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E-Courses Explained | Everything you need to know

In a recent blog we announced that Claims Class will launch a series of e-courses in 2017. If you don’t know what e-courses are, have never taken one before and have no idea why we’re so excited about launching them, then read on, this blog is for you…
What is an e-course?

Simply put, e-courses are online training courses where you access the content electronically, via an online learning system, or you receive it via email.

How is an e-course delivered?

There are a variety of ways e-courses are delivered and plenty of tools to help course providers deliver the content in an engaging and interactive way. There are some common delivery methods though and those include: (more…)

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Introducing E-Courses for Quality and Convenient Learning

Firstly, we would like to wish all our blog readers a happy, healthy and prosperous New Year. We realise this is more than a little delayed (we can’t believe it’s March already!) but that’s because we have been busy behind the scenes working on a new and improved version of Claims Class AND we’re excited to now be able to share some details of our plans with you!

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In 2017, Claims Class will be venturing into the world of e-courses!

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Why? Well…

Claims Class is a small and friendly training and education provider and over the past 5 years we have grown the Claims Class brand and delivered courses across the Middle East, South- Asia, the UK, South Africa and Ireland.

During this time, we have built a good reputation for our training and we now receive enquiries from people all over the world asking if we plan to present our training courses in their countries.

Whilst we would love to deliver our courses in more regions, costs and logistics mean that we need large numbers of attendees for the courses to be economically viable and, without good connections for marketing, this becomes a challenge.

Times have also changed. Whilst there is still great benefit in attending face-to-face training courses (and don’t’ worry, we’ll continue to run those), we realise that busy, time-constrained professionals want access to quality training at times and from locations that are convenient to them. We wanted to meet that need.

So, what can you expect from our e-courses?

(more…)

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How to Calculate the Recovery of Preliminaries on a Reduced Scope of Works

I was recently contacted by a blog reader who requested some advice on a project in Qatar where the Employer omitted a large part of the Works and also wanted to deduct money from the Contractor’s preliminaries as part of the price adjustment.

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I thought that this would make an interesting case to share with the rest of our readers so, the scenario was as follows:

The Contract Price is a Fixed Price Lump Sum.

The Contract Bill of Quantities contains all-inclusive rates which include preliminaries, overheads and profit. No separate prices for preliminaries are included.

After approximately 75% of the works were completed the Employer omitted a large portion of the balance works, which will not be completed by others.

Whilst the Contractor recognises that the Employer is entitled to a saving for the omission, the Employer wants to evaluate the omission at the full Bill of Quantities rates for the omitted items which, include for preliminaries.

The Contractor believes that whilst the Employer is entitled to a saving for the omitted Bill of Quantities items, the Contractor should be entitled to a proportion for the prelims costs incurred up to the date of the omission and based on the fact that 75% of the works were completed.

The Contract notes that the Contractor shall not be entitled to any financial compensation for a reduced scope, but remains silent on costs incurred for preliminaries.

This is not an unusual situation and again seems to be a case of the Employer wanting to have his cake and eat it, or maybe it’s just a lack of appreciation of the situation. My advice was as follows:

I think that the Contractor is on the right track as you have described things.

You did not mention how the contract period has been affected by the large reduction in scope. This is not necessarily a problem, but you need to bear in mind that the calculations that I am about to suggest will be affected if the contract period is reduced.

Firstly, the rates include for preliminaries and general items, but presumably these cannot be separately identified. It would however be possible to price the preliminaries as a separate calculation and it would be even better if the calculation is based upon actual costs, rather than an estimate, as would have been the case at the time of tender.

The calculation should be based on the following:

Mobilisation costs – this could be based on actuals;

Time related costs – again, much of this could be based on actuals and should include:

Site management and admin staff;

Non-productive staff – HSE, time keepers, drivers, store men etc.;

Site establishment – offices, workshops, stores, phones, stationary, etc.;

Non-productive plant, vehicles and equipment;

Bonds, guarantees, financing costs;

Head office overheads;

Demobilisation costs.

Mobilisation and demobilisation costs would remain fixed for both the original and the reduced scope.

Time related costs should be based on the original contract period.

You can then calculate the value included in the lump sum price for the preliminaries.

It would then be a simple matter to calculate the recovery that is required for the above and to then check if the value of the reduced scope provides full recovery. If not, the difference should be claimable as a cost incurred due to the reduced scope.

Had the Contractor not signed away his rights, there would also be a good argument or the recovery of lost profit.

I hope that sheds some light on this topic and helps you if you’re faced with a similar situation on a project. Experienced a similar situation? Comment below, share your experiences and how it was resolved.

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New Top Tips Paper! Application of Dispute Boards on Construction Projects

Most contracts have provisions whereby the Engineer, or his equivalent under other forms of contract, is required to make a fair determination of the claim. They also include a requirement that the parties attempt to reach amicable agreement in situations where either party does not accept the Engineer’s determination. (more…)

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Extension of Time Claims – 4 Key Elements to Include

A previous Top Tips Paper, The Preliminaries to the Claim, covered the preliminaries to the claim and explained how essential information should be presented at the front end of the claim. This ensures that a reader with no prior knowledge of the project or circumstances leading to the claim may gain an understanding of the project, the parties, the contract and brief details of the claim, before studying the essential matters of the claim itself.

 

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So, having set the scene for our ‘story’, we are going to move on to the part of the claim where the action takes place for an extension of time claim and which is where we need to discuss 4 key elements that are essential to proving the case:

  • Cause
  • Effect
  • Delay analysis
  • Entitlement

Read the full Top Tips paper, Extension of Time Claims – 4 Key Elements to Include.

 

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