Estimating Lost Labor Productivity in Construction Claims

Published in: 
AACE International Recommended Practice No. 25R-03
Publication Date: 
2004
Author(s): 
Donald F. McDonald, Jr., PE CCE
Author(s): 
James G. Zack, Jr.

Mark Sanders is a contributing author to this AACE International Recommended Practice. 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.

Acknowledgments: 

Donald F. McDonald, Jr., PE CCE (Author)
James G. Zack, Jr., (Author)
David Armstrong
Jack H. Bess
Robert A. Boyd
Bruce E. Bradley
Randy M. Brake
Joseph A. Brown, CCE
Timothy T. Calvey, PE
Donald J. Cass, CCE
R. Jay Colburn
Edward E. Douglas, III CCC
Donald J. Fredlund, Jr.
Fred W. Giffels
David W. Halligan
Peter Heroy
Lee J. Hobb
Kenji P. Hoshino
Dr. Kenneth K. Humphreys, PE CCE
Anthony G. Isaac
Richard M. Kutta, CCE
Dr. Richard E. Larew, PE CCE
Paul Levin
John D. Marshall, Jr.
Jeffery L. Ottesen, PE
Stephen O. Revay, CCC
Rick Richison
Wisley Saintelmy, PE
Mark C. Sanders, PE CCE
L. Lee Schumacher
Dr. Amarjit Singh, PE
Richard D. Smith, PE CCE
Theodore J. Trauner
Tony Tuinstra, P.Eng.
Anthony J. Werderitsch, PE CCE
William R. Zollinger, III, PE

Reprinted with the permission of AACE International,
209 Prairie Ave., Suite 100, Morgantown, WV 25601 USA.
Phone: 800-858-COST/304-296-8444. Fax: 304-291-5728.
Internet: http://www.aacei.org. E-mail: info@aacei.org.
Copyright 2010 by AACE International. All rights reserved.