Pricing Jobsite Overhead Delay Costs (CCL172M)

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Get a Better Understanding of Calculating and Pricing Contractor Delay Damages.

When contractors face delays caused by owner (compensable/excusable), they are usually entitled under the contract to recover both the delay damages and the time resulting from the delay. Idled labor/equipment and material escalation costs are calculated fairly easily in such scenarios. Usually, the contractors seek to recover the delay costs too (extended field office overhead or general conditions costs).  Calculating this cost is more complicated than handling delayed direct costs. To calculate extended field office overhead costs, there are at least eight methods. None of these calculations arrive at the same daily delay cost.

In this session, expert speakers, Megan S. Wells, CMA and James G. Zack, Jr., CCM, CFCC, FAACE, FRICS, FFA, PMP will discuss all the eight methods with you and offer commentary on the weak and strong points of each. They will also offer recommendations on how project owners can solve the dilemma in advance of delays, thus making the issue less contentious should a contractor comes across an owner-caused delay.

You will have a better understanding of the problems related to the pricing of contractor delay damages after attending this webinar. Contractors will gain understanding about the various methods of calculating extended field office overhead costs. Owners will gain knowledge about 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 expenses.

Session Highlights

• Recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
• Basics of calculating extended field office overhead costs.
• Analyze the various actual cost methods for calculating extended field office overhead.
• Various total cost methods of calculating extended field office overhead costs.
• How the jury verdict method may be used to make this delay damage calculation.
• 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.
• The contractor’s obligation to mitigate damages.

Session Objectives:

• 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