Project Timeline & Delay Cost Calculator
Estimate the total financial impact of construction or project delays, including daily overhead, penalty clauses, and lost opportunity costs.
Formulas Used
1. Direct Overhead Cost
= Daily Overhead Cost × Delay Days
2. Labor Cost During Delay
= Daily Labor Cost × Delay Days
3. Liquidated Damages
= Penalty Rate ($/day) × Delay Days
4. Opportunity Cost
= Contract Value × (Annual Opportunity Rate ÷ 365) × Delay Days
Reflects the time-value of capital tied up in a stalled project.
5. Material Escalation Cost
= Material Escalation Rate ($/day) × Delay Days
6. Total Delay Cost
= Overhead Cost + Labor Cost + Penalties + Opportunity Cost + Material Escalation
7. Delay Cost as % of Contract
= (Total Delay Cost ÷ Contract Value) × 100
Assumptions & References
- Daily overhead includes all fixed site costs: equipment rental, supervision, temporary utilities, site security, and project insurance.
- Liquidated damages (LD) rates are defined in the contract and represent pre-agreed compensation for delay — not a penalty in the legal sense (FIDIC Red Book Clause 8.7; AIA A201-2017 §3.3).
- Opportunity cost is calculated using simple interest (not compounded) over the delay period, consistent with short-term project finance analysis.
- Material escalation is treated as a linear daily rate. In practice, escalation may be non-linear and tied to commodity indices (e.g., ENR Construction Cost Index).
- Severity thresholds: <2% = Low, 2–5% = Moderate, 5–10% = High, >10% = Critical — based on industry norms for acceptable cost variance (PMI PMBOK® Guide, 7th Ed.).
- This calculator does not account for concurrent delays, force majeure events, or recoverable vs. non-recoverable delay classifications.
- Consult a construction attorney or claims consultant for formal delay cost claims or dispute resolution.