Total cost as the argument
A difference between estimated and actual cost may raise questions about quantities, pricing, performance, changes and other contributing conditions.
For contractors
Requests for Equitable Adjustment
A request for equitable adjustment can bring together the reported change, its administration, and the supporting time and cost information. The content depends on the project record, contract requirements and questions presented.
Adjustment and cumulative-effect questions may involve project records, estimates, allocations, comparisons or other supported analysis. The causal explanation, contributing factors and limitations depend on the facts. The analysis does not adopt a standing preference for component or aggregate methods.
A request for equitable adjustment can address a single change or several events and their supported time and cost effects. Cumulative effects need additional analysis of how the events interacted.
Possible assignment considerations
In practice
- 01
Define the circumstances precisely
Set out what occurred and over what period, distinguishing discrete changes from the conditions they created together.
- 02
Trace causation to cost
Connect the circumstances to specific additional work, resources or lost efficiency, using records rather than the size of the overrun.
- 03
Consider cost information
Adjustment and cumulative-effect questions may involve project records, estimates, allocations, comparisons or other supported analysis. The causal explanation, contributing factors and limitations depend on the facts. The analysis does not adopt a standing preference for component or aggregate methods.
- 04
Separate the evidenced from the inferred
State plainly which parts rest on documents and which on reasonable inference, and price them accordingly.
Considerations and limitations
Questions and limitations to consider
Cumulative impact asserted
Claiming interaction between changes without showing how the work on the ground was actually affected.
Everything claimed at once
Folding well-evidenced items in with speculative ones, which drags the credible parts down with the rest.
Requests for Equitable Adjustment
Talk to a consultant
Also in this practice
Contractor Construction Administration Services
- Prepare Baseline ScheduleCPM schedule development and review in relation to the project facts and contract requirements.
- Prepare Schedule UpdatesPeriodic updates documenting progress, forecast assumptions and material revisions.
- Construction Progress MonitoringAssessment of reported progress, project information and relevant forecasts.
- Delay Analysis & Project Progress MonitoringAnalyzing delay events, their supported time effects and the contract administration record.
- Schedule Requirement SpecificationWriting the scheduling specification so it produces a usable record, not a compliance exercise.
- Prepare Time Impact Analysis (TIA)Modeling identified events in a selected schedule, with the time perspective, assumptions and limits explained.
- Prepare Extension of Time RequestsTechnical support for time requests using available schedules and project information.
- Change Order RequestsPricing and substantiating changes, including their effect on time.
- Estimating AssistanceTechnical estimating and cost analysis for bids, changes and claims.