Time and Money in Construction Contracts


 On-Site Training Only  
 Length:
2 days 
 Number of Participants: Up to 20
 Materials: Notebooks and handouts provided
 

This Seminar deals with the common and prevalent contractual issues that arise in today’s highly competitive construction industry - the timely completion of projects, payment of liquidated damages and claims for additional cost and loss & expense.

Target audience

  • Employers
  • Consultants
  • Architects, Engineers, Quantity Surveyors and Planners
  • Senior Project Managers
  • Senior and middle management employed by Contractors
  • Sub-Contractors and Suppliers
  •  Government Bodies

 

BENEFITS OF ATTENDING

  • Keep abreast of the developments in the assessment of delay and disruption in the construction industry
  • Apply Advanced Scheduling techniques
  • Achieve measurable performance improvements
  • Learn how to tailor reports to summarize appropriate information
  • Confront real-life project problems using experience gained from hands-on classroom challenges
  • Network to find out how your peers handle projects in organizations worldwide
  • Address many of today's toughest challenges with increased knowledge and confidence
  • Be better equipped to administer contracts let on a design and construct basis

What participants will learn and be able to use in their work after attending this workshop

  • Keep abreast of the developments in the assessment of delay and disruption in the construction industry.

·         Develop a recovery plan for any troubled project Conduct in-depth evaluations of schedules for critical path, early completion, float sequestering, and overall validity

·         Determine the appropriateness of delay claims 

 

Program Outline 

Day One

COST, TIME AND PROCUREMENT PRACTICES

  • Cost Estimates, Cost Budgets and Cost Control
  • Estimating methods, Reserves and Contingencies
  • Progress Monitoring - Earned Value Management
  • Financial Tools - NPV, IRR, Payback Period, Discount Rate
  • Capital investment vs. maintenance costs
  • Cost Management Exercise
  • Activity Definition, Sequencing and Duration Estimating
  • Schedule Development and Control
  • Time Management Exercise
  • Plan Contracting, Contractors’ Proposals
  • Pre-qualification
  • Preparation and evaluation of Tenders
  • Contract Documents and Contract Award
  • Contract Administration and Contract Closure
  • Procurement Management Exercise

ROLES OF THE STAKEHOLDERS

  • Roles of the Architect and the Engineer
  • Details to be included & decisions taken by the Employer
  • What is left to the contractor to decide
  • Appointment of site staff

PROJECT RISKS

  • Contractors' risks
  • Dealing with unforeseen hazards
  • Physical Conditions and Obstructions
  • Critique of “... which could not reasonably have been foreseen by an experienced contractor...”
  • Drawing approval and specification changes.
  • P.I. insurance
  • Discrepancies and pricing errors

SUBCONTRACTS

  • Nominated and domestic
  • Subcontractor conditions
  • Securing payment
  • Set off

PAYMENT

  • Pay when paid provisions
  • Direct payments
  • Contingency fees
  • Repudiation for non-payment

Day Two

VARIATIONS AND THEIR EVALUATION

  • Claims for Items Omitted from the BOQ
  • Variations and Provisional Sums
  • Power to instruct variations

TIME CLAUSES AND CLAIMS

  • The Works Program.
  • “Time of the essence”, “Time at large” and “Due diligence”
  • Extension of time provisions, notice, particulars and grounds for extending time.
  • Float and concurrent delay
  • Demonstrating and assessment of delay - “As planned impacted analysis”, “As-built but-for analysis” and “Window analysis”.
  • Do provisional quantities give rise to EOT?

MITIGATION, ACCELERATION & DAMAGES

  • Extent of the duty to mitigate loss in relation to project delays
  • Provisions requiring reasonable or best endeavors to avoid or reduce delay
  • Constructive acceleration - entitlement to reimbursement
  • Challenges to liquidated damages

PROJECT COMPLETION PRACTICES

  • Practical completion
  • Non-Completion and Damages
  • Suspension of the Works
  • Defects

DEFINITIONS

  • Contemporary records
  • Extra over
  • Hudson formula
  • Economic duress
  • Fair evaluation or quantum meruit
  • Making good defects
  • Fitness for purpose and reasonable skill and care

LOSS & EXPENSE CLAIMS

  • Heads of a loss and expense claim under a construction contract
  • Claims for reimbursement for delay, disruption, prolongation, head office overheads and finance charges.
  • Payment of interest, and loss of profit
  • Prolongation – Cost or Value
  • Global claims, level of supporting detail and records ordinarily required substantiating a claim for loss and expense.

DISPUTE RESOLUTION

  • Negotiation
  • Expert Evidence
  • Mediation
  • Exercise
  • Arbitration

 

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