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Disruption is Caused Chaos of the Workflow

Impacts and their resulting delays are specific, singular events of conditions that result in the project completion, contract milestones or one or more work actively starting or completing later than originally planned. Disruptions include the effects of individual or multiple delays, as well as interruptions to the planned method, manner, sequence, and duration of work activities directly and/or indirectly associated with the impacting event. Disruptions usually affect labor productivity and can cause significant cost overrun variances in labor and equipment budgets. Disruptions are often contributing causes to a project delay when the delay-related impacts ripple throughout the project to both the work activities directly changed and the unchanged work not directly affected.

Some possible resulting costs from delays and disruption-caused efficiency loss:

       
  Extended project management support
  Extended engineering staff
  Extended administrative support
  Extended project and home office overhead, and general conditions costs
  Idle tools and equipment
  Direct costs of the change work directly affected by the delay
  Efficiency decreased due to re-sequencing work or additional work activities in progress at a given time
  Performance extended into a period of adverse weather
  Dilution of supervision due to additional work activities to be manages
  Overcrowding of trades
  Acceleration– premium time/increases in manpower
       

Some Elements to consider and explore:

       
  Was timely notice of impacts given?
  Did any of the impacts occur before or after the noticed period?
  Were an accord & satisfaction given on any of the disruptions included?
  Did claimant support its position using only one methodology?
  Was baseline productivity realistic and achievable based on other similar work?
  Did claimant actually compare identical or very similar work?
  Does adequate contemporaneous documentation exist and is it useful?
  Did claimant objectively assess the contemporaneous project data?
  Did the claimant cherry-pick from the best productivity of a "measured mile" analysis?
  Did claimant offer unwarranted extrapolations in its cost estimate? Did claimant misuse any industry studies?
  Is it a total cost claim, and if so, did claimant satisfy the four-part test?
  The impracticality of proving the cost of the "extra work" by other means
  The reasonableness of the contract price
  The reasonableness of the actual costs
  The lack of responsibility for the increased cost of performance
  Were there any underbid items?
  Did the contemporaneous project cost data comport with claimed cost data?
       

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Contributor

James G. Zack, Jr.
Executive Director
Navigant Construction Forum,
Navigant Consulting, Inc.
Website

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