Estimation of Labour Damage for Disruption and Prolongation Claims Using Measured Miles Analysis

Abstract

Accurate quantification of lost productivity on contractors due to disruption by the Client is one of the major headache in the field of claim analysis. Estimation of lost productivity is one of the contentious task under claim management and very challenging to attain accurate loss in productivity. There are a number of methods provided for estimation of damages caused by lost productivity, but among them Measured Miles method is known for its accuracy and preferred by courts and boards. Measured Mile method works by comparing actual productivities obtained during two different sessions at which the company was exercising its full capacity and those times where the progress of the work was impaired by the Employer. In order to show the procedure employed to conduct a Measured Miles approach to quantify a disruption and prolongation damages a case study a claim occurred at Great Ethiopian Renaissance Dam Project is carried out. Finally, the study shows how much Measured Miles approach is helpful for equitable decision-making and helped the Employer to protect himself from unnecessary expense caused by biased decision.