Improving project success.
Tag: claims management
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Acceptance of Using the Hudson Formula for Prolongation Cost Claims in FIDIC Contracts
Estimating prolongation costs is one of the most debated areas in construction claims. Many contractors try to justify additional costs by using formulas such as the hudson formula, especially when proving exact incurred cost is difficult. However, its acceptance under FIDIC contracts depends on how well the claim aligns with contractual requirements and evidential standards.… Read.
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Measured Mile Analysis to Navigate Productivity Claims
In the construction industry, productivity is key to the successful completion of projects. However, disruptions are not uncommon and can lead to significant financial losses. To address these challenges, measured mile analysis has become a pivotal method for quantifying productivity losses in productivity claims. This technique is crucial in establishing fair compensation for impacted periods… Read.
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Dispute Avoidance Revised Roles in FIDIC 2017 Edition
Dispute avoidance is a key focus in the 2017 edition of FIDIC contracts. These updates emphasize preventing disputes before they arise. The roles of the Dispute Avoidance/Adjudication Board (DAAB) and the Engineer were revised to promote early intervention and proactive resolution. Dispute Avoidance/Adjudication Board (DAAB) The 2017 edition introduced the DAAB to replace the earlier… Read.
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The Advantages of 4D Planning in Dispute Resolution
Disputes in construction projects are common, often arising due to delays, cost overruns, or disagreements over project specifications. Resolving these disputes efficiently and fairly is crucial to maintaining project timelines and budgets. One innovative tool that has emerged to aid in this process is 4D planning, which integrates time into the traditional 3D model, adding… Read.
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Prolongation Costs and the Hudson Formula
Construction projects often face delays, leading to additional expenses known as prolongation costs and the use of the Hudson formula. These costs arise from factors beyond the contractor’s control, such as scope changes or unforeseen site conditions. To address these challenges, contractors frequently rely on the Hudson Formula. This guide explores the Hudson Formula in… Read.
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Managing Payment Claims in FIDIC Contracts
Payment claims are often misunderstood in construction contracts, particularly under international standard forms where routine payment administration and contractual claims follow different mechanisms. In projects governed by FIDIC contract, this distinction is especially important, as interim payment applications are regulated under Clause 14, while claims for disputed or withheld amounts arise only through the formal… Read.
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Variation Claims in Construction Projects
Construction projects are inherently dynamic, with changes in design, scope, and unforeseen conditions being commonplace. These changes often give rise to “Variation Claims,” crucial aspects of construction contracts that demand attention. In this blog post, we’ll explore what Variation Claims in construction projects are, why they occur, and how they are addressed in construction contracts,… Read.
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Mastering the Extension of Time Claims
In the dynamic landscape of construction contracts, delays are an inherent challenge. FIDIC’s Red Book, a widely adopted standard contract, provides a blueprint for handling delays through Clause 8.4 – Extension of Time claims. This pivotal clause acts as a guide for project stakeholders, offering insights into efficiently managing the intricacies of time extensions. FIDIC… Read.
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Common Causes of Disputes in Construction: How to Mitigate
Construction projects, characterized by their complexity and involvement of numerous stakeholders, often face challenges that can escalate into disputes. Recognizing the causes of disputes in construction and implementing effective mitigation strategies is crucial for project success. In this blog post, we’ll delve into the common causes of disputes in construction and discuss actionable strategies for… Read.
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Navigating Liquidated Damages in Construction Projects
Construction projects thrive on punctuality. Delays can bring about financial losses and disruptions. That’s where liquidated damages in construction projects come into play. By actively participating in the negotiation and definition of these terms, clients can contribute to a collaborative and risk-mitigated construction process. The judicious use of liquidated damages ultimately fosters a win-win situation,… Read.
