This document discusses whether a subcontractor can claim delay damages when the general contractor's schedule is not delayed. It covers topics such as pass-through claims, the Miller Act, combating no damage for delay clauses, and strategies for subcontractors to prove delay claims. A key point is that subcontractors may be able to recover delay costs through a pass-through claim if the general contractor acknowledges liability and the subcontractor meets requirements such as timely notice and good documentation. The Miller Act is also discussed as a potential means for subcontractors to recover increased labor and material costs due to delays. The document emphasizes the importance for subcontractors to be involved in the project schedule and maintain thorough records.
2010 AACEi Great Debate - Approval of Schedule RevisionsChris Carson
The debate centered around whether schedule revisions submitted by the contractor should require approval from the owner. Key points discussed included:
- The pro position argued that as the project is for the owner's use, they should have input and approval on schedule revisions. However, the con position stated the contractor bears the risk of performance.
- Both sides debated whether schedule revisions should model changes to the project plan or allow for nimble management by the contractor.
- Approval was seen as providing quality control by ensuring all scope is included, but also as an difficult process that could delay management.
- In the end, the debate concluded without a clear resolution to the question of whether schedule revisions should require owner approval
Schedule-Centric View Of Contract AdminChris Carson
The document discusses the importance of taking a schedule-centric approach to contract administration. It emphasizes reading the full contract, including general conditions and scheduling requirements. A schedule-driven process that includes regular schedule updates and reviews can help complete projects on time and on budget by avoiding disputes. Developing a schedule-centric culture with buy-in from senior management and comprehensive reporting is key to success.
How To Structure A Successful MediationChris Carson
The document provides guidance on structuring a successful mediation for resolving construction disputes. It discusses establishing early mediation timing, setting an informal atmosphere, using a partnering approach by the mediator, and focusing the presentations and discussions on problem-solving and identifying areas of agreement rather than adversarial stances. The goal is for the parties to recognize the high costs of continued formal dispute resolution and settle on offers presented during the mediation process.
Pmicos 2011 Review And Analysis Of Mitigation SchedulesChris Carson
This paper describes strategies to request, review and analyze mitigation plans, including discussion of real project experiences in mitigation through cost-based analysis looking at progress, compression, and fast track, ultimately recognizing the differences between the Contractors’ best case and the Owner’s best case.
Using Symptoms To Develop Appropriate Claims Avoidance Documentation Wpl We...Chris Carson
This document provides an overview of Alpha Corporation, a construction management firm that offers services including construction management, scheduling, claims analysis, and dispute resolution. It then discusses concepts related to construction delay and disruption claims, including the differences between delay and disruption, how to identify disruption, and how disruption can impact productivity. The document aims to help contractors better understand and document delay and disruption claims.
This document discusses best practices for planning construction schedules to account for adverse weather conditions. It recommends using a weather calendar based on historical data from sources like the National Weather Service. The calendar applies estimated non-work days to weather-dependent activities. This allows the schedule to automatically adjust as weather conditions change over time. Other methods like contingency buffers have disadvantages like reducing schedule transparency and accuracy.
The document discusses guidelines for using dual parallel project schedules, which is not generally recommended. It identifies risks such as contractual issues, difficulty proving delays, and schedule management complications. The key recommendations are to:
1) Only have one schedule for management and delay analysis.
2) If dual schedules are necessary, develop them using the same activity list and hard logic, with the production schedule using optimistic durations and the contract schedule using most likely durations.
3) Manage risks through transparent schedule documentation and risk management processes applied to the contract schedule.
The document provides guidance for subcontractors on commercial project management issues including: clear communication is important; differences between commercial and residential work; the bidding and contracting phase including reviewing plans and specifications; the subcontractor bid process; relevant specification sections; submitting clear bid proposals; notes on subcontracts and boilerplate language; the importance of submittals; schedule considerations including critical path, total float, and acceleration; project management and change management processes; safety regulations; and insurance, bonds, and payment processes.
2010 AACEi Great Debate - Approval of Schedule RevisionsChris Carson
The debate centered around whether schedule revisions submitted by the contractor should require approval from the owner. Key points discussed included:
- The pro position argued that as the project is for the owner's use, they should have input and approval on schedule revisions. However, the con position stated the contractor bears the risk of performance.
- Both sides debated whether schedule revisions should model changes to the project plan or allow for nimble management by the contractor.
- Approval was seen as providing quality control by ensuring all scope is included, but also as an difficult process that could delay management.
- In the end, the debate concluded without a clear resolution to the question of whether schedule revisions should require owner approval
Schedule-Centric View Of Contract AdminChris Carson
The document discusses the importance of taking a schedule-centric approach to contract administration. It emphasizes reading the full contract, including general conditions and scheduling requirements. A schedule-driven process that includes regular schedule updates and reviews can help complete projects on time and on budget by avoiding disputes. Developing a schedule-centric culture with buy-in from senior management and comprehensive reporting is key to success.
How To Structure A Successful MediationChris Carson
The document provides guidance on structuring a successful mediation for resolving construction disputes. It discusses establishing early mediation timing, setting an informal atmosphere, using a partnering approach by the mediator, and focusing the presentations and discussions on problem-solving and identifying areas of agreement rather than adversarial stances. The goal is for the parties to recognize the high costs of continued formal dispute resolution and settle on offers presented during the mediation process.
Pmicos 2011 Review And Analysis Of Mitigation SchedulesChris Carson
This paper describes strategies to request, review and analyze mitigation plans, including discussion of real project experiences in mitigation through cost-based analysis looking at progress, compression, and fast track, ultimately recognizing the differences between the Contractors’ best case and the Owner’s best case.
Using Symptoms To Develop Appropriate Claims Avoidance Documentation Wpl We...Chris Carson
This document provides an overview of Alpha Corporation, a construction management firm that offers services including construction management, scheduling, claims analysis, and dispute resolution. It then discusses concepts related to construction delay and disruption claims, including the differences between delay and disruption, how to identify disruption, and how disruption can impact productivity. The document aims to help contractors better understand and document delay and disruption claims.
This document discusses best practices for planning construction schedules to account for adverse weather conditions. It recommends using a weather calendar based on historical data from sources like the National Weather Service. The calendar applies estimated non-work days to weather-dependent activities. This allows the schedule to automatically adjust as weather conditions change over time. Other methods like contingency buffers have disadvantages like reducing schedule transparency and accuracy.
The document discusses guidelines for using dual parallel project schedules, which is not generally recommended. It identifies risks such as contractual issues, difficulty proving delays, and schedule management complications. The key recommendations are to:
1) Only have one schedule for management and delay analysis.
2) If dual schedules are necessary, develop them using the same activity list and hard logic, with the production schedule using optimistic durations and the contract schedule using most likely durations.
3) Manage risks through transparent schedule documentation and risk management processes applied to the contract schedule.
The document provides guidance for subcontractors on commercial project management issues including: clear communication is important; differences between commercial and residential work; the bidding and contracting phase including reviewing plans and specifications; the subcontractor bid process; relevant specification sections; submitting clear bid proposals; notes on subcontracts and boilerplate language; the importance of submittals; schedule considerations including critical path, total float, and acceleration; project management and change management processes; safety regulations; and insurance, bonds, and payment processes.
Use Of Schedule Logs 2012 Pmi Scop ConferenceChris Carson
This document provides biographies of three authors for a project on scheduling - Mark Doran, Paul Levin, PSP, and Chris Carson, PSP. It includes their educational backgrounds, years of experience, professional fields, and additional details. The biographies demonstrate the authors' expertise in areas like construction management, scheduling, project controls, and certification in fields such as PMP, PSP, and CCM.
This document summarizes a presentation on innovative program delivery and claims avoidance for the North Terminal project at Miami International Airport. It describes the challenges faced by the previous management team, including cost overruns, delays, and over $160 million in claims from contractors. The airport authority replaced the management team and worked to resolve all outstanding claims over 16 months. It then assembled a new experienced management team to complete the project while avoiding additional claims through improved planning and controls.
The document discusses various types of construction claims including delay claims, labor productivity claims, defects claims, force majeure claims, acceleration claims, suspension and termination claims, and differing site conditions claims. It also discusses various methods for analyzing schedule delays such as windows analysis, time impact analysis, collapsed as-built, impacted as-planned, and as-planned vs. as-built analysis.
The document outlines a three step approach to eliminating crisis project management: 1) Developing a schedule-driven program, 2) Creating a project management recovery system, and 3) Developing a scheduling recovery system. Step one involves instituting senior management buy-in for dedicated scheduling. Step two develops strategies for addressing delays from various sources. Step three provides checklists for analyzing schedules and suggesting recovery solutions when slippage occurs. The overall approach aims to minimize costs from delays through proactive scheduling, recovery planning, and applying lessons learned from past issues.
1. Earned value management (EVM) metrics can help identify specific trades or scopes of work contributing to schedule slippage and poor performance. This allows for targeted mitigation strategies.
2. To effectively use EVM for schedule compression, the baseline schedule needs to be thoroughly coded to allow export and analysis of performance data by trade or work type.
3. Exporting schedule data to a spreadsheet enables pivot tables and charts to examine historical performance trends for each trade. This highlights which trades need additional resources or management to meet goals for schedule compression.
Use Of A Claims Triage Workshop To Choose An Analysis MethodChris Carson
AACEi Recommended Practice 29R-03, Forensic Schedule Analysis, properly notes that there are a number of factors to consider in choosing a method of analysis in a time-related dispute. The variety, number, and complexity of the reasons to choose the correct method of analysis require more than a casual approach.
This presentation demonstrates a process that we call a “Claims Triage” and use for every new dispute resolution assignment, organized and guided with a checklist and procedure.
Roadmap To World Class Project Controls PpChris Carson
The key to successful projects and programs and viable project management is a strong and effective project controls effort. This effort is the result of a structured approach to developing a planning and scheduling culture in the organization through adoption of industry best practices, recruiting, training, and mentoring of project controls personnel, and maintaining state of the art competencies among all levels of personnel.
This document provides guidance on updating project schedules. It discusses determining the frequency of updates based on schedule purpose and size. It also outlines the process for collecting progress data from the field, office, owners, and subcontractors. The document details how to status the schedule, calculate updates, check for out-of-sequence work, and verify the updated schedule. It provides recommendations for standard schedule analysis for on-time projects and slipped schedules, including reviewing historical trends, the critical path, and more.
The document outlines a claim analysis for a mechanical contract for an upgrade to a mill plant that was delayed due to late equipment delivery, defective equipment, drawing revisions, and lack of access to work areas. It analyzes the causes of over 85 days of delay and over $2.8 million in damages from unpaid change orders, loss of profit, indirect costs, and loss of productivity. The contractor is submitting this claim against the engineer who terminated the $2.5 million lump sum contract with only $1.8 million in total payment.
The document discusses the Integrated Baseline Review (IBR) process. It defines the IBR as a required review led by the Project Manager to validate the contractor's Performance Measurement Baseline. The objectives of the IBR are to validate the technical, schedule and cost aspects of the baseline, understand risks, and gain confidence in the contractor's ability to execute the project as planned. It describes the typical participants in an IBR team and their roles, and the information typically required for an IBR.
This document proposes conducting claims analysis as part of regular schedule updates to minimize risks for contractors. It describes the typical schedule update process which risks overlooking delays and assigning full responsibility to the contractor. The proposed process includes identifying causal activities, driving issues, concurrent delays, and collaborating with subcontractors and owners to resolve delays. Benefits include issues being addressed promptly, better documentation, and fewer disputes and claims costs. Some risks are increased analysis costs and time needed during updates.
Project Controls Expo - 31st Oct 2012 - Forensic Delay Analysis The Ultimate ...Project Controls Expo
Introduction
1. Why is forensic delay analysis the ultimate test for project controls?
2. Methods of delay analysis
3. Choice of method of delay analysis
4. Demonstration of methods of delay analysis
5. Project controls, data and records for delay analysis
The document discusses baseline scheduling basics and the critical path method (CPM) of scheduling. It covers why schedules are important, different types of schedules and scheduling methodologies. The key aspects of developing a CPM schedule are outlined, including schedule components, logic, and ensuring the schedule is feasible and has buy-in from all parties. Common areas of conflict in scheduling and developing a schedule with the appropriate level of detail and ownership of float are also addressed.
Business of anaerobic digestion project delivery basicseisenmannusa
This document summarizes the basics of project delivery for anaerobic digestion projects. It outlines key components like feedstock, technology, permitting, operations and offtake agreements. It then discusses typical project timelines, delivery approaches like design-bid-build vs EPC, and considerations for selecting the right approach based on risk tolerance, speed needs and cost control factors. Contract structures like fixed price, cost plus and performance guarantees are also briefly covered.
The document provides an overview of schedule design and its importance. It discusses that schedules are rarely designed intentionally and instead schedulers tend to jump straight into development. This can result in issues like inconsistent levels of detail and a lack of structure. The document then presents a framework and checklist for schedule design. It emphasizes designing the schedule before planning and development. The design process involves defining the project scope, developing an execution strategy, and creating an organizational structure for the schedule. It provides a detailed checklist to guide the design process.
The document discusses the commissioning process framework and guidelines from organizations like ASHRAE and NIBS. It summarizes the key phases and documents of the commissioning process, including pre-design, design, construction, and occupancy. In the pre-design phase, the owner's project requirements are developed and the commissioning plan is initiated. In the design phase, the commissioning plan is updated and the basis of design is verified to ensure the design matches the owner's requirements.
Balancing Flexibility and Cost Control in Construction ProjectsBrown Smith Wallace
This document provides a summary of key principles for controlling construction costs on projects. It discusses the importance of staying ahead of the cost influence curve through comprehensive planning, defining project delivery methods, and controlling schedules. It also covers implementing safeguards in contract terms, controlling costs during bidding, and administrative/financial controls. Finally, it emphasizes the importance of conducting construction audits to effectively manage costs, hold teams accountable, and avoid/recover improperly billed costs. The overall message is that owners must be educated consumers and not assume contractors have their best interests in mind.
The document discusses the design-build approach for construction projects. It outlines the team structures for the proposal, design, and construction phases. The design-build process involves preliminary design and planning, detailed design work to develop a guaranteed maximum price (GMP), implementation including permitting and construction, and project completion. Key advantages of the design-build approach are obtaining a firm price earlier and cost savings through integrated design and construction efforts.
Thank you for the update on projects and activities at Fort Lauderdale-Hollywood International Airport. Please let me know if you need any other information.
The document discusses preconstruction coordination and project management planning. It covers establishing communication protocols, reviewing contracts and schedules, coordinating with stakeholders, and organizing job files and record keeping. The project manager takes a leadership role to plan the project, monitor progress, control costs, and coordinate all parties. An effective communication system and weekly meetings are key to project coordination.
The document discusses the importance of contractors understanding their break-even point and how to calculate it. It provides examples of annual and monthly budgets, showing how to determine break-even revenue, sales, and hours. It also discusses how changing variables like overhead costs, gross profit margins, or adding new expenses can impact break-even levels. The document recommends contractors regularly monitor their break-even and take action if they are not hitting monthly targets.
1. The document provides cost breakdowns for four projects including labor, materials, subcontractors, purchases, and overhead costs.
2. Project costs include take-off hours, materials, subcontractors, purchases, productivity factors, taxes, payroll, group costs, overhead and profit, insurance and taxes.
3. The total bid prices for the four projects are $1,223,947.09, $1,006,333.57, $1,223,947.09, and $262,867.12 respectively.
Use Of Schedule Logs 2012 Pmi Scop ConferenceChris Carson
This document provides biographies of three authors for a project on scheduling - Mark Doran, Paul Levin, PSP, and Chris Carson, PSP. It includes their educational backgrounds, years of experience, professional fields, and additional details. The biographies demonstrate the authors' expertise in areas like construction management, scheduling, project controls, and certification in fields such as PMP, PSP, and CCM.
This document summarizes a presentation on innovative program delivery and claims avoidance for the North Terminal project at Miami International Airport. It describes the challenges faced by the previous management team, including cost overruns, delays, and over $160 million in claims from contractors. The airport authority replaced the management team and worked to resolve all outstanding claims over 16 months. It then assembled a new experienced management team to complete the project while avoiding additional claims through improved planning and controls.
The document discusses various types of construction claims including delay claims, labor productivity claims, defects claims, force majeure claims, acceleration claims, suspension and termination claims, and differing site conditions claims. It also discusses various methods for analyzing schedule delays such as windows analysis, time impact analysis, collapsed as-built, impacted as-planned, and as-planned vs. as-built analysis.
The document outlines a three step approach to eliminating crisis project management: 1) Developing a schedule-driven program, 2) Creating a project management recovery system, and 3) Developing a scheduling recovery system. Step one involves instituting senior management buy-in for dedicated scheduling. Step two develops strategies for addressing delays from various sources. Step three provides checklists for analyzing schedules and suggesting recovery solutions when slippage occurs. The overall approach aims to minimize costs from delays through proactive scheduling, recovery planning, and applying lessons learned from past issues.
1. Earned value management (EVM) metrics can help identify specific trades or scopes of work contributing to schedule slippage and poor performance. This allows for targeted mitigation strategies.
2. To effectively use EVM for schedule compression, the baseline schedule needs to be thoroughly coded to allow export and analysis of performance data by trade or work type.
3. Exporting schedule data to a spreadsheet enables pivot tables and charts to examine historical performance trends for each trade. This highlights which trades need additional resources or management to meet goals for schedule compression.
Use Of A Claims Triage Workshop To Choose An Analysis MethodChris Carson
AACEi Recommended Practice 29R-03, Forensic Schedule Analysis, properly notes that there are a number of factors to consider in choosing a method of analysis in a time-related dispute. The variety, number, and complexity of the reasons to choose the correct method of analysis require more than a casual approach.
This presentation demonstrates a process that we call a “Claims Triage” and use for every new dispute resolution assignment, organized and guided with a checklist and procedure.
Roadmap To World Class Project Controls PpChris Carson
The key to successful projects and programs and viable project management is a strong and effective project controls effort. This effort is the result of a structured approach to developing a planning and scheduling culture in the organization through adoption of industry best practices, recruiting, training, and mentoring of project controls personnel, and maintaining state of the art competencies among all levels of personnel.
This document provides guidance on updating project schedules. It discusses determining the frequency of updates based on schedule purpose and size. It also outlines the process for collecting progress data from the field, office, owners, and subcontractors. The document details how to status the schedule, calculate updates, check for out-of-sequence work, and verify the updated schedule. It provides recommendations for standard schedule analysis for on-time projects and slipped schedules, including reviewing historical trends, the critical path, and more.
The document outlines a claim analysis for a mechanical contract for an upgrade to a mill plant that was delayed due to late equipment delivery, defective equipment, drawing revisions, and lack of access to work areas. It analyzes the causes of over 85 days of delay and over $2.8 million in damages from unpaid change orders, loss of profit, indirect costs, and loss of productivity. The contractor is submitting this claim against the engineer who terminated the $2.5 million lump sum contract with only $1.8 million in total payment.
The document discusses the Integrated Baseline Review (IBR) process. It defines the IBR as a required review led by the Project Manager to validate the contractor's Performance Measurement Baseline. The objectives of the IBR are to validate the technical, schedule and cost aspects of the baseline, understand risks, and gain confidence in the contractor's ability to execute the project as planned. It describes the typical participants in an IBR team and their roles, and the information typically required for an IBR.
This document proposes conducting claims analysis as part of regular schedule updates to minimize risks for contractors. It describes the typical schedule update process which risks overlooking delays and assigning full responsibility to the contractor. The proposed process includes identifying causal activities, driving issues, concurrent delays, and collaborating with subcontractors and owners to resolve delays. Benefits include issues being addressed promptly, better documentation, and fewer disputes and claims costs. Some risks are increased analysis costs and time needed during updates.
Project Controls Expo - 31st Oct 2012 - Forensic Delay Analysis The Ultimate ...Project Controls Expo
Introduction
1. Why is forensic delay analysis the ultimate test for project controls?
2. Methods of delay analysis
3. Choice of method of delay analysis
4. Demonstration of methods of delay analysis
5. Project controls, data and records for delay analysis
The document discusses baseline scheduling basics and the critical path method (CPM) of scheduling. It covers why schedules are important, different types of schedules and scheduling methodologies. The key aspects of developing a CPM schedule are outlined, including schedule components, logic, and ensuring the schedule is feasible and has buy-in from all parties. Common areas of conflict in scheduling and developing a schedule with the appropriate level of detail and ownership of float are also addressed.
Business of anaerobic digestion project delivery basicseisenmannusa
This document summarizes the basics of project delivery for anaerobic digestion projects. It outlines key components like feedstock, technology, permitting, operations and offtake agreements. It then discusses typical project timelines, delivery approaches like design-bid-build vs EPC, and considerations for selecting the right approach based on risk tolerance, speed needs and cost control factors. Contract structures like fixed price, cost plus and performance guarantees are also briefly covered.
The document provides an overview of schedule design and its importance. It discusses that schedules are rarely designed intentionally and instead schedulers tend to jump straight into development. This can result in issues like inconsistent levels of detail and a lack of structure. The document then presents a framework and checklist for schedule design. It emphasizes designing the schedule before planning and development. The design process involves defining the project scope, developing an execution strategy, and creating an organizational structure for the schedule. It provides a detailed checklist to guide the design process.
The document discusses the commissioning process framework and guidelines from organizations like ASHRAE and NIBS. It summarizes the key phases and documents of the commissioning process, including pre-design, design, construction, and occupancy. In the pre-design phase, the owner's project requirements are developed and the commissioning plan is initiated. In the design phase, the commissioning plan is updated and the basis of design is verified to ensure the design matches the owner's requirements.
Balancing Flexibility and Cost Control in Construction ProjectsBrown Smith Wallace
This document provides a summary of key principles for controlling construction costs on projects. It discusses the importance of staying ahead of the cost influence curve through comprehensive planning, defining project delivery methods, and controlling schedules. It also covers implementing safeguards in contract terms, controlling costs during bidding, and administrative/financial controls. Finally, it emphasizes the importance of conducting construction audits to effectively manage costs, hold teams accountable, and avoid/recover improperly billed costs. The overall message is that owners must be educated consumers and not assume contractors have their best interests in mind.
The document discusses the design-build approach for construction projects. It outlines the team structures for the proposal, design, and construction phases. The design-build process involves preliminary design and planning, detailed design work to develop a guaranteed maximum price (GMP), implementation including permitting and construction, and project completion. Key advantages of the design-build approach are obtaining a firm price earlier and cost savings through integrated design and construction efforts.
Thank you for the update on projects and activities at Fort Lauderdale-Hollywood International Airport. Please let me know if you need any other information.
The document discusses preconstruction coordination and project management planning. It covers establishing communication protocols, reviewing contracts and schedules, coordinating with stakeholders, and organizing job files and record keeping. The project manager takes a leadership role to plan the project, monitor progress, control costs, and coordinate all parties. An effective communication system and weekly meetings are key to project coordination.
The document discusses the importance of contractors understanding their break-even point and how to calculate it. It provides examples of annual and monthly budgets, showing how to determine break-even revenue, sales, and hours. It also discusses how changing variables like overhead costs, gross profit margins, or adding new expenses can impact break-even levels. The document recommends contractors regularly monitor their break-even and take action if they are not hitting monthly targets.
1. The document provides cost breakdowns for four projects including labor, materials, subcontractors, purchases, and overhead costs.
2. Project costs include take-off hours, materials, subcontractors, purchases, productivity factors, taxes, payroll, group costs, overhead and profit, insurance and taxes.
3. The total bid prices for the four projects are $1,223,947.09, $1,006,333.57, $1,223,947.09, and $262,867.12 respectively.
The document discusses strategies for contractors to maximize profits on cost plus contracts through billing practices related to labor rates, equipment rates, overhead allocation, and self-performed work. It provides examples of how contractors can build profits into their billing rates and recommends contract language to define billing terms and limit hidden profit margins. The document also overview Veritas Advisory Group, a construction consulting firm that assists with dispute resolution through cost and schedule analysis.
Hemant Industries was founded in 1971 in Baroda, India and originally produced ball valves and other industrial supplies. Over time, the company expanded its product line to include safety equipment like air movers and flange guards to meet rising customer needs. The document discusses Hemant Industries' products and manufacturing cost accounting practices, including the classification of direct, indirect, and overhead costs. It also covers cost allocation, apportionment, and absorption methods used to determine the full cost of goods produced.
Create a Profit Plan for a Successful 2011 Linnea Blair
You can identify your revenue and profit goals for the year without developing a real plan to achieve them. This almost always means you will fall short of your expectations. Putting together a detailed and strategic Profit Plan or Budget for the year gives you a framework to achieve success. This PDCA Contractor College Webinar provides techniques and tools to help Painting Contractors to create a realizable Profit Plan and Budget for 2011. Put your plan in place now, so you can hit the ground running in January implementing action steps that will give you the edge over your slower moving, less organized competitors.
Presentation on practical approach of costing in construction industry has been prepared with the objective of spreading and sharing knowledge of flow of costing and key areas among industry, professionals and other related people.
it may be very useful to understand the basic concepts and approach of costing of this fastest growing industry.
This document discusses direct and indirect costs, and how overheads are traditionally allocated using a three step process of primary distribution, secondary distribution, and absorption. It notes some of the problems with traditional overhead allocation methods, and introduces Activity Based Costing as an alternative that seeks to identify cause-and-effect relationships to more accurately assign costs based on a product's use of activities. ABC uses cost drivers and a four step process to attribute activity costs to products.
This document discusses the process of cost estimating for construction projects from the programming phase through the construction documents phase. It outlines the key steps in performing a quantity take-off during the construction documents phase, including preparing by reviewing drawings and specifications, potentially visiting the site, taking precise measurements of materials, and listing items with quantities, costs, and totals to create a bid proposal. Accuracy depends on following best practices like measuring all items and accounting for unusual conditions.
The document discusses various pricing strategies used by companies, including price discounts, promotional pricing, differentiated pricing, and responding to competitors' price changes. It also covers legal aspects of pricing such as price fixing, price discrimination, predatory pricing, and deceptive advertising. Overall, the document provides an overview of different approaches to setting prices, factors companies consider when adjusting prices, and legal issues related to pricing.
This document provides approximate estimates for flyovers constructed at four different locations. It summarizes the key details of each flyover project such as location, client, contractor, scope of work, cost, duration, progress, resources used, and per meter cost. The average cost per meter of the flyovers according to the estimates given is Rs. 5,37,635.
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
The document discusses various pricing strategies and approaches. It covers factors that influence pricing decisions, both internal like costs and objectives, and external like competitors and consumer perceptions. It also describes three main approaches to determining prices: cost-based using costs of production, buyer-based using perceived value, and competition-based by considering competitors' prices. Specific pricing strategies are also outlined, like penetrating the market with low introductory prices or "skimming the cream" with high initial prices.
The document discusses signs that a project is troubled and ways to assess and fix troubled projects. When a project is going poorly, communication decreases, people avoid discussing the project, and blame becomes focused on instead of solving problems. To fix a troubled project, one must determine if the issues were from a single failure, multiple aggregated failures, or a catastrophic failure. The causes could be people, process, technology, or a combination of these. Actions to fix the project range from minor adjustments to full salvage or abandonment of the project.
The document discusses signs that a project is troubled and ways to assess and fix troubled projects. When a project is going poorly, communication decreases, people avoid discussing the project, and blame becomes focused on instead of solving problems. To fix a troubled project, one must determine if the issues were from a single failure, multiple aggregated failures, or a catastrophic failure. The causes could be people, process, technology, or a combination. Actions to fix the project range from minor adjustments to full salvage or abandonment of the project.
This document provides an overview of project delivery methods, procurement methods, and contract documents for Rural Development housing projects. It discusses alternative project delivery methods like design-build and construction management. It also outlines the procurement process and requirements for contract documents like performance bonds, payment bonds, notices to proceed, and change orders. National Office review is required for some project delivery methods. Resources for questions are also provided.
This document discusses claims management in construction projects. It defines a claim as a request for compensation due to certain events. It outlines the claims management process, which includes establishing monitoring, identifying root causes, determining claim type, gathering documents, and claim preparation and settlement. It also categorizes and describes common causes of construction claims, such as design errors, differing site conditions, changes, delays, and accidents. Causes can be due to contractor practices, owner practices, or occur during bidding or construction phases.
The document summarizes a presentation given at a RESNET conference on modular and manufactured housing. It discusses the challenges of achieving Energy Star certification for modular homes, including a lack of coordination between builders, manufacturers, and HERS raters. It provides examples of common issues found during inspections such as improper insulation installation and air sealing defects. The presentation concludes by emphasizing the need for continued education and training of all stakeholders to fully integrate green building practices.
This document provides an overview of common challenges with FPSO project execution and recommendations for success. Many FPSO projects experience significant schedule delays and cost overruns due to unrealistic schedules set during bidding, lack of design freeze, vendor management issues, and ineffective project organizations. Key factors for successful FPSO delivery include focusing on front-end engineering, establishing an effective project organization, managing vendors, making timely decisions, and having a realistic schedule and management of change process. Keeping the execution approach simple generally works better than complex approaches.
11 years experience in Residential Villa , Precast structures, Petrol compact stations, Water pipe line project, Industrial projects like ( Thermal power plant, Oil & refinery plant). And Material coordinator & procurement, SAP, Piling, sheet piling,
This document discusses the process of working drawings, detailing, tendering, contract procurement and administration for construction projects from start to finish. It provides an overview of the minimum requirements for working drawings, outlines the stages of tender documents and contract procurement, and describes the routines involved in handing over the site to the contractor, basic construction monitoring checkpoints, and activities required to manage the project until final completion and certification.
GCCC contracts experience to date 08'03'11cmcgoverntobin
Presentation by Ciaran McGovern - Operations Director, TOBIN to Engineers Ireland (Thomond / West Region)
8th March, 2011
Presentation title: GCCC Contracts Experience to date:
A review of the operation of the GCCC Contracts on Civil Engineering projects
Infrastructure project and responsibility break downBhim Upadhyaya
This document provides information about an engineering infrastructure development project in Nepal. It discusses the project work breakdown structure and responsibility breakdown. It defines what a project is, outlines the typical project phases and stakeholders. It then discusses tools for work breakdown like the work breakdown structure, Gantt chart, CPM and PERT. Finally, it provides examples of rural infrastructure projects in Nepal and highlights the importance of quality supervision during construction.
The document discusses various contracting strategies for terminal construction projects. It describes client managed construction, engineering procurement and construction (EPC) contracts with a single contractor, and using multiple package unit contracts. EPC contracts can be lump-sum turn-key, design and construct, or unit rates. Package units require more interfaces but allow negotiation. Engineering, procurement, and construction management is also discussed. Key factors in choosing a strategy include project complexity, risk allocation, budget and schedule certainty, and client influence.
The document discusses various contracting strategies for terminal construction projects. It describes client managed construction, engineering procurement and construction (EPC) contracts with a single contractor, and using multiple package unit contracts. EPC contracts can be lump-sum turn-key, design and construct, or unit rates. Package units require more interfaces but allow negotiation. EPC management is also discussed. Choosing a strategy depends on project size, complexity, budget risk tolerance, and design influence desired.
The document is a curriculum vitae for Mr. Thian Chen San that outlines his experience in petrochemical and shipyard industries over the past 20 years. It details his roles in project management, construction coordination, engineering, and planning. He has strong skills in coordinating work between various parties, managing health and safety, and resolving engineering issues in the field. The CV highlights qualifications and courses completed to strengthen his expertise in project management and safety.
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1Q24_HYUNDAI CAPITAL SERVICES INC. AND SUBSIDIARIES
Can A Subcontractor Have CP Delay When The Gc Does Not
1. Can a Subcontractor Have a Critical Path Delay
When the GC Does Not?
Christopher Carson, PSP
Shannon Campbell, PSP
2. Shannon Campbell, PSP
• Degree:
– B.S. Civil Engineering
– M.S. Engineering Management
• University:
– B.S – United States Military Academy
– M.S. – University of Missouri-Rolla
• Years of Experience:
– 10 years
• Professional Field:
– Engineering Claims Consultant
• Something you do not know about me:
– Served 6.5 years in the military as an army engineer travelling to 14 different countries across 5
continents – many of these visits were to view construction projects throughout the world.
2
3. Chris Carson, PSP, CCM, PMP
• Corporate Director of Project Controls, Alpha Corporation
– Responsible for standards, processes, and procedures for a team of schedulers, analysts, and project
managers in multiple office locations, as well as analysis, work product, and testimony
– Developed and manages the in-house project controls training program at Alpha
• Certifications:
– PSP (Planning & Scheduling Professional – AACEi)
– CCM (Certified Construction Manager - CMAA)
– PMP (Project Management Professional – PMI)
• University: University of Virginia, Mechanical Engineering, 1972
• Professional Field: 38 years of experience in Construction Management Services specializing in
Scheduling, Schedule Analysis, Estimating, Claims
• Active in AACEi (Association for the Advancement of Cost Estimating International)
– Author of Recommended Practices in Scheduling & Forensic Schedule Analysis RP
• Active in PMI (Project Management Institute) College of Scheduling
– Vice President of Scheduling Excellence
– Managing Director for SEI (Scheduling Excellence Initiative) writing Best Practices and Guidelines for
Scheduling and Schedule Impact Analysis
– Serving on team writing Best Practices for Scheduling for GAO
• Active in CMAA (Construction Management Association of America)
– Served on committee revising Time Management Chapter of CMAA’s CM Standards of Practice
• Active in Planning Planet (global planning association)
– Chief Editor for US, writing Planner Users’ Guide, developing accreditation Guild for planners
• Something you don’t know about me: I’m a glider co-pilot, see picture
3
3
4. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Introduction
• Entitlement to Delay Damages only when there is Critical Path
Delay to Project Completion
• What happens when an owner impact extends the time a
subcontractor is on the job but the impact does NOT extend the
Project Completion?
• What, if any, entitlement does the Subcontractor have to recover
delay-related costs?
4
5. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
5
6. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
6
9. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
9
10. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Pass-Through Claims
• Privity of Contract
• Recovery of Damages through a Pass Through Claim
• Definition:
A pass-through claim is a claim:
1) by a Subcontractor who has incurred damages due to the
actions of the Owner/Government with whom it has no
contract; and
2) submitted by the GC who has a contractual relationship with
both the Subcontractor and the Owner/Government.
10
11. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Severin Doctrine
“a prime contractor may sue the Government on behalf of its
Subcontractor, in the nature of a pass-through suit, for costs
incurred by the Subcontractor [due to the Government’s
conduct] . . . [i]f the prime contractor proves its liability to the
Subcontractor for the damages sustained by the latter . . . a
showing [which] overcomes the objection to the lack of privity
between the Government and the Subcontractor.”
11
12. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Liquidating Agreements
• Acknowledgement of liability to the Subcontractor
– Satisfies the Severin doctrine requirement that the GC is technically and legally liable to the
subcontractor for the claim before submitting to Government
• Limits liability to the amount that a prime is able to recover from the
owner
– Protects the prime
12
13. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
E.R. Mitchell Constr. Co. v. Danzig
• Basics of the case
• Players
• Facts
• No dispute of Federal Government liability
• Government approved schedule
• Government put on notice of damages to both GC and
subcontractor
• Owner responsible delays not of project schedule critical path
• Results
• Subcontractor satisfied all requirements for entitlement to
Eichleay damages
13
14. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Pass Through Claims -
General Information
• J.L. Simmons v. United States – provides the definition of the
requirements of a liquidating agreement
• Case law varies among State courts
• Benefits of the Pass Through Claim
14
15. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
15
16. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
The Miller Act
• Basic Purpose – means for a subcontractor to receive payment for labor
and materials furnished Players
• Successful recovery of delay damages through the Miller Act
16
17. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
The Miller Act -
Recovering Delay Damages
• Generally recoverable if characterized as increased cost of labor and
materials – other costs have been successfully recovered
• Not relevant whether fault lies with the Owner of the Prime
• Seen as the only alternative in many cases for a subcontractor to recover
increased costs
17
18. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
The Miller Act -
Considerations & Recommendations
• Is a payment bond required?
• Was the payment bond actually attained?
• Timely initiation of a payment bond
• Limited liability by surety – multiple claimants may require each to take a
pro rata share of the penal sum
18
19. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
19
20. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
No Damage for Delay (NDFD)
• Basic Purpose – protects an owner or GC from paying monetary damages
when a project is delayed
• Sample Clause
“No payment or compensation of any kind shall be made to the contractor
for damages because of hindrance or delay from any cause in the
progress of the work, whether such hindrances or delays be avoidable or
unavoidable.”
20
21. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
No Damage for Delay - Enforceability
• Unenforceable in many states
• Established exceptions otherwise –
• (1) not contemplated by the parties;
• (2) so unreasonable in length as to amount to an abandonment of
the project by the Owner;
• (3) caused by acts of bad faith or fraud by the Owner; or
• (4) caused by active interference by the Owner.
• A fifth exception is also sometimes cited - delays caused by gross
negligence.
21
22. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
No Damage for Delay – Considerations
• Sometimes incorporated by reference or in a “Flow-Down” Provision
• May be defense for an owner when presented with a pass through claim
• Has been circumvented by use of a liquidating agreement as already
discussed
22
23. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
23
24. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Review and Negotiation of the Contract
• Timely Notice
• Waiver of Rights
• Good Documentation
• Involvement in the Baseline Schedule and Subsequent Updates
24
25. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Review and Negotiation of the Contract
• Subcontractor should
• Carefully review contract, especially from a legal perspective
• Assume any NDFD will be enforced
• Attempt to remove or reduce general assumption of delay risk
• Reduce to specific risks that are under sub’s control
• Watch for verbiage that limits recovery to “active interference”
only by Owner
• Attempt to include language that provides a “Grace Period” that
delays must exceed to allow an adjustment for delays
• Allows a contingency for that period to be carried
• Seek language related to specific events, proof required or price
25
26. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Timely Notice
• Assume that notice requirements will be enforced and meet them
• Keep the GC informed so he can inform the Owner
• Owner then has opportunity to participate in mitigation
• Owner must be made aware of delays contemporaneously
26
27. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Waiver of Rights
• Watch for waiver language
• Could be part of a payment application or certification
• Could be part of a change order indicating all past claims are
waived as of change order date
• Provide reservation of rights language to any document if
contemplating submitting a delay claim
27
28. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Good Documentation
• Key to proving damages
• Accurate and contemporaneous
• All documents including bid documentation, daily reports, pay
requisitions, invoices, correspondence, all input into baseline and
update scheduling process, minutes, resources both planned and
actual
28
29. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Involvement in the Baseline Schedule and Subsequent Updates
• Ensure input into all schedules
• Review any updates provided by GC to ensure no acceleration or
stacking of crews are planned
• Ensure adequate time and sequencing
• Note subcontractor’s expectations for period of performance
• Includes planned resources in crews and composition
• Stockpiling and materials distribution needs
• Watch for reduction in durations or overlapping of work
• Watch for shifts in start dates, access dates, or completion dates
• Document any problems with schedules
29
30. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Strategies for Proving a Subcontractor’s Delay Claim
• Involvement in the Baseline Schedule and Subsequent Updates
• Review total float for subcontractors’ work to identify criticality at
project schedule
• Attempt to have the impacts to the subcontractor shown on the
schedule
• If failed, document the delay or disruption
• Recognize that the Measured Mile is the most effective analysis for
loss of efficiency
• Requires good resource information
• Related to the schedule to prove impacted & unimpacted times
• Includes participation in any REAs submitted by GC – subcontractors
can lose their rights against the Owner if not involved with REAs
30
31. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Topics to be Covered
• Example
• Pass-Through Claims
• The Miller Act
• Combating the No Damage For Delay Clause
• Strategies for Proving a Subcontractor’s Delay Claim
• From the Owner’s Standpoint
31
32. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
From the Owner’s Standpoint
• Provide fair allocation of risk
• Assign risk to the party most able to control it
• This will reduce claims efforts
• Provide timely and fair review and approval of legitimate time extension
requests
• Follow the same general rules as outlined in the strategies for the
Subcontractor
• Should an Owner be able recover equivalent damages from a
Subcontractor due to Subcontractor impacts?
32
33. Can a Subcontractor Have a Critical Path Delay When the GC Does Not?
Conclusion
• Negotiate the Contract
• Know the Contract
• Be involved in the schedule from start to finish
• Maintain accurate documentation
• Seek legal advice
33
34. Can a Subcontractor Have a Critical Path Delay
When the GC Does Not?
Questions?
Shannon Campbell, PSP
Chris Carson, PSP