The measured mile method can be a very effective tool for recovering unreimbursed costs. Multiple engineering, construction, project management, and construction management experts and legal professionals may be required to either prepare or. Construction experts publish industry guidebook on. It gauges inefficiency loss by comparing a measurable period of time on a project impacted with inefficiencies against a period of the same length with no inefficiency impact. Tong zhao, pe psp and mark dungan abstractproving and quantifying lost productivity is one of the most challenging areas in construction claims. Measured mile unimpacted period jan thru march 02 total hours incurred 2,400. Record keeping is critical to calculate and support any lost productivity claim. It is designed to address a variety of different readers, present the claim in a manner similar to how it. Calculating construction damages by william schwartzkopf and john j. Extensive literature has been published about delay claims, which principally are claims related to the extended. Improved measured mile analysis technique request pdf. National electrical contractors association neca, manual of labor units, bethesda, md.
By matthew devries best practices construction law. Is the unimpacted period a representative sampling of performance. It compares periods of a project that have been impacted by change to those that have. Though loss of productivity efficiency, or disruption claims are common in construction disputes, proving lost productivity is one of the most challenging areas in. Davis, mrics is a qs based in hills us operations and explains the expertise and use of the qs on construction claims. Proving lost productivity is a challenging task in construction claims, especially in the context of pervasive disruptions and cumulative impacts. Construction law international volume issue 3 november 2018 1. Court clarifies use of measured mile theory, notice of. Measured mile measured mile 40,000 actual production 32,668 30,000 e r percent manhours p 20,000 60% complete. This paper discusses loss of productivity, an important piece in the construction claim puzzle, and employing the measuredmile methodology to prove the damage. Apportionment apportionment in relation to a global claim involves apportioning part of the global loss claimed to the causative events for which the employer can be held responsible. Because the measuredmile calculation is based on comparing the impacted.
One of the most contentious areas in construction claims is the calculation. A conceptual model for effective maintainance of productivity records. The inability to prepare a measured mile analysis does not, in and of itself, bar a contractors loss of productivity claim. Quantifying damages in construction claims james l. Disruption too often confused or intermingled with a delay claim is notoriously. The analysis and valuation of disruption page 4 variable costs are items such as the contractors labour, equipment, and site overhead. Construction claims are an unfortunate part of the construction process in todays world. A primer for the construction industry was developed to assist construction contractors, their customers, and others involved in construction projects in determining the costs associated with unplanned events, circumstances, and factors that may impact the outcome, productivity, and schedule of those projects. Measured mile is preferred over the mcaa model as long as it isapplicable.
The gsas acceptance of the measured mile analysis as a method of proving labor inefficiency and loss of productivity costs increases the contractors chance of recovering on. Avoiding the pitfalls in implementing the measured mile method. The gsas acceptance of the measured mile analysis as a method of proving labor inefficiency and loss of productivity costs increases the contractors chance of recovering on a lost productivity claim. A widely accepted way to quantify losses is the measured mile approach. How to estimate and value lost productivity claims.
For example, if abc electrical contractor obtains a proj ect away from its normal area, a measured mile analysis will identify the base efficiency at which abc is able to employ a different labor. Claims for loss and expense arise when contractors can show that. Construction and maintenance claims and notice of intent to file claim noi january 2017 governance document. The difference expended in the resources labour, plant, materials etc can then be quantified. Construction claims in the gulf chartered institution of.
This guide helps anyone working within the construction and design industry navigate the complex issues that come from construction disputes. Claims for loss and expense cover all types of financial claims by contractors in construction disputes. Construction contract claims and disputes page 2 how to prepare claims there are a variety of ways to prepare a claim. Oct 10, 2018 construction claims are an unfortunate part of the construction process in todays world.
Assessing disruption on 61 construction projects measured mile versus. Dickincorporated, the plaintiff presented both a measured mile and a mcaa analysis, and the board chose measured mile method even though the unimpacted period of measured mile was based on other similar, not identical works. Planning and open communication owners should invest more resources in the design and engineering process to resolve problems during the preconstruction phase. Quantifying lost labor productivity on construction projects is dif. What is productivity in construction and how is it measured. Because the measured mile calculation is based on comparing the impacted productivity and unimpacted productivity on the same project, it tends to be a more accepted approach. No rules exist regarding the proper procedures to be utilized, as use of the concept relies on the analyst performing the study as one pleases.
Determining the measured mile for lost productivity claims dr. Spires cpm scheduling and project controls consultants are experienced in identifying, developing and mitigating schedule delays and disruptions. The measured mile represents the labor forces ability to perform on the particular project at hand, versus a theoretical calculation. As a result, this cfcc certification study guide does not attempt to cover the field of construction litigation nor does it offer sample examination questions. The issue is essentially a question of risk of loss. But ensure that both disrupted undisrupted periods are not contaminated or make proper allowance adjustment. On highway construction projects, contractors must break the work down by location, activity and event. Nonetheless, the measured mile technique is only as good as the available productivity records used for analysing the claims merritt, 2008.
Measuredmile principles article in journal of legal affairs and dispute resolution in engineering and construction 42. Measured mile preferred method, but can involve practical challenges compares the productivity achieved during an unimpacted period with the productivity achieved for the same work during impacted period important considerations. Despite this being a well known problem, there has. The international construction market is highly competitive. An improved methodology for selecting similar working days.
Unlike direct costs, lost productivity is often not tracked or cannot be discerned separately. This can be readily understood because productivity decline can occur in many circumstances on construction projects, which may be attributed to the owner, the contractors estimate, the ability to execute as estimated, or to a third party. Barnard, pe, ccp, coauthors a new guidebook that seeks. When you have a claim, know the order of hierarchy in your presentation of the data for maximum remuneration from the client. Oct 14, 2016 proving and pricing construction claims by esq. Measured mile project data find undisrupted work compare with disrupted work. Schedule delay claim services spire consulting group specializes in analyzing, preparing and validating construction schedule delay and disruption claims. Yet, the format discussed below is the one most often used. Construction delay claims expert introduction to the measured mile approach the measured mile approach of evaluating construction delay claims compares productivity during periods of a project that have been adversely impacted to the productivity levels during periods that were not impacted, or that were unhindered. Measured mile for productivity loss claims interface. Costbased engineering and construction claims analyses performed. Measured mile is the best if not only approach thatmeasured mile is the best, if not only, approach that will succeed. Individuals applying to take this certification examination must have substantially.
Aug 09, 2011 measured mile is the best if not only approach thatmeasured mile is the best, if not only, approach that will succeed. There are two industry recognised techniques for demonstrating, to varying degrees, loss of productivity, these being the total cost and the productivity baseline methods, both of which are discussed below the total cost approach is probably the most common technique used to demonstrate a loss of productivity due to its. Pdf managing construction managing construction claims. Published quarterly by the construction and bridge divisions third quarter 2007 the disputes and claims analysis. The measured milethe measured mile month i considered global claims and the scottish court of appeal case of john doyle construction limited v laing management scotland limited 11 june 2004. This productivity is deemed the measured mile because it represents the production the. Improved measured mile analysis technique william ibbs1 and min liu2 abstract. Comparing efficiency to the isometric may be required mcaa factors usace cii studies alone likely willmcaa factors, usace, cii studies alone likely will not fly, but may be useful as a cross reference. The departments claims process is codified in the transportation code under title 43 texas administrative code part 1, subchapter a, section 9. A conceptual model for effective maintainance of productivity. Construction delay claims expert introduction to the. Court clarifies use of measured mile theory, notice of claims provisions john k. Field personnel need to maintain the records in generally the same manner for the impacted. Improved measured mile analysis technique semantic scholar.
One of the most contentious areas in construction claims is the calculation or estimation of lost. Gisleson and david holliday 07172008 for more than 20 years, it has been accepted practice in construction litigation to measure damages through the measured mile method of damages calculation. One of the most contentious areas in construction claims is the calculation or estimation of lost productivity. The measured mile method, a widely accepted approach involved in lost productivity claims, compares the productivities of identical or similar work between nonimpacted or least impacted and.
The scl protocol notes that this is one of the most reliable and accurate projectspecific studies although, in fairness, only if. Gisleson and david holliday 07172008 for more than 20 years, it has been accepted practice in construction litigation to measure damages through the measuredmile method of damages calculation. Court clarifies use of measured mile theory, notice of claims. Claim construction is the term used to describe the process of construing the claims of a patent to give them meaning, which meaning is then compared to an allegedly infringing device or method to determine infringement or to prior art to determine validity.
Use of mechanical contractors association of america method. Further, if the owner is responsible for the delay or disruption, the contractor may be entitled to a claim for. Construction claims guide construction and risk go handinhand and projects are constantly dealing with challenges that arise from budget, schedule, and staffing limitations. Among the available approaches, the measured mile method is ranked as. Estimating lost labor productivity in construction. The project management and contract management professional should have basic knowledge about the meaning, evaluation and preparation of claim. Sadly, there is often lack of such records in practice as commonly decried in the literature see for example, scott and assad, 1999. The most commonly used method to prove disruption costs is the measured mile method, where the contractor compares the efficiency in the disrupted section of the works. Time does not always equal money cl 44 1 b clause 44. The construction industry is witnessing an increased numbers of claims in both domestic and international sectors and the claim presentation is important in claim related issues in project management.
Apr 09, 20 construction delay claims expert introduction to the measured mile approach the measured mile approach of evaluating construction delay claims compares productivity during periods of a project that have been adversely impacted to the productivity levels during periods that were not impacted, or that were unhindered. Need to know which resources were doing what and when need to know which resources were doing what and when better than global claim. Estimating lost labor productivity in construction claims tcm framework. Quantumdamages analysis services long international. Many of these have been used for construction claims, such as the measured mile. Quantifying damages in construction claims james l mcgovern. Following the financial crisis of 2008 and the steep decline in the prices of oil and gas in recent years, with the exception of some government infrastructure projects, there has been a dramatic decrease in construction work worldwide, in particular for major contractors who specialise in large and complex projects. Estimating lost labor productivity in construction claims. Lost productivity finding the missing puzzle pieces and.
Applying the measured mile method is straightforward if the contractor has kept productivity records by location, type of work and crews. Area construction engineer for the purpose of this manual, the area construction engineer is the person responsible for project administration and decisionmaking. This month i shall consider another interesting aspect of the judgment which elaborated and commented in some detail on how. The results are that the original group 1 is split into 2 groups. Construction experts publish industry guidebook on conducting a measured mile analysis interface consulting principal consultant philip d. Applying the measuredmile method is straightforward if the contractor has kept productivity records by location, type of work and crews. 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. The analysis and valuation of disruption hill international. Disruption is defined by the second edition of the society of construction laws protocol the scl protocol as. The measured mile then becomes the baseline against which to measure the impact of the disruption. Evaluation and preparation of claim in construction projects. Because the measuredmile calculation is based on comparing the impacted productivity and unimpacted productivity on the same project, it tends to be a more accepted approach.
Due to the principle of measured mile analysis comparing good and poor productivity performance for similar working days, this paper discusses in detail how the clustering method can be applied in measured mile analysis by letting k to be 2. Claims for the cumulative impact of multiple change orders 5 effect caused by either the size or large number of changes. The measured mile period is then compared to the impacted period, which in turn allows for a calculation of lost time assoc i ated with the impact. However, the difficulty in utilizing the measured mile to quantify damages arising from lost labor productivity is that the measured mile methodology is a concept, not a procedure. One way to determine lost productivity on a project is by determining what is known as the measured mile comparing the cost of impacted work with the cost incurred to perform the same or similar unimpacted work. Introduction the preparation and analysis of claims on engineering, procurement, and construction epc projects can be a complex undertaking. A measured mile analysis looks at productivity levels for an activity or period of time. The measured mile method, a widely accepted approach involved in lost productivity claims, compares the productivities of identical or similar work between non. Use of mechanical contractors association of america.
Introduction one of the most contentious areas in construction claims is the calculation or estimation of lost productivity. Pdf assessing disruption in construction measured mile versus. International experts in claims analysis, l i ong nternational. Although the measured mile method is generally the most accepted approach to quantify loss of productivity in construction.
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