Construction Disputes
We provide independent quantification of economic losses arising from construction disputes, with a particular focus on project delays and disruptions. We support owners, contractors, insurers, and legal counsel in assessing the financial impact of schedule overruns, acceleration, and inefficiencies.
Our analyses are rigorous, evidence-based, and designed to withstand scrutiny in negotiation and dispute resolution.
Our construction dispute services include:
Quantification of delay and disruption damages
Extended site costs and overhead costs
Lost productivity and acceleration costs
Lost profits and financing impacts
Selected representative experience includes:
Hotel - Nine-month construction delay of a hotel in downtown Montreal resulting from pipe malfunction causing significant water damage. We were retained by the defendants to review and critique the plaintiffs' expert report. We were also asked to present our opinion of the additional costs (soft costs and hard costs) incurred and the business interruption loss resulting from the delay. An important issue was the impact of the Covid-19 pandemic on the projected profits of the hotel.
Condominium project - Construction delay of a condominium project resulting from allegedly inadequate soil study. We were retained by the defendants to critique the plaintiffs' two expert reports and quantify the direct and indirect costs as well as the alleged loss of profit resulting from the delay in sale of condo units. We identified various duplications in the damages presented by plaintiffs' experts. Contentious issues included the delay period and the issue of revenue loss given the condo real estate market at the time.
Waste management facility - Five-month construction delay of a waste management facility resulting from alleged issues with the waste processing equipment. We were retained by the manufacturers of the waste processing equipment (defendants) and asked to critique the plaintiff's expert report and present our opinion of the losses suffered (increase in processing costs). Our analysis included a detailed review of the costs incurred to outsource the treatment of waste compared to the expected costs that would have been incurred internally.
Hotel - Nineteen-month delay in the construction of a hotel in downtown Montreal resulting from structural damage which occurred during construction. We were retained by the insurer of the hotel to review the hotel's claim of remedial work. We were also asked to analyze potential lost profits resulting from the delay.
Restaurant - Six to twelve-month delay in the construction of a restaurant allegedly resulting from professional negligence of the architect. We were retained by the restaurant (the plaintiff) to prepare an expert report on the economic losses suffered as a result of the delay under different scenarios. We quantified the additional costs incurred during the delay period as well as lost profits based on adjusted post-opening results.
Recreational water park - Claim for lost profits of a recreational water park resulting from alleged construction defects of one of their attractions. The plaintiff alleged that the construction defects had an impact on the popularity of the attraction and resulted in lower-than-expected revenue growth and profit losses. We were retained by the defendants to critique the plaintiff's expert report and identify relevant information to opine on the economic losses suffered.
Condominium project - Retained by municipality to respond to an expert report opining on lost profits resulting from a delay in the construction of a condominium project. We identified various issues with the claim, including a significant duplication (claim for both differential in construction costs as well as differential in downpayment) which reduced the claim by 30%.