Calculating Contractor Jobsite Overhead Delay Costs
Jim is the Principal, James Zack Consulting, LLC. Formerly Executive Director of the Ankura Construction Forum™ and prior to this, the founder, and Executive Director of the Navigant Construction Forum™. Earlier, Jim was the Executive Director, Corporate Claims Management Group, Fluor Corporation. Previously he was Vice President of PinnacleOne and Executive Director of the PinnacleOne Institute and prior to this a Senior Construction Claims Consultant for CH2M HILL. For more than 51 years, he has worked on both private and public projects in 36 States in the U.S. and 39 countries abroad. He is a Fellow of AACE, the Royal Institution of Chartered Surveyors, the Guild of Project Controls, and the Society of Construction Claims Specialists. In the construction claims field, he is a recognized and published expert in mitigation, analysis and resolution or defense of construction claims and disputes. He is a Certified Construction Manager, a Certified Forensic Claims Consultant, an Expert Certified Construction Claims Specialist, an Expert Certified Construction Delay Analyst, and a Project Management Professional.
- Learn about the recoverability of extended field office overhead costs in the event a compensable delay arises on a project
- General Contractors and subcontractors will gain information on the various accepted methods of calculating this element of delay damages
- Owners will be exposed to various methods of specifying this element of delay damages in contracts to avoid disputes later should a compensable delay occur
- Owners and contractors will receive information on what costs should be deducted from this element of delay damages prior to submission of costs in a claim
- Owners will gain insight into the issue of the contractor’s obligation to mitigate damages in the event of owner caused delay
Areas Covered
In this webinar attendees will learn about the recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
- Attendees will be exposed to the basics of calculating extended field office overhead costs
- The program will discuss the various cost methods for calculating extended field office overhead
- The program will explore different methods of calculating extended field office overhead costs
- The program will discuss how the jury verdict method may be used to make this delay damage calculation
- Attendees will learn how stipulated contract methods concerning field office overhead may be employed
- The program will identify what costs must be deducted from the submission of field office overhead costs by the contractor
- The contractor’s obligation to mitigate damages will also be discussed
Who Should Attend
- Owner and Contractor Project Managers
- Resident Engineers or Architects
- Agency Construction Managers
- Construction Managers @ Risk
- Design Managers
- Legal Counsel representing owners or contractors.
Why Should You Attend
After attending this webinar attendees will
- Have a better understanding of the issues concerning the pricing of contractor delay damages
- Gain knowledge about the various methods of calculating extended field office overhead costs
- Learn some contractual methods for predetermining this element of delay costs to prevent the need for end of the job audits or disputes over such costs
Topic Background
When contractors encounter owner caused (excusable/compensable) delay, they are typically entitled under the contract to recover both the time resulting from the delay as well as delay damages. Idled equipment/labor and material escalation costs are easily calculated in such situations. Typically, contractors also seek to recover their delay costs (extended field office overhead, general conditions, or jobsite overhead costs) also. Calculating this cost is more complex than dealing with delayed direct costs. There are, at least, eight methods of calculating extended field office overhead costs. None of the calculations arrive at the same daily delay cost. This webinar discusses all eight methods – offering commentary on the strong and weak points of each. The paper also offers recommendations on how project owners can resolve this dilemma in advance of delays, thus making the issue less contentious should a contractor encounter an owner caused delay.
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$200.00
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