module 1: contract administration for claims claims live
TRANSCRIPT
Construction Claims Live Online Training Course
Presented by Andy Hewitt FICCP, FCIOB, FCICES, FQSI
Module 1: Contract Administration for Claims
Module Tutorial Webinar
Course Developer and Presenter: Andy Hewitt
• Over 40 years’ experience in the construction industry
• Worked and lived in United Kingdom, Middle East & Africa
• Worked for contractors, subcontractors, consultants & clients
• Quantity Surveyor, Commercial Manager, Contract Manager, Project Manager, Project Director, Contracts & Claims Consultant
• Provided training and education to many people and companies internationally
Publications
Introduction to the Course
• Six modules presented over a 6-week period:
Date Module Topic
24th February Module 1 Contract Administration for Claims
3rd March Module 2 Types of Claim
10th March Module 3 Delay Analysis
17th March Module 4 Essential Elements of a Successful Claim
24th March Module 5 Presentation of Claims and Responses
31st March Module 6 Responses and Determinations
Delivery of the Course
• Each module will be presented via webinar
• A question and answer session will be included at the end of the presentation
• Optional assignments will be set at the end of each module
• At the beginning of the next module, we will review the assignments and where appropriate, give the correct answers for self-grading
Access to the Student Website and Course Materials
• All students have login details to the student website
• If you haven’t already, we strongly suggest you login and familiarise yourself with the website and read the important information on the course homepage. Doing so will ensure you’re fully informed about how things will run over the next 6-weeks
• The student website hosts all course resources including:
o Recordings of the live webinars (posted on each module page within 24-hours of the live session)
o Module presentation slides
o Case studies relating to the weekly assignments
Definitions
• EMPLOYER – The party who has ordered the work to be done
• ENGINEER – As per the FIDIC definition, the party responsible for the administration of the contract
• VARIATION – A change to the original scope of work
• PROGRAMME – A breakdown of the work into planned activities
Module 1Contract Administration for Claims
Contract Documents
Contract Documents
Agreement
Appendix to Tender
General Conditions
Particular Conditions
Specs
Drawings
Bill of Quantities
Other
Contract Documents
• The contract documents should be compiled and signed as soon as possible after the agreement has been reached
• The contract documents should reflect any changes that have been introduced to the tender documents as a result of tender clarifications and negotiations between the parties
• The propensity to include volumes of ‘other documents’ as appendices should be discouraged
Contract Documents
• A controlled set of contract documents should be maintained on site
• The controlled set of documents should be annotated with cross-references to other parts of the documents where necessary to provide clarity
• A copy of the contract conditions which consolidates the general conditions and the particular conditions should be produced for day-to-day use
Top Tip
Contract Documents
• It is useful to build up a ‘library’ of frequently used clauses (including any amendments made by the particular conditions) in a Word document for future reproduction in correspondence and claims
Top Tip
Programmes and PlanningThe Contractor’s Programme or ‘Baseline’ Programme
• Most forms of contract require the contractor to submit a programme within a stipulated time frame (FIDIC Red Book 28 days)
• Engineers should be realistic about the level of detail expected from the contractor relative to the time frame allowed
• As well as being the contractor’s plan to complete the project, the programme will become a ‘yardstick’, or ‘baseline’, against which to measure delays
Programmes and PlanningThe Contractor’s Programme or ‘Baseline’ Programme
• The programme should reflect the intentions of the parties at the time of contract
• Engineers should not attempt to pressure the contractor into including post contract events into the programme and contractors should resist such requests
Programmes and PlanningRevised Programmes
• Should circumstances affect the programme – additional work, re-sequencing of the work, delays etc. – then the programme may be revised accordingly
• The programme should also be revised to take into account extensions of time
Programmes and PlanningUpdated Programmes
• Updated programmes should be produced and submitted to the Engineer on a regular (monthly) basis
• An updated programme, or as-built programme, will record the progress up to the data-date of the update and predict the events after the data-date of the update
Programmes and PlanningUpdated Programmes
• It is good practice to prepare an updated programme at the start of any potential delay event
• Upon identification of a possible delay event – early consultation with the planners to review the effect is essential to establish whether the event will have an effect on the programme or the time for completion
Programmes and Planning
• Contractor’s Programme – reflects the Contractor’s plan when the contract was entered into (often referred to as the baseline programme)
• Revised Programme – revised to take into account changed sequencing, acceleration, extensions of time
• Updated Programme – Reflects actual and planned progress
Records
• The three most important things in preparing a successful claim are:
• Good records,
• Good records and
• Good recordsTop Tip
Records
• Types of records
o Notices
o Correspondence
o Meeting minutes
o Submittals
o Method statements
o Daily, weekly, monthly site reports
o Programme updates
o Material deliveries
o Plant returns
o Labour returns
o Progress photographs
Records
• Additional records when a potential claim event occurs:
o Notices
o Photographs
o Measurements
o Marked up drawings
o Daywork records
Chronology and Database
• In a claim situation, much time can be saved if various records are collected and recorded on a database
• The time to start doing this is as soon as an event which may result in a claim occurs
• When compiling the database, check for cross-references
RecordsDate Type Ref. From To Subject Contents
18-Jul-09 Mat App 44 JCG ENGR Materials Approval Product and subcontractor approval
25-Sep-10 Test C1194 APS JCG Test Certificate Test Certificate 2A Underpass Bridge
14-Oct-10 Letter 2053 ENGR JCG Laying of Sub Grade at Different Locations in Type 1 waterproofing
Waterproofing under investigation. Instructed not to lay until approved. APS to provide requested information
27-Nov-10 Letter 2195 ENGR JCG Waterproofing Type 1 -APS technical clarification
Instruction to look for another supplier. APS performance guarantee not satisfactory
28-Nov-10 Fax 0456 APS JCG Engineers Letter 27/11/10
Reconfirming performance. Confirm that materials are in stock as APS
01-Dec-10 Letter JCG APS Newtown Ring Road -Bridge Deck waterproofing type 1
Material suitable for RSA. Confirm requirements for laying of RSA. References
01-Dec-10 Letter 2218 ENGR JCG Waterproofing for Underpass No 2
Confirm AAM instructed to delete the water proofing membrane from Underpass 2 …
05-Dec-10 Fax APS JCG Waterproofing Type 1 -Eliminator
Position statement. AAM instructed to delete waterproofing. Advised that materials had been delivered.
06-Dec-10 Letter 2381 JCG ENGR Waterproofing Type 1 -APS technical report and SL Undertaking Letter
Confirming compliance. Enclosing SL undertaking letter of performance. Await final decision
Claim StrategyThings to be considered before making a claim
Likely outcome & seriousness
of event
Negotiation margin
Value of the claim
Strength of the claim & its chances of success
Claim StrategyThings to be considered before making a claim
Party responsible
for determination
Client Relationship
Considerations
Available and suitable
experience to prepare the
claim
Module 1 - Summary
• Contract documents
• Programmes and planning
• Records
• Claim strategy
Questions?
Module 1 AssignmentConsider the contract administration systems on a project, or projects, on which you have worked and list their strengths and weaknesses with regard to the management and administration of claims.
In the case of weaknesses, think about how the systems could be improved.
Thank youAndy Hewitt
T: +971 (0)50 446 1201
Hewitt Decipher Partnership: www.hewittdecipher.com
Claims Class: www.constructionclaimsclass.com