By Bruce Jervis
Unabsorbed home office overhead has long been a controversial form of delay damages. The rationale is that if work on a contract is suspended, the contractor is unable to bill against that contract and the contract does not carry, or absorb, its proportionate share of the fixed home office expenses. Project owners complain that these are phantom damages used to inflate delay claims. The ongoing home office expenses would have been incurred in any event. Read more.
Last week, we introduced some of the issues field personnel must deal with in collecting and entering accurate time-card data for cost-control purposes. Today, we explore more details in the process of measuring production plus steps management and field supervisors can take to further improve accuracy. Meaningful and timely data are key to uncovering possible problems and more accurately forecasting completion cost and schedule. Read more.