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Construction Experts and Claims Consultants Articles List

10 Articles Found

“A picture is worth a thousand words” is an old proverb that suggests complex stories can be described by just a single picture. The same is true with respect to proving construction claims, where one visual or graphic can be more persuasive and influential than a thousand words. Construction is a complex and risky process requiring extensive planning, engineering, procurement, and construction management. When all of these activities operate in concert with each other, the result is a successful project. However, when any one of these activities fails, the result can be a troubled project, often resulting in construction claims. The claimant typically has the burden of proof in preparing and proving its damages in construction claims. However, oftentimes the decision makers are company executives who may not be intimately familiar with the project details. Therefore, it is essential to ...

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 ...

Constructive acceleration occurs when a delay takes place beyond a contractor's control, and yet the owner expects the job to be completed by the original contract completion date. A contractor's 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 ...

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 Owner's 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 ...

The construction contract is the most critical document in a construction project, because it defines the contractor's 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 contractor's measures for preventing disputes during the bid stage include: Proper and timely performance of the contractor's 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. ...

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 ...

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 ...

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 ...

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 contractor's 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 ...

I.      Introduction Without question, construction disputes consume precious time, money, and resources for all parties involved. Regardless of the experience and capabilities of the construction professionals involved in a dispute or claim, the claim process can quickly become very complex. Before addressing the process in detail, this paper will provide a general discussion on the definition of a construction claim, the parties involved and the claims made by the parties, and how to deal with claims. I.A.    What is a claim? Quite simply, a construction contract claim is understood to be a demand asserted by one party on another party relating to the services or products specified in the contract. The most common claim on construction projects concerns payment (or nonpayment) for work performed under the general contract. A claim basically boils down to monetary relief sought by one or ...