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(CDR-4231) Adjusted Measured Mile Baseline Methodology for Quantifying Lost Productivity Damages in Construction Claims

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Level: intermediate
TCM Section(s)
10.1. Project Performance Assessment
10.3. Change Management
Venue: 2024 AACE International Conference & Expo

Abstract: Loss of productivity (LOP) is sometimes experienced on construction projects and can result in financial damage. The measured mile/baseline method is often used to quantify LOP by comparing the impacted and the unimpacted/lightly impacted portions or periods of work.

It is not uncommon to rely on a least impacted portion or period of the work as a measured mile baseline, if an unimpacted portion is unavailable. However, such practice may result in an understatement of the LOP experienced by the impacted party, given that the least impacted portion of the work might have been impacted by events that did not occur/impact the impacted portion of the work.

This paper will discuss how to make adjustments to the least impacted portion of the work in order to establish an adjusted measured mile baseline that is more reflective of the impacted party’s productivity “but for” the non-recurring impact events suffered during the least impacted period. This paper does not address the entitlement or causation arguments in a loss of productivity claim, it only focuses on the quantification of the loss of productivity.