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(CDR-850) A Model for Construction Delays Claims Assessment

Primary Author: Sasan Golnaraghi
Co-author(s): Sabah Alkass, P.Eng.

Audience Focus: Intermediate
Application Type: Theoretical
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: Disputes in the construction industry originate from delays. These delays affect project parties, the contractor and the owner. Loss of either anticipated revenue or opportunity cost and time overrun, on the owner’s side, and increased overhead cost, escalation cost and liquidated damages, on the contractor’s side, are the main impacts of delays. Preparing delay claims is a time and resource consuming process. Facilitating this process will benefit both project parties. This paper presents a new systematic delay analysis technique to assist in the evaluation of concurrent delays, while considering the critical path of the project. This technique allocates delays among project parties. An expert system is designed to classify different types of delays, as well as to offer recommendations on delays or delaying events. The expert system and the proposed delay analysis technique are integrated with scheduling software. Likewise, a costs computing feature enhances the capability of the system and assists the analyst to reduce the time and cost associated with delay claim preparation. This paper discusses the new delay analysis technique.