In James Corporation v. North Allegheny School District, a contractor sued a school board, alleging breach of contract and seeking acceleration damages. In a matter of first impression, a Pennsylvania appellate court held that there was sufficient evidence to support a damages calculation using the “measured mile” approach, and thus, upheld a trial court’s previous award of damages using the calculation. The court noted that the law in Pennsylvania only requires that a claim for damages be supported by a reasonable basis for calculation. Under the “measured mile” analysis, the amount of damages is equal to the difference between the cost of completing work not subject to delay or acceleration with the cost of completing work during the period of impact. In order to calculate damages under this method, the work compared need not be exactly the same.
Where a contractor alleges a loss of productivity, the court noted that the measured mile approach is the preferred method of computing damages, and as such, is a reasonable method to use when calculating damages. 938 A.2d 474 (Pa. Commw. Ct. 2007).