Productivity loss claims are one of the biggest issues in construction arbitration and litigation. Whilst there are many factors that cause lost productivity, and the subsequent complaints and additional costs routinely made during the course of a construction project, they remain notoriously difficult to prove.
The general preferred method for valuing loss in labour productivity due to disruption is by use of the “measured mile” technique. However, without proper cause and effect analysis to establish a correlation between the loss of productivity and the alleged cause, the measured mile will just be another global claim and will fail to demonstrate the actual cause of the loss of productivity.
This article examines loss of labour productivity caused by project changes and disruptive events and looks at the key requirements to quantify these losses.
Adi Alsaeedy is a Director at FTI Consulting in Qatar. He has over 30 years of experience in the construction industry, combined with robust experience in matters relating to delay, acceleration, disruption and loss of productivity.