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(SK-2347) Skills and Knowledge of Cost Engineering: Overview of Construction Claims & Disputes

Primary Author: John C. Livengood, CCP CFCC PSP FAACE
Co-Author(s): James G. Zack, Jr. CFCC FAACE Hon. Life

Audience Focus: Basic
Application Type: Practice
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada

Abstract: Claims (requests for additional time and/or money) are common on construction projects. Claims have grown around the world in the past 50 years, and are now a major construction management issue, often overshadowing on time or on budget performance. The rise of construction claims has been paralleled by the advent of stricter contracts, creation of dispute resolution alternatives, and in many locations, a hardening of owner/employer attitudes toward contractors’ pleas for relief from delays, changes/variations in the work, site conditions, etc. No member of the project team, from designers to construction managers, to contractors, to owners/employers, has been left untouched by the rise of claims. Claims, left unresolved on the project, may result in legal disputes involving arbitration or litigation. This presentation provides a short overview on the basics of how and why claims develop; what it takes to make a claim; what it takes to defend against a claim; how some forms of project delivery methods may affect the number and types of claims on projects; and some suggestions to help avoid, minimize, and resolve claims. This presentation also provides an overview of the various legal dispute resolution venues and forums in the event that claims go unresolved on the project.