Avoiding Construction Overruns and Managing Construction Disputes

After participating in this course, you will be able to:

• Implement effective contracting strategies to manage risk and minimize claims and disputes.
• Administer construction contracts to prevent disputes and ensure compliance with project objectives.
• Utilize project scheduling and delay analysis techniques to identify and mitigate potential delays.
• Develop and apply effective documentation and communication practices to support project control and dispute resolution.
• Resolve disputes using alternative dispute resolution (ADR) methods, minimizing litigation costs and fostering amicable solutions.

Description
Construction projects often encounter challenges that can lead to disputes, time delays, and cost overruns. Selecting the right project delivery system and understanding risk management strategies are essential to avoiding these issues. This course provides in-depth insights into risk management, exploring various contracting strategies and project controls that help prevent claims and disputes. By learning to analyze project schedules and delays using Critical Path Method (CPM) techniques, participants will be equipped to effectively manage and mitigate risks.

Understanding the importance of documentation, communication, and project controls is crucial in minimizing claims and ensuring the smooth execution of projects. Participants will explore methods for evaluating claims related to scheduling, analyzing delays, and understanding the factors contributing to disputes. The course also covers damage quantification and claim management strategies, helping attendees develop robust procedures for preventing and managing claims throughout the project lifecycle.

Beyond managing claims and disputes, the course explores alternative dispute resolution (ADR) methods, including negotiation, mediation, adjudication, and arbitration, equipping participants with the skills to resolve conflicts without resorting to litigation. Attendees will also learn best practices for contract close-out, helping to ensure that projects are completed successfully and all parties' interests are protected.

Who Should Attend
This course is designed for professionals in construction project management and dispute resolution.

Understanding how to manage risks and minimize claims and disputes will benefit project managers, engineers, contract managers, coordinators, designers, architects, and contractors. It is also suitable for construction management personnel, construction inspectors, procurement specialists, field engineers, subcontractors, project technicians, technologists, developers, business owners, consultants, and government or public-sector employees responsible for overseeing construction projects and ensuring their successful completion.

This course is also valuable for quality control specialists who ensure compliance with project specifications and safety standards, as well as facilities managers responsible for maintaining the longevity and functionality of completed projects.

Day 1

Welcome, Introduction, Workshop Preview and Learning Outcomes

Risk Management for Different Contracting Strategies

• Reviewing the fundamentals of project risk management
• Risk identification and classification
• Risk analysis
• Risk response
• Contractual risk allocation and management

Workshop I

• Case Study: Risk Management and Allocation of Risk in Different Project Analysis and Response Systems
• Discussion of lessons learned

Project Delivery Systems

• Examining different types of contracting risk elements and how to analyze and manage them
• Roles of the parties and their responsibilities
• Methods of payment: fixed unit price, lump sum, cost-plus contracts, and other forms
• Public-Private Partnerships (P3s)
• Risk management and allocation
• Integrated project delivery

Workshop II

• Case Study: Selecting the most appropriate delivery system to meet the owner’s requirements, especially when under a tight schedule
• Discussion of lessons learned

Effective Project Administration

• Contract administration in the field
• Project Administrator - their roles and responsibilities
• Contractual roles
• Pre-construction activities
• Responsibility Matrix

Workshop III

• Case Study: Establishing a Responsibility Matrix and Line of Communication for Effective Site Administration and Project Control
• Discussion of lessons learned

Day 2

Project Documentation and Control Systems

• Definition of records and their types
• Keeping good records
• Hierarchy of records
• The record as a constructive tool in dispute prevention
• The documentation process

Workshop IV

• Case Study: Designing Forms for Different Administrative Activities
• Discussion of lessons learned

Scheduling and Tracking Work Progress

• Scheduling techniques and project planning
• Developing the schedule
• Project precedence diagram, time analysis, and critical path
• Floats and who owns them
• Resource management and its impact on the schedule
• Acceleration, time-cost relationship, and project compression

Workshop V

• Case Study: Scheduling, Project Compression and Acceleration, and Resource Management
• Discussion of lessons learned

Day 3

Delay Analysis

• Types of delay
• Means and methods of analyzing delay
• Parallel and concurrent delay and the notion of pacing
• Mitigation of delay
• Damages due to delay

Workshop VI

• Case Study: Using CPM for Delay Analysis
• Discussion of lessons learned

Claims by the Owner

• Delay completion - liquidated damages and unliquidated damages
• Contractor’s lack of performance
• Contractor finishes with deficiencies - cost vs diminished value
• Claims against design consultants

Claims by the Contractor

• Sources of change and change evaluation
• Suspension of work and re-sequencing of work
• Variation orders and variations in estimated quantities
• Differing site conditions
• Defective specifications and drawings
• Unforeseen conditions and Force Majeure
• Calculation of proof of damages

Workshop VII

• Case Study: Project Claims and the Parties’ Entitlements
• Discussion of lessons learned

Day 4

Productivity Impact and Damage Quantification

• Factors affecting productivity
• Discussion on different methods of calculating productivity claims, i.e., Differential Cost Method - estimated cost/industry charts, Total Cost Method
• Pros and cons regarding the various means of quantifying the cost
• Direct and indirect cost
• Equipment ownership

Workshop VIII

• Case Study: Calculating the Entitlements Due to Delay
• Discussion of lessons learned

Claim Prevention and Management

• Mitigation of claims
• Documentation of claim events
• Knowing your contract
• Do not waive claims
• Monitor job progress
• Monitor the impact of the schedule

Dispute Resolution

• Strengths and weaknesses of alternative strategies such as negotiation, mediation, project neutrality, adjudication, arbitration and litigation
• Discussion on available strategies during and after construction is complete
• Controlling the costs of the process while resolving disputes

Workshop IX

• Case Study: Video presentation – Resolving a Dispute Through Mediation
• Discussion of lessons learned

Substantial Completion and Contract Close-Out

• Commissioning and handing-over
• Substantial completion
• Preparation of punch list
• Starting of systems
• Conclusion

Discussion on Workshop Findings

Case Studies/Discussion

Questions and Answers and Feedback to Participants on Achievement of Learning Outcomes

Concluding Remarks and Final Adjournment