Senior Manager, Kroll, email jb.kim@kroll.com

Partner, Peter & Kim, email MinoHan@peterandkim.com

Sang-Chul Kim, Partner, Bae, Kim & Lee LLC, email sangchul.kim@bkl.co.kr

Additional site-overheads, also referred to as prolongation costs, have been traditionally quantified based on daily time-related site-overheads multiplied by the compensable delay days pursuant to the delay analysis. However, this conventional method has multiple flaws and limitations in certain situations. Hence, as an alternative, a disruption analysis (focusing on additional resources at project activity level) is suggested. This quantum analysis methodology would potentially enable the Contractor, who is nowadays required a stricter standard of proof by the courts, to better discharge its burden of proof for damages.

In a construction dispute, additional site-overheads (also known as prolongation costs or thickening costs of preliminaries) are the most common types of costs sought by a contractor from an employer. Certain events may entitle the Contractor to recover additional site-overheads, including when an employer delays the project completion, disrupts the progress of works, and/or instructs additional works. Site-overheads are not project activity-related costs, which are allocated directly to particular activities carried out on site. Site-overheads generally include staff costs and site management costs, including costs for temporary offices, facilities,