ABC Greater Houston Chapter - Build Houston Magazine, October/November 2021

The task of identifying and classifying the various delays to be presented in the claim can be greatly aided through proper management of the project schedule. A project team that does this can be in a much better position to timely recognize delay events and respond with the necessary actions. Such actions can include, but are not limited to, the following: • Provide proper notice of delay, as set forth in the contract. • Document the delay, through project correspondence, daily reports/logs, photographs, etc., to support and substantiate a future change order request or claim. • Assemble the relevant cost data to price the impact of the delay. When possible, it can be beneficial to begin tracking delay-related costs discreetly through new cost codes. After substantiating the delay events that are the subject of the claim, the next step would be to value the financial impact to the project. As each project is unique, specific financial impacts will vary from project to project. However, certain cost categories commonly show up in delay claims, including, but not limited to, the following: • Extended general conditions • Additional labor and/or reduced labor productivity • Home office overhead • Idle equipment • Cost escalation for material or labor • Interest Unfortunately, delays are a common occurrence on capital projects and are one of the most common sources of disputes. Because of this, having a working knowledge of the contract, understanding the various types of delays, and taking the proper actions once delay events are recognized can all play a key role in how project delays are ultimately resolved. Interface Consulting Vice President Eric Rodriguez and Project Consultant Thomas Hetzel provide construction expert services related to schedule delay analysis, change order management, construction defect analysis, and damage valuation, among other issues. To learn more, email ekrodriguez@interface- consulting.com or tmhetzel@interface-consulting.com. October/November 2021 BuildHoustonOnline.com 25

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