Evaluating Contract Claims

by Davison, R. Peter; Mullen, John

• ISBN13: 9781405159203
• ISBN10: 1405159200
• Edition: 2nd
• Format: Hardcover
• Copyright: 2008-12-22
• Publisher: Wiley-Blackwell

Summary

Most medium to large construction contracts include a claim for extra payment for variations or disruption to the programme. Whilst the causes of the claim are often well documented, what can and cannot be included in the payment is often misunderstood and the calculation of quantum consequently becomes vague and poorly substantiated. Thoroughly updated over the previous edition, reflecting pertinent Court decisions on damages and the duty to mitigate, the new edition covers new provisions of the revised JCT 2005 contracts and the 2005 New Engineering Contract. There is substantial additional material on issues arising from time and delay analysis and the financial consequences of changes to time - issues that regularly cause real problems in the evaluation of quantum for construction claims. Most current books on the subject concentrate on the establishment of liability and the requirements of individual standard forms of contract. This book, however, concentrates on the quantification of claims after liability has been established, regardless of the form of contract used, and sets out the principles and methods that should be reflected in the evaluation of claim quantum and the standard of substantiation required. It will therefore appeal to those working with both building and engineering contracts. Reviews of the previous edition "Well written and highly informative" Building Engineer "His observations on the assessment of productivity and the use of facilities and equipment are particularly helpful for lawyers, who deal with construction claims" Construction Law

Author Biography

Peter Davison BA MSc FRICS FCIArb has spent much of his career as a quantity surveyor working on projects in many parts of the UK, Europe, and the Middle and Far East. He worked for civil and mechanical engineering contractors, client organisations and consultants before founding Davison George and Partners in 1982, now Driver Consult Ltd. A Fellow of the Royal Institution of Chartered Surveyors and the Chartered Institute of Arbitrators, he has also sat as an Arbitrator on major international disputes administered by the International Chamber of Commerce.

John Mullen BSc(Hons) MSc FRICS FInstCES FCIArb MAE began his training with a national firm of contractors, subsequently moving into private practice and has specialised for the last 25 years in providing consultancy services to the building and engineering construction industries. He has enjoyed over 40 appointments as an expert witness in cases at the High Court, International Chamber of Commerce arbitration, and in domestic arbitration.

Table of Contents

Dedication	p. v
Acknowledgements	p. vi
Preface	p. vii
Introduction	p. 1
Risk analysis and management	p. 12
Risks and records	p. 15
Reimbursable risks	p. 18
Non-reimbursable risks	p. 19
Sources of change and disruption	p. 19
Summary	p. 24
Establishing the base	p. 25
Planned change	p. 26
Unplanned change	p. 37
Summary	p. 42
Effect of change on programmes of work	p. 44
Use of programmes	p. 45
Use of as built programmes	p. 48
Change without prolongation	p. 51
Prolongation of the works	p. 55
Analysis of time and delay	p. 57
Summary	p. 101
Sources of financial information for evaluation	p. 103
The contract provisions	p. 104
Tender documents and information	p. 108
Tender calculations and assumptions	p. 111
Invoices and cost records	p. 112
Accounting information	p. 116
Summary	p. 119
Evaluation of the direct consequences of change	p. 120
Unit rates and prices	p. 122
Unit costs	p. 151
Subcontractor and supplier costs	p. 168
Summary	p. 173
Evaluation of the time consequences of change	p. 174
The causal link	p. 175
Prolongation	p. 179
Disruption	p. 190
Acceleration	p. 219
Global claims	p. 225
Overheads and profit	p. 234
Formula approaches	p. 250
Summary	p. 258
Other sources of claims	p. 259
Letters of intent	p. 259
Termination of employment	p. 262
Errors, omissions and contradictions	p. 267
Fluctuations in prices	p. 271
Incomplete and defective work, etc.	p. 274
Summary	p. 278
Minimising the consequences of change	p. 279
Contract preparation	p. 282
Alliance and partnering contracts	p. 284
Early warning systems	p. 287
The claims industry	p. 289
Summary	p. 292
Appendices	p. 293
Example of financial accounts	p. 293
Example of management accounts	p. 295
Table of Cases	p. 297
Index	p. 301
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