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(CDR-2402) Project Claims Avoidance for Owners

Level: Intermediate
Author(s): Christopher P. Caddell, PE CCP DRMP; Andrew J. Aston
Venue: 2017 AACE International Annual Meeting, Orlando, FL

Abstract: In the management of projects, owners often have to resolve claims with contractors, either from them or against them. Avoiding these claims and the source issues when possible can help minimize the negative impact these disputes have on a project’s return on investment. It is important to know what the common sources of project claims are. Claims avoidance actions start during project development with the selection of an appropriate contracting strategy, the development of contract form, contract negotiations and scenario playing. The claims avoidance work continues through the execution of the work with various techniques, data and documentation, and proper change order management. While claims cannot always be avoided, owners using these recommended practices can minimize the probability of claims and lessen the impact when they do occur.