Customize your search below

You can select the filters you wish to use below and/or conduct a keyword search in the box above.

Search Results

Pricing Contractor Delay Costs

By Peter Badala , James Zack

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 fairly 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 paper discusses all eight methods – offering commentary on the strong and weak points of each. The paper also offers a recommendation 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.

Experts

Peter V. Badala

Mr. Badala is a Managing Director and has global responsibility for its International Construction Arbitration practice. He has provided forensic accounting, auditing, claims consulting, and expert testimony to clients on more than 200 construction projects internationally.

James G. Zack

Mr. Zack is Executive Director of Navigant's Construction Forum™. He is a recognized and well published expert in mitigation, analysis and resolution, or defense of construction disputes. He is a nationally known author, speaker and trainer concerning the management, mitigation and resolution of construction claims and disputes. Jim is located in Irvine, California.

Related Services

Navigant utilizes cookies to support analysis of aggregated site usage. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Navigant’s cookies information for more details.

Close