Productivity Loss & Disruption

Global Construction Disruption Methodology

BRG’s Global Construction disruption experts ascertain methodology selection based on the circumstances of the nature of the dispute, documentation available, and contractual requirements. Complaints of “disruption” or “productivity loss” and additional costs are made routinely during the course of a construction or engineering project, yet they are traditionally difficult to prove.

Contractors struggle with disruption claims largely because productivity losses often are difficult to identify and distinguish at the time they arise, as opposed to other monetary claims that are more directly concerned with the occurrence of a distinct and compensable event, together with a distinct and direct consequence, such as an instruction for a variation, change during the normal progress of the works, or a properly notified compensation event. BRG experts have significant experience demonstrating productivity loss over myriad project types around the world.

The cause-and-effect burden of proof is the same for a claim for loss of productivity as for any other claim, insofar as the claiming party first must establish that the event or factor causing the disruption is a compensable risk event under the contract. To do this, the contract needs to be reviewed to understand the basis of the agreement, as certain productivity issues may have been foreseeable and therefore accounted for within the claimant’s productivity allowances. The contract also may identify if a party expressly accepted certain productivity risks at tender.

BRG’s disruption experts are well versed in a variety of methodologies to demonstrate productivity loss, including:

• Measured mile
• Least impacted
• Earned value
• Sampling studies
• Industry-specific studies
• General industry studies
• Modified total cost claims
• Factor-based approached (e.g., MCAA)