CLAIMS MANAGEMENT

PRESENTATION OUTLINE INTRODUCTION TYPICAL CLAIMS AGAINST OWNER TYPICAL CLAIMS AGAINST CONTRACTOR CRITICAL PATH METHODS UTILIZATION DISPUTE ANALYSIS PROCEDURES DISPUTE PREVENTION SUGGESTIONS RECORDS MANAGEMENT

TYPICAL CLAIMS AGAINST OWNER

POOR PROJECT PLANNING ILL-DEFINED SCOPE/ REQUEST

o SHORTENED PROPOSAL PREPRATION PERIODS o LIMITED SITE INVESTIGATION o UNREASONABLE PROJECT TIMES

SCOPE CHANGES

ERRORS & OMISSIONS

STRIKES & ACTS OF GOD

CONSTRUCTIVE CHANGES

CONTRACT ACCELERATION & EXPEDITING

WORK SUSPENSION & STOPPAGES

SITE ACCESS OR SITE AVAILABILITY

OTHER CONTRACTOR INTERFERENCE & DELAYS

Low Ball Bidders

PROJECT OWNER USUAL MISTAKES APPROVAL DELAYS POOR COMMONICATIONS EXCESSIVE NUMBER OF CHANGES UNREASONABLE BEHAVIOR PAYMENT DELAYS

o INCOMPLETE WORK o DELAY o UNEXPECTED RESULTS USUAL DISPUTES AGAINST CONTRACTOR

CPM-SCHEDULES SHOULD INCLUDE TOTAL SCOPE OF THE JOB JOB PERFORMANCE SEQUENCE ACTIVITIES DURATION RESOURCES NEEDED TO ACCOMPLISH THE ACTIVITIES

CONTRACTS SHOULD INCLUDE o CPM APPROVAL TIME o CPM UPDATING PROCEDURES o CPM REVISION PROCEDURES o CPM AS A TOOL TO SETTLE DISPUTES

LEGAL IMPLICATIONS RESOURCES UTILIZATION MUST BE PERFORMED ACCORDING TO THE APPROVED SCHEDULE. CONTRACTORS MAY BE LIABLE FOR PRODUCTIVITY LOWER THAN THAT SHOWN ON THE SCHEDULE. MANPOWER BUILD UP AND LAY OFF SHOULD BE ACCORDING TO THE APPROVED CPM. INSPECTIONS AND APPROVALS BY THE OWNER SHOULD FOLLOW THE CPM SPECIFICATION.

USUAL DAMAGES CLAIMED BY CONTRACTORS  FIELD OFFICE EXPENSES  MAIN OFFICE EXPENSES  EQUIPMENT EXPENSES  ESCALATED MATERIAL COSTS  CLAIM PREPARATION COSTS  INTEREST ON CLAIM AMOUNT  INEFFICIENCY AND ACCELERATION  LOSS REVENUES  COST OF CORRECTING WORK

HAVE CLEAR OBJECTIVES COMPLETE DESIGN AND KNOW ITS LIMITATIONS GIVE BIDDERS ENOUGH TIME DO NOT SCHEDULE IMPOSSIBLES WRITE A CLEAR CONTRACT CLEARLY IDENTIFY RESPONSIBILITIES RECOMMENDATIONS

QUESTION LOW BIDDERS BE REASONABLE AT ALL TIME EXPEDITE CHANGE ORDERS PROCESSING KEEP GOOD RECORDS RESPOND QUERIES PROMPTLY DOCUMENT DECISIONS REGARDLESS HOW SMALL THEY ARE RECOMMENDATIONS

Documentation

ESSENTIAL RECORDS ☺PROGRESS SCHEDULES ☺CORRESPONDENCE FROM AND TO THE CONTRACTOR ☺DAILY AND WEEKLY REPORTS ☺CHANGE ORDER LOG ☺PURCHASE ORDERS AND DELIVERIES ☺PHOTOGRAPHS ☺JOB SITE LOG ☺PLAN AND SCHEDULES REVISIONS ☺MINUTES OF DAILY AND WEEKLY MEETINGS

REPORTS SHOULD INCLUDE ISSUE DATE AND WEATHER CONDITIONS MATERIALS UTILIZED AND FUTURE REQUIREMENTS MANPOWER LEVELS EQUIPMENT USED AND IDLED SUBCONTRACTORS PERFORMANCE DETAILS ON CONTROVERSIAL MATTERS CHANGE ORDER WORK OUTSTANDING DISPUTES SAFETY ON THE JOB SITE

C.O. RECORDS SHOULD INCLUDE INITIATIONS COST AND TIME ESTIMATES APPROVALS CURRENT WORK STATUS OVERALL SCHEDULE IMPACT ANALYSIS REQUEST FOR PROJECT COMPLETION REVISIONS DAILY PROGRESS AND EXPECTED COMPLETION DATE.

CLAIM SUMMARY ORIGINAL (APPROV.) SCHEDULE START 9/30 MC UPDATE SCHEDULE CONTRACTOR'S CLAIM RECOMMENDED M. C. MILESTONE ADJUSTMENT CONTRACTOR'S OWN DELAY 10/30 MC 30 DAYS UPDATE AS OF 6/30 ISSUE C.O. 30 DAYS BEHIND 11/19 MC 10/20 MC 20 DAYS TOTAL CLAIM CONTRACTOR'S ANALYSIS

ERECT WALLS INSTALL WINDOWS PAINTING FIRST FIX PAINTING SECOND FIX INSTALL DOORS M. C.

FORMULATE THE CLAIM PANEL COMMITTEE THE BOARD OF APPEALS NEGOTIATION WITH CONTR. DETERMINE PROJ. STATUS ADJUST THE ACTIVITY TIME COS T AND MANPOWER COMPARE THE ORIGINAL OR "CURRENT" WITH UPDATE IMPACTED SCHEDULE RECOMMENDATION TO MANAGEMENT - REVIEW CONTRACT - REVIEW DRAWS/SPECS - MINUTES OF MEETINGS - REVIEW C.O. LOG.- REVIEW CORRESPOND- ENCE TO/FROM CONT.- UPDATE SCHEDULES - IMPACT SCHEDULES - PRODUCE RECOMM- ENDATION CLAIM PANEL AGREES ON NEGOTIATION TERMS SETTLEMENT CONTINGENCY: "CHANGE ORDER", ETC. UPDATE SCHEDULE TO (AHEAD, BEHIND, & ON SCH.) NEGOTIATION MEETING SETTLEMENT NO SETTLEMENT ANALYZE CLAIM PRESENTRESULTS NO SETTLEMENT ARBITRATION SETTLEMENT END SIGN PAPERS NO SETTLEMENT CLAIM ANALYSIS CYCLE

Charisma

charisma A rare quality or power attributed to those persons who have demonstrated an exceptional ability for leadership and for securing the devotion of large numbers of people.

You CAN please all the people all the time... people will teach you how they like to be treated, if you'll only listen to what they say and watch what they do 10 Qualities of Charismatic People - Tony Alessandra