved or not.

Norm Level Production Plan (the Target). A Takt plan built from a pull plan with full trade-partner involvement, with optimized zones and Takt time and detailed work packages, with a Realized Flow Potential between fifty percent (50%) and one hundred percent (100%). The plan the field runs on.

NTP / LNTP. Notice to Proceed and Limited Notice to Proceed, as defined in the Agreement.

One-Process Flow (OPF). A trade working in one zone at a time, in a continuous train, with no parallel chaos and no context-switching beyond what the plan provides.

Path of Critical Flow. The longest connected path of production through the Takt plans, running from the start Milestone through phase sequences, the Line of Balance, buffers, and Interdependence Ties to the Substantial Completion Milestone. The Path of Critical Flow always includes activity, duration, logic tie, sequence, Line of Balance, and buffer. It is the Project’s spine and the basis for delay analysis under this Specification.

Phase. A grouping of zones that share a common flow of work. Each phase has its own start and end Milestones, its own zones, its own pace-setting trade, its own buffers, and its own Interdependence Ties to other phases.

Pull Plan. A trade-partner-led collaborative planning session run backward from a milestone to identify the sequence, predecessors, and Conditions of Satisfaction the field believes are required to deliver the Work.

Realized Flow Potential (RFP). A measure of the current flow of a Takt train compared to the fastest flow possible given the smallest practical Takt time. Used to confirm reasonable speed ranges.

Recovery Strategy. A Takt-based response to slippage of ten (10) Days or more, prepared under Section 5.5. Recovery is achieved through Takt-based adjustment (zones, Takt time, packaging, sequence, leveling, swing capacity, etc.) before any consideration of crashing, mandatory overtime, or extended workdays.

Roadblocks. Temporary obstacles in the Project environment that interrupt the Train of Trades — weather, missing materials, missing information, failed inspections, layout not ready, equipment failures, missing permissions. Roadblocks are removed through Takt Control, not optimized.

Substantial Completion. The point at which the Project, or the relevant portion of the Project, is fit for its intended use as defined in the Agreement, including life safety systems operational, egress complete, inspections passed, and the formal punch list established.

Supply Chain Buffer. A reserve of time built into procurement and delivery sequencing to absorb supplier variation, fabrication delays, shipping issues, and submittal slips. Required for every Macro and Norm level plan under this Specification.

Swing Capacity. Trade labor able to move between Workable Backlog and the Train of Trades to support flow. A buffer in labor resources that absorbs early finishes and supports recovery without creating overburden.

Takt. A production system based on rhythm, flow, leveled work, zoning, buffers, and respect for people.

Takt Control. The discipline of clearing the Project environment so the Train of Trades is not stopped by Roadblocks. The work of Last Planners (superintendents and trade foremen) in the field.

Takt Plan. A construction schedule in time-by-location format showing the Train of Trades flowing through the body of the schedule and complying with the Ten Commandments of the Takt Production System®.

Takt Planning. The process of creating the Macro and Norm level production plans, including the Takt zone maps, the procurement log, the logistics plan, and the meeting structure that supports the Project.

Takt Production System® (TPS). A complete operating system for flow in construction. Under this Specification, the planning, scheduling, and production-control mechanism for the Work.

Takt Steering. The discipline of directing the Train of Trades around Constraints inside the production system. The work of First Planners (project managers, superintendents, key trade leadership) in the First Planner meetings.

Takt Time. The pace at which the Train of Trades moves from zone to zone — the rhythm of the Project. Set based on the Work, not the calendar week. Weekends shall not be used as the Takt drumbeat.

Takt Wagon. One or more work packages packaged into a single Takt time within a single zone, linked to the wagons in front of and behind it in the train. A wagon is not equivalent to a single trade or a single activity.

Train of Trades. The coordinated sequence of trade crews moving zone-to-zone in rhythm, separated by appropriate distance, packaged into Takt wagons. The Project’s flow unit.

Value Parametric. A measure dividing used Takts by empty Takts in a Takt plan. Required range: 0.5 to 2.5.

Work Density. The ratio of a trade’s workload in a zone to the resources available to perform that work. Zones are leveled by Work Density, not by square footage.

Work Package. A group of related tasks within a Project that will be completed within the same Takt time inside the same Takt zone.

Zone. A location-based grouping of work inside a phase — the physical territory a trade works in during one Takt time. The track on which the Train of Trades runs. Each phase has its own zones, designed around production flow.Work Package. A group of related tasks within a Project that will be completed within the same Takt time inside the same Takt zone.

Zoning Strategy. The Project team’s selection of the number and size of zones in each phase, used to set the speed of the Train of Trades. A complete Zoning Strategy includes a promised speed (Macro), a target speed (Norm), and a backup speed if the train falls behind.

Article 5 — Commencement of Work, Project Schedule, and Scheduling Obligations

5.1 Commencement of Work

[As provided in the Agreement.]

5.2 Limited Notice to Proceed / Notice to Proceed

[As provided in the Agreement.]

5.3 Project Schedule

Contractor shall perform the Work in accordance with the Project Schedule. The Project Schedule consists of the Macro Level Production Plan and the Norm Level Production Plan (together, the Master Schedule), the Milestones, the Target Substantial Completion Date, and the Guaranteed Substantial Completion Date specified in the Agreement. There is no separate critical path method schedule under this Agreement; the Takt plans are the schedule of record.

A. Target Substantial Completion Date

Listed in Attachment ___ is the Target Substantial Completion Date for ___. The Target Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement.

B. Guaranteed Substantial Completion Date

Contractor shall achieve Substantial Completion of ___ no later than the date specified in Attachment ___ (the “Guaranteed Substantial Completion Date”). The Guaranteed Substantial Completion Date shall only be adjusted by Change Order as provided under this Agreement. [Substantial Completion requirements to be enumerated in Attachment ___.]

C. Final Completion

Contractor shall achieve Final Completion no later than ___ (___) Days after achieving Substantial Completion of ___, or as soon as reasonably practicable thereafter if the Parties mutually agree (both acting reasonably).

D. Financial Completion

Contractor shall track Financial Completion separately from Substantial Completion and Final Completion and shall report it as part of the Monthly Progress Report under Section 8.8.

5.4 Schedule Submissions

The Project shall be planned and executed exclusively from the Takt Production System®. Submissions are sequenced as follows.

A. Macro Level Production Plan (the Promise)

Within fifteen (15) Days after NTP is issued in accordance with Section 5.2B, Contractor shall prepare and submit to Owner for its review the Macro Level Production Plan for the Work. The Macro Level Production Plan shall:

1. Be prepared as a Takt plan in time-by-location format and shall comply with the Ten Commandments of the Takt Production System® set forth in Section 5;
2. Identify the Project's Milestones, including Notice to Proceed, intermediate phase Milestones, the Target and Guaranteed Substantial Completion Dates, Final Completion, and Financial Completion;
3. Identify the Path of Critical Flow through the phases of the Work, with each phase showing a start Milestone, a sequence, a pace-setting Line of Balance, buffers, and an end Milestone;
4. Be built on a Zoning Strategy with zones leveled by Work Density rather than square footage, and be detailed only to the level of phase summaries and Independent Activities, with a Realized Flow Potential between thirty percent (30%) and fifty percent (50%);
5. Include the initial Procurement Log, with long-lead items backed off Required-on-Job dates and a procurement buffer of not less than ten percent (10%) on lead time;
6. Include the initial logistics drawing identifying staging, hoists, access, and laydown areas;
7. Include the supply chain buffer plan corresponding to the buffers in the Takt plan;
8. Include a Basis of Schedule narrative documenting the assumptions, production rates, reference-class comparison, and Risk and Opportunity Register supporting the plan; and
9. Be prepared and maintained in a Takt-capable production tool consistent with the standards published at taktguide.com.

The Macro Level Production Plan shall be the initial Master Schedule and shall be the contractual reference plan for the duration of the Project unless revised by Change Order approved by Owner.

B. Norm Level Production Plan (the Target)

No later than thirty (30) Days after NTP is issued in accordance with Section 5.2B, Contractor shall submit to Owner for its review the complete Norm Level Production Plan. The Norm Level Production Plan shall:

10. Be developed collaboratively with the trade partners through Pull Planning sessions led by the First Planners and detailed to a day-by-day format;
11. Include all work packages for the Project (including engineering, procurement, construction, pre-commissioning, commissioning, testing, startup, closeout, and demobilization);
12. Be built on optimized zones (with the Project broken into properly leveled zones leveled by Work Density), an optimized Takt time, and detailed Takt wagons, with a Realized Flow Potential between fifty percent (50%) and one hundred percent (100%);
13. Comply with the Ten Commandments and Twelve Principles of the Takt Production System® and with the Takt Rules of Flow set forth in Section 5;
14. Comply with the Takt Production parametrics set forth in Section 5 (Efficiency, Value, and Stability) and with the Realized Flow Potential range stated above;
15. Include phase buffers, Takt wagon buffers (5% to 20% of sequence duration), Takt time buffers for known holidays and weather, and a calculated end buffer based on a documented risk analysis, with fifty to seventy-five percent (50%–75%) of the calculated buffer placed at the end of the phase or, where appropriate, consolidated at the end of the Project;
16. Include the corresponding supply chain buffer plan such that procurement and delivery sequencing protect the Norm rhythm;
17. Include all Interdependence Ties between phases, between trains, and to Independent Activities, with a typical Macro-level count of ten to thirty Interdependence Ties carried forward and refined at the Norm level;
18. Be developed in conjunction with updated zone maps, an updated logistics drawing, an updated procurement log, an updated Risk and Opportunity Register, and updated trailer graphics; and
19. Represent Contractor's best judgment as to how it shall complete the Work in compliance with the Master Schedule.

Upon Owner’s review, the Norm Level Production Plan shall govern day-to-day production of the Work. The Macro Level Production Plan shall continue as the strategic and contractual reference plan, with the gap between the Norm and the Macro retained as a Project buffer that protects the Guaranteed Substantial Completion Date.

C. Software and Format

The Macro and Norm Level Production Plans, the procurement log, the logistics drawings, the zone maps, the Lookahead and Weekly Work Plan formats, and the Risk and Opportunity Register shall be prepared and maintained in Takt-capable production tools consistent with taktguide.com. Each shall be provided to Owner in its native electronic format and in print.

D. Fresh Eyes Review

Prior to issuance of the Macro Level Production Plan and again prior to issuance of the Norm Level Production Plan, Contractor shall conduct a Fresh Eyes Review with experienced builders not directly involved in development of the plan. The Fresh Eyes Review shall stress-test the plan against the Takt Rules of Flow, the parametrics, the Path of Critical Flow, the buffer placement, and the Risk and Opportunity Register, and shall be documented in the submission package.

5.5 Recovery Strategy

If, at any time during the prosecution of the Work, (i) the Monthly Progress Report shows that any phase or Independent Activity on the Path of Critical Flow is ten (10) or more Days behind, or Contractor fails to provide a Monthly Progress Report in compliance with this Agreement and Owner reasonably determines that any phase or Independent Activity on the Path of Critical Flow is ten (10) or more Days behind, and (ii) Contractor or any of its Subcontractors or Sub-subcontractors are in Owner’s reasonable judgment responsible for such delay, Owner may, in addition to any other remedies that it may have under this Agreement, require that Contractor prepare a Recovery Strategy to regain compliance with the Master Schedule.

Within ten (10) Business Days after Owner’s determination, Contractor shall prepare and submit a written Recovery Strategy. The Recovery Strategy shall consider, in order, the following Takt-based mitigation methods, before any consideration of crashing, mandatory overtime, or extended workdays:

20. Adjust Takt zones (rezone for smaller, better-leveled zones);
21. Adjust Takt time;
22. Adjust work packaging (how work is grouped by zone);
23. Adjust the work sequence;
24. Level labor counts and slightly adjust crew composition;
25. Optimize trade processes for efficiency;
26. Optimize zone configuration for ideal flow;
27. Adjust the number of zones per Little's Law;
28. Increase labor productivity by increasing capability;
29. Reduce variation;
30. Align the plan to focus more on One-Process Flow;
31. Improve standard work; and
32. Adjust the site configuration.

In addition, the Recovery Strategy shall consider, where applicable, the following delay-absorption methods drawn from the Takt Production System®:

33. Stop the Takt phase and swing the affected crew to Workable Backlog;
34. Stop the Takt phase, wait, and prepare;
35. Pull the delayed work out of the Takt plan and onto a separate Pull Plan or scrum board;
36. Pull the affected wagon out of the Takt train and onto its own Takt time;
37. Recover within the wagon or boxcar;
38. Swarm the delay with Swing Capacity; or
39. Carefully delay an individual train, taking care to avoid trade stacking.

The Recovery Strategy shall (i) represent Contractor’s best judgment as to how it shall regain compliance with the Master Schedule, (ii) be prepared in accordance with current industry best practices and the Takt Production Standards in Section 5, (iii) have a level of detail sufficient for Contractor to direct, manage, and perform the Work, and (iv) be achievable with current regional and industry resources without overburdening crews.

Contractor shall address all comments received from Owner during Owner’s review of the Recovery Strategy and shall provide a written statement describing why any of Owner’s comments or proposed changes were not implemented. Owner-accepted comments shall be reflected in the revised Recovery Strategy. The revised Recovery Strategy shall then be the strategy that Contractor shall use in planning, organizing, directing, coordinating, performing, and executing the Work to regain compliance with the Master Schedule. The Norm Level Production Plan shall be updated to reflect the revised Recovery Strategy.

The cost of preparing and executing the Recovery Strategy shall be at Contractor’s sole cost and expense; provided, however, that if the preparation of a Recovery Strategy is combined with a request by Owner for a Change Order and the cost of preparing the Change Order for such request (excluding any costs associated with recovery) exceeds Thirty Thousand U.S. Dollars (U.S. $30,000), then Contractor is entitled to reimbursement for such preparation costs in accordance with Section ___.

Owner’s review and comments regarding the Recovery Strategy shall not relieve Contractor of any obligations for performance of the Work, change the Target Substantial Completion Date or Guaranteed Substantial Completion Date, or be construed to establish the reasonableness of the Recovery Strategy.

Owner Limitations on Recovery Direction

Owner shall not direct a recovery to the Master Schedule that creates any of the following conditions, and Contractor shall not implement a Recovery Strategy that creates any of them:

Fatigue from work conditions;
Workers being forced to work beyond their training;
Workers working with a lack of needed resources;
Workers having a lack of breaks;
Work having a lack of buffers within wagons, sequences, and phases;
Workers being pushed;
Workers going too fast;
Workers working excessive overtime;
Workers having too many areas to work in; or
Trade stacking or trade burdening of any kind.

5.6 Acceleration Strategy

A. Confirmed Acceleration Directive

Even if the Work is otherwise in compliance with the Master Schedule, Owner may, at any time, direct Contractor in writing to advance the Target Substantial Completion Date or the Guaranteed Substantial Completion Date, or both; provided, however, that such directive shall be reasonable, and Contractor shall have agreed in writing that such acceleration is commercially and technically feasible. In the event of such agreement, the directive shall be a “Confirmed Acceleration Directive” and shall be set forth in a Change Order. In no event shall Owner have the right to issue a unilateral acceleration directive requiring Contractor to achieve Substantial Completion of ___ prior to the original Guaranteed Substantial Completion Date specified in this Agreement as of the Contract Date.

In the event of a Confirmed Acceleration Directive, Owner shall pay Contractor for the documented costs plus fees attributable to such acceleration, and appropriate incentives, if any, shall be mutually agreed upon by the Parties and set forth in the Change Order. Such costs may include shift differential, premium, or overtime payments to workers or field supervisors and other employees of Contractor dedicated to the Work on a full-time basis actually incurred over and above Contractor’s normal rates, and overtime charges for Construction Equipment. Any adjustment to the Contract Price or any other Changed Criteria necessitated by such acceleration of the Work shall be implemented by Change Order.

B. Acceleration Strategy

Upon execution of the Change Order, Contractor shall immediately commence and diligently perform the acceleration of the Work and shall prepare an Acceleration Strategy to explain and display how it intends to accelerate the Work and how that acceleration will affect the Path of Critical Flow of the Master Schedule. With respect to the Acceleration Strategy:

40. No later than the tenth (10th) Business Day after execution of the Change Order with respect to the Confirmed Acceleration Directive, Contractor shall submit the Acceleration Strategy to Owner. The Acceleration Strategy shall be prepared in the Takt plan format and to a level of detail consistent with the Norm Level Production Plan, and shall achieve acceleration through the Takt-based methods listed in Section 5.5 (zone adjustment, Takt time adjustment, work packaging, sequence adjustment, parallel trains supported by additional resources, etc.) before any reliance on crashing, mandatory overtime, or extended workdays.
41. On the tenth (10th) Business Day after execution of the Change Order (or such longer time as specified in writing by Owner), Contractor shall participate in a conference with Owner and any other Person Owner reasonably designates (including Subcontractors and Sub-subcontractors) to review and evaluate the Acceleration Strategy. Any revisions necessary as a result of this review shall be resubmitted as soon as reasonably practicable or as mutually agreed by the Parties.
42. The revised Acceleration Strategy shall then be the strategy that Contractor shall use in planning, organizing, directing, coordinating, performing, and executing that portion of the Work that is affected by such acceleration, with the existing Master Schedule governing all other Work.

Owner’s review of the Acceleration Strategy shall not constitute an independent evaluation or determination by Owner of the workability, feasibility, or reasonableness of that strategy.

C. Limitations

All Acceleration Strategies remain subject to the Owner Limitations on Recovery Direction in Section 5.5 and the prohibited practices listed in Section 6 of this Specification.

Article 8 — Project Controls

Commencing at LNTP, within fifteen (15) Days after the end of each quarter, Contractor shall provide Owner an Executive Progress Report suitable for presentation to Owner’s executive management and shareholders, in a form reasonably acceptable to Owner. These reports will be presented to Owner and discussed at a progress meeting to be held between Contractor Key Personnel and Owner Representative or his designee, and any other Persons designated by Owner, every three (3) Months. The Executive Progress Report shall include:

8.1 General

Contractor shall plan and program the Work and its resource requirements in accordance with the Project Schedule. The Project shall be planned, executed, and controlled within the Integrated Production Control System (IPCS), comprising the First Planner System® (pre-construction collaborative planning), the Takt Production System® (production planning, steering, and control), and the Last Planner® System (short-interval planning by the people doing the Work).

8.2 Project Controls Plan

Contractor shall produce a detailed Project Controls Plan for review by Owner within sixty (60) Days after Notice to Proceed. Owner will provide comments within ten (10) Business Days. The Project Controls Plan shall describe, at minimum:

How the Macro and Norm Level Production Plans will be created, maintained, and updated, including the Pull Planning sessions used to develop the Norm;
How the Last Planner® cascade — Pull Plans, Six-Week Lookahead, Weekly Work Plan, Day Plan — will be filtered from the Norm Level Production Plan as a single source of truth;
How daily Zone Control Walks will be conducted by superintendents and foremen, and how field as-built data will flow back into the Norm on a weekly basis;
How Constraints (Takt Steering) and Roadblocks (Takt Control) will be distinguished, escalated, and resolved, including the Identify-Discuss-Solve cadence in the meeting system;
How the Full Kit discipline will be applied at every Work start, with a documented six-point readiness check (materials, information, tools, scope, people, predecessor work);
How the meeting system in Section 7 will be operated;
How the Key Performance Indicators in Section 8 will be measured, displayed, and reviewed; and
How the Continuous Improvement cycle in Section 9 will be embedded into weekly production cycles.

8.3 Production Network and Work Breakdown Structure

The Work shall be planned, managed, monitored, and controlled by use of the Takt Production System® on a location-based Work Breakdown Structure. Detailed scheduling shall be performed exclusively in the Takt plans. Phase-based or deliverable-based Work Breakdown Structures shall not be used as the basis for the Master Schedule.

8.4 Takt Schedule Requirements

The Macro and Norm Level Production Plans shall together constitute the Master Schedule. The Norm Level Production Plan shall:

43. Include separate activities for each significant portion of the Work, including activities for mobilization, engineering, procurement, construction, commissioning, startup, testing, closeout, and demobilization;
44. Show the duration, start dates, and finish dates for each activity, and where applicable for each Takt wagon;
45. Show activity description and responsible Person (i.e., Contractor, Subcontractor, or Sub-subcontractor) for each activity and wagon;
46. Reflect logical relationships between activities with reasonable durations, and show an uninterrupted Train of Trades from LNTP through NTP, to Substantial Completion of ___ and Final Completion of ___;
47. Be consistent with the Project Schedule, including LNTP, NTP, and the Guaranteed Substantial Completion Date for ___;
48. Be based on a location-based Work Breakdown Structure, with the Project broken into properly leveled zones;
49. Have zones leveled by Work Density and proportioned according to the proper phase of the Project, within the Realized Flow Potential range stated in Section 5.4B;
50. Detail every repetitive sequence in a Takt phase with a stagger, trade flow, and staggered finish;
51. Include appropriate buffers within each Takt phase to manage the risks and anticipated execution variation for that phase, in accordance with Section 5.4B;
52. Comply with the Efficiency, Value, and Stability parametrics defined in Section 5;
53. Represent Contractor's best judgment as to how it shall complete the Work in compliance with the Project Schedule; and
54. Comply with all key requirements published at taktguide.com and with the Takt Production Standards in Section 5 of this Specification.

8.5 Path of Critical Flow

The Project’s spine is the Path of Critical Flow, defined in Section 2. The Path of Critical Flow runs from the start Milestone through the phase sequences, the Line of Balance, the buffers, and the Interdependence Ties to the Substantial Completion Milestone. The Path of Critical Flow shall be visible on the Master Schedule and shall be the basis for status reporting, slippage triggers under Section 5.5, delay analysis under Section 11, and time-extension claims.

The Path of Critical Flow always includes activity, duration, logic tie, sequence, Line of Balance, and buffer. A path defined without buffers is not a Path of Critical Flow under this Specification.

8.6 Progress Measurement

Contractor shall, until Substantial Completion of ___, develop and maintain systems and procedures for the measurement of progress against the Norm Level Production Plan. Progress shall be measured on the basis of actual Work completed in zones and wagons, captured through daily Zone Control Walks and reflected in the weekly Norm update. Progress reporting shall use the Key Performance Indicators set forth in Section 8 of this Specification.

8.7 Meetings; Weekly Progress Meetings; Minutes

Periodic meetings shall be held in accordance with the meeting system in Section 7 of this Specification, for the purpose of keeping Owner fully informed of all aspects of the Work, and for reviewing execution plans, technical and financial concerns, progress status and scheduling of the Work, remedial actions, quality concerns, safety concerns, interfaces, and Owner and Contractor plans for resolving issues.

Commencing with LNTP, weekly progress meetings will be held between Owner’s Representative or his designee, and any other Persons designated by Owner, and Contractor’s Key Personnel at the appropriate Stage 3 Site location, or as agreed by the Parties, Owner or Contractor home office. Owner and Contractor shall agree on dates, standardized reports, and agenda for such meetings well in advance as the Work demands.

Minutes of all progress-related meetings (including weekly and monthly progress meetings) shall be prepared by Contractor (unless otherwise agreed by Owner) and sent to Owner in electronic format within five (5) Business Days following the meeting. The contents of the minutes shall be subject to review at the next weekly progress meeting. The format for the preparation of the minutes shall be mutually agreed at the first meeting. Minutes shall, at a minimum, include decisions made, action items with responsibilities and dates, and the results of assigned actions outlined in the previous minutes, and shall be distributed to all attendees, Owner Representative, and in accordance with the document distribution matrix to be developed during the Project execution.

8.8 Monthly Progress Reports

Commencing with LNTP, Contractor shall provide a written Monthly Progress Report to Owner no later than ten (10) Days after the end of each Month. The Monthly Progress Report shall cover activities up through the preceding Month and shall be provided in MS Word format. Contractor shall provide Owner with the number of copies of such reports and shall arrange for the distribution thereof as Owner may reasonably request. Commencing with LNTP, a progress meeting shall be held each Month by Contractor at the Stage 3 Site or at an alternate site mutually agreeable to Owner and Contractor, at a mutually agreeable time, for the purpose of reviewing the Monthly Progress Report.

The Monthly Progress Report shall include, at a minimum:

55. Narrative summary of progress against the Norm Level Production Plan and the Macro Level Production Plan;
56. A description, as compared with the Master Schedule, of engineering, procurement, construction, commissioning, and testing status, including actual percentage complete versus planned percentage complete (measured by completed Takt wagons in completed zones), document status, significant activities accomplished during the reporting Month, significant activities planned for the current Month, and current estimated dates on which Substantial Completion of ___ shall be achieved;
57. Status of the Path of Critical Flow, with any phase or Independent Activity reporting ten (10) or more Days behind highlighted as a Section 5.5 trigger;
58. Status of all six Key Performance Indicators set forth in Section 8 of this Specification;
59. Status of buffer consumption, comparing remaining buffer to remaining duration on the Path of Critical Flow (the Remaining Buffer Ratio);
60. Status of Financial Completion, including any divergence between Substantial, Final, and Financial Completion forecasts;
61. Summary of Milestones planned and actually completed during the covered Month;
62. Change Orders pending and approved;
63. Description of any problems (including any occurrence of which Contractor is aware that could reasonably be expected to increase the cost of the Project or delay Substantial Completion beyond the Substantial Completion Date) and a summary of plans for resolution;
64. Status of the Risk and Opportunity Register, including any new risks identified during the reporting Month;
65. A description of the status of the Contractor's Permits, including the dates of Contractor's applications submitted or to be submitted and the anticipated dates of actions by Governmental Instrumentalities with respect to such Permits;
66. A description of reportable environmental, health, and safety incidents as well as any unplanned related impacts, events, accidents, reported near misses, or issues that occurred during the reporting period;
67. A description of all safety and security issues;
68. A description of quality assurance activities, including First-In-Place inspections completed, Follow-Up inspections completed, and Final inspections completed under Section 9 of this Specification;
69. Progress photos showing representative portions of the Stage 3 Site and the Work, including completed Milestones, with a description of the photograph and the date taken; and
70. All applicable information reasonably required by ___ and other Governmental Instrumentalities as identified in Section 9.0.

8.8 Monthly Progress Reports

71. Narrative summary of progress;
72. Update of the status of the Project, including a high-level summary Macro Level Production Plan view depicting current progress and projected Substantial Completion of ___;
73. Status of the Path of Critical Flow and the Remaining Buffer Ratio;
74. Progress photographs and other illustrations; and
75. Description of any problems and summary of plans for resolution.

8.10 Contractor Deliverables

[As provided in the Agreement.]

5. Takt Production Standards

All planning and execution under this Specification shall conform to the Takt Production Standards in this Section. These standards apply to the Macro Level Production Plan, the Norm Level Production Plan, all Pull Plans, Lookaheads, Weekly Work Plans, Day Plans, and any Recovery or Acceleration Strategy.

5.1 The Ten Commandments of the Takt Production System®

Every Takt plan prepared under this Specification shall comply with the following ten commandments. A plan that does not obey these commandments is not a Takt plan under this Specification, regardless of formatting:

76. The Takt plan is highly visual, clear, and easily understood.
77. The Takt plan is scheduled with rhythm, continuity, and consistency throughout.
78. The Takt plan is properly leveled according to Work Density and optimized using Little's Law.
79. The Takt plan is organized as Takt time across the top and Takt zone down the side — space on the left, time on the top.
80. The Takt plan uses One-Process Flow as the basis for production.
81. The Takt plan protects work, crew, and trade flow without stacking.
82. The Takt plan focuses on Roadblock removal ahead of the train and Constraint adjustment within the train.
83. The Takt plan focuses on quality by planning it first, building it right the first time, and finishing as you go.
84. The Takt plan includes the appropriate buffers to absorb the risks of the phase.
85. The Takt plan targets a reasonable overall total Project duration that will not hurt workers.

5.2 The Twelve Principles of the Takt Production System®

Contractor shall plan and operate the Project in accordance with the following twelve principles:

86. Always begin a schedule by identifying zones using zone density.
87. Always have a production plan you can see — one that is beautiful and clear.
88. Takt plans are made no later than schematic design, so they can protect the budget and duration.
89. The person building the job always makes or aligns with the Takt schedule.
90. Always have a production system, not just a schedule.
91. Cost, production, quality, and safety are all equal — but the schedule comes first, because it enables the rest.
92. A production plan is not functional without an effective way to manage procurement from the start.
93. The quality control plan is a flow system. Build it right, and you will go fast.
94. Master and study logistics. The logistics plan is part of the schedule.
95. The plan, the schedule, and the production system shall be complete and reviewed before leaving pre-construction.
96. Always protect trade flow.
97. Always be able to see the buffers compared to the end date.

5.3 Takt Rules of Flow (Production Planning)

Contractor shall plan and operate every phase in accordance with the following Rules of Flow:

Always maintain diagonal trade flow in a time-by-location format.
Do not irresponsibly dissolve logic ties — use real data and adjust ties.
Do not shorten durations without permission. Enable shorter in-zone cycle time through advanced design, pre-fabrication, delivery, logistics, and preparation.
Do not trade-stack or trade-burden.
Always work in One-Process Flow.
Always pre-kit work — do not start work unless it can be finished. Drawings, materials, tools, labor, information, and access must be confirmed in place before release (the Full Kit).
Always use buffers in the production plan.
Always have a Workable Backlog for Swing Capacity.
Never fix and freeze the plan to align with a baseline.
Always analyze the Path of Critical Flow, not a critical path. The Path of Critical Flow always includes activity, duration, logic tie, sequence, Line of Balance, and buffer.
Always work the trades in a train going the same speed and at an appropriate distance apart.
Flow by fixing problems — do not push trades to work faster.
Always align Work-In-Progress to capacity.

5.4 Takt Controls

Contractor shall implement the following Takt Controls in addition to the Rules of Flow:

98. The entire Project shall be broken into properly leveled zones.
99. The entire Project shall have zones proportioned according to the proper phase and within the Macro or Norm level range as measured by Realized Flow Potential.
100. All repetitive sequences shall be detailed in a Takt phase with a stagger, trade flow, and staggered finish.
101. Each Takt phase shall have appropriate buffers to cover and manage the risks and anticipated delays for the phase.
102. Takt phases shall comply with the Efficiency, Value, and Stability parametrics in Section 5.5.
103. Takt phases shall be monitored daily for Constraints, and Constraints shall be adjusted and reflected on the Takt plan to keep trades:

Working the SAME long-term plan;
Going the SAME direction;
Moving in the SAME sequence;
Providing the SAME amount of value (energy or effort) to each zone;
Doing the SAME amount of work or value in each zone;
Going the SAME speed at the SAME distance apart;
Receiving all needed resources to perform the work on time;
Being on the SAME team;
Working toward the SAME short-interval plan;
Giving the SAME level of respect and input as general; and
Flowing without stops and restarts.

5.5 Required Parametrics

Each Macro and Norm Level Production Plan, and any Recovery or Acceleration Strategy, shall conform to the following parametric ranges. The team shall verify these parametrics during preparation, during Fresh Eyes Reviews, during Time Impact Analyses, and during Recovery Strategy preparation.

Parametric	Required Range
Realized Flow Potential — Macro	30%–50%
Realized Flow Potential — Norm	50%–100%
Efficiency Parametric (Takt wagons ÷ Takt sequences)	0.3 to 3.0
Value Parametric (used Takts ÷ empty Takts)	0.5 to 2.5
Stability Parametric (train buffers ÷ end buffers)	0.5 to 2.0
Takt Wagon Buffers (% of sequence duration)	5%–20%
Calculated End Buffer placement	50%–75% at end of phase or consolidated at end of Project
Procurement Buffer on Lead Times	≥ 10%
Interdependence Ties (typical Macro count)	10–30

5.6 The Full Kit

Work shall not start unless it can be completed. Before any Takt wagon, sequence start, or zone start, Contractor shall verify the Full Kit — the six conditions that together make work ready to begin:

104. Materials are on site, in the right quantity and the right location;
105. Information is in the foreman's hands — current shop drawings, answered RFIs, and integrated Change Orders;
106. Tools and equipment are present, including hoists, scaffolds, power, and any specialty equipment;
107. Scope is defined and the Conditions of Satisfaction are clear, with quality criteria specified visually where possible;
108. People are assigned and present — right size, right skills, right leadership; and
109. Predecessor Work is genuinely complete — not “almost done” — and the prior trade has left the zone clean.
109. Predecessor Work is genuinely complete — not “almost done” — and the prior trade has left the zone clean.

If any one of the six conditions is not met, the Work does not start. The constraint shall be cleared by the team before mobilization, in accordance with the Section 7 meeting cadence.

5.7 Constraints vs. Roadblocks

Contractor shall maintain a clear distinction between Constraints (limitations inside the production system itself) and Roadblocks (temporary obstacles in the Project environment). The two are managed by different people through different cadences:

Constraints are addressed through Takt Steering — design and adjustment of the Takt plan by First Planners (project managers, superintendents, key trade leadership) in the First Planner meetings. Constraints are optimized, not removed.
Roadblocks are addressed through Takt Control — clearing of the environment ahead of the train by Last Planners (superintendents and trade foremen) in the Last Planner meetings. Roadblocks are removed, not optimized.

Treating Roadblocks as Constraints, or Constraints as Roadblocks, is prohibited. The two are not interchangeable, and the meeting system in Section 7 separates them deliberately.

5.8 Train and Material Discipline

5.9 Norm Level Production Plan — Prohibited Defaults

The Norm Level Production Plan shall not:

6. Prohibited Practices

The following practices are prohibited under any plan, schedule, recovery, or acceleration developed or maintained for this Project. These prohibitions protect flow, quality, safety, budget, and the people executing the Work, and they apply equally to Contractor, Subcontractors, Sub-subcontractors, and Owner-directed action.

Demand Work-In-Progress that exceeds capacity. Releasing more work than the available crews, materials, supervision, and space can absorb causes overload, dropped quality, and safety risk. Work-In-Progress shall be aligned to real capacity, with a buffer.
Trade-stack. Trade stacking — forcing multiple trades to work in the same area at the same time — creates congestion, safety hazards, interference between crews, and lost productivity. It is prohibited.
Trade-burden. Trade burdening — asking a single trade or crew to cover more areas or tasks simultaneously than is reasonable — stretches teams thin, drives travel time, increases variability and defects, and produces burnout. Scope shall be matched to capacity, not to the calendar.
Release work without a Full Kit. Activities shall not start before the six Full Kit conditions in Section 5.6 are confirmed. Starting without a Full Kit guarantees mid-task stoppages and cascading downstream delays.
Crash activities to recover the schedule. Crashing — accelerating activities by piling on labor, equipment, or overtime — typically increases cost, reduces quality, raises safety exposure, and triggers a downward productivity spiral. Recovery shall be achieved through the Takt-based methods in Section 5.5, not through bodies.
Strip out buffers or treat float as expendable. Variation is inevitable. Removing buffers makes the schedule brittle and turns ordinary issues into crises. Buffers shall be maintained and used deliberately, not erased to fabricate a tighter Path of Critical Flow. Buffers belong to the production team and are not Owner contingency.
Build the schedule in a silo. Plans created without input from the superintendents, foremen, and trades who will execute the Work produce plans the field cannot follow. The Norm Level Production Plan shall be developed collaboratively through Pull Planning.
Use the schedule as a weapon. The Master Schedule shall not be wielded to pressure, blame, threaten, or accuse contractors and trades. It is a coordination tool, not a legal cudgel.
Open more work fronts than the team can supervise. Sprawl across too many active areas spreads supervision thin and prevents work from being finished cleanly. Focus drops to approximately sixty percent (60%) with three areas and approximately twenty-five percent (25%) with five.
Force constant multitasking and context switching. Pulling crews from area to area destroys momentum and costs 15–45 minutes per switch per worker. Sequences shall be planned for One-Process Flow, not parallel chaos.
Lock the baseline and refuse to adapt. A baseline that cannot be updated as field conditions change becomes a liability rather than a guide. The Norm Level Production Plan shall be updated weekly from as-builts; rigidity is not the same as discipline.
Default to “add more labor” as the first response to slippage. Adding crew without planning, training, onboarding, and capacity analysis usually slows the Project further per Brooks’s Law. Capacity shall be increased intentionally and proactively — never as a reflex.
Push materials onsite ahead of need. Bringing materials too early creates excess inventory, drives motion and transportation waste, damages stored product, and starts a downward productivity spiral. Materials shall be pulled to align with installation.
Blame people for system failures. When projects struggle, the root cause is usually structural, not individual. The system shall be investigated before people are reassigned, replaced, or disciplined.
Use the Critical Path Method. The Critical Path Method is not a planning, scheduling, control, reporting, or as-built mechanism under this Specification. The Master Schedule is the Takt plans, and the Project’s spine is the Path of Critical Flow.

7. The Meeting System

The Project shall be supported by a connected meeting system that moves information from leadership to the field and back. Each meeting produces information that becomes the input for another meeting; meetings are not isolated events. Every meeting follows the Identify–Discuss–Solve discipline and is connected to the Norm Level Production Plan.

7.1 Strategic Planning and Procurement Meeting

Frequency: monthly. Purpose: long-term planning by the leadership team. Reviews the Macro Level Production Plan, procurement, Milestones, and Project risks. Removes long-term Roadblocks ahead of the train.

7.2 Team Weekly Tactical

Frequency: weekly. Purpose: align the Project leadership team. Reviews the Macro Level Production Plan, coverage plans, the Risk and Opportunity Register, key Project Milestones, safety and quality planning, and Owner priorities.

7.3 Trade Partner Weekly Tactical

Frequency: weekly. Purpose: connect the leadership team to the trades and create the Weekly Work Plan. Brings together the superintendent, engineers, and trade foremen. Follows a defined flow:

116. Shout-outs (positive culture);
117. Lightning round (quick updates);
118. Safety topics;
119. Review of the Norm Level Production Plan;
120. Review of last week's performance against commitments;
121. Review of current progress;
122. Creation of the Weekly Work Plan;
123. Six-Week Lookahead make-ready review; and
124. Roadblock identification and removal.

If this meeting is run correctly, most of the time is spent identifying and removing Roadblocks ahead of the train, not generating new commitments.

7.4 Daily Foreman Huddle

Frequency: daily. Purpose: plan tomorrow before tomorrow arrives. Reviews today’s progress, performs root-cause analysis on missed commitments, plans the next day, coordinates handoffs between trades, and identifies Roadblocks early.

7.5 Morning Worker Huddle

7.6 Crew Preparation Huddle

Frequency: daily, after the Morning Worker Huddle. Purpose: each crew prepares its specific Work — Lookahead review, weekly commitments review, day plan, Roadblock identification, and pre-task plans.

7.7 Zone Control Walks

Frequency: daily. Purpose: leaders walk the zones with foremen to confirm progress, inspect quality, prepare upcoming zones, identify Roadblocks, and support the crews. Each zone is at any time in one of three conditions: planning, building, or finishing. The discipline of the Zone Control Walk is to finish behind, build now, and prepare ahead.

7.8 Team Daily Huddle

Frequency: daily. Purpose: project leadership reviews yesterday, identifies priorities for today, and rapidly removes Roadblocks the field cannot solve alone.

8. Key Performance Indicators

Contractor shall measure and report the following six Key Performance Indicators throughout the Project. These are leading indicators that reflect flow, coordination, and production stability. Each is reviewed in the Trade Partner Weekly Tactical and reported in the Monthly Progress Report.

Indicator	Type	Target	Definition
Pre-Construction Meetings Held On Time	Quality	≥ 80%	Percentage of trade-partner pre-construction meetings held before mobilization to a zone, in accordance with the trade preparation cascade in Section 9.
Crews Installing With Quality Visuals	Quality	≥ 80%	Percentage of active crews installing Work using a current Installation Work Package and the associated visual quality criteria.
Remaining Buffer Ratio	Flow / Production	Trending stable or improving	Remaining schedule buffer compared to remaining duration on the Path of Critical Flow. A declining ratio is a Section 5.5 trigger before any phase reaches 10 Days behind.
Perfect Handoff Percentage	Flow / Production	≥ 80%	Percentage of trade handoffs in which the Conditions of Satisfaction are met, the area is clean, scope is complete, and the next trade can start immediately.
Percent of Promises Complete (PPC)	Flow / Production	≥ 80%	Percentage of weekly commitments made in the Trade Partner Weekly Tactical that are fulfilled in the corresponding week.
Roadblock Removal Average	Flow / Production	Positive and increasing	Average time between Roadblock removal and the date the Roadblock would have impacted production. Negative early; targeted to grow into days or weeks ahead of impact.

Key Performance Indicators are leadership tools, not weapons. They shall be used to identify problems, support trade-partner success, and drive continuous improvement under Section 9. They shall not be used to discipline the field or to displace the Section 5.5 Recovery Strategy process.

9. Continuous Improvement, Quality Control, and Trade Preparation

9.1 Continuous Improvement Cycle

The Project shall operate on the Plan → Build → Reflect → Improve cycle, with each Takt cycle treated as an opportunity to compare performance, identify waste, test improvements, and standardize gains. Continuous improvement is the responsibility of every team member; the Norm Level Production Plan, the Installation Work Packages, and the Conditions of Satisfaction shall be updated as improvements are confirmed.

9.2 Quality at the Source

Defective Work shall not move forward. When a defect is discovered, the responsible crew shall stop and correct it before the next trade enters the zone. Acceptance of defective Work by the next trade is prohibited. The Andon discipline shall be honored — workers and foremen who surface a problem are to be supported, not punished.

9.3 Trade-Partner Preparation Cascade

Every trade partner shall move through a structured preparation cascade before installation begins:

Each step shall be documented and reflected in the Pre-Construction Meetings KPI under Section 8.

9.4 Installation Work Packages and Visual Standards

Each crew shall install Work using a current Installation Work Package containing visual checklists, step-by-step installation visuals, and the Conditions of Satisfaction for the scope. Work Packages shall be updated as continuous improvement findings are confirmed in the field.

9.5 Zone Control and Finishing-As-You-Go

Field leadership shall maintain Zone Control consistent with Section 7.7. Crews shall finish as they go: complete the Work in the zone, address any small items immediately, and leave the zone clean and ready for the next trade. Punch lists generated by leaving Work unfinished are prohibited.

9.6 Daily Correction Discipline

Leaders shall practice daily correction — small Project-environment issues (housekeeping, layout damage, blocked pathways, scaffold or rail issues, debris) shall be addressed within hours, not days. Daily correction is the visible signal that standards are being protected.

9.7 Contractor Grading

Trade-partner performance shall be transparently graded against criteria including cleanliness, delivery planning, attendance at coordination meetings, safety compliance, and participation in the plan. Contractor’s general-contractor performance shall be graded by the trade partners on equivalent criteria (jobsite organization, plan clarity, material support, etc.). Grading shall be visible to all parties and shall be used to drive improvement, not punishment.

10. Audience and Visibility Tiers

Visibility into the production system shall be tiered as follows, to ensure each audience receives information at the appropriate level of detail.

Owner

Receives the Macro Level Production Plan, the Monthly Progress Report, and the Quarterly Executive Progress Report.
On request, receives the Norm Level Production Plan, KPIs, and Risk and Opportunity Register at the cadence established in the Project Controls Plan.

Superintendents and Trade Partners

Receive the full cascade: Macro → Norm → Pull Plans → Six-Week Lookahead → Weekly Work Plan → Day Plan.
Participate directly in the Trade Partner Weekly Tactical, the Daily Foreman Huddle, and the Zone Control Walks.

Field Teams

Work daily from Pull Plans, the Six-Week Lookahead, the Weekly Work Plan, and Day Plans, supported by Takt visuals and Installation Work Packages.

11. Project Delays and Time Impact Analysis

Delays shall be identified, absorbed, and (where necessary) submitted through the Path of Critical Flow process described below. There is no separate CPM time-impact mechanism under this Specification.

11.1 Process for Showing or Submitting a Delay

Start Milestone;
Current date;
Substantial Completion Milestone;
Phase sequences;
Phase buffers and project buffer;
The Line of Balance for each phase; and
Interdependence Ties.

132. Identify the impact of the delay on the Project by showing it on the Norm Level Production Plan without trade stacking or trade burdening.
133. Determine whether the delay can be absorbed using the methods listed in Section 5.5 (Stop and swing; Stop, wait, and prepare; Pull onto separate Pull Plan or scrum; Pull car onto its own Takt time; Recover within wagon; Swarm with Swing Capacity; Carefully delay an individual train).
134. Determine whether the team can adjust zones, packaging, sequence, or labor leveling to absorb the delay without violating Section 5 or Section 6.
135. If all reasonable absorption strategies have been exhausted, prepare a Time Impact Analysis (TIA) consisting of:

A summary of the impact;
A printout of the entire Norm Level Production Plan;
A windowed view showing the impact and how it affects the Substantial Completion Milestone;
The mitigation methods the project team has attempted;
An analysis of the Path of Critical Flow before and after the impact;
A description of requested time and cost; and
A list of all other known options to mitigate the problem.

11.2 Time Impact Analysis Review

The TIA review shall demonstrate the impact and the Path of Critical Flow after the impact. Each of the following reviews shall be performed to verify the Path of Critical Flow past the delay:

136. Review of the dependence of the delay on successor activities, work packages, and wagons;
137. Review of the Line of Balance for all phases. The Realized Flow Potential percentage for all phases must be between forty-five percent (45%) and one hundred percent (100%) for the path to be considered optimized;
138. Review of all base sequences in all phases to ensure they have been coordinated, parallelized, and optimized for accurate durations;
139. Review of all phase buffer durations to ensure there is a logical relationship between the anticipated normal risks of the phase and the number of buffers for that phase. If there are more buffers than needed, they shall be removed for the path to be considered critical;
140. Review of the parametrics in Section 5.5 (Efficiency, Value, Stability, Realized Flow Potential) to confirm the post-impact plan remains within range; and
141. If the connection between the start (or NTP) Milestones, Independent Activities, Lines of Balance, phase sequences, buffers, and Interdependence Ties to the Substantial Completion Milestone is confirmed reasonable and within the specified parameters, the delay shall be considered reasonable.

12. Takt Development Checklists

Contractor shall use the following checklists during preparation of the Macro and Norm Level Production Plans. These checklists are the minimum process for plan development; Contractor’s Project Controls Plan may add to them but shall not subtract from them.

12.1 Macro Level Production Plan — Development Checklist

142. Identify the target start and end date.
143. Study the drawings.
144. Identify the general flow of the Project.
145. Identify phases.
146. Perform a rough Work Density analysis.
147. Identify initial zones.
148. Identify constraints the team must work around.
149. Get an idea of the number of Takt wagons in each phase.
150. Check zones with the Takt Calculator and confirm the result is in range.
151. Get production rates for all activities.
152. Package sequences for the Macro Takt Plan, with 5–20% buffer inside each wagon.
153. Create the overall plan with Interdependence Ties and supporting content.
154. Hold an internal Fresh Eyes meeting.
155. Create the initial procurement log to ensure materials support the plan.
156. Create the initial logistics drawing.
157. Hold a Fresh Eyes meeting with the wider Project team.
158. Verify Milestones.
159. Verify overall total Project duration.
160. Add any needed buffers.
161. Format the plan beautifully and incorporate corrections from the Fresh Eyes meeting.
162. Create a Basis of Schedule narrative.

12.2 Norm Level Production Plan — Development Checklist

163. Create the Norm-level format.
164. Optimize every phase for optimal production.
165. Establish a backup production speed.
166. Pull-plan sequences with the trades.
166. P167. Work-package phases with updated Takt time and zone configuration, with 5–20% buffer inside each wagon.ull-plan sequences with the trades.
168. Perform a Work Density analysis of the zoning.
169. Perform a risk analysis.
170. Add phase buffers and the calculated end buffer.
171. Add quality triggers.
172. Update logistics drawings.
173. Update zone maps.
174. Update procurement log.
175. Create trailer graphics and signage.
176. Create the Six-Week Lookahead format.
177. Create the Weekly Work Plan format.
178. Develop work steps.
179. Create the meeting schedule.
180. Analyze the schedule-health parametrics from Section 5.5.
181. Create the KPI reporting process.
182. Create Roadblock tracking maps.
183. Add a Takt Point of No Return (TPNR).
184. Hold a Fresh Eyes meeting prior to issuance.

13. Compliance Checklist

The following checklist summarizes Contractor’s recurring scheduling obligations under this Specification. It is intended for use at submission, monthly review, and audit.

Trigger / Cadence	Required Action
Within 15 Days of NTP	Macro Level Production Plan submitted; Realized Flow Potential 30%–50%; Path of Critical Flow identified; initial procurement log, logistics drawing, and Risk and Opportunity Register submitted; internal Fresh Eyes Review completed; Basis of Schedule provided.
Within 30 Days of NTP	Norm Level Production Plan submitted; pull-planned with trade partners; all work packages included; Realized Flow Potential 50%–100%; Efficiency, Value, and Stability parametrics within range; supply chain buffers and end buffers documented; Fresh Eyes Review completed.
Within 60 Days of NTP	Project Controls Plan submitted, including Full Kit procedure, Takt Steering / Takt Control distinction, meeting cadence, KPI procedure, and continuous improvement cadence.
Daily	Zone Control Walks; Daily Foreman Huddle; Morning Worker Huddle; Crew Preparation Huddles; Constraints adjusted; Roadblocks removed; trades flowing in train at the same speed and the same distance apart; Work-In-Progress aligned to capacity; daily correction of Project-environment issues.
Weekly	Norm Level Production Plan updated from as-builts; Trade Partner Weekly Tactical held with Identify–Discuss–Solve cadence; Six-Week Lookahead reviewed; Weekly Work Plan committed; KPIs updated; Risk and Opportunity Register updated; Macro reference plan reconciled.
Monthly	Strategic Planning and Procurement Meeting held; Monthly Progress Report delivered within 10 Days of month end; progress measured from completed Takt wagons in completed zones; Path of Critical Flow status, Remaining Buffer Ratio, and KPI status reported.
Quarterly	Executive Progress Report delivered within 15 Days of quarter end; Milestones re-scheduled if necessary; Macro Level Production Plan updated by Change Order if and only if the underlying scope or Milestones have changed.
On Slippage ≥ 10 Days on the Path of Critical Flow	Recovery Strategy prepared within 10 Business Days following the Section 5.5 hierarchy; Owner Limitations on Recovery Direction observed.
On Confirmed Acceleration Directive	Acceleration Strategy prepared within 10 Business Days using Takt-based methods before any reliance on overtime.
On Delay Claim	Time Impact Analysis prepared per Section 11; Path of Critical Flow re-verified; Line of Balance, buffers, and parametrics reviewed.

14. Closing Provisions

This Specification is to be read together with the Agreement. To the extent of any conflict between this Specification and a body provision of the Agreement, the body provision of the Agreement shall control unless this Specification expressly states otherwise. References to taktguide.com, the First Planner System®, the Last Planner® System, and the Takt Production System® are to the public methodologies of those systems as in effect on the Contract Date.

Source basis. The substantive content of this Specification is derived from the Takt Production System® as set forth by Jason Schroeder in The Takt Production System® — A Complete Operating System for Flow in Construction (Elevate Construction, 2026), and from the companion guidance The 10 Myths of CPM: How the Critical Path Method Systematizes Disrespect for People (2025), together with the Takt Rules of Flow for Production Planning published by Elevate Construction.