Abdullah Al-Kalabani’s Post

Imagine this: all your construction contracts are running smoothly until a dispute arises. You're in the middle of a major project and stakeholders are pressuring you about deadlines and quality. You can almost hear a clock ticking as the days pass and costs start to rise. What then? This is where advanced contract claims management techniques come into play. The key to success in any construction dispute is early intervention and proactive resolution. Here are a few tips to help you get there: 1. Keep detailed records from the start 2. Set up a dedicated claims management team 3. Prioritize communication 4. Explore alternative dispute resolution methods These techniques might seem basic, but they are often overlooked in high-pressure situations when they are most critical. By following these steps, you'll be setting yourself up for success in the event of a contract claim. Don't wait until it's too late, start implementing these techniques today to ensure your construction projects stay on track and disputes are quickly resolved. To learn the trade secrets, click to register FREE in our community: https://bit.ly/3UmkW5E

The claims process in the NEC3 Engineering and Construction Contract (ECC) involves several key steps to ensure that claims are managed effectively and fairly. Here’s a professional overview: Notification of Compensation Event: The Contractor must notify the Project Manager of any event that may lead to a claim, known as a compensation event, as soon as possible, typically within eight weeks of becoming aware of the event. Submission of Quotation: The Contractor submits a detailed quotation for the compensation event. This submission should include all relevant information, such as the nature of the event, the circumstances leading to the claim, and the impact on time and cost. Assessment by Project Manager: The Project Manager assesses the claim based on the information provided. This involves evaluating the validity of the claim and determining the extent of any adjustments to the contract sum or completion date. Decision and Communication: The Project Manager communicates their decision regarding the claim to the Contractor. This decision includes any adjustments to the contract sum or completion date. Dispute Resolution: If the Contractor disagrees with the Project Manager’s decision, the dispute resolution process outlined in the contract may be initiated. This can involve adjudication, mediation, or arbitration, depending on the contract terms. These steps ensure that claims are handled systematically, maintaining transparency and fairness throughout the process.

The Importance of Documentation in Construction Claims In construction, documentation is your strongest defense when claims arise. Proper documentation can mean the difference between a successful resolution and prolonged disputes. Here’s why documentation is critical in construction claims: 1. Establishing a Clear Record: Accurate and comprehensive documentation creates a detailed project history. This record helps establish the facts of what happened and when, making it easier to identify the causes of delays, variations, or issues. 2. Supporting Claim Validity: Claims need solid backing. Well-organized documents such as daily reports, meeting minutes, schedules, and change orders provide the evidence needed to validate claims and substantiate any requests for time extensions or additional costs. 3. Minimizing Disputes: When issues arise, clear documentation often helps resolve disputes before they escalate. Having precise records allows all parties to refer back to agreed-upon terms, reducing misunderstandings and fostering faster resolution. 4. Tracking Changes and Approvals: Construction projects are dynamic, with changes occurring frequently. Proper documentation of all scope changes, approvals, and instructions ensures that these modifications are captured and agreed upon by all parties, preventing disputes later. 5. Contractual Compliance: Contracts usually outline strict procedures for claims and variations, including notification and submission timelines. Keeping thorough documentation ensures that all actions comply with contractual obligations, preserving your right to claim. 6. Protecting Against Liability: In the event of legal disputes or arbitration, strong documentation protects you from liability. It provides a defensible position and ensures that you can justify your actions or decisions with factual evidence. Good documentation is essential for managing risks and ensuring successful claims resolution in construction. #ConstructionManagement #ConstructionClaims #ProjectManagement #PlanningEngineer #RiskManagement #Documentation #ConstructionIndustry

Conditions of Contract for Construction ; The "FIDIC Construction Contract 2nd Edition 2017 Red Book" is a comprehensive document outlining the conditions of contract for construction projects designed by the employer. It is structured to guide the preparation of particular conditions. It includes various annexes, forms of securities, letters of tender, letters of acceptance, contract agreements, and dispute adjudication/avoidance agreements. Here is a summary of the key sections and their contents: 1)General Conditions: This sectionoutlines the fundamental terms and provisions governingn the contractual relationship between the employer and the contractor. It includes definitions, the scope of the contract, obligations of the parties, and procedural guidelines for project execution. 2)Guidance for the Preparation of Particular Conditions: This part provides detailed instructions on customizing the general conditions to fit specific project requirements. It advises on amendments and additions to tailor the contract to the unique needs of each project. 3)Forms of Securities: This section includes templates and guidelines for various types of securities required in construction contracts, such as performance guarantees, advance payment guarantees, and retention money guarantees. 4)Forms of Letter of Tender, Letter of Acceptance, Contract Agreement: These forms are standardized templates that ensure consistent and clear communication between the contracting parties. They outline the process for tendering, acceptance of the tender, and formalizing the contract agreement. 5)Dispute Adjudication/Avoidance Agreement: This section details the mechanisms for dispute resolution, including the establishment of dispute adjudication boards (DABs) and procedures for dispute avoidance and resolution. It emphasizes the importance of addressing disputes promptly to prevent project delays and cost overruns. Overall, the FIDIC Red Book serves as a vital reference for managing construction contracts, providing a balanced framework that protects the interests of both employers and contractors while promoting efficient project delivery.

Construction Claims: How to get paid or receive the benefit of your construction contract: Part 1 - Contractual leverage. One reason, or it could be said perhaps be 'the' reason, for a contract is to create artificial trust between parties, or in other words contractual mechanisms by which a party may rely on performance or a remedy in the event the other party fails to perform its part of the agreement. So, in contrast, by deciding to not exercise the contractual mechanisms, especially those relating to notices and other types of correspondence which may otherwise give entitlement to reimbursement of losses, what a party is really doing is deciding to move away from the artificial trust and rely on 'real trust', which may be okay unless a dispute arises which is to be decided in accordance with the terms of the contract.        In the event of a dispute, it is likely to be highly beneficial for a party to have acted in accordance with the terms of the contract so that the contractual position can be ascertained thereby offering protection, or compensation, to the same extent.  In this way a party can have leverage (Contractual Leverage) because the clearer the contractual position is in respect of entitlement, then it follows that the other party is equally less likely, or entitled, to deny claims made properly in accordance with that contractual position.      Accordingly, contractual leverage offer's protection of your contractual position and business but to acquire it a party must embrace the mechanisms of the contract and perform its obligations in accordance with them. If you need help establishing your contractual position in respect of a claim do not hesitate to message me or get in touch via my website on my profile link above; I can provide: A Free Preliminary Review of any Construction Claim, Quantum & management of claims,  A Fixed Price for my Services. #constructionclaims #disputeresolution

Whether you're a project owner, general contractor or a subcontractor, understanding the intricate web of legal and insurance requirements as you negotiate project contracts is paramount to your success. Watch our on-demand webinar and learn to navigate the complex world of construction contracts confidently.#Construction #Contract #Negotiation https://ow.ly/7RlX50QohY9

Whether you're a project owner, general contractor or a subcontractor, understanding the intricate web of legal and insurance requirements as you negotiate project contracts is paramount to your success. Watch our on-demand webinar and learn to navigate the complex world of construction contracts confidently.#Construction #Contract #Negotiation https://ow.ly/wbXo50Qpi7r

Disputes over claims in construction projects can be complex and challenging. Ensuring protection and clear definitions within the contract is crucial. Establishing a timeline and payment milestones can help prevent conflicts. Effective communication and standard payment forms are key to resolving disagreements without resorting to costly legal battles. Explore the importance of proactive measures and thorough contract drafting to safeguard your projects and maintain smooth operations.  . . #ConstructionManagement #ProjectManagement #ContractNegotiation #RiskManagement #ConstructionDisputes

Whether you're a project owner, general contractor or a subcontractor, understanding the intricate web of legal and insurance requirements as you negotiate project contracts is paramount to your success. Watch our on-demand webinar and learn to navigate the complex world of construction contracts confidently.#Construction #Contract #Negotiation https://ow.ly/mpVZ50QmtH0

Construction Contract Claims & Disputes 🔍 Construction projects often face challenges that lead to contract claims and disputes. Claims arise due to delays, variations, or unforeseen conditions that affect time, cost, or quality. Proper management of these issues is essential for successful project delivery. To handle claims effectively: 1. Understand the Contract: Ensure all parties are familiar with their rights and obligations. 2. Document Everything: Maintain accurate records of project activities and changes. 3. Follow Procedures: Adhere to contractual timelines and procedures for submitting claims. 4. Dispute Resolution: Mediation, arbitration, or litigation may be necessary to resolve disputes. Clear communication and thorough documentation are key to avoiding costly delays and ensuring project success. #ConstructionClaims #DisputeResolution #ProjectManagement #KSA #ConstructionLaw #ClaimsManagement #ConstructionIndustry Document Author: M.Osman Malik