ENGINEERING PROJECT MANAGEMENT

ENG. HAT

EM ADEL H

AMMAD

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Construction Delay Construction Delay ClaimsClaims

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DEFINITIONS

Delay: An event or a condition that results in finishing the project later than stipulated in the contract .

Claim: a request from one contracting party to another party for additional compensation ,a time extension , or both .

Note: a claim is not always a negative action ,nor does it automatically indicate a confrontation .

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Delay claims and change order

A CO may be initiated at the request of the Owner ,Contractor , Sub-Contractor.

They must submit a request for quotation (RFQ) to initiate their CO , And this request could be an owner decision or a “what if ” inquiry , the quotation may includes a cost estimate and the impact on the schedule .

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To minimize the number of CO’s Owners should define the scope of the project and select a competent designer .

Many projects suffer from scope-creep syndrome , in which CO’s keep adding to the project budget and put it at levels far beyond what the owner originally planned.

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Reasons for delay claims

1- Differing site conditions

2- design errors or omissions

3- changes in Owner’s Requirements

4- Unusually adverse weather

5- Miscellaneous factors

6- Force Majeure

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Changes in owner’s requirements

May constitute a change in the contract and provide a foundation for Cos. Owners are always encouraged to know exactly what the want within their budgetary limits.

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Force Majeure (superior force)

In the context of construction projects, this term usually involves three important elements :

1- Something that is superior, overwhelming, or overpowering (i.e, can not be prevented)

2- Something that is unexpected or cannot be reasonably anticipated or controlled.

3- Something that has a destructive or disruptive effect on the construction process.

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Types of delays resulting in claims

1- Excusable delay.

2- Non excusable delay.

3- Concurrent delays.

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Delay claims prevention

1- Baseline schedules that don’t show logic.

2- baseline schedule with dates rather than logic.

3- Overuse of constrains.

4- Erasing footprints.

5- unrealistic baseline schedule.

6- schedule with logic errors.

7- skipping periodic updates.

8- lack of proper documentation.

9- lack of a reasonable time contingency.

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Communication means conveying information from one

party to other parties across the organization

Documentation means saving the information in an

organized manner for possible future retrieval.

Communication and documentation

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Communications and documentation must both contain:

Clear information.

Provide the proper a mount oh details.

Be stored efficiently, so that the information can be retrieved easily .

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1- The project baseline schedule that the owner accepted

2- Periodic schedule updates

3- Change orders

4- Job diary

5- Correspondence with the home office

6- Submittal records, such as shop drawings and material samples.

We must document these information

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7- Records of any transmittals

8- Meeting minutes

9- Procurement records

10- Government records

11- Records of payment

12- Project manager’s daily log

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Logbook should include daily information such as the following :

•Weather condition: temperature, wind.

•Work performance during that day.

•The number of workers on-site.

•Equipment on-site and its condition.

•Any accidents that occurred on-site

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Methods of resolving claims

Negotiation

The most direct method for resolving any type of construction claim.

Requires certain skills that reduce the gap between the negotiation parties.

The objective: is to reach a solution that might be acceptable to both parties.

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Mediation When negotiation does not work, either because

of lack of trust or a lack of skills, mediation may be an option.

The mediator may be an individual or a team. Dispute review boards

The owner and the contractor select an independent neutral panel with construction experience when the contract is signed .

Rather than waiting until the end of project to settle claims, (DRBs) resolve disputes as they arise.

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Arbitration It is usually a formal process performed by an

independent professional arbitrator.

Arbitration is voluntary.

Arbitration does not require the use of lawyers

Litigation When none of the previous work and parties

can not reach a settlement, the complaining party uses the other party in a court of law.

Construction litigation is usually complicated lengthy, and expensive.

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Method of Schedule Analysis

As- build schedule As – planned schedule Comparison schedule

Accelerated schedule

Recovery schedule

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As-Built Schedule

The as-built schedule should reflect what actually happened in the filed.

Activities are plotted by their real start and real finish , disregarding any logic

Contain real budget and real resources

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As – planned schedule

The as-planned schedule describes the manners in which the contractor in tended to built the project.

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Comparison schedule

revised to incorporate any claimed delays .

for delay claim the contractor submits two schedules.

without the causative factors

with the causative factors

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Accelerated schedule

Submitted by the contractor.

The project can finish by the contractor finish date.