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Construction Experts and Claims Consultants Articles List

14 Articles Found

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 owner's decision to furnish items that could be procured ...

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 world's best consultants and lawyers will be unable to create them for you. And if you do have the records, but your documentation's 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 ...

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 manufacturer's 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 ...

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? Design-build is a construction methodology in which the owner contracts with a single entity to ...