[DISRUPTION CLAIMS IN

CONSTRUCTION]
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What is Disruption?
Disruption is loss of productivity, disturbance, hindrance or interruption to a
contractor’s normal working methods, resulting in lower efficiency.

Is Disruption Claimable?
If caused by the Employer, it may give rise to a right to compensation either under the
contract or as a breach of contract.
However, you should know that Disruption to construction work may lead to late
completion of the work, but not necessarily so.
In another meaning, it is possible for work to be disrupted and for the contract still to
finish by the contract completion date. In this situation, the Contractor will not have a
claim for an EOT, but may have a claim for the cost of the reduced efficiency of its
workforce.”

Causes of Disruption:
Some of the common and main causes of productivity loss:
 Changes to working methods
 Changes to working conditions and sequence
 Ex. change in sequence or priority of work making some works more
onerous to perform
 Adverse weather
 Management characteristics
 Project characteristics
Hereunder is an illustration showing example for factors affecting productivity

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 HOUSEKEEPING
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INEXPERIENCED
POOR
QC INSPECTORS
QUALITY
SUPERVISION

REGULATORY
CUMBERSOME
CHANGES
LOGISTICS OF PROCEDURES
LATE QC
TOOLS AND
OVERTIME INSPECTIONS
MATERIALS
TOOL
ACCELERATED REPAIR
WORKFORCE SCHEDULE
POOR SITE
ACCESS, LACK OBSERVATION
LACK OF SURVEY INADEQUATE
OF EATING OR AND
COMMUNICATION ALIGNMENT UNCLEAR, CONSUMABLES
TOILET MEASUREMENT
ELEVATION POORLY
FACILITIES MATERIALS,
MARKINGS MARKED TOOLS AND
WALKWAYS EQUIPMENT
LACK OF REMOTE
LARGE PROJECT RESPECT LOCATION ABSENTEEISM SQUAD
SMALL COG
TURNOVER COORDINATION
SYNDROME LATE START, POOR
OUTDATED EARLY SAFETY
PROTESTERS EQUIPMENT FINISH OVER
AT SITE, LOW MORALE CROWDING
PUBLIC NO MOTIVATION
LACK OF UNBLANCED
OPINION ACCIDENTS SQUADS
PRE-
LOW PLANNING SHIFT
TRADESMEN COORDINATION
NEGATIVE
SKILLS
LABOUR
MOBILISATION,
MOBILISATION
INFLUENCES PACING TRAVELLING RE-
MOBILISATION
LACK OF
VISABLE
WORK WAITING OR
ALCOHOL SLOW JURISDICTIONAL
, DRUGS WORK REDUCED IDLE STRIKES DISPUTES
PRODUCTIVITY
UNCLEAR CONTRACT
TECHNICAL COORDINATION
INFORMATION FATIGUE
REWORK TEMPORARY
START, STOP, INSTALLATION
INEFFECTIVE
MOVE AND
WORK RESTART
ADVERSE
WEATHER POOR QUALITY QC HOLD
WORKMANSHIP POINTS
WORK
SEQUENCING

ENGINEERING
POOR LACK OF
ERRORS, POOR
LIGHTING, ENGINEERING
DRAWINGS RESTRICTIVE
VENTILATION INFORMATION
WORK
DAMAGE SCOPE AND PRACTICES
DESIGN
JOINT LACK OF
SLOW DRAWING CHANGES
OCCUPANCY COMMUNICATION
REVISION
CUMBERSOME DISTRIBUTION CONSERVATIVE
PHASE OF
PROCEDURES DESIGN
THE
REGULATORY PROJECT
CHANGES
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Proving Disruption
It is not easy at all to prove disruptions especially without very detailed records as this
is your strongest method to prove disruption by keeping good records.
A side form keeping a good records, the contractor has to focus on the Cause by
identify and track through to the effect.
Disruption exists on the Micro level:
 It takes place within the working day;
 It may come down to lost hours or minutes within a day.

Disruption Quantification Methods

From all of the recognized approaches this paper will only touch on what has generally
become the preferred approach – ‘Measured Mile Analysis’.

Measured Mile Analysis

The measured mile approach is widely acknowledged as the most acceptable method
for calculating lost productivity costs.
The analysis compares identical tasks in impacted and non-impacted periods of the
project to estimate the productivity loss caused by the impact of a known series of
events.
The attraction of the measured mile is that it compares actual performance on site
with actual performance, not some theoretical planned performance.

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To Measure Productivity Change

Unit Productivity during Impacted Period

Productivity
Change
= Unit Productivity during Un-impacted Period

“There is no fixed calculation method. But the same principle applies, it is very much
dependent on the nature of the tasks as well as the data available”

The calculation steps could be as follow:

1. Identify Period Of Impeded Performance Note:

This example assumes
2. Calculate Performance Ratio for Impeded Period the task is completed in
the same duration as
3. Calculate Performance Ratio for Un-impeded Period planned, so there is no
delay involved.
4. Calculate difference between the Performance Ratios
5. For disruption during the Impeded Period:
Additional Cost or Resource to achieve a task due to Disruption
= ∆ Performance Ratios X Planned Value Earned during the Impeded Period

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Example:
Step 1: Identify Period of Impeded Performance

Impeded Works Period

Dec 2009 to Feb 2010

Step 2: Calculate Performance Ratio during Impeded Period

For Dec 09 to Feb 10:

Planned Man-hours
= 1825+1725+1855 = 5405

Actual Man-hours
= 2520+2150+1985 = 6655

Performance Ratio (Impeded Period)

= 6655 / 5405 = 123%
I.e. expended more than planned

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Step 3: Calculate Performance Ratio during Un-impeded Period

For Un-impeded Period:

Planned Man-hours
= 2100+2050+1980+1950+2200+2100
= 12,380

Actual Man-hours
= 1950+2000+1800+1900+1950+1925
= 11,525

Performance Ratio
= 11,525 / 12,380 = 93%
I.e. if un-impeded, Contractor’s resources could have
been this efficient.

Step 4: Calculate Differences in Performance Ratio

Performance Ratio (Impeded) = 123%
Performance Ratio (Un-impeded) = 93%
Difference in Performance Ratio = 123% - 93% = 30% (additional expended)

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Step 5: Calculate Additional Resources/Cost

Additional Incurred Man-hours
= Planned Man-hours in Impeded Period X Performance Ratio
= 5405 man-hours x 30%
= 1622 man-hours

Increased Cost
= 1622 man-hours x $70/man-hour as determined
= $113,540
Then the contractor will claim a compensable claim with $113,540

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