3720 - Board of Claims

disrupted throughout the Project during its work on SR 2001 by multiple instances of active
interference on the part of PennDOT. In addition to its claim for the typical types of damages
resulting from construction delays and disruptions, Intercounty also identifies several other
discrete elements of damages resulting from this delay and disruption relating to undercutting
work, stockpiling and rehandling costs, material cost escalation, payment of a Rideability
Incentive under the Contract and claims for the payment of pre-judgment interest and attorney’s
fees. PennDOT, in turn, has raised legitimate objections to the methods used by Intercounty to
quantify these damages and to several of the additional elements of damages claimed.
Accordingly, the Board will award Intercounty damages for both delay and disruption, but will
adjust certain of these amounts to more accurately reflect the damages actually incurred by
Intercounty due to PennDOT’s acts/omissions in breach of the Contract, calculated as described
below.
Delay Damages
For the 223 days of Project delay, running from the Contract completion date of
November 6, 2002 to actual completion on June 17, 2003, Intercounty claimed a total of
$239,547.10 in additional delay costs. These additional costs include: $11,530.27 for Extended
Field Conditions; $89,731.00 for Extended Project Supervision; $22,329.83 for Additional
Maintenance and Protection of Traffic; and $115,956.00 for Materials Cost Escalation. To these
costs, Intercounty requests we then apply appropriate markups for overhead and profit per
Section 110.03(d)(4) and (7) of the 408 Specifications. 20
20 Section 110.03(d)(4) and (7) prescribe markups for Extra Work and are frequently utilized to determine
appropriate markup for additional cost claims in PennDOT contract actions. These markups are 40% for labor; 25%
for materials; 5% for equipment; and an additional 8% for subcontract work. These markups to cost are intended to
compensate the contractor, inter alia, for administration, general and project superintendence, bond costs, overhead
and profit. Pub. 408 (2000 ed.) § 110.03(d)(4) and (7).
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