New RP 135R-24: System Dynamics Modeling to Demonstrate Entitlement to Project Disruption Costs
This recommended practice (RP) of AACE International provides guidance on using system dynamics modeling (SD) to produce expert evidence to support entitlement to compensation for claims arising from disruption in construction and engineering projects. System dynamics assists in identifying and quantifying the root causes, damages, and delays resulting from project disruption.
This RP is intended to provide guidelines for a suggested process using the system dynamics modeling approach to identify the root causes, damages, responsibilities, and delays resulting from project disruption. The system dynamics process applies across all common engineering and construction contracting strategies and delivery methods, and it can be particularly useful in identifying and quantifying the cumulative impact of disruption. This recommended practice includes the concepts reviewed and approved by the cost engineering industry using good industry practices and recommendations, and it is relevant to all project stakeholders, whether owner, designer, contractor, subcontractor, construction manager, or others. Although this recommended practice is written in the context of a contract between an owner and a prime contractor, it applies to all parties contracted to perform work on a project, including subcontractors and suppliers.
Contributors:
Erich Alexander Voigt (Primary Contributor)
Dr. Stephen P. Warhoe, PE CCP CFCC FAACE Hon. Life (Primary Contributor)
Adam Clements
Dr. Sam G. Mattar
H. Lance Stephenson, CCP FAACE Hon. Life
About Alex:
Erich Alexander Voigt, is the Director & CSO at Construction Dynamics Solutions LLC. He is a leading expert in the forensic analysis of disruption and delay on complex construction, infrastructure and engineering projects, applying dynamic simulation methodologies. Alex has over 25 years of experience in dynamic simulation, having focused mainly on the assessment of disruption and delay on complex projects. He has led consulting engagements in four continents, and supported 19 major claims with a combined value of over US $9bn. Alex has taught graduate courses in system dynamics and project management, and he is a regular speaker at international conferences and events. You may reach him at alex.voigt@constructiondynamics.global.
About Steve:
Dr. Stephen P. Warhoe, PE CCP CFCC FAACE Hon. Life has over 35 years of experience in project controls, risk management, project management, construction management, and dispute resolution as a testifying expert on delay, productivity loss, cost damages, project audit, and construction and project management. His background is rooted in years of practical experience planning, controlling, and managing major designs on construction projects well over US$4 billion in value. He is a recognized expert in schedule delay analysis, productivity loss, project controls, and construction dispute avoidance and resolution. Dr. Warhoe is also a recognized construction expert on disputed projects valued well over US$6 billion and individual disputes well over US$3 billion. He also specializes in productivity loss analysis and quantification determination. Steve has modeled productivity loss, including the use of system dynamics modeling, on which he wrote his Ph.D. dissertation. As recognition for his expertise and respect in the project controls field, he was elected president of AACE International from 2008 to 2009 and was made an Honorary Life member in 2019. In addition to this RP, he was the primary author of two of AACE’s recommended practices related to the change management process and the elements necessary for practitioners to demonstrate entitlement to a change order request or claim. He has also contributed to several other recommended practices published by AACE International. He is a long-standing member of the Technical Board and, more recently, also serves on the Education Board. Steve may be contacted at spwarhoe@comcast.net.
You can find the new RP here: 135R-24: System Dynamics Modeling to Demonstrate Entitlement to Project Disruption Costs