Training Seminar Information

PREVENTION AND RESOLUTION OF ENGINEERING AND CONSTRUCTION CLAIMS THROUGH EFFECTIVE CONTRACTING, CONTRACT ADMINISTRATION, PROJECT CONTROLS, AND PROJECT MANAGEMENT

A TRAINING SEMINAR

For information regarding this Training Seminar,
Please contact Richard J. Long. P.E. at (303) 972-2443.

Table of Contents (Click on each section to review topics)

SECTION I - WHY CLAIMS OCCUR-THE RED FLAGS
SECTION II - CLAIM TYPES
SECTION III - CONTRACT CLAUSES
SECTION IV - DOCUMENTATION
SECTION V - SCHEDULING AND DELAY ANALYSIS
SECTION VI - QUANTIFICATION OF DAMAGES
SECTION VII - CLAIMS PREVENTION
SECTION VIII - DISPUTE RESOLUTION
SECTION IX - CASE STUDY

SECTION I - WHY CLAIMS OCCUR - THE RED FLAGS

1.0 Introduction

2.0 Characteristics of a Highly Impacted Project

3.0 Effect on Project Costs

4.0 Situations Causing Costly Claims
4.1 Contractor Practices That Cause Claims
4.2 Owner Practices That Cause Claims
4.3 Causes Associated With The Contract Documents
4.4 Causes Associated With Contract Awards
4.5 Causes Associated With Contract Administration
4.6 Causes Associated With Claim Settlement Procedures And Practices

5.0 The Court's View of Contract Interpretation

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SECTION II - CLAIM TYPES

Introduction

1.0 Acceleration
1.1 Types of Acceleration
1.2 Key Elements Required By The Courts
1.3 Contract Provisions
1.4 Identifying Acceleration Using the Project Schedules
1.5 Documenting Acceleration Evidence
1.6 Damages

2.0 Acts of God/Weather
2.1 Acts of God
2.2 Unusually Severe Weather
2.3 When Weather Cannot Be An Entitlement
2.4 Contract Provisions
2.5 Analysis of Weather Delays
2.6 Sources of Weather Data

3.0 Cardinal Change
3.1 The Evolution of Federal and State Law Pertaining to Cardinal Change
3.2 Factors Used to Determine If a Cardinal Change Has Occurred
3.3 Conclusion

4.0 Constructive Change
4.1 Types of Constructive Change
4.2 Problems Establishing Entitlement
4.3 Case Examples
4.4 Conclusion

5.0 Defective and Deficient Contract Documents
5.1 The Spearin Doctrine
5.2 The Owner's Defenses Against Spearin
5.3 Options for Mitigation

6.0 Delays
6.1 Overview
6.2 Types of Delay
6.3 An Overview of Excusable Delays
6.4 Excusable Noncompensable Delays
6.5 Excusable Compensable Delays
6.6 Nonexcusable Noncompensable Delays
6.7 Concurrent Delay
6.8 The "No Damages For Delay" Clause
6.9 Getting Around The "No Damages For Delay" Clause
6.10 Right To Early Completion
6.11 CPM Scheduling

7.0 Differing Site Conditions
7.1 Contractual Representations
7.2 Type I and Type II Differing Site Conditions
7.3 The Contract Absent a DSC Clause
7.4 Owner Defenses
7.5 Examples of DSC Cases
7.6 Conclusion

8.0 Directed Change
8.1 Changes Clauses
8.2 Failure To Provide Notice
8.3 Failure To Secure Written Change Order
8.4 Change Order Acceptance Absent Reservation of Rights
8.5 Summary

9.0 Disruption
9.1 Delay vs. Disruption
9.2 Types of Disruption
9.3 Effects of Disruption

10.0 Implied Warranty
10.1 Implied Warranty of the Design
10.2 Implied Warranty Not To Delay Or Hinder Performance
10.3 Implied Warranty To Coordinate Other Contractors

11.0 Impossibility of Performance
11.1 Physical Impossibility
11.2 Economic Impossibility
11.3 Economic Hardship
11.4 Assumption of Risk
11.5 Remedy
11.6 Summary

12.0 Maladministration
12.1 Constructive Change
12.2 Third-Party Interference
12.3 Failure To Assign Work
12.4 Overzealous Inspection
12.5 Failure To Coordinate
12.6 Restriction of Work Hours
12.7 Failure to Direct
12.8 Contractor's Remedies

13.0 Owner-Furnished Items
13.1 Delay Under the Changes Clause
13.2 Delay Under the Furnished Property Clause

14.0 Strikes
14.1 History
14.2 Unfair Labor Practice Strike v. Economic Strike
14.3 Entitlement
14.4 Contractor's Defense
14.5 Conclusion

15.0 Superior Knowledge

16.0 Suspensions
16.1 Types of Suspensions
16.2 Typical Contract Provisions
16.3 Summary

17.0 Termination
17.1 Termination For Default
17.2 Termination For Convenience

18.0 Unjust Enrichment
18.1 Definitions And Example
18.2 Express Contracts
18.3 Quasi-Contracts Or Contracts Implied In Law
18.4 Obstacles
18.5 Conclusion

19.0 Variations in Quantities

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SECTION III - CONTRACT CLAUSES

1.0 Know Your Contract
1.1 What Is A Contract?
1.2 The Basic Rules Of Interpretation
1.3 The Ambiguous Contract Term
1.4 The Parole Evidence Rule
1.5 Contract Modification
1.6 Course Of Dealing
1.7 Custom And Usages In The Industry
1.8 Implied Contract Terms
19 General Terms In Contract Yield To Specific Terms
1.10 Expression Of One Thing In A Contract Is Exclusion Of Another
1.11 Contract Terms Are Enforceable
1.12 The Ten Commandments Of Contract Interpretation

2.0 Specific Contract Clauses
2.1 Problem Clauses
2.2 Other Contract Cautions
2.3 Oral Modifications
2.4 Adequacy Of Design
2.5 Flow Down Clauses

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SECTION IV - DOCUMENTATION

1.0 Introduction

2.0 How to Document
2.1 Document Facts Not Feelings
2.2 Satisfaction Of The Contract Notice Requirements Need Not Be Overly Legalistic Or Antagonistic
2.3 "Confidential" Memos Are Not Necessarily Confidential
2.4 Beware Of The Internal Memo
2.5 Some Words And Phrases Should Never Find Their Way Into Your Internal Documents

3.0 What to Document
3.1 Pre-Contract Documents
3.2 Contract Documents
3.3 Correspondence
3.4 Contemporaneous Records
3.5 Schedule Information
3.6 Cost Data
3.7 Summary Of Documents

4.0 Records Management Checklist

5.0 Configuration Management
5.1 System Identification And Definition
5.2 Change Control
5.3 Configuration Status Accounting
5.4 Summary

6.0 Notice Letters

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SECTION V - SCHEDULING AND DELAY ANALYSIS

1.0 Introduction

2.0 Evolution Of Scheduling Methods
2.1 Bar Charts
2.2 Arrow Diagrams And I-J Networks
2.3 Precedence Diagram Networks
2.4 CPM Updates
2.5 The Critical Path

3.0 Planning Tool Versus Retrospective Analysis
3.1 Planning A Project
3.2 Retrospective Schedule Delay Analysis

4.0 Contract Provisions Affecting Schedule Preparation And Updates
4.1 Bar Charts Or CPM?
4.2 ADM Or PDM
4.3 Work Scope
4.4 Activities
4.5 Front-End Loading
4.6 Schedule Control
4.7 Initial Submittal Of Schedule
4.8 Milestones And Project Completion
4.9 Progress Reporting
4.10 Problems With The Interrupted Performance Of A Given Activity
4.11 Scheduling Guidelines

5.0 Scheduling Provisions Affecting Change Orders And Claims
5.1 Delays
5.2 The "No Damage For Delay" Clause
5.3 Disruption
5.4 Ownership Of Float
5.5 The Contractor’s Right To Finish Early
5.6 Liquidated Damages
5.7 Contractor Progress And Acceleration
5.8 Termination
5.9 Failure To Provide Notice
5.10 Requirements Of Owner-Furnished Material
5.11 Approval Times
5.12 Coordination Responsibilities
5.13 Subcontractor Problems

6.0 Case Law Affecting Claim Preparation
6.1 Cause And Effect Relationships
6.2 Delay Claims, Time Extension Requests, And Liquidated Damages
6.3 Acceleration Claims

7.0 Common Methodologies For CPM Schedule Delay Analysis
7.1 As-Planned And As-Built Schedules
7.2 Variance Calculations And Delay Evaluation For Retrospective Delay Analysis
7.3 Retrospective Delay Analysis Methods
7.4 Contemporaneous Delay Analysis Methods
7.5 Determination Of Entitlement To Extended Overhead Damages, Liquidated Damages, And Acceleration Damages

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SECTION VI - QUANTIFICATION OF DAMAGES

1.0 Introduction

2.0 Alternate Methods To Present Damages
2.1 Total Cost
2.2 Jury Verdict
2.3 Quantum Meruit
2.4 A/B Estimates
2.5 Delta Estimates
2.6 Modified Total Cost
2.7 Specific Damages Analysis Method
2.8 Comparison Of Methods

3.0 Types Of Damages
3.1 Labor
3.2 Delay
3.3 Common Problems With The Calculation And Allocation Of Delay And Impact Damages
3.4 Equipment
3.5 Materials
3.6 Other Costs
3.7 Escalation
3.8 Interest
3.9 Profits
3.10 Legal And Expert Costs
3.11 Economic Loss

4.0 Liquidated Damages
4.1 Enforceability
4.2 Estimating Liquidated Damages
4.3 Actual Damages
4.4 Prime/Subcontractor Liquidated Damages
4.5 Time Extension And Apportionment Of Delay
4.6 Change Order Considerations
4.7 Other Waiver Issues

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SECTION VII - CLAIMS PREVENTION

1.0 Introduction

2.0 Quality Contract Documents

3.0 Management Of Outside Design Professionals

4.0 Constructibility And Biddability Reviews

5.0 Site Investigation

6.0 Review And Approval Of Detailed As-Planned Schedules

7.0 Claims Mitigation During Construction

8.0 Project Reviews

9.0 Contractor's Risk Analysis

10.0 Owner Guidelines

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SECTION VIII - DISPUTE RESOLUTION

1.0 Background

2.0 Negotiation
2.1 Informal Spontaneous Negotiation
2.2 Voluntary Pre-hearing Negotiation
2.3 Mandatory Pretrial Negotiation
2.4 The Negotiating Team
2.5 Understand Your Position And Your Needs
2.6 Written Presentation Of Claims
2.7 The Negotiation Meetings
2.8 Creative Solutions

3.0 Arbitration
3.1 Statutory Authority
3.2 The Arbitration Agreement
3.3 Mandatory Binding Arbitration
3.4 Specialized Binding Arbitration
3.5 Voluntary Nonbinding Arbitration
3.6 Mandatory Nonbinding Arbitration
3.7 Arbitration Vs. Litigation
3.8 Finality Of Awards

4.0 Litigation
4.1 Discovery
4.2 Pretrial Motions
4.3 Selection of Experts
4.4 Pretrial Orders/Hearings

5.0 Alternative Dispute Resolution (ADR)
5.1 Emergence Of ADR
5.2 Non-Adjudicatory Procedures
5.3 Quasi-Adjudicatory Procedures
5.4 Adjudicatory Procedures
5.5 Conclusion

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SECTION IX - CASE STUDY

1.0 Factual Background of the Project

2.0 The Project Events

3.0 Discussion of the Project Problems and Responsibilities

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