Construction Claims & Disputes Management

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SOCIETY of ENGINEERS UAE

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Section 1: Claims - What they are and why they occur

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Section 2: Claims Types Section 3: Claims and Contract Clauses Section 4: Claims Preparation and Documentation Section 5: Claims Avoidance

DW. Nabil Shehadeh 8

General: general term for the assertion of a right to money, property or a remedy.

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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 Completjon including, but not limited to, those related to prolongation, dsruption, acceleration, mitigation and the like.

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Section 1: Claims - What they are and why they occur

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Section 2: Claims Types

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Section 3: Claims and Contract Clauses Section 4: Claims Preparation and Documentation Section 5: Claims Avoidance

Dr. Nahil Shehadeh 0

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.

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

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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

ADR

Gorton Model Stagel: Stage2: Stage 3: Stage 4:

a Problem

a Disagreement

a Dispute a Confhct

Stage 5:

Litigation

Dr. Nabil Shehadeh 0

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Constructive Changes by Employer

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Delays

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Disruption

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Acceleration of work

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Differing Site Conditions

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Defective Specifications

Dr. Nabil Shehadeh 0

Definition Action or inaction by the Employer consatutes an order Employer has received a benefit Actual performance exceeds minimum contract standards Actually increased the cost of the work Types: l3xtt.a work, Over inspection

Extra Work The Employer requires work that is not in the contract The Employer misinterprets contract plans and specifications Response to an RFI Rejection O F submittals

Dr. Nabil Shehadeh

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Over Inspection Employer exceeds the bounds of its right to inspect Tolerances are enforced more strictly than the contract requires Inspectors dusect performance of the work in a specific way

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 Shehadeh 0

Site access or availability When the contractor scl~eduledactiviues have the need €or a right of way or a location to proceed and 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

Approval of Submittals Late approval unreasonable rejection

Adverse Weather The weather is adverse

'I'he weather is unusual for the location and time of year