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.
Most construction contracts, whether they are standard or customized forms, usually contain specific provisions related expressly to the process of giving "notice." The notice generally refers to an obligation on the part of the Contractor to notify the relevant party administering the contract, normally the architect, resident engineer, or owner's representative, of a claim or change event that gives rise to possible additional entitlement for time and/or cost.
A construction project involves so many stakeholders *1, each of whom has a several, often competing needs and interests. These interests and parties include, but are certainly not limited to: oneself versus one or more of the other stakeholders, home or business owner, financial, time, aesthetics, functionality, durability, features and specifications of products and materials, regulatory, professional standards, and ethics.
The equitable allocation of responsibility for project delays is essential to the resolution of many construction disputes. Contractors frequently assert that they have been delayed for reasons beyond their control. Owners often remain unconvinced that the Contractor is legitimately entitled to a time extension or delay, acceleration and loss of productivity damages.
Owners, consumers, professionals, tradespeople, vendors, and regulators are all involved in the purchase goods and services. However, how many are actually, accurately aware of their duties and rights for those transactions according to the law? Some parties are ethical and/or competent to make a wise purchase.
By now, you have probably heard about the rules that tell us how to properly manage lead-based paint under the U.S. EPA, the U.S. Dept. of Housing and Urban Development (HUD), the Occupational Health and Safety Administration (OSHA), and most State, County, and Local governments.