The Schedule Basis Memorandum: Types of Information to Include in the Document

This is the second blog post in a six-part series about the schedule basis memorandum. The first post defines the schedule basis memorandum and discusses its key purpose for CPM scheduling, and this second post identifies information to include in the document. The third post identifies considerations for common risks that may cause delay on large and complex EPC projects, and the fourth post focuses on three of those risks: competing project considerations, owner review comments, and weather considerations. The fifth post discusses common risks associated with labor camp size considerations, and the sixth post discusses labor camp catering and other service risks.

Information to Include in a Schedule Basis Memorandum
Two AACE International publications provide valuable input regarding the general topics to be included in a schedule basis document.¹ Consistent with these publications, the major subject headings for a schedule basis memorandum should include an introduction, an overall executive summary, a discussion of the current project status, a basis of schedule assumptions for the major phases or areas of the work, and an assessment of schedule risks. Table 1 provides a summary sample table of contents with typical section headings for a schedule basis memorandum.

Table 1
Summary Sample Table of Contents for a Schedule Basis Memorandum

The detail and depth of discussion for each of the above sections depends on the size and scope of the project. For example, a small-scope project with a short, planned duration may not require a detailed schedule basis discussion. Moreover, if the contractor is developing a baseline schedule, not much discussion may be necessary for Section 3, “Current Project Status,” when the project has not recorded any progress. In contrast, large and complex EPC projects usually require a more in-depth schedule basis document that provides substantially more detailed explanations and discussions. Table 2 presents an expanded sample table of contents for potential topics to include in a more detailed schedule basis memorandum.

Table 2
Expanded Sample Table of Contents for a Detailed Schedule Basis Memorandum

In general, more detail is better when documenting the schedule basis for large and complex EPC projects. Even if no discussion is needed for a particular sub-section, an added benefit of the expanded Table of Contents is that it also serves as a check list for the contractor and owner to further ensure that all relevant topics have been addressed, when applicable. It also serves as a reminder to evaluate these topics as to whether the schedule basis document needs updating during project execution.

¹    AACE International’s PS.18, Scheduling Management: Schedule Basis Memorandum, by H. Lance Stephenson, CCC, 2007 AACE International Transactions; and AACE International’s Recommended Practice 38R-06, Documenting the Schedule Basis, June 18, 2009.

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