Construction Contract Claims, Changes & Dispute Resolution

Description

Providing approaches for solving claims and changes challenges, this book is aimed at those involved in construction contracting and in the prevention, preparation, management, and resolution of construction claims and change orders. It seeks to merge principles of construction law with practical advice. CONTENTS......Page 8 FOREWORD......Page 4 ACKNOWLEDGEMENT......Page 5 PREFACE......Page 6 1-1. Claims Background......Page 18 1-3. Purpose of Book......Page 19 1-4. Public Contracts (Heavy Construction)......Page 20 1-6. Beyond the Contract—Principles of Construction Law......Page 21 1-7c. Active Claims Policy......Page 22 1-8. Review of Chapters......Page 23 1-9. Owners, Designers, and Their Representatives......Page 24 2-2. Early Identification......Page 25 2-3c. Frame of Reference......Page 26 2-3e. Second Requirement of Identification—Familiarity with Legal Concepts and Rights......Page 27 2-3f. The Changes Clause......Page 28 2-3g. Warning Signs of Claim Situations......Page 30 2-5a. Federal Clauses......Page 31 2-5b. Private Clauses......Page 32 2-6. Late Notice......Page 33 2-8. Notification—Problems of Owners......Page 34 2-9a. Request for Final Decision, Claims Certification......Page 35 2-9d. Appeal of Board Decision......Page 37 2-10. Conclusion......Page 38 3-2. Differing Site Conditions Clause......Page 39 3-3. Type One Conditions—Examples......Page 40 3-4. Type Two Conditions—Examples......Page 41 3-5. Man-Made Conditions—Previous Construction......Page 42 3-7a. Duty to Investigate: Reasonable Investigation......Page 43 3-7b. Disclaimers for Differing Site Conditions......Page 44 3-7c. Representations of Conditions Must Be Specifically Incorporated in Specifications......Page 46 3-7e. Site Investigation Requirements......Page 47 3-8. Summary and Checklist......Page 48 4-2a. Background......Page 49 4-2b. Reasonableness......Page 50 4-2d. Language......Page 51 4-2e. Custom or Usage......Page 52 4-2g. "Against the Drafter"......Page 53 4-2h. Conduct......Page 54 4-3a. Introduction......Page 56 4-3b. Suitability of Designated Methods or Materials......Page 57 4-3e. Disclosure of Knowledge......Page 58 4-3f. Cost and Notification Aspects......Page 59 4-4a. Obligation to Notify Owner of Errors or Discrepancies......Page 60 4-4b. Zone of Reasonableness......Page 61 4-4c. Two-Step Test......Page 62 4-5. Duty to Inform......Page 63 4-6. Duty to Proceed......Page 64 4-7a. Improper Rejection......Page 65 4-7b. Improper Acceptance......Page 66 4-8. Conclusion......Page 67 5-2. Delays—Excusability and Compensability......Page 68 5-3. Noncompensable Delays......Page 69 5-5. CompensableTime Extensions......Page 70 5-6. Compensable Delays......Page 71 5-8. Delays—Site Access......Page 73 5-9. Concurrent Delays......Page 75 5-10c. Ripple Effect......Page 76 5-10d. Delays Due to Differing Site Conditions......Page 77 5-13a. Directive Not Required......Page 78 5-13c. Explicit Denial of Time Extension Not Required......Page 79 5-13d. Identification......Page 80 5-15. Acceleration Costs......Page 81 5-16. Conclusion......Page 82 6-2. Types of Records......Page 83 6-4. Cost Account System......Page 84 6-8. Cash Flows......Page 85 6-10. Computer (Cost) Reports......Page 86 6-12. Photographs......Page 87 6-13. Special Forms for Claims and Change Order Records......Page 88 6-14. Monthly Claims Review......Page 89 6-15. Conclusion......Page 90 7-1a. Description of CPM......Page 91 7-1b. Obstacles to Use of CPM for Construction Scheduling......Page 92 7-2. Use of CPM in Claims Analysis......Page 93 7-3. Pitfalls to Avoid in CPM Claims Analysis......Page 94 7-4a. Essential Elements in Constructing the Schedule......Page 96 7-4b. Additional Considerations of Schedule Preparation......Page 97 7-6. Float—Early Completion......Page 98 7-8. Voluntary versus Constructive Acceleration......Page 101 7-9b. Fragnet (Windows, Chronological Impact)......Page 102 7-9c. Time Impact Analysis......Page 103 7-9e. Comparison Chart of CPM Analysis Methods......Page 104 7-10. Scheduling Expert's Analysis......Page 105 7-11. Conclusion......Page 106 8-2. General Contractor's Performance......Page 107 8-4. Subcontractor-Owner Claims......Page 108 8-5b. Supplier Purchase Orders......Page 109 8-5c. Proprietary Specifications—Contractor's Right to Substitute......Page 110 8-6. Documentation of General Contractor Subcontractor/Supplier Transactions......Page 111 8-7b. Miller Act......Page 112 8-8. Subcontractor-Specific Claims Publications......Page 113 8-9. AGC/ASA/ASC Standard Form Contract......Page 114 8-10. Conclusion......Page 116 9-2a. Description of Forward Pricing and Postpricing......Page 117 9-2b. Forward Pricing Is Typically Preferred......Page 118 9-3a. Total Cost and Modified Total Cost......Page 119 9-3b. Last Resort......Page 120 9-4. Cost Analysis......Page 121 9-4c. Estimating Reasonable Cost......Page 122 9-5b. Pricing Elements and Details......Page 123 9-5c. Production Rates......Page 124 9-5d. Overhead and Profit......Page 125 9-7. Material Quantities and Prices......Page 129 9-8a. How Impact Costs Are Incurred......Page 130 9-8c. Pricing Inefficiency and Loss of Productivity......Page 131 9-8d. Material and Equipment Costs......Page 133 9-9a. Interest Costs......Page 134 9-9b. Legal Fees, Change Orders, and Claim Preparation Costs......Page 135 9-9e. Federal Cost Principles......Page 136 9-10. Conclusion......Page 137 10-1. Introduction......Page 138 10-3. Forward Pricing Claims......Page 139 10-4. Preparation for Negotiation Meeting......Page 140 10-5. Tactics—Control of the Meeting......Page 141 10-6. Tactics—Large Claims......Page 142 10-8. Other Negotiation Considerations......Page 143 10-10. Conclusion......Page 144 11-2. Disputes Avoidance......Page 145 11-3c. Elements of Success......Page 146 11-3d. Obstacles to Partnering......Page 147 11-4a. Dispute Review Boards Defined......Page 149 11-4b. DRB Procedures......Page 150 11-4d. DRB Effectiveness and Success......Page 151 11-4g. DRB Summary......Page 153 11-6. Geotechnical Design Summary Report......Page 154 11-7. Arbitration......Page 155 11-8. Mediation......Page 156 11-9a. Minitrials......Page 157 11-10. Alternative Dispute Resolution Act and the Federal ADR Experience......Page 158 11-11. Formal Administrative and Judicial Dispute Resolution......Page 159 11-11a. Federal Contracts......Page 160 11-12. Conclusion......Page 161 12-2. Federal Clauses......Page 162 12-2a. Termination for Default......Page 163 12-2b. Termination for Convenience......Page 164 12-3a. Termination for Cause......Page 166 12-3c. Termination by Contractor......Page 167 12-4. Conclusion......Page 168 13-2. Roles of Construction Team......Page 169 13-3. Role of Alternative Dispute Resolution......Page 171 13-4. Legal Considerations......Page 172 13-6. Claims Consciousness......Page 173 1. Contract Disputes Act of 1978/FAR 33.2......Page 176 2. Relevant FAR Clauses—Subparts 52 and 33......Page 181 3. AIAA201......Page 203 4. EJCDC Selected Clauses (1910-8)......Page 209 5. Site Investigations Report Form......Page 220 6. Restatement of Contracts......Page 222 7. Overtime Statistic References......Page 223 8. Daily Production Report Form......Page 224 9. Change Order Initiation Form......Page 225 10. Change Order Status Report......Page 228 11. Schedule Cover Letter......Page 229 12. ACG/ASA/ASC Selected Clauses......Page 230 13. Flat Rate System......Page 237 14. Pricing Formats......Page 239 15. Pricing Checklist......Page 240 Chart......Page 241 Efficiency Loss......Page 242 Unproductive Labor at Crew Overloading......Page 243 BLS#917......Page 244 Cumulative Effect on Overtime......Page 245 17. Cost Principles—F.A.R. Clauses......Page 246 18. ASBCA ADR Sample Forms......Page 255 19. DART Declaration......Page 262 20. Index to Legal Citations......Page 264 BIBLIOGRAPHY/REFERENCES......Page 268 D......Page 270 R......Page 271 Z......Page 272