Case Study: Subcontractor Equipment Mismanagement Causes Excavation Delays in Colorado (2019)

Project Overview
• Name: I-70 Mountain Corridor Reconstruction
• Location: Denver, Colorado
• Year: 2019
• Project Size: $500 million
• Scope: Highway reconstruction involving extensive rock excavation and bridge work
• Lead Agencies/Contractors: Colorado DOT /

Category of the Issue, Problem, or Challenge
• Subcontractor Management
• Equipment & Scheduling

Summary of the Issue, Problem, or Challenge
Subcontractor’s failure to properly maintain and mobilize excavation equipment caused repeated breakdowns, resulting in substantial project delays.

Root Cause Analysis

• Poor preventive maintenance schedule by subcontractor’s equipment team.
• Ineffective communication about equipment status to prime contractor.
• Subcontractor underestimated equipment needs and backup planning.
• Inadequate contractual clauses regarding equipment readiness and downtime penalties.

Impacts Due to the Issue, Problem, or Challenge

• Excavation delays caused 4-month schedule slippage.
• Increased costs due to idle labor and equipment rental extensions.
• Loss of project momentum and subcontractor reputation damage.

Corrective Actions Taken

1. Enforced stricter subcontractor equipment maintenance and reporting protocols.
2. Established equipment downtime penalties in subcontract agreements.
3. Added prime contractor oversight for equipment readiness and utilization.
4. Required subcontractor contingency plans for backup equipment availability.

Lessons Learned

• Equipment management by subcontractors directly impacts project schedules.
• Contractual clarity on equipment maintenance and penalties prevents delays.
• Communication and real-time reporting on equipment status are essential.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Does the subcontractor have a preventive maintenance program?
• Are equipment downtime and readiness tracked and reported daily?
• Are contractual provisions in place for equipment-related delays?