1. JOHN DELANEY - FRICS, MSCSI, FCIArb ASSOCIATE DIRECTOR – HKA LONDON
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Delay / disruption / acceleration – loss of productivity. A COMMERCIAL overview
JOHN DELANEY - FRICS, MSCSI, FCIArb ASSOCIATE DIRECTOR – HKA LONDON

2. introduction Society of Construction Law Delay and Disruption Protocol
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
introduction
Society of Construction Law Delay and Disruption Protocol
Delay – work activities take longer than anticipated
Implications – for Contractor and for Clients
Disruption – disturbance – hindrance – interruption – lower productivity
Consequences of delay and or disruption

3. Delay Vs. disruption Disruption is not Delay
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Delay Vs. disruption
Disruption is not Delay
Disruption may cause Delay
Disruption may be caused by Delay

4. Delay vs. disruption American Case of ‘Bell V’s USA’
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Delay vs. disruption
American Case of ‘Bell V’s USA’
Delay Claim – captures time and cost of NOT BEING ABLE TO WORK
Disruption Claim – captures the cost of WORKING INEFFICIENTLY

5. CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
acceleration
“The application of additional resources or alternative construction sequences or methodologies seeking to achieve the planned scope of work in a shorter time than planned or execution of additional scope of work within the original planned duration” – SCL Protocol 2nd Edition
Mitigation

6. Acceleration claim Non Productive Overtime Additional Resources
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN 29 JUNE 2017
Acceleration claim
Non Productive Overtime
Additional Resources
Loss of Productivity
Increased Plant Costs
Credits

7. delay claim Linked to a claim for an extension of time.
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
delay claim
Linked to a claim for an extension of time.
Not necessarily a loss of productivity claim.
Typically based on the extended contract duration and the consequential time related costs that are incurred in that period

8. CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
disruption claim
Objective is to demonstrate the loss of productivity and additional expense incurred as a result of events for which the Employer is responsible.
A disturbance, hindrance, or interruption to a Contractor’s normal working methods, resulting in loss of productivity.

9. Loss of productivity Variations Dilution of Supervision Trade Stacking
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Loss of productivity
Staffing levels – Beware the Saturation Point
Variations Dilution of Supervision Trade Stacking
Acceleration Learning Curve
Logistics and Site Restrictions
Defective works Partial possessions Staff Morale
Adverse Weather Errors and Omissions

10. Loss of productivity claim – 3 golden rules
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Loss of productivity claim – 3 golden rules
1. LIABILITY
2. CAUSATION
The ship that sunk.
Cause A – the storm?
Cause B – the torpedo?
3. LOSS AND EXPENSE SUFFERED

11. Disruption analysis methods
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Disruption analysis methods
PRODUCTIVITY BASED
Measured Mile Analysis Earned Value Analysis
Programme Analysis Work or Trade Sampling
Systems Dynamics Modelling Project Comparison
Industry Studies

12. Disruption analysis methods
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
Disruption analysis methods
COST BASED
Estimated V Incurred Labour
Estimated V Used Cost

13. The evaluation of a Loss of productivity claim
CMG CONFERENCE – DUN LAOGHAIRE DUBLIN
6 SEPTEMBER 2017
The evaluation of a Loss of productivity claim
1. LIABILITY
2. CAUSATION
3. LOSS AND EXPENSE SUFFERED
(i) Has the sum claimed been paid?
(ii) Whether the sum claimed has been incurred in consequence of the failure(s) complained of?
(iii) Whether the sum claimed and/or paid is reasonable in the circumstances?

14. Worked example: 3 Plumbers / 1 Apprentice & A Boiler

15. Worked example: paid for the additional hours only

16. Worked example: paid for the additional hours & Adjustment for unproductive working

17. Worked example: paid for the additional hours & productivity based adjustment

19. Construction: the least efficient industry
“Productivity in the construction industry is notoriously low.. Since 1995 the global average value- added per hour has grown at around a quarter of the rate in manufacturing... Building trade is worth $10trn per year or 13% of world output.. Fragmented structure.. Highly cyclical..”

20. JOHN DELANEY Associate Director HKA johndelaney@hka.com
06 September 2017
Questions?
JOHN DELANEY Associate Director HKA