Loss Of Productivity Construction Claims

Let’s face it, construction projects rarely go according to the perfectly laid plans in the contract. Hitches and delays are par for the course. But what if those delays translate into your project grinding to a halt, with your workers standing around twiddling their thumbs? That’s where loss of productivity claims come in.

Here at Blackstone Solicitors, we understand the frustration of watching your project stall due to factors outside your control. If you suspect your contractor’s actions (or inactions) are causing a significant drop in your crew’s output, a loss of productivity claim might be the answer.

This article dives into the world of loss of productivity claims in the construction industry, explaining what they are, the common culprits behind them, and how to build a strong case.

Free Initial Telephone Discussion

For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of loss of productivity construction claims, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

What is Loss of Productivity?

Imagine you’ve hired a crack team of builders, a symphony of hammers and saws perfectly in tune. Suddenly, the music goes off-key. Maybe materials haven’t arrived, or another contractor is hogging access to a crucial area. Your dream team is stuck waiting, their productivity plummets, and the project timeline goes out the window.

Loss of productivity refers to this exact scenario: a decrease in your workforce’s output due to disruptions caused by the contractor or issues beyond your control. These disruptions can have a significant financial impact, leading to:

• Increased labour costs: Workers are still on the clock, even if they’re not actively building. This can lead to higher payroll expenses than anticipated.
• Reduced efficiency: The flow of work gets disrupted, leading to wasted time and resources.
• Project delays: Loss of productivity often pushes back the completion date, potentially incurring additional costs.

Common Causes of Loss of Productivity

Several factors can contribute to a drop in productivity on your construction site:

• Defective plans and specifications: If the contractor is working with inaccurate or incomplete plans, it can lead to rework and delays.
• Late or unclear instructions: Confusion about what needs to be done can stall progress while clarifications are sought.
• Changes to the scope of work: Mid-project changes, even if approved, can disrupt the workflow and require adjustments to the schedule.
• Disputes with other contractors: If different contractors working on the site aren’t properly coordinated, it can lead to inefficiencies and delays for everyone.
• Site access issues: Difficulties accessing certain areas or delays in obtaining necessary permits can restrict your contractor’s ability to work efficiently.
• Material shortages: Unexpected delays in getting crucial materials can bring work to a standstill.

This isn’t an exhaustive list, but it highlights some of the most common culprits behind loss of productivity.

Building a Strong Loss of Productivity Claim

If you suspect a loss of productivity is impacting your project, here’s what you can do to build a strong claim:

• Gather Evidence: Documentation is key. This includes:

– The contract: Review the terms of your contract, particularly clauses dealing with changes, delays, and disruptions.

– Project records: Maintain meticulous records of the project schedule, resource allocation, and any disruptions encountered.

Detailed logs: Keep a daily log noting the nature and duration of any disruptions, along with their impact on the workforce.

• Quantify the Loss: Don’t just say “we’re losing money.” Put a number on it. This might involve:

– Labour cost records: Demonstrate the increased labour costs due to disruptions, such as idle time or rework.

– Production data: Compare actual productivity to what was planned to quantify the drop in output.

– Expert witness reports: For complex cases, consider engaging a construction expert to assess the disruption’s financial impact.

• Identify the Cause: Pinpoint the exact cause of the disruption and establish whether it falls under the contractor’s responsibility as per the contract.

The Legal Landscape in England and Wales

Unfortunately, there’s no magic formula for winning a loss of productivity claim. The legal framework in England and Wales relies on two main principles:

• Express contractual provisions: Many construction contracts contain clauses dealing with disruptions and loss of productivity. These clauses may outline the right to claim compensation and the process for doing so.
• Breach of contract: Even without specific disruption clauses, you might have a claim if the contractor breached their contractual obligations. This could include failing to provide timely instructions, maintain a safe working environment, or properly coordinate with other trades (leading to disruptions for your work).

The burden of proof rests on you, the client, to demonstrate that a disruption occurred, the contractor was responsible, and it resulted in quantifiable financial loss.

How we can help

We have a proven track record of helping clients deal with loss of productivity construction claims. We will guide you diligently and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of construction law services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/construction-solicitors/

How to Contact Our Construction Solicitors

It is important for you to be well informed about the issues and possible implications of a loss of productivity claim. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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