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Lost Productivity Must Compare Equivalent Work Damages

Wednesday, April 02, 2003 01:02 pm

 
Lost Productivity Must Compare Equivalent Work Damages

The U.S. Court of Appeals for the Federal Circuit has ruled that a contractor incorrectly calculated lost productivity when using the "measured mile"method.

The Air Force awarded a contract to P.W. Construction, Inc. (PWCI) for installation of natural gas lines and pressure stations at Vandenberg Air Force Base in California. PWCI encountered unanticipated subsurface obstructions.

PWCI claimed that the obstructions had reduced its labor productivity during installation of the pipeline. PWCI measured its lost productivity using the measured mile method. PWCI quantified its progress and productivity prior to encountering the obstructions, quantified [...]

 
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