Methods For Calculating Delay Claims In Florida Construction Projects

Florida construction contractors know that all the best-laid plans and strategic coordinating in the world cannot completely prevent delays on projects. The issue is not unique to the Sunshine State, however, as results from a survey on global construction projects reveal. Just 25 percent of respondents reported that their projects came within 10 percent of their original deadlines within the last three years. Of course, the “ripple” effect of delays also carries the potential for significant financial losses. The same respondents stated that only 31 percent of their projects came within 10 percent of their initial budget.

Because you cannot prevent delays from occurring, it is important to understand various methods for calculating the losses to different stakeholders in a construction project. There are multiple options based upon the critical path method (CPM), so you should trust a Florida delay claim attorney to preserve your interests. You may be in the position to leverage different approaches for calculating losses, such as: 

Retrospective Delay Impacts 

In many situations, the parties will have to rely on hindsight to guide them in assigning delay losses. Methods for assessing the impact of delays include:

• As-Planned v. As-Built: Progress compared to the baseline schedule is the focus, and there can be discrepancies when comparing the actual start and finish to what the parties planned. The calendar is fluid in the sense of durations for each stage.
• Windows Assessment: As-built is also important when the parties segment the project into windows of time, using the CPM to update the schedules within this framework.
• Collapsed As-Built: This approach condenses delay events to evaluate how they would impact the project if everything would have gone as planned.

Prospective Delay Calculations 

When practical, parties can insert potential delays into the construction project timeline when they occur. The impacted as-planned approach to delays transitions the critical path to a new completion date – i.e., the delay event impacts the as-planned schedule according to a structured baseline. New delays can be inserted into the adjusted schedule as they occur, so the assessment does not depend upon as-built data. Delay is calculated according to the actual completion date within the adjusted timeline, compared to the as-planned date.

A time impact analysis is another method for arriving at a prospective delay calculation. Delay events are evaluated based upon the most recent, updated schedule that was in place prior to the disruption. Losses are based upon the difference between the completion date listed in the existing schedule and the actual date of completion. 

Reach Out to a Palm Beach County Construction Delays Lawyer 

Construction delays are inevitable, yet unexpected, putting Florida contractors at risk without a method for calculating losses. When stakeholders to a construction contract do seek to apply a formula, there can often be disputes and finger-pointing over whose version is most appropriate. Our attorneys at Linkhorst & Hockin, P.A. can advise you, help you prepare, and assist with legal options if you are faced with such a situation. Please contact our offices in Jupiter, FL today to set up a consultation.

Resource:

assets.kpmg/content/dam/kpmg/pdf/2015/04/global-construction-survey-2015.pdf