Loss Of Productivity In Construction Contracts

Productivity loss claims are one of the biggest issues in construction arbitration and litigation. Whilst there are many factors that cause lost productivity, and the subsequent complaints and additional costs routinely made during the course of a construction project, they remain notoriously difficult to prove.

The generally preferred method for valuing loss in labour productivity due to disruption is by use of the "measured mile" technique. However, without proper cause and effect analysis to establish a correlation between the loss of productivity and the alleged cause, the measured mile will just be another global claim and will fail to demonstrate the actual cause of the loss of productivity.