Abstract: The measured mile/baseline method has been widely accepted to quantify labor productivity loss, which is demonstrated by comparing the impacted and unimpacted/lightly impacted portions of the work. Although the distinctions between these portions of a project can at times be identified through a cause and effect analysis, on many projects this distinction is not readily observable. For those projects, researchers and professionals have developed various procedures to implement the measured mile/baseline calculations, but shortcomings in those procedures can result in the failure to objectively identify the baseline. In this paper, a method based on basic statistical techniques is proposed to determine a baseline that represents the contractor’s normal operating performance, thus overcoming many of weaknesses in the existing methods. This paper will provide construction professionals and engineers with an objective approach to determine the productivity baseline, thus aiding in the resolution of labor productivity loss claims. Further, this new method avoids the arbitrary baseline sample size and the possibility of multiple competing solutions in existing methods. A numerical example is included to compare the results using different methods and demonstrate the advantages of the proposed method. DOI: 10.1061/(ASCE)CO.1943-7862.0000800. © 2013 American Society of Civil Engineers.

This article, Improved Baseline Method to Calculate Lost Construction Productivity,  by Dr. Tong Zhao, PE, M.ASCE; and J. Mark Dungan appeared in the Journal of Construction Engineering Management, 2014.140.  Download the full article in pdf format.


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Ralph Koch

RKoch thumbnailRalph Koch, CPA, is a former Big Four Audit Partner who worked with startups and Fortune 500 companies. He has 25+ years’ experience as a hands-on Chief Financial Officer in many industries, including aerospace and defense, government contracting, life sciences, software, real estate development and financial services. His experience includes contract disputes, fraud investigations, program and project cost reviews and business valuations.

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