Avoiding Construction Overruns and the Resultant Construction Disputes
Apr 23 - 25, 2019 /
Course Code: 09-0417-2362
After participating in this course, you will be able to:
- recognize factors that cause project over runs in cost and/or time and resultant construction claims
- understand the contracting strategies that can be employed to minimize claims
- appreciate the contract administration issues that pertain to construction disputes
- understand the importance of project controls, documentation and communication
- be cognizant of the methodologies used to present delay and productivity claim
The seminar deals with the issues which give rise to construction overruns in time and cost, the resultant disputes and the means to minimize their effect on project success. Initially a review of the factors which give rise to construction claims is provided. The seminar then examines available strategies by owners and consultants to avoid claims and the means to minimize their effect on project success. There will be discussion on claims by Owners.
It will also focus on the importance of early non adversarial communication and the importance of project controls. Change order management and the difficulties which are experienced by all project participants as they struggle with the conflict between practice and theory will be addressed.
- Contracting Strategies
- Owner’s Avoidance / Defence of Claims
- Claims by Owner
- Contract Administration
- Damage Quantification
- Dispute Resolution
Who Should Attend
Project Managers • Construction Managers • Contract Administrators • Consultants and others concerned with the ultimate success of a project.
Each attendee must bring a copy of a Contract, in particular, the general conditions of a contract that you are familiar with or working with. During the workshop you are required to identify the best and worst clause in that contract and then share that information with a workshop group. Each workshop group is then required to pick the best and worst clause within the group to present to the other groups.
8:00 Registration & Coffee (Day 1 only)
8:30 Seminar begins
12:00 Lunch (provided)
There is an one-hour lunch break each day in addition to a refreshments and networking break each morning and afternoon. Lunch and refreshments are provided.
Welcome, Introduction, Workshop Preview, Learning Outcomes and the Assessment Method
Introduction - Overview
- Claim definition - prerequisites for a valid claim – contract and tort liability - usual reasons for disputes
- Lump sum, partnering, alliances, design build construction management and P3 and risk management and allocation
Workshop I – Canadian Court Case
Owner’s Avoidance / Defence of Claims
- Proper project administration - notice provisions - record keeping and the use of counterclaims
- As a medium to avoid claims, to present claims and getting email under control
Workshop II – Canadian Court Case
- Summary – Quick Review of the day’s discussion
Claims by Owner
- Contractor refuses to sign contract (Contract A and B) – various tender cases
- Contractor walks off the job - delays completion – liquidated damages
- Contractor finishes with deficiencies – cost vs. diminished value
- Claims against design consultants a developing trend
Workshop III - Project Alignment
Claims by Contractor
- Restricted access/changed conditions - late and/or incomplete drawings or equipment, active interference with the contractor means and methods
- Constructive acceleration, termination and suspension
- Various issues and process that have to be considered in developing contract administration procedures
Workshop IV Canadian Court Case
- Types of delay - means and methods of analysing delay
- Parallel and concurrent delay and the notion of pacing
- Pros and cons regarding the various means of quantifying cost
- Direct and indirect cost / equipment ownership
- The failings of the total cost approach
Workshop V General Conditions - Home Work Assignment
Change Order Management
- Do contractors like changes / dealing with the impact on productivity
- Ensuring compensation for changes / should change orders be qualified, quantifying and describing cumulative impact
- In workshop format the quantification of a claim will be examined so as to review delay costs, productivity claims and identify areas of duplication and inflation
Workshop VII Canadian Court Case
Productivity Analysis/Impact Cost Claims
- Factors which affect productivity, discussion on different methods of calculating productivity claims, i.e. differential cost method/measured mile approach - estimated cost/industry charts - total cost method.
- Strengths and weakness of alternate strategies such as negotiation – partnering - mediation – project neutral - arbitration - litigation.
- Discussion on available strategies during and after construction is complete
- Controlling costs and advisors whilst in the process of resolving disputes
Questions and Answers and Feedback to Participants on Achievement of Learning Outcomes
Stephen Revay has been active for the past 40 years in the analysis of progress, productivity and cost on numerous construction projects.
He has prepared or evaluated productivity andschedule analyses, including quantification of claims on construction projects throughout Canada, in the United States, the Middle East, Asia and South America. He has been qualified as an expert witness in both litigation and arbitration. He has acted as both a mediator and as arbitrator on different disputes. Mr. Revay has authored articles for various construction periodicals and conducted numerous seminars on construction disputes to owners and contractors alike. He frequently presents at in-house seminars and is a guest lecturer at the University of Calgary. He is a Past President of Construction Specifications Canada. He was also President of AACE®an association of over 7,500 project control professionals from June 2010 to June 2011.
6620 36th ST NE
Calgary, AB T3J 4C8
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Fee & Credits
- 2.1 Continuing Education Units (CEUs)
- 21 Professional Development Hours (PDHs)
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