The method starts from total cost but removes bid errors, contractor-caused inefficiency, and unrelated overruns. The adjustments address the objections that defeat pure total cost claims.
It is more frequently accepted than the unmodified method.
Alternative Names:
Modified Total Cost|Adjusted Total Cost Approach
Why it Matters?
Making the adjustments proactively rather than in response to challenge is what distinguishes a credible claim, since a contractor that deducted its own errors before presenting the number demonstrates the analytical rigor the method otherwise lacks. Bid errors are the most important adjustment because underbidding is the first argument any owner raises. The remaining figure still requires establishing that owner conduct caused it.
Frequently Confused with
Related terms
Frequently asked questions
What distinguishes a credible modified claim?
Does the adjustment establish causation?
