Managing Change Orders and Contractual Claims

Course content

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Why Attend
 
The overall aim of this course is to provide participants with introductory knowledge and basic skills needed to deal with claims, variations and disputes between the principals and the contractors. Participants in this interactive course will learn how to analyze contractual issues, identify techniques that are helpful in handling difficult situations and recognize the best practices in resolving disputes amicably.
 
Course Methodology
 
This course relies on the use of individual and group exercises aimed at helping participants learn all key contract management activities. The course also features the use of a number of case studies, presentations and role plays by participants followed by discussions. In addition, this course incorporates pre and post testing.
 
Course Objectives
 
By the end of the course, participants will be able to:
 
Identify and avoid causes for contractual claims and change orders
Outline the major types of change orders and draft a variation order and a notice of breach
Recognize and analyze the different types of owners' claims and contractors' claims and explain how to deal with each type
Demonstrate, through actual situations, the different approaches to handle claims, variation orders and conflicts through mutual collaboration
Apply negotiation as a main concept in resolving disputes and conflicts in order to reach a final settlement 
 
Target Competencies
 
Contract preparation
Handling claims
Change management
Technical terms and conditions
Negotiating contracts
Conflict management
Contract administration
 
 
Course Outline
 
Overview
 
Elements of a contract
Contract terms and conditions
Basic concepts in contract law:
Force majeure
Notices: the neglected clause
Breach of contract
Right to remedy
Indemnifications and liabilities
Contract termination
Why do claims occur: the red flags
Change requests
Definitions of claims and disputes 
Claim process
 
 
Change management
 
Why change management
Change order
Agreement on estimating process
Types of changes and variations
Directed changes
Constructive changes
Cardinal changes
Process of change management
Writing a variation order
 
 
Claims nature and types
 
Documentation of the event – notices
Procedure and presentation of contractor’s claims
Drafting a notice
Owner’s claims
Defective work
Warranty claims
FIDIC owner’s claims
Contractor’s claims
Changed conditions
Constructive changes
Delays and suspensions
Deficiencies in plans and specifications
Program extensions
FIDIC contractor’s claims
Delayed drawings or instructions
Right of access to the site
Unforeseeable physical conditions
Delays caused by authorities
Reaching a settlement
Drafting a claim
Claim evaluation
 
 
Resolving claims and disputes
 
Monetary damages
Disputes and settlement of disputes
Alternative dispute resolution:
Negotiation: common practices
Mediation: neutral third party
Arbitration: binding and non-binding
Resolution t



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