Delays in construction projects often cause a number of other issues. One such issue is cost prolongation. There is no doubt in the fact that the involved parties may need to invest more funds into the project, which faces the delay. Moreover, mostly the owners of the project are liable to make this investment. However, they may be wrongfully charged the prolongation cost.
Prolongation cost claims often occur when the owners of the construction project are not satisfied with the extra charges and think they have been deceived in it. The contractor and other involved parties cannot easily resolve the claim. The situation highlights the need for experts who can perform prolongation cost assessment and present a clear solution to the parties.
The claims often lead the construction parties to dispute and cause more loss to the project. Therefore, most of the construction parties acquire the services of Quantum and delay experts to ensure smooth resolution of their issues, as well as restore the reputation of the project by ensuring on-time completion.
This article will help you explore the role of experts in resolving prolongation costs in construction projects.
Top 5 Ways Experts Use to Handle Prolongation Cost Assessments
Prolongation costs mean adding more costs on the materials or services in the construction projects. This is a common type of issue which occurs in the result of delay claims. The parties may initially agree to invest more amount in covering the problems caused by delay; however, later claim for prolongation costs.
The following are some of the most important ways experts utilize to handle prolongation cost assessment in the construction projects.
1. Identify Triggering Events
The very first way experts utilize to resolve the prolongation cost claim is by identifying the triggering events. They focus their attention on the unusual events and happenings in the construction projects, which could have paved the way for prolongation costs.
After analyzing the triggering events, the experts pay attention to their magnitude and the problems caused by them. After that, they make the estimate if the cost is justified or not.
2. Identify Points of Delay
The second way experts use to handle prolongation cost assessment claims in the construction project is the identification of the points of delay. This is one of the most important ways which is most commonly used and helps in the timely and effective resolution of the issue.
By identifying the points of delay, the experts focus their attention on the progress of the project, and the loss caused, as well as the extra expense caused to resolve the issue. After that, they make the report about the justification of the prolongation cost.
3. Analyze Direct Costs
The delay in construction projects can also occur due to the unavailability of material or supplies. The involved parties may need to buy the desired material or supply at an increased cost, even after facing the delay. This also leads the parties to prolongation cost claims.
The experts utilize the strategy of the analysis of direct costs to play their role in such a situation. They ensure the fact that the costs were according to the market standards and were not above them to rule out the possibility of prolonged cost.
4. Exclude Costs of Tasks
Another important way experts use in the resolution of prolongation cost claims is to exclude the cost of tasks. It most commonly includes labor costs. The purpose of their exclusion from the project is that it may have occurred at one or the other point of project completion.
The experts ensure to exclude all the costs, which were an indefinite part of the construction project and do not include in the prolonged costs. After that, they present the report on extra costs and provide the strategies to resolve the issue.
5. Determine Overhead Costs
Overhead costs are also a common part of the construction project, irrespective of any delay. Most of the time, the parties filing the claim include the overhead costs in a prolonged amount, which is not correct.
Therefore, the experts provide due support in this regard and determine the costs of overheads. After that, they exclude the amount from the estimated prolonged cost and present a clear report if the cost is justified or not.
How to get in touch with experts?
Well, the cost prolongation assessment is a complicated issue which the involved parties cannot resolve on their own. They have to depend on the experts for the smooth resolution. You can also do the same if you are facing a similar issue.
You can acquire the services of Quantum expert witness and ensure to resolve the prolongation cost claim while considering all the industry standards. Moreover, you can also ensure to pace up the progress of the project and ensure your profit, instead of facing any loss.
So, consult the experts now for the best possible results.