👉Claim Analysis Related to Quantities, Man-Hours, and Costs: A Step-by-Step Guide*
📜Introduction
⏺Claims analysis related to quantities, man-hours, and costs is a critical aspect of construction projects.
⏺This article provides a detailed guide to performing a claims analysis, whether preparing a claim or defending against one.
🏷Obtaining and Reviewing Contractor's Bid and Budget*
1. *Obtain and Review Bid Estimate Calculations and Assumptions*: Obtain and review the contractor's bid and bid estimate calculations and assumptions, including productivity, material quantities, labor rates, contingency, field and home office overhead amounts, and profit.
2. *Determine Reasonableness of Bid*: Determine if the bid was reasonable, or if there could have been an underbid or bid error.
3. *Obtain and Review Budget and Revised Budget Information*: Obtain and review the contractor's budget and revised budget information, including quantity, man-hour, and cost data and underlying assumptions, noting any differences from the bid estimate.
🔰Analyzing Quantities, Man-Hours, and Costs
1. *Obtain and Review Actual Quantity, Man-Hour, and Costs Data*: Obtain and review the contractor's actual quantity, man-hour, and costs data.
2. *Determine Extent of Additional Work*: Determine the extent to which the contractor coded its additional man-hours and costs to discrete change-related cost codes.
3. *Evaluate Work Breakdown Structure (WBS) Coding*: Evaluate the contractor's WBS coding and/or cost account structure to determine if claims can be assessed by discipline, work area, timeframe, etc.
⭐️Preparing Variance Analyses*
1. *Prepare Quantity Variance Analysis*: Prepare a quantity variance analysis by material type or detailed WBS/cost account to determine which types of materials had significant variances when planned and actual quantities are compared.
2. *Prepare Man-Hour Variance Analysis*: Prepare a man-hour variance analysis, comparing budgeted and actual man-hours at the most detailed level of the information available.
3. *Prepare Cost Variance Analysis*: Prepare a cost variance analysis, comparing budgeted and actual costs at the most detailed level of the information available.
🚧Preparing Disruption or Loss of Productivity Claim*
1. *Confirm Contemporaneous Estimates*: Confirm contemporaneous estimates included in the change order documentation.
2. *Evaluate Additional Costs*: Evaluate and confirm additional costs using invoices and/or labor man-hours and costs from discrete change-related accounts.
3. *Estimate Extent of Additional Work*: Estimate the extent of the additional work.
🚧Preparing Prolongation or Delay Claim*
1. *Quantify Time-Related Field Overhead Costs*: Quantify the contractor's average time-related field overhead costs by day, week, or month.
2. *Calculate Delay Damages*: Calculate the contractor's delay damages using the results of the schedule analysis for compensable delay.
🚧Preparing Narratives and Supporting Documentation*
1. *Prepare Narratives*: Prepare narratives with supporting documentation that describe the information utilized, the problems encountered, the analyses performed, and the results of the damages calculations.
@etconp
📜Introduction
⏺Claims analysis related to quantities, man-hours, and costs is a critical aspect of construction projects.
⏺This article provides a detailed guide to performing a claims analysis, whether preparing a claim or defending against one.
🏷Obtaining and Reviewing Contractor's Bid and Budget*
1. *Obtain and Review Bid Estimate Calculations and Assumptions*: Obtain and review the contractor's bid and bid estimate calculations and assumptions, including productivity, material quantities, labor rates, contingency, field and home office overhead amounts, and profit.
2. *Determine Reasonableness of Bid*: Determine if the bid was reasonable, or if there could have been an underbid or bid error.
3. *Obtain and Review Budget and Revised Budget Information*: Obtain and review the contractor's budget and revised budget information, including quantity, man-hour, and cost data and underlying assumptions, noting any differences from the bid estimate.
🔰Analyzing Quantities, Man-Hours, and Costs
1. *Obtain and Review Actual Quantity, Man-Hour, and Costs Data*: Obtain and review the contractor's actual quantity, man-hour, and costs data.
2. *Determine Extent of Additional Work*: Determine the extent to which the contractor coded its additional man-hours and costs to discrete change-related cost codes.
3. *Evaluate Work Breakdown Structure (WBS) Coding*: Evaluate the contractor's WBS coding and/or cost account structure to determine if claims can be assessed by discipline, work area, timeframe, etc.
⭐️Preparing Variance Analyses*
1. *Prepare Quantity Variance Analysis*: Prepare a quantity variance analysis by material type or detailed WBS/cost account to determine which types of materials had significant variances when planned and actual quantities are compared.
2. *Prepare Man-Hour Variance Analysis*: Prepare a man-hour variance analysis, comparing budgeted and actual man-hours at the most detailed level of the information available.
3. *Prepare Cost Variance Analysis*: Prepare a cost variance analysis, comparing budgeted and actual costs at the most detailed level of the information available.
🚧Preparing Disruption or Loss of Productivity Claim*
1. *Confirm Contemporaneous Estimates*: Confirm contemporaneous estimates included in the change order documentation.
2. *Evaluate Additional Costs*: Evaluate and confirm additional costs using invoices and/or labor man-hours and costs from discrete change-related accounts.
3. *Estimate Extent of Additional Work*: Estimate the extent of the additional work.
🚧Preparing Prolongation or Delay Claim*
1. *Quantify Time-Related Field Overhead Costs*: Quantify the contractor's average time-related field overhead costs by day, week, or month.
2. *Calculate Delay Damages*: Calculate the contractor's delay damages using the results of the schedule analysis for compensable delay.
🚧Preparing Narratives and Supporting Documentation*
1. *Prepare Narratives*: Prepare narratives with supporting documentation that describe the information utilized, the problems encountered, the analyses performed, and the results of the damages calculations.
@etconp