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(CDR-3173) Defending Against Loss of Productivity Claims

Level: Intermediate
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA

Abstract: Construction labor productivity represents how efficient a contractor is in applying labor resource to produce output. Labor productivity is susceptible to many factors during construction. Some of them may be attributable to the owner, such as those caused by owner changes and directed acceleration; while others are within the contractor’s control. When it cannot meet its planned productivity, the contractor’s profit margin shrinks, or it could even suffer a loss. It is not uncommon that owners become targets for loss of productivity claims. While loss of productivity is one of the most contentious subjects in construction disputes, it is a challenging task to defend against such a claim, especially for inexperienced owners. In this paper the basic information related to loss of productivity claims is first set forth. And then the defense against loss of productivity claims from the aspects of entitlement, causation and quantum is discussed. This paper also provides suggestions on how to prevent, mitigate, and manage loss of productivity claims, especially for inexperienced owners.