Lost Profits Damages in Construction Claims (PDF)
September 2011 978-1-935081-92-0 PDF (62 pages)
BVR (editor)
Business Valuation Resources, LLC
The nature of economic damages in the construction industry is unique mainly due to the numerous events that can impact timing, performance or the sequence of a project. BVR’s Special Report on Lost Profits Damages in Construction Claims covers the examination of typical claim types and pricing methodologies as well as the calculation of lost profits and the appropriate methods and procedures used to determine net economic damages.
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Table of Contents
- Section 1: Construction Claims
Authored by Colin A. Johns and Greg A. McKinnon- Claim Pricing Methodologies
- Claims for Delay
- Disruption
- Acceleration
- Typical Causes of Construction Claims
- Section 2: Lost Profits Calculations—Methods and Procedures
Authored by James O’Brien and Robert P. Gray- Lost Profits - Defined
- General Issues
- Reasonable Certainty Standard
- Reasonableness of expert input and assumptions
- Causation, Burden of Proof, and Other Possible Causes of the Loss
- Limitations on the Period of Recovery
- Damages Calculation
- Sample Lost Profits Analyses
- Lost Profit Calculations in a “But-For” World
- Consideration of Mitigation