Contractors’ Disruption & Loss of Productivity Claims
David McAndrew CPD presentation given at the Commercial Bar Association of Victoria (Construction Law Division) on 25 November 2013.
A loss of productivity claim is a claim where the Contractor alleges that the Employer is legally responsible for acts of disruption that have caused loss of productivity and increased costs that would not have otherwise been incurred. Disruption is loss of productivity, disturbance, hindrance, or interruption to progress. In the construction context, disrupted work is work that is carried out less efficiently than it would have otherwise been but for the cause of disruption. Loss of productivity is the calculated difference between the level of efficiency / productivity that would have been achieved but for the acts of disruption, and the level of productivity in fact achieved. Disruption causes a loss of productivity in a number of ways. For example, re-sequencing of work, repeated learning cycles, congestion caused by stacking of trades, increase in size of the workforce and the number and length of shifts. Download