Construction Claims Management Planning

This post is the second in a Subject Series  Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations.  In this series, we focus on the managerial aspects of construction claims and disputes management.  This post addresses the planning, a key managerial requirement in all project work.  First plan it, and then do (execute) the work.  The notion is consistent with the old adage “An ounce of prevention [in this case management] is worth a pound of cure.”  In that regard, litigation on a large and complex project can cost millions USD in expenses to pursue and may have tens of millions USD at issue.

Yes, construction claims and disputes can and should be managed.  This is particularly true of large and complex projects.

Prospective Construction Claims Management refers to the managerial approach and planning for managing the risks (and options, opportunities, etc.) during project execution through project close-out related to claims.

Retrospective Construction Claims Management (development, presentation and defending) will be addressed in another post.

Claims Avoidance There is a myth that construction claims can be avoided.  Experience shows that this is just a myth, since it relies on controlling the activities of others.  These others may be in an adversarial posture or position.  Hence, control cannot be readily achieved. [Read more…]

PROJECT PLANNING – Managerial Challenges (Part 3)

PROJECT PLANNING Managerial Challenges(Part 3)

Project Initiation – Contractor

This post is the third in a series of discussions regarding managerial challenges in project management situations.  In this series, we focus heavily on the managerial aspects of program / project planning and management.  This post addresses the starting point or initiation of the project.  Part 2 discussed Project Initiation in general.  This post [Part 3] addresses considerations that are unique to contractors.

Owners often view contractors as a homogenous group or homogenous within the contractor’s own organization.  This perception is not correct, at least for contractors of any size or diversity.

Why does the same contractor behave differently on one job relative to another?  Why does a contractor bid differently relative to past practices or experiences?  Why is the contractor’s price so high on this bid when it was so low on another bid?  We expected the contractor to be competitive and they are not.  Another scenario, we expected the contractor to not be competitive; but, they have the best proposal and bid.  There are many potential reasons.  The answer may reside in the project initiation process.

[Read more…]