claims management

CONSTRUCTION CLAIMS

The Construction projects are never without claims. Although a construction project should be a final outcome of beneficial endeavor to all parties involved, being capital intensive the very nature of the construction industry often leads to adversarial relationships that can result in disputes. Each claim has its own distinct elements required for proof which are not interchangeable. Contractors and owners must know and understand thoroughly issues relating to construction claims and claims resolution procedures. In this way, they will be able to better protect their significant capital investment. On the contrary many claims that are produced without considering the Contractual and legal provisions, rules and standards of assessment and common sense in full which leads towards defective claims. It is in ARCHWAY’s experience that many claims are thrown out from the competent courts and tribunals due to issues with schedules, delay analysis or lacking of the essential legal requirements, such as proof of causation, proof of entitlement and adherence to legal/contractual principles of damage assessment leaving parties to substantial financial consequences.

ARCHWAY claims experts are qualified both in the fields of engineering and construction law and are members of Royal Institution of Chartered Surveyors and Chartered Institute of Arbitrators and Australian Institute of Quantity Surveyors. They are experts and well experienced in various types of construction claims.

ARCHWAY prepare, review, and challenge all types of construction claims to contractors, subcontractors and the employers, design professionals. Whether ARCHWAY is working for either of them, ARCHWAY helps you maximize profitability on every commission that it is involved in the best possible manner. Below our experience and capabilities on different types of claims.

Delay analysis and Extension of Time Claims

Delay, in its most basic form, involves an increase in the time necessary to complete the project beyond that which was contemplated at the time the contract was signed. Damages under a delay claim usually involve claims for extended resource and overhead costs and other forms of time related items.

However, in order to recover its additional costs, it is not simply adequate for the contractor to show that it was completed later than planned and that the contractor experienced coincident cost increases. There are many other aspects that the Contractor has to demonstrate for his claim to become successful. On the other hand undertaking a realistic and reliable delay analysis which closely reflect the respective events and their effects is conscientious exercise which requires attention to detail and several overlapping skills. The planning software that are used such like Primavera P6 and others are only use full to the extent the analyst understand the appropriateness of schedule logic, appropriateness of durations and fragnets, other anomalies and software abuses which can be commonly seen in the industry.

ARCHWAY’s delay analysis are master schedulers who are well verse in both delay analysis and the technical aspects of scheduling. They are professionally qualified in all aspects of delay analysis. They possess and in-depth knowledge and understanding and knowledge on of the Society of Construction Law’s Delay and Disruption Protocol 2nd Edition, AACE International Recommended Practice No. 29R-03 FORENSIC SCHEDULE ANALYSIS and AACE International Recommended Practice No. 52R-06 PROSPECTIVE TIME IMPACT ANALYSIS – AS APPLIED IN CONSTRUCTION.

They are well experienced in selecting an appropriate method of analysis in compliance to the best industry practices and giving due regards to the extent of information available to best present your case.

Variations and Loss and Expense

ARCHWAY has the complete expertise in quantifying your claims whether it is Variation, acceleration under the contract or loss and expense to due to extension of time or other claims. We will help to recover your losses and expenses including but not limited to field and home office overheads, additional cost of financing, additional expenses and other time related and task related costs.

ARCHWAY’s prime objective is to fully capture your entitlement with the relevant evidence and persuasive arguments to maximize your return. Our consultants have worked for both employers and contractors, which means we are highly skilled at maximizing benefit of variety of claims. When defending against claims, we are adept at employing persuasive and analytically contractual arguments.

Disruption Claims

Disruption shall be distinguished from delays. It is a material alteration in the performance conditions that were expected at the time of bid from those actually encountered, resulting in increased difficulty and cost of performance. They are in ARCHWAY’s experience usually be asserted by contractors against employers, subcontractors against contractors, contractors against subcontractors and when permitted by law, contractor’s against design professionals. The principles apply in all cases are equal. However, there are important test to be carried out when proving or assessing disruption claims such like reasonability of planned performance, owners conduct and contractual liability. These concepts must be balanced with frequently encountered contractual language inserted for the purpose of altering the otherwise implied rights of the parties.

ARCHWAY’s experts are well versed in proving and assessing different types of disruption claims.

Acceleration claims

Acceleration involves a speeding up of the work process. When a project is accelerated, the work must be accomplished in less time than was originally anticipated and/or budgeted. Whether it is a directed acceleration or constructive acceleration, ARCHWAY’s quantum experts will be able to assist you to recover your additional resource hours, equipment and supervision costs and other costs that are necessarily increase when a project is accelerated.

Differing site condition claims

A differing site condition, also referred to as a “changed condition”, “unforeseen site condition,” and “concealed condition,” generally involves a physical condition at a construction site (other than weather or force majeure) that exists at the time of contracting and is different from the conditions described in the contract documents or otherwise reasonably anticipated. Often when the enabling works are done by another subcontractor it is common for the contractor who enter into the site later finds that the conditions of the site is altered beyond the extent that is not expected during tender stage. Damages resulting from differing site conditions are some of the most challenging types of damages to compute and prove. ARCHWAY’s expert are fully competent in this respect to ascertain all the damages due to differing site conditions under the contract or otherwise.

Change in the scope claims

No project is perfectly designed, managed, administered, or performed. As a consequence, scope changes are inevitable. A key to a successful project is understanding the basis and requirements of the contract documents, and to recognize and manage these changes. Minor changes in the scope of work inevitably occur on every construction project, and virtually every contract contains provisions governing them. Because such changes are considered the normal course of business in the construction industry, parties often pay little attention to the applicable provisions of the contract, the impact of the changes on other work, and the actual cost of the scope change. Yet scope changes provide some of the most fertile ground for disputes in the construction industry. Therefore it is imperative that the impact of the changes and the provisions related to that to be fully captured and addressed. Our experts are fully capable of capturing all such changes and to establish and advance persuasive claims regarding change in scope claims.

Termination claims

Owners and contractors may seek to terminate a construction contracts for a variety of reasons and under a variety of circumstances. Whether the termination is for the convenience or for the default, whether it is under the contract or by law, whether it is initiated by you or the other party, ARCHWAY’s experts will assist you to prepare comprehensive termination claims and/or to establish if the contract/subcontract is validly terminated. ARCHWAY is also able to assist you in deciding whether it is appropriate to terminate or to take other remedy having regards to all circumstances. The rights of the parties and the recoveries available differ significantly depending on the type of termination and the provisions of the Contract.

Owners Claims against Construction managers, Design Professionals, General Contractors and design builders

Owners/developers of significant construction projects typically contract with one or more of the following four participants: construction managers, design professionals, general contractors, and design-builders. Each project participant owes particular duties and responsibilities directly to the owner. Those duties and responsibilities arise from the express or implied terms of the contract, applicable statutes and regulations, and the participants’ roles during the project. Failure to perform these duties with owner constitute a breach of contract. ARCHWAY’s experts undertake to prepare such claims by investigating the liability and causation and also determining the financial impact, or damages.

Owners delay claims

Delays are a fact of life in the construction industry. While most literature addressing construction delays focuses on impacts to the contractor, owners can suffer significant delay-related costs as well. Although owners attempt to draft contacts with an eye toward avoiding delay altogether, it is virtually impossible to accomplish this goal. Delays happen, and disputes follow in their wake. Sometimes the liquidated damages are not the solution or it can be that the inability to achieve the required important contractual milestones that is causing owner to incur damages. At the onset, it is essential for the owner to ensure that the risk of delay is appropriately allocated and position itself to prevail if delay claim becomes necessary.

It is often difficult to identify and prove delay damages, no matter how real or significant the damages are for the employer. That is why it is important, depending on the financial consequences to retain the best claim consultant to help identify, calculate, and prove each element of damage for which recovery is sought. A competent construction claims consultant can significantly improve the chances of success in establishing the essential elements of the employer’s delay claim. Our experts in archway are in a best positions to assist employers in this regard.

Claims for Lost of Profits

A cause of action for lost profits generally results from the breach of a construction contract, and seeks to recover either direct or consequential economic damages arising out of that breach. Additionally, it can be raised based on the tortious actions. It is therefore a significant aspect of a breach of contract claim. When preparing loss of profit claims, it is essential to identify what a party must establish before recovering such claims. Actually proving, with a reasonable certainty, the amount of lost profits is more difficult. As the name implies, lost profits represent the difference between what the party would have made and what it actually made. ARCHWAY’s experts undertake such exercise with a significant care by considering all relevant circumstances and by thoroughly investigating the expectancies at the time of entering to contract.

Payment Claims

Critical to every contractor is the expected cash flow under the payment terms of the contract. when payment is not made within the time stipulated or made in an untimely fashion, the contractor’s/subcontractor’s profits are affected, capital, financing, ability to perform other projects, bonding capacity and obligations to employees, subcontractors and suppliers are all negatively impacted. The damages can be significant than appear in the first instance. ARCHWAY’s experts will assist you to bring a persuasive claim under the contract and/or law to recover all such damages and sough for other remedies as stipulated by law.