Construction Damage Assessment & Quantification
Construction projects often experience schedule delays, acceleration, productivity loss, changed work, construction defects, or other issues which can lead to cost impacts. When a party incurs these impacts due to another party’s actions and/or inactions, they typically seek to recover these “damages” from the other party. Developing a proper assessment of the damages incurred and quantifying the cost that should be reimbursed can be a challenging effort. And reaching a settlement with the other party or a dispute decision in support of that position can be even more challenging.
Spire’s construction damages experts can help simplify the process of understanding and recovering damages. Spire’s experts diligently identify, evaluate, quantify, and present damages associated with construction claims and cost overruns—a complex process since damages are often intertwined between various aspects of the project, such as cost estimating, scheduling, and project management. Working methodically through each issue, Spire’s construction damage assessment experts identify liability, validate claims, quantify damages, and assist with resolving disputes. Spire’s experts have experience evaluating a wide range of damage types, often including the following:
- Actual damages
- Indirect and direct work
- Changed work
- Outstanding contract balance
- Cost to repair and correct defective work
- Increased cost to complete work
- Consequential damages
- Extended and/or increased general conditions
- Home office overhead
- Liquidated damages
- Increased labor costs
- Increased material costs
- Idle equipment
- Cost escalation
- Labor productivity loss
Construction Damage Quantification Experts
Conducting a detailed damages analysis involves a review of contemporaneous documents to understand the issues. Spire’s damages experts analyze all relevant documentation, such as contracts, bid estimates, change orders, payment applications, job cost reports, vendor/subcontractor invoices, progress tracking sheets, and correspondence.
Whether you are an owner, program manager, contractor, architect, subcontractor, or attorney, Spire’s construction damages experts are equipped to provide the analytical support necessary to quantify and assist you in recovering damages. As a full-service firm, we understand all aspects of project development and execution and can apply that to ensure that all damages are identified, analyzed, and quantified. Our independence provides an unbiased perspective that helps reach a reasonable resolution, which is supported by Spire’s proven track record.
Spire generally applies the following steps when performing construction damage assessments:
- Entitlement Review – Identifying what damages can be claimed based on contracts, laws, regulations, and/or industry practice.
- Variance analysis – Quantifying the difference between earned value (budgeted cost of work performed) and actual cost of work performed. A negative cost variance typically indicates that an activity or scope of work is over budget or has experienced a cost overrun.
- Causation Analysis – Establishing the facts and timeline to determine exactly what occurred, when, and with what outcomes or impacts. A causation analysis typically determines the cause and effect for which the contractor or owner claims entitlement to compensation.
- Damages Calculation – Quantifying damages using standard industry means and methods, such as discrete quantification of damages and analysis of events, pricing, industry studies, measured mile analysis, and modified total cost.
No matter your job description or role in the construction process, Spire’s construction damages experts are equipped to provide the analytical support necessary to quantify and assist you in recovering damages. Contact our team to learn more about our assessment of damages services and what we can do for you.