Techniques For The Resolution Of Major Construction Contrac

• Published in: Public utilities fortnightly (1994) 1989-04, Vol.123 (9), p.26
• Main Author: Hoctor, David R
• Format: Magazinearticle
• Language: English
• Subjects: Construction contracts; Disputes; Electric utilities; Industrial plants; Litigation; Schedules
• ISSN: 1078-5892; 1945-2578

The settlement of construction contract disputes involves an analysis of what the contractor could have expected at the time of bid, or the as-bid condition. Each disputed bid item has 3 major components: 1. the entitlement to recovery, which primarily is dependent on the provisions of the contract, 2. cost quantification of the changed items of work, which can be done in several different ways but can be difficult to calculate, and 3. delay analysis, which is the time quantification of the effects from each claimed item. After analyzing the basis for the amount of time claimed and plotting each of these items on an as-built schedule, it is visually possible to see which major elements were affected and which were not. By removing the amount of time the contractor has claimed for delay from each activity, the responsibility for delay can be ascertained. An approach now being utilized in the utlilty industry is to have both parties agree to a dispute resolution agreement to avoid litigation.