- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 07 Dec 2021
Disruption claims in construction
If disruption is caused by the employer, the contractor may have grounds to seek compensation. Disruption, and claims arising to try and recoup losses incurred from it, are common on construction projects, particularly on larger and more complex projects.
The difference between disruption and delay is that the latter relates to lateness rather than productivity, although they can often be related. Delays can cause disruptions, and vice versa. Despite their inter-relation, they require a different approach to assessing claims.
When evaluating claims for delay, the terms of the specific contract are the usual starting point, and evidence is required that certain circumstances caused the delay. The terms of the contract are less useful when evaluating disruption claims. Instead, the contractor must provide reasonable evidence that:
- Progress of the works has been disrupted.
- Which element of the works and which trades have been disrupted, why losses occurred, and so on.
- The disruption incurred additional costs.
- The cause of the disruption constitutes a breach of contract.
Evidence will normally take the form of documented records demonstrating that disruption caused losses. However, this can prove difficult as the contractor can often not detect disruption until after it has occurred. In addition, isolating the loss of productivity to the cause of the disruption can be difficult as it may coincide with several other factors, and the effect of the disruption may be hidden by other issues.
- Measured mile analysis: Compares actual labour performance between two periods – a normal measured mile period and an impacted period.
- Baseline productivity analysis: A more conservative estimate used when an unimpacted section of the works is too difficult to isolate.
- Earned value analysis: Compares the amount and cost of work that was planned to have been done by a particular stage with the amount that has actually been done and what it has actually cost.
Anticipate, react, recover; Resilient infrastructure systems, published by the National Infrastructure Commission in May 2020, defines disruption as: ‘A disturbance which interrupts the usual functioning of an infrastructure system or service, and its impacts.’
Featured articles and news
What will it take to stop it ?
To celebrate world bee day 2022 !
Not forgetting part F and the new part overheating part O.
As energy prices jump up in cost.
With people in the UK from Ukraine.
Industry leader Steve Murray takes on role.
An abundant and versatile building material.
600,000 heat pump installations targeted per year by 2028.
Helping prevent those unwanted outcomes.
How has transport changed due to Covid-19 ?
Will you need it ? after June 15 and the new Part O ?
Create an account and write the first of many articles.
CIAT commentary after the first meeting.
Who is to blame?
Research recommends focussing on portfolio success rather than project success.
The revised standard for mapping underground utilities.
Cross-industry steering group seeks support in delivery.