Estimating cumulative damages due to disruptions in repetitive construction

Lee, J S (2016) Estimating cumulative damages due to disruptions in repetitive construction. Journal of Construction Engineering and Management, 142(11): 04016064, ISSN 0733-9364

Abstract

Disruption to continuous workflow is a major cause of cost overruns affecting many construction projects, especially for repetitive construction. The compensatory claims for damages including disruption are different from damages due to delay because of the complex characteristics of disruption per se. To estimate the cumulative damages due to disruptions, all the possible issues of damages caused by interruption of workflow should be considered. Various methods have been proposed in the literature for analyzing the impact on schedules and the damages resulting from disruptions. However, these methods have a limitation because they do not consider the ripple effect of disruptions. This paper proposes a modified method that can reasonably estimate damages caused by disruptions in construction projects, especially for repetitive construction. The proposed method includes the resource continuity and earned value analysis research methodologies to forecast the direct effect of disruptions. In addition, earned value management (EVM) is utilized to demonstrate and forecast the ripple effect of disruptions on construction activities. The original contribution of the paper is summarized as (1) application of EVM to the topic of damage calculations due to changed process sequence and (2) development of a method to assess the ripple effect as well as the direct effect of disruptions on project productivity performance.

Item Type: Article
Uncontrolled Keywords: cost and schedule; damages; disruption; earned value management; productivity loss; ripple effect
Index terms: direct effect, cost overrun, productivity, construction activity, research methodology, estimate, earned value management, damages, repetitive construction, construction project, earned value analysis, estimating, workflow
Subjects: dispute resolution, control systems, research design and methodology, financial and cost management, construction operations, production management, factor and component analysis, management, building construction
Topics: Construction Technology, Project Management, Research Practice, Cost Management, Business Strategy, Site Management, Legal Issues
Descriptive scope: 3 PCA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here