The "discrete damages/cost variance analysis method" for quantifying construction claim damages involves the specific distribution of all costs incurred on the project rather than quantifying only certain parts of the cost or damage analysis as may be used in the other methods.
ABSTRACT - This paper provides guidelines to commercial construction cost engineers for the development of a plan for obtaining and utilizing subcontractor cost information for use in bidding, procurement, scheduling, change order management, and claim management. The paper is based upon personal field experience gained in cost engineering, scheduling, bidding, planning, contracting, and claim analyses.
A component of a construction claim often relates to the cost, quantity, and quality of the materials that the contractor installed on a project. The contractor frequently purchases these materials and agrees to install the quantities of materials on a unit price basis, i.e., a unit price that includes both the cost of the materials and the cost to install them.