One of the most contested and
controversial issues that often arises in construction claims is the
calculation and/or estimation of lost productivity on a construction
project. Contractors prefer to use estimation methods while owners often
insist on using actual cost data, which in many cases does not exist.
Tracking efficiencies and productivity on any project is often
overlooked, but it can greatly affect the value of a loss of
productivity claim if done correctly or incorrectly when pursuing a
change orders or claims. This article will present the common pitfalls
of typical loss of productivity claims based on measured mile analyses
and industry studies, as well as, lessons learned and observations from
actual construction claims. The article will also examine the pitfalls,
why they occur, and how to avoid them in preparing a claim.