Managing Construction Claims

 

“

Claims” Calvey Consulting, LLC 8473 Settlers Passage Cleveland, OH 44141 440-740-1132

 

  . What is Typical Claim   Claim.  

.

What are Accepted Methods of Analysis

Calvey Consulting, Consulting, LLC 440-740-1132

 

W y are Construct on C a ms D spute ?  

.

The Claims are loosely documented.  

.

There is an honest difference in opinion. .

Calvey Consulting, Consulting, LLC 440-740-1132

 

What is a “Typical Construction Claim”?  –    Money

Source Sou rce of of the the Dis Disput pute e – Third Third Pa Party rty

Calvey Consulting, Consulting, LLC 440-740-1132

 

What does a Claims Consultant use to develop his analysis? Project Schedules   Certified Payrolls   Daily Logs

Calvey Consulting, Consulting, LLC 440-740-1132

 

What are the Key Components of a Typical Contractor’s Claim?   The Actual Schedule   Impact on the Contractor   

Calvey Consulting, Consulting, LLC 440-740-1132

 

Methods of Delay Analysis T me Impact Ana ys s    Adjusted As Built

Constructive Acceleration

Calvey Consulting, Consulting, LLC 440-740-1132

 

Calculating Damages   Extension of Home Office Overhead

Loss of Productivity

Calvey Consulting, Consulting, LLC 440-740-1132

 

AAC AACE E - Pu Purp rpos osee of Re Recom comme mend nded ed Practice   Methodologies Rank Ra nk Orde Orderr the the Me Meth tho odo dolo lo ies ies Define and Discuss Each Methodology   Methodology

Calvey Consulting, Consulting, LLC 440-740-1132

 

 

Project Comparison Studies   General Industry Studies  

Calvey Consulting, Consulting, LLC 440-740-1132

 

    = Output (units completed)  

 Actual Productivity Productivity

 

Calvey Consulting, Consulting, LLC 440-740-1132

 

  Crowding of labor or stacking of trades   Learning Curve    Adverse or unusually severe weather   

Calvey Consulting, Consulting, LLC 440-740-1132

 

  , , multiple changes and rework Defective en ineerin

rec cle and/or rework

 Absenteeism and the missing man syndrome   Material, tools and equipment shortages  

Calvey Consulting, Consulting, LLC 440-740-1132

 

  Earned Value Analysis   Craftsmen Questionnaire Sampling Method How long is it?

Calvey Consulting, Consulting, LLC 440-740-1132

 

   –  Mea Me asured su red Mil ile e

10 Miles Miles of p pipe ipe in install stalled ed – 1,00 1,000 0 manhours manhours 100 manhours/mile Impact

4 Mil Miles es of pipe installed installed – 640 manho manhours urs 160 manhours/mile Loss of Product Productivity ivity

  x4 miles   Calvey Consulting, Consulting, LLC 440-740-1132

 

  Mea Me asured su red Mil ile e

70% Labor Labor Complete Complete – 1,000 1,000 manhour manhours s 14.3 manhours/1% Impact

30% Labor Labor Com Complete plete – 640 manhours manhours 21.3 manhours/1% Loss of Product Productivity ivity

  30%   Calvey Consulting, Consulting, LLC 440-740-1132

 

  Earned Value Analysis   Craftsmen Questionnaire Sampling Method How long is it?

Calvey Consulting, Consulting, LLC 440-740-1132

 

  Comparable Project Study

Calvey Consulting, Consulting, LLC 440-740-1132

 

  Changes, Cumulative Impact and Rework   Overtime and Shift Work   Project Management

Calvey Consulting, Consulting, LLC 440-740-1132

 

 

Overtime Impact on Productivity

Calvey Consulting, Consulting, LLC 440-740-1132

 

  100

  y 80   c   n   e    i   c 60    i    f    E    %40

0 - 20

- 10

0

10

20

30

40

50

60

70

ec v e em p er er a u re re Calvey Consulting, Consulting, LLC 440-740-1132

80

90

100

 

Weather Impact on Productivity (NECA Studies)  

ec ve empe mpera ur ure e

a ang nge e

Efficiency

%

+40 to 80

100

-20 to +20

20 – 95

80 to 100

85 - 60

Calvey Consulting, Consulting, LLC 440-740-1132

 

  Dail Lo Documentation Frequency (AM, Noon, PM) Temperature Wind Precipitation (rain, snow, sleet) xcess ve um y

Historic Data   . (NOAA) (NOA A) – National National Clima Climatic tic Data Center  Center 

Calvey Consulting, Consulting, LLC 440-740-1132

 

   

 – 

.

Busi Bu sine ness ss Roun Roundt dtab able le – 1980 1980  

National Electrical Contractors Assn.  

.

Constr Con struct uction ion Indus Industry try Insti Institut tute e – 1988 1988  

,

Costt Engin Cos Engineer eering ing Comp Composi osite te - 2004 2004 Calvey Consulting, Consulting, LLC 440-740-1132

 

  NECA Study 100

  e   v    i    t   c   u    d   o   r    P    %

90 80 70

50 40 30 1

2

3

4

5

6

7

8

Calvey Consulting, Consulting, LLC 440-740-1132

9

10 10

11

12

 

  Days – hours per day

Productivity Range 2 wks to 12 wks

5 - 10’s

95 %

to

70 %

6 - 10’s

91 %

to

62 %

5 - 12’s

85 %

to

52 %

6 - 12’s 7 - 12’s

75 % 70 %

to to

45 % 40 %

Calvey Consulting, Consulting, LLC 440-740-1132

 

  . . Impact Evaluation Guide Mechanical Contractor’s Association of  America National Electrical Contractor’s Association Estimating Guides

Calvey Consulting, Consulting, LLC 440-740-1132

 

  16 Factors  

NECA  

Norm No rmal al – Diffi Difficu cult lt – Most Most Diffi Difficu cult lt

  Number of Factors No Lo Lon er Pu Published Calvey Consulting, Consulting, LLC 440-740-1132

 

  Modified Total Labor Cost Method  

Calvey Consulting, Consulting, LLC 440-740-1132

 

40,000  Actual Production Production

32,668 30,000    t   n   e   c   r   e    P   r   p   s   r   u   o    h   n   a    M

20,000

60% Comp Comp lete: 14,76 14,762 2 Manhou rs

10,000

     %      0      1

     %      0      2

     %      0      3

     %      0      4

     %      0      5

     %      0      6

Calvey Consulting, Consulting, LLC 440-740-1132 Percent Percent based on Foundation Concrete

     %      0      7

     %      0      8

     %      0      9

     %      0      0      1

 

CaseBCA (A) – Clark Concr Concrete Contractor actors, s, Court Inc., 99-1 ¶30,280 [1] ete Contr “ The The Gov Gover ernm nmen entt is corr correc ectt in in ass asser erti tin n that that th the e wor work k performed during the periods compared by [the Contractor] was not identical in each period. We

periods beingproject, compared is ever identical onnot a be; the construction howeve however. r. And it need ascertainmentt of damages for labor inefficiency ascertainmen i nefficiency is not susceptible to absolute exactness. (Citation omitted). We wi willll acce acce t a com com aris ariso on if if iitt iis sb be etwe tween kin kinds ds of work which are reasonably alike, such that the approximations it involves will be meaningful.” Calvey Consulting, Consulting, LLC 440-740-1132