Abstract
The current practice that uses a uniform daily overhead rate to calculate delay damages is often inaccurate and may duplicate payment of site overhead in some circumstance. This article introduces activity-specific allocation of site overhead as an analytical method for estimating its damages, which will help overcome such limitations. This new method considers timing of delay, degree of suspension, and relative importance of delayed activities that are in general ignored by the daily overhead rate method. This method assigns actual or estimated project site overhead costs to specific schedule activities. The premise is that in delay claims a contractual party may only be responsible for damages of site overhead to activities for which he/she causes critical delays. In addition, activity-specific allocation of site overhead can apply to apportionment analysis of delay damages in concurrent delays. [PUBLICATION ABSTRACT]