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(CDR-1256) Challenges of the Measured Mile Concept for Productivity Loss Claims

Primary Author: Mr Philip D Barnard PE CCE

Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Contractors face several challenges when developing claims for productivity loss due to owner/architect/engineer or third-party interference. These include the burden of linking the interference to the productivity loss and establishing the reasonableness of estimated increased time and/or costs. AACE International describes various methodologies in its Recommended Practice No. 25R-03 for estimating lost productivity, with the most favorable being the Measured Mile. This paper discusses this methodology in which labor performance is compared between two time periods – an unimpacted period called the “Measured Mile” and an impacted period. This paper discusses the challenges in comparing Measured Mile performance criteria, including work tasks, productivity levels, worker skill levels, work scopes, and work environment. By following the guidelines outlined in this paper, contractors and claim preparers can ensure they are utilizing the best available facts and records to package their claim in an understandable and believable format to ultimately be successful in their recovery of damages.