When a loss event occurs at a construction site, such as a fire or flood, the work of establishing the quantum of loss is complex. Both ‘hard costs’—damage to equipment and materials—and the impact on labour productivity must be considered. While the method for estimating hard costs is based on a known quantity, the methodology for untangling the true cost of impacts of labour productivity loss is less well-understood.
The Construction Claims team at 30 Forensic Engineering has the expertise required to provide complete Loss of Productivity (LOP) assessment to our clients in the insurance industry.
Established in 2014, the Construction Claims group offers the following unique services to clients:
- Claim Preparation
- Evaluation of Claim Submissions by Others
- Schedule Delay Analysis / Extension of Time Assessments
- Assessing the Impact of Changed and/or Additional Scope
- Productivity Loss / Earned Value Assessments
- Forensic Cost Analysis / Quantification of Damages
- Expert Reports & Testimony / Litigation Support
According to Doris Marshall, CEC, Principal of the Construction Claims group at 30 Forensic Engineering, “traditionally, Loss of Productivity assessments have been lumped in with estimating services—but it’s a very different process and requires different expertise.” Many labour-related factors are involved in assessing productivity loss—from trade stacking, disruption of the original work crew, upending of logistical factors, to morale and seasonal changes, etc. In addition, a high-quality Loss of Productivity assessment requires that any LOP associated with the loss event be clearly delineated from any LOP pre-dating the incident. Identifying these nuances requires detailed analysis of contemporaneous records and an experienced eye. “Typically, a traditional estimate-based approach to assessing these costs leads to over-evaluation of the actual damages incurred”, says Doris. “We can do this work more accurately.”
For more information regarding our Productivity Loss Assessment services or other service offerings, please contact:
Team Lead, Project Coordination
Principal, Construction Claims
Lead, Construction Claims