As a leading expert in the analysis of Construction Budgets, Costs and Damages, Holloway Consulting is most often retained as the Construction Damages Expert, regardless of the type of construction litigation, claim or dispute.
Cost Variance Analysis
One of the early steps often performed in contemporary construction damages analyses is the cost variance analysis, or CVA, which is comprised of three major elements:
- Project Work Activities
- Damages Analysis Components
- Cost Categories
Project Work Activities are synonymous with CSI Divisions.
Damages Analysis Components are comprised of contract, non-compensable and compensable costs.
Cost Categories are comprised of labor, material, equipment and subcontract costs.
After the CVA has begun, and if labor costs and causes become issues, Holloway can perform various types of expert analysis.
Construction Labor Productivity Analysis
Holloway has worked in field implementing systems to measure and monitor labor productivity. We are also expert in the retrospective use of methods to show the causes and quantum of labor losses.
Construction Damages Analysis Methods
Specific Cost Method
This method quantifies the specific costs associated with a particular causal event(s) or claim. By way of example, if the contractor identifies a changed condition associated with a particular scope of work in the field, he/she might open a new cost account code and charge all related costs to that account. When the changed work is completed, and if costs have been accumulated properly, such costs should represent the claim amount.
Should Have Cost Method
With this method, either estimated or incurred costs can be compared to budgeted costs to form the damages claim.
Modified Total Cost Method
The measure of construction damages calculated by subtracting total revenues from total cost incurred minus non-compensable costs.
Total Cost Method
The measure of construction damages calculated by subtracting total revenues from total cost incurred. This method is widely disfavored.
Jury Verdict Method
The “reasonable” damages incurred by the plaintiff calculated by subtracting the contract amount, bid errors and non-compensable costs from total incurred costs.
Quantum Meruit Method
The measure of damages where an express contract is mutually modified by the implied agreement of the parties, or not completed. While there is often confusion between the concept of quantum meruit and that of “unjust enrichment” of one party at the expense of another, the two concepts are distinct.
See Related Selected Pages at our site hcgexperts.com
| Holloway Consulting Construction Consultants | Construction Scheduling Consultants | Construction Schedule Consulting | | Construction Management Services | Claims Services | Claims In Construction | Construction Claims Consultant | Construction Consultants | Construction Claims Expert | Project Scheduling Consultants | Scheduling Consulting Firm | CPM Scheduling | Construction Contractor Claims | Claims Consultants | Holloway Claims Consultants | Differing Site Conditions Claims | Contractor Claims Consulting | Defective Plans and Specs | Defective Contract Documents | Construction Consultant | Fixed Price Contracts | Schedule Acceleration | Design, delays and defects | Damages Analysis | Oil & Gas Project Claims | Pipeline Projects | Power Generation Projects | Delay Analysis Publications |