Constructing a claim for lost productivity damages
Abstract: Quantifying the cost of lost productivity when a construction project is disrupted through no fault of the contractor is a difficult challenge. An unanticipated disruption of the project typically causes the contractor to work less efficiently, which can lead to additional labor, equipment and material costs. This article explains that appraisers can use several methods when quantifying lost productivity damages, depending on the particular job’s facts and circumstances. The article also notes that lawyers and damages experts need to work together closely to establish lost productivity and measure it appropriately.