Interface Consulting http://www.interface-consulting.com/en/rss Interface Consulting RSS Feed. Interface Consulting http://www.interface-consulting.com/tresources/en/images/icons/tendenci34x15.gif http://www.interface-consulting.com Copyright 2008 Interface Consulting Tendenci Association Software by Schipul - The Web Marketing Company en-us noemail@interface-consulting.com Sat, 17 May 2008 12:50:52 GMT Articles http://www.interface-consulting.com/en/art/?129 This article is the first in a two-part series about how Project Lead the Way, HISD’s Chavez High School, and the East End Chamber of Commerce are making a difference in students’ lives and the engineering profession. In the United States, the number of college graduates earning engineering degrees each year is rising slowly after a major decrease a decade ago. While this is good news, the number of US engineering professionals retiring in the next ten years is out-pacing the number of new graduates. How did this happen and what can we do to remedy the situation? Early engineers were not degreed, they apprenticed with skilled craftsmen instead. In the early 1800s, West Point Military Academy offered the only US engineering degrees, taught in French. At that time, most engineering degrees were earned either in France or Germany. A knowledge revolution occurred in the mid-1800s due to the second industrial revolution, and by the start of the 1900s, engineering continued to grow and... <br><br>13-May-08 5:15 PM A New Day Dawning for East End Students This article is the first in a two-part series about how Project Lead the Way, HISD’s Chavez High School, and the East End Chamber of Commerce are making a difference in students’ lives and the engineering profession. In the United States, the number of college graduates earning engineering degrees each year is rising slowly after a major decrease a decade ago. While this is good news, the number of US engineering professionals retiring in the next ten years is out-pacing the number of new graduates. How did this happen and what can we do to remedy the situation? Early engineers were not degreed, they apprenticed with skilled craftsmen instead. In the early 1800s, West Point Military Academy offered the only US engineering degrees, taught in French. At that time, most engineering degrees were earned either in France or Germany. A knowledge revolution occurred in the mid-1800s due to the second industrial revolution, and by the start of the 1900s, engineering continued to grow and... http://www.interface-consulting.com/en/art/?129 noemail@interface-consulting.com Tue, 13 May 2008 22:15:00 GMT Articles http://www.interface-consulting.com/en/art/?130 An article in Time reported the U.S., the world’s greatest technological civilization, is running short of engineers. It stated that the shortage also meant that most engineering graduates have a least a half dozen offers, with an average starting salary of $350 a month. Not a bad salary for April 21, 1952, when the article was published. It was a time when the basics were not emphasized in school and fewer students were entering science, engineering, and math careers. Scientists and educators alike tried to emphasize that this trend would result in a loss of the dominant technological status we had maintained since the industrial age. The government was also underfunding science and technology. The debate ended on the evening of October 4, 1957, when the Soviets launched Sputnik, the first artificial satellite, into orbit. Students began to pour into engineering and science programs. In response to Sputnik, President Eisenhower formed the Science Advisory Committee, the Science... <br><br>13-May-08 5:00 PM Pre-engineering Program Launches Star Students An article in Time reported the U.S., the world’s greatest technological civilization, is running short of engineers. It stated that the shortage also meant that most engineering graduates have a least a half dozen offers, with an average starting salary of $350 a month. Not a bad salary for April 21, 1952, when the article was published. It was a time when the basics were not emphasized in school and fewer students were entering science, engineering, and math careers. Scientists and educators alike tried to emphasize that this trend would result in a loss of the dominant technological status we had maintained since the industrial age. The government was also underfunding science and technology. The debate ended on the evening of October 4, 1957, when the Soviets launched Sputnik, the first artificial satellite, into orbit. Students began to pour into engineering and science programs. In response to Sputnik, President Eisenhower formed the Science Advisory Committee, the Science... http://www.interface-consulting.com/en/art/?130 noemail@interface-consulting.com Tue, 13 May 2008 22:00:00 GMT Articles http://www.interface-consulting.com/en/art/?125 Part one of this two-part series addressed change order management and claims from the contractor’s perspective. This article will focus on techniques from the owner’s perspective for planning for and managing project change and avoiding claims. Although this information is geared towards owners, the information can help all parties on a construction project. Construction is not a one-way street, and it is beneficial for each of the parties to have a more complete understanding of the other parties’ perspective. Time is money, and in today’s construction industry, almost all projects are on the fast track. The amount of time taken in the conceptual design, project development, and the detailed engineering phases has become increasingly compressed as cost and schedule concerns become more important. In recent years, innovative project delivery systems such as Design-Build have become more prevalent in an effort to maintain a timely and cost-effective project delivery while mitigating... <br><br>13-May-08 4:00 PM Failing to Plan is Planning to Fail: Tips for Owners for Successful Projects Part one of this two-part series addressed change order management and claims from the contractor’s perspective. This article will focus on techniques from the owner’s perspective for planning for and managing project change and avoiding claims. Although this information is geared towards owners, the information can help all parties on a construction project. Construction is not a one-way street, and it is beneficial for each of the parties to have a more complete understanding of the other parties’ perspective. Time is money, and in today’s construction industry, almost all projects are on the fast track. The amount of time taken in the conceptual design, project development, and the detailed engineering phases has become increasingly compressed as cost and schedule concerns become more important. In recent years, innovative project delivery systems such as Design-Build have become more prevalent in an effort to maintain a timely and cost-effective project delivery while mitigating... http://www.interface-consulting.com/en/art/?125 noemail@interface-consulting.com Tue, 13 May 2008 21:00:00 GMT Articles http://www.interface-consulting.com/en/art/?127 Colleges around the nation prepare future construction managers for promising careers Construction management-bound college graduates today are finding that, more and more, universities are responding to the challenges of an ever advancing field. Higher education programs around the nation are collaborating with industry leaders and accreditation agencies to develop specialized curriculums to prepare students for successful careers. As engineers and architects try to keep up with global competition to design the most innovative structures, demand for skilled construction managers is surging, and employers are seizing students faster than they can graduate. While construction management as a profession has existed for many years, colleges have not always offered the specialized degrees they do now. Rather, construction/building science degrees have slowly evolved over the past approximately 70 years. They are a result of a combination of factors, including the homecoming of World War... <br><br>13-May-08 4:00 PM Opportunities Abound for Construction/Building Science Grads Colleges around the nation prepare future construction managers for promising careers Construction management-bound college graduates today are finding that, more and more, universities are responding to the challenges of an ever advancing field. Higher education programs around the nation are collaborating with industry leaders and accreditation agencies to develop specialized curriculums to prepare students for successful careers. As engineers and architects try to keep up with global competition to design the most innovative structures, demand for skilled construction managers is surging, and employers are seizing students faster than they can graduate. While construction management as a profession has existed for many years, colleges have not always offered the specialized degrees they do now. Rather, construction/building science degrees have slowly evolved over the past approximately 70 years. They are a result of a combination of factors, including the homecoming of World War... http://www.interface-consulting.com/en/art/?127 noemail@interface-consulting.com Tue, 13 May 2008 21:00:00 GMT Articles http://www.interface-consulting.com/en/art/?124 Every construction project, regardless of its size, inevitably encounters change. Changes can be minor, such as field rerouting of pipe to avoid an interference, or they can be major, such as a massive acceleration effort costing millions of dollars for additional personnel and overtime premiums. Managing change is an important aspect of construction project management and successful project completion. This article is the first in a two-part series that addresses issues relevant to managing change and handling unresolved change orders from a contractor’s perspective. The second article will look at mitigating change and managing claims from an owner’s perspective. As construction claims experts, nearly every project that we encounter suffers as a result of the parties’ failures to effectively manage change. This article addresses several key factors in effective change order management that help to mitigate the impacts of changes and increase the probability that change orders will... <br><br>19-Mar-08 1:00 PM Project Change: Deal with It Every construction project, regardless of its size, inevitably encounters change. Changes can be minor, such as field rerouting of pipe to avoid an interference, or they can be major, such as a massive acceleration effort costing millions of dollars for additional personnel and overtime premiums. Managing change is an important aspect of construction project management and successful project completion. This article is the first in a two-part series that addresses issues relevant to managing change and handling unresolved change orders from a contractor’s perspective. The second article will look at mitigating change and managing claims from an owner’s perspective. As construction claims experts, nearly every project that we encounter suffers as a result of the parties’ failures to effectively manage change. This article addresses several key factors in effective change order management that help to mitigate the impacts of changes and increase the probability that change orders will... http://www.interface-consulting.com/en/art/?124 noemail@interface-consulting.com Wed, 19 Mar 2008 18:00:00 GMT Articles http://www.interface-consulting.com/en/art/?121 There is an ongoing debate as to whether or not it is advisable to use experts in mediation. In many cases that go to mediation, the issues in dispute are often relatively simple, strictly fact-based, and do not require damage calculations. In such cases, experts are often not required. This is generally not the case in the engineering and construction industry. Issues and disputes that occur during construction projects are typically not black and white issues. Using experts in these situations can prove beneficial for everyone involved in the mediation. The purpose of mediation is to find a mutually acceptable solution or compromise. Using experts with respect to these more difficult issues can help the client enter the mediation from a position of strength based on a thorough technical analysis. It is also important to remember that this may be the first time the opposing side’s senior management has seen or heard an unfiltered view of the positions. Experts should be used to... <br><br>29-Feb-08 11:00 AM Effective Use of Experts in Mediation There is an ongoing debate as to whether or not it is advisable to use experts in mediation. In many cases that go to mediation, the issues in dispute are often relatively simple, strictly fact-based, and do not require damage calculations. In such cases, experts are often not required. This is generally not the case in the engineering and construction industry. Issues and disputes that occur during construction projects are typically not black and white issues. Using experts in these situations can prove beneficial for everyone involved in the mediation. The purpose of mediation is to find a mutually acceptable solution or compromise. Using experts with respect to these more difficult issues can help the client enter the mediation from a position of strength based on a thorough technical analysis. It is also important to remember that this may be the first time the opposing side’s senior management has seen or heard an unfiltered view of the positions. Experts should be used to... http://www.interface-consulting.com/en/art/?121 noemail@interface-consulting.com Fri, 29 Feb 2008 17:00:00 GMT Articles http://www.interface-consulting.com/en/art/?63 In general terms, force majeure is considered to be an act of God or an occurrence outside the control of the parties which impacts or delays the project. Force majeure includes issues such as unusually severe weather, labor strikes, natural disasters, or governmental actions/changes in law that negatively impact the work. Typically, force majeure is not considered to be a compensable delay, meaning neither party is entitled to compensation as a result of the impact of the force majeure event. The recent Gulf Coast hurricanes have raised some interesting and complex issues associated with defining force majeure. Typically, force majeure contract clauses include language that defines the force majeure event, including notice requirements and the terms of the schedule extension. Events such as unusually severe weather or a labor strike have clear start and end dates. It gets more complicated when there is a major event that not only directly impacts the work but also creates potentially... <br><br>2-Aug-07 10:00 AM Interpreting Force Majeure in the Wake of Disaster In general terms, force majeure is considered to be an act of God or an occurrence outside the control of the parties which impacts or delays the project. Force majeure includes issues such as unusually severe weather, labor strikes, natural disasters, or governmental actions/changes in law that negatively impact the work. Typically, force majeure is not considered to be a compensable delay, meaning neither party is entitled to compensation as a result of the impact of the force majeure event. The recent Gulf Coast hurricanes have raised some interesting and complex issues associated with defining force majeure. Typically, force majeure contract clauses include language that defines the force majeure event, including notice requirements and the terms of the schedule extension. Events such as unusually severe weather or a labor strike have clear start and end dates. It gets more complicated when there is a major event that not only directly impacts the work but also creates potentially... http://www.interface-consulting.com/en/art/?63 noemail@interface-consulting.com Thu, 02 Aug 2007 15:00:00 GMT Articles http://www.interface-consulting.com/en/art/?64 In the construction industry, the ability to manage change can determine the success or failure of a project’s objectives. The failure to recognize and promptly manage change frequently costs the parties involved money and time. Establishing a change order management process using either contractual change order requirements or a firm’s proprietary system increases the effectiveness of progress reporting, labor productivity evaluation, work scheduling, and other elements of project change. The following steps provide a streamlined approach to resolving project changes in a more cost and time efficient manner: 1. Evaluate the contract 2. Identify the change properly and in a timely manner 3. Provide timely notification to internal and external parties 4. Effectively document the change 5. Prepare the change request 6. Resolve the change request Implementing these steps at the first sign of a change can help the parties to spend less money and exert less effort to recover or... <br><br>2-Aug-07 10:00 AM Time Equals Money: Maximize Efforts to Resolve Project Changes In the construction industry, the ability to manage change can determine the success or failure of a project’s objectives. The failure to recognize and promptly manage change frequently costs the parties involved money and time. Establishing a change order management process using either contractual change order requirements or a firm’s proprietary system increases the effectiveness of progress reporting, labor productivity evaluation, work scheduling, and other elements of project change. The following steps provide a streamlined approach to resolving project changes in a more cost and time efficient manner: 1. Evaluate the contract 2. Identify the change properly and in a timely manner 3. Provide timely notification to internal and external parties 4. Effectively document the change 5. Prepare the change request 6. Resolve the change request Implementing these steps at the first sign of a change can help the parties to spend less money and exert less effort to recover or... http://www.interface-consulting.com/en/art/?64 noemail@interface-consulting.com Thu, 02 Aug 2007 15:00:00 GMT Articles http://www.interface-consulting.com/en/art/?24 Introduction This year, exceptionally high construction material price increases have caused problems for the construction industry. A major factor is the current economic and construction boom occurring in China. China&#8217;s rapid growth and tremendous construction activity are creating shortages in the US and throughout the world. Background Basic economics dictate that, in an open marketplace, prices will rise when demand increases or when supply decreases. Demand is increasing exponentially in China, which is affecting prices worldwide. The increased demand stems from a construction boom resulting from the country&#8217;s economic revolution. China is in the midst of the 10th phase of its 50 year plan, which specifies that the construction industry should be promoted, improved, and better managed. Other factors increasing China&#8217;s demand for materials include preparations for the 2008 Olympic Games, construction of the Three Gorges Dam, and the construction of... <br><br>30-Jul-07 11:45 AM Construction Industry Suffers from Increasing Material Prices Introduction This year, exceptionally high construction material price increases have caused problems for the construction industry. A major factor is the current economic and construction boom occurring in China. China&#8217;s rapid growth and tremendous construction activity are creating shortages in the US and throughout the world. Background Basic economics dictate that, in an open marketplace, prices will rise when demand increases or when supply decreases. Demand is increasing exponentially in China, which is affecting prices worldwide. The increased demand stems from a construction boom resulting from the country&#8217;s economic revolution. China is in the midst of the 10th phase of its 50 year plan, which specifies that the construction industry should be promoted, improved, and better managed. Other factors increasing China&#8217;s demand for materials include preparations for the 2008 Olympic Games, construction of the Three Gorges Dam, and the construction of... http://www.interface-consulting.com/en/art/?24 noemail@interface-consulting.com Mon, 30 Jul 2007 16:45:00 GMT Articles http://www.interface-consulting.com/en/art/?8 Contractors frequently experience site conditions differing from those anticipated in their bids. An example would be existing facilities, which are to form part of the contract work, that differ in their location, makeup, or state of repair from information in the bid documents or from what would be apparent to a contractor making a responsible, prebid inspection. If the differing site conditions should have been discovered or anticipated by the contractor and the contractor failed to do so, the chances of receiving additional compensation through a change order are very low. However, if the condition differs from what was indicated in the plans and specifications or what was apparent from inspections, the likelihood of receiving additional compensation for changes in the work can be quite high. Differing site conditions (also known as changed conditions) are frequent sources of dispute between owners and contractors. Many contractors proceed with work under changed conditions... <br><br>30-Jul-07 11:15 AM Risks of Differing Site Conditions Contractors frequently experience site conditions differing from those anticipated in their bids. An example would be existing facilities, which are to form part of the contract work, that differ in their location, makeup, or state of repair from information in the bid documents or from what would be apparent to a contractor making a responsible, prebid inspection. If the differing site conditions should have been discovered or anticipated by the contractor and the contractor failed to do so, the chances of receiving additional compensation through a change order are very low. However, if the condition differs from what was indicated in the plans and specifications or what was apparent from inspections, the likelihood of receiving additional compensation for changes in the work can be quite high. Differing site conditions (also known as changed conditions) are frequent sources of dispute between owners and contractors. Many contractors proceed with work under changed conditions... http://www.interface-consulting.com/en/art/?8 noemail@interface-consulting.com Mon, 30 Jul 2007 16:15:00 GMT Articles http://www.interface-consulting.com/en/art/?9 Most would agree that the earlier a construction dispute, or potential dispute, is addressed, the better the chances of a fair and prompt solution. Undisputed facts may be available at the time of occurrence, facts that often become muddied with time and emotions. But acting promptly is not enough in itself. All potential disputes must be accurately and fully documented as they occur - not reconstructed with hindsight based solely on project cost overruns. By observing the following simple guidelines, it is possible to keep most construction difficulties from escalating into expensive, drawn-out claims. 1. Planning: An effective project manager should ideally spend more time anticipating potential trouble areas to be avoided, rather than rectifying problems that have already occurred. 2. Recognition: Recognizing a potential dispute situation as it unfolds is the key to avoiding claims or minimizing their impact. Knowledge of the different types of claims enables a contractor... <br><br>30-Jul-07 11:00 AM Ten Steps to Dispute Avoidance Most would agree that the earlier a construction dispute, or potential dispute, is addressed, the better the chances of a fair and prompt solution. Undisputed facts may be available at the time of occurrence, facts that often become muddied with time and emotions. But acting promptly is not enough in itself. All potential disputes must be accurately and fully documented as they occur - not reconstructed with hindsight based solely on project cost overruns. By observing the following simple guidelines, it is possible to keep most construction difficulties from escalating into expensive, drawn-out claims. 1. Planning: An effective project manager should ideally spend more time anticipating potential trouble areas to be avoided, rather than rectifying problems that have already occurred. 2. Recognition: Recognizing a potential dispute situation as it unfolds is the key to avoiding claims or minimizing their impact. Knowledge of the different types of claims enables a contractor... http://www.interface-consulting.com/en/art/?9 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?10 Chapter One: Introduction There are certain assumptions that both the contractor and the owner possess when entering into a construction contract. These assumptions do not necessarily coincide with one another. The contractor should assume that the scope of work is sufficiently defined, the plans and specifications are complete and accurate, and the owner has fulfilled any requirements necessary to proceed with construction. The Owner, on the other hand, assumes the contractor is qualified to complete the work accurately and on schedule, and the price proposed is the total amount the owner will have to pay for the project. When these assumptions are not fulfilled, a claim usually ensues. Many different approaches exist to administer a construction contract from the position of the owner or the contractor. There are simple ways that will get the job done and there are complicated ways to get the paperwork done. Neither of these ways will necessarily produce a successful project.... <br><br>30-Jul-07 11:00 AM The &quot;Rules of Engagement&quot; and Construction Claims: Towards a Smooth Construction Contract Execution and Responsible Claims Process Chapter One: Introduction There are certain assumptions that both the contractor and the owner possess when entering into a construction contract. These assumptions do not necessarily coincide with one another. The contractor should assume that the scope of work is sufficiently defined, the plans and specifications are complete and accurate, and the owner has fulfilled any requirements necessary to proceed with construction. The Owner, on the other hand, assumes the contractor is qualified to complete the work accurately and on schedule, and the price proposed is the total amount the owner will have to pay for the project. When these assumptions are not fulfilled, a claim usually ensues. Many different approaches exist to administer a construction contract from the position of the owner or the contractor. There are simple ways that will get the job done and there are complicated ways to get the paperwork done. Neither of these ways will necessarily produce a successful project.... http://www.interface-consulting.com/en/art/?10 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?16 If negotiations are stalled and litigation appears to be the only solution, follow these steps: <br><br><b>Re-evaluation</b><br><br>Re-evaluate your claim to determine if your demand is realistic. Research and prepare any new facts, explanations, or support. Advise opposition parties of new figures, facts, or other relevant information, and request further discussions based on the new information. <br><br><b>New Claim Review</b><br><br>Ask for a new claim evaluation by an unbiased claim administrator or review team. Be specific about why you want a change. Emphasize your intent to negotiate in good faith. <br><br><b>Meeting</b><br><br>Request a senior management meeting between the two parties in dispute. Have senior management meet to exchange viewpoints and to ascertain if any measures could or should be taken in order to settle the dispute without litigation. Senior management should be thoroughly briefed about the issues under discussion, the amounts claimed or counterclaimed, and the potential costs and chances for success during litigation. <br><br><b>Mediator</b><br><br>Have a mediator/third party meet with both sides to foster an objective approach to the conflict. The mediator will endeavor to learn the real issues, the impacts, and the objectives of the parties. Attempt to facilitate communication in an effort to reach an amicable settlement. <br><br><b>Prepare Support</b><br><br>If you must proceed to litigation, do so with a case that is accurate and can be supported. Be sure that you follow any special requirements of your contract, such as written notices within certain deadlines, arbitration requirements, and other contractual guidelines. If you proceed to litigation with a claim that should be settled or addressed under a different venue, or without contractually required notices, your proceeding could be stalled, circumvented, or defeated before the issues are given any appropriate consideration. <br><br><br>Disclaimer: This article is intended to be a source of general information on a specific construction-related topic. Its content should not be construed as legal advice. If you are seeking legal advice, please consult with professional legal counsel. For assistance in assessing a specific construction-related problem, please contact Interface Consulting directly. <br><br>30-Jul-07 11:00 AM Claim Settlement Negotiations If negotiations are stalled and litigation appears to be the only solution, follow these steps: <br><br><b>Re-evaluation</b><br><br>Re-evaluate your claim to determine if your demand is realistic. Research and prepare any new facts, explanations, or support. Advise opposition parties of new figures, facts, or other relevant information, and request further discussions based on the new information. <br><br><b>New Claim Review</b><br><br>Ask for a new claim evaluation by an unbiased claim administrator or review team. Be specific about why you want a change. Emphasize your intent to negotiate in good faith. <br><br><b>Meeting</b><br><br>Request a senior management meeting between the two parties in dispute. Have senior management meet to exchange viewpoints and to ascertain if any measures could or should be taken in order to settle the dispute without litigation. Senior management should be thoroughly briefed about the issues under discussion, the amounts claimed or counterclaimed, and the potential costs and chances for success during litigation. <br><br><b>Mediator</b><br><br>Have a mediator/third party meet with both sides to foster an objective approach to the conflict. The mediator will endeavor to learn the real issues, the impacts, and the objectives of the parties. Attempt to facilitate communication in an effort to reach an amicable settlement. <br><br><b>Prepare Support</b><br><br>If you must proceed to litigation, do so with a case that is accurate and can be supported. Be sure that you follow any special requirements of your contract, such as written notices within certain deadlines, arbitration requirements, and other contractual guidelines. If you proceed to litigation with a claim that should be settled or addressed under a different venue, or without contractually required notices, your proceeding could be stalled, circumvented, or defeated before the issues are given any appropriate consideration. <br><br><br>Disclaimer: This article is intended to be a source of general information on a specific construction-related topic. Its content should not be construed as legal advice. If you are seeking legal advice, please consult with professional legal counsel. For assistance in assessing a specific construction-related problem, please contact Interface Consulting directly. http://www.interface-consulting.com/en/art/?16 Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?17 If negotiations are stalled and litigation appears to be the only solution, follow these steps: <br><br><b>Re-evaluation</b><br><br>Re-evaluate your claim to determine if your demand is realistic. Research and prepare any new facts, explanations, or support. Advise opposition parties of new figures, facts, or other relevant information, and request further discussions based on the new information. <br><br><b>New Claim Review</b><br><br>Ask for a new claim evaluation by an unbiased claim administrator or review team. Be specific about why you want a change. Emphasize your intent to negotiate in good faith. <br><br><b>Meeting</b><br><br>Request a senior management meeting between the two parties in dispute. Have senior management meet to exchange viewpoints and to ascertain if any measures could or should be taken in order to settle the dispute without litigation. Senior management should be thoroughly briefed about the issues under discussion, the amounts claimed or counterclaimed, and the potential costs and chances for success during litigation. <br><br><b>Mediator</b><br><br>Have a mediator/third party meet with both sides to foster an objective approach to the conflict. The mediator will endeavor to learn the real issues, the impacts, and the objectives of the parties. Attempt to facilitate communication in an effort to reach an amicable settlement. <br><br><b>Prepare Support</b><br><br>If you must proceed to litigation, do so with a case that is accurate and can be supported. Be sure that you follow any special requirements of your contract, such as written notices within certain deadlines, arbitration requirements, and other contractual guidelines. If you proceed to litigation with a claim that should be settled or addressed under a different venue, or without contractually required notices, your proceeding could be stalled, circumvented, or defeated before the issues are given any appropriate consideration. <br><br><br>Disclaimer: This article is intended to be a source of general information on a specific construction-related topic. Its content should not be construed as legal advice. If you are seeking legal advice, please consult with professional legal counsel. For assistance in assessing a specific construction-related problem, please contact Interface Consulting directly. <br><br>30-Jul-07 11:00 AM Claim Settlement Methods If negotiations are stalled and litigation appears to be the only solution, follow these steps: <br><br><b>Re-evaluation</b><br><br>Re-evaluate your claim to determine if your demand is realistic. Research and prepare any new facts, explanations, or support. Advise opposition parties of new figures, facts, or other relevant information, and request further discussions based on the new information. <br><br><b>New Claim Review</b><br><br>Ask for a new claim evaluation by an unbiased claim administrator or review team. Be specific about why you want a change. Emphasize your intent to negotiate in good faith. <br><br><b>Meeting</b><br><br>Request a senior management meeting between the two parties in dispute. Have senior management meet to exchange viewpoints and to ascertain if any measures could or should be taken in order to settle the dispute without litigation. Senior management should be thoroughly briefed about the issues under discussion, the amounts claimed or counterclaimed, and the potential costs and chances for success during litigation. <br><br><b>Mediator</b><br><br>Have a mediator/third party meet with both sides to foster an objective approach to the conflict. The mediator will endeavor to learn the real issues, the impacts, and the objectives of the parties. Attempt to facilitate communication in an effort to reach an amicable settlement. <br><br><b>Prepare Support</b><br><br>If you must proceed to litigation, do so with a case that is accurate and can be supported. Be sure that you follow any special requirements of your contract, such as written notices within certain deadlines, arbitration requirements, and other contractual guidelines. If you proceed to litigation with a claim that should be settled or addressed under a different venue, or without contractually required notices, your proceeding could be stalled, circumvented, or defeated before the issues are given any appropriate consideration. <br><br><br>Disclaimer: This article is intended to be a source of general information on a specific construction-related topic. Its content should not be construed as legal advice. If you are seeking legal advice, please consult with professional legal counsel. For assistance in assessing a specific construction-related problem, please contact Interface Consulting directly. http://www.interface-consulting.com/en/art/?17 Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?18 Communicating Effectively Few things are as important as the ability to communicate effectively, particularly in construction claim negotiations and litigation. Disputes in the construction arena often involve technical information and damages, especially if indirect damages are incurred, such as productivity losses or delay costs. The party who incurred the damages needs to be able to communicate to the other side why the damages were incurred and the impact certain events had on project costs. Audiences retain visual representations of data with greater accuracy and for a longer period than they do the written or spoken equivalents of the same information. Visual aids, such as graphs, timelines, and tables, are effective with audiences unfamiliar with the project details, who may include upper management, mediators, arbitrators, or jurors. The visual aid needs to bridge the gap between the technical information and basic damage outcome. The outcome of the negotiation or litigation... <br><br>30-Jul-07 11:00 AM When Profits Are at Stake - Increase Your Ability to Persuade Communicating Effectively Few things are as important as the ability to communicate effectively, particularly in construction claim negotiations and litigation. Disputes in the construction arena often involve technical information and damages, especially if indirect damages are incurred, such as productivity losses or delay costs. The party who incurred the damages needs to be able to communicate to the other side why the damages were incurred and the impact certain events had on project costs. Audiences retain visual representations of data with greater accuracy and for a longer period than they do the written or spoken equivalents of the same information. Visual aids, such as graphs, timelines, and tables, are effective with audiences unfamiliar with the project details, who may include upper management, mediators, arbitrators, or jurors. The visual aid needs to bridge the gap between the technical information and basic damage outcome. The outcome of the negotiation or litigation... http://www.interface-consulting.com/en/art/?18 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?19 Ill see you in court! Those volatile words are not uncommon when conflicts arise on a construction project. But nobody really wants to be in court. There is an alternative - mediation. Construction projects require contractual interdependence between many parties and frequently the complexity and nature of those relationships lead to conflict. Construction disputes are usually intricate and when they are not resolved, they commonly escalate to legal action involving arbitration or litigation. By the mid-1980s, it was becoming apparent to many that litigation costs were growing exponentially, and that many disputes that reached the legal arena could have been resolved earlier had the parties communicated their issues to each other clearly in a less combative setting. As with many trends, a few pioneers noted the phenomenon and developed an alternative approach to resolving a dispute-one that could be used with or without the follow-up of litigation. This alternative approach is... <br><br>30-Jul-07 11:00 AM Mediation - A Process of Assisted Negotiation Ill see you in court! Those volatile words are not uncommon when conflicts arise on a construction project. But nobody really wants to be in court. There is an alternative - mediation. Construction projects require contractual interdependence between many parties and frequently the complexity and nature of those relationships lead to conflict. Construction disputes are usually intricate and when they are not resolved, they commonly escalate to legal action involving arbitration or litigation. By the mid-1980s, it was becoming apparent to many that litigation costs were growing exponentially, and that many disputes that reached the legal arena could have been resolved earlier had the parties communicated their issues to each other clearly in a less combative setting. As with many trends, a few pioneers noted the phenomenon and developed an alternative approach to resolving a dispute-one that could be used with or without the follow-up of litigation. This alternative approach is... http://www.interface-consulting.com/en/art/?19 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?20 Negotiation is a process for satisfying needs. People negotiate daily in various situations. Individuals negotiate with others for everything from the cost of a car to the choice of restaurant for dinner. Negotiation is a form of cooperation and leads to compromises acceptable to both sides, bringing business projects to fruition. Many individuals become particularly skilled in negotiation through their life experiences. Others study the traits and techniques of successful negotiators. A select few become expert negotiators in the construction industry. The Qualities of a Professional Negotiator Awareness: Probably the single most important trait of a skilled negotiator is awareness. Negotiators must not only be perceptive of others, they must also be knowledgeable about themselves and the details of the issues under consideration. Negotiators must be able to understand others reactions and quickly respond in a positive and productive manner. Awareness of the objectives and... <br><br>30-Jul-07 11:00 AM Negotiation: Working It Out Negotiation is a process for satisfying needs. People negotiate daily in various situations. Individuals negotiate with others for everything from the cost of a car to the choice of restaurant for dinner. Negotiation is a form of cooperation and leads to compromises acceptable to both sides, bringing business projects to fruition. Many individuals become particularly skilled in negotiation through their life experiences. Others study the traits and techniques of successful negotiators. A select few become expert negotiators in the construction industry. The Qualities of a Professional Negotiator Awareness: Probably the single most important trait of a skilled negotiator is awareness. Negotiators must not only be perceptive of others, they must also be knowledgeable about themselves and the details of the issues under consideration. Negotiators must be able to understand others reactions and quickly respond in a positive and productive manner. Awareness of the objectives and... http://www.interface-consulting.com/en/art/?20 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?21 Objective Is Prompt Resolution of Change Orders A claim is an unresolved change order. Fortunately, a change order upon which all parties agree does not become a claim. Change orders that are resolved fairly and quickly benefit both the owner and the contractor by avoiding costly and time-consuming dispute resolution processes such as mediation, arbitration, and/or litigation. Prompt resolution of change orders is essential as this would typically minimize the total project cost to an owner, as well as minimize project delays and disruptions. Change is a normal part of the construction process and typically increases project costs and delays completion. Frequently, contractors submit change orders and owners readily pay for the changes they desire. Other times, however, due to budgetary or other constraints, while the change can be made, additional compensation or more time to complete the work cannot be allowed. In these cases, creative solutions to change orders may allow the... <br><br>30-Jul-07 11:00 AM An Ounce of Prevention: Creative Solutions for Change Orders May Avoid Costly Litigation Objective Is Prompt Resolution of Change Orders A claim is an unresolved change order. Fortunately, a change order upon which all parties agree does not become a claim. Change orders that are resolved fairly and quickly benefit both the owner and the contractor by avoiding costly and time-consuming dispute resolution processes such as mediation, arbitration, and/or litigation. Prompt resolution of change orders is essential as this would typically minimize the total project cost to an owner, as well as minimize project delays and disruptions. Change is a normal part of the construction process and typically increases project costs and delays completion. Frequently, contractors submit change orders and owners readily pay for the changes they desire. Other times, however, due to budgetary or other constraints, while the change can be made, additional compensation or more time to complete the work cannot be allowed. In these cases, creative solutions to change orders may allow the... http://www.interface-consulting.com/en/art/?21 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?22 A claim is an unresolved change order. Conversely, a change order that is agreed upon and processed does not become a claim. Change order situations that are resolved knowledgeably, fairly, and promptly will benefit both the owner and the contractor. Federal government studies have shown that early settlement of change order problems minimizes cost to owners. Likewise, contractors benefit by avoiding disruption to their project schedule and cash flow. Know and Use the Contract In a change order situation, the contractors rights arise from the contract. A contractors request must be consistent with the contract, or it will likely be denied. Courts can circumvent or overturn contract language, exculpatory clauses in particular, but such cases are the exception rather than the rule. Successful management of change orders is based upon knowledge of the contract. Project representatives of the owner, contractor, sub-contractor, and construction managers must be familiar with the... <br><br>30-Jul-07 11:00 AM Change Order Management A claim is an unresolved change order. Conversely, a change order that is agreed upon and processed does not become a claim. Change order situations that are resolved knowledgeably, fairly, and promptly will benefit both the owner and the contractor. Federal government studies have shown that early settlement of change order problems minimizes cost to owners. Likewise, contractors benefit by avoiding disruption to their project schedule and cash flow. Know and Use the Contract In a change order situation, the contractors rights arise from the contract. A contractors request must be consistent with the contract, or it will likely be denied. Courts can circumvent or overturn contract language, exculpatory clauses in particular, but such cases are the exception rather than the rule. Successful management of change orders is based upon knowledge of the contract. Project representatives of the owner, contractor, sub-contractor, and construction managers must be familiar with the... http://www.interface-consulting.com/en/art/?22 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?23 Contracts, which are intended to eliminate problems, can be the open doorway to disputes and claims. Contracts that are one-sided promote dispute resolution through litigation. Bias in contract language and interpretation leads to increased costs for all parties. The following article suggests ways in which owners and contractors can work toward equitable contracting. Disruptions or Disputes Are Expensive to Both Owners and Contractors Construction contracts are drafted to allocate responsibilities, risks, and remedies between the separate parties. This allocation is based upon the simple fact that someone must be responsible and someone must pay for all elements of the project under that contract. In theory, when changes or unforeseen difficulties arise on a construction project, the allocation of risks established by the construction contract will clearly identify the party who is to pay. Thus, in the case of an owners directive to add to the scope of work, most contracts... <br><br>30-Jul-07 11:00 AM Contracts Must Be Reasonable Contracts, which are intended to eliminate problems, can be the open doorway to disputes and claims. Contracts that are one-sided promote dispute resolution through litigation. Bias in contract language and interpretation leads to increased costs for all parties. The following article suggests ways in which owners and contractors can work toward equitable contracting. Disruptions or Disputes Are Expensive to Both Owners and Contractors Construction contracts are drafted to allocate responsibilities, risks, and remedies between the separate parties. This allocation is based upon the simple fact that someone must be responsible and someone must pay for all elements of the project under that contract. In theory, when changes or unforeseen difficulties arise on a construction project, the allocation of risks established by the construction contract will clearly identify the party who is to pay. Thus, in the case of an owners directive to add to the scope of work, most contracts... http://www.interface-consulting.com/en/art/?23 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?25 The Risks vs. The Benefits Before agreeing to furnish materials for a construction project, owners must evaluate related risks and benefits to factor these into procurement decisions made during the sensitive preparation phase. Unfortunately, while the immediate monetary benefits of using owner-furnished items are easily ascertained, the risks are difficult to quantify. Owners often take on considerable liability in return for small, immediate gains. In effect, owners take on responsibility for timeliness and quality, over which they may have little control. They then can become mired in contract change orders, claims, or even litigation when their plans go astray. Frequently, the additional costs incurred by the contractor and the owner far exceed the potential gain envisioned by the owner through the seemingly helpful and economical act of furnishing contract items. The owners decision to furnish items that could be procured by the contractor is usually based on one of the... <br><br>30-Jul-07 11:00 AM Dangers of Owner - Supplied Equipment and Materials The Risks vs. The Benefits Before agreeing to furnish materials for a construction project, owners must evaluate related risks and benefits to factor these into procurement decisions made during the sensitive preparation phase. Unfortunately, while the immediate monetary benefits of using owner-furnished items are easily ascertained, the risks are difficult to quantify. Owners often take on considerable liability in return for small, immediate gains. In effect, owners take on responsibility for timeliness and quality, over which they may have little control. They then can become mired in contract change orders, claims, or even litigation when their plans go astray. Frequently, the additional costs incurred by the contractor and the owner far exceed the potential gain envisioned by the owner through the seemingly helpful and economical act of furnishing contract items. The owners decision to furnish items that could be procured by the contractor is usually based on one of the... http://www.interface-consulting.com/en/art/?25 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?26 I. Introduction As experts in construction claims, Interface Consulting evaluates and analyzes a wide array of engineering and construction related disputes. Many of these disputes center around increased costs, project delays, and productivity impacts. This paper discusses the most common problems and claims related to design documents based on our experience dealing with hundreds of projects and thousands of claim issues. Awareness of the most common engineering document-related problems is the first step in planning and preventing these potential issues. As consultants and experts, we are often in the position to review and analyze the project records, (i.e., bids, budgets, contracts, schedules, correspondence, meeting minutes, progress reports, and cost information). These documents tell the story of the project and provide information about the root cause of the disputes, (i.e., delays and cost overruns, the responsibility for these problems, the extent of the impact on the... <br><br>30-Jul-07 11:00 AM Design Documents and Design - Related Claims I. Introduction As experts in construction claims, Interface Consulting evaluates and analyzes a wide array of engineering and construction related disputes. Many of these disputes center around increased costs, project delays, and productivity impacts. This paper discusses the most common problems and claims related to design documents based on our experience dealing with hundreds of projects and thousands of claim issues. Awareness of the most common engineering document-related problems is the first step in planning and preventing these potential issues. As consultants and experts, we are often in the position to review and analyze the project records, (i.e., bids, budgets, contracts, schedules, correspondence, meeting minutes, progress reports, and cost information). These documents tell the story of the project and provide information about the root cause of the disputes, (i.e., delays and cost overruns, the responsibility for these problems, the extent of the impact on the... http://www.interface-consulting.com/en/art/?26 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?27 Documentation is a vital function of construction management. If your profitability depends upon the collection of extras or the defense of claims made against you, and you have no records, the worlds best consultants and lawyers will be unable to create them for you. And if you do have the records, but your documentations organization and quality are poor, the cost of compiling suitable information for the pursuit or defense of a claim may be high. Effective documentation is the result of following simple guidelines and maintaining organizational discipline. The discipline needed for effective documentation requires the same management instruction, repetition, and follow-up construction professionals use to ensure that equipment is properly maintained, safe working practices are followed, and reports are submitted on time. Typically, completing paperwork on a construction project becomes burdensome; this is the point at which the discipline comes into play. The profitability of... <br><br>30-Jul-07 11:00 AM Effective Documentation Documentation is a vital function of construction management. If your profitability depends upon the collection of extras or the defense of claims made against you, and you have no records, the worlds best consultants and lawyers will be unable to create them for you. And if you do have the records, but your documentations organization and quality are poor, the cost of compiling suitable information for the pursuit or defense of a claim may be high. Effective documentation is the result of following simple guidelines and maintaining organizational discipline. The discipline needed for effective documentation requires the same management instruction, repetition, and follow-up construction professionals use to ensure that equipment is properly maintained, safe working practices are followed, and reports are submitted on time. Typically, completing paperwork on a construction project becomes burdensome; this is the point at which the discipline comes into play. The profitability of... http://www.interface-consulting.com/en/art/?27 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?28 Overview The special or general conditions of many construction contracts contain warranty provisions. A typical warranty clause may require the contractor to repair or replace defects in materials or workmanship for up to one year after acceptance of the work by the owner. This type of provision reflects risks that most contractors or subcontractors can identify and analyze based on experienced warranty or call-back costs. When dealing with equipment vendors, contractors and subcontractors can readily compare their own warranty exposure to the provisions of a manufacturers standard warranty and decide whether to seek an extended warranty provision in a purchase order. In addition to the typical one-year warranty, construction contracts may also obligate the contractor to other warranties of longer duration. These extended warranties can be imposed on a contractor in a less customary manner that results in a potential pitfall for the unwary. Two of the less traditional... <br><br>30-Jul-07 11:00 AM Identifying Warranty Risks Overview The special or general conditions of many construction contracts contain warranty provisions. A typical warranty clause may require the contractor to repair or replace defects in materials or workmanship for up to one year after acceptance of the work by the owner. This type of provision reflects risks that most contractors or subcontractors can identify and analyze based on experienced warranty or call-back costs. When dealing with equipment vendors, contractors and subcontractors can readily compare their own warranty exposure to the provisions of a manufacturers standard warranty and decide whether to seek an extended warranty provision in a purchase order. In addition to the typical one-year warranty, construction contracts may also obligate the contractor to other warranties of longer duration. These extended warranties can be imposed on a contractor in a less customary manner that results in a potential pitfall for the unwary. Two of the less traditional... http://www.interface-consulting.com/en/art/?28 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?29 Over the past 20 years, the design-build process has gained popularity throughout the engineering and construction industries. The Design-Build Institute of America estimates that by 2010, approximately 50% of all construction projects in America will use design-build. Regardless of whether these projections prove to be accurate, it is impossible to ignore that more projects are employing this alternative project delivery method. As shown in the table below, some projects lend themselves readily to the design-build process, while others continue to be constructed using the traditional design-bid-build process. Design-Bid Build Project Requires Heavy Owner Involvement Unique/Complex Facilities Residential High-End Commercial (Custom Features) Heavy/ Specializes Industrial Facilities Design-Build Less Owner Involvement Required Cookie Cutter Projects Gas Stations, Fast Food Restaurants Highways/Utilities/Light Industrial Public Schools What is Design-Build? ... <br><br>30-Jul-07 11:00 AM Is Design Build Right For Your Project Over the past 20 years, the design-build process has gained popularity throughout the engineering and construction industries. The Design-Build Institute of America estimates that by 2010, approximately 50% of all construction projects in America will use design-build. Regardless of whether these projections prove to be accurate, it is impossible to ignore that more projects are employing this alternative project delivery method. As shown in the table below, some projects lend themselves readily to the design-build process, while others continue to be constructed using the traditional design-bid-build process. Design-Bid Build Project Requires Heavy Owner Involvement Unique/Complex Facilities Residential High-End Commercial (Custom Features) Heavy/ Specializes Industrial Facilities Design-Build Less Owner Involvement Required Cookie Cutter Projects Gas Stations, Fast Food Restaurants Highways/Utilities/Light Industrial Public Schools What is Design-Build? ... http://www.interface-consulting.com/en/art/?29 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?3 Constructive acceleration occurs when a delay takes place beyond a contractors control, and yet the owner expects the job to be completed by the original contract completion date. A contractors claim for constructive acceleration should meet the following criteria: The delay is a result of causes that would entitle the contractor to time extension under the contract The contractor requests time extension for the delay in a timely manner, in accordance with the contract The owner fails or refuses to grant a time extension to the contractor The owner requires the contractor to complete the work in accordance with the original schedule or indicates an intention to penalize the contractor for failing to complete the work in accordance with the original contract schedule The contractor then endeavors to accelerate by working additional hours, by committing additional resources, or by other means The contractor incurs additional expense in carrying out these... <br><br>30-Jul-07 11:00 AM Constructive Acceleration Constructive acceleration occurs when a delay takes place beyond a contractors control, and yet the owner expects the job to be completed by the original contract completion date. A contractors claim for constructive acceleration should meet the following criteria: The delay is a result of causes that would entitle the contractor to time extension under the contract The contractor requests time extension for the delay in a timely manner, in accordance with the contract The owner fails or refuses to grant a time extension to the contractor The owner requires the contractor to complete the work in accordance with the original schedule or indicates an intention to penalize the contractor for failing to complete the work in accordance with the original contract schedule The contractor then endeavors to accelerate by working additional hours, by committing additional resources, or by other means The contractor incurs additional expense in carrying out these... http://www.interface-consulting.com/en/art/?3 Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?5 Changes in the scope of work on a major project are a common occurrence in the construction industry. Contractors are accustomed to directed changes, that is, those changes ordered by the Owner or the Owners agent under the change order clause of a contract. However, the nature or extent of construction work is often changed without the initiation of a change order. The question of compensation or time extension for this type of change is not as clearly addressed by the contract as are the responsibilities mandated by directed changes. This situation is commonly referred to as constructive change. A constructive change arises when the Owner acts in a manner that has the same effect as if a formal change order were written. If an unwritten change occurs, which would have been enforceable as a directed change under the contract had it been in writing, then it is a constructive change. Conduct of the Owners representative that has the effect of requiring a Contractor to perform work... <br><br>30-Jul-07 11:00 AM Constructive Change Changes in the scope of work on a major project are a common occurrence in the construction industry. Contractors are accustomed to directed changes, that is, those changes ordered by the Owner or the Owners agent under the change order clause of a contract. However, the nature or extent of construction work is often changed without the initiation of a change order. The question of compensation or time extension for this type of change is not as clearly addressed by the contract as are the responsibilities mandated by directed changes. This situation is commonly referred to as constructive change. A constructive change arises when the Owner acts in a manner that has the same effect as if a formal change order were written. If an unwritten change occurs, which would have been enforceable as a directed change under the contract had it been in writing, then it is a constructive change. Conduct of the Owners representative that has the effect of requiring a Contractor to perform work... http://www.interface-consulting.com/en/art/?5 Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?6 The construction contract is the most critical document in a construction project, because it defines the contractors scope of work and compensation. It also establishes the responsibilities, liabilities, and warranties of both the contractor and the owner. As such, a contractor must carefully consider the contract language when bidding a job. The construction contract establishes the rules for the entire project, but does not always predict the way the project will be managed. Generally, the contractors measures for preventing disputes during the bid stage include: Proper and timely performance of the contractors contractual pre-bid duties, whether explicit or implied. These include site visits, material take-offs, and evaluation of key requirements for the work such as insurance and bonding. Careful reading of the proposed general terms and conditions of the contract and evaluation of risks imposed by these terms and conditions. Appropriate action to ... <br><br>30-Jul-07 11:00 AM Contract Disputes The construction contract is the most critical document in a construction project, because it defines the contractors scope of work and compensation. It also establishes the responsibilities, liabilities, and warranties of both the contractor and the owner. As such, a contractor must carefully consider the contract language when bidding a job. The construction contract establishes the rules for the entire project, but does not always predict the way the project will be managed. Generally, the contractors measures for preventing disputes during the bid stage include: Proper and timely performance of the contractors contractual pre-bid duties, whether explicit or implied. These include site visits, material take-offs, and evaluation of key requirements for the work such as insurance and bonding. Careful reading of the proposed general terms and conditions of the contract and evaluation of risks imposed by these terms and conditions. Appropriate action to ... http://www.interface-consulting.com/en/art/?6 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?7 Liquidated damages (hereafter LDs) for delay can be an emotional topic for owners and contractors, as LDs come into play when the project is delayed and not progressing according to the parties expectations. LDs signal a troubled project, often leading to rising tensions which unfortunately divert attention and energy away from completing the project as expeditiously and economically as possible. What are LDs for Delay? LDs are commonly defined as when a contractor agrees to pay an Owner a fixed sum, either expressed as a percentage of the contract price or a fixed amount per day of delay in completing agreed upon milestones or project completion dates. The term liquidated implies that the parties have expressly stipulated in the contract the damage amount to be recovered in the event of a delay, regardless of the actual damages incurred by the owner for the delay. LDs are a benefit to the Owner in that they provide a strong incentive for the contractor to complete its work... <br><br>30-Jul-07 11:00 AM No Harm - No Foul An Equitable View on Liquidated Damages for Delay Liquidated damages (hereafter LDs) for delay can be an emotional topic for owners and contractors, as LDs come into play when the project is delayed and not progressing according to the parties expectations. LDs signal a troubled project, often leading to rising tensions which unfortunately divert attention and energy away from completing the project as expeditiously and economically as possible. What are LDs for Delay? LDs are commonly defined as when a contractor agrees to pay an Owner a fixed sum, either expressed as a percentage of the contract price or a fixed amount per day of delay in completing agreed upon milestones or project completion dates. The term liquidated implies that the parties have expressly stipulated in the contract the damage amount to be recovered in the event of a delay, regardless of the actual damages incurred by the owner for the delay. LDs are a benefit to the Owner in that they provide a strong incentive for the contractor to complete its work... http://www.interface-consulting.com/en/art/?7 noemail@interface-consulting.com Mon, 30 Jul 2007 16:00:00 GMT Articles http://www.interface-consulting.com/en/art/?2 Knowledge of the different construction claim types allows owners to recognize potential claims situations. This recognition can protect the owners from incurring losses and assist in recovering compensation. Many of the claim types discussed are interrelated, and frequently more than one of them may pertain to a particular situation. For the purpose of this article, we have divided claims into eight different types. Directed Changes - This type of claim involves a situation in which a contractor is required to perform work within the context of the contract, that is considered a change in the contractors scope of work. This change might be an addition or deletion of work or the use of different methods, materials, or designs. By definition, the owner recognizes the existence of a directed change, but there may be disagreement regarding the amount of compensation due the contractor. A directed change involves either a written or verbal instruction to change some aspect of the... <br><br>27-Jul-07 1:00 PM Construction Claims Knowledge of the different construction claim types allows owners to recognize potential claims situations. This recognition can protect the owners from incurring losses and assist in recovering compensation. Many of the claim types discussed are interrelated, and frequently more than one of them may pertain to a particular situation. For the purpose of this article, we have divided claims into eight different types. Directed Changes - This type of claim involves a situation in which a contractor is required to perform work within the context of the contract, that is considered a change in the contractors scope of work. This change might be an addition or deletion of work or the use of different methods, materials, or designs. By definition, the owner recognizes the existence of a directed change, but there may be disagreement regarding the amount of compensation due the contractor. A directed change involves either a written or verbal instruction to change some aspect of the... http://www.interface-consulting.com/en/art/?2 Fri, 27 Jul 2007 18:00:00 GMT