Construction contract claims and methods of avoiding contract litigation through dispute resolution alternatives.

240 Pages·2.2 MB·en_US

by  Lavigne, Joseph C.

CONSTRUCTION CONTRACT CLAIMS AND
METHODS OF AVOIDING CONTRACT LITIGATION
THROUGH DISPUTE RESOLUTION ALTERNATIVES
BY
JOSEPH C. LAVIGNE
A REPORT PRESENTED TO THE GRADUATE COMMITTEE
OF THE DEPARTMENT OF CIVIL ENGINEERING IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF SCIENCE
d/W
//C £/LQtAi
UNIVERSITY OF FLORIDA
Summer 1993

CONSTRUCTION CONTRACT CLAIMS AND
METHODS OF AVOIDING CONTRACT LITIGATION
THROUGH DISPUTE RESOLUTION ALTERNATIVES
BY
JOSEPH C. LAVIGNE
A REPORT PRESENTED TO THE GRADUATE COMMITTEE
OF THE DEPARTMENT OF CIVIL ENGINEERING IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF SCIENCE
IN CIVIL ENGINEERING
UNIVERSITY OF FLORIDA
Summer 1993

TABLE OF CONTENTS
CHAPTER ONE - INTRODUCTION
CHAPTER TWO - CONSTRUCTION CONTRACT RISK 5
2.1 Introduction 5
2.2 Establishing Contract Risk 6
2.3 Types Of Contract Risk 10
2.4 Allocating Contract Risk 12
2.5 Project Risk Management 15
2.6 Benefits Of Proper Risk Management 18
CHAPTER THREE - CHANGES, CLAIMS AND CONTRACT DISPUTES 20
3.1 Introduction 20
3.2 Change Order Terminology 21
3.2.1 Change 22
3.2.2 Constructive Change 22
3.2.3 Change Order 22
3.2.4 Claim 23
3.2.5 Dispute 23
3.3 Changes To The Contract 24
3.4 Change Order Categories 25
3.4.1 Owner And Designer Initiated Changes 25
3.4.2 Contractor Initiated Changes 26
3.4.3 Other Changes 26
3.5 What Instigates Claims 26
3.6 Classification Of Claims 28
3.6.1 Design Changes And Additions 28
3.6.2 Changed Site Conditions 29
3.6.3 Delay Claims 30
3.6.4 Acceleration, Compression, Impact
And Ripple 32
3.7 The American Institute Of Architects Process 33
3.7.1 Issuing A Change Directive 33
3.7.2 Decision Of The Architect 34
3.7.3 The Disputes Process 35
3.7.4 Arbitration 36
3.8 Effectiveness Of The AIA Claim Process 36