Dealing with Contractor Jobsite Overhead Delay Costs
Aug 10, 2022 /
Course Code: 0805-WEB22
After attending this webinar attendees will:
- Have a better understanding of the issues concerning the pricing of contractor delay damages
- Gain knowledge about the various methods of calculating extended field office overhead costs
- Learn some contractual methods for predetermining this element of delay costs to prevent the need for end of the job audits or disputes over such costs
When contractors encounter owner caused (excusable/compensable) delay they are typically entitled under the contract to recover both the time resulting from the delay as well as delay damages. Idled equipment/labor and material escalation costs are easily calculated in such situations.
Typically, contractors also seek to recover their delay costs (extended field office overhead or general conditions costs) also. 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.
Description of Topic
- Learn about the recoverability of extended field office overhead costs in the event compensable delay arises on a project.
- General Contractors will gain information on the various accepted methods of calculating this element of delay damages.
- Owners will be exposed to various methods of specifying this element of delay damages in contracts to avoid disputes later on should compensable delay occur.
- Owners and contractors will receive information on what costs should be deducted from this element of delay damages prior to submittal of costs in a claim.
- Owners will gain insight into the issue of the contractor’s obligation to mitigate damages in the event of owner caused delay.
- In this webinar attendees will learn about the recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
- Attendees will be exposed to the basics of calculating extended field office overhead costs.
- The program will discuss the various actual cost methods for calculating extended field office overhead.
- The program will explore the various total cost methods of calculating extended field office overhead costs.
- The program will discuss how the jury verdict method may be used to make this delay damage calculation.
- Attendees will learn how stipulated contract methods concerning field office overhead may be employed.
- The program will identify what costs must be deducted from the submission of field office overhead costs by the contractor.
- The contractor’s obligation to mitigate damages will also be discussed.
Who Should Attend?
- Owner and contractor project managers
- Resident engineers and architects
- Agency construction managers
- Construction managers at risk
- Design managers
- Legal counsel representing owners or contractors
Please note: You can check other time zones here.
Jim is the Senior Advisor to the recently formed Ankura Construction Forum™.
The Forum strives to be the construction industry’s resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Jim was the founder and Executive Director of the Navigant Construction Forum™. Formerly he was the Executive Director, Corporate Claims Management Group, Fluor Corporation, one of the world’s largest EPCM contractors. Prior to this Jim was Vice President of PinnacleOne and Executive Director of the PinnacleOne Institute and a Senior Construction Claims Consultant for CH2M HILL, Inc.
He has, for 46 years, worked on both private and public projects throughout the U.S. and in 28 countries abroad. Jim has worked for both contractors and owners on more than 5,000 claims in his career. He a Fellow of AACE International, the Royal Institution of Chartered Surveyors and the International Guild of Project Controls. In the construction claims field, he is a recognized and published expert in mitigation, analysis and resolution or defense of construction claims and disputes. Jim is a Certified Construction Manager (CCM), a Certified Forensic Claims Consultant (CFCC), and a Project Management Professional (PMP).
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Fee & Credits
$149 + taxes
- 0.2 Continuing Education Units (CEUs)
- 2 Professional Development Hours (PDHs)
- ECAA Annual Professional Development Points
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