Construction delays claims are important to analyze for accurate compensation. Delays are normal in construction projects if not properly planned. According to the recent data, 70% construction firms experienced delays. So, when a delay occurs, it is important to understand how to analyze and calculate claims properly.
We have prepared this guide to help you explore the right methods and calculation approaches. If you are not willing to take risks, then the best thing is to get expert Construction Claim Estimating Services from a reliable source. These experts are well aware of all market conditions that help them provide precise estimates.
READ OUR GUIDE TO UNDERSTANDING HOW CONSTRUCTION DELAY CLAIMS ARE ANALYZED AND CALCULATED!
Understanding Delay Analysis
Construction delay analysis is a process that analyses why a building project took long enough to execute as compared to the plan.
Experts use a special planning method called CPM. It is a method that tracks which task must be executed first.
What it does:
- Finds out what caused the delays
- Measures how much time was lost
- Decides who was responsible for each delay
Insured, the experts gather evidence about the delay. They also figure out what went wrong and determine the solutions for that.
The analysis process is a detailed process that compares:
- as-planned schedules
- periodic updates
- as-built schedules
Primary Analysis Methodologies
As-Planned versus As-Built Analysis
This is one of the most common strategies. This method compares the original plan schedule with the actual schedule. The experts identify the gap between them and how the delay occurred.
It is best for simple projects because they are easy to apply and understand.
Time Impact Analysis
This is a methodology that evaluates the impact of delay on the critical path. The experts recalculate the timeline and analyse how individual delays affect the completion.
This method involves inserting fragnets. It means the combination of one or more activities that can impact the original plan. However, it is reliable for ongoing projects where delays continue.
Windows Analysis
This converts the total project duration into smaller periods or you can say windows. They count all the critical path delays for each period. This analysis measures a combination of delays from the start of the project to the completion.
Well, this method is easier than the other ones because it uses actual data.
Collapsed As-Built Analysis
This methodology works by removing delays from the as-built schedule. Determines when the project should have been completed. This is easy to implement. However, experts use this method because it is detailed and accurate.
Measured Mile Analysis
It is a reliable method for calculating the delayed damages. The analysis compares a non-impacted period of construction work with the impacted one.
Calculation Approaches
Average Project Cost Method
This method for Delay Claim Analysis calculates field office overhead. It takes the total field office cost and divides it by how long the project lasted. The result is multiplied by the delay number. Some of the problems in this method are:
- You can only do this calculation after the project is finished
- Both parties must wait until the end to know the total costs and timeline
- This creates long delays in solving disputes
- Contractors and owners cannot settle their disagreements quickly, as problems happen
- Everyone is stuck waiting, which is frustrating and inefficient
Actual Period Cost Method
In this method, the real field office overhead cost is used that occurred during the exact time of the delay. The challenges of this method are:
- Parties can solve claims right away instead of waiting
- It prevents paying too much or too little money
- Problems occur when the actual delay time doesn’t match the extension time given
Documentation and Evidence Requirements
Successful delay claim analysis depends on the quality of project documentation. Expert evaluations focus on several critical areas:
- The manner in which the project was planned to be constructed, including activities, work sequences, activity durations, manpower, and capital expenditures
- The actual duration and sequences of activities as they occurred
- Variances between planned and actual performance
- Causes of those variances
- Effects of variances on incurred costs
Contractual and Practical Considerations
Make sure the method you choose considers the technical and the actual information. You need to know that the base for any analysis depends on the quality of project schedules. Three things can affect the accuracy if not updated:
- as-built durations
- scope changes
- construction sequencing changes
Some contracts are finalized with no damages for delay. This means that the delays are normal and they are part of the business. No financial compensation for that!
However, construction delays are complex challenges. When multiple delays occur. It impacts the completion dates, which is not good for the building owners.
So, this requires a detailed expert analysis and documentation. The best recommendation is to rely on an expert Construction Estimating Company because they provide pinpoint accuracy. You can complete your tasks on time!
Conclusion
Construction delay claims require detailed and accurate methods. Make sure to select the right one to make accurate judgments. This also depends on the project complexity and available data. Keep in mind that a successful claim combines accurate cost estimates with precise time analysis.