Claims Presentation Flashcards
What is a construction claim?
Compensation over and above the agreed upon project-owner contractor agreement
- for alleged work that the contractor has done outside the initial agreed upon scope of work, or
- for work performed within the scope under conditions the contractor did not expect or contract for in initial agreement
What will the owner often do upon receiving a claim?
Usually counter-claim for conotractor non-performance, lack of quality, etc.
What 3 things may claims arise from?
- varied interpretation of contract specifications
- unpredictable and somewhat uncontrollable project delays
- non-performance of various firms involved in the construction process
What two things are at sake independent of cause of claim?
- the contractor’s profitability
- the financial success of the project for the owner
What two approaches can owners, design firms, and contractors take in regards to the claims process?
- efforts can center on steps to prevent claim from happening
- efforts can focus on how to create, prepare, or defeat a claim
What are 3 best practices when dealing with claims?
- sound record keeping
- cost quantification
- measurement of lost productivity
Name and describe the two issues that every construction claim involves.
Liability: whether work was performed according to specification or whether individuals/firms performed their required duties
Financial Damages: centers on quantification of alleged financial damages, dependent on accounting practices, productivity measurement, and scheduling
What must a contractor do to win a claim?
Prove liability AND damages
What must an owner do to defeat a claim?
Disprove liability OR damages
What’s the difference between a claim vs. a lawsuit?
A lawsuit relates to a dispute regarding the initial contract agreed to by owner and contractor - it focuses on original contract agreement
A claim focuses on work outside agreed-upon contract, or events that take place outside scope of the contract
What 3 step process do legal professionals follow to prepare and win a case?
- Research to familiarize themselves with the problem or case
- Fact finding and research to include deposition (sworn out of court testimony) to prepare for the case
- presentation of the case
Who ultimately bears the cost of the claims?
Often the claimant has financial backing of isurance company which pays for preparing/defending claim
What 4 categories are used to characterize construction claims?
- delay claims
- scope-of-work claims
- acceleration claims
- changing site condition claims
What is a Delay Claim?
a claim that arises when contractor is not able to perform work during time planned to do it
What are 4 types of Delay Claims?
- Owner-Purchased material and Delay Claims
- Uncontrollable Events and Delay Claims
- Design-Related Delay Claims
- Interdependent Contractor Performance Delay Claims
