Level: Basic
TCM Section(s):
6.4. Forensic Performance Assessment
10.3. Change Management
Venue: 2023 AACE International Conference & Expo
Abstract: In a published paper, James G. Zack Jr and Peter V. Badala detailed 4 different methods for quantifying extended field office overhead costs, including the actual cost methods, total cost methods, stipulated contract methods, and jury verdict. The actual cost methods, which involves calculating an average daily rate, is one of the most commonly used and accepted methods when sufficient cost data is available, and there is no other contract specified method. Yet, many practitioners fall into the mistake of over/under claiming damages by calculating the rate based on periods which are not representative of the delay and/or by including incorrect costs in the calculation of the rate. This paper is written from a contractor’s perspective to build on prior treatises by defining extended field office overhead costs, and through case studies which were developed based on actual project experience, demonstrate how each method is performed with a particular focus on the actual cost methods.
TCM Section(s):
6.4. Forensic Performance Assessment
10.3. Change Management
Venue: 2023 AACE International Conference & Expo
Abstract: In a published paper, James G. Zack Jr and Peter V. Badala detailed 4 different methods for quantifying extended field office overhead costs, including the actual cost methods, total cost methods, stipulated contract methods, and jury verdict. The actual cost methods, which involves calculating an average daily rate, is one of the most commonly used and accepted methods when sufficient cost data is available, and there is no other contract specified method. Yet, many practitioners fall into the mistake of over/under claiming damages by calculating the rate based on periods which are not representative of the delay and/or by including incorrect costs in the calculation of the rate. This paper is written from a contractor’s perspective to build on prior treatises by defining extended field office overhead costs, and through case studies which were developed based on actual project experience, demonstrate how each method is performed with a particular focus on the actual cost methods.