Schedule Delay Analysis

and Cost Damages

Presented by: George Fink, PE

TYPES OF CONSTRUCTION CLAIMS
1. Delay and Disruption
2. Unforeseen Conditions
3. Changes in Scope
4. Contract Breaches
5. Contract Terminations
• Termination for Convenience
• Termination for Cause
6. Business Interruptions/Destruction
CHALLENGES TO PREPARING A SUCCESSFUL
CONSTRUCTION CLAIM

• Certain Claims Barred by Contract

• Poor Records, What's Available to Prove Your Claim
• Highly Technical Issues
• Many Things Went Wrong - Which One Controls?
• Prove Liability – Then Quantify Damages
• Total Cost Method vs. Cause and Effect
• Document Control
PROVING SCHEDULE DELAY
Time Impact Analysis:
Time Impact Analysis (“TIA”) is a comparative
analysis that uses the following schedules: 

Ø      As-Planned - a schedule which illustrates the

intended approach or plan to perform the
contractual scope of work and is used as the
baseline for measuring the actual progress of the
work.

Ø     
• As-Built - a schedule illustrating the actual
sequence of events, based on a project’s
contemporaneous documentation (daily
logs, timesheets, schedule updates, etc.). 
Ø      Impacted Schedule - an as-planned
schedule that has been updated/adjusted to
include actual impacts that occurred up to a
specified date. Variances in the Project’s
overall substantial completion date are
quantified by measuring the delay during
this period.
Time Impact Analysis - continued

• Identify disruptions to the as-planned

schedule;
• Quantify any disruptions to the as-planned
schedule;
• Explain the causes for any disruptions to the
as-planned schedule; and
•  Determine responsibility for any disruptions
to the as-planned schedule.
Other Methods:
• Contemporary Analysis – liked by courts
• Collapsed As-Built – Analysis can be
manipulated to achieve desired results
• As-Built Analysis – least effective
Case Study
Site Plan N

B
D

E
Schedule Delay Analysis
As-planned Construction Schedule
1995 1996
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

As-planned Construction Schedule Project

Completion

Plaza & Landscaping

Project
Site Work Start

10/31
Foundation Superstructure Roof Interiors
Building A Float = 60 days

6/01 8/01 3/01 4/15 9/01

Owner Milestone
Foundation Superstructure Roof Interiors
Close Roadway
Float = 30 days

Building C 8/01 10/01 3/01 5/01 10/01

Schedule Delay Analysis
Impact 1 – Late Closing of Roadway
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

Project
As-planned Construction Schedule
Plaza & Landscaping
Start
Site Work Foundation 10/31
Superstructure Roof Interiors

Building A Float = 60 days

6/01 8/01 3/01 4/15 9/01

Owner Milestone Foundation Superstructure Roof Interiors

Road Closed Float = 30 days
Building C 5/01
8/01 10/01 3/01 10/01
Schedule Delay Analysis
Impact 1 – Late Closing of Roadway
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

Project
As-planned Construction Schedule
Plaza & Landscaping
Start
Site Work Foundation 10/31
Superstructure Roof Interiors

Building A Float = 60 days

6/01 8/01 3/01 4/15 9/01

Owner Milestone Foundation Superstructure Roof Interiors

Road Closed Float = 30 days
Building C 5/01
8/01 10/01 3/01 10/01

6 month delay

Impact 1
Project
Plaza & Landscaping
Start Float = 88 days
Site Work Foundation Roof Interiors 2/01
Superstructure
Project
Building A 6/01 8/01 6/01 7/15 12/01 Float = 150 days
Completion

Foundation Superstructure Roof Interiors

Building C 5/01 10/01 12/01 4/30

Planned start, 8/01 Owner Milestone
Road Closed
3/01/96
As-built As-
planned
Schedule Delay Analysis
Impact 2 – Late Finish of Superstructure, Building C
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7

Project
Impact 1
Plaza & Landscaping
Start Float = 88 days
Site Work
Foundation 2/01
Superstructure Roof Interiors
Project
Building A Float = 150 days
Completion
6/01 8/01 6/01 7/15 12/01

Foundation Superstructure Roof Interiors

Building C
Planned start, 8/01 5/01 10/01 12/01 4/30

3/01/96
Schedule Delay Analysis
Impact 2 – Late Finish of Superstructure, Building C
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7

Project
Impact 1
Plaza & Landscaping
Start Float = 88 days
Site Work
2/01
Foundation Superstructure Roof Interiors
Project
Building A Float = 150 days
Completion
6/01 8/01 6/01 7/15 12/01

Foundation
Superstructure Roof Interiors

Building C
Planned start, 8/01 5/01 10/01 12/01 4/30

3/01/96

Impact 2 1 month delay

Project Plaza & Landscaping

Site Work Start 3 month pacing delay Float = 119 days
Foundation 2/01
Superstructure Roof Interiors Project
Building A Float = 181 days
Completion
6/01 8/01 6/01 7/15 12/01

Foundation Superstructure Roof Interiors

Building C 5/01 1/01 5/31

Planned start, 8/01 3/01

1 month contractor delay 11/01/96

As-built As-
planned
Schedule Delay Analysis
Project Completion – Late Availability of Permanent Power
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

Impact 2
Project Plaza & Landscaping
Start
Float = 119 days
2/01
Foundation
Superstructure Roof Interiors
Project
Completion
6/01 8/01 6/01 7/15 12/01 Float = 181 days
Foundation Superstructure Roof Interiors

5/01 1/01
Planned start, 8/01 3/01
11/01/96
5/31
Schedule Delay Analysis
Project Completion – Late Availability of Permanent Power
1995 1996 1997
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

Impact 2
Project Plaza & Landscaping
Start
Float = 119 days
2/01
Foundation
Superstructure Roof Interiors
Project
Completion
6/01 8/01 6/01 7/15 12/01 Float = 181 days
Foundation Superstructure Roof Interiors

5/01 1/01
Planned start, 8/01 3/01
11/01/96
5/31

3 month delay

Project Completion
Project Plaza & Landscaping
Start Float = 169 days

Foundation 3/15
Superstructure Roof Interiors
Inactivity Float = 62 days
Project
6/01 7/15 6/01 Completi
6/01 8/01 11/01 6/30

Foundation Superstructure Roof Interiors

5/01 11/01 1/01 3/31

Planned start, 8/01 3/01
Permanent Power Available (Owner milestone)
8/31/97

As-built
Schedule Delay Analysis
Summary of Delays

PROJECTED
INCREMENTAL CUMULATIVE Liability
SCHEDULE TITLE DESCRIPTION DATA DATE DELAY DELAY
COMPLETION
(DAYS) (DAYS) Contractor Owner

As-Planned As-Planned Schedule June 1, 1995 October 31, 1996

Late Closing of
Impact 1
Roadway
March 1, 1996 April 30, 1997 181 181 181

Late Finish of
Impact 2 Superstructure, November 1, 1996 May 31, 1997 31 212 31
Building C

Late Availability of
Project Completion
Power
August 31, 1997 August 31, 1997 92 304 92

Total 304 31 273

DISRUPTION AND DELAY DAMAGES
1. Impact Damages:
• Inefficiencies
• Interference
• Environmental Effects
• Delay Damages (Time related Costs)
– Escalation
– Field Overhead
– Additional Insurance and Bonding
– Additional Supervision
– Unabsorbed/Under-absorbed Home Office
Overhead
 LOSS OF EFFICIENCY
Causes:
• longer work hours/work weeks for extended
durations (acceleration)
• Stop & go operations
– Unreliable release of work (prevents
optimization of crew size and efficient use of
project resources)
– Labor experience (e.g. if by way of acceleration
& labor availability, contractor is forced to use
the “bottom of the barrel” from union hall)
Inefficiency Claim:

Lost Productivity at Building "A" as a Result of a Pacing Delay at Building "C"

Measured Mile Approach:

Un-Impacted Period
Floors 1 - 4
Yards of Concrete 7,083
Total Labor $ 1,416,000

Labor Cost/Yard $ 200

Impacted Period
Floors 5 - 6
Yards of Concrete 3,541
Total Labor $ 1,062,450

Labor Cost/Yard $ 300

Productivity Variance: $ 100

Yards of Concrete Poured at increase rate: 3,541

Total Productivity Loss: $ 354,550

Inefficiency Claim - cont.:

Extended Concrete Field General Conditions

Unit Cost Extended Activity Extended Concrete

LABOR & MATERIALS (Per Day) Duration (Days) GC Damage

General Foreman $ 360 215 $ 77,400

Carpenter Foreman $ 322 215 $ 69,230
Line & Grade $ 323 215 $ 69,445
Draftsman $ 225 215 $ 48,375
Form Detailer $ 200 215 $ 43,000
Timekeeper $ 125 215 $ 26,875
Tool Room $ 112 215 $ 24,080
Carpentry Shop $ 66 215 $ 14,190
Form Consultant $ 100 215 $ 21,500
Job Shanty $ 25 215 $ 5,375

GRAND TOTAL: $ 1,858 $ 399,470

Interference Cost:

Pile Driver's - Demobilization & Remobilization Cost $ 15,000

Change Grade Beam Methodology $ 110,000

Revised Traffic Warning Devices $ 35,000

$ 160,000
 DELAY DAMAGES
1. Escalation
2. Extended Field General Conditions
• Based on actual costs
3. Unabsorbed Home Office Overhead
• Eichleay Formula

Contract Billings
Total Billings for the X Total Overhead
Actual Contract
Period
4. Delay Cost Incurred by General Contractor’s Subcontractors
Building "C" Concrete Labor & Material Escalation Calculation
LABOR
Percent of Total Planned Weight Planned Weight Actual
Concrete Crew Crew Rate Rate Actual Rate Rate
Carpenter (3) 60% $ 35.00 $ 21.00 $ 37.76 $ 22.66
Laborers (1) 20% $ 24.00 $ 4.80 $ 26.25 $ 5.25
Masons (1) 20% $ 30.00 $ 6.00 $ 32.36 $ 6.47

Total: $ 31.80 $ 34.38

Percent Increase In Labor Cost: 8.11%

Percent of Work Completed After the Rate Increase 100%

Bldg "C" Actual Cost $ 890,500

Increased Cost due to Labor Escalation: $ 72,192

MATERIAL

Total Cubic Yards 6000

Price Increase: $ 2.50

Percent of Work Completed After the Rate Increase 100%

Increased Cost due to Material Escalation: $ 15,000

Grand Total $ 87,192

Extended Field General Conditions

Unit Cost Unit Cost Extended Project Delay

Personnel Cost (Per Wk) (Per Day) Duration (Days) Cost

Project Manager $ 3,360 $ 480 273 $ 131,040

Assistant Manager $ 2,500 $ 357 273 $ 97,461
Project Engineer $ 2,000 $ 286 273 $ 78,078
Mechanical Coordinator $ 2,000 $ 286 273 $ 78,078
Safety Engineer $ 1,500 $ 214 273 $ 58,422
Office Clerk $ 1,500 $ 214 273 $ 58,422
Secretary $ 1,000 $ 143 273 $ 39,039
Paymaster / Timekeeper $ 1,000 $ 143 273 $ 39,039
Messenger Driver $ 1,393 $ 199 273 $ 54,327
General Superintendent $ 3,200 $ 457 273 $ 124,761
Draftsman - Drwg Coor $ 624 $ 89 273 $ 24,297
Tool Room Keeper $ 2,000 $ 286 273 $ 78,078
General Laborers $ 4,000 $ 571 273 $ 155,883

Personnel Subtotal: $ 1,016,925

Extended Field General Conditions cont-

Material & Equipment Unit Cost Unit Cost Extended Project Delay

(Per Mo) (Per Day) Duration (Days) Cost

Job Office
Workmen's Shanties $ 500 $ 17 273 $ 4,641
Tools Sheds $ 1,063 $ 35 273 $ 9,555
Telephone & Radio $ - 273 $ -
Utilities - Water & Power $ 1,020 $ 34 273 $ 9,282
Office Supplies (Equipment)$ 5,168 $ 172 273 $ 46,956
Progress Photos $ 740 $ 25 273 $ 6,825
CPM $ 350 $ 12 273 $ 3,276
Guard Services $ 500 $ 17 273 $ 4,641
First Aid & Safety Supplies$ 2,500 $ 83 273 $ 22,659
Ice & Water $ 500 $ 17 273 $ 4,641
Vehicles/Fuel/Maint $ 185 $ 6 273 $ 1,638
Postage/Messenger Services $ 1,027 $ 34 273 $ 9,282
$ 1,979 $ 66 273 $ 18,018
Material & Equipment Subtotal:
$ 141,414
Total Extended Field General Conditions Cost:
$ 1,158,339
CHALLENGES

• The delay must be compensable

• Reduction in income stream
• No opportunity for contractor to mitigate its damages
by taking on other work
• The Federal Acquisition Regulations do not allow
certain overhead charges
 Allocation of Home Office Overhead

I - Summary 1995 1996 1997 Total

SG&A $ 3,750,334 $ 4,518,676 $ 5,726,623 $ 13,995,633

Gross Revenue $ 37,000,124 $ 49,249,600 $ 113,106,639 $ 199,356,363

Revenue from Case Study $ 12,000,000 $ 17,000,000 $ 17,000,000 $ 46,000,000

As a % of Total Revenue 32.4323% 34.5180% 15.0301% 23.07%

Allocation of SG&A to Case Study Project $ 865,362 $ 1,042,651 $ 1,321,376 $ 3,229,388

II - Calculation of Damages

Overhead Allocable to Case Study Project $ 3,229,388 Delay * Project *

Duration
Total Project Duration 822 06/01/1995
08/31/1997
Daily Contract Overhead $ 3,928.70 273 822

Total Delay Attributable to the Owner 273

Total Unabsorbed Home Office Overhead Damages $ 1,072,534

SUBCONTRACTOR CLAIMS

• Review Claims
• Watch for conflicting language in Subcontract
Agreement
• Check for obvious mistakes and contradictions
• Don’t let your subcontractor’s claim cast doubts on
the credibility of your claim
 ACME Mechanical, Inc.

Summary of Delay Damages

Delay
Unit Cost (Per Period Additional
Description Day) (Days) Delay Cost

Additional Cost for Subcontractor Supervision $ 195.36 207 $ 40,440

Additional Cost for Office Administration $ 55.00 207 $ 11,385
Additional Cost of Construction Equipment $ 20.56 207 $ 4,255
Extended Home Office Overhead $ 96.00 103 $ 9,888

Interest on Delayed Retention

Contract Amount: $ 1,994,000
Amount Retained: $ 199,400
Interest Rate: 8.5%
Damaged Amount: $ 16,949

Additional Insurance Cost $ 8,600

Extended Manufacturer Warranty Cost $ 7,200
Cost of Preparing Claim Analysis $ 2,850

Total: $ 101,566
 Summary of Claim
Productivity Loss $ 354,550
Extended Concrete Field General Conditions $ 399,470
Interference $ 160,000
Labor & Material Escalation $ 87,192
Extended Field General Conditions $ 1,158,339
Unabsorbed Home Office Overhead $ 1,072,534
Subcontractor’s Claim $ 101,566
Grand Total of Claim $ 3,333,651
Questions