Dr. Ralph Ellis Click to edit Master title style Click to edit Master subtitle style 1 Dispute Review Board Value Contributions Ralph Ellis, P.E., Ph.D.
Dr. Ralph Ellis Potential Benefits Direct saving in dispute resolution cost Direct savings in improved project performance Indirect value gained from DRB hearings
Dr. Ralph Ellis Savings in Dispute Resolution Cost Litigation cost is high –Legal expenses –Key personnel time –Loss of attention to your business The outcome is uncertain
Dr. Ralph Ellis Improved Project Performance Projects with DRBs on average perform better than projects without DRBs Lower cost growth Lower time growth
Dr. Ralph Ellis Analysis of FDOT Projects In 1994 FDOT began introducing DRBs From 2000 to 2002 we have both non-DRB and DRB projects This provides a rare opportunity to compare project performance
Dr. Ralph Ellis Performance Measures Time Cost Growth = Final Contract Amount - Original Contract Amount Original Contract Amount Time Growth = Final Contract Time - Original Contract Time Original Contract Time
Dr. Ralph Ellis
Findings DRBs resulted in: 2.7% Net Cost Growth Savings 15.1% Net Time Growth Savings
Dr. Ralph Ellis In Today’s Work Program 2.7% x $3 Billion = ? 15.1% x 60,000 days = 9000 days 9000 x $4,000 per day = ? DRBs result in significant direct savings.
Dr. Ralph Ellis DRB Hearing Recommendations are an Indicator of Areas that Need Improvement
Dr. Ralph Ellis Differing Site Conditions Pay Items and Quantities General Contract Interpretation Other Issues Design Errors Rework 24% 27% 21% 14% 7% 6% DRB Hearing Disputes by Category
Dr. Ralph Ellis 27% Differing Site Conditions Utility Conflicts Different Subsurface Conditions Different Project Environment
Dr. Ralph Ellis Differing Site Condition Existing Gravity Walls Plans do not show existing gravity wall and do not call for removal Walls are mostly underground, from the road they appeared to be a thickened sidewalk edge Contractor did not notice the walls during the pre- bid site visit Contractor request compensation for removing the walls
Dr. Ralph Ellis EOR : We generally we don’t call out items to be removed such as curb, sidewalks, etc. The intent is to have the contractor perform a site visit before submitting a bid as required by the specifications. Specification 2-4 Examine the contract documents and the site of the proposed work carefully before submitting a proposal for the work contemplated.
Dr. Ralph Ellis Cross sections did not show gravity wall.
Dr. Ralph Ellis Contractors also read the PPM.
Dr. Ralph Ellis Differing Site Conditions Environmental Issues Noise ordinances and permitting No night work ordinances Security procedures
Dr. Ralph Ellis Contract Interpretation Dispute Time Extensions Design-Build contract with A+B bid and I/D provisions Contractor believes that weather time extensions are applicable to Liquidated Damages and Disincentives
Dr. Ralph Ellis
Rework We have had several substantial disputes involving replacement of concrete structures due to cracking These are serious issues because of the time and cost
Dr. Ralph Ellis Lessons to Be Learned DRB hearing issues are indicators of areas that may need management attention. Owners can use this information to improve the design and construction process.
Dr. Ralph Ellis Official Construction Engineering Career Qualification Test Dr. Ellis
Dr. Ralph Ellis Find the Shortest Path from A to B A B
Dr. Ralph Ellis Find the Shortest Path from A to B A B Forget Engineering. Try Art History or Journalism
Dr. Ralph Ellis Find the Shortest Path from A to B A B Not a Construction Engineer Great Potential in Structural Engineering
Dr. Ralph Ellis Find the Shortest Path from A to B A B Definitely Construction Engineering. Great Potential as Owner’s Project Engineer
Dr. Ralph Ellis Find the Shortest Path from A to B A B Definitely Construction Engineering. Great Potential as a Contractor
Dr. Ralph Ellis Go Gators