checklist prep to claim

Pre-Construction Meeting Agenda

This agenda should be review and agreed upon in advance by the primecontractor’s project manager and the owner’s representative or constructionmanager. This meeting will likely take most of one day, and should be attendedby all project participants including owner, designer, and project managers,superintendents and foremen of the prime contractor and all majorsubcontractors and suppliers. During the meeting, designate one person to takegood notes for two reasons: (1) to clarify any potential subsequentmisunderstandings, and (2) to share with project participants who were unable toattend the meeting.

1. Introductions – introduce everyone attending including their name, organization,title, and role on the project.

2. Exchange organization charts – include “rolodex” information like full names,titles, mailing and office addresses, phone numbers (office line, private line, cellphone, fax, emergency number such as home number). Clarify who has whatauthority and the limits of that authority.

3. Site issues - Clarify the project premises address (and PO Box or mailing address,if different) and the field office phone number and fax number. Clarify the primecontractor’s planned layout of the construction yard including the location ofoffice trailers and storage trailers, entry and exit points, location of existingunderground utilities, existence of any potential underground hazards. Discusssurvey responsibilities (owner and prime contractor).

4. Explain the plans and “rules” for on-site conduct: access roads, delivery truckaccess routes, which gate(s) will be used for entry (including possible dual gates),when it is appropriate to enter the prime project trailer, what other trailers arepermitted on site, project site signage rules and requirements, planned temporaryor partial street closures, location of employee parking, location of publictransportation, how laborers are to make telephone calls, location of toilets,security systems, lighting, special safety fencing, etc.

5. Permits – review which permits are required and who is responsible for obtainingthem and paying for them. Clarify the agencies from which the permits will beobtained including addresses, phone and fax numbers, internet application sites (ifavailable) and contact persons.

6. Final construction documents – clarify for all parties which sets of plans, specsand amendments are final for construction and assure all are “on the same page”.Also inquire among the parties as to the existence of any previously undisclosedor un-shared soils reports, environmental reports and requirements and/or anyother relevant reports and studies.

7. Phasing & milestones – review the contract requirements.8. Pre-mobilization requirements – review all items which are required prior to

mobilization, possibly these include owner approvals of safety plans, contractorquality control plans, interim CPM schedules and so forth.

9. Submittals – review and agree on a master list of submittals and shop drawingsrequired in the Specifications (this becomes the Master Submittal Log). Clarify

Dan Fauchier, 2002


the contractually required procedures as well as other agreed-upon procedures forthis process including the number of copies to be submitted. Clarify the amountof time the owner/designer has to review and approve the submittals and shopdrawings per the General Conditions. Discuss how to expedite this process andagree upon a monitoring program (perhaps weekly meetings with owner,designer, construction manager, general contractor and relevant subcontractors).Use this opportunity to emphasize the importance of timely submittals as a way ofavoiding project delay. If known, clarify which submittals and shop drawings areon the project’s CPM critical path. Assure all appropriate information is recordedon the CPM schedule (it is recommended that each submittal appear as twoactivities tied logically to their successors).

10. Mobilization plan – describe the prime contractor’s plan for mobilizing,including any phasing involved and how various timing elements might affectvarious parties.

11. Work constraints – review any legal, local or contractual restraints on workhours, travel, noise (including noise ordinances), special consideration foradjacent property owners and neighbors.

12. Relocation plans – review the requirements for relocation of existing utilities,buildings, or other physical items, plus any planned service interruptionsincluding any restrictions on service interruptions.

13. Safety plan – review the prime’s safety plans, the date of the upcoming pre-construction safety meeting, any project-specific safety requirements, location offirst aid kits and how to contact emergency services, location of nearest hospitalsand first aid clinics, provisions for substance abuse testing, requirements forsubcontractor submittals of safety plans, etc. Use this opportunity to emphasizethe central importance of safety on this project.

14. Inspection plans – review who will be inspecting what, when and how. Considersetting up a future meeting with the chief inspector and the subcontractor foremento review the reasonable inspector expectations and requirements. Clarify whowill perform periodic life safety inspections and who is in charge of compliancewith local, state and national codes.

15. Testing plans – review what testing is required at construction phasingmilestones and upon completion of construction. Identify what testing will bedone in-house vs. by outside firms, and identify who is responsible for calling forthe testing and who will perform the testing (including company names, contactpersons, phone and fax numbers and email addresses), identify what notificationtimes are required (eg. often elevator testing requires a 14-day notice). Clarifywho will pay for the various tests. Explain and agree upon what reports arerequired, any specific format required, number of copies, distribution lists, etc.Assure this information is recorded on the CPM schedule.

16. Owner-furnished items – review the owner’s plans for furnishing materialsand/or equipment as well as possible separate prime contracts between the ownerand other parties. Assure this information is recorded on the CPM schedule.

17. Drawing log – clarify who is responsible for maintaining the project drawing logas well as as-built drawings. Discuss how the designers and constructors will


interact – set the tone for a friendly exchange of information. Clarify where theonsite as-builts will be available to subcontractors.

18. Internet project management system – if utilized on this project, discuss howthe project participants are expected to utilize the project’s internet database.Agree on dates for training and who should attend. Discuss how this impactsseveral of the items below including #19, #20, #21, and #22.

19. Daily reports – clarify which persons are expected to create a daily report andhow that report will be maintained and shared with others. It is recommended thatthe prime contractor and owner swap daily reports (eg. the report of thesuperintendent and the inspector). Agree upon the format to be used. Discuss andclarify how report writers should incorporate subjective comments regardingproblems, progress, potential change issues, etc. and what limits should be placedon “casual language”.

20. Communication and correspondence – discuss and agree upon acommunication plan including voice communication (via radio and telephone),email, and informal and formal written communication and when to use one vs.the other. Decide what logs and files will be maintained of such communication.

21. RFI process – discuss how Requests For Information will be processed and whattime frames for review and response can be expected. It is prudent to establishand agree upon a “priority system” for handling RFIs. For example, “Priority 1”indicates an answer is needed in 24 hours; “Priority 2” = 3 days, “Priority 3” =one week, “Priority 4” = two to three weeks. Decide on how often the owner,designer and prime contractor and impacted subcontractors and suppliers willmeet to review outstanding RFIs (weekly is best). Use this as an opportunity toclarify to all parties the importance of the smooth, effective RFI process. It mayalso be prudent to review the RFI form and remind parties how the primecontractor and designer expect the RFI form to be filled out (eg. list the drawingpage number and detail number, spec section, exact location of the issue,suggested solutions if any, exact date the response is needed, etc.).

22. Change Order process – describe the steps and requirements in the change orderprocess. Clarify who is authorized to issue change orders and the dollarlimitations of those persons, if any. Clarify who is the prime contractor’sauthorized representative for negotiation of change orders. Discuss and agreenow on labor and equipment rates, percentages for overhead and profit, smalltools, and, if possible, the daily rates for the prime and each subcontractor forfield extended overhead and home office extended overhead (or a future date bywhich these daily rates will be made available to the owner). Establish arecurring weekly meeting to review pending or proposed change orders; thismeeting will be attended by the authorized representatives of the owner, designer,prime contractor and affected subcontractors. Its purpose is to keep the processmoving and to expedite change issues and resolve disagreements.

23. Dispute resolution processes – review the contractual processes for resolution ofdisputes. Discuss what alternative dispute resolution mechanisms are in place –such as partnering, Dispute Review Board, mediation, arbitration – and theadequacy of these (or the likely dangers if none are in place). If the parties feelthat the contractual mechanisms may not be sufficient for this project, discuss


what additional tools should be made available to the parties – knowing thatdisputes in construction are as common as fish in the ocean. This is a goodopportunity for the owner and prime contractor to set the tone for fast, fair andfriendly resolution of disputes on this project.

24. Payment requisitions – review and discuss the contractual requirements forpayment requisitions as well as the prime contractor’s additional requirements ofsubcontractors. This is a good time to establish a monthly pre-review of theproposed pay request, attended by the chief inspector, prime contractor projectmanager, owner’s representative, designer representative and possibly the lender,if in the private sector. Review any required or proposed certification process tobe used to assure timely payment. Assure that preliminary lien notices have beenfiled, where appropriate, and according to local law.

HOW TO EVALUATE A DIFFERING SITE CONDITION CLAIM

OWNER’S CHECKLIST

1. Did the contractor meet the contract notice requirements?a. Timely?b. Written?

i. Or Actual or constructive?2. Did the contractor meet the other contract requirements?

a. Eg. site investigation clause3. Has the contractor used the data properly?

a. Type 1 vs. Type 2 (if applicable in your contract, eg. Federal)b. Is contractor’s interpretation of contract document data reasonable?

i. Test = “reasonable & prudent” person4. Did the contractor rely on the contract document data?

a. Did it review the data prior to bid?b. Did it not obtain actual knowledge of DSC before contract was executed?c. Did it rely on the “entirety” of the contract documents and not just a

portion? i. Cannot disregard unfavorable data

d. Did the contractor not “know better” based on similar experience?5. Are there “exculpatory” or disclaimer clauses which impact this claim?

a. Are they material to this issue?b. Are they enforceable in this jurisdiction?c. Has your company or agency been upheld in enforcing these clauses?

i. Knowledge that they may be unenforceable may be seen as unfair,even bad faith

6. Is this truly a DSC claim?a. Not a claim for adverse weather or climate?

i. Unless owner has superior knowledge of weather conditions vitalto performing the contract – not shared before entering contract

b. Not a claim filed merely to recover from mis-bidding contract work?c. Not a claim for conditions which are not usually encountered in that type

of work?7. Has the contractor proven entitlement?

a. Carefully review the contractor’s claim i. Does the contractor have evidence to support entitlement to its

claim?1. Burden of proof is the contractor’s

ii. Is the contractor in compliance with all contractual prerequisites toestablish entitlement?

8. If entitled, has the contractor proven damages (quantum)?a. Costs, inefficiencies, time delaysb. Carefully review the contractor’s claim

i. Is the contractor’s record keeping adequate?

1. Has the contractor “shown its work” in calculatingdamages?

2. Can it be audited? ii. Where estimates are used, are they reasonable?

1. Are they verifiable by other authorities?9. In loss of efficiency claims:

a. Is the benchmark period “representative” of anticipated conditions? i. Should include normal contract inefficiencies

1. Bad weather2. Productivity losses for other reasons3. Should not be “ideal”

b. Questions to ask: i. Was the soil excavated during the benchmark all the expected

types or only the easy soil? ii. Did the benchmark period include:

1. a proper blend of anticipated low-productivity elements orwas it all high-productivity work?

2. a representative amount of bad weather days?3. a representative amount of equipment downtime?4. consideration of:

a. Learning curves?b. Finishing costs?c. Other normal contractor inefficiencies?

iii. Loss of Efficiency adjustments1. analyze costs in other period to demonstrate representative

dataa. Cost codes become critically important here

2. Adjust using estimates prepared by engineers, estimators,consultants, other knowledgeable persons

iv. What if no “measured mile” is available?1. Select another benchmark

a. Question: how do you make it fair?2. Selecting a productivity benchmark:

a. Bid’s productivity estimate i. Testimony about decisions, assumptions,

changes made in preparation of the bid1. bid work papers and supporting

schedulesa. Clear, concise, detailed

2. notes of the estimator3. bid escrow may be appropriate

where DSC is highly probablea. eg. environmental

remediationb. Contractor’s productivity on other similar projects

i. Problem: projects are seldom identical

OWNER’S CHECKLIST – EVALUATING A DSC CLAIM Page 3

c. Another contractor’s productivity on the sameproject

i. Problem: skills from one contractor toanother are not homogenous

d. Productivity manuals and studies i. Problem: not site specific

e. Expert evaluation or re-estimation after the fact10. Owners should create documentation every time a DSC is alleged

a. Regardless of whether the owner’s staff agree that it is a DSCb. Segregate costs of impacted work

i. Verify timecards and rate information1. signed daily by owner’s construction manager, resident

engineer or inspectorc. Even so, you may not be able to capture all losses in productivity

i. Crowding ii. Stop-and-start work flow iii. Waiting iv. Unproductive time v. Low labor morale vi. Ripple effect: impact on other trades and activities

11. Presentationa. Owners are reasonable in expecting a clear, understandable, well-

documented claim i. Unsophisticated contractors may need guidance

1. Refer them to industry associationsb. If you reject a claim as incomplete

i. Give specifics of what would be acceptable format anddocumentation

c. Fairness is good public policy12. Assure your staff are “up to the task”

a. Continuing training programsb. Ongoing evaluations of completed claimsc. Adequate timed. Get assistance from expert consultants in areas of law, engineering,

industry-practice i. But watch for conflicts of interest

1. Eg. construction managers evaluating claims against itsactions

2. Eg. designers evaluating claims involving allegations ofinadequacies or conflicts in its plans and specifications

e. Always look for the “alternate” solution to resolution of the dispute

How to Prepare for Arbitration

1) First, read your Contract and assure you follow the requirements in the ArbitrationClause.a) Notify the Tribunal in writing that you want to file for arbitration.b) Carefully follow the rules and procedures of the Tribunal, paying particular

attention to notice requirements.c) Begin steps 2-8 at once. Procrastination is an ally to the opposition. Therefore,

start preparing your case as soon as a problem is recognized or identified.d) Select your choices for arbitrator from the list provided by the Tribunal and

notify the Tribunal as quickly as possible.i) Exclude anyone with whom you have prior dealings or personal knowledge

(1) Or at least disclose the true facts of the potential conflict of interest andrequest that your opponent review and agree to that arbitrator.

(2) Do NOT contact any potential arbitrator on the list. That would be abreach of neutrality.

ii) Expect that any arbitrator will be truly neutral and unbiased. Therefore, lookfor those persons whom you feel are most likely to:(1) Have relevant experience and knowledge of your particular circumstances

and issues.(2) Appropriate fee schedule.(3) Appropriate site or location availability.

2) Thoroughly research all documentation related to the dispute.a) Keep originals in a safe place. Work with copies.b) Do not rely on memory. What is remembered today may be lost tomorrow.c) Collect and organize photos and videos of the event, scene, damage or injury. If

you have not already made a photographic or video record, do it now.3) Reconstruct in writing – as objectively as possible – a brief narrative of the events

leading to the dispute.a) This should be a one- or two-page synopsis, concisely stating the overall case as

you believe it at this point (you will likely refine this statement later).b) Be absolutely honest.

4) Start (or continue) a diary.a) Record names, dates, phone numbers, addresses, email addresses and the

substance of conversations.b) Use computer software wherever possible (ACT!, Outlook, Goldmine).c) Remember the five “W’s” – Who, What, Where, When and Why.

5) Draft a list of issues to be decided.a) Review these issues with a fresh mind after reviewing all documentation.b) Issues are different from facts. Don’t confuse them. Group the facts of the

dispute into over-arching issues.c) Have you missed some issues? Look again at the facts of the dispute.d) Are some issues only emotionally relevant? Anger and other emotions can make

molehills into mountains. Weed out the “little”, less relevant issues.

6) Sort the documentation (#2 above) according to issues (#5 above).7) From your diary and documentation, draft a timeline of the dispute. What was done

when, by whom?a) Arrange it chronologically.b) Your timeline helps to tell the story and to put the facts and issues into

perspective.8) Re-examine your case for weaknesses, asking questions.

a) Did I do or not do something that might have contributed to the dispute?b) What percent of the problem might an arbitrator possibly consider to be my fault?c) You may want an uninvolved 3rd party to help with this step: an experienced,

clear-thinking friend or an advocate (consultant or attorney).d) Remove extraneous issues and documents. Clean up the case. Boil it down to the

clear, clean, strong points.e) All of the foregoing have helped to establish and explain the “merit” of the case.

9) Now collect your records of costs and damages.a) This will become your explanation of the “quantum”, that is, I have proved merit

(“I was damaged...”) and now I will show quantum (“…and here’s how much.”)b) Obtain bids or copies of receipts to validate repair or replacement claim.c) Don’t overlook hidden costs such as extended overhead, lost wages, etc.

10) Perhaps look up applicable case law (court decisions) relevant to your circumstances.a) The arbitrator is not necessarily bound by court decisions, but may find them

helpful guidelines, particularly if a decision could easily go either way.b) You will want to know if prior court decisions are NOT in your favor. Perhaps

you want to try again to mediate this case to achieve the best possible settlement.11) Keep updating your diary and documentation, including additional photos if there

are changes you need to show.12) Decide who should present your case in the arbitration.

a) Analyze your capability to represent yourself effectively under stressfulconditions.

b) Would it be better to have a professional advocate help present your case?i) A trained consultantii) An attorney

c) The narratives and documentation you have prepared (above) will allow you toquickly bring a 3rd party up to speed on your case (and save you money).

d) Find out who will represent the other party. Are there equal presentation skills onboth sides?

13) Now nail down the exact case you plan to present at arbitration and how youwill deal with the opposing party’s defenses and counter-claims .a) With your advocate (if you choose to have one):

i) Refine the thesis of your case – clear, clean, concise.ii) Determine what evidence and documents you will use to effectively prove you

case(1) Re-examine each piece of evidence for its strength and relevance.(2) Assure you have all critically needed evidence (such as an invoice, letter

or bid). Usually, you will NOT have an opportunity to present evidenceAFTER the hearing.

(3) Strike a balance: too much evidence can be just as damaging as too little.(4) Prove your point and move on. Don’t beat the proverbial dead horse.

iii) Determine what evidence and documents OTHERS may possess which youneed for your case(1) Will they release them to you?(2) Will a subpoena be required? That may not be available if the arbitration

is very informal.(3) Notify the Tribunal’s case manager early if a subpoena is required.

iv) Determine if any inspections or tests are needed and make arrangementsimmediately.

v) Determine if witnesses are needed, and make sure they are aware of the date,time and place of the hearing.

vi) Determine if an interpreter is needed, and make sure they are aware of thedate, time and place of the hearing.

vii) Evaluate your alternatives and your risk in “taking this all the way”. Are youprepared to accept a decision that is NOT in your favor. Consider anotherattempt to negotiate or mediate, if you feel your case is weak.

b) Prepare a witness list with a brief summary of what testimony each witness willoffer.

c) When directed by the Tribunal: exchange your evidence with the opposing party.i) Failure to produce evidence in advance is not necessarily fatal to your case,

but may be viewed by the arbitrator in a negative light. You do not want toappear deceitful or incompetent.

ii) Mark your exhibits as directed by the Tribunal. For example, you maynumber your pages 1.01, 1.02, 2.02, etc. or A.01, A.02, B.01, etc. If theTribunal does not offer instruction on this point, ask.

iii) Examine your opponent’s evidence very carefully.(1) Is it convincing?(2) Does it contradict your case?(3) What are the weaknesses?(4) What questions should be asked of your opponent? Write them down.(5) How does the opposing evidence affect the strength of your case?(6) What can be done to effectively rebut your opponent’s evidence and

positions?14) Arrive at the hearing ahead of time and in top condition.

a) Get plenty of rest the night before the hearing.b) Don’t consume alcohol or large meals the night before the hearing. Stay lean and

clean to keep a clear head.c) Consider driving to the hearing site the day before, to assure you know how to get

there and how long to allow for drive time during “rush hour”.d) Avoid drinking too much coffee or tea prior to the hearing.

i) You don’t want to be jittery.ii) Though the arbitrator will probably indulge your need for biological breaks,

you want the other party to appear to be the basket case, not you.e) Take a “sports bottle” of water and a couple of throat lozenges into the hearing

room with you. You can overcome dry mouth or a “frog in the throat”.

Checklist for Reviewing and Analyzing CPM Schedule Updates

1. Have electronic copies of the baseline and the update been provided to the reviewer? 2. Has the scheduler included a narrative explaining all changes made and the reasons

for those changes? 3. Has a standard schedule comparison program (e.g. Claim Digger, Primaplan Project

Investigator) been run and the output printed for the reviewers use? 4. How does the “claim digger” printout (#3) compare to the scheduler’s narrative (#2)? 5. What methods did the scheduler use for gathering information for the activity

updates? (Direct observation, updates from suppliers and subcontractors, field reports and photographs, contractor’s estimates) How reliable are those methods?

6. How has the planned project completion date changed in the update? 7. How have any interim completion milestone dates changed in the update and what is

their affect on the contract? 8. Have any activities been added or deleted in the update and why? 9. Have any original durations been changed in the update? 10. What remaining durations have changed in the update and are they adequately

explained by the progress on the project? 11. What percent-completes have changed in the update and are they adequately

explained by the progress on the project? 12. Have any project calendars been changed in the update and why? 13. Have any activity descriptions changed in the update and why? (These may lead to

confusion later.) 14. Have any constraints changed in the update and are they adequately explained and are

they in conformance with the contract? 15. What actual starts and actual finishes have been changed, added or deleted in the

update and are they adequately explained in the scheduler’s narrative? 16. Have any resources (if loaded) been added or deleted in the update and are they

adequately explained in the scheduler’s narrative? 17. Have any activity costs – budgeted, forecast or actual, if loaded – been changed in the

update and are they adequately explained in the scheduler’s narrative? 18. Have any relationships been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative? 19. Have any relationship lags been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative? 20. Has the critical path shifted? 21. If the critical path has shifted, which activities are affected and what are the reasons

for the shift? 22. Has the float of any activity changed significantly? 23. Which activities have now become near-critical? 24. What activities should have started or finished in this update, but did not, and are they

adequately explained in the scheduler’s narrative? 25. Has weather become a factor and has the scheduler adequately re -estimated durations

of activities which might be affected by weather?

Checklist for Reviewing and Analyzing CPM Schedule Updates Page 2

26. Are there any trends worth watching? E.g. is a particular crew or subcontractor consistently ahead of or behind schedule?

27. Analyze the reasons for any trends and make adjustments accordingly (or inquire of the contractor what adjustments are planned).

28. Have any scope of work changes occurred since the last u pdate and have these been incorporated in the schedule update?

29. Have all approved change orders been incorporated as new activities and connected logically to other schedule activities?

Checklist for Reviewing and Analyzing CPM ScheduleUpdates

1. Have electronic copies of the baseline and the update been provided to the reviewer?2. Has the scheduler included a narrative explaining all changes made and the reasons

for those changes?3. Has a standard schedule comparison program (e.g. Claim Digger, Primaplan Project

Investigator) been run and the output printed for the reviewers use?4. How does the “claim digger” printout (#3) compare to the scheduler’s narrative (#2)?5. What methods did the scheduler use for gathering information for the activity

updates? (Direct observation, updates from suppliers and subcontractors, field reportsand photographs, contractor’s estimates) How reliable are those methods?

6. How has the planned project completion date changed in the update?7. How have any interim completion milestone dates changed in the update and what is

their affect on the contract?8. Have any activities been added or deleted in the update and why?9. Have any original durations been changed in the update?10. What remaining durations have changed in the update and are they adequately

explained by the progress on the project?11. What percent-completes have changed in the update and are they adequately

explained by the progress on the project?12. Have any project calendars been changed in the update and why?13. Have any activity descriptions changed in the update and why? (These may lead to

confusion later.)14. Have any constraints changed in the update and are they adequately explained and are

they in conformance with the contract?15. What actual starts and actual finishes have been changed, added or deleted in the

update and are they adequately explained in the scheduler’s narrative?16. Have any resources (if loaded) been added or deleted in the update and are they

adequately explained in the scheduler’s narrative?17. Have any activity costs – budgeted, forecast or actual, if loaded – been changed in the

update and are they adequately explained in the scheduler’s narrative?18. Have any relationships been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative?19. Have any relationship lags been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative?20. Has the critical path shifted?21. If the critical path has shifted, which activities are affected and what are the reasons

for the shift?22. Has the float of any activity changed significantly?23. Which activities have now become near-critical?24. What activities should have started or finished in this update, but did not, and are they

adequately explained in the scheduler’s narrative?25. Has weather become a factor and has the scheduler adequately re-estimated durations



26. Are there any trends worth watching? E.g. is a particular crew or subcontractorconsistently ahead of or behind schedule?

27. Analyze the reasons for any trends and make adjustments accordingly (or inquire ofthe contractor what adjustments are planned).

28. Have any scope of work changes occurred since the last update and have these beenincorporated in the schedule update?

29. Have all approved change orders been incorporated as new activities and connectedlogically to other schedule activities?

Checklist for Reviewing and Analyzing CPM ScheduleUpdates

1. Have electronic copies of the baseline and the update been provided to the reviewer?2. Has the scheduler included a narrative explaining all changes made and the reasons

for those changes?3. Has a standard schedule comparison program (e.g. Claim Digger, Primaplan Project

Investigator) been run and the output printed for the reviewers use?4. How does the “claim digger” printout (#3) compare to the scheduler’s narrative (#2)?5. What methods did the scheduler use for gathering information for the activity

updates? (Direct observation, updates from suppliers and subcontractors, field reportsand photographs, contractor’s estimates) How reliable are those methods?

6. How has the planned project completion date changed in the update?7. How have any interim completion milestone dates changed in the update and what is

their affect on the contract?8. Have any activities been added or deleted in the update and why?9. Have any original durations been changed in the update?10. What remaining durations have changed in the update and are they adequately

explained by the progress on the project?11. What percent-completes have changed in the update and are they adequately

explained by the progress on the project?12. Have any project calendars been changed in the update and why?13. Have any activity descriptions changed in the update and why? (These may lead to

confusion later.)14. Have any constraints changed in the update and are they adequately explained and are

they in conformance with the contract?15. What actual starts and actual finishes have been changed, added or deleted in the

update and are they adequately explained in the scheduler’s narrative?16. Have any resources (if loaded) been added or deleted in the update and are they

adequately explained in the scheduler’s narrative?17. Have any activity costs – budgeted, forecast or actual, if loaded – been changed in the

update and are they adequately explained in the scheduler’s narrative?18. Have any relationships been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative?19. Have any relationship lags been added, deleted or changed in the update and are they

adequately explained in the scheduler’s narrative?20. Has the critical path shifted?21. If the critical path has shifted, which activities are affected and what are the reasons

for the shift?22. Has the float of any activity changed significantly?23. Which activities have now become near-critical?24. What activities should have started or finished in this update, but did not, and are they

adequately explained in the scheduler’s narrative?25. Has weather become a factor and has the scheduler adequately re-estimated durations



26. Are there any trends worth watching? E.g. is a particular crew or subcontractorconsistently ahead of or behind schedule?

27. Analyze the reasons for any trends and make adjustments accordingly (or inquire ofthe contractor what adjustments are planned).

28. Have any scope of work changes occurred since the last update and have these beenincorporated in the schedule update?

29. Have all approved change orders been incorporated as new activities and connectedlogically to other schedule activities?

Checklist of Project Documentation

At Project Startup• Logs

o Submittalso RFIo Drawingo Change Order

§ Sub COR§ COR§ PCO§ CO

o Delayso Material Procurement – Long Lead Itemso Phoneo Correspondenceo Transmittalso Permitso Back chargeso Safety meetingso Site orientation of subs/staff (security)o Playerso Invoices

• Daily Reporto Subo General Contractoro Inspector

• Delay impact report• Budget• Pay requisitions

o Certified payrollso Subcontractor completion reports/logs

• Safetyo Meetings Heldo Written Safety Programso Material Safety Data Sheets

• Meeting Minutes• PM Diary• CPM schedule

o Target baselineo Updates

§ Narrative of changeso Final as-built

• Photos & video tape

Closeout• Germane specs• Warranty items• Checklist of As-Builts• Punch lists• O&M Manuals• Instructional Training

o Videos• List of Hardware spares needed / on hand• Service Contract

o Mechanical Subs• ADA• Excess materials• Meetings for closeout

o With subso With ownero With fire department

• Outstanding c/o and claimso Letters to subs/suppliers

• Testingo Underground – See Form at www.egca.orgo Elevatoro Fire testing

§ Alarm§ Enunciator§ Flow tests

o Life Safetyo Major equipment/systems

Documents Needed for Claims Analysis

1. Contract documentsa. Prime Contract (Owner – GC)

i. All Amendments ii. All Change Orders and Change Order Requests

1. Copy of approved change ordersa. Include breakdown of labor, material, equipment

2. Copy of requested, unapproved change orders and currentstatus

a. Include breakdown of labor, material, equipmentb. Include all correspondence exchange regarding each

denied or pending change orderb. Relevant subcontractsc. Specifications including

i. General Conditions ii. Special Conditions

d. Contract drawings including i. Addenda ii. Architect’s Clarifications iii. Sketches

2. Bid documentsa. Bid work papers (if relevant to this issue)

3. Submittals and shop drawings related to this issue4. RFIs and responses

a. Include the total number of RFIs on the project, number related to thisissue, number involving your organization only (for subcontractors)

b. Include number of labor hours expended for contract work vs. changework

i. Your organization ii. All organizations performing work on the project (if relevant)

5. CPM Schedulesa. Original approved baseline CPMb. All updates, especially the most recent update

i. Include narratives or explanations attached to the updatesc. Any 2-week or 3-week look-ahead bar chartsd. Any recovery schedules, acceleration schedules

6. Project logsa. Submittal logb. RFI logc. Change order logd. Backcharge loge. Correspondence logf. Phone logsg. Email logs (if any)

DOCUMENTS NEEDED FOR CLAIMS ANALYSIS

7. Access to any electronic or internet project management systems, forexample:

a. Prologb. Expeditionc. Constructwared. Citadon

8. Meeting minutes, includinga. Meetings between GC, Owner, Designerb. Meetings with subcontractorsc. “Special topic” meetings including:

i. Scheduling meetings ii. RFI meetings

9. All relevant correspondence between the parties, includinga. Letters between GC and ownerb. Letters between GC and subs

10. Daily reports and diariesa. GC’s superintendent’s daily reportsb. Subcontractors daily reportsc. Inspector’s or QC daily reports

11. Photographs, video tapes and other visual media related to this issue (if noneexist, begin documenting them now)

12. Internal memorandaa. Internal memoranda (within your organization)b. Notes of verbal conversationsc. Memos to filed. Memos of phone conversations

13. Cost Code and budget reportsa. Weeklyb. Monthly

14. Possibly: relevant daily time sheetsa. Include identification of hours spent on acceleration or disruption and

delay15. Lists of and receipts for equipment used (if relevant to the issue)

a. Ownedb. Rentedc. Identify escalation related to this issue

16. Lists of and receipts or invoices for additional or substituted materials (ifrelevant to this issue)

a. Include any quantity calculations or take-offsb. Identify escalation related to this issue

17. Schedules or lists of labor trades utilized (as relevant to this issue)a. Indicate entity supplying each labor trade (GC or sub)b. Include breakdown of base rates, benefits, taxes, workers comp, insurance,

union benefits, etc.c. Identify escalation related to this issue

18. Existing or previous claims or requests for equitable adjustment (REA)

DOCUMENTS NEEDED FOR CLAIMS ANALYSIS

19. Project Manager’s brief project and issue HiSTORY (factual story form)a. Include major events and relevant minor incidentsb. Describe the claim you envision (or have filed), including elements of the

claim you anticipate: delay, disruption, acceleration, inefficiency,suspensions and stop-work orders, added or diluted supervision

c. Be factual, include dates, names, if possible cross reference to actualdocuments which can be looked at while reviewing the narrative (NOTE:to the degree you do not do this, the consultant will likely have to do this.)

20. Bonds required and bond costs, as relevant21. If claiming extended overhead, provide:

a. Actual field costs during the extended period (include accountingprintouts, invoices, receipts, etc.), including:

i. Supervision above general foreman ii. Project manager costs (if your accountant costs these to the project,

otherwise they are part of home office overhead) iii. Trailer rents (office and storage) iv. Temporary power to trailers v. Janitorial and other services to trailers vi. Additional costs of office equipment and supplies vii. Extended safety and fencing costs viii. Additional layout expense (beyond that in the bid)

b. Audited financial reports for your organization showing total revenues,revenues for this project, G&A (general and administrative expenses) forall years during which this project is/was open

22. Any other documents you feel might be useful in understanding and preparing theanalysis or claim

Extended Field Overhead

Extended Field Overhead is based on ACTUAL costs as documented by invoices,timesheets, accounting printouts, etc. These must be accurate and auditable.

The best procedure is to collect the source documents – invoices, timesheets, accountingprintouts, etc. – organize them as shown below, summarize the information and calculatea calendar day rate, then attach the source documents as exhibits to the calculations.

If forward pricing Extended Field Overhead, utilize a calendar day average of arepresentative period, which may be the project period to date or only the most recentmonths, if there is substantial difference between various phases of the project. If pricingthe Extended Field Overhead at the end of the delay, utilize ACTUAL costs for theperiod.

Organize the presentation of Extended Field Overhead into fivesections:

1. Extended Field Officea. Office trailersb. Office furniturec. Office equipment including copy and fax machines, computers, etc.d. Communication equipment including phone company and ISP charges and

2-way radiose. Office utility bills (electricity, gas, water)f. Office suppliesg. Office janitorialh. Project photography and videography

2. Extended Field Supervision (salary, benefits, taxes, housing and expensesreimbursed)

a. Project Manager (if routinely costed to the job, not carried as G&A1)b. Project Engineer (if routinely costed to the job, not carried as G&A)c. Project Scheduler (if routinely costed to the job, not carried as G&A)d. Superintendente. General Foremenf. Field office clerical

3. Extended Field Labor (these may be estimated if time is not recorded in detail – ifestimated, explain in detail how and why you calculated these amounts)

a. Safety crews (flaggers, cone maintenance, fence maintenance)b. Security personnelc. General cleanup crews (site cleanup, street cleanup)d. Survey and staking crews

1 The contractor’s accounting practices must be consistent before, during and after the project. Generally,contractors benefit from costing their managers directly to each job by maintaining weekly activity reportsshowing hours or percentage of time spent on each project.

Extended Field Overhead Calculation and Presentation Page 2

e. Equipment maintenance crews (if routinely costed to the job, not carriedas G&A)

4. Extended Equipment (rental costs or equivalent for owned equipment)2

a. Storage trailersb. Portable toiletsc. Safety equipment (fences, K-rail, cones)d. General cleanup supplies (site cleanup, street cleanup)e. Support equipment (forklifts and other general equipment not tied to bid

items)f. Water storage and trucks and de-watering equipmentg. Winterizing, snow removal, heaters, air conditionersh. Staff equipment (pickup trucks for PM, Superintendent, General Foremen)i. Fuel, oil and maintenance for equipment

5. Summary of Extended Field Overheada. Present the subtotals of the above four sectionsb. Summarize these into a unified cost per calendar day for Field Extended

Overhead

CONTRACTORS: Utilize this format in preparation of your change order or claim.OWNERS: Request that the contractor utilize this format in preparation of the changeorder or claim.

2 It may be useful for construction companies to have published rental rates for all owned equipment and toreach agreement on these rates with the project owner at the commencement of construction.

Extended Home Office Overhead Checklist

If it is not prohibited in the Contract, there may be entitlement to Extended Home OfficeOverhead if the Contractor can demonstrate that (1) there is a distinct period of suspendedoperations caused by the project owner, and (2) the suspension of work has an actual economicimpact on the absorption of the contractor’s fixed home office overhead costs.

The following is a checklist of items which might be included in the calculation of damages,the initial ten of which are allowed by the Federal Acquisition Regulations (FAR) on Federalcontracts:

1. Rent and/or mortgage payments2. Clerical, accounting, administrative and executive salaries and benefits3. Utilities and phone expenses (including internet access)4. Non-project vehicle and travel expenses (project-specific costs are Field Extended Ohd)5. Insurance6. Property taxes7. Depreciation8. Employee recruitment9. Professional and trade licenses and fees10. Information technology (computers, processing), office supplies, photocopying, postage

and non-project shipping, books, periodicals, miscellaneous general and administrativeexpenses

The following additional items are discretionary and may or may not be allowed. Theyspecifically are NOT allowed on Federal contracts under FAR, except as noted in #11 and #13:

11. Advertising expense (disallowed under FAR except that which is related to theperformance of the project)

12. Interest on borrowing and other financial costs13. Outsourced legal, consulting and accounting expenses (disallowed by FAR except under

FAR 31.205-33 costs of professional and consultant services are allowable whenreasonable in relation to the services rendered and when not contingent upon recoveryof the costs from the Government – these include services to enhance a contractor’slegal, economic, financial, or technical positions, including professional and consultantservices generally acquired to obtain information, advice, opinions, alternatives,conclusions, recommendations, training, or direct assistance, such as studies, analyses,evaluations, liaison with Government officials, or other forms of representation)

14. Entertainment expenses15. Contributions and donations16. Bad debts, including related collection and legal costs17. Losses on other contracts18. Bid and proposal costs

The Importance of a Pre-Bid RFI System

The following chart shows how important it is to accurately document questions, answers and unresolved issues during the bidprocess.

Company not "Maybe the bestforced into risky job you ever had

Bid Too High No Contract job for too little $$$ was the one you never got"

Answer Accurate bid Successful bid Documentation Solid basis for Companycontract negotiation or gets paid

Problem RFI Change order to fix problemto resolve problem

No Answer Unresolved Issue

No RFI Inacurrate bid Low bid No documentation No basis for Companycontract negotiation or "forced" into risky

Change order job for too little $$$Bid Too High - No Contract to resolve problem

Perhaps becauseafraid to eat Left wondering

Unresolved Issue What you didWrong

Why wouldn’t every estimator develop aneffective pre-bid RFI system?