Contract Administration for Claims

In 2019, the ICCP's training partner, Claims Class, presented a series of monthly webinars on claims for the CIOB, based on the Construction Claims courses.* There were a good number of attendees. At the end of the webinar, attendees were invited to ask questions. All attendees received written answers to the questions that could not be answered during the webinar's allotted time. The following are questions and answers from the webinar on Contract Administration for Claims. Hopefully, this will provide some useful insight to our readers. Question 1 Question: Would it constitute a claim event if the Engineer, within a reasonable time-frame (3 months), fails to review and respond (approve/disapprove or comment) to a Variation for additional cost and time submitted pursuant to an Engineer’s Instruction and after the Contractor implementing the change at site? Answer: You have not explained what it is that you have submitted, so I am going to assume that this consists of an evaluation of…

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Dispute Resolution in the New Normal

The past year has seen radical changes in the way we socialise, work, and play. The resolution of disputes has been no exception in this regard. Many disputes have been resolved by means of virtual or online hearings. Parties in different locations, even their own homes, resolve their disputes remotely. Before the arrival of COVID-19, there were 10 million people using the video conferencing platform Zoom worldwide. By April 2020, there were 300 million users. This is great news for Zoom’s shareholders, if nothing else—according to their Q2 report, revenue was up 355% over Q2 2019. It could also be good news for the future of adjudications. Steering Committee member, Bill Bordill recently took part in a discussion on the use of virtual hearings and adapting to the ‘new normal’ in the UK statutory adjudication system. Panelists agreed a new way of dealing with disputes has opened up. They concurred it is now likely that many more disputes will be resolved this way in the future. Many…

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How to Ensure That a Dispute Adjudication Board is Formed Correctly

A blog subscriber recently asked how to set up and organise a Dispute Adjudication Board (DAB) and particularly what may be done when one of the parties refuses to agree to the appointment of the DAB in order to frustrate the dispute procedure. The following advice is related to the FIDIC contracts but may be equally applied to other forms of contract that have dispute board or adjudication provisions. A proactive action would be to include a list of several potential DAB members in the Contract. If the list has been prequalified in terms of qualifications and experience, particularly for the type of project being undertaken, then agreement of the board members should be straightforward. The Contract should state the time frame for the appointment of the DAB. FIDIC provides that the date should be stated in the Appendix to Tender. Contractors would be well advised to check that a reasonable date is included therein. If no list of potential DAB members is included in the Contract,…

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Notices: Should a Contractor Submit if He is Not Sure Whether He Intends to Make a Claim?

A blog follower recently asked for advice on the correct interpretation of FIDIC Sub-Clause 20.1 (Contractor’s Claims) with regard to situations where the Contractor is not sure if he will submit a claim or not. It’s not unusual for the Contractor to become aware of an event that may cause delay, the occurrence of additional Cost, or entitlement for additional payment. However, he may not be aware of the final effect of the event at the time that he becomes aware of the issue. For example, perhaps a delay will end before it affects the Time for Completion or perhaps an instruction received will not constitute a variation which will change a lump sum contract or, possibly, the Contractor will just decide that the value of the claim will not justify the time and cost involved in preparing it. The wording of the first part of this clause is as follows: ‘If the Contractor considers himself to be entitled to any extension of the Time for Completion and/or any additional payment, under any…

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5 Tips For Success When Claiming for Variations

During CPD talks and training courses, I am often asked if it is necessary to submit claims for a variation. Unfortunately, I am going to have to give a lawyer’s answer to this and say it depends. If the party responsible for administering the contract follows the procedure set out in most forms of contracts for instructing variations, then the answer is “no”. The variation has been acknowledged and it will either be measured and evaluated as part of the remeasurement (on a remeasureable contract) or as a separate evaluation leading to a change of the contract price of a lump sum contract. We all know, however, that in many cases, consultants do not formally issue instructions for variations to the contract and often give instructions which are not acknowledged as being variations. Examples can often take the following forms: Issue of revised drawings; Comments on shop drawings which require changes to the contract drawings; Comments on materials submittals which change the…

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