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Dispute Resolution

With regards to dispute resolution, our construction claims services include the following tasks:

  1. Forensic and contemporaneous delay analyses
  2. Labor loss of productivity analyses
  3. Equipment loss of productivity analyses
  4. Earned Value (EV) analyses
  5. Calculation of deferred contract performance costs
  6. Calculation of extended contract performance costs
  7. Extended home office overhead calculations
  8. Extended field office overhead calculations

The first step is to make a realistic assessment of the potential damages that may be recovered or incurred and develop an appropriate action plan. Along with this plan, EKTON will develop a budget for the work. Discussing a budget upfront is crucial in construction claims.

Due to the Law of Diminishing Returns, the costs associated with full recovery of time and money in construction claims are disproportionate to the costs associated with partial recovery. While our goal is always full recovery, it is important to understand how this might impact the budget.

 

Viewed from Contractor Side

It is frustrating that many contractors if they are entitled to compensation for a claim, do not do an adequate job of clearly and persuasively presenting their request for an equitable adjustment of the contract price. They invariably fail to provide adequate contemporaneous documentation. Thus, while they may have a right to additional compensation, the claim they submit fails to achieve a threshold level of credibility, and their request is denied.

 

Viewed from Owner Side

Many, if not most, of the major claims and disputes today, are based on schedule, delay, impact, disruption or acceleration theories. Also, there is an increased reliance on the so-called global claim.

Thus, the issue of scheduling, planned versus actual performance, the identification of cause, and assigning responsibility for deviations will continue to be critical issues for successfully resolving claims/disputes.

To be successful in the timely resolution of disputes, it is going to take more than the use of the so-called partnering concept. It is going to require better planning, better management, an attitude of mutual trust and cooperation, and the use of pro-active claims avoidance techniques. It is also important that the parties be prepared, with adequate project control systems, procedures and techniques in place and working so that the elements of proof are captured, documented, exchanged by the parties, and convincing to an adversary when necessary.

The resolution services that could help you include:

  • Fact finding
  • Appraisal
  • Letter writing
  • Dispute or claim negotiation
  • Consensus building for win-win outcomes
  • Maintaining business relationships
  • Managing extension of time claims
  • Drafting settlement agreements

The key element for persuasively presenting a claim and resolving a dispute is contemporaneous documentation!