Managing Change Orders and Contractual Claims

Overview

• Elements of a contract

• Contract terms and conditions

• Basic concepts in contract law:

  • Force majeure

  • Notices: the neglected clause

  • Breach of contract

  • Right to remedy

  • Indemnifications and liabilities

  • Contract termination

• Why do claims occur: the red flags

• Change requests

• Definitions of claims and disputes 

• Claim process

Change management

• Why change management

• Change order

• Agreement on estimating process

• Types of changes and variations

  • Directed changes

  • Constructive changes

  • Cardinal changes

• Process of change management

• Writing a variation order

Claims nature and types

• Documentation of the event – notices

• Procedure and presentation of contractor’s claims

• Drafting a notice

• Owner’s claims

  • Defective work

  • Warranty claims

  • FIDIC owner’s claims

• Contractor’s claims

  • Changed conditions

  • Constructive changes

  • Delays and suspensions

  • Deficiencies in plans and specifications

  • Program extensions

• FIDIC contractor’s claims

  • Delayed drawings or instructions

  • Right of access to the site

  • Unforeseeable physical conditions

  • Delays caused by authorities

• Reaching a settlement

• Drafting a claim

• Claim evaluation

Resolving claims and disputes

• Monetary damages

• Disputes and settlement of disputes

• Alternative dispute resolution:

  • Negotiation: common practices

  • Mediation: neutral third party

  • Arbitration: binding and non-binding

• Resolution through legal means

Negotiation

• Partnering with suppliers

• Negotiation objectives

• Communication and negotiation

• Negotiating claims