Archive for the ‘Construction Claims’ Category

Trying Your Luck – Where do you draw the line with your claim submissions?

I was recently asked a question by one of our distance learning students which, at some time or another, you may have asked yourself. The question was:

Where do you draw the line when it comes to ‘trying your luck’? Is it better to be realistic in your claim submissions, taking your own delays into consideration, or do you submit all, knowing that they’re incorrect, and wait for the Engineer to ‘catch you out’?’

Obviously, a scenario where the claim is solid and difficult to refute is preferred, but there will often be ‘grey’ areas when it comes to entitlement or quantum. When preparing claim submissions for clients, we give our client the benefit of the doubt within the claim and if the Engineer notices these or disagrees with them, then this will be a basis for negotiation. It’s always good to give the other side something where they can score a few points to show that they are doing their job. To answer the question though, I think that there should be two parts to my answer. (more…)

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Top 10 Secrets of Successful Subcontract Commercial & Claims Management

It is no secret at all that subcontracting is one of the highest risk sectors within our industry. Subcontractors suffer more than most from the mistakes and misdemeanours of others. If the project is poorly funded then the Main Contractor’s first course of action is to reduce outgoings. The easiest way to do this is to delay or limit payments to Subcontractors.

If the Main Contractor feels the pain of liquidated damages or the rejection of interim payment applications then the first to feel the impact will again be the Subcontractors (and often for reasons completely out with the Subcontractors’ own performance!). This is not the result of malice, rather an unpleasant commercial inevitability in jurisdictions without statutory protection for Subcontractors.  The reality is that the further you are away from the source of the project funding, the less likely it is that the cash will find its way to you.

However, there is much that the weary and / or wary Subcontractor can do to minimise their risk and maximise their recoveries. Here are our top 10:

“Back to Back” or “Pay when Paid”- Is it really? The authors of this piece very much doubt that this is indeed the case. What people declare as being “back to back” is rarely so. A Main Contractor may not have been paid for a variety of reasons. Unless those reasons expressly relate to your performance then you may legitimately ask why this has anything to do with you at all. Ask yourself “If the Employer never pays the Main Contractor does that mean I will never be paid?” Is that what you actually signed? We find this rarely to be the case and is often a cause of great confusion between Contractors and Subcontractors who blur the difference between the commercial reality of their financial position and the conditions of the Subcontract they have entered into. (more…)

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Construction Claims Basic and Intermediate E-Courses: What’s the difference?

We currently have two e-course options on the topic of Construction Claims: Basic and Intermediate. But what’s the difference? And which one should you take if you’re looking improve how you write and manage construction claims? In this blog we look at each course and answer those questions to help you decide which one could be best for you…
Construction Claims Basic E-Course

The Construction Claims Basic E-Course is our ‘no frills’ course. You get 24 video tutorials delivered via 6 modules that focus on:

  1. Contract Administration for Claims
  2. Types of Claims and Procedures
  3. Delay Analysis
  4. The Essential Elements to a Successful Claim
  5. Compilation and Presentation of Claims and Responses
  6. Responses, Determinations and Disputes

You simply sign up and work through the videos at your own pace. 

Construction Claims Intermediate E-Course

By comparison, the Construction Claims Intermediate E-Course offers a more practical and involved learning experience.

You still get 24 video tutorials delivered via the same 6 modules but you also get: (more…)

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E-Course Trial | Leveraging Lessons and Implementing Improvements

It’s no secret by now (we hope!) that Claims Class is launching e-courses in 2017 and, over the past couple of months, we have been running a trial of our first e-course, a Construction Claims Intermediate E-Course.

Running the trial was definitely a worthy exercise. We gained some great feedback from our students and learnt some valuable lessons ourselves, all of which have gone into improving the course and creating the final version. In this blog, we explore the trial process, share the key takeaways and showcase the final version of the e-course.

The Trial

The trial included 18 students from all over the world who agreed to complete the course within a given time-frame and provide feedback on each module as they progressed through the course. When the trial ended, we had gathered 108 feedback forms that gave us key insight into the following areas: (more…)

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Crisis for Gulf Construction Companies?

Let’s take a look at what has been happening in the Gulf construction market recently.

Drake & Skull announced plans for a major restructuring after suffering losses in 2016 of AED 787M, an improvement on 2015 when they lost AED 939M. A few weeks ago 8,000 employees of the 40 year old company Saudi Oger received letters announcing that 31st July 2017 will be their last day at work. The company apparently owes $3.5Bn to Saudi banks. Arabtec needed a cash injection early this year too after announcing losses of AED 3.4Bn in 2016. In 2015 the losses were reported at AED 2.35Bn. In March last year Al Jaber missed a debt repayment of AED16.2Bn which had been put in place in 2014 to restructure the company and in August, they announced the sale of their share in ALEC and the Shangri-La Hotel Abu Dhabi to finance yet another restructuring exercise. Then there’s the fall out between Al Habtoor and Leighton, the list goes on and this is just the tip of the iceberg for the Gulf construction industry…the small sub-contractors, sub sub-contractors and suppliers don’t make news in the financial press.

What is going on with contractors in the Gulf? Is there no work?

(more…)

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