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(CDR-1659) Lost Productivity - Finding the Missing Puzzle Pieces and Contract Bars

Primary Author: Dr. Tong Zhao PE PSP and Mr. J. Mark Dungan

Audience Focus: Intermediate
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: A contractor makes certain assumptions regarding the scope of work represented in a contract, specifications and drawings, construction sequence, and schedule. Should those conditions change, the contractor may suffer economic losses related to unplanned extra effort. However, in the case of lost productivity, identifying the cause and effect is often illusive and in some cases contracts even try to explicitly bar loss of productivity claims. This paper discusses loss of productivity, an important piece in the construction claim puzzle, and employing the measured-mile methodology to prove the damage. This paper also discusses potential methods of recovering extra labor when loss of productivity claims are explicitly denied in the contract.