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Lost productivity is the toughest dimension to quantify, and that’s where we excel.

Labor productivity is often the most difficult aspect of a project to estimate and control. When workflow is disrupted, lost productivity can be even tougher to measure. However, when properly evaluated, lost productivity can be quantified as damages. That’s where CPMI excels. Our experts serve on the ANSI Society of Civil Engineers (ASCE) 71 industry standards committee for identifying, quantifying, and proving loss of productivity.

Evaluating Lost Productivity

In “Disruption, Inefficiency & Loss of Productivity On Construction Projects” CPMI describes the complexities encountered with regard to entitlement and quantification of productivity loss. If entitlement can be demonstrated, disruption must be quantified using an appropriate method.

Evaluation Methods

Our team’s experience with disruption claims includes the following methods:

  • Bureau of Labor Statistics Bulletin 917
  • Business Roundtable Scheduled Overtime Effect on Construction Projects
  • COVID-19 ELECTRI International Electrical Contractors Study
  • COVID-19 New Horizons Foundation Sheet Metal HVAC and Mechanical Contractors Study
  • Craft worker questionnaires
  • Craft worker sampling
  • Disruption in curtain wall and building enclosure
  • Earned value measured mile
  • Expert judgment
  • Expert visual observation
  • Ibbs curves for overtime and changes
  • Leonard study
  • Line of balance
  • Measured mile comparing the same work
  • Measured mile comparing similar work
  • Measured mile using comparison to a similar project
  • Mechanical Contractors Association of America (MCAA)
  • Modified total cost
  • National Electrical Contractors Association (NECA)
  • Productivity factors
  • Supervisor observations of craft workers
  • Total cost
  • U.S. Army Corps of Engineers (USACE) Modification Impact Evaluation Guide

The Primacy of Measure Mile Analysis

Measured mile analysis is the preferred method of evaluating lost productivity and one of our specialties. As outlined in our co-authored paper “The ‘Measured Mile’ Method For Proving Disruption,” the method requires several types of documentation, including a comparison of impacted versus unimpacted periods.

In Daewoo v. U.S., CPMI performed a measured mile analysis and critiqued the opposing expert’s measured mile “selection of periods.” The U.S. Court of Federal Claims concurred with our expert’s observations.

“Cross examination showed [contractor’s] choices of productive and non-productive periods to be arbitrary at best. More likely, they were chosen to achieve a pre-determined result.”

Daewoo Engineering and Const. Co., Ltd. v. U.S., 73 Fed. Cl. 547, 561 (2006),
judgment aff’d, 557 F.3d 1332 (Fed. Cir. 2009)

The Breadth of Our Experience

Our disruption claims experience ranges from the everyday to the extraordinary.

CPMI has handled numerous COVID-19-related claims filed against contractors, designers, suppliers, and owners, both in preparation and defense, and we contributed to the book COVID-19 Pandemic Impacts in Construction.

Types of Disruption

We have encountered and evaluated virtually every type of workflow interruption:

  • Cumulative impact
  • Disruption in commissioning
  • Disruption in steel fabrication, steel erection, and concrete work
  • Disruption to excavation
  • Disruption to mechanical, electrical, plumbing, and interior finish trades
  • Disruption to rail construction and heavy civil work
  • Equipment disruption
  • General labor disruption