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Pricing Contractor Delay Costs (CCL750T)

(*) Single User Price. For multiple users please call 1-800-223-8720
Pre Recorded Webinar
90 minutes
  •  Wed, July 8, 2015
Event Description
See the sneak peek before you buy!

8 Methods of Calculating Extended Field Office Overhead Costs

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.

Expert speaker Peter V. Badala and James G. Zack, Jr. will discuss all eight methods – analyzing the strong and weak points of each. The paper 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.

This 90-minute webinar will provide a better understanding of the issues concerning the pricing of contractor delay damages. Contractors will gain knowledge about the various methods of calculating extended field office overhead costs. Owners will learn some contractual methods for predetermining this element of delay costs in order to prevent the need for end of the job audits or disputes over such costs.

Session Highlights:

  • Learn about the recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
  • Insights on the basics of calculating extended field office overhead costs.
  • Discussion on the various actual cost methods for calculating extended field office overhead.
  • Explore the various total cost methods of calculating extended field office overhead costs.
  • Discussion on how the jury verdict method may be used to make this delay damage calculation.
  • Learn how stipulated contract methods concerning field office overhead may be employed.
  • Identify what costs must be deducted from the submission of field office overhead costs by the contractor.
  • Discussion on the contractor's obligation to mitigate damages.

Benefits of the session:

  • You will learn about the recoverability of extended field office overhead costs in the event compensable delay arises on a project.
  • General contractors will gain information on the various accepted methods of calculating this element of delay damages.
  • Owners will be exposed to various methods of specifying this element of delay damages in contracts in order to avoid disputes later on should compensable delay occur.
  • Owners and contractors will receive information on what costs should be deducted from this element of delay damages prior to submittal of costs in a claim.
  • Owners will gain insight into the issue of the contractor's obligation to mitigate damages in the event of owner caused delay.

Who should attend

  • General Contractors
  • Owners and their representatives
  • Design professionals
  • Construction managers
  • Attorneys
About Our Speaker(s)

Peter V. Badala, Construction Law ExpertPeter V. Badala
Managing Director & West Coast Practice Leader, Navigant Global Construction Practice, San Francisco. He 30+ years experience in forensic accounting, auditing, claims consulting & expert testimony on more than 200 projects globally. His Assignments include preparation or defense of claims for changed/extra work... More info


James G. Zack Jr., Construction Law ExpertJames G. Zack Jr.
James G. Zack Jr. is the Executive Director of the Navigant Construction Forum – the construction industry’s global resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Formerly, Executive Director, Corporate Claims Management for Fluor Co... More info

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    Event Title: Pricing Contractor Delay Costs
    Presenter(s): Peter V. Badala , James G. Zack Jr. Protection Status