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

E: andy.hewitt@hewittconsultancy.com

Hewitt Decipher Partnership: www.hewittdecipher.com

Claims Class: www.constructionclaimsclass.com