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Comparing cost of delay without presenting it as certain loss

When a deliverable slips, management may consider paying to accelerate it.

Representative research photograph: Comparing cost of delay without presenting it as certain loss
Photo: Pipikaki2 · License: CC0 · Cropped and resized.
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When a deliverable slips, management may consider paying to accelerate it. Assigning one loss figure to every day of delay can oversimplify complex dependencies. Sponsors should distinguish actual operational consequences from uncertain commercial assumptions before deciding whether an acceleration proposal is useful.

Decision framework

Identify whether the delayed activity lies on the critical path and what it prevents. Show additional service cost, resource opportunity cost and hypothetical commercial effects separately. Appropriate experts should assess participant and scientific consequences; priorities must not be set through a financial multiplier alone when those considerations are relevant.

Worked example

For example, a report draft is five days late while the underlying analysis will not be ready for another two weeks. Additional writing resources could increase cost immediately without improving final delivery. The team exposes the real dependency and addresses analysis readiness first. The decision could differ if the same delay affected an external submission plan.

Implementation checks

  • Identify the next activity blocked by the delay and document feasible alternatives with the available supporting evidence.
  • Display direct additional expenditure separately from hypothetical opportunity losses and make uncertainty visible in the comparison.
  • Test with activity owners whether the acceleration proposal actually removes the dependency driving the final delivery date.

Acceptance and boundaries

Accept the comparison when decision-makers understand the origin of financial values and which outcomes remain uncertain. Numerical presentation does not turn an assumption into an observed fact. Also assess whether essential review, training and participant-protection steps would remain intact under the proposed acceleration arrangement.

Frequently asked questions

Do delays of equal length create equal cost?
No. Dependencies and alternatives can make their consequences very different.
Will adding people always reduce duration?
No. More capacity may not resolve a bottleneck caused by missing inputs or an outstanding authorised decision.

Sources

  1. EMA — ICH E6 good clinical practice
  2. WHO — Guidance for best practices for clinical trials