Construction projects are hampered by delays and disruptions, which drive up overall costs and lead to a plethora of arbitrations. The precise calculation of damage requires coordination between individuals engaged in the delay and financial professionals. A construction contract requires the contractor to provide an asset defined in quality and cost (i.e., the contractual price) within a certain amount of time. For both the employer and the contractor, the completion date is critical, as late delivery of the asset might result in a loss of profit. A prolonged construction time typically means higher expenses and lower profits.
In this case, best practice requires that contracting parties agree on the records to be kept and the means to monitor and measure construction progress from the start, i.e., within the contractual conditions. When a delay occurs, a delay analysis is performed to determine the root reason or causes of the disparity between the initial projection at contract beginning (the’as-planned’) and the actual construction timeframe (the’as-built’).
Delay analysis may be divided into two types:
’cause-and-effect analysis, in which the delay expert evaluates a risk event as a possible cause of the delay before attempting to determine the impact of this discovered event on the work schedule; and
‘Effect-and-Cause’ study, in which the delay expert first determines the crucial delay (the effect) before attempting to determine the risk events that may have caused it.
As a Delay Analyst, you’ll be in charge of giving customers sound claims advice based on a forensic review and analysis of project facts and information. Therefore, after technical analysis, the delay expert is expected to provide financial experts with a detailed report of the nature of the delays and the quantification of the impact. This information is then used to value and determine cost and damages.
Someone working in Forensic Quantum Analysis is responsible for understanding and analyzing the financial consequences of these delays. Delays can be caused by a lack of labor, a halt in project finance, harsh weather, or other factors. Furthermore, a delay might result in increased costs and the requirement for arbitration. Delay Analysts, Expert Witnesses, and Project Managers will all work closely with a Quantum Analyst.
The as-built and as-planned software comes in handy for quantum analysts. Quantum analysts can use these programs to retrace the origins of financial blunders. Similarly, making financial calculations is significantly easier for a quantum forensic analyst with the chronologically dated software progress.
After the delay expert has identified the delays, assigned technical responsibility to the employer, and quantified them in physical or temporal units. The financial expert’s job is to translate the delayed expert’s conclusions into monetary units and quantify the harm. Notably, the purpose of a monetary damages award is to return the claimant to the position they would have been in if the damaging events had not occurred.