Fundamentals of Construction Claims

304 Pages·2022·3.315 MB·English

by  William J. McConnell, JD, MSCE, PE

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FundamentalsofConstructionClaims
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Fundamentals of Construction Claims
A 9-Step Guide for General Contractors, Subcontractors,
Architects, Engineers, and Owners
William J. McConnell JD, MSCE, PE
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Contents
Acknowledgments ix
1 Introduction 1
I. Step1:ReviewtheDisputeResolutionProcedure 2
II. Step2:DefinetheTypeofDispute 2
III. Step3:FulfillPre-ClaimRequirementsandNotice
Requirements 4
(cid:2) IV. Step4:EstablishEntitlement 4 (cid:2)
V. Step5:CalculateDelay 4
VI. Step6:CalculateDamages 5
VII. Step7:FormattingandPackagingtheClaim 5
VIII.Step8:Non-BindingDisputeResolution 6
IX. Step9:BindingDisputeResolution 6
X. OtherTopics 6
XI. Summary 8
2 Step1:ReviewtheDisputeResolutionProcedure 9
I. StandardContractFormsforOwner–Contractor
Agreements 11
II. StandardContractFormsforContractor–Subcontractor
Agreements 17
III. StandardContractFormsforOwner–Designer
Agreements 19
IV. StandardPurchaseOrderFormsforPurchaser–Vendor
Agreements 21
V. Summary 23
Notes 23
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vi Contents
3 Step2:DefinetheTypeofDispute 25
A. DesignIssues 25
B. AdministrationIssues 27
C. PerformanceIssues 28
D. Third-PartyIssues 29
E. ChangeOrderNegotiationIssues 30
Summary 30
4 Step3:FulfillPre-ClaimRequirementsandNotice
Requirements 31
I. Pre-ClaimRequirements 32
II. ClaimNoticeProvisions 40
5 Step4:EstablishEntitlement 55
I. Introduction 55
II. TypicalContractorClaimsAgainstOwners 56
III. TypicalOwnerClaimsAgainstContractors 80
IV. TypicalSubcontractorClaimsAgainstContractors 103
V. TypicalContractorClaimsAgainstSubcontractors 123
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VI. TypicalDesignerClaimsAgainstOwners 140
VII. TypicalOwnerClaimsAgainstDesigners 146
VIII.Summary 156
Note 156
6 Step5:CalculateDelay 157
I. ContractRequirementsforTimeExtensionRequests 158
II. SchedulingOverview 158
III. TypesofDelays 159
IV. ConcurrentDelays 160
V. PacingDelays 162
VI. ReviewofForensicSchedulingMethodologies 164
VII. Summary 177
Notes 178
7 Step6:CalculateDamages 179
I. MethodstoCalculateDamages 180
II. MarkuponDamages 193
III. DamageCategories 194
Notes 206
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Contents vii
8 Step7:FormattingandPackagingtheClaim 207
I. OverallClaimReportOutline 207
II. Formatting 208
III. WritingStyleandOrganization 209
9 Step8:Non-BindingDisputeResolution 215
I. Introduction 215
II. PrevailingPartyProvisions 215
III. SettlementMeetings 216
IV. Mediation 217
10 Step9:BindingDisputeResolution 221
I. Litigation 221
II. Arbitration 224
III. DiscoveryandDisclosures 228
IV. WitnessTestimony 231
V. DepositionTestimony 234
VI. TrialandArbitrationTestimony 242
(cid:2) Note 243 (cid:2)
11 TerminationClaims 245
I. TerminationforConvenience(OwnerTerminationof
ContractorforConvenience) 245
II. TerminationforCause(OwnerTerminationofContractwith
Contractor) 253
III. TerminationforCause(ContractorTerminationofContract
withOwner) 267
12 Non-ContractClaimsandDefenses 271
I. Introduction 271
II. Non-ContractClaims 271
III. Non-ContractDefensestoBreachofContractClaims 276
IV. Summary 277
13 AllocationofDamages 279
I. Step1DefiningtheIssueinDispute 280
II. Step2DefiningtheDutiesoftheVariousParties 280
III. Step3IstheIssuePatentorLatentinNature? 281
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IV. Step4WastheDefectiveWorkCoveredUpbyaSubsequent
Trade? 281
V. Step5DidaThird-PartyInspectorApprovetheWork? 281
VI. Step6DotheContractshaveIndemnificationClauses? 282
VII. Step7IdentifytheResponsibilityoftheVariousParties 282
VIII.GeneralTheoryofAllocationPercentages 283
14 Conclusion 285
Index 287
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