Construction Claims Management Planning<\/span><\/b><\/p>\n This post is the second in a Subject Series<\/a>\u00a0 Construction Claims and Disputes<\/strong> which are (will be) discussions regarding managerial challenges in potential and actual construction claims<\/strong> situations.\u00a0 In this series, we focus on the managerial aspects of construction claims and disputes management.\u00a0 This post addresses the planning, a key managerial requirement in all project work.\u00a0 First plan it, and then do (execute) the work.\u00a0 The notion is consistent with the old adage \u201cAn ounce of prevention [in this case management] is worth a pound of cure.\u201d\u00a0 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.<\/p>\n Yes, construction claims and disputes<\/strong> can and should be managed.\u00a0 This is particularly true of large and complex projects.<\/p>\n Prospective Construction Claims Management<\/strong> 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.<\/p>\n Retrospective Construction Claims Management<\/strong> (development, presentation and defending) will be addressed in another post.<\/p>\n Claims Avoidance<\/strong> – There is a myth that construction claims can be avoided.\u00a0<\/strong> Experience shows that this is just a myth, since it relies on controlling the activities of others.\u00a0 These others may be in an adversarial posture or position.\u00a0 Hence, control cannot be readily achieved.<\/p>\n There are two points in this discussion.\u00a0 Planning is the process for defining and maturing the approach to managing construction claims.\u00a0 The end product (or deliverable) is the Construction Claims Management Plan<\/strong>.<\/p>\n Elements of<\/strong> Construction Claims Management Plan<\/strong>:<\/p>\n <\/p>\n Claim Strategy has the following attributes:<\/strong><\/p>\n <\/p>\n Owner<\/span><\/strong> – Has specific business and project objectives that drive the plan, also, the interfaces may include difficult stakeholder relationships (such as regulatory)<\/p>\n Contractor [Prime]<\/span><\/strong> – Has a complex challenge \u2013 interfaces with owners, other prime contractors, subcontractors, major vendors, and other stakeholders.<\/p>\n Subcontractor<\/span> <\/strong>– Relations with prime and (possibly) with owner.<\/p>\n What could it take?<\/strong><\/p>\n The cost \u2013 benefit tradeoff is several tens of thousands [USD] to develop and implement the plan vs. tens of millions [USD] at issue in some dispute resolution process (although, admittedly later in time).<\/p>\n The best implementation approach is a workshop with key stakeholders present at appropriate times consistent with the subject.\u00a0 Timing should be toward to ending of the initial detailed development of the Project Execution Plan.\u00a0 This allows stakeholders to harmonize the Construction Claims Management Planning and Plan<\/strong> with established execution approaches and intentions.\u00a0 The PEP can be adjusted, if desired, based on the CCMP<\/strong> as it is developed.<\/p>\n We wish you happy reading and good luck in your construction claims and disputes<\/strong> challenges and endeavors.\u00a0 Enlightened management is the key to success, however you<\/span> define success<\/span>.\u00a0 Using this process and tool, you define success and take a large step toward achieving your defined success objectives.<\/p>\n <\/p>\n It is important to note that McLaughlin and McLaughlin [M&M]<\/a> is not a law firm and is not intending to provide legal advice.\u00a0 M&M<\/a> is a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support.\u00a0 The Resource Center<\/a> is for the convenience of blog visitors and M&M <\/a>does not offer this for commercial purposes.\u00a0 For further information on M&M <\/a>services, please see<\/i> <\/i>www.McLaughlinandMcLaughlin.com<\/a>.<\/i><\/p>\n Construction Claims Management Planning This post is the second in a Subject Series\u00a0 Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations.\u00a0 In this series, we focus on the managerial aspects of construction claims and disputes management.\u00a0 This post addresses the planning, a key managerial 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