Cost of Delay Modeler Guide for Michigan

What this calculator does

Run this scenario in DocketMath using the Cost Of Delay calculator.

DocketMath’s Cost of Delay Modeler helps you estimate the dollar value of time—i.e., how much a delay might cost—by turning dates and assumptions into a simple, defensible model.

For Michigan matters, this guide uses Michigan’s general statute of limitations (SOL) as a default timing framework:

• General SOL period: 6 years
• Michigan general statute cited: **MCL § 767.24(1)
• Source: https://www.michigan.gov
• Important limitation: No claim-type-specific sub-rule was found for this guide. So the 6-year period is used as the general/default, and you should treat it as a reference point rather than a guarantee that every fact pattern follows the same timing.

What you can model with it

Typically, cost-of-delay models break into these inputs:

DocketMath then produces outputs like:

• Total cost of delay over the modeled interval
• Breakdown by component (monthly accrual vs. one-time items)
• Sensitivity cues (how changing key dates or monthly costs changes the total)

If you want to run the tool directly, use: /tools/cost-of-delay.

When to use it

Use the Cost of Delay Modeler when you need a structured way to answer questions like:

• “If resolution is delayed by 12 months, what’s the likely economic impact?”
• “How does the total cost change if the effective timeline stretches from month 24 to month 36?”
• “Can we separate recurring costs (e.g., rent, staffing, remediation) from one-time costs (e.g., expert fees, notice, replacement equipment)?”
• “Does our estimate remain consistent with Michigan’s general 6-year SOL framework under MCL § 767.24(1)?”

Practical decision points

Consider using DocketMath when at least one of these is true:

• You’re presenting a business case tied to timing (budget, settlement posture, project planning).
• You’re tracking expenses that change by the month (interest, carrying costs, extended resource allocation).
• You’re comparing multiple timeline paths (fast resolution vs. prolonged process).

Why the 6-year default matters in Michigan

Michigan’s general SOL period is 6 years under MCL § 767.24(1). In a cost-of-delay model, that timeframe can influence:

• The latest reasonable “outer bound” for timelined risk assumptions (as a reference point)
• How you set the end date when you benchmark delay scenarios

Because no claim-type-specific sub-rule was identified for this guide, treat 6 years as the general/default reference point—not as a universal answer for every fact pattern.

Gentle reminder: This content is for modeling and planning purposes, not legal advice. For issues about whether a specific claim follows a different limitations rule, consult a qualified attorney.

Step-by-step example

Below is a concrete example using DocketMath’s calculator conceptually. You can mirror these steps in the tool.

Scenario: You want to model delay within Michigan’s general timeline reference

Assume:

• Start date (impact begins): 2023-01-15
• Baseline end date (target resolution): 2026-01-15 (3 years later)
• Delay alternative end date: 2027-01-15 (4 years later)
• Recurring monthly cost: $4,000/month
• One-time cost: $10,000
• Optional probability factor: 0.8 (80% likelihood you’ll bear these costs in the modeled way)

Step 1: Set the timeline in DocketMath

In the tool (Cost of Delay Modeler), input the two date options:

1. Baseline model

   • Start: 2023-01-15
   • End: 2026-01-15

2. Delayed model

   • Start: 2023-01-15
   • End: 2027-01-15

DocketMath calculates the modeled duration (in days/months depending on the tool’s internal method).

Step 2: Enter recurring costs

Set:

• Cost stream: $4,000/month

In the baseline model, recurring cost accrues across the 3-year window. In the delayed model, it accrues across the additional year.

Step 3: Enter one-time costs

Set:

• One-time costs: $10,000

Decide whether that one-time cost occurs regardless of delay, or only if delay happens:

• If it’s independent of delay, include it in both scenarios.
• If it’s caused by delay (e.g., re-order cost after postponement), include it only in the delayed model.

For this example, assume the one-time cost occurs in both scenarios (so the only difference is time-based accrual).

Step 4: Apply the probability factor (optional)

Set:

• Likelihood multiplier: 0.8

This multiplies the total modeled cost components by 0.8.

Step 5: Compare results

You should end up with:

• Baseline cost of delay (3-year interval)
• Delayed cost of delay (4-year interval)
• Incremental cost of delay = (Delayed total) − (Baseline total)

Here’s a simplified arithmetic illustration to sanity-check the output:

• Extra time in delayed model: 12 additional months
• Extra recurring cost: 12 × $4,000 = $48,000
• With 0.8 likelihood: $48,000 × 0.8 = $38,400

So you’d expect the delayed scenario to be about $38,400 higher due to the extra year of recurring cost—assuming the one-time cost is the same in both scenarios.

If DocketMath’s output differs from this rough expectation, revisit:

• date inputs
• whether the tool rounds by exact days vs. months
• whether you applied the one-time cost consistently

Step 6: Cross-check the “outer bound” with Michigan’s SOL reference

Michigan’s general SOL is 6 years under MCL § 767.24(1) (general/default reference). If your modeled end date goes beyond 6 years from the start date, you may be estimating a timeline that conflicts with the general SOL reference used in this guide.

Use the SOL reference for benchmarking—not to force a “legal fit” where facts may differ.

Common scenarios

People typically use cost-of-delay modeling in recurring situations. Each scenario has different “cost stream” inputs and different sensitivities.

1) Settlement timing and recurring carrying costs

What changes with delay: monthly carrying costs, staffing hours, vendor rework, facility overhead.

Model inputs:

• Start date: date work begins / impact begins
• End date: expected resolution date
• Monthly accrual: estimate per month
• One-time items: expert reports, filing-related costs (if applicable to your model)

Sensitivity drivers:

• monthly cost rate
• duration between dates
• likelihood multiplier (if used)

2) Inventory/material replacement triggered by postponement

What changes with delay: one-time replacement costs plus potential monthly “hold” costs.

Model inputs:

• One-time cost included only in delayed scenario
• Monthly cost might be included in both or only while replacement is pending (depending on your assumptions)

Checklist:

• Confirm the replacement is causally tied to delay in your modeling story
• Keep the one-time component consistent with the timeline you assume

3) Cash-flow impact and financing/interest assumptions

What changes with delay: borrowing costs or foregone returns.

Model inputs:

• recurring cost stream can represent interest accrual
• you may treat some costs as “effective monthly” using a rate converted to dollars

Sensitivity drivers:

• interest rate translation into monthly dollars
• end date accuracy

4) Litigation timeline comparisons using Michigan’s general SOL reference

When people benchmark timing, they often set multiple candidate end dates that remain within the 6-year general SOL reference.

Michigan baseline used here:

• 6 years under MCL § 767.24(1) (general/default)

Common modeling moves:

• Fast resolution: 24–36 months
• Moderate: 48–60 months
• Prolonged: up to ~72 months (but be cautious when approaching/going beyond 6 years)

Tips for accuracy

Accuracy in cost-of-delay modeling is mostly about inputs discipline and date logic. Use the checklist below before you finalize numbers.

Timeline accuracy checklist

• Use actual dates (YYYY-MM-DD) you can defend internally (e.g., when impact began, not when you first thought about the issue)
• Confirm whether the end date represents:

  • an expected resolution date, or
  • a benchmark date for scenario comparison
• If you’re comparing scenarios, keep the **start date constant

Related reading

• Cost of Delay Modeler Guide for Alabama
• Cost of Delay Modeler Guide for Arizona
• Cost of Delay Modeler Guide for Colorado