Construction Management - Pricing Contractor Delay Costs

After participating in this course, you will be able to:

• Assess the recoverability of extended field office overhead costs during compensable project delays.
• Utilize various methods for calculating field office overhead, including actual cost, total cost, and jury verdict approaches.
• Recognize which costs should be excluded from a contractor’s overhead submissions.
• Implement contract terms that clearly outline methods for managing delay damages and avoiding disputes.
• Address the defense of a contractor’s obligation to mitigate damages effectively.

Description

When contractors encounter owner-caused (excusable/compensable) delays they are typically entitled under the contract to recover both the time resulting from the delay as well as delay damages.

Idled equipment/labour and material escalation costs are fairly easily calculated in such situations. Typically, contractors also seek to recover their delay costs (extended field office overhead or general conditions costs). Calculating this cost is more complex than dealing with delayed direct costs. There are, at least, eight methods of calculating extended field office overhead costs.

None of the calculations arrive at the same daily delay cost. This webinar discusses all eight methods – offering commentary on the strong and weak points of each. The paper also offers recommendations on how project owners can resolve this dilemma in advance of delays, thus making the issue less contentious should a contractor encounter an owner-caused delay.

Who Should Attend

This course is designed for:

• General contractors and their project managers
• Project owners and their representatives
• Design professionals
• Construction managers
• Construction attorneys

Course Outline

• Types of Delay
• What Are Delay Costs?
• What Are Extended General Conditions Costs?
• How Are Extended General Conditions Costs Calculated?
• Other Issues Related to Extended General Conditions