CONTRACTOR’S CLAIM PERSPECTIVE My Disclaimer: This perspective is per Lloyd Wulf! Other contractors will disagree! What is a claim?  Types of claims and.

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Presentation transcript:

CONTRACTOR’S CLAIM PERSPECTIVE My Disclaimer: This perspective is per Lloyd Wulf! Other contractors will disagree! What is a claim?  Types of claims and why?  Reasons & Expectations  When/Where does a claim begin?  Project Documentation  Dispute Resolution  Parting Thoughts

WHAT IS A CLAIM? THE QUESTION! Was the “modified project” the same as the parties bargained for when the contract was let, or did the change and/or changes fundamentally alter the nature of the work being constructed?

MAJOR TYPES/CAUSES FOR CLAIMS 1. Very Unusual Circumstances. 2. Schedule Delay 3. Directed Changes 4. Differing Site Conditions: WYDOT Sec Differing Site Conditions 5. Defective/Deficient Contract Documents: Documents may NOT be error free.

REASONS FOR & EXPECTATIONS REASONS FOR FILING CLAIMS! 1. Recover Actual Loses! 2. Cover Mistakes in bidding process. 3. Ego/Power-I am right & WYDOT is wrong! EXPECTATIONS: A company should not expect compensation for a claim unless it has both damages and entitlement. Remember a company can have damages but no entitlement: a company can have entitlement but no damages.

WHEN & WHERE DOES CLAIM START? Bidding Process-Estimated costs of Labor, Equipment, Materials, Production, OH & Profit. Preconstruction-Original Schedule During Construction-Revised & Actual Schedules; Actual costs of Labor, Equipment, Materials; & Actual Production.

Bidding Process-I. 1. Pre-job tour preparation. 1.1 Read plans & specs. 1.2 Color Plans. 1.3 Make notes on plans/specs. 1.4 Questions-WYDOT RE 1.5 Questions-subs/suppliers. 1.6 Preliminary Schedule-Rough draft! 1.7 Does project fit in our schedule?

Bidding Process-II 2. Tour project with owners’ rep. 2.1 Ask lots of questions! 2.2 Make notes on plans, in project specifications and/or a notebook. 2.3 Take pictures/video 2.4 Know & Understand all “Construction Requirement” specials. 2.5 Take rep to lunch. If they offer to pay-let them!

Bidding Process-III 3. Set up project on estimating program and/or organize paper trail. 3.1 Down load WYDOT items to computer. 3.2 Estimating Information (Puzzle Pieces) A. Labor rates (Rate benefits, burden & OT) B. Equipment Rate (O/F/P/L & WP). C. Crews (Crushing/Grading/Lay-down) D. Materials (CMP/RCP, Concrete, ect.) E. Subcontractors & Suppliers

Bidding Process-IV 4. Estimating Project (Put Puzzle Together or Eating The Elephant-One Bite At a Time)  4.1 Set up activities for each bid item (Crushing/Haul & Lay-down)  4.2 Adjust crews: (Size-L & E/Production/Notes)  4.3 Set up & enter Subs/Suppliers quotes  4.5 List incidentals (bond, office trailers, rooms, meals)  4.6 Mark-up OH & PROFIT (THE DIRTY 5-LETTER WORD)  4.7 Review bid w/superiors  4.8 Submit Bid

Do Contractors Make Mistakes? Forgets lay-down crew in Crushed Base. Put wrong % of markup. Figured waste factor wrong. Checked wrong box sub vs contractor crew.

PROJECT DOCUMENTATION Bidding Process: Estimated Costs of Labor, Equipment, Materials, Production, OH & Profit. Preconstruction Meeting & Original Schedule During Construction: Revised & Actual Schedules; Track Actual Costs of Labor, Equipment, Materials; & Actual Production. Contractor’s Supervisors Project Diaries WYDOT Diaries-Contractors have access to them.

WYDOT Dispute Resolution GENERAL Notification Process Time Limits through Reasonable Resolution of Dispute Payment based on actual costs WYDOT may audit contractor’s records

WYDOT-Supporting Documents W/in 30 days of notifying engineer provide; Copies of all correspondence related to activity. Bid Preparation Documents: Data & Info Schedules & Revised Schedules Supporting Actual Cost Records

WYDOT Dispute Resolution Contract Amendments  General-No work w/out signing E-61  Differing Site Conditions  Engineer-Ordered Suspensions  Significant Changes in the Character of Work  Contractor-Engineer Notification 

Contractors wonder WHO in WYDOT Who in WYDOT asks for these documents and when? RE/DE/CE Who in WYDOT asks for the audit of the contractor’s records? RE/DE/CE Who in WYDOT does the audit?

Parting Thoughts! Ignorance (unknowing and/or not understanding the specifications), along with the lack of integrity, skill and responsibility are not excuses for contractors to game the system. Not all contractors are dishonest! If “claim” is legitimate-pay the man!