The calculation of acceleration costs on construction projects

Abstract

A lack of understanding often exists between contractors, client organisations and consultants as to what may, and what may not, be included in acceleration claims on construction projects. The aim of this article is to create a better understanding of the complexity of acceleration claims. It should also lead to new insights into claim procedures and the substantiation of acceleration costs. The impacts and delays which may result in acceleration claims on a project were analysed as they form the basis for establishing liability in terms of a particular contract. Matters of principle that are applicable to acceleration claims, regardless of the form of contract recommended for use in the South African construction industry, were also examined. The findings indicate that there are significant differences on a number of aspects regarding the calculation of acceleration costs on construction projects between contractors, consultants and employers/developers. The majority of the respondents, however, were of the opinion that of the various methods used for calculating acceleration costs, the time impact analysis is most frequently applied, but that the modified total cost approach is the method most suitable on projects where there is a significant increase in the scope of work, something that occurs regularly on construction projects.