Construction Claims

The high potential for numerous issues to arise during construction contracts means it is vital to be able to address and mitigate those issues in their most common form: claims. You will gain a comprehensive understanding of recognizing a potential claim, pricing considerations, terminations, and the role of the Civilian Board of Contract Appeals and the courts.

Learning Objectives

• Describe the claims process
• Recognize a potential claim
• Provide options for resolving disputes

Course Topics

Fundamental Issues and the Claims Process

• Claims Definition
• Sovereign Immunity
• Evolution of the Jurisdictional Authority of Courts
• Other Complaint Forums
• The Contract Disputes Statute
• Exercise: Explosion-Proof Doors
• Exercise: Allowable Indirect Costs
• Exercise: Unsatisfactory Performance Rating
• Exercise: Wages under Wage Rate Requirements (Construction) Statute
• Exercise: Fraudulent Progress Payments
• Exercise: Election Doctrine Case Study
• Exercise: Settlements by Determination Case Study
• Exercise: Proper Acceptance of Work? A Case Study

Changes in the Work/Contract Modifications

• Changes
• Supplemental Agreements
• Impossibility or Impracticability of Performance
• Constructive Changes
• Exercise: Should the Contract Be Modified?
• Exercise: Painting Requirements
• Exercise: Noncompliant Water Stop
• Exercise: Acceptable Ponding
• Exercise: Brick Culling Case Study
• Exercise: Rock Removal Case Study
• Exercise: PIB Roof Case Study

Principles of Equitable Adjustments

• Sample Claim Format
• Remedies and Scope of Relief for the Equitable Adjustment Claim
• Allowability
• Equitable Adjustments
• Exercise: Mean Guide
• Exercise: Outside Utilities Work Case Study
• Exercise: Horizontal vs. Vertical Construction Case Study

Claims under Other than the Changes Clause

• Differing Site Conditions
• Suspension of Work
• Time-Related Claims
• Exercise: Delays
• Exercise: Location of Water Pipe
• Exercise: Ditch Cassidy & Sons
• Exercise: Which Revision of the Drawings?
• Exercise: Underground Gas Mains
• Exercise: Debris Removal Case Study
• Exercise: Differing Site Conditions Case Study
• Exercise: Building Delays Case Study
• Exercise: Early Turnover Area Case Study

Delays

• Analyze Delays
• Effects of Delays on Time
• Effect of Delays
• Process Delay Claims
• Exercise: Case Study: Default Termination for Delays

Cost Elements of a Claim

• The Different Cost Elements
• Unabsorbed Overhead
• Exercise: Equipment Costs
• Exercise: Fross Electric Labor Costs
• Exercise: Cutsforth Concrete Labor Costs
• Exercise: Overhead Costs
• Exercise: Eichleay Formula
• Exercise: Phased Design and Construction Case Study
• Exercise: Contract Extension Case Study
• Exercise: Did the Delay Cause the Contractor to Standby? A Case Study

Resolution of the Claim

• Accord and Satisfaction (Settlement)
• Proceedings Before a Board of Contract Appeals
• Proceedings Before the U.S. Court of Federal Claims
• Equal Access to Justice Act
• Exercise: Burial Area Development Case Study