Features
Dec 22, 2022

Sensitivity Study on Loss of Productivity Quantification Methods

Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 2

Abstract

It is a difficult and challenging task to quantify lost labor productivity in construction claims, especially in the context of the Daubert standard (or Daubert challenge). The Daubert standard has influenced the presentation of expert opinions and testimony in construction cases, including disputes over loss of productivity. One of the factors be considered by triers of fact bounded by the Daubert standard in order to determine whether proffered evidence is reliable is the known or potential rate of error. Sensitivity analysis is the study of how uncertainty in the output of a method or model can be traced to sources of uncertainty in the input; sensitivity analysis can help test the robustness of results calculated using a model in the presence of uncertainty or errors. In this study, sensitivity analyses for common methods of quantifying loss of productivity are presented, and the robustness of the results produced by those methods is assessed. The impact of uncertainties in various sources of data on loss of productivity quantification is also examined. The study’s primary contribution to the overall body of knowledge is to provide insights into the robustness of various loss of productivity quantification methods, especially in the context of the Daubert challenge.

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Data Availability Statement

All data, models, and code generated or used during the study appear in the published article.

References

List of Cases

Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 US 579, 1993.
General Electric Co. v. Joiner, 522 US 126, 1997.
Kumho Tire Co., Ltd. v. Carmichael, 526 US 137, 1999.

Works Cited

AACE (Association for the Advancement of Cost Engineering). 2004. Estimating lost labor productivity in construction claims. Morgantown, WV: AACE.
AACE (Association for the Advancement of Cost Engineering). 2012. Cost estimate classification system—As applied for the building and general construction industries. Morgantown, WV: AACE.
Betts, M., and G. Ofori. 1992. “Strategic planning for competitive advantage in construction.” Construct. Manage. Econ. 10 (6): 511–532. https://doi.org/10.1080/01446199200000049.
Borgonovo, E. 2017. Sensitivity analysis: An introduction for the management scientist. Cham, Switzerland: Springer International Publishing.
Cheah, C. Y. J., M. J. Garvin, and J. B. Miller. 2004. “Empirical study of strategic performance of global construction firms.” J. Constr. Eng. Manage. 130 (6): 808–817. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:6(808).
Hanna, A. S., P. Peterson, and M. Lee. 2002. “Benchmarking productivity indicators for electrical/mechanical projects.” J. Constr. Eng. Manage. 128 (4): 331–337. https://doi.org/10.1061/(ASCE)0733-9364(2002)128:4(331).
Leonard, C. A. 1988. “The effects of change orders on productivity.” MS thesis, Dept. of Civil Engineering, Concordia Univ.
Love, P. E., L. Ika, J. Matthews, and W. Fang. 2020. “Shared leadership, value and risks in large scale transport projects: Re-calibrating procurement policy for post COVID-19.” Res. Transp. Econ. 90 (Dec): 100999. https://doi.org/10.1016/j.retrec.2020.100999.
MCAA (Mechanical Contractors Association of America). 2016. Change orders, productivity, overtime: A primer for the construction industry. Rockville, MD: MCAA.
SCL (Society of Construction Law). 2017. Delay and disruption protocol. Oxfordshire, UK: SCL.
Zhao, T., and J. M. Dungan. 2021. “Pilot investigation of underestimates: Likelihood, severity, and impact on productivity.” J. Leg. Aff. Disput. Resolut. Eng. Constr. 13 (4): 04521021. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000488.

Information & Authors

Information

Published In

Go to Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15Issue 2May 2023

History

Received: Jul 6, 2022
Accepted: Oct 24, 2022
Published online: Dec 22, 2022
Published in print: May 1, 2023
Discussion open until: May 22, 2023

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Authors

Affiliations

Tong Zhao, Ph.D., M.ASCE [email protected]
P.E.
Senior Director, Delta Consulting Group, Inc., 4330 Prince William Pkwy, Ste 301, Woodbridge, VA 22192. Email: [email protected]

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