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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...[Full Article]

Constructive Acceleration

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... [Full Article]
 

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 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... [Full Article]
 

Contract Disputes 

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.... [Full Article]
 

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... [Full Article]
 

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... [Full Article]
 

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... [Full Article]
 

The Rules of Engagement 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... [Full Article]  [Article PDF Part 1]  [Article PDF Part 2]