MCAA Factors: Modified Total Cost in Disguise?



Date & Time

Start Date: 03/16/2021



Alexandra Busch will be a panelist for a presentation sponsored by Ankura and the American Bar Association.


The Modified Total Cost (MTC) approach and the MCCA Factors approach are common approaches to quantifying loss of labor productivity in construction claims and are typically treated as different and distinct.  However, the requirements for properly using MCAA Factors, as defined by MCAA, appear to be, in many respects, the same requirements the courts have established for using MTC.  Specifically, (1) no superior method (such as a “measured mile”) is possible; (2) the bid was reasonable; (3) the actual costs were reasonable; and (4) contractor-caused inefficiencies have been excluded from the analysis.  In addition, MCAA goes so far as to recommend that an MTC analysis be performed to validate the results derived using MCAA Factors.  Since research suggests that both methods have relatively low litigation success rates, are there any advantages to selecting or using an MCAA Factors approach over MTC?