Labor, Material Escalation & Productivity Loss
A material escalation clause shifts the risk from the supplier back to the owner. Candels can assist you with preventing many projects from entering legal battles and claims. Material escalation clauses can be “cost-based” or “index-based”
In order to recover for loss of productivity and or material escalation, there needs to be an identifiable change that affected the project. The impacting event can be caused by labor, timing, management, supply, change order delays, improper documentation or job site condition factors. However, the most common causes include work-area congestion (trade-stacking and poor scheduling), out-of-sequence work, excessive change orders due to acceleration, poor project management, lack of resources, and severe weather conditions.
Candels applies a few different acceptable methods of analyzing and quantifying the total cost of the disruption. These methods include the comparison to other projects, comparing the result to the contractor’s bid or estimate, and the use of testimony.
Candels historically utilizes the “measured mile” method which is the most reliable and widely accepted by the courts. The measured mile analysis compares the period of work activities on the construction project where efficiency was good, against the period where efficiency was bad. To calculate the impact and additional costs, there is a lot of information that needs to be provided to achieve the measured mile method and Candels has the team to assist you in your journey