Discrete Cost Approach

With the discrete cost approach, labour costs are tracked and attributed to
specific events (using cost codes, labour codes, etc.) and then combined into a
lost productivity claim. Compared to other approaches for pricing lost labour
productivity damages, discrete methods are generally preferable, provided that
the requisite project cost data was collected on the project.
When using the discrete approach, care should be taken to segregate damages
(unanticipated or increased costs) from the normal project costs. Discrete
approaches are highly effective in pricing direct impact costs.
Measured Mile Method
The measured mile method is the preferred approach to pricing lost labour
productivity claims. This method contrasts the contractors performance during
an impacted period with the contractors performance during an un-impacted
period on the same project.
With the measured mile method, care must be taken to ensure that the condition
under which the measured work is performed is identical except for the impact
on the work that is being blamed for the lost productivity. If a reasonable unimpacted period cannot be identified in the same project (i.e., because the
project was at least partially impacted in all areas and at all times), then
the analyst/assessor may look to comparable projects to draw a comparison.
Care should also be taken to account for other factors that could be
affecting productivity such as learning curve, (e.g. Area 4), ramp up
effects, or weather.
Disruption Definition:
Disruption is loss of productivity, disturbance, hindrance or interruption to a Cont
ractors normal working
methods, resulting in lower efficiency. In the construction context, disrupted work
is

work that is carried out less efficiently than it would have been, had it not been f
or the cause of the disruption.

Delay Definition:
Causes of delay on a project include: differing site conditions; changes in
requirements or design; weather; unavailability of labor, material or equipment;
defective plans and specifications.