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Claim Lost of Productivity

claim lost of productivity

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Gamini Kodikara
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101 views

Claim Lost of Productivity

claim lost of productivity

Uploaded by

Gamini Kodikara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Claims

Loss of Productivity

Ahmed Ibrahim PE
Planning Expert
Claims
Claims Management [email protected]

1- Introduction.

One of the most contentious areas in construction claims is the calculation or estimation of lost
productivity. Unlike direct costs, lost, productivity is often not tracked or cannot be discerned
separately and contemporaneously. As a result, both causation and entitlement concerning the
recovery of lost productivity are difficult to establish. Compounding this situation, there is no
uniform agreement within the construction industry as to a preferred methodology of
calculating lost productivity. There are, in fact, numerous ways to calculate lost productivity.
Many methods of calculation are open to challenge with respect to validity and applicability to
particular cases — thus making settlement of the issue on a particular project problematic. The
most common issues that we encounter in records, including those related to progress and that
have actually been produced partly or fully, are as follows:

1. Actual activity starts and finish dates and stated progress %’s not supported by
records.
2. Changes (e.g., to logic and durations) were made to programme when updating.
3. Inaccurate and overstated progress reporting.
4. Progress not recorded against an approved programme;
5. No contemporary records of labor productivity.
6. Missing information in progress reports (e.g., activity location)
7. A reluctance to produce actual cost records.
8. Over-reliance on letters rather than primary records.
9. Multi-topic correspondence.
10. Inconsistent and conflicting records.
11. Illegible documents.
12. Undated photographs, without location information (e.g., floor level).
13. Inadequate document management and control systems.
14. Incomplete or inaccurate document registers; and
15. Disputed record attributes e.g., not approved, not an “original”, not signed.

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.


Claims Management [email protected]

2- Mechanisms are used to evaluate labor Productivity.


There are numerous methods to evaluate labor productivity, measured mile is one of the
preferred techniques perceiving labor productivity. This article discusses an actual claim
scenario by applied measured mile technique.

Construction Labor Hour Productivity.

Productivity case studies of a project (A)

The analysis has been established to compare the level of productivity achieved in areas or
periods of the works impacted by identified disruption events with productivity achieved on
identical or like activities in areas or periods of the works not impacted by those identified
disruption events.

1st Scenario, the contractor has executed 10000 EA brick walls on 19 working days with 1350
Man-hours.

Activity ID Activity Description Actual Start Actual Finish Working (D)


VC-152-100 Installing brick walls 1-April-24 22-April-24 19 W-D

The task /Activity has been executed on 19 working days. And the team worked without any
disruption and the predecessor’s activities finished on time and successors activities have
started on time without any delays.

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.


Claims Management [email protected]

Actual Handcount
12

10

0
Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day- Day-
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Handcount 5 7 8 9 9 10 10 11 11 9 8 8 7 5 4 4 4 3 3

(Anon., n.d.)

2nd Scenario, the contractor has executed 10000 EA brick walls on 24 working days with 1600
Man-hours.

Activity ID Activity Description Actual Start Actual Finish Working (D)


VC-153-100 Installing brick walls 12-April-24 10-May-24 24 W-D

The task /Activity has been executed on 24 working days. And due to the piece meal of design
and drawings suspension the crew efficiency has been disturbed.

Frequent design changes during the constructions had disrupted the workflow, lead to rework,
and extended the activity timeline.

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.


Claims Management [email protected]

Actual Handcount
12

10

0
Da Da Da Da Da Da Da Da Da Da Da Da Da Da Da
Da Da Da Da Da Da Da Da Da
y- y- y- y- y- y- y- y- y- y- y- y- y- y- y-
y-1 y-2 y-3 y-4 y-5 y-6 y-7 y-8 y-9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Disruption Period 5 7 8 9 9 10 9 6 6 9 3 8 8 7 4 4 5 8 3 3 3 3 3 3

Disruption VS NON Disruption


12
10
8
6
4
2
0

Disruption Period NON-Disruptive Period

3-Analysis of man-hours and productivity in affected or disrupted period.

The performance index or productivity factor (PF) of labor is then calculated.


in the same way as in the Earned Value Costing method.

Achieved man-hours during the period.


PF =
Achieved man-hours during the Impacted Period

Actual man-hours expended during the period = 1600 MHR


Planned (or achieved) man-hours during the period = 1350 MHR

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.


Claims Management [email protected]

Achieved man-hours during the period, 1350MHR.


PF = 0.84
Achieved man-hours during the Impacted Period, 1600MHR.

that is, for every 1.0 man-hour worked, 0.84 man-hour's value of work.
was produced, in the disruption period.

Here Causes of disruption and loss of efficiency. (Thomas, 2008)

• Inaccurate detailed drawings


• Rework/corrective work
• Ripple effect of multiple changes
• Delayed or hindered access
• Adverse weather (usually severe)
• Environmental conditions
• Crew overloading/crowding
• Out of sequence working
• Learning and ‘un-learning’ curves (learning curves repeated)
• Fatigue (overtime/shift working)
• Dilution of supervision
• Stacking of trades in confined space
• Repeated learning cycles or curves
• Out of sequence access to work faces
• Congestion at work faces (confined space, confusion, safety hazards)
• Stacking of trades (activities, accomplished concurrently)
• Increase in labor gangs or labor force (above optimum levels)
• Increase in shifts
• Out of sequence working or changes in sequence of works (based

4-Conclusion

To conclude, this article discussed the cornerstones of the analysis of disruption claims, especially loss of
productivity. And disruption claims allow contractors to seek financial compensation for the additional
costs incurred due to unforeseen disruptions. This can include costs associated with extended project
durations, increased labor, additional materials, and equipment usage.

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.


Claims Management [email protected]

And the article proved that comprehensive record-keeping is vital for substantiating claims and can be
beneficial for post-project evaluations, audits, and in the event of legal proceedings.

Ahmed Ibrahim, PE, PMP, PMI, SP

Dynamic and results-oriented Planning Manager with over 12 years of


experience in the field of project planning and management. Proven track
record of successfully overseeing complex projects from inception to
completion, optimizing resources, and ensuring timely delivery within
budget constraints. Adept at utilizing advanced planning tools and
techniques to streamline processes and enhance project efficiency.
Excellent leadership, communication, and critical thinking skills, with a
strong focus on achieving organizational goals.

Anon., n.d. Estimating Lost Labor Productivity in Construction Claims. AACEI 25R-03 ed. s.l.:s.n.

SCL, 2017. Society of construction law Protocol. s.l.:s.n.

SCL, n.d. s.l.:s.n.

Thomas, R., 2008. Delay Analysis in Construction Contracts. s.l.:Blackwell Publishing.

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