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ICTD International Centre for Training and Development

Project Close Out: Testing, Commisioning and Handover

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Description

In this course, you will analyze the issues when a dispute arises during the contract administration phase and examine its time and cost impacts on a project, thus preventing the dispute from becoming a claim. The time and energy expended in addressing claims resulting from unresolved disputes, putting them forward and defending against them is out of all proportion to the cost/benefit expected. Thus it is very important that a more cost-effective procedure be put in place to resolve such disputes amicably by the parties before project close-out.

Contract close-out is a very necessary part of project delivery and should be managed effectively in order to finalize project costs. A variety of case studies will be presented. In this workshop you will learn how to deal with contract claims since most projects are modified and changes are made within and outside the scope of work, in some instances delaying or accelerating the pace of work which may result in a claim if the dispute is not settled. This workshop is designed to provide expert, practical information and advice for the parties to analyze and understand the issues that arise when a claim is made, and also how to prepare and negotiate a settlement and produce a counterclaim if needed. The workshop will help you to resolve such claims in a more effective manner and avoid lengthy and expensive litigation. A variety of case studies will be presented.

Course Objectives

Upon successful completion of this course, the delegates will be able to:

  • Analyze Dispute Causes and Their Impact on Time and Cost
  • Analyze and Prevent Claims
  • Assess Parties’ Entitlements and Negotiate Settlements
  • Use Alternative Dispute Resolution to Resolve Claims
  • Close Out Contracts
  • Evaluate claims related to project scheduling
  • Counterclaim against the contractor
  • Resolve claims

Course Outline

Day 1

  • Dispute Causes and Their Impact
  • Suspension of Work
  • Re-sequencing of Work
  • Variation Orders
  • Variations in Estimated Quantities
  • Differing Site Conditions
  • Defective Specifications and Drawings
  • Acceleration of the Work
  • Force Majeure
  • Termination for Convenience
  • Termination for Default and Re-procurement
  • Claims for Unforeseen Conditions at the Start of the Job
  • Contractor’s Obligation to Investigate the Site
  • Employer’s Obligation to Give Information about the Site
  • Unforeseen Behavior or Conditions
  • Engineer’s Role in Mitigating Such Claims
  • Claims for Variations
  • Variation Order Cost Estimates
  • Job Factors Affecting Productivity
  • Overhead and Profit
  • Reservation of Indirect Costs
  • Forms for Pricing Changes
  • Case Study

Day 2

  • Contract Stipulations to Calculate Cost of Variations
  • Scheduling Provisions
  • Emphasis on Network Analysis Techniques
  • Techniques for Delay with Construction Project Management (CPM)
  • Concurrent Delays
  • Job Acceleration/Compression
  • Legal Concerns in Construction Field Administration
  • Case Study

Day 3

  • Measures to Minimize Disputes
  • Claim Protection and Mitigation
  • Amicable Dispute Resolution by the Parties
  • Negotiation of Disputes
  • Mediation of Disputes
  • Substantial Completion and Contract Close-Out
  • Contract Requirements
  • Commissioning and Handing-Over
  • Substantial Completion
  • Preparation of Punch List
  • Starting of Systems
  • Case Study
  • Conclusion

Day 4

  • The Legal Basis for Claims
  • Claims Based on Time
  • Types of Claims under Engineering Contracts
  • Damage Claims – Advantages and Limitations
  • Loss and Expense vs Rate Adjustment
  • Contract Pricing and Change Control Procedures
  • Sub-Contractor Claims
  • Counterclaims against the Contractor
  • Set-Off Claims by the Employer
  • Liquidated Damage Claims by the Employer
  • Unliquidated Damage Claims
  • Claims by the Employer Arising from Defective Materials and Workmanship
  • Claims by Sub-Contractors for Money Arising from Delay and Disruption Caused by the Contractor under the Contract

Day 5

  • Techniques for Proving Delay with CPM
  • Concurrent Delays
  • Acceleration/Job Compression
  • Checklist for Use of CPM in Litigation
  • Claims for Delay
  • Claims for Disruption
  • The Relationship between Loss and Expense and Extensions of Time
  • Damages for Delay
  • Case Study
  • Preparation of a Claim Submittal
  • Importance of Experts
  • Engineer’s Decisions
  • Arbitration:
  • An Alternative to Litigation
  • Basic Arbitration Requirements
  • Arbitration procedure
  • Initiating Arbitration
  • Terms of Reference
  • Conduct of Proceedings
  • Advantages of Arbitration
  • Disadvantages of Arbitration
  • Assembling Expert Evidence for Trial
  • Who is an Expert?
  • Choosing Experts: Can an Expert Win or Lose the Case?
  • Preparing an Expert’s Report: What Makes a Good Report?
  • Practice & Procedure of Expert’s Meetings: What Does the Expert’s Agreement Mean?
  • Litigation
  • Case Study
  • Conclusion

Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies
  • (30%) Techniques
  • (30%) Role Play
  • (10%) Concepts
  • Pre-test and Post-test
  • Variety of Learning Methods
  • Lectures
  • Case Studies and Self Questionaires
  • Group Work
  • Discussion
  • Presentation

Who should attend

The workshop is invaluable for anyone involved in the planning, administration and close-out of projects and contracts, whatever his or her particular responsibilities are, and who wishes to learn how to manage conflicts that might arise between any of the parties during any phase of the project’s or contract’s progress and execution. It is specifically designed for project managers and engineers, project owners, contract managers, contractors, sub-contractors, consulting engineers and construction management executives.

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