Construction Productivity Analysis
The construction productivity experts at Blue Marble Risk Solutions analyze the cause-and-effect relationship of complex construction issues affecting construction productivity to prepare and evaluate productivity claims as claims consultants; advise dispute resolution strategies as consulting experts; and deliver expert witness testimony for litigation, arbitration, mediation, and other dispute resolution forums.
On capital projects, construction productivity can be a critical factor influencing project cash flow and profitability. Construction contractors and subcontractors are typically compensated for work completed in accordance with project plans and specifications, and payments are commonly based on overall construction progress or progress toward a set schedule of values. In general, the contract provisions determine the allocation of risk for lost construction productivity, but, in many cases, contractors and subcontractors are rarely compensated for added labor and equipment hours due to construction productivity loss, unless a reasonable basis for recovery can be established.
During the execution of construction projects, here are numerous events or circumstances that can negatively impact construction productivity, including cumulative or ripple effects, excessive overtime, resource shortages, rework or errors, schedule compression or acceleration, site congestion or trade interference, and unusually severe weather. When a contractor or subcontractor is not able to accomplish, or is impeded from accomplishing, its anticipated achievable rate of production, the project cost and schedule are negatively impacted. Unless mitigation measures are implemented, construction costs increase and schedule activities lengthen. Without detailed contemporaneous construction productivity tracking and documentation by contractors and subcontractors, construction productivity losses can be difficult to detect during construction. This difficulty often delays written notice concerning owner impacts and postpones the resolution of lost productivity damages until later in the project, after cost and schedule impacts have been realized.
Construction productivity losses frequently result in contentious disputes between owners, contractors, and/or subcontractors, typically due to disagreements concerning causation and quantification. Contractors and subcontractors commonly attribute construction productivity losses to changes and/or disruptions, while owners may attribute losses to estimating errors and/or poor project management. Further complicating matters, productivity impacts can be difficult to quantify and apportion with the degree of precision often desired to facilitate resolution. For these reasons, contract disputes concerning lost construction productivity often become construction claims or the topic of dispute resolution proceedings.
Once labor productivity issues reach the point of dispute resolution, courts and alternative dispute resolution forums frequently rely on qualified construction productivity experts to identify root cause(s) and quantify and apportion labor productivity losses. The construction productivity experts at Blue Marble Risk Solutions have broad experience with construction productivity issues on capital projects, including conducting contemporaneous productivity evaluations for research studies, providing construction productivity improvement programs, and performing expert analysis for litigation and alternative dispute resolution. Additionally, our construction productivity experts have a comprehensive understanding of the principles, practices, and standards of care, known as industry best practices, that are applied to facilitate successful project planning and execution. The unique blend of productivity expertise and experience with best practice implementation translates into a proven ability to successfully analyze and resolve disputes concerning construction productivity impacts.
Blue Marble Risk Solutions combines the technical expertise of our consultants with a targeted approach, which uses project progress as a leading indicator of labor productivity issues. Our construction productivity specialists combine their thorough understanding of labor productivity analysis and extensive working experience involving construction productivity claims with a targeted analytical approach, which quickly isolates schedule disruptions and productivity losses and demonstrates the cause-and-effect relationship between event(s) and impact(s).
As an integral part of the client/consultant/attorney team, our productivity experts analyze the cause-and-effect relationship of complex construction issues affecting the project schedule and productivity to prepare and evaluate construction claims as claims consultants; advise dispute resolution strategies as consulting experts; and deliver expert witness testimony for litigation, arbitration, mediation, and other dispute resolution forums. Our experts specialize in the following industry-recognized labor productivity analysis methodologies:
- Project Specific Studies
- Measured Mile Study
- Earned Value Analysis
- Project Comparison Studies
- Comparable Work Study
- Comparable Project Study
- Specialized Industry Studies
- General Industry Studies
- Cost Basis
- Total Unit Cost Method
- Modified Total Labor Cost Method
- Total Labor Cost Method
Through the collective expertise and experience of our construction productivity analysis experts, Blue Marble Risk Solutions efficiently evaluates contract requirements, project facts, the nature and context of the issues being analyzed, and the extent of available documentation to identify the productivity analysis method best suited to the project. We then use an efficient, targeted strategy for diligent substantiation research using project documents, data, and witness interviews to deliver to deliver comprehensive analysis and dispute resolution assistance.
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