Pricing Contractor Jobsite Overhead Delay Costs

Why Should You Attend:

When contractors encounter owner caused (excusable/compensable) delay they are typically entitled under the contract to recover both the time resulting from the delay as well as delay damages. Idled equipment/labor and material escalation costs are fairly easily calculated in such situations. Typically, contractors also seek to recover their delay costs (extended field office overhead or general conditions costs) also. Calculating this cost is more complex than dealing with delayed direct costs. There are, at least, eight methods of calculating extended field office overhead costs. None of the calculations arrive at the same daily delay cost.

This webinar will discuss all eight methods – offering commentary on the strong and weak points of each. The training also offers recommendations on how project owners can resolve this dilemma in advance of delays, thus making the issue less contentious should a contractor encounter an owner-caused delay.

Learning objectives:

• Understand what may be included in jobsite overhead costs.
• Learn several methods for calculating general conditions costs resulting from project delays.
• Be exposed to 2 methods of calculating field office overhead costs based on labor cost or labor hours.

Areas Covered in the Webinar:

• In this webinar attendees will learn about the recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
• Attendees will be exposed to the basics of calculating extended field office overhead costs.
• The webinar will discuss the various actual cost methods for calculating extended field office overhead.
• The webinar will explore the various total cost methods of calculating extended field office overhead costs.
• The webinar will discuss how the jury verdict method may be used to make this delay damage calculation.
• Attendees will learn how stipulated contract methods concerning field office overhead may be employed.
• The webinar will identify what costs must be deducted from the submission of field office overhead costs by the contractor.
• The contractor’s obligation to mitigate damages will also be discussed.

Who Will Benefit:

• Attorneys dealing with delay damages.
• Owners and owner representatives assigned to resolution of compensable delay claims.
• Contractor executives, project managers, project sponsors and project control personnel preparing compensable delay claims.
• Construction managers and design professionals performing services during construction.

James G. Zack, Jr, CCM, CFCC, FAACE, FRICS, FGPC, PMP
Principal, James Zack Consulting, LLC

Jim is the Principal, James Zack Consulting, LLC and Senior Advisor, Ankura Construction Forum™. The Forum strives to be the construction industry’s resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Expert Advisor for AlphaSights and Guidepoint Global Advisor. Formerly he was the Executive Director of the Navigant Construction Forum™ and earlier, the Executive Director, Corporate Claims Management Group, Fluor Corporation, one of the world’s largest EPCM contractors. Mr. Zack was previously Vice President of PinnacleOne and the Executive Director of the PinnacleOne Institute and earlier a Senior Construction Claims Consultant for CH2M HILL, Inc. Mr. Zack has, for more than 48 years, worked for both contractors and owners in 36 States in the U.S. and 39 countries abroad. Mr. Zack is a Fellow of AACE, the Royal Institution of Chartered Surveyors, the Guild of Project Controls and, the Society of Construction Claims Specialists International. In the construction claims field, he is a recognized and published expert in mitigation, analysis and resolution or defense of construction claims and disputes. Mr. Zack is a Certified Construction Manager (CCM), a Certified Forensic Claims Consultant (CFCC), an Expert Certified Construction Claims Specialist (ECCCS), an Expert Certified Construction Delay Analyst (ECCDA) and a Project Management Professional (PMP).

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