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Construction Loss of Productivity Experts

In the construction industry, it is largely agreed that delays, multiple changes, out-of-sequence work, overtime work, and other disrupting events adversely affect labor productivity.

Quantum and Damages Analysis Services: Cost-Based Engineering & Construction Claims Brochure

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Our experts have prepared and/or analyzed loss of productivity claims on some of the largest construction disputes in the world.

In the construction industry, it is largely agreed that delays, multiple changes, out-of-sequence work, overtime work, and other disrupting events adversely affect labor productivity. However, there is no universally accepted method for estimating the resulting loss of productivity, and certain of the studies used to estimate such losses have been subject to criticism by industry experts and the courts.

Delays and impacting events often cause the contractor to work overtime, perform work out of its planned sequence or in parallel rather than in series, work in weather conditions that are less favorable than it reasonably planned, work in crowded conditions, employ multiple shifts, etc., all in an effort to make up time to mitigate delay. When there are multiple changes and impacting events on a project and they act in sequence or concurrently, there may be a cumulative effect of the individual changes and impacting events that is much greater than a sum of the individual parts. Multiple change orders and other types of owner-caused delays and disruption, as well as contractor-caused and force majeure delays and disruption, can negatively impact the contractor’s performance of unchanged work such that a contractor expends additional time, man-hours, and costs in completing its “unchanged” base scope work. These disruptions often result in the contractor submitting delay and labor productivity loss claims.

To determine the contractor’s entitlement to construction labor productivity loss claims, or to defend against such claims, a detailed assessment of contemporaneous man-hours and installed quantities, the timing of changes and impacting events, and an allocation of responsibility for the various causes of delay and disruption is often necessary.

Long International’s loss of productivity experts employ numerous methods to analyze, demonstrate or disprove a contractor’s entitlement to recovery of increased costs as a result of engineering and/or construction labor productivity loss caused by delays and impacting events for which the owner and/or the contractor may be responsible.  If a negotiated settlement of a loss of productivity claim is not reached, our loss of productivity experts have testified in both domestic and international arbitration and litigation proceedings involving the complex issues of labor efficiency and productivity loss.

Our methods for performing loss of productivity analyses are consistent with those set out in:

These methods include:

Our quantum experts also have expertise in Dynamic Simulation Analysis and System Dynamics, and have analyzed what was purported at the time (2017) to be one of the largest and most complex Dynamic Simulation models ever created.

Once the contractor’s various heads of claim are identified, evaluated for entitlement, and quantified, we may utilize various methods of presenting such damages, depending on the contract terms, legal issues, and availability of data and documentation.

Our methods of preparing or evaluating the contractor’s claim for damages including loss of productivity damages are described in our article Discrete Damages/Cost Variance Analysis Method for Quantifying Damages in Construction Claims and include:

For a discussion about labor loss of productivity, please view our article A Reasonable Method to Estimate Loss of Labor Productivity Due to Overtime.

Construction Claims Methodology—Cost/Damages Matrix

Quantum and Damages Experts: Cost-Based Engineering and Construction Claims

Combining engineering analyses and fact finding with cost accounting and cost-variance analysis produces a well-supported and compensable claim or presents a strong defense against a claim’s validity.

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Our extensive international experience includes large, complex, grass roots, revamp, and reconstruction projects incorporating conventional-phased, fast-track, and EPC turnkey concepts.