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Delays in construction projects often cause several other problems. One such issue is the extension of value. There is no doubt that the parties involved may need to invest more in a project that is facing a delay. Moreover, the project owners are mainly responsible for these investments. However, they may be mistakenly charged with extending the term. Claims for renewal often arise when the owners of a construction project are not satisfied with the additional costs and consider that they have been deceived. The contractor and other parties involved cannot easily resolve the claim. The situation underlines the need for specialists who can evaluate the costs of extending the term and present a clear decision to the parties. Claims often lead to disputes on the part of construction companies and cause even greater damage to the project. Therefore, most construction companies acquire Quantum services and retain experts to ensure a smooth solution to their problems, as well as restore the reputation of the project, ensuring timely completion. This article will help you explore the role of experts in resolving the cost of extending construction projects. Also visit here for the best construction companies in UAE.
Top 5 Ways Experts Use to Estimate Renewal Costs
Renewal costs mean adding additional costs for materials or services in construction projects. This is a common problem arising from claims with a delay. Parties may initially agree to invest more in covering the problems caused by the delay; However, later a claim for an extension of costs. Below are some of the most important ways that experts use to evaluate the cost of renewal in construction projects.
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Identify Triggering Events
The very first way that experts use to resolve claims for renewal costs is to identify triggering events. They focus on unusual events and developments in construction projects that could pave the way for renewal costs.After analyzing the initiating events, experts pay attention to their scope and the problems they cause. After that, they make an assessment if the cost is justified or not.
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Define the delay points
The second method that experts use to process claims for estimating extension costs in a construction project is to determine the delay points. This is one of the most important methods that is most often used and helps to solve the problem in a timely and effective manner. When identifying delays, experts focus on the progress of the project, as well as on the losses incurred and additional costs associated with solving the problem. After that they draw up a report on the justification of the cost of the extension.
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Analysis of Direct Costs
Delays in construction projects can also occur due to a lack of materials or materials. Interested parties may have to buy the desired material or delivery at a higher price, even after a delay. This also leads the parties to extend the claims. Experts use a direct cost analysis strategy to play a role in such a situation. They ensure that the costs were in line with market standards and did not exceed them to exclude the possibility of prolonging costs.
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Eliminate Task Costs
Another important way for experts to use when resolving extension costs is to eliminate the cost of completing tasks. Most often, this includes labor costs. The purpose of their exclusion from the project is that this could happen at one point or another at the end of the project. Experts ensure the exclusion of all costs that were an indefinite part of the construction project and did not include long-term costs. After that, they report on the additional costs and provide strategies to solve the problem.
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Define Overhead
Overhead is also a common part of a construction project, regardless of any delays. Most of the time, the parties to the claim include overhead over a long period of time, which is not the case. Therefore, experts provide due support in this regard and determine overhead costs. After that, they exclude the amount from the estimated long-term value and present a clear report if the value is justified or not.
How to contact experts?
Well, evaluating the extension of costs is a complex issue that the parties involved cannot decide on their own. They must be dependent on experts for a smooth resolution. You can also do the same if you encounter a similar problem. You can use the services of a Quantum expert witness and make sure that you are resolving your extension claim with all industry standards. In addition, you can also speed up the project and to secure their profits, instead of facing any losses.
So, consult with experts now for best results. Here we suggest for the best construction companies in UAE.
