Managing Change Orders and Contractual Claims Course

Course Objectives

By the end of this course, participants will be able to:

• Identify and avoid causes for contractual claims and change orders
• Outline the significant elements of the contract change process and identify different types of changes and variations
• Recognize and analyze the different types of owners' claims and contractors' claims and identify methods to deal with each type
• Evaluate time-related claims and cost-related claims and assess their impact
• Demonstrate, through actual situations, the different approaches to handling claims and variation orders and resolving conflicts through mutual collaborati

Course Outline:

Module 1: Overview of Contracts, Changes, and Claims

• Basic concepts in contract law:
  • Force majeure
  • Notices: The neglected clause
  • Breach of contract
  • Right to remedy
  • Indemnifications and liabilities
• Why do claims and changes occur: The red flags

Module 2: Change Management

• Common causes for changes
• Requirements of change management
• Types of changes and variation
  • Directed changes
  • Constructive changes
  • Cardinal changes
• Writing a variation order

Module 3: Types of Claims

• Drafting a notice
• Owner’s claims
  • Defective work
  • Warranty claims
• Contractor’s claims
  • Changed conditions
  • Constructive changes
  • Delays and suspensions
  • Deficiencies in plans and specifications
  • Program extensions
• FIDIC claims

Module 4: Evaluation of Claims

• Time-related claims
• Excusable and non-excusable delays
• Evaluating delays
• Cost-related claims
• Cost calculations
• Drafting a claim

Module 5: Resolving Claims and Disputes

• Negotiation: Common practices
• Reaching a settlement
• Alternative Dispute Resolution (ADR):
  • Mediation: Neutral third party
  • Arbitration: Binding and non-binding
• Resolution through legal means
• Contract interpretation