Lump Sum Cash Contract

What is Included in 'Lump Sum'?

A simple matter that often causes confusion is exactly what is included in a lump-sum price.

Take a typical contract designed by the employer. The contractor is required under the contract to provide the works defined on the drawings and in the specification. In other words, the drawings show the extent and the configuration of the design. The specification describes the composition and quality of the work. Thus, it is clear that the lump-sum requires the contractor to provide whatever is included in the drawings and specification.

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construction 2020

Reflections on Construction in 2020

To say that 2020 has been an unusual year would be an understatement. Not just for the construction industry, but for all of us around the world. Despite the challenges, things are not entirely doom and gloom. We have all learned in one way or another from the COVID-19 experience. Sometimes we need a challenge to force us to think about alternative ways of doing things.

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Construction contract FIDIC 2017 notice of claim

How Does FIDIC 2017 Affect Claims?

I guess like many of you, I have not had the opportunity to examine the 2017 editions of the FIDIC contracts in much detail, because as yet, I have not come across any projects that are using them. This situation will, however, gradually change. As it does, we will need to know what has changed and how it has changed. As such projects reach final account stage there will undoubtedly be claims to resolve and disputes to settle. I have recently been doing research for a forthcoming book, so thought it would be worthwhile to highlight the changes from a claims perspective.

Employer's Claims

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Need Staff Training During Lockdown? No Problem!

Whilst COVID-19 has caused immeasurable harm, it has at least taught us one good thing: people can work from home without a loss of efficiency.

But what about staff training?

Video conferencing (think Zoom, MS Teams, etc.) is being used to great effect. Remote working and meetings have saved time and cut down on travel costs. The sharing of information via webinars has also seen a huge upsurge in recent months.

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Avoid Construction Disputes

How Education and Training Avoids Disputes

I don't usually have much to say about education and training or attempt to promote our Claims Class courses through our blogs. But, this month I am going to make an exception and for good reason. Recent reports demonstrate that education and training will avoid time-consuming and costly construction disputes.

HKA’s report, Claims and Dispute Causation – a Global Market Sector Analysis and ARCADIS’s Global Construction Disputes Report 2019 are both pretty scathing. Both point to a lack level of knowledge exhibit when it comes down to contractual matters and claims.

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COVID-19 Suspension

COVID-19: Options for Construction Parties - Suspension & Termination?

In my last blog, I discussed the effects of COVID-19 and major disruption under the FIDIC Red and Yellow Books. Particularly whether contractors are entitled to claim for an extension of time and/or costs. But what other options are available, and what do the contracts say about suspension or termination?

My advice was just a few weeks ago. At that time, some contractors were anticipating delays. Firstly caused by supply chain problems associated with plant, goods or materials sourced from China. Secondly by the travel restrictions which were in place. My thoughts were that,  the Contractor will be entitled to an extension of time provided he can demonstrate delay to the Time for Completion and/or the incurrence of Cost. He may also be entitled to claim for additional payment for Cost incurred.

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Force Majeure

The Perfect Claim

Exciting news: We spent a large chunk of 2019 developing a new course, The Perfect Claim. Now, we’re ready to share it with you in 2020. But first, let’s take a step back. Why the need for another course?

Well…

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Case Study: In-House Training for Government Employees in Africa

As well as delivering online e-courses, we offer in-house training for companies. We were approached by the government department responsible for roads and highways in an African country. The department was experiencing several problems related to claims and wanted to train their in-house staff on how claims should be managed effectively. The problems were:Read more


Q&A: Delay Analysis

In partnership with the CIOB, Claims Class is running a series of monthly webinars on construction claims. The webinars cover some of the modules Construction Claims e-courses. In this webinar, we took a look at preparing a delay analysis.

At the end of each webinar, we invite questions and send the attendees answers to any questions that we do not have time to answer during the webinar. We've received good feedback from the two previous blogs on Q&A: Contract Administration and Q&A: Types of Claim.  So, I've decided to do the same for this month's blog. The following are questions and answers from the webinar on Delay Analysis.Read more


construction claims responses and determinations, changes in legislation

Q&A: Types of Construction Claims

In partnership with the CIOB, Claims Class is running a series of monthly webinars on construction claims. The webinars are a condensed version of our Construction Claims e-courses. This post includes questions around claims for variations, FIDIC 1999, prevention, changes in legislation, prolongation costs and a host of other topics.

At the end of each webinar, we invite questions and send the attendees answers to any questions that we do not have time to answer during the webinar. I thought that this would provide some useful insight to our blog readers. The following are questions and answers from the webinar on Types of Claim.Read more