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This is an ASCE Micro Learning Seminar consisting of short modules and videos for ease in consuming and learning.

INSTRUCTOR: J. Scott Lowe, P.E., M.ASCE

Course Length: 2 hours, 16 minutes

Purpose and Background

The project team is usually adept at identifying and quantifying the direct costs of a change. However, they often find the determination of the costs of delays and inefficiencies associated with some changes more challenging. The goal of this course is to provide participants with the information and skills they will need to calculate the costs associated with inefficiency and delay. These costs might include the calculation of labor and material cost escalation, the determination of field office overhead costs, or the quantification of unabsorbed home office overhead using the Eichleay Formula.

Learning Outcomes

  • We will discuss:
    • Definitions for delays
    • Specific components of the costs of delay
    • Definitions for inefficiency
  • You will learn how to:
    • Calculate idle, extended, and escalated labor costs
    • Calculate idle and extended equipment costs
    • Calculate material cost escalation and storage costs
    • Calculate field office overhead costs
    • Calculate unabsorbed home office overhead costs
    • Calculate inefficiency factors
    • Calculate the labor costs of inefficiency
    • Calculate the equipment costs of inefficiency

Assessment of Learning Outcomes

Students' achievement of the learning outcomes will be assessed via a short post-assessment (true-false, multiple choice and fill in the blank questions).

Intended Audience

Engineers, architects, construction managers, contractors, subcontractors, vendors and suppliers, and the attorneys that represent them.

Course Outline

Calculating the Costs of Delay

  • Definitions for delay
    • Critical vs. Non-critical
    • Excusable vs. Non-excusable
    • Compensable vs. Non-compensable
  • Definitions for Inefficiency
    • Productivity
    • Inefficiency
  • Labor Costs of Delay
    • Idle labor costs
    • Extended labor costs
    • Labor cost escalation
  • Equipment costs of Delay
    • Idle equipment costs
    • Extended equipment costs
  • Material costs of delay
    • Material cost escalation
    • Storage costs
  • Field office overhead calculations
    • Defining field overhead
    • Calculating a daily field overhead rate
  • Unabsorbed home office overhead calculations
    • Defining unabsorbed home office overhead
    • The law of home office overhead
    • The Eichleay Formula
    • Other home office overhead formulas

Calculating the Costs of Inefficiency

  • Determining Inefficiency factors
    • The measured mile
    • Other approaches
  • Calculating the labor costs of inefficiency
  • Calculating the equipment costs of inefficiency

How to Earn your PDHs and Receive Your Certificate of Completion

To receive your certificate of completion, you will need to complete a short on-line post-test and receive a passing score of 70% or higher within 1 year of purchasing the course.