construction claims & disputes management

8/10/2019 Construction Claims & Disputes Management

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d l

L l

LI~LYI fi, vu

SOCIETY of ENGINEERS

UAE


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Section

1:

Claims What they are and why they occur

Section

2:

Claims Types

Section

3:

Claims and Contract Clauses

Section : Claims Preparation and Documentation

Section : Claims Avoidance

DW

Nabil

Shehadeh

General:

1 general term for the assertion of a right to money property

or a remedy.

Construction:

An Applications requests entitlements and claims pursuant to

any Construction Contract for payment other than for

physically measurable work and /o r services and includes

applications requests entitlements and claims for any

extension of the Time for Completjon including but not

l imite

to those related to prolongation ds rup tion

acceleration mitigation and the like.


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Section 1: Claims What they are and why they occur

Section 2: Claims Types

Section 3: Claims and Contract Clauses

Section

4:

Claims Preparation and Documentation

Section 5: Claims Avoidance

Dr Nahil hehadeh

General:

A

general term for the assertion of a right to money property

or a remedy.

Construction:

An Applications requests entitlements and claims pursuant to

any Construction Contract for payment other than for

physically measurable work and/or services and includes

applications requests entitlements and claims for any

extension

of

the Time for Completion including

but

not

limited to those related to prolongation dsmption

acceleration mitigation and the like.


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Claims are generally made by the Parties due to one or all the

following circumstances

Entitlement to an extension of time

Entitlement to adhtional payments

Entitlement to the recovery of costs

Non fulfillment by one party of an obligation under the contract

Adhtional payments due to legal entitlement

Dr N a h l

Shehadeh

a

Once they arise, claims tend to take on

a

life of their own

They generally produce a paper war that can destroy personal relationships

on the project

The resulung disputes

may

continuously

escalate to the point where all

involved parties are irrauonal

They result in increased costs and loss of' control over the outcome

Involved personnel waste time preparing b r and participating

in

litigation or

DR


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Gorton Model

Stagel:

a Problem

Stage : a Disagreement

Stage : a Dispute

Stage : a Confhct

Stage

5:

Litigation

Dr Nabil hehadeh


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xtra

ork

The mploy er requires work that is not

in

the contract

Th e mpl oye r misinterprets contract plans and specifications

Response to an R I

Rejection

O

submittals

Dr

Nabil Shehadeh

Over Inspection

mploy er exceeds the bounds o f its right to inspect

Tolerances are enforced mo re strictly than the contrac t requires

Inspec tors dusect performance o f the work in a specific way


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Delays

A delay occurs when an activity takes longer than its

planned duration to complete. For a delay to be

recoverable, it must affect the critical path of the

project by either increasing the duration

of

an activity

along the as-planned critical path or by delaying the

completion of a non-critical activity long enough to

create a new critical path.

Dr. Nabd hehadeh

Site

access

or availability

Whe n the contrac tor scl~eduled ctiviues have the need or a right of way or a

location to proceed an d the Employer fails to provide it on

time

Employer fails to obtain buildmg perrmts

Employer fails to obtain a right o way

Employer fails to coordmate with

u ty

companies during project design

pproval

of ubmittals

Late approval

unre asonable rejection

dverse

Weather

The weather is adverse

I he

weather

is

unusual for the location and time of year


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