Lecture 5 - Construction Claim and Dispute Flashcards
A ________ can be defined as a request for additional _________ compensation and/or a request for a _____ extension.
claim, financial, time
how are most claims resolved
by negotiation between parties
what is a claim that cannot be resolved by negotiation
a dispute
Typical Causes of Claim/Dispute
* Lack of project planning and inadequate design;
* Design changes, errors, omissions, and extras;
* Lack of coordination between project teams/contractors;
* Changed soil/site conditions /ground conditions;
* The combination of a fixed-price contract and fast-tracking;
* Insufficient bid preparation time;
* Inadequate bid information;
* Underestimation, mismanagement or bad workmanship by contractors;
* Misunderstanding of contract intentions, terms, and conditions or contract
interpretation;
* Various kinds of project delays some of which are compensable, some of
which are non-compensable;
* Late permits;
* Weather conditions;
* Unforeseen events such as the current Covid-19 pandemic
…….
Types of Construction Claims
Contract _________
* _________ designs, plans, and specifications
* Change of Work
documents, deffective
Types of Construction Claims
Negligence or Misinterpretation
* When a professional performs his/her duties ___________ out of ignorance or carelessness
* Delay Claim
* Damage Claim
* Price Escalation Claim
* Change in Site Condition
* Injuries
improperly
Common Strategies to Mitigate Claims
Pre-Construction Conference
* Meeting between ____ parties
* Technical detail, products “or equals”
* Pay ________, communication ______
all, estimates, protocols
Common Strategies to Mitigate Claims
Submittals: ________ or samples from designer/fabricator
* Assures that product ________ with intent/help
communication
design, complies
Common Strategies to Mitigate Claims
Request for Information (RFI)
* Clarifies designer’s _______ (before contract is signed, e.g. issued from contractor to owner who archives and submits
to design for clarification)
intent
Common strategies to mitigate claims
Change orders
* Scope and detail not _______ in contract are changed by the owner to create extra work that _______ to be compensated
defined, needs
Common Strategies to Mitigate Claims
What two types of documentation?
Written and Non-written
What are the common strategies to mitigate claims?
preconstruction conference, submittals, request for information, change orders, documentation
What are the Dispute Resolution Techniques from low hostility to high
prevention, negotiation, standing neutral, non-binding resolution, binding resolution, litigation
Dispute Review Board (DRB)
* Project-specific, _______-member panel
*DRB created at _______ of project
*DRB considers _________ as they occur
*DRB stays ________ on project progress
3, start, disputes, current
Mediation
Mediation process:
* Mediator _______ case in general prior to mediation session.
* At mediation session, mediator hears brief _________ of disputing parties.
* Disputing parties are ________
* Mediator shuttles between the parties to try to ________ the dispute.
reviews, arguments, separated, resolve
How long does meditation take?
1 day
The mediator charges a ______ fee
fixed
What is the success rate of mediation
more than 90% successful
Arbitration
*Dispute presented to arbitrators (___ or a panel of ____) for review and judgment
*Hearings at convenience of __________
* Process follows American Arbitration Assoc. rules
* Cost is ______ fee or hourly rate
* Can be _______ or non-binding
one, three, arbitrator, fixed, binding
Arbitrator does not have to be correct on the ______ or the ____
facts, law
Minitrial
* Simulated trial with ____ formal procedures
No _______ record (confidential)
less, public
Litigation
Traditional method: “See you in court”
* Judge and jury
* In _____ and expensive
* ________ decision
* _______ appeal rights
public, binding, some
