Beruflich Dokumente
Kultur Dokumente
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COURSE OBJECTIVES
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WHY ARE DELAY AND DISRUPTION CLAIMS PREPARED?
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WHY ARE DELAY AND DISRUPTION CLAIMS COMMON?
Because there are a lot of stakeholders, who impact the project in different ways…
The Challenge: Wading through all the possible causes for overruns, and
coming up with a defendable argument.
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THE STEPS IN BUILDING A DELAY/DISRUPTION CLAIM
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WHAT WON’T WORK…
Find the difference between the planned budget and actual cost on
the project;
List a bunch of reasons why this happened and why one is not
responsible.
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DELAY VS IMPACT DAMAGES
Delay Damages are costs associated with project taking longer.
Supported through a Critical Path Analysis
Typically includes Extended General Conditions Costs, Escalation, Unabsorbed Home Office
Overhead, etc.
Delay Damages are usually additional “management” or “indirect” costs of construction
Impact Damages relate to caused resulting from inefficiencies and
disruption to the actual work being performed.
A study of labor and equipment cost overruns across the construction activities;
Typically is related to increases in direct cost of construction;
Consists of all calculating inefficiency costs across schedule activities, not only critical path items;
Requires a considerable level of analysis and issues identification (need good records);
Impact costs could also include added management resources on highly impacted projects.
Acceleration costs can result from both, and can impact productivity
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DELAY DAMAGE CLASSIFICATION
In order to quantify damages, the critical path delays must be classified
into the following:
Critical Delay: A “driving” delay impacting the critical path, typically
caused by a single party for a period of time. This type of delay is
“Excusable, Compensable”.
Concurrent Delay: Multiple delays delaying the critical path of the project
at the same time, typically caused by both the claimant party and the
defendant party. This type of delay is considered “Excusable, Non-
Compensable.”
Non-Critical Delay: A delay that did not cause a delay to the end date of
the project. This type of delay is considered “Non Excusable, Non
Compensable”. While Delay damages can’t be assessed for this,
impact/inefficiency damages can be.
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CALCULATING DELAY DAMAGES
EXTENDED GENERAL CONDITIONS
Requires that a Critical Path Analysis has been performed and delay
days have been allocated.
Only project delays that are both A) proven critical path delays and B) caused wholly by the other
party, are compensable;
Concurrent Delays will only extend the time for which LD’s can be incurred, with no compensation
for extended general conditions.
Need to multiply number of delay days by each line item’s daily cost
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CALCULATING DELAY DAMAGES
EXTENDED GENERAL CONDITIONS
EXAMPLE: Project is delayed 354 days, of which the Contractor has determined the Owner is
responsible for 273 days of critical path delay.
* Project personnel items should align with the original planned personnel
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CALCULATING DELAY DAMAGES
EXTENDED GENERAL CONDITIONS
* Extra Costs for Heavy Duty Construction Equipment for critical path items can be included here.
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CALCULATING DELAY DAMAGES
ESCALATION
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CALCULATING DELAY DAMAGES
ESCALATION
Determining the planned labor hours (broken out by labor classification) for the work performed in
the delay period would be the easiest way, but sometimes we don’t have that info. broken out.
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CALCULATING DELAY DAMAGES
UNABSORBED HOME OFFICE OVERHEAD
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CALCULATING DELAY DAMAGES
UNABSORBED HOME OFFICE OVERHEAD
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QUESTIONS?
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CALCULATING IMPACT AND INEFFICIENCY COSTS
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HOW TO ANALYZE DIRECT COST
ORGANIZING AND CLASSIFYING COSTS
In a perfect world, one would be able to calculate planned and actual cost
by schedule activity, broken out by equipment, labor and material for
each;
This is typically not the case due to time and informational constraints, so
attempt to align costs for each activity contained in a level 2 schedule.
Try to classify costs in a spreadsheet with the following field populated:
Cost Type: Labor, Equipment, Material
Corresponding Schedule Activity Location
Corresponding Schedule Activity Trade/Scope
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HOW TO ANALYZE DIRECT COST
IDENTIFYING AND ANALYZE COST OVERRUNS
For each cost line item, strive to compare planned versus actual cost
Highlight variances that warrant investigation;
Study plan versus actual duration, manpower for each;
For each item, determine causation for cost variance(s):
‒ Stop and go operations ‒ Poor Performance
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SETTING UP THE AS PLANNED SCHEDULE INTO A VISUAL DATABASE
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ADDING DAILY REPORT DATA INTO A VISUAL DATABASE
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CONVERTING DAILY REPORT DATA INTO PERFORMANCE METRICS
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HOW TO ANALYZE DIRECT COST
IDENTIFYING AND ANALYZE COST OVERRUNS
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HOW TO ANALYZE DIRECT COST OVERRUNS
CALCULATING THE INEFFICIENCY COST
Most of the time, contractor’s are not compensated by simply requesting the
cost variance of activities;
Why? Because Owners will argue that it was not the sole cause for
performance impacts.
As a result, the claimable variance is often determined through the “Measured
Mile” approach.
The “Measured Mile” approach compares performance in un-impacted areas,
with performance impacted areas.
The % difference between productivity factors in un-impacted vs. impacted is
what is requested.
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HOW TO ANALYZE DIRECT COST OVERRUNS
CALCULATING THE INEFFICIENCY COST
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QUESTIONS?
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ACCELERATION
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SUBCONTRACTOR CLAIM REVIEW
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QUESTIONS?
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PRESENTED BY: MICHAEL PINK
Contact Info:
C: 404 277 4387
O: 404 329 3000
mpink@construxsolutions.com
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