Method For Calculating Schedule Delay Considering Lost Productivity
Method For Calculating Schedule Delay Considering Lost Productivity
Abstract: A delay claim often occurs when a difference between the actual completion date and the contract completion date exists. The
duration of a delay is an essential piece of information required for determining the cause of a delay. However, it is difficult to analyze
a delay claim due to the fact that numerous factors that cause this delay, thereby making it a very complex issue. One of such factors is
the lost productivity or loss of productivity. Despite the fact that it is one of the major causes of delay, there have been only a few studies
that focus on converting lost productivity into delay duration carried out to date. Claims for productivity losses are generally the result of
tension between the contractor and the owner. This tension arises due to the great difficulty involved in quantifying disruption effects.
Thus, to calculate accurately the delay duration, a logical method for analyzing schedule delay caused by lost productivity is necessary.
Therefore, in this study, we propose a method for analyzing construction schedule delay where this lost productivity is taken into
consideration. This methodology was implemented on a case project to ascertain its practicability, and to decide whether it can be utilized
in the case of a delay claim related to lost productivity. The significance of this paper is twofold. One is the method to convert the lost
productivity into the delay duration, which can be applied to reasonable delay claim settlement. The other is the process to analyze the
construction schedule delay considering lost productivity.
DOI: 10.1061/共ASCE兲0733-9364共2005兲131:11共1147兲
CE Database subject headings: Claims; Delay time; Productivity; Data analysis; Databases; Construction industry.
ages by lost productivity are calculated by subtracting the esti- When the contractor’s claim includes the “ripple effect,” that is a
mated costs from the actual costs incurred. Because the actual request for compensation for activities whose productivity suf-
costs include the increased labor costs from the lost productivity, fered indirectly due to the owner’s actions, the situation is further
the cumulative effect of changes is addressed in the total cost complicated. The owner is usually reluctant to accept the exis-
overrun. 共3兲 Delay causes are conceived as activities in a project tence of this ripple effect because it is not readily seen and be-
schedule such as a method of “what-if” evaluation or “but-for” cause it may be used to cover up the inefficiency caused by the
schedule 共Al-Saggaf 1998; Bubshait and Cunningham 1998; contractor’s mismanagement 共Abdul-Malak et al. 2002兲. There-
Finke 1998, 1999, Kartam 1999兲. “But-for” schedule results from fore, the characteristics of the impact factor must be known to
“pulling out” all owner delays that affected the as-built critical fairly assign the DPL.
path. The amount of compensable delay is the difference in time Impact factors affecting the DPL are categorized according to
between the actual completion date on the as-built schedule and independence and impact on the next impact factor. An indepen-
the completion date on the “but-for” schedule. dent factor means that an impact factor does not have any effect
As a result, a study concerning the methods of calculating on the duration of subsequent works 共see Scenario 1 of Fig. 2兲.
schedule delay of lost productivity is not sufficient. An impacting factor means that an impact factor adversely affects
DD = DC − D P = 0 共8兲
DD = DC − D P ⬍ 0 共9兲
SPL2_共F2,F3, ¯ ,Fn兲 = 兺
i=2
PL2共Fi兲
¯ ¯
Assignment of Lost Productivity Duration n
Q0 6,827.16 Conclusion
DD = DC − D P = − DP = − 54 = 1.34 ⬎ 0
LU PU 17.8 ⫻ 6.93
Thus, DW includes DD and DPL during DI. An analysis of delays that occurred in a construction process and
the allocation of the responsibilities for the delays always entail
differences of opinion on the cause of the delay and on who
Characteristics of Fs and Calculation of SPL should be held accountable. In particular, when delays caused by
Because Fs occurred at a different time and at a different space, lost productivity are involved, the analysis becomes very compli-
the Fs represent single impact factors. The consequence of ana- cated. There are several reasons that contribute to the delay of a
lyzing the characteristics of the first, second, and third impact project. Many studies or methodologies for analyzing the delay
factor is independency 共␣ = 0 % ,  = 0 % 兲 in which PL共i−1兲共F j−1兲 have focused on these reasons. The reasons for a delay are usually
was dismissed during the following work duration. Thus, SPLi conceived of activities in a project schedule and the impacted
caused by F1, F2, and F3 can be calculated as follows: activities are analyzed without considering the impacted produc-
tivity. However, if some variables impact the next sequence of the
3 work in the construction project, the impacted work may become
SPL1_共F1,F2,F3兲 = 兺
i=1
PL1共Fi兲 = PL1共F1兲 = 6.93 − 6.31 = 0.62 lost productivity work. As only a few studies have been reported
on converting lost productivity into a delay, this paper presents a