Substantiating façade delay costs and labour escalation

We supported a specialist façade subcontractor preparing a time and cost claim on a United States building project. The approximately US$38 million subcontract had been affected by delayed work fronts and an extended completion period. Working with a delay specialist, we prepared an extension of time and prolongation claim report supported by detailed delay analysis. The prolongation claim totalled approximately US$1.1 million and included management, supervision, storage and labour-rate escalation costs.

Background

The subcontract covered the design, supply and installation of a curtain wall system. Delays affected both the main installation and the later return work needed to complete the package.

The client required a detailed extension of time and prolongation costs claim report in order to negotiate an agreement with the contractor.

Our approach

The delay specialist’s analysis identified approximately seven months of contractor-responsible critical delay, reduced by almost two months of mitigation. The resulting net extension sought was 155 days, approximately five months. We used the relevant event windows as the framework for the cost assessment, including the periods in which time had been gained back.

Management costs were built from contemporaneously recorded project hours and the agreed rates applicable to the period in which the work was performed. Site supervision was assessed separately, using weekly records and distinguishing regular time, overtime and double time. This retained the connection between the person, the recorded hours, the relevant period and the rate.

Project expenses were arranged chronologically and allocated to delay events by date, with expense reports and receipts supporting the assessment. This included items such as travel and subsistence, kept separate from the personnel calculations.

The storage assessment followed the materials that were ready but could not be delivered and installed as planned. We reviewed logistics dates and the revised installation requirements, then calculated the storage area from crate and container dimensions.

Labour escalation required a different calculation. We distributed the planned supervision and productive labour hours across the original programme, then applied that profile to the delayed programme. The applicable rates in each month produced a baseline cost and a revised cost, with the difference representing the escalation claimed.

The report brought these calculations together with the contractual narrative, delay findings and supporting valuation workbook.

Outcome

We prepared a detailed submission seeking a 155-day extension of time and approximately US$1.1 million in additional costs. It explained how the programme changes translated into distinct financial effects and retained the supporting hours, rates, logistics information and calculations, meaning the client had a substantiated basis for presenting and discussing its claim.