The document discusses different approaches to claims management in construction contracts. It describes observing two schools of thought within contractor organizations: a production side focused on execution and viewing contractual rules as hindrances, and a contracts department seeking opportunities to claim in order to recoup losses. The author reflects on behaving similarly as a young site manager and later as a claims manager focused on claiming. Through experience, the author's views have changed and the document shares lessons learned, advocating that contractors should always submit timely notices of claim when issues arise to protect their rights, rather than hesitating, as delayed notices can increase losses or result in lost entitlements. Effective claims specialists are important to properly support claims submissions and discussions should focus on notice timing rather than questioning
The Case for Standard Forms of Construction ContractTom Joseph Mukasa
A public lecture presentation on 8 July 2016 by Tom Joseph Mukasa, (sponsored by the Institution of Surveyors of Uganda) at Kyambogo University, Kampala - Uganda.
Top 5 Methods for Resolving UK Construction DisputesSarah Fox
According to the Arcadis Global Disputes Survey 2016, the average value of a construction dispute is near $46m and it takes over 16 months to resolve. This guide looks at your
five main options to resolve a dispute in the UK construction industry. It compares litigation (court proceedings), arbitration, adjudication, negotiation and mediation.
The author is Sarah Fox 500 Words Ltd and you can get regular tips for construction contracts to help you avoid disputes and the need for dispute resolution methods in her fortnightly tips sheet http://just500words.co.uk/signup.
SWOT ANALYSIS OF ARBITRATION AWARDS IN INDIAN CONSTRUCTION CONTRACTSIAEME Publication
Contract forms, terms, specification, analysis of rate and conditions of contract
are being followed by various governments departments in the field of civil
construction are not uniform. Against the backdrop of India’s burgeoning macroeconomic prospects, the weaknesses of the construction industry create challenges,
particularly with respect to settlement of disputes between the owner and contractor
that it will have to overcome. Arbitration awards have been studied and based upon
their analyses a series of survey questionnaire have been developed. The responses to
the above along with the gist of focused discussions and interviews with domain
experts forms the basis for SWOT analyses of arbitration awards.
Contract management_Infrastructure Engineering and Management (2170611) (Seme...A Makwana
A contract creates obligations. 'Performance' of contract means the carrying out of obligation under it.
The parties to contract must either perform or offer to perform their respective promises unless such performance is dispensed with or excused under the provisions of the Indian Contract Act or some law.
"Performance of contract" means fulfilling of their respective legal obligations created under the contract by both the promisor and the promisee.
The Case for Standard Forms of Construction ContractTom Joseph Mukasa
A public lecture presentation on 8 July 2016 by Tom Joseph Mukasa, (sponsored by the Institution of Surveyors of Uganda) at Kyambogo University, Kampala - Uganda.
Top 5 Methods for Resolving UK Construction DisputesSarah Fox
According to the Arcadis Global Disputes Survey 2016, the average value of a construction dispute is near $46m and it takes over 16 months to resolve. This guide looks at your
five main options to resolve a dispute in the UK construction industry. It compares litigation (court proceedings), arbitration, adjudication, negotiation and mediation.
The author is Sarah Fox 500 Words Ltd and you can get regular tips for construction contracts to help you avoid disputes and the need for dispute resolution methods in her fortnightly tips sheet http://just500words.co.uk/signup.
SWOT ANALYSIS OF ARBITRATION AWARDS IN INDIAN CONSTRUCTION CONTRACTSIAEME Publication
Contract forms, terms, specification, analysis of rate and conditions of contract
are being followed by various governments departments in the field of civil
construction are not uniform. Against the backdrop of India’s burgeoning macroeconomic prospects, the weaknesses of the construction industry create challenges,
particularly with respect to settlement of disputes between the owner and contractor
that it will have to overcome. Arbitration awards have been studied and based upon
their analyses a series of survey questionnaire have been developed. The responses to
the above along with the gist of focused discussions and interviews with domain
experts forms the basis for SWOT analyses of arbitration awards.
Contract management_Infrastructure Engineering and Management (2170611) (Seme...A Makwana
A contract creates obligations. 'Performance' of contract means the carrying out of obligation under it.
The parties to contract must either perform or offer to perform their respective promises unless such performance is dispensed with or excused under the provisions of the Indian Contract Act or some law.
"Performance of contract" means fulfilling of their respective legal obligations created under the contract by both the promisor and the promisee.
Construction disputes arise from environmental and behavioural factors. There are many different causes of disputes in the construction industry. Disputes waste money, therefore drain profits and destroy the relationship and it takes energy away from projects.
construction dispute cases
construction dispute lawyer
construction disputes statistics
construction dispute letter
causes of disputes in construction
construction disputes attorney
construction dispute resolution services llc
homeowner vs contractor disputes
building construction ppt
construction ppt presentations
Construction industry disputes are frequently arbitrated rather than litigated.This presents general information and common considerations when considering the use and application of arbitration to resolve construction and design deficiency claims. From a Hawaii business focus.
10 Essentials For An Effective Construction ContractSarah Fox
An overview of the 10 aspects every contract for a construction works package (however large or small) needs to include to make it an effective tool.
These 10 essentials are the foundation to the 500-Word Contract (TM), developed as a basis for construction contracts in England/Wales. They are also a checklist for your own terms and conditions.
For more information go to www.500words.co.uk or send Sarah an email sarah@500words.co.uk
Your Construction Subcontract. The 23 Points That Matter MostAlex Barthet
Construction contracts in Florida can be especially tricky to navigate. A subcontract is no exception; learn the fundamentals, it could save you a lot of money.
Running Head ELEMENTS OF A CONTRACT 1 .docxtodd271
Running Head: ELEMENTS OF A CONTRACT
1
ELEMENTS OF A CONTRACT
6
Elements of a Contract
BUS 670 Legal Environment
12/11/17
Elements of a Contract
A contract of employment refers to the agreement between the employer and employee that forms the basis for an employment relationship. In most cases, a contract takes effect as soon as an employee employment offer is accepted. By starting to work ideally demonstrates that the employee has accepted the employer’s terms and conditions bade. However, an existing employment contract can only be varied with the understanding of both parties. To grasp entropy behind varying or changing a contract.
Contract cancellation occurs when either party involved ends a contract supposedly for a violation by the other. The party that cancels that contract retains any remediation for the violation of the contract. When one party breaches the terms and conditions of the signed contract, the other concerned party bears the right to cancel. As such, the integral contract may be rolled down, refunding of previously payments and ending any remaining obligations. Contract termination falls out when either party involved ends a contract in other respects prior to a breach as perceived by the scenario.
With this integral occurrence, any components of a contract that had initially to be accomplished will be left behind, but any future obligations that are not yet carried out will cease. However, like the binding of the contract, the requisite elements of contract terms that must be established in order to demonstrate the legal formality for the process involves; offer, acceptance, consideration, mutuality of obligation and competency (Tepper, 2014).
About to offer, it is crucial to check out the terms and conditions of the agreement of a termination or rescission clause. Recession basically relates to the act of rescinding; the cancellation of a contract and the return of the parties to the positions they would have had if the contract had not been made (Morawetz, 1925). Some contractual agreements might automatically terminate the contract after a fixed event or term while some can be canceled officially without the permission of another party. If the contractual agreement is arranged to terminate within the near future, then one might only allow the contract to lapse. All the same, if the contract agreement has a friendly rescission clause, then contract termination may not be of the essence.
Following the apprehension of the terms and condition, one is thereby expected to verify whether the agreement is accorded a notice provision. Much of contractual agreements require that all established correspondence among the parties involved be executed through communication in writing. Set off the address of o.
Aspects of contract and negligence for businessNovoraj Roy
Law identified with business can be finished up as all the law which applies to the rights,
relations and behavior of people and organizations occupied with trade, marketing, exchange,
and deals. This report calls attention to the Essential Elements required for the Formation of a
contract, the distinctive sorts of agreements and their effects.
For General Information Only Owners of Single Family Residences in California Only. Typically, before a general contractor starts “on the road” to completion of a major reconstruction project based on design documents an architect has prepared, several contracts that should lay out the “rules of the road” to project success have already been signed. A number of events that usually arise during a repair process can have significant impact on an owner can occur without an agreement prepared by counsel.
Construction disputes arise from environmental and behavioural factors. There are many different causes of disputes in the construction industry. Disputes waste money, therefore drain profits and destroy the relationship and it takes energy away from projects.
construction dispute cases
construction dispute lawyer
construction disputes statistics
construction dispute letter
causes of disputes in construction
construction disputes attorney
construction dispute resolution services llc
homeowner vs contractor disputes
building construction ppt
construction ppt presentations
Construction industry disputes are frequently arbitrated rather than litigated.This presents general information and common considerations when considering the use and application of arbitration to resolve construction and design deficiency claims. From a Hawaii business focus.
10 Essentials For An Effective Construction ContractSarah Fox
An overview of the 10 aspects every contract for a construction works package (however large or small) needs to include to make it an effective tool.
These 10 essentials are the foundation to the 500-Word Contract (TM), developed as a basis for construction contracts in England/Wales. They are also a checklist for your own terms and conditions.
For more information go to www.500words.co.uk or send Sarah an email sarah@500words.co.uk
Your Construction Subcontract. The 23 Points That Matter MostAlex Barthet
Construction contracts in Florida can be especially tricky to navigate. A subcontract is no exception; learn the fundamentals, it could save you a lot of money.
Running Head ELEMENTS OF A CONTRACT 1 .docxtodd271
Running Head: ELEMENTS OF A CONTRACT
1
ELEMENTS OF A CONTRACT
6
Elements of a Contract
BUS 670 Legal Environment
12/11/17
Elements of a Contract
A contract of employment refers to the agreement between the employer and employee that forms the basis for an employment relationship. In most cases, a contract takes effect as soon as an employee employment offer is accepted. By starting to work ideally demonstrates that the employee has accepted the employer’s terms and conditions bade. However, an existing employment contract can only be varied with the understanding of both parties. To grasp entropy behind varying or changing a contract.
Contract cancellation occurs when either party involved ends a contract supposedly for a violation by the other. The party that cancels that contract retains any remediation for the violation of the contract. When one party breaches the terms and conditions of the signed contract, the other concerned party bears the right to cancel. As such, the integral contract may be rolled down, refunding of previously payments and ending any remaining obligations. Contract termination falls out when either party involved ends a contract in other respects prior to a breach as perceived by the scenario.
With this integral occurrence, any components of a contract that had initially to be accomplished will be left behind, but any future obligations that are not yet carried out will cease. However, like the binding of the contract, the requisite elements of contract terms that must be established in order to demonstrate the legal formality for the process involves; offer, acceptance, consideration, mutuality of obligation and competency (Tepper, 2014).
About to offer, it is crucial to check out the terms and conditions of the agreement of a termination or rescission clause. Recession basically relates to the act of rescinding; the cancellation of a contract and the return of the parties to the positions they would have had if the contract had not been made (Morawetz, 1925). Some contractual agreements might automatically terminate the contract after a fixed event or term while some can be canceled officially without the permission of another party. If the contractual agreement is arranged to terminate within the near future, then one might only allow the contract to lapse. All the same, if the contract agreement has a friendly rescission clause, then contract termination may not be of the essence.
Following the apprehension of the terms and condition, one is thereby expected to verify whether the agreement is accorded a notice provision. Much of contractual agreements require that all established correspondence among the parties involved be executed through communication in writing. Set off the address of o.
Aspects of contract and negligence for businessNovoraj Roy
Law identified with business can be finished up as all the law which applies to the rights,
relations and behavior of people and organizations occupied with trade, marketing, exchange,
and deals. This report calls attention to the Essential Elements required for the Formation of a
contract, the distinctive sorts of agreements and their effects.
For General Information Only Owners of Single Family Residences in California Only. Typically, before a general contractor starts “on the road” to completion of a major reconstruction project based on design documents an architect has prepared, several contracts that should lay out the “rules of the road” to project success have already been signed. A number of events that usually arise during a repair process can have significant impact on an owner can occur without an agreement prepared by counsel.
Top 20 Standard Contract Clauses Every Manager Should KnowSHAZEBALIKHAN1
A contract is the project bible. It includes several clauses that explain the terms and conditions. The article enlists 20 such clauses that are common and a part of every contract.
Mihaela Vulpescu, Manager of Contracts Department - "Early warnings";
Cristina Pirjan, Senior QS Advisor - "Claims at termination under FIDIC 1999 Sub-Clauses 16.4 and 19.6 of the Contract"
FIDIC-ACEG European Regional Infrastructure Conference, 6-7 March 2018, Tbili...Cerasela Angelescu
All the parties involved in a contract will wish for the respective project to be successful. Therefore, understanding that it takes not only a fair and balanced contract which sets out the roles of the parties, but also mechanisms which will ensure that the issues which may arise will be dealt with promptly and fairly, proactively identifying options and solutions to challenges, the International Federation of Consulting Engineers (FIDIC) and the Georgian Association of Consulting Engineers (ACEG) have organized the FIDIC-ACEG European Regional Infrastructure Conference in Tbilisi, Georgia, 6/7 March 2018.
In this issue:
Planning for Adverse Weather – p.1
Sorin Ghiuta, Senior Planning Engineer
Termination of the Contract: A means to an end or an end to the means? – p.3
Radu Giumanca, Senior Contracts Manager
Changes in legislation and claims pursuant to FIDIC Sub-Clause 13.7 – p.5
Flaviu Rusu, Quantity Surveyor
Our employees are our most valuable asset! – p.8
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
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Improving profitability for small businessBen Wann
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
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1. To claim or not to claim, that is the question
Giovanni Rigoni
Claims Manager & Head of Contracts
Department International
To claim or not to claim, that is the
question
Giovanni Rigoni
Claims Manager & Head of Contracts
Department International
Loss of efficiency claims
Violeta Dinu
Technical Director & Manager
of QS and Quantum
Department International
executed superstructures, etc., within the
time for completion, while on the other,
the contract management novel approach
which did take any opportunity to raise
contractual awareness regarding matters
for which the contractor did not bear
responsibilities and for which it would
have been entitled to claim for time and
moneythereof.
Frequently these different and separated
schools of thought were in a type of
hidden conflict between themselves, thus
often causing further problems, loss and
possible damage to the entire project and
not only to the contractor itself. As it is
widely and well known, any conflict
involves losses to both parties, whether
winnerorloser.Forthisreason,itwouldbe
of paramount importance to resolve
conflict in the shortest time possible,
hence avoiding increasing loss and
damage as time passes by and matters
escalatetolegalramifications.
Whilst working as a contractor's repre-
sentative, I observed both contractor's
behaviours, like pertinaciously chasing
production at all costs by trying avoiding
conflict with the Engineer and, conversely,
almost desperately searching for any
opportunity to claim in order to fill the
gap created by a very keen tendering
approach, irrespective of the con-
sequences to the on-site operations and
the works actually executed. In all
honesty, I often found myself behaving in
thesameway.
Like doubtful Hamlets, contractors are
often faced with the following recurring
dilemma: when an excusable event occurs
on site, whether to either serve notice of
claim to the engineer, or to try to reach an
agreement with him/her on a possible
solutionwithoutstartinganargumentthat
could most likely lead to a dispute and an
endlesslitigation?
Inmyworkingexperienceasacontractor's
representative and as a consultant in the
construction field/industry spanning over
35 years, I often had the opportunity to
observe two different and separate
schools of thought within the contractor's
organisations that may be summarized as
follows: on one hand the production and
productivity side and old school, which
handled the execution of the works and
which considered the contractual rules
almost a sort of hindrance to its goal to
ensureoptimumresultsintermsofvolume
of executed earthworks, square meters of
Issue 13, December 2017
5
7
2. scope of their contract agreements, while
instead they should execute and complete
the subject matter of their contracts and
projects, in the most favourable and timely
manner for the benefit and in favour of
common will of the parties enshrined
withinthecontract.
Notwithstanding a widespread perception
to the contrary between those within the
construction industry, the word 'claim' and
the verb 'to claim' do not imply any kind of
negative or insidious meaning or
behaviour, which sadly employers,
engineers and even contractors sometime
failtounderstand.
A claim is an assertion of a party, supported
by evidence, stating that, in its opinion,
something did not work as it was provided
for or it has been done in a different way in
respect of how it was foreseen, thus
causing consequences and entitling the
claimant to relief as detailed and
substantiated by a claim.
According to the wording of most forms of
contract, to claim is a right that any party to
a contract should have. Such right may be
asserted, in case any kind of event occurs,
whichisnotanticipatedandprovidedforby
the contract, and therefore requires
corrective action to allow the claiming
party to correctly proceed with the
execution of its contractual obligations,
expeditiously and without further delays
and to avoid the responding party incurring
more grave consequences caused by the
event, whether the corrective action is not
timelyappliedornotappliedatall.
provides for all the aspects of the agreed
collaboration without contradictions,
ambiguities,oversightsandinaccuracies.
My reasoning applies more so to public
works tenders and contracts thereof,
where the possibilities of negotiating the
terms and obligations imposed within
these mostly considered as adherence
contracts,areindeedalmostnon-existent.
Contractors should understand that the
tender process is a free interaction
between those soliciting the tender,
namely the client or the contracting
authority, and those who decide to submit
their tender, namely the contractors. The
submission of a tender is a free decision
taken by the contractor and it should be
fully aware of what it is tendering for and
that is therefore understood that minimal
negotiation would be allowed and
undertaken before the conclusion of the
contract.
As tenders in the construction industry
often concern complex projects, the
parties should accept the fact that their
concluded contracts after award, may be
imperfect, thus comprising grey areas
where more than one interpretation of the
contract's provisions, terms and
obligations therein may apply. The parties
should be prepared and open to
discussionsaboutabettercourseofactions
to be undertaken for the benefit of the
project, as opposed to spending time and
money accusing each other of all types of
non-compliance and defaults, with the
result of losing focus and sight of the main
When I was a young site manager on
important projects due to be completed
within a certain time, I was mostly devoted
to achieve maximum production, yet by
ignoring that each of my actions on site had
contractual implications, and by
considering the warnings from my contract
managers as pure theory based on empty
words and creation of useless paperwork,
the called 'site records', which could have
diverted my site personnel from their main
scope, i.e. to produce as much as possible
atalltimes.
Later in my career, while acting as a
contract manager and while devoting my
time to the study and interpretation of
contract clauses and the content of the
contract documents, whichever type they
were, I was tempted to claim by taking
advantage of any opportunity the contract
as a whole would give me, and mostly
because I considered back then most of the
engineer's actions wrong most of the time,
because in my mind - on most projects - I
considered the Engineer inadequately
experienced and as having the pre-
conceived attitude to act against the
contractor, and that for these reasons he
did not deserve the respect of the position,
while I was essentially wholly focused on
mymaingoaltoclaim.
With the passing of time and gaining of
experience, I have changed my under-
standing of the contractual rules and my
attitude toward contract management and
the Engineer. Through this article I will
share some of my seasoned beliefs, hoping
that what I have achieved, mostly as
consequence of my mistakes and at times
one-sided ill-thought positions, will be
usefultothosereadingit.
Common sense suggests that when two
parties agree to a contract they should
comply with the terms and obligations that
they have negotiated and agreed upon for
their collaboration. However, when the
scope of the contract becomes complex
and the provisions therein, which were
intended to regulate the parties' actions,
become too onerous as a consequence, the
relations between the parties become
difficult. In these circumstances, it is almost
impossible to have a contract, which
Issue 13, December 2017
3. Asmentionedabove,therighttoclaimisa
right under most bilateral contracts, but I
wouldnothesitatetostatethattoclaimis
the duty of a party that has the obligation
to report any event, hindrance and incon-
sistencies it would face while performing
its duties under the contract, and any
problems that could create loss and
damage to the other party, if these were
nottimelynotifiedandeventuallysolved.
To avoid notifying claims when an
excusable event occurs is like hiding the
newly formed dust with the broom under
the carpet. The dust will reappear as soon
as the cleaning is done with greater care
andsomeoneliftsthehemofthecarpet.
Parties to a contract should always
consider that any delayed notification of
an event of risk, involving a consequent
submission of a claim, may have two
equally serious consequences: i) the
probable increase in the loss or damage
for the party receiving the notice due to
and apply, contain mainly all the possible
formalities that should be complied with
for a claim to be submitted in a timely
manner. These formalities have been
refined and developed over the years in
order “to reduce disputes and indeed
litigation” as stated by the so called
experts,whoonavoluntarybasisacceptto
write forms of contract, setting tighter
times for notification, providing for an
ever-increasing number of documents to
be prepared in support of the notification
itself, rather than detailing the rules for the
analysis of the subject matters of
complaints/claims and the definition of
their possible solutions, thus limiting the
possibility of further manipulation of the
dispute resolution clauses. But this is also
another aspect that may deserve further
considerationaspartofafuturearticle.
ComingbacktoourHamlet-likecontractor,
what may we suggest to solve this terrible
dilemma, which unfortunately is very real
even nowadays?
In principle, serving a notice of claim should
be intended as an exercise of one party
common sense and due process while
respecting the contract, and I personally
consider it unwise to understand/believe
that a notice of claim should be intended as
an act of hostility against the other party;
serving notices of claim is the action of
raising a hand because something has
happened, or does not work properly or as
itwasintendedtowork.
I may certainly assert that during my
professional experience, the events, and
relevant notices I had the opportunity to
analyse, which subsequently led to a
submission of a claim, were in large part
genuine technical events that objectively
prevented the contract and project from
being properly carried out. In most of these
cases the negative reaction of the party
who received the notice of claim has been
the reason that turned a technical problem
into a dispute and later in litigation, in some
cases even bitter litigations, while instead -
in most of the cases - the issue could have
been easily solved, without exorbitant
costs, just by the correct application of the
rules of the contract and a genuine
approachtocollaboration.
Quiteoften,themissedopportunitytotake
the corrective action in a timely manner
depends on the fact that those who receive
the claim, and would have the duty to
decide about the possible solutions,
focused only on a thorough criticism of the
wording of the complaint itself, in certain
cases reacting as if they were offended by
the other parties action, rather than to
undertake an objective analysis of the
subject matter of the complaint or claim in
order to understand the reasons for its
submission. It is depressing at times to read
some engineers' answers to notices of
claims, whereby they “reject” the notice
before the ensuing claim is even submitted,
without any kind of analysis on the merit
and in blatant breach of contract
obligations and indeed of natural justice.
But this is another aspect that I could
consider as the subject matter of a future
article.
As a matter of fact, almost all forms of
contractthatI had the opportunityto study
Issue 13, December 2017
3
4. submissions always. It goes without
saying, with attentive care for the statute
of limitation, and not only to the
substance; a claim is a right that needs to
be pursued with the respect of the
contractandpresentedtotheotherparty
accordingly, for it to be acknowledged as
rightful under the contract and at law and
to avoid painful and expensive loss of
rights.
Managers and representatives res-
ponsible for decisions concerning the
opportunity when to submit notices of
claim,shouldconcentrateontherequired
timingforsubmission,leavingtheonusto
better argue and prove the contractor's
rightsandentitlementsthereof,basedon
adequate methodologies, to the
specialists and experts in the field. The
contractor's strategic issue must always
focus on time of submission of notices
andinthatregard,itisalwaysadvisableto
consult with reputable specialists and
experts in this field who can provide
contractors with suitable support and
advice. The selection of suitable claims
specialists and experts is crucial for the
positive resolution of claims through the
required determination procedures
underthecontract.
disastrous loss of rights that may not be
claimedlateron.
It is evident that the substance, as well as
the form of any claims, must be treated in a
careful way, taking care of both the quality
of the argumentation and the language
used. Evidence needs to be carefully
collected and submitted to whoever
oversees the review and the decision
concerning the resolution of the claimed
issue. However, no doubts should arise
regarding the opportunity to submit
noticesandensuingclaims.
In conclusion, I have no doubt in asserting
that when an event affecting the proper
performance of any contractual obligation
and the works occurs, the contractor
should always submit a notice of claim
timely and in accordancewith the contract,
which should be followed by detailed
interim claims later, and completed by the
proper, complete and final submission of
the claim once the effect of the event
giving rise to the claim will have ended and
the relevant implications would be
thoroughly known. The discussions on the
reasons about the opportunity when to
notify and then claim should only be
confinedtotheappropriatetimingofthese
the delay in promptly defining and
instructing the actions to remedy the risk
on one hand, or/and ii) the loss of the right
to the acknowledgment of the loss or
damage due to the rules of limitation, both
under the contract and at law, for the party
submittingtheclaim.
The contractor should therefore never
doubt or hesitate about the decision
whether to serve notice of claim or wait.
When the circumstances arise, it should
always submit such a notice within the
time provided for by the contract. The
contractor should always consider that it
needs to ensure that its rights are not later
denied/lost by the ever-tighter conditions
stipulatedbycontractsnowadaysand/orby
intervenedlimitationatlaw.
In such circumstances, the Contractor's
attention must always be directed to the
manner of submitting its reasons for the
notice, both regarding the wording used
and the submission time of a claim. The
Contractor should avoid wasting time and
resources in discussing the opportunity to
submit notices of claim. If in its opinion the
reasons for submission are contractually
valid, there is no doubt that any hesitation
in taking the action may result in a
Issue 13, December 2017
4
5. in advance, hence adequate forewarning
implies proper cost record keeping and the
acceleration ascertainment becomes a
functionofanalysingthoserecords.
MethodsofEvaluation
Numerous methods exist to calculate loss of
labour and equipment productivity, and
although no method is generally accepted,
some are preferred over others. There are
two groups of methods used to measure
disruption, the first involves measurement of
productivity and the second is based on
examinationofactualcosts.
Group 1 of methods for disruption
calculations:
1. Measured Mile;
2. Industry Standards;
3. Comparison with similar projects;
4. Productivity analysis.
Group 2 of methods for disruption
calculations:
5. Total Cost Method;
6. Modified Total Cost Calculations.
The methods for measuring disruption are
often particular to each individual project,
and it is not as easy as choosing the ideal
method from a predetermined list in most
cases. This means that, for example in a
project where the work varies, plus the
change in the circumstances in which the
execution took place, there may be no
alternative but to examine and compare
actual against planned costs. There is a fair
amount of academic literature from the USA
and the UK which addresses the evaluation of
disruption costs, however, much of the
commentaries I refer to herein after focus on
the disruptive effect of Change Orders (i.e.
client/owner/employer-ordered variations to
the works). These represent limited
circumstances and unfortunately the
availability of methods for disruption
calculation is down to the least accepted
method, the total cost approach, which is a
lastresortmethod.
Violeta Dinu
Technical Director & Manager of QS and
Quantum Department International
Loss of efficiency claims
Definitions
The disturbance of the contractor's planned
construction activities and progress with
resulting loss of productivity, causing
additional cost/expenditure for labour and
equipment, but rarely materials, has been the
industry wide accepted plain description of
the phenomenon called disruption. This is a
head of claim occurring and made when there
has been delay to completion or disturbance
of the contractor's physical and financial
progress, even though the ultimate delay to
completion would be minimal or non-critical.
Disruption may consist of the sort of delay
events, which would be typically ignored by
project managers in the initial stages of the
works, and even later, because ostensibly
they would appear as causing no tangible
delay effect on the completion date if non-
critical trade[s] or element[s] was/were
delayed, albeit later there would have been
recorded financial losses, due to the
engagement of resources on non-critical
paths of the works, for longer periods than
necessary/planned. Indeed, to maintain the
schedule, non-critical work may often be
delayed, truncated, carried out in other more
difficult ways and generally subjected to
uneconomiceffects.
Disruptionisnotdelay
As with the word “delay”, “disruption” is a
comparative term that has no intrinsic
meaning except by reference to a standard of
performance against which it can be
measured. In construction and engineering
contracts, disruption is the difference
betweenanintentionandrealityaspertaining
to productivity, where the reality is a
derogation from the intent. Disruption is not
delay, although disruption may cause delay,
and it may be caused by delay, delay is not a
precondition of disruption, and, indeed
disruption may occur when the progress of
the works is not only delayed but when it is in
fact accelerated, whereby acceleration may
indeedmeandisruption.
Disruption to construction work may lead to
late completion of the work, but not
necessarily so. It is possible for work to be
disrupted and for the project works still to
finish by the contract completion date. In this
situation, the contractor will not have a claim
foranEOT,butitmayhaveaclaimforthecost
of the reduced efficiency of its workforce and
equipment.
Disruption claims, comparatively with other
types of claims, are harder to detect, prove
and measure for many reasons. First of all,
they are usually not promptly detected by the
contractor until much later, and for those
responsible for substantiating claims to
recover the financial ill-effects, it is a
comparative process which relies and makes
reference to some pre-defined cost/value
reportsandadequatecontemporaryrecords.
Acceleration claims, on the contrary, may be
easier to measure, if they are managed
properly, because they are usually instructed
Issue 13, December 2017
5
6. burden of showing the extent of the delay,
that the delay was caused proximately by the
employer's action, and that the delay caused
lossand/ordamagetothecontractor.
Anotherimportantstatementinthiscourttrial
was: “While the law requires reasonable
certainty to support a damages award,
damages do not need to be proven with
mathematical exactness. Rather it is sufficient if
aclaimantfurnishesthecourtwithareasonable
basis for computation, even though the result is
onlyapproximate.”
Theconstanttendencyofthecourtsistofinda
suitable manner in which losses and/or
damagescanbeawardedwhereandifawrong
has been done. Difficulty of ascertainment is
not to be confused with the right of recovery.
Nor does it exonerates the defendant of his
misconduct, which has made the inquiry into
the question of harm necessary, rendering
that inquiry even more difficult to determine.
The defendant who has wrongfullybreached a
contract should not be permitted to gain an
unfair advantage from his own wrong by
insisting on proof, which due to its breach is
unobtainableorverydifficulttoprove.
Multiple change orders on a construction
project can potentially be accommodated if
the employer acknowledges that additional
time and money will be required, and if the
parties carefully plan the sequencing of the
changed work. However, if the owner
/employer, as here, denies the additional time
or money to perform changed work, but
nevertheless continues with the flow of
issuing change orders to the contractor, a
chaoticprojectwillinevitablybetheresult.
Thefactualevidencepresentedinthistrialwas
supportive of the disruption analyst's
conclusions that 25 percent of Bell's labour
hours were attributable to employer's
changes. The court found the analyst's
estimate to be reasonable when considering
the number of changes, the amount of
replacement of previously completed work,
and the overall deteriorated project
environment. The court awarded Bell's
cumulative impact claim for the amount of
$2,058,456.
records. None of the various alternative
methods to evaluate disruption, identified by
academic studies in the industry, offer
complete answers to the problems raised
hereinabove.
Sources: article “Evaluating Disruption Costs
on Major Construction Projects”, by
Christopher Ennis, SCL, July 2011, & “Delay and
Disruption in Construction Contracts” by Keith
Pickavance,2005
Case law: BELL BCI COMPANY vs THE UNITED
STATES (April 2008) – An award for cumulative
impactorlabourinefficiencyclaim
Onthis$63.6millionproject,the$21.4millionin
change orders increased the Contract price by
34 percent. Changes of this magnitude are
unusualforbuildingconstructionprojects.The
approximately 700 variations affected every
floor of the project. To determine the
cumulative effect of the changes, the
disruption analyst compared actual hours
incurred on the project against the originally
planned hours, to calculate unearned hours
attributable to the changes. It was found that
25% of Bell's total hours expended on the
project were attributable to labour produc-
tivity loss caused by the changes. The Court
accepted that Bell's original estimate for the
project was reasonable, as Bell was not the
lowestbidderfortheproject.
The award for BELL 's claim for damages from
delay and cumulative impact on the project is
sometimes called a “delay and disruption”
claim, wherein a distinction in the law is made
between (1) a “delay” claim, and (2) a
“disruption” or “cumulative impact” claim.
The Court described the difference as follows:
“Although the two claim types often arise
together in the same project, a “delay” claim
captures the time and the cost of not being able
towork,whilea“disruption”claimcapturesthe
costofworkinglessefficientlythanplanned”.
A disruption claim compensates for losses
and/or damages when the work is deemed
more difficult and/or expensive than
anticipated. The contractor must prove for
either claim the elements of liability, causation
and resultant injury. When the contractor is
asserting a delay claim, the contractor has the
TheTotalCostApproach
This section will take on the challenge of
examining the least widely accepted method
to calculate decreased labour and equipment
productivity. Under the total labour method,
decreased labour productivity is calculated by
subtracting the estimated cost of performing
the work from the actual cost of performance.
The pre-requisites or the assumptions of the
method'sadoptionareasfollows:
1. The cumulative effect of the changes in the
scopeofworkcannotbedisentangledtoshow
causation,liabilityandrecoverabilityinslices;
2. Theoriginalbidfortheworkwasreasonably
established;
3. The contractor's actual costs were
reasonable;
4. The contractor was not responsible for the
additionalexpenses/costs.
Each of the four elements above must be
present before a total cost calculation is
justified. Recently, the total cost method
appeared to be gaining acceptance by courts
and boards, especially at the state level and by
arbitrators and juries. Where there is a
multiplicityofcauses,suchasahighnumberof
Change Orders and varied work recorded, the
contractor or claimant will often resort to the
rolled-up methodology in efforts to measure
loss arising from disruption, and such claims
are likely to suffer from criticism as to said
method and the assumptions underlying such
anapproach.
The greater number of changes to the initial
scope of work, the more there are likely to be
unmeasured and unquantifiable effects in all
areas of project costs, including supervision,
and on other operations where specific
disruption caused by identifiable employer-
responsible events has not been observed by
thoseatsitelevel,andwhichwillnotfeatureas
discrete heads of claim. In the circumstances,
arguments based on a cumulative disruption
areattractivetoaclaimant.
Most relevantly, record keeping challenges
ensuing from the great number of disruption
causes, make the situation even harder in
quantifying losses, because it becomes much
harder to maintain comprehensive accurate
6
Issue 13, December 2017