When owners delay the critical path of project schedules and the project duration is extended, contractors are typically entitled to recover both the time resulting from the delay as well as time-related damages. Idled equipment/labor and material escalation costs are direct costs and reasonably easy to calculate. Contractors may also recover their delay costs (extended field office overhead or general conditions costs). Calculating extended general conditions costs is more complex than dealing with delayed direct costs. There are, at a minimum, eight different methods of calculating extended field office overhead costs. None of the calculations arrive at the same conclusions concerning delay damages. This webinar discusses all eight methods – offering commentary on the strong and weak points of each.
Webinar Objectives
After attending this webinar attendees will have a better understanding of the issues concerning the pricing of contractor extended general conditions costs. Contractors will gain knowledge of various methods of calculating extended field office overhead costs. Owners will be exposed to some contractual methods for predetermining this element of delay costs to prevent the need for end-of-the-job audits or disputes over such costs.
Webinar Agenda
- Learn about the recoverability and calculation of extended field office overhead costs when excusable/compensable delay arises on a project.
- Contractors will gain information on various accepted methods of calculating extended general conditions delay damages.
- Owners will be exposed to various methods that may be specified in their contracts to avoid disputes over the calculation of extended field office overhead costs should a compensable delay occur.
- Owners and contractors will receive information on what costs should be deducted from this element of delay damages prior to the submittal of costs in a claim.
- Owners will gain insight into the issue of the contractor’s obligation to mitigate damages in the event of owner caused delay.
Webinar Highlights
- Attendees will learn about the recoverability of extended field office overhead costs, including what field office overhead is and the typical elements of this cost.
- Attendees will be exposed to the basics of calculating extended field office overhead costs.
- The webinar will discuss various actual cost methods for calculating extended field office overhead.
- The webinar will explore various total cost methods of calculating extended general conditions costs.
- The webinar will discuss how the jury verdict method may be used to calculate such delay damages.
- Attendees will learn how stipulated contract methods concerning field office overhead may be employed.
- The webinar will identify what costs must be deducted from the submission of field office overhead costs and what costs may be added to the contractor’s calculations.
- The webinar will also explore the contractor’s obligation to mitigate damages in the event of owner caused delays.
Who Should Attend
- Owners & Contractor Project Managers
- Resident Engineers & Architects
- Agency Construction Managers
- Construction Managers@Risk
- Design Managers
- Legal Counsel representing project participants
