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Construction Contract Claims, Changes & Dispute Resolution, 1998
- CONTENTS
- FOREWORD
- ACKNOWLEDGEMENT
- PREFACE
- 1. INTRODUCTION [Go to Page]
- 1-1. Claims Background
- 1-2. Definition of a Claim
- 1-3. Purpose of Book
- 1-4. Public Contracts (Heavy Construction)
- 1-5. Private Contracts (Commercial and Residential)
- 1-6. Beyond the Contract—Principles of Construction Law
- 1-7. Policies and Procedures for Administration [Go to Page]
- 1-7a. Necessity of Procedures for Administrative Relief
- 1-7b. Basic Procedures for Claims and Change Order Administration
- 1-7c. Active Claims Policy
- 1-7d. Active Claims Program
- 1-7e. Procedural Roadblocks and How to Overcome Them
- 1-8. Review of Chapters
- 1-9. Owners, Designers, and Their Representatives
- 2. IDENTIFICATION AND NOTIFICATION [Go to Page]
- 2-1. Claims Consciousness
- 2-2. Early Identification
- 2-3. Identification of Claims and Change Orders [Go to Page]
- 2-3a. Importance of Identification
- 2-3b. First Requirement of Identification—Knowledge of Contract Documents
- 2-3c. Frame of Reference
- 2-3d. Communications
- 2-3e. Second Requirement of Identification—Familiarity with Legal Concepts and Rights
- 2-3f. The Changes Clause
- 2-3g. Warning Signs of Claim Situations
- 2-4. Notification of Claims and Change Orders
- 2-5. Notification—Time Requirements [Go to Page]
- 2-5a. Federal Clauses
- 2-5b. Private Clauses
- 2-6. Late Notice
- 2-7. Failure to Notify
- 2-8. Notification—Problems of Owners
- 2-9. Federal Contracts and the Contract Disputes Act [Go to Page]
- 2-9a. Request for Final Decision, Claims Certification
- 2-9b. Notice Requirements for Appeal of Decision
- 2-9c. Failure to Request Decision or Certify Claim
- 2-9d. Appeal of Board Decision
- 2-9e. Additional Notes on Claims Certification
- 2-10. Conclusion
- 3. DIFFERING SITE CONDITIONS [Go to Page]
- 3-1. Introduction
- 3-2. Differing Site Conditions Clause
- 3-3. Type One Conditions—Examples
- 3-4. Type Two Conditions—Examples
- 3-5. Man-Made Conditions—Previous Construction
- 3-6. Forces of Nature
- 3-7. Site Investigation [Go to Page]
- 3-7a. Duty to Investigate: Reasonable Investigation
- 3-7b. Disclaimers for Differing Site Conditions
- 3-7c. Representations of Conditions Must Be Specifically Incorporated in Specifications
- 3-7d. Inadequate Investigation
- 3-7e. Site Investigation Requirements
- 3-8. Summary and Checklist
- 4. INTERPRETATION AND REQUIREMENTS OF CONTRACT SPECIFICATIONS [Go to Page]
- 4-1. Introduction
- 4-2. Rules of Contract Interpretation [Go to Page]
- 4-2a. Background
- 4-2b. Reasonableness
- 4-2c. Read the Contract as a Whole
- 4-2d. Language
- 4-2e. Custom or Usage
- 4-2f. Parol Evidence Rule
- 4-2g. "Against the Drafter"
- 4-2h. Conduct
- 4-3. Defective Specifications [Go to Page]
- 4-3a. Introduction
- 4-3b. Suitability of Designated Methods or Materials
- 4-3c. Possibility and Practicality
- 4-3d. Cardinal Changes
- 4-3e. Disclosure of Knowledge
- 4-3f. Cost and Notification Aspects
- 4-4. Duty to Seek Clarification [Go to Page]
- 4-4a. Obligation to Notify Owner of Errors or Discrepancies
- 4-4b. Zone of Reasonableness
- 4-4c. Two-Step Test
- 4-4d. "Not Part of Contract"
- 4-5. Duty to Inform
- 4-6. Duty to Proceed
- 4-7. Inspection: Duty to Inspect [Go to Page]
- 4-7a. Improper Rejection
- 4-7b. Improper Acceptance
- 4-8. Conclusion
- 5. DELAYS AND ACCELERATIONS [Go to Page]
- 5-1. Introduction
- 5-2. Delays—Excusability and Compensability
- 5-3. Noncompensable Delays
- 5-4. Nonexcusable Delays
- 5-5. CompensableTime Extensions
- 5-6. Compensable Delays
- 5-7. Unreasonable Delays
- 5-8. Delays—Site Access
- 5-9. Concurrent Delays
- 5-10. Proving Delay and Delay Costs [Go to Page]
- 5-10a. Disruption, Loss of Efficiency, and Loss of Learning Curve
- 5-10b. Out-of-Sequence Work
- 5-10c. Ripple Effect
- 5-10d. Delays Due to Differing Site Conditions
- 5-11. No Damage for Delay Clauses
- 5-12. Three Types of Acceleration
- 5-13. Constructive Acceleration [Go to Page]
- 5-13a. Directive Not Required
- 5-13b. Notice, Request for Time Extension
- 5-13c. Explicit Denial of Time Extension Not Required
- 5-13d. Identification
- 5-14. Proving Delays, Time Extensions, and Acceleration
- 5-15. Acceleration Costs
- 5-16. Conclusion
- 6. RECORDS AND DOCUMENTATION [Go to Page]
- 6-1. Introduction
- 6-2. Types of Records
- 6-3. Time Cards
- 6-4. Cost Account System
- 6-5. Production Rates
- 6-6. Material Receipts
- 6-7. Schedules
- 6-8. Cash Flows
- 6-9. Correspondence and Transmittal Logs
- 6-10. Computer (Cost) Reports
- 6-11. Daily Reports
- 6-12. Photographs
- 6-13. Special Forms for Claims and Change Order Records
- 6-14. Monthly Claims Review
- 6-15. Conclusion
- 7. USE OF PROJECT SCHEDULES AND THE CRITICAL PATH METHOD IN CLAIMS [Go to Page]
- 7-1. Introduction [Go to Page]
- 7-1a. Description of CPM
- 7-1b. Obstacles to Use of CPM for Construction Scheduling
- 7-2. Use of CPM in Claims Analysis
- 7-3. Pitfalls to Avoid in CPM Claims Analysis
- 7-4. Construction of As-Planned Schedule [Go to Page]
- 7-4a. Essential Elements in Constructing the Schedule
- 7-4b. Additional Considerations of Schedule Preparation
- 7-5. Float
- 7-6. Float—Early Completion
- 7-7. Concurrent Delay
- 7-8. Voluntary versus Constructive Acceleration
- 7-9. Schedule Analysis Techniques for Claims Support [Go to Page]
- 7-9a. Impacted As-Planned Analysis
- 7-9b. Fragnet (Windows, Chronological Impact)
- 7-9c. Time Impact Analysis
- 7-9d. Collapsed As-Built ("But For")
- 7-9e. Comparison Chart of CPM Analysis Methods
- 7-9f. Other Methods
- 7-10. Scheduling Expert's Analysis
- 7-11. Conclusion
- 8. SUBCONTRACTORS AND SUPPLIERS [Go to Page]
- 8-1. Introduction
- 8-2. General Contractor's Performance
- 8-3. Contractor-Subcontractor Relationship
- 8-4. Subcontractor-Owner Claims
- 8-5. Suppliers [Go to Page]
- 8-5a. Delays, Drawing Approvals
- 8-5b. Supplier Purchase Orders
- 8-5c. Proprietary Specifications—Contractor's Right to Substitute
- 8-5d. Supplier Schedules
- 8-6. Documentation of General Contractor Subcontractor/Supplier Transactions
- 8-7. Other Contractor-Subcontractor Issues [Go to Page]
- 8-7a. Severin Doctrine
- 8-7b. Miller Act
- 8-7c. Sponsoring Subcontractor Claims
- 8-8. Subcontractor-Specific Claims Publications
- 8-9. AGC/ASA/ASC Standard Form Contract
- 8-10. Conclusion
- 9. PRICING [Go to Page]
- 9-1. Introduction
- 9-2. The Two Types of Pricing [Go to Page]
- 9-2a. Description of Forward Pricing and Postpricing
- 9-2b. Forward Pricing Is Typically Preferred
- 9-2c. Dealing with Risk in Forward Pricing
- 9-2d. Postpricing
- 9-3. Total Cost [Go to Page]
- 9-3a. Total Cost and Modified Total Cost
- 9-3b. Last Resort
- 9-3c. Four Conditions for Total Cost Claim
- 9-4. Cost Analysis [Go to Page]
- 9-4a. Actual Cost
- 9-4b. Reasonable Costs Developed from Existing Job Data
- 9-4c. Estimating Reasonable Cost
- 9-5. The Proposal—Request for Equitable Adjustment [Go to Page]
- 9-5a. General Pricing Philosophy
- 9-5b. Pricing Elements and Details
- 9-5c. Production Rates
- 9-5d. Overhead and Profit
- 9-6. Use of Forms
- 9-7. Material Quantities and Prices
- 9-8. Impact and Inefficiency Costs [Go to Page]
- 9-8a. How Impact Costs Are Incurred
- 9-8b. Specific, Identifiable Extra Work
- 9-8c. Pricing Inefficiency and Loss of Productivity
- 9-8d. Material and Equipment Costs
- 9-9. Other Issues of Claims Pricing [Go to Page]
- 9-9a. Interest Costs
- 9-9b. Legal Fees, Change Orders, and Claim Preparation Costs
- 9-9c. Use of Expert Opinions
- 9-9d. Critical Path Method Submissions for Payment Purposes
- 9-9e. Federal Cost Principles
- 9-10. Conclusion
- 10. NEGOTIATIONS [Go to Page]
- 10-1. Introduction
- 10-2. Preparation and Knowledge
- 10-3. Forward Pricing Claims
- 10-4. Preparation for Negotiation Meeting
- 10-5. Tactics—Control of the Meeting
- 10-6. Tactics—Large Claims
- 10-7. Other Negotiation Tactics
- 10-8. Other Negotiation Considerations
- 10-9. Authority to Negotiate
- 10-10. Conclusion
- 11. DISPUTES AVOIDANCE, RESOLUTION, AND ALTERNATIVE DISPUTE RESOLUTION [Go to Page]
- 11-1. Introduction
- 11-2. Disputes Avoidance
- 11-3. Partnering [Go to Page]
- 11-3a. Partnering Defined
- 11-3b. History of Partnering
- 11-3c. Elements of Success
- 11-3d. Obstacles to Partnering
- 11-3e. Results of Partnering
- 11-4. Dispute Review Boards [Go to Page]
- 11-4a. Dispute Review Boards Defined
- 11-4b. DRB Procedures
- 11-4c. DRB Costs
- 11-4d. DRB Effectiveness and Success
- 11-4e. International Applications
- 11-4f. Other Considerations of DRB Procedures
- 11-4g. DRB Summary
- 11-5. Escrow Bid Documents
- 11-6. Geotechnical Design Summary Report
- 11-7. Arbitration
- 11-8. Mediation
- 11-9. Other ADR Methods [Go to Page]
- 11-9a. Minitrials
- 11-9b. MedArb
- 11 -9c. Summary Trials before the Boards of Contract Appeals
- 11-9d. Hybrids of Mediation
- 11-10. Alternative Dispute Resolution Act and the Federal ADR Experience
- 11-11. Formal Administrative and Judicial Dispute Resolution [Go to Page]
- 11-11a. Federal Contracts
- 11-11 b. Private Contracts and State and Local Public Contracts
- 11-11c. Mechanics' Liens
- 11-12. Conclusion
- 12. TERMINATION [Go to Page]
- 12-1. Introduction
- 12-2. Federal Clauses [Go to Page]
- 12-2a. Termination for Default
- 12-2b. Termination for Convenience
- 12-2c. Notice of Termination
- 12-3. Private Clauses [Go to Page]
- 12-3a. Termination for Cause
- 12-3b. Suspension for Convenience
- 12-3c. Termination by Contractor
- 12-4. Conclusion
- 13. CONCLUSION [Go to Page]
- 13-1. The Claims, Changes, and Dispute Resolution Process
- 13-2. Roles of Construction Team [Go to Page]
- 13-2a. Contractor's Role
- 13-2b. Designer's Role
- 13-2c. Owner's and Owner's Representatives'Roles
- 13-3. Role of Alternative Dispute Resolution
- 13-4. Legal Considerations
- 13-5. Use of Experts
- 13-6. Claims Consciousness
- APPENDICES [Go to Page]
- 1. Contract Disputes Act of 1978/FAR 33.2
- 2. Relevant FAR Clauses—Subparts 52 and 33
- 3. AIAA201
- 4. EJCDC Selected Clauses (1910-8)
- 5. Site Investigations Report Form
- 6. Restatement of Contracts
- 7. Overtime Statistic References
- 8. Daily Production Report Form
- 9. Change Order Initiation Form
- 10. Change Order Status Report
- 11. Schedule Cover Letter
- 12. ACG/ASA/ASC Selected Clauses
- 13. Flat Rate System
- 14. Pricing Formats
- 15. Pricing Checklist
- 16. Productivity Charts [Go to Page]
- Construction Operations Learning
- Chart
- Crowding Loss Curve
- Efficiency Loss
- Composite Effects of Crew Overloading
- Unproductive Labor at Crew Overloading
- BLS#917
- Cumulative Effect on Overtime
- 17. Cost Principles—F.A.R. Clauses
- 18. ASBCA ADR Sample Forms
- 19. DART Declaration
- 20. Index to Legal Citations
- BIBLIOGRAPHY/REFERENCES
- INDEX [Go to Page]
- A
- B
- C
- D
- E
- F
- G
- I
- M
- N
- P
- R
- S
- T
- Z [Go to Page]