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CONSTRUCTION CLAIMS and DISPUTES – Subject Series Summary – Update 11-Nov-2014

November 11, 2014 By George T McLaughlin PMP CCM

Just as the businesses and economies have cycles, capital projects (particularly engineering and construction) have recurring cycles. The pendulum swings back and forth within the bounds of the capital project cycle. In capital projects, the cycle can be three to five years, depending on the economy, size and complexity of the projects and other factors.

At this time, the market seems to be transitioning from project planning and early execution into middle to later-stage execution with emergence of disputes. As the claims and disputes marketplace intensifies over the next several years, Construction Claims and Disputes will become an increasingly commonplace and a relevant topic for capital project management professionals.

Construction Claims and Disputes continues to be the most popular subject on Project Professionals. Further, it is the most requested line of services provided by McLaughlin & McLaughlin. M&M are project management practitioners (in the field) and, yes, we practice what we preach. Further, our choice of topics for Project Professionals posts is driven by and reflective of practical and current issues. This is not esoteric, academic or hypothetical “stuff”.

This summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis. Initially, this Subject Series, Construction Claims and Disputes, was posted during January 2011 through July 2014. During the past several years, greater than 25% of views by visitors have been to this Subject Series.

Ideally this Subject Series provides a starting point to investigate best practice on many planning and execution features of construction claims and disputes. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Projects, Uncategorized Tagged With: Best Practice, claims and disputes, Construction Claims Management, Construction Contract Claims, George T. McLaughlin PMP, McLaughlin & McLaughlin, Notice of Recognition, PMBOK, Productivity Management, Progress, Progress Assessment, Project Management, Project Management Institute (PMI), Project Management Plan, Recognition, Schedule Specification, Scope of Work, Scope of Work Management, www.mclaughlinandmclaughlin.com

CONSTRUCTION CLAIMS and DISPUTES – (Case Study 01)

July 25, 2014 By George T McLaughlin PMP CCM

Turnkey Contract Scope of Work

This McLaughlin and McLaughlin (M&M) post is another in a Subject Series Construction Claims and Disputes. This is the first of several Case Studies that will be posted. Case Studies are examples of real life situations and draw upon actual events, adjusted and modified to focus on one or more points.

This Case Study was developed for the American Association of Cost Engineers (AACE) International annual meeting that recently occurred (June 15^th) in New Orleans. The specific presentation was Claims Avoidance through Effective Cost Engineering. This panel discussion was part of the Energy Industry Track.

This particular Case Study in Construction Claims and Disputes focuses on claims in (lump sum) Turnkey contracts. Further, it focuses on Scope of Work. The vast majority of construction claims and disputes have their origins in Scope of Work. Hence, this is a logical starting point and has the widest application.

The Case Study 01 is presented in a video using PowerPoint with animation and voice over. This format is used for ease of review and presentation.

We wish you good luck in your construction claims and disputes regarding scope of work.

It is important to note that McLaughlin and McLaughlin [M&M] is not a law firm and is not intending to provide legal advice. M&M is a consulting firm providing (among other services) non-legal expertise in construction claims, dispute resolution and litigation support. The Resource Center is for the convenience of blog visitors and M&M does not offer this for commercial purposes. For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

Filed Under: Claims, Featured, General, Projects, Uncategorized

CONSTRUCTION CLAIMS and DISPUTES – Subject Series Summary

January 8, 2014 By George T McLaughlin PMP CCM

Construction Claims and Disputes is the most popular subject on Project Professionals and has been for several years. Further, it is the most requested line of services provided by McLaughlin & McLaughlin. M&M are project management practitioners (in the field) and, yes, we practice what we preach. Further, our choice of topics for Project Professionals posts is driven by and reflective of practical and current issues. This is not esoteric, academic or hypothetical “stuff”.

This summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis. Initially, this Subject Series, Construction Claims and Disputes, was posted during January 2011 through August 2013. During the past several years, greater than 25% of views by visitors have been to this Subject Series.

Ideally this Subject Series provides a starting point to investigate best practice on many planning and execution features of construction claims and disputes.

Construction Claims and Disputes (Part 0) – This introduction formats the discussion with definitions, claim categories and key industry references. This post is consistent with M&M experience in many years of professional services.

The Overview (Part 1) –Part 1 updates Part 0, the introduction.

Construction Claims Management Planning (Part 2) – This is the most popular post in this (most popular) Subject Series. Construction claims (or the risk of claims) can and should be professionally managed. View this process as a piece of project (execution) planning [link]. This post outlines elements of a Construction Claims Management Plan. Further, it addresses elements of defining a Claim Strategy. Stakeholders include Owners, Prime Contractors and Subcontractors. Do not miss this post.

Current Project Professionals Posts (Part 3) – Claims are organized into four general categories. These categories are consistent with the frequency of occurrence, methods of management and other key managerial considerations. The categories are

Scope of Work, Changed Work or Variations
Delay and Acceleration, Time-Related
Disruption / Productivity (usually labor/labour)
Terms and Conditions.

Pricing Construction Claims (Part 4) – This post addresses the… Think you know how to price your (or other’s) claims? Andrew (Andy) Ness, 2012-13 Chair, ABA Forum on the Construction Industry probably disagrees with your answer. Read this post and consider Andy’s position as well as other considerations regarding claim pricing/damages. The content of the recent ABA book on the subject is covered.

Pricing Construction Claims (continued) (Part 5) – Are construction claims and disputes “all about the money?” Some believe this to be the case. This post (Part 5) expands on Part 4 by addressing pricing and citing additional references.

Scope of Work – Baseline (Part 6) – It is widely believed and accepted that Scope of Work and/or Changed Work is the single largest source of claims and disputes in engineering and construction (as well as many other contracted services). In order to establish departures from the baseline scope of work, you must be able to define the applicable baseline. This post cites various sources for baseline definition,

Scope of Work – Plans and Specifications (Part 7) – Several industry sources (publications) are used to elaborate on execution and contracting strategies that rely on plans and specifications as a major component of scope or work definition. This discussion includes typical contract documents and contract provisions wherein scope of work, services, supply and / or facilities is / are defined. Suggestions for configuration and change management in the field are included.

Other Subject Series that are both relevant and popular include:

Going forward, we will post other features of CONSTRUCTION CLAIMS and DISPUTES.

My we wish you the best of luck and let us all attempt to confront and deal with these and other project management challenges. It is crucial that recognition and anticipation of these issues occur during initiation and planning. However, the recognition and management should continue through execution, controlling and closeout.

Please note that McLaughlin and McLaughlin [M&M] is not a law firm and is not intending to provide legal advice. M&M is a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support. The Resource Center is for the convenience of blog visitors and M&M does not offer this for commercial purposes. For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

Filed Under: Claims, Featured, General, Projects, Uncategorized Tagged With: Best Practice, Best Practices, Construction Contract Claims, George T. McLaughlin PMP, Notice of Recognition, PMBOK, PMI, Productivity Management, Progress, Progress Assessment, Project Management, Project Management Plan, Recognition, Schedule Specification, Scope of Work Management, Stakeholder Managment, www.mclaughlinandmclaughlin.com

MANAGING RISK OF DELAY – Managing Contractor Schedules (Part 13)

September 28, 2013 By George T McLaughlin PMP CCM

This McLaughlin & McLaughlin post is the thirteenth (13^th) in a series of discussions regarding various aspects of time management as it relates to the risk of delay. This post addresses managerial considerations for dealing with schedules prepared by contractors and submitted to owners or their agents (construction managers, managing contractors, advisors, etc.).

Recently, Mr. Chris Carson authored an excellent article titled “Dealing with Contractors Schedules That Cannot be Approved.” This fine article was published in COST Engineering(September/October 2013).

This article contains excellent advice for project teams regarding schedule management.

Mr. Carson’s article is, in reality two articles in one. While Mr. Carson’s article presents a methodology for problematic situations (which he calls DSAB), the preamble and initial discussion for this article is highly useful and applicable to project management teams as they address the frontend of project planning and execution. This post summarizes the sage advice provided by Mr. Carson regarding frontend project management challenges as they relate to scheduling and time management. [Read more…]

Filed Under: Claims, Featured, Projects, Uncategorized Tagged With: AACE International, Best Practice, Best Practices, Construction Contract Claim, Construction Contract Planning, Construction Contract Planning and Scheduling, Contractor Schedules, Delay, Earned Value Management, George T. McLaughlin PMP, Managing risk of delay, Productivity Management, Progress Reporting, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Update, Time Management, Time Management Strategy, www.mclaughlinandmclaughlin.com

A View from the Field Project Execution / Contracting Strategies Large and Complex Industrial Projects

May 6, 2013 By George T McLaughlin PMP CCM

This article from the Division 1 of the ABA Forum on the Construction Industry Newsletter “The Dispute Resolver” represents George T. McLaughlin’s “View from the Field” formed throughout the course of his 30+ year career in the industrial marketplace.[1] His article is broken into four parts. Part 1, below, describes the evolution of the delivery systems in large and complex industrial projects[2]. The remaining sections, which we will publish in our next three newsletters, will discuss the legal implications (Part 2), impact on claims, disputes, and resolutions (Part 3), and prevention and corrective processes (Part 4).

Part 1 of 4 – Framing the Issue

When the earth’s tectonic plates shift, unless there is a resulting earthquake, it goes unnoticed. The movement is not perceptible. Nevertheless, major changes are occurring. In large and complex projects, with three to five (or longer) year schedules, industry shifts may not be perceptible. Nevertheless, major changes and related impacts may be in progress. Trends and changes in project execution and contracting strategies are similar. These trends, however gradual and unnoticed on a daily or monthly basis, cause major impacts on existing and future projects. While industry experts cite or drive these changes, the impact on the field may be delayed or go unrecognized by many, if not all stakeholders. The business motivations driving the trends discussed below are varied and complex. Perhaps, the central theme is risk tolerance or management. The large worldwide prime contractors (typically Engineer Procure Construct) migrated toward limiting major risks by limiting scope of work, insisting on reimbursable cost (as opposed to fixed price) commercial terms, or both. Owners chose to limit or compartmentalize risks by breaking scope of work into smaller packages and seeking fixed price on these smaller packages. Construction Contractors retained a willingness to work on fixed price commercial terms; but, increased their tendency toward claims and disputes processes in order to manage their risks. Collectively, we see a myriad of fixed price scope of work packages being pieced together to form a complete project. Formerly, this mosaic of work scopes was under one Prime Contract. [Read more…]

Filed Under: Claims, Featured, General, Productivity, Project Planning, Projects, Uncategorized Tagged With: Construction Claims, Construction Contract Claims, Construction Contract Planning and Scheduling, contracting strategies, Disruption, George T. McLaughlin PMP, large and complex industrial projects, Large and Complex Projects, McLaughlin & McLaughlin, megaprojects, Productivity Management, Project Execution Plan, Time Management Strategy

PROJECT PLANNING – Managerial Considerations (Part 1)

December 20, 2012 By George T McLaughlin PMP CCM

Introduction

After a long period [since March 2012] of inactivity, McLaughlin and McLaughlin is pleased to resume posting activity in this blog. Project Professionals is intended to offer advice and tips regarding various aspects of Program and Project Management. For a statement of blog Objectives and Goals, please follow this link.

During this inactive period, M&M has been performing two time-consuming assignments. One is program management support work on large Canadian oil sands investment/expansion program. The second is a construction claim on an international power plant project.

In considering the general topic of project planning, consider the following question. Why do so many projects experience serious negative issues, if not failure, when project planning has been pursued? Often the answer is that the plans are defective or ignored. Alignment, implementation and updating are essential features. Good quality plans must be developed and implemented. Often, this is not the case.

[Continued] [Read more…]

Filed Under: Claims, Featured, General, Projects, Uncategorized Tagged With: Best Practices, Chartered Institute of Building (CIOB), Doctor Harold Kerzner, Earned Value Management, McLaughlin & McLaughlin, PMBOK, Preliminary Project Scope Statement, Project Charter, Project Execution Plan, Project Execution Planning, Project Initiation, Project Management Institute (PMI), Project Planning, Project Sponsor, US Army Corps of Engineers (USACE), www.mclaughlinandmclaughlin.com

MANAGING RISK OF DELAY – Subject Series Summary Update

September 15, 2011 By George T McLaughlin PMP CCM

This summary update provides readers with an overview of prior posts and provides a baseline for future posts that will follow on a timely basis. The last summary was posted on June 12, 2011.

This summary is very brief and simply serves as an index for readers to follow. More robust summaries are provided in the June summary. Of course, detailed descriptions are contained in the individual posts.

Ideally this summary provides a starting point to investigate best practice on many delay-related features of project management.

The Context and Challenge (Part 1) – Talk/Speech by Mr. Keith Pickavance

Time-Management Strategy (Part 2) – Strategy according to CIOB Guide

As-Planned Schedule / Accepted Programme (Part 3) – Establishing the Time Management Baseline

Schedule Preparation and Maintenance (Part 4) – Managing the Time Baseline

Earned Value Management (Part 5) – Importance and Management of the Time Baseline Tool

Critical Path and Earned Value Management (Part 6) – Managing with Critical Path, Earned Value Management and Productivity Tools

Earned Value and Schedule Performance Indicators (Part 7) – Time Management Tools

Schedule Specification Sources and Implementation (Part 8) – Managerial Tools with sources

Recognition and Notice (Part 9) – Managerial Alerting and Action Tools

Going forward, we will post other features of MANAGING THE RISK OF DELAY. [Read more…]

Filed Under: Featured, General, Projects, Uncategorized Tagged With: Best Practices, Construction Contract Claims, Construction Contract Delay, Construction Contract Planning and Scheduling, Delay, Earned Value Management, George T. McLaughlin PMP, Managing the Risk of Delay, McLaughlin & McLaughlin, Productivity Management, Project Execution Plan, Project Execution Planning, Risk of Delay, Schedule Specifications, Time Management, Time Management Strategy

RESOURCE CENTER UPGRADE

September 7, 2011 By d.mclaughlin

The purpose of this post is to advise readers that the Project Professionals Resource Center feature or page has been upgraded. Please visit this useful page and familiarize yourself with the content. Please visit the Resource Links page which provides links to useful industry tools and resources. The pages were derived from years of frustration searching for reliable, substantiated references. So, the desires to share our choices are listed on the noted pages.

The Resource Center feature of this McLaughlin and McLaughlin [M&M] blog provides blog visitors with information and links to important and useful publications that relate to project management and dispute resolution in project work.

Recently, the Resource Center was upgraded to include several new publications, cite a new version of Mr. Pickavance’s book on delay and add some useful Resource Link updates. [Read more…]

Filed Under: Claims, Featured, General, Projects, Uncategorized Tagged With: AACE International, ABA, Best Practice, Chartered Institute of Building (CIOB), Construction Industry Institute (CII), Doctor Harold Kerzner, George T. McLaughlin PMP, Keith Pickavance, MCAA, McLaughlin & McLaughlin, NECA, PMBOK, Project Execution Plan, Project Execution Planning, Project Management, Project Management Institute (PMI), Project Planning, US Army Corps of Engineers (USACE)

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