Measured-Mile Principles

Abstract

Change is any addition, deletion, or revision to the general scope of a contract. It may cause an adjustment to the contract price or contract time of a design or construction project. Many disputes arise out of change, and successful resolution of those disputes requires that three elements be evaluated: liability, causation, and resultant injury (damages). One specific type of damage that is frequently alleged on changed projects is loss of labor productivity. One way to evaluate and quantify loss of labor productivity damages is through use of the measured-mile technique. Problems exist with the measured-mile approach, however, because the guidelines for developing and applying it are unclear. Based on a review and synthesis of project management literature and court and appeal board decisions, this paper presents guidelines for development and application of the measured-mile methodology. The intent is to help contractors, owners, consultants, and other parties step through a logical process for preparing and presenting a credible measured-mile analysis.