Skip to main content

(CDR-2181) Proving Loss of Efficiency and Extra Work Claims

Primary Author: Robert M. Freas
Co-Author(s): Muhammad Khedr, PSP

Audience Focus: Intermediate
Application Type: Research
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada

Abstract: For proof of any construction claim, one must demonstrate liability, causation and the resulting damages. In order to prove causation and the resulting damages, the claimant needs to rely upon the project documentation and its job cost accounting system, which may not be prepared nor managed properly with claims in mind. Circumstances may arise which leave the contractor no choice but to prepare a claim to demonstrate causation, and then quantify the resulting damages caused by loss of efficiency and extra work. This paper will identify common mistakes made when preparing project documentation that is essential to developing entitlement for loss of efficiency and extra work claims. It also provides an overview of loss of efficiency analysis methodologies commonly employed by experts. The paper will examine how a contractors accounting system can be used to price and prove loss of efficiency and extra work claims.