DUBAI 5] baad dy palh SI wy Gaia |) dag tS SOCIETY of ENGINEERS - UAE Lp py ™ center15.51. 08 Course Programme * Section 1: Claims -- What they are and why they occur * Section 2: Claims Types * Section 3: Claims and Contract Clauses * Section 4: Claims Preparation and Documentation * Section 5: Claims Avoidance » Section6: Claims Settlement and Dispute Resolution De. Nabil Shehadeh © 3 Definition of Clainy GB oy UE A general term for the assertion of a right to money, propery we Oratemedy. pice insurance Claims An Applications, requests, entitlements and claims pursuant to any Construction Contract for payment other than tor physically measurable work and/or setvices and incindes applications, requests, entitlements and claims for sy extension of the Time for Completion including, bus not | limited to, those related to prolongation, disruption, acceleration, mitigation and the like. De. Nabil Shehadeh © 4What they are and why they occur Claims ate generally made by the Patties due to one ot all the » following circumstances’: De. Nabil Shehadeh © 5 Dr, Nabil Shehadeh ©ia Dr. Nabil Shehadeh © ‘De. Nabil Shchadeh © (Corl)are eye De. Nabil Shehadeh © De. Nabil Shehadeh ©Constructive Changes by Employer ‘Extra Work | * The Employer requires work that is not in the contract + The Employer misinterprets contract plans and specifications [/ke @F] + Response to an RFI * Rejection of submittals. De. Nabil Shehadeh © " Constructive Changes by Employer Over Inspection’ + Employer exceeds the bounds of its right to inspect. * Tolerances are enforced mote strictly than the contract requires + Inspectors direct performance of the work in a specific way. De. Nabil Shehadeh © 12A delay occurs when an activity takes longer than its planned duration to complete. For a delay to be tecoverable, it must affect the critical path of the project by either increasing the duration of an activity De. Nabil Shehadeh © Delays ‘Site access or availability. + When the contractor scheduled activities have the need for a tight of way or a location to proceed and the Employer fails to provide it on time + Employer fails to obtain building permits + Employer fails to obtain a right of way + Employer fails to coordinate with utility companies during project design \~ Approval of Submittals * Late approval : * Unreasonable rejection c(t Adverse Weather tye Advens + The weather is adverse * The weather is unusual for the location and time of year De. Nabil Shehadeh ©Delays — Example Approval of Submittals Noa. ‘Submittals Clause 14 Programme Dates Submission No] Submitsionto | xceped | ToulFioa | OndaDae | Snot | Delay | Read Cenastanr | Approval | Gan) Fabrication | Ste aciviy (onracu! ‘eommenceen 3 t Actual Dates Submision Rejecion | Submision | Rejeaion | OnderDae | Sanof | Delivayeo | Retna Constant No.1 | /ApprovalNo.t 0 | JAppeova Fabrcaica | Ste aciviy constant | No ‘cammencamen Delays De. Nabil Shehadeh © ° Impact of added work on the construction schedule De. Nabil Shehadeh © — . si ‘The contractors required to proceed immediately. stDelays * Stop work order *¢ Delay in furnishing Employer-furnished property * Slow RFI response * Unfavourable season 2c ne = Mie is = aetlne ns tle . Missed-manu a facturing schedul le * Escalation of contractor’s cost Dr. Nabil Shehadeh © 7 De. Nabil Shehadeh © 18Disruption of work * Contractor’s plan for performance is altered Contractor increases work hours, crew, ot equipment + Slow zesponse to RFI’s and submittals + Allarge number of Variations. De. Nabil Shehadeh @ Dr. Nabil Shehadeh © 20- Acceleration of Work . Contractor is required to complete work faster than planned * Extra work orders are issued, but Employer does not increase contract performance period * Requests for additional time are denied Cees De. Nabil Shehadeh © De. Nabil Shehadeh © 24 22Differing Site Conditions OVE! - ee + Actual Conditions differ materially from those indicated, i.e. contract : ca é . , encountered on site + Examples: z frock : : - location of underground utilities are not where shown, ‘ aa ; A a a Dr. Nabil Shehadeh © 23 De. Nabil Shehadeh © 24De. Nabil Shehadeh © Claims Types — By Entitlement capacity Fires eer “si Epidemics, Quarantine restrictions Strikes 11.4) Dr. Nabil Shehadeh ©Claims Types — By Entitlement De. Nabil Shehadeh © aT Claims ‘Types — By Entitlement De. Nabil Shehadeh © 28Dr. Nabil Shehadeh © 29 Claims and Contract Clauses De. Nabil Shehadeh © 30Thebasis-of belai Work - carried out as described in, or as reasonably to be inferred from, the contcact. Seer re necasssesbenlestantitial peeoroeasiaesesielaesndamianatioe De. Nabil Shehadeh © Ki There is a chorce thot all Closes in the coatiact can be used as basis for claim Contractual Claims Contract Clauses) rrp1 2" + Clause 1.9 Delayed Drawings or Instructions © Classe 2.1 Right of access to the Site. = Clause 4.6 Cooperation + Clause 4.7 Setting out * Clause 4.12 Unforeseeable Physical Conditions. * Clause 4.24 Fossils. ° Clause 5.1 Nominated Subcontractors © Clause 7.5 Rejection (Testing) + Clause 8.5 Delays Caused by Authorities. © Clause 8.9 Consequences of Suspension. © Clause 10.2 Taking Over of Parts of the Works + Clause 10.3 Interference with Tests on Completion Ds. Nabil Shehadeh © 32Contractual Claims Contract Clauses © Clause 11.2 Cost of Remedying Defects. + Clause 11.8 Contractor to Search . Clause 12.3 Evaluation * Clause 13.3 Variation Procedure. + Clause 15.4 Payment after Termination * Clause 16.1 Contractor’s Exntitlement to Suspend Work = Clause 174 Consequence of Employer's Risks. + Clause 19.1 Definition of Force Majeure * Clause 20.1 Contractor's Claims. + Clause 20.2 Appointment of the Dispute Adjudication Board * Clause 20.5 Auicable Settlement + Clause 20.7 Failure to Comply with Dispute Adjudication Board's Decision De. Nabil Shehadeh © 33 Contractual Claims Contract Clauses + Clause 1.9 Delayed Drawings or Instructions! The Contractor shall give notice to the Engineer whenever swe Works are likely to be delayed or disrupted if any necsry drawing or instruction is not issued to the Contractor») 4 particular time, which shall be reasonable. The notic: include details of the necessary drawing or instruction, 4 of why and by when it should be issued, and details of tne narure and amount of the delay or disruption likely to be sujjcrcd if it as Jate. De. Nabil Shehadeh © 34Contractual Claims Contract Clauses + 24 Right of Access to the Site The Employer shall give the Contractor right of access to and possession of, all parts of the Site within the time (or times) stated in the Appendix to Tender. The right and possession may not be exclusive to the Contractor...... However, the Employer may withhold any such right or possession until the Performance Security has been received . Dr. Nabil Shehadeh © 35 Contractual Claims Contract Clauses * 4.6 Co-operation The Contractor shall, as specified in the Contract or as instriwive: 4, tin Engineer, allow appropriate opportunities for carrying out wo: « (a) The Employer's Personnel, (0) Any other contractors employed by the Employer, and (c) The personnel of any legally constituted public authorities, Who may be employed in the execution on or near the Site of any svi. uot included in the contract. Ds. Nabil Shehadeh © 36Contractual Claims Contract Clauses ° 4.7 Setting Out! The Contractor shall set out the Works in relation to original points, lines and levels of reference specified in the Contract or notified by the Engineer. The Employer shall be responsible for any errors in these specified or notified items of reference, but the Contractor shall use reasonable efforts to verify their accuracy before they are used. Dr. Nabil Shehadeh © 37 Contractual Claims Contract Clauses ° 4.12 Unforeseeable Physical Conditions “physical conditions” means natural physical conditions «n/ “man- Conditions made and other physical obstructions pollutants, which the Contractor encounters at the Siic escecuting the Works, including sub-surface and hydro toxic conditions but excluding climatic conditions. Dr. Nabil Shehadeh ©Contractual Claims Contract Clauses ° 4.24 Fossils All fossils, coins, articles of value or antiquity, and structures and other remains or items of geological or archaeological interest found on the Site shall be placed under the care and authority of the Employer If the Contractor suffers delay and/or incurs Cost from complying with the instructions, the Contractor shall give a further notice to the Engineer De. Nabil Shehadeh © 39 Contractual Claims Contract Clauses ° 5.1 Nominated Subcontractors Definition of “nominated In the Contract, “nominated Subcontractor” means a Subcontractor: Subcontractor” (4) who is stated in the Contract as being a nominated Subcontractor; or (2) whom the Engineer, under Clause 13 [ and Adjustments], instructs the Contractor to employ as a Subcontractor. Dr. Nabil Shetiadeh © 40Contractual Claims Contract Clauses ° 7.5 Rejection (Testing) If, as a result of an examination, inspection, measurement or testing, any Plant, Materials or workmanship ts found to be defective or otherwise not in accordance with the Contract, the Engineer may reject the Plant, Materials or workmanship by giving notice to the Contractor; with reasons. The Contractor shall then promptly make good the defect and ensure that the rejected item complies with the Contract.. De. Nabil Shehadeh © a Contractual Claims Contract Clauses * 85 Delays Caused by Authorities Tf the following conditions apply, namely: (a) the Contractor has diligently followed the procedures laid dowi by the relevant legally constituted public authorities in ‘he Country, (b) these authorities delay or disrupt the Contractor’s work. (0) the delay or disruption was Unforeseeable, then this delay or disruption will be considered as a ca delay Dr. Nabil Shehadeh © 42Contractual Claims Contract Clauses * 8.9 Consequences of Suspension If the Contractor suffers delay and/or incurs Cost from complying with the Engineer’s instructions under Sub-Clause 8.8 [Suspension of Work] and/or from resuming the Suspension work, the Contractor shall give notéce to the Engineer Dr. Nabil Shehadeh @ 43 Contractual Claims Contract Clauses * 10.2 Taking-Over of Parts of the Works + The Engineer may, at the sole discretion of the Emplover, iscve a Taking Over Certificate for any part of the Permanent If the Contractor incurs Cost as a result of the Emplover taking over and/or using a part of the Works, other ‘oon ech use as is specified in the Contract or agreed by the Coviracior, the Contractor shall (i) give notice to the Engineer Dr. Nabil Shehadeh © 44Contractual Claims Contract Clauses * 10.3 Interference with Tests on Completion | If the Contractor is prevented, for more than 14 days, from carrying out the Tests on Completion by a cause for which the Employer is responsible, the Employer shall be deemed to have taken over the Works or Section on the date when the Tests on Completion would otherwise have been completed. If the Contractor suffers delay and/or incurs Cost as a result of this delay in carrying out the Tests on Completion, the Contractor shall give notice to the Engineer Ds. Nabil Shehadeh © 45 Contractual Claims Contract Clauses + 11.2 Cost of Remedying Defects All work referred to in sub-paragraph (b) of Sub-Clause 11. [Completion of Outstanding Work and Remedying Defects] 5.1 executed at the risk and cost of the Contractor, if and to the extent that the work ts attributable to: (4) any design for which the Contractor is responsible, (2) Plant, Materials or workmanship not being in accordaisce 0" hs Contract, or (0) failure by the Contractor to comply with any other oblin.’ If and to the extent that such work is attributable to any ot! 2 Contractor shall be notified promptly by (or on behalf of) the Linspuyer, and Sub-Clause 13.3 [Variation Procedure] shall apply Dr. Nabil Shehadeh © 46Contractual Claims Contract Clauses * 11.8 Contractor to Search \ The Contractor shall, if required by the Engineer; search for the cause of any defect, under the direction of the Engineer. Unless the defect is to be remedied at the cost of the Contractor under Sub-Clause 11 .2 [Cost of Remedying Defects], the Cost of the search plus reasonable profit shall be agreed or determined by the Engineer Dr. Nabil Shehadeh © aT Contractual Claims Contract Clauses * 12.3 Evaluation « Except as otherwise stated in the Contract, the Engineer shall proceed in accordance with Sub-Clause 3.5 [Deterninatio] to agree or determine the Contract Price by evaluating eo) jvm of work, applying the measurement agreed or determined . For each item of work, the appropriate rate or price for the iter shall be the rate or price specified for such item in the Contract or, if there is no such item, specified for similar work. However, a new rate or price shall be appropriate for an ite of work if...... i (4) the measured quantity of the item is changed by more than 10% (b) no rate or price is specified in the Contract for this item’ Dr. Nabil Shetadeh © 48Contractual Claims Contract Clauses * 13.3 Variation Procedures If the Engineer requests prior to instructing a Variation, the Contractor shall respond in writing as soon as practicable, eather by giving reasons why he cannot comply or by submitting: (a) A description of the proposed work to be performed and a programme for its execution, (2) The Contractor's proposal for any necessary modifications to the programme according to Sub-Clause 8.3 (c) The Contractor's proposal for evaluation of the Variation. The Engineer shall, as soon as practicable after receiving such proposal , respond with approval) disapproval or comments: The Contractor shall: De. Nabil Shehadeh © 49 Contractual Claims Contract Clauses + 154 Payment after Verminalion ¢ Afier a notice of termination under Sub-Clause 15.2 [Termination by Employer] has taken effect, the Employer may: (a) Proceed in accordance with Sub-Clause 2.5 [Employer's Clair], (b) Withhold further payments to the Contractor until the costs of execution, completion and remedying of any defects, damages for delay in completion (if any), and all other costs incurred by the Employer, have been established, and/or (c) Recover from the Contractor any losses and damages incurred by the Employer and any extra costs of completing the Works, De. Nabil Shehadeh © 50Contractual Claims Contract Clauses * 16.1 Contractor's Entitlement to Suspend Work If the Engineer fails to certify in accordance with Sub-Clause 14.6 [Issue of Interim Payment Certificates] or the Employer fails to comply with Sub-Clause 2.4 [Employer's Financial Arrangements] or Sub-Clause 14.7[ Payment], the Contractor may, after giving not less than 21 days’ notice to the Employer, suspend work (or reduce the rate of work) unless and until the Contractor has received the Payment Certificate, reasonable evidence or payment, as the case may be and as described in the notice. Ds. Nabil Shehadeh © 51 Contractual Claims Contract Clauses ° 174 Consequences of Employer's Risks If and to the extent that any of the risks listed in Sub-Clause 17.3 above results in loss or damage to the Works, Goods or Contractor’s Documents, the Contractor shall promptly give notice to the Eingineer and shall rectify this loss or damage to the extent required by the Engineer. If the Contractor suffers delay and/ or incurs Cost from rectifying this loss or damage, the Contractor shall give a Jurther notice to the Engineer De. Nabil Shehadeh © 52Contractual Claims Contract Clauses ° 19.1 Definition of Force Majeure In this clause, “Force Majeure” means an exceptional event or circumstance: (a) Which is beyond a party’s control. (2) Which such Party could not reasonably have provided against before entering into the Contract, (c) Which, having arisen, such Party could not reasonably have avoided or overcome, (4) Which is not substantially attributable to the other Party. Ds. Nabil Shehadeh © 53 Contractual Claims Contract Clauses © 20.1 Contractor’s Claims § If the Contractor considers himself to be entitled to any extension of the-Time for Completion and/or any additional payment, under any Clause of these Conditions or otherwise in connection with the Contract, the Contractor shall give notice to the Engineer, describing the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became-aware, or- > Should have become aware, of the event or circumstance. exPefience Ne L From Knowled4e De. Nabil Shehadeh © 54Contractual Claims Contract Clauses ° 20.1 Contractor's Claims (Cont) the Contractor shall send further interim claims at monthly intervals, giving the accumulated delay and/or amount claimed, and such further particulars as the Engineer may reasonably require De. Nabil Shehadeh © 55 Contractual Claims Contract Clauses * 20.2 Appointment of the Dispute Adjudication Board « Disputes shall be adjudicated by a DAB in accordance 27th Sub-Clause 20.4 [Obtaining Dispute Adjudication Bourd’s Decision]. The Parties shall jointly appoint a DAB ly the date stated in the Appendix to Tender. ined ior > After Engineer dete contract the contract De. Nabil Shehadeh © 56Contractual Claims Contract Clauses ad ° 20.5 Amicable Settlement’ Where notice of dissatisfaction has been given under Sub- Clause 20.4 above, both Parties shall attempt to settle the dispute amicably before the commencement of arbitration. De, Nabil Shehadeh © 57 Contractual Claims Contract Clauses © 20:7 Failure to Comply with Dispute Adjudication Board’s ¢ Decision’ In the event that: (a) neither Party has given notice of dissatisfaction 1 he period stated (b) The DAB’s related decision has become final av! (c) A Party fails to comply with this decision, then the othe Party may, without prejudice to any other rights ivy Dave, refer the failure itself to arbitration Under Sub-Chaise 20.6: [Arbitration] Dr. Nabil Shehadeh © 58‘Dr. Nabil Shehadeh © 59 Claims Preparation and Decumentation Ds. Nabil Shehadeh @ 60Evidence ee satisfaction of the engineer his entitlement to the amount ps ely claimed. ‘He who asserts roust prove’is a basic legal maxim, and the cee pe standard of proof is that on the balance of probabilities. woe y? Dr. Nabil Shehadch © 61 Dr. Nabil Shehadeh ©Claims Preparation and Documentation L W, , dL 110 Bae qe see whet the client storls with Copies of the following documents related to each claims heading Cost breakdown for tender rates. Cece ——e ee The following are guidelines for the contents and format of the claims reports. 1.CONTENT 1.2 Contract Documents’ Copies of parts/ pages of contract documents related to each claim heading - * Drawings (showing number and revision) * Specification (showing reference number and page number) De. Nabil Shehadeh © 63 Claims Preparation and Decumentation 1.3 Programmey " Contractual Programme (tender stage). Detailed Base Programme-Clause 14 (post contract award). = Programme Revisions Conditions on Programme, listed by Contractor Consultant's Report on the Detailed Base programme Minutes of meeting and correspondences related to the base programme an ai'y revisions. Schedule of Dates (relevant to the contract or claims) Progress of Work - Planned and Actual (S-Curve) As-built CPM Programme. Dr. Nabil Shehadeh © 64Claims Preparation and Decumentation 1.4 Resources) * Site Overhead - Planned and Actual: identification of site resources associated with a particular event (monthly and cumulative S-Curve) = Project Direct Resources (equipment, labour, material) - Planned and Actual (monthly and cumulative $-Curve) = Contract Cash Flow - Planned and Actual (monthly and cumulative S-Curve) Records of any delays in the receipt of materials, equipment and labours. eA, bevrees planned production rates and actual production rates. De. Nabil Shehadeh © 65 Claims Preparation and Documentation 1.5 Contractual Background, = List ofall Contract Clauses that relates to each claims headings. «Extracts of all relevant Conditions of Contract clauses. This to include clauses that both the contractor and consultant referred to in their argument. . Details of any non-standard contract clauses. Cause and Effect Analysis = Well-defined Claims Heading e.g. Disruption, Delay, Acceleration, etc. Compliance with the C/aims Notice. Compliance with all Government Regulations. ((10' eu). (ow) 5) Ds. Nabil Shehadeh © 66Claims Preparation and Documentation . Conall Record of Correspondence. including date issued and date teceived. " Copies of Relevant Correspondence in a Chronological Order = Drawings Registration Log. to include title of drawings, revisions ete = Technical Submittals Log: to include the description of each submittal, date of submission, date of approvals, = Details of all Notices to Claim and Verbal/ Written Instructions. Dr. Nabil Shehadeh © 67 Claims Preparation and Documentation 1.6 Documentation (cont) Ci 1. Resources (labour and plant) Allocation b. Site diaries , c. Time sheets d. Cost records c. Photographs. f f. Project Organisation Structures (for contractor and consultant), key pers: vie! deiolls e.g: positions, contacts etc. & Monthly Progress Reports (Summary/Executive Level). +h. Minutes of Meeting (cegulac and special). De. Nabil Shehadeh © 68Claims Preparation and Documentation 1.6 Documentation (cont) Copies of any of the following records that is relevant to the case: Partial /Substantial Completion Certificates. * Variation Orders Record: with backup computations, correspondence, etc. = Payment Records: advances, requisitioned, paid, retention. * Procurement and Delivery Notes: delivery schedule, delivery tickets, invoices. = Laboratory Test Results: that was carried out at pre-tender stage and at construction stage. " — Site Safety Record = NOC Record: at design stage and at construction stage. De. Nabil Shebadeh © 68 Claims Preparation and Docurhentation Bach record should be linked to each individual ¢}i0') )og3 properly referenced and dated; marked with consultants / Engineer couse 0 us record. Il. ‘Documents Classification: a typical classification for the documents coding: a. Sender/receiver b. Reference: c. Date d. Type of document e. Contents > Bysubject & Byissue (factual legal) > ByVO, Dispute or Claim No > By Keywords £ Programme activity number. g Claim Heading. Dr. Nabil Shehadeh © 70swk Claims Preparation and Documentatioi) Cost Data camel Disruption to Progress and Loss of Efficiency | 1. Osiginal activity duration; Actual activity duration; Planned resources for affected activity (based on Clause 14 Programme or Other Programme Actual resources assigned to the affected activity; Comparison of above with normal industry standards; ‘Tender Cost Breakdown of the above costs; Cause and effect analysis; Original Productivity Calculations (based on Clause 14 Programme or Other Programme s 9. Actual (affected) productivity; 10. ‘The source of data upon which calculations have been based; 11, Planned crew sizes (based on Clause 14 Programme or Other Programme; and 12. Actual crew sizes. oe} a ea Dr. Nabil Shehadeh © 71 Claims Preparation and Documentation 2. Format * Executive Summary. * Clauses under which the Contractor is alleging entitlement. * — Statement of Claim. + Natute of Claim. + . History of Events. ~~ Narrative on Programme, including Programme utilized, delay © /~ methodology/approach, the impacted activities and overall eff". for Completion. * Narrative and Summary of extension of time claimed. + Summary. * Appendices. De. Nabil Shehadeh © ZsClaims Preparation and Documentation Natratives * Nattatives explaining the methodology and reasoning behind the Programme contained within the Appendices. * Description of the impacted work in detail, for example, indicating pour details/sub-area/area/section of Works. * History of the events delaying the Works. * Cause and effect. * Whether the impacted works affect the Time for Completion. * EOT tequested. * Possible Mitigation measutes to be taken to overcome delays. * Future mitigation measures which may be available. Ds. Nabil Shehadeh © 73 Dr. Nabil Shehadch © 4Overview * A claim avoidance program can preserve Employer-Contractor telations & save time and money + Employers, Contractors, and Engineers/Architects should establish claim avoidance strategies before, during, and after construction + Asaminimum, claim avoidance strategies should include training of personnel and development of procedures to handle disputes as they arise * Claim avoidance means that disputes don’t arise or they are settled at the earliest time and at the lowest level . De. Nabil Shehadeh © 75 A good claim avoidance program can approach this goal theo.) the implementation of proper strategies during the following sages: “Design Phase *Procurement Phase *Construction Phase Dr. Nabil Shehadeh © 6Design Phase cts contract documents let te, coordinated, and understandable 1. Carefully seteen A/E consultants © — Short list at least six consultants with recent relevant experience — Require detailed information about each to be submitted for evaluation specific project information . project participant information financial capability |. description of organization capacity to engage in new work: key staff & point of contact for your project quality control measures emoan ge De. Nabil Shehadeh © 7 Design Phase Carefully screen A/E consultants (cont.) — Obtain at least five recent references and contact them = Convene a team to evaluate every candidate — Evaluate all submitted information and select the best qualified candidate = Negotiate an acceptable contract for the design services. Dr. Nabil Shehadeh © 78Design Phase 2. a BaaGt¢ — Obtain a design and cost schedule and monitorit rigorously! as — Timely provide information and support to the designer — Carefully review and critique design progress at several stages. 2) Ost 3. Obtain an accurate periodic construction cost estimate When the documents are ready for procurement, enlist an independent estimator to prepare a detailed construction estimate 4. Obtain an independent review of the contract documents» — Completeness — Coordination — Consteuctability De. Nabil Shehadeh @ 73 Design Phase 5, Audit Design Quality, — The sufficiency of the design: Complete the project design befo. contract is bid, and if some parts of the project cannot be comt designed at bid stage, clearly identify them and its possible imp. — Carefully analyze and consider exactly what you are building and precisely how itwill be built — Think about every sentence included in the contract, why it is thes» ad whetherit is necessary. 6. Analyse Risks) — Adequate Site investigation to identify potential problems. — Proper risk analysis to identify cisks and provide solutions where « sl: occurs. — Whether unforeseen risks are the responsibility of the Employes 0). Contractor De. Nabil Shehadeh © 30Design Phase 7. Se definitions, | ed word consistently: 8. Allow enough construction time’ De. Nabil Shehadeh © at project LLonys Design and Build, Partnering, Cost Plus, etc. t viewpoint from Employers & A/E's — Many potential problems can be identified and resolved before recciving bids De. Nabil Shehadeh © 32Procurement Phase Conduct a pre-bid conference _ Prominently display the place and time in the procurement documents. Allow sufficient time for contractors to identify questions. Draw the bidders’ attention to any special contract provisions a. site resttictions b. access limitations c. noise restrictions d. utility relocation requirements Encourage and answer contractors’ questions during the meeting and at any time before bid due date a. provide timely answers in a tender addendum b. extend the time for submission of bids, if appropriate De. Nabil Shehadeh © 83 Procurement Phase 5. ALLL ELE CED Take time to thoroughly investigate the questions Carefully integrate the response into the design—utilize you're A/F. Identify all requiced changes to the procurement documents = Cleacly describe changes Notify all bidders of the procurement documents . Give bidders sufficient time to carry out a complete review oi the ——— 7. Check the adequacy of the tender sum, Dr. Nabil Shehadeh © 84Procurement Phase 8. LO POC eC Consider material artival schedule as part of the contract. Identify long lead items and possible suppliers in the bid package. Avoid sole-source procurement unless absolutely necessary — Carefully analyze contractors! technical proposal paying particular , : : Dr. Nabil Shehadeh © 85 Construction Phase. b. submittals, De. Nabil Shehadeh © 86Construction Phase 2. Understand the scope of work: — elements required by law or code — elements required by function, purpose, or design — elements that may be altered or deleted — elements that must be added by contract modification Ds. Nabil Shehadeh © 87 Construction Phase : . . a. os a iauscape e 7 eae | give direction to the contractor—ifit is a change, then issue a change order Dr. Nabil Shehadeh © 88Consttuction Phase — Note and comments for revisions on submittals may constitute changes 2, Presumably a submittal represents the contractor’s interpretation of the minimum contract requirements b. Review you're A/E’s comments to detect potential changes — Issuing extea work orders without an allowance for additional contract time may result in acceleration — Timely responses should be provided to queries and requests for information from the Contractor, slow response to RFI’s may result in delay or disruption Dr. Nabil Shehadeh © 8g Construction Phase i | Dr. Nabil Shehadeh © 90Construction Phase ‘Buzz” words that indicate the emergence of a claim - overtime ~ extra shift - slow down, - speed up De. Nabil Shehadch © 91 Construction Phase poz — If the contractor’s position has some merit, then recognize the change and negotiate a settlement — Ifyou disagree, then try to resolve the issue promptly — Despiwellctopreeautdongycheremapetileelaims ~ In addition, many claims are not identified until the project is nearing completion, and the contractor finds that it is over budget — Complete and accurate records can quash many claim ot at least facilitate settlement — Dr. Nabil Shehadeh © 92Construction Phase ‘Ue ae standard , — Propet planning to ensure that information is received by the Contractor ina timely manner relative to when the work is to be cattied out. — Variations and changes should be kept to a minimum. — The Contractor’s cash flow should be maintained wherever possible. De. Nabil Shehadeh © 93 Construction Phase 8. (Gantemanieate.¢ Regular meetings should be held between the Engineer and the Contractor to resolve problems and issues. — Entrenched contractual positions should be avoided. — An open conduit should be maintained between the Contractor sd the Employer so that issues ate understood and work around solutious found. — Consideration should be given to commercial settlements and supplemental agreements. — Consideration should be given to alternative solutions to problems — A spirit of mutual trust and cooperation should be developed. Dr. Nabil Shebadeh © 94Dr. Nabil Shehadeh © 95 + Alternative Dispute Resolution ADR : is a tetm that refers 19 9 variety of techniques for resolving disputes without litigation. * Many specialized rules and procedures have been developed in cooperation with interested organizations and industries to facilitate these dispute resolution processes. Dr, Nabil Shehadeh © 96on Amicable Settlement’ “ Where notice of intention to commence arbitration as to a dispute has been given in accordance with Sub-Clause [ _], atbitration of such dispute shall not be commenced unless an attempt has first been made by the parties to settle such dispute amicably. Provided that, unless the parties otherwise agree, atbitration may be commenced on or aftet the fifty-sixth day after the day on which notice of intention to commence atbitration of such dispute was given, whether or not any attempt at amicable settlement thereof has been made. De. Nabil Shehadch © 97 Sequence of Dispute Events ay 20,2 Patios 20.4 A Paty fos 2O4APany may 208 A Baty Commencement appoint adsputate tne ‘seus anole funy inate Date oa Das ssaistocionr iaion DAB yes Ableatoers section appoinied De. Nabil Shehadeh © 98Advantages of ADR + SPBED L 3 + CHOICE AND EXPERTISE OF IMPARTIAL NEUTRALS + INFORMALITY. ae * FLEXIBILITY + PRIVACY| + ECONOMY * GIVES PARTIES CONTROL OF THE PROCESS De. Nabil Shehadeh © 99 argument which will then aid the other side in the even: vat the mediation is not successful ° ‘There is pressure to settle’: as the mediations proce.) yocs on the pressure to settle builds ot mediation demonstrates a weakness in the case Dr. Nabil Shehadeh © 100reed in UAE Dr. Nabil Shehadeh © 101 Negotiation Mediation Umpfcing The lav) Country gives the power to the hire pathy 1 ~ Fe example >) Dr. Nabil Shehadeh © 102Most frequently used dispute resolution technique Requites a strategy of communication and commitment lie /5 Joing fo atone! meedin? and bis Pooer During negotiations the contractor should be prepared to provide all written evidence to establish the validity of the claim and to arrange for the relevant personnel to attend a meeting The contractor should consider carefully and determine an acceptable ‘settlement figure’ for the claim Ifa claim is rejected by the engineer, his reasons for the rejection should be considered Dr. Nabil Shehadeh © 103 Negotiation Negotiation is basically a developmental process with eight distinc!, but often overlapping phases: * Phase 1: agreeing where to meet + Phase 2: setting the agenda * Phase3: exploring the differences + Phase 4: natrowing the differences * Phase 5: outlining the Final bargain 79/er = Phase 6: detailing the Final bargain + Phase 7: ritualizing the outcome + Phase 8: executing the outcome The @4reement Shoutel be signed + De, Nabil Shehadeh © 104. “The outcome is reported back to-the party or entity that ioned the fact finding. De. Nabil Shehadeh © 109 Adjudication, enjycc-! 4y arbitration Si ety ale cls us (le De. Nabil Shehadeh © 106+ The mediator's roleis advisory + Mediator may offer suggestions but resolution of the dispute rests with the parties themselves * Mediation proceedings are confidential and private Dr. Nabil Shehadeh © 107 Conciliation: Very close to Mcdatior in Uk fainness-and justice fron) pri raciprals of law Dr. Nabil Shehadeh © 108De. Nabil Shehadeh © toa Arbitration SECTION 1: Reference to Arbitration and Appointmen | 9! Asbitral Tribunal =~ SECTION 2: Rule 1: Notice to Refer Rule 2: Appointment of Asbitral Tribunal. Rule 3: Terms of Reference Rule 4: Notice of Further Disputes or Differonc~ Rule 5: Powers to Control the Proceedings Rule 6: Power to Order Concurrent Hearing: Rule 7: Power at the Hearing Rule 8: Power to Appoint Assessors or to seo" De. Nabil Shehadeh © 110Arbitration THE PROCESS (RULES) OF ARBITRATION SECTION3: Procedure Before the Hearing Rule 9: The Preliminary Meeting Rule 10 : Pleadings and Discovery Rule 11 : Procedural Meetings Rule 12 : Preparation for the Hearing Rule 13 : Conduct of the Arbitration SECTION 4: Procedure at the Hearing: Rule 14: The Heating Rule 15 : Evidence De. Nabil Shehadeh © 114 Arbitration ‘THE PROCESS (RULES) OF ARBITRATION SECTION 5: After the Hearing Rule 16: The-Award > decision Ly the arbitrator ciy| Rule 17: Appeals. —> $ Shoulcl be only regarding ihe ae ThePuceofAwbitation ("Jur Spelling mistokes Rule 18: Place of Arbitration bY 04 the Principals SECTION7: Procedural Matters’ Rule 19 : Language Dr. Nabil Shehadeh © 12Dr. Nabil Shehadeh © 413 Arbitration in UAE UAE Code of Civil Procedute Ds. Nabil Shehadeh © 144Arbitration in UAE UAE Code of Civil Procedure Enforcement - Article 217 An award need authentication of the court of First Instance De. Nabil Shehadeh © 115 Arbitration in UAE De. Nabil Shehadeh © 16Arbitration in UAE Foreign Arbitration Clauses with Dubai Government Bodies De. Nabil Shehadeh © 17 Arbitration in UAE Dubai International Arbitration Centre (DIAC) Dr. Nabil Shehadeh © 118Arbitration in UAE Dubai International Arbitration Centre (DIAC) ‘The services it offers include + Oversee bitral proceedings of commercial disputes ae poner é a cae Provide information in relation to atbitrators and mediators. Keeps a directory of experts De. Nebil Shehadeh © 119 Med/Arb Dr. Nabil Shehadeh © 120decision makers Dr. Nabi Shehadeh © 124 ne like Sell Courd usualy jn Ds. Nabil Shehadeh © 122Summary * Conciliation: Often-usedhinterchangesbly:nithMediation-ass method of dispute settlement whereby parties clarify issues and natrow differences through the aid of a neutral facilitators, * Fact-Finding: An investigation of a dispute by an impartial third person who examines the issues and facts in the case, and may issue a teport and recommended settlement. * Mediation An intervention in dispute negotiations by am impartial third person, with the purpose of helping the parties to. reach their own solution: Dr. Nabil Shehadeh © 123 +) Mini-Teial Assernetired settlement processinmhich-eentomeneentivesole the companies involved meet in the presence of an impartial thirc person andyafter- hearing ps i compromise, in order to resolve them. + Summaty Jury Txial/Summary presentations by counsel:in complex cases. before a jury impaneled to- make findings which are advisory, absent the» agreement of the parties otherwise. De. Nabil Shehadeh © 124Engineer’S decision De, Nabil Shehadeh © 125 Dr, Nabil Shehadch © 726Questions & Answers De. Nabil Shehadeh © 42r What is a contractual claim? What are methods/means that you know are available worldwide to resolve disputes/claims? List three FIDIC clauses undet which the contractor can claim extension of time? Contractor claims extension of time due to variation order. List the information that you expect to find in a contractor claim submission? Dr. Nabil Shehadeh © 128oO fiaocial lapel coLalfl = Cami digs SOCIETY of ENGINEERS - UAE date: nL Fon: bin 2 00S. = eas The diffecence...betuleen “Changes.” FA US Ao fhe foo Callen Changes.» Dt WK AHO oC AeM nn Matiagion s. ? aad. Vaciations.. ads Cost oe Ch a = 1OTLOK, ata. . Time 2 L The... engine er..iS..0Uf...0f..ADR...whichts.between..the Clienk....andl...the... Conttactor |. AStion....i...aaiag something In ae i..non...dlalag..Somethiag..which should be. done... Clike..delay. any...submittal...by..the Engineer.) a FCS on Ml Co SEACH. MED MACLEOD oy bf kb SOM Ch Ory othecwise....ff.will..be..Clain —..Mast..of..the...Claims...ace...trelaked. to “Delay. |_...Df... thece....iS...a..Aela lag fn... ON. activity, we... Shauld. Check...if..this..delay...will...affeck...the.... peopeck: Completion... Aad Sr. 0 boM Ob yooh Cen PhO ACES ok S on...the..Ccitical...Path...o6..nat..n Dh hb AS. F..010..fNC..CLABL CA oofPOA ug... CAN... CAUSE. cost oa) ANd... 00F ALTE ce Usually Pecfocmance....cCheckedl by, Cost aa time... Discuption....Clarms. usually Sstatt..uith..Cost..then time.fiawtall Gyo cayLalll = Caw aia fl day SOCIETY of ENGINEERS - UAE Date: ONE. OL AUD REE. CQ. CAUSE. delay buk...0.0. REL... Cause...cis cuptian... ae Mitigation is..pCopesal..oy..the..Coattactor..ta minimize...the..efkect...f.delay.. _... the... Contiractor..£5..not-.SUpees.e..t0..aSMk....0l], questions. ducing Tendel.... StAG.E... All... Sub..Coatractors...nominated..oc.non.nominated| are..the. responsi bi lity of..the...Conttactor.....aad.1°4: clepends..on..the...conttack..betuleen...the..contlacto é- and... Sub..Conthatto Tf clependls..on.the oS fa yi oye by...the...Client.. Thee any jatecfercence....if...the..Client...feels.L¢AS. AUN FALE ny. fhe..Client..Shall..deduct:..fcora.... the. Cont lacto..’S Payment. BA... JIC. ib... ADC SUD mw. COntTAc — the... contiact...s..betueen...the... Employer ancl..the. Coatractor.... fhe EngineecIs.an.officec..fol..the..Employec Che.d8.nob. LACH: 06 uthe...Condact..) —the..Claim...has..fhcee... Ste Ps. ©.Claim..notice. @.. substantiation ee ar mnpe lepton lce} @_Eatitlement elite taeDate: Bastall jyyoll objLalfl « (ntiaLlaigs © SOCIETY of ENGINEERS - UAE —the...client..Can..Jastoack..fhe...ContLacteste..#0...US2. Engineer..detecmiaation..=..cagineer. recommendation . 4..nominated...sdb-Contractercr.as..a.Vatlation... The...Enginees..Can..Agjech..Ang..Claim.Ap.Lb1S...nae according. 4o...the...Contlack.... Choe. complyiag uLs'thy the. Contiact.. Agreement...0n.. hatlatian..means...}b.. AGL86....fol~ Lates....aa. 4ite....fol..the..yatlatlon Tf...ule..Can...aat.agtee....in..@yreement...on.Matiation fhen.../t..abill...90...40.. Clase... Ff...thete...AS...4 delay...jia..the.. LESPonse. RFI, it... Shauld....be..fallewed..with..a.detter...statiag...that thi5...45. delaying whak..ind..Aecessaty..ey..uhich date... Claims...ace..sieace..and..tok.taleat Claim s...abe....tndeck. Commetetal..awu..not. Criminal (aw... Tt is.up.ta the Conttactec..to...ubstantiate...his. Claims...by.... Propec.evidence..: 5 Ti AKAD OAL. AD Co.EAGINCE LAS ACI. tater Or. Judge. The...repolts...Can be Simple, but.the...Claims. must..be.... camplete..:fastall yell oljLalll « Unwaiasl day SOCIETY of ENGINEERS - UAE Date: —-Who...prepare...the..Claim...Should...peae...i: CFM EACKS, ALC GOS. Ol AQ.g GUidtY...0.L... 0K Gubillf.oor bbb cb tho CLQLINS cock $ AEP EDAS OR tN. Probability... cecorels,.evidences..and.Substantiation « —LDmay...Clair....fot..100...thillions....aad..the... Judge. will..give...me..70..millians.....thecefore.....D... shauld.. keep...good... LECoLAS...f0..get..cemething...: med for G OM AO. Mb WttC.. 40. the. AGA CL Lup that MCAS op G Abd LL Qf. AO..JQdD.. AMC... COUCH. ASSUMP HONS RO MEG PAS oo. POO ALOR My tht. MCANS GOW SRO. AAMC, JOOS CLOLAS 0 fic..example..,..Adnmbetl..af Was/, 0) where W; is the weight assigned to the th option; ¥; is the ‘number of respondents who selected the ith option; and N is the total number of respondents (71 in this study). To better understand the importance of each type of Tables Ranking of esc type of chit based on thir Fequencies ‘Types of aime Importance ins Rank ‘Changes claims ws Hi Exin-work claims 602 2 Delay claims si 3 Diflorent site eondons Claims 405 4 AAceleration claims 3811 5 Contract ambiguity clans 7 6 ‘The importance index values for each type of claims are shown in Table 3. For example, the weighted average for the “changes” type of claims —(0x4+1x9+2x22-+ 3x21 +4 14/71 =2.42. The importance index for this type of claims = (2.42 x 100)/4 = 60.5%. The results of this analysis indicate that “changes” claims are the most fre- quent type of claims. This type of claims was ranked first with an importance index of 60.5%. “Extra-work” claims Table a Ranking of euch cause of clam based on their requences Cavses of eaims Tmportance Rank index (%) 550 (Oral change orders by owner Delay in payments by owner Low price of contract duc o high competion ‘Changes in material and labor costs Owner personality Variations in quantities Subcontracting problems Delay caused by contractor Contractor isnot well organized CConirtctor financial problems ‘Bad quality of contactor’ work Government regulations Estimating erors Scheduling erors Design ero or omisions Execution exors Fad communication between parties Subsurface problems Speciications and drawings inconsistencies ‘Termination of work Poorly writen eontrate iis an mportance index percentage was then calculated [we as follows: ene Importance Index = Weighted Average x 00/4. (2) Panning eos Twbie2 Frequency of each ipe of caine Types af eins No reponse Neer Rae ‘Aves Frequent ery essa {Contac ambiely elaine 7 1 2 15 5 4 Daly eins 3 ‘ rn » a 7 ‘Aeration eine 5 1% 8 15 0 8 Changs clans 1 4 3 2 24 1 xtrework cin 2 4 0 8 3B i Diterent site condions claims 2 25 ° 5486 were ranked second with an importance index of 60.2% while “contract ambiguity” claims were ranked last with an importance index of 32.70%. The ranks of all types of claims are listed in the last column of Table 3. 3.2. Causes of claims and ther frequency ‘The data received indicated that there are 26 possible causes of claims. Similar to what is explained in the previ- ous subsection for types of claims, firms were asked to choose one of five possible options for the frequency of each cause of claims: never, rare, average, frequent, and very frequent with weight for each in a seale from 0 to 4. Responses for the frequency of the “change orders” causo of claims, for example, indicated that 4 firms did not respond, 4 responded as “never”, 13 responded as “rare”, 18 responded as “average”, 21 responded as “fre- quent”, and 11 responded as “very frequent” ‘A weighted average was calculaied using Eq, (1) for each cause of claims and the importance index percentage was then calculated using Eq. (2), as shown in Table 4. The results of this analysis indicate that “change orders” are the most frequent cause of claims with an importance index Frequency av EK. Zanelio | nerstionl Journal of Project Management 24 (2006) 453-459 of 55% while “delay eaused by owner” was ranked second with an importance index of 52.5%. “Planning errors” cause of claims was ranked last with an importance index of 32.7%. The ranks of all causes of claims are listed in Table 4, ey rey Further analysis was also performed to find the fre- quency of claims for different amounts requested by con- tractors and awarded by owners, In general, claim amounts requested by contractors range from $111,350 to $167,245,000. Fig. 3 shows the frequency of claims for dif- ferent amounts requested by contractors, The figure indi- cates that the majority of claims (44 claims) are less than, of equal to $2.5 million. The next highest frequency (30 claim) is in the range from $2.5 to $5 million. A total of only 11 claims are above $20 million. The solid line plotted in Fig. 3 shows the cumulative percentage for the number of claims for each range of claim amounts requested by contractors. It can be observed trom the figure that the amounts requested by owners for around 60% of the claims are less than $5 million. Ege Beg Cumulative Percentage or the Number of Cane RS ‘Amounts Requested by Contractors (Millions of USS) Fig 3. Frequency of claims for amounts requested by contractors et ‘Amounts Awarded by Owners (Millons of USS) Fig. 4. Frequency of clans for amounts awarded by ownersEK Zaeldn | Iernasonl Journal of Projet Management 24 (2006) 458-489 ast ‘Table 5 ‘Summary ofelain amounts based on projet types ‘Type of proket Number “Amounis requested “Amounts awarded ‘Ratio of amount of claims by contractors (USS) by owners (USS) awarded/amount requesed Airpons 3 awe E0758 0.10 Buiings Fy 2164416118, 32.481,009 015 Power plants 4 34,602,123, 2737789 078 Roads 8 289,461,685 2.16886 01s Sewerlnes 15 336,301.08 14397655 0.08 Waterfines 7 136,126.05 S0570853, 02 others 3 36173170 2958358570 082 Total 1 1185408.965 185,167,390 016 On the other hand, the amounts awarded to contractors by owners range from $0.00 to $21,674,650. Fig. 4 shows the frequency of claims for different amounts awarded by owners, As illustrated in the figure, the majority of claims (65 claims) are below $0.5 million. The next highest fre- quency (16 claims) is inthe range between $0.50 and $1 million followed by 14 claims in the range from $1 to 1.5 millon. The solid line of Fig. 4 shows the cumulative percentage for the number of claims for each range of claim mounts awarded by owners. Asean be depicted from the figure, the amounts awarded by owners for more than 76% of the claims are less than $1.5 milion. ‘To give a better undersianding of these numbers, claim amounts were grouped based on the typeof project and the ratios of the amounts requested by contractors and those awarded by owners were then calculated, as shown in Table 5. These ratios indicated that, on average, only 10% of claim amounts requested by contractors are awarded by owners as shown in the bottom ofthe last column of Table 5. This can also provide an idea about the risk associated with cach type of project. To owners, it can be assumed. thatthe higher the rato, the higher th risk associated with this type of projects. Based on this assumption, sewer-line projects with only 0.04 ratio provided the lowest risk to owners while powerplants with a ratio of 0.78 provided the highest risk ‘A sample case study of a claim is presented in this sec- tion. The case is about a contractor specialized in the con- struction of residential and commercial buildings. The ‘contractor was asked by an owner to build a 42-story res- ‘dential building using a lump-sum type of contract. The building consists of five different apartment types. During construction, the owner changed the internal layout of one type and made changes to the internal finishes of three types of apartments. The contractor submitted a claim to the owner asking for $5,895,000 as a compensa tion for the additional costs resulting from the owner's changes. This amount is due to the changes in the speci- fications of the internal finishes and, therefore, the con- tractor did not ask for any time extension. After studying and analyzing the contractor's claim, the owner found that these changes do not worth more than $950,000. After several meetings to negotiate this issue, the two parties agreed to settle this claim for an amount, of $1,050,000. Although this represents only 17.8% of the original amount requested, the contractor accepted this amount as they are normally loath to use arbitration or g0 to court to resolve disputes. This is because of the long ‘time and high costs associated with these two methods of resolution. Several other cases of claims were also studied and it was found that changes made by owners represent ‘the most frequent type and cause of claims in construc- tion projects in UAE, which supports the findings of this study. ‘5, Methods used to resolve claims in UAE According to the UAE Civil Procedure’s Code, disput ing parties in any construction project may resolve and set- tle any claim using the normal resolution channels: (1) negotiation; (2) mediation; (3) arbitration; or (4) litigation. According to this study, the majority of construction claims in UAE (77.1%) are resolved using negotiation, as shown in Fig. 5. The figure also shows that only 4.9% of claims were resolved using litigation. This confirms that firms are quite reluctant to go for litigation because of the long time and high costs and risks associated with this method of resolution. gator tan 5 Meditn Nepstar 72.3% Fig, 5, Resolution methods and the Fequency of their we,458 EK: Zameldn | Iteratonal Soual of Projet Management 24 (2006) 453-450 6. Recommendations of industry practitioners » Industry practitioners and experts from Dubai munici- pality and Abu Dhabi Planning Department were asked to provide recommendations on how to prevent/reduce claims and how to deal with such claims in case they hap- pen. Based on their recommendations, the following are some rules-of-thumb on how to reduce/prevent claims in construction projects: 1, Allow reasonable time for the design team to produce lear and complete contract documents with no or ‘minimum errors and discrepancies Establish efficient quality control techniques and rechanisms that can be used during the design pro- cess to minimize errors, mismatches, and discrepan- cies in contact documents 3. Have a clearly written contract with no ambiguity 4, Read the contract several times before signing it to understand any unclear clauses 5. Have a third party to read contract documents before the bidding stage. 6. Use special contracting provisions and practices that hhave been used successfully on past projects. Useful information can be found in ASCE booklet [15], Which is about avoiding and resolving disputes during construction. 1, Develop cooperative and problem solving attitudes fon projects through a risk-sharing philosophy and by establishing trust among partners (e.g. the owner and the contractor). This concept is known in the lite erature as partnering 8, Implement constructability during the diferent stapes of & project. 9, Establish @ strategy on how to deal with tighter scheduling requirements 10, Have signed change orders before starting doing these changes on sit. 11, Maintain proper job records on a timely manner including time sheets, diary records, reporis, photo- graphs, records of labors and weather and its effect on progress, progress ofthe construction, ste instrue- tions, etc. ‘This study can be used to identify several problem areas in the construction process in UAE. Steps should be taken to clarify any issues or conflicts that may arise in these common problem areas. One of the common problem areas is the “changes” type of claims which, according to this study, was the most frequent type of claims and needs special consideration. “Extra-work” type of claims came second and “contract ambiguity” was ranked last, Ik can also be concluded from this study that “change orders" are the most frequent cause of claims while “delay caused by owner” was ranked second. “Planning errors were ranked last, indicating that it is the least frequent cause of claims. ‘According to the results of this study, it is recom- mended that special consideration should be given to con- tract clauses dealing with change orders, disputes, variations and extra works conditions, and delay. The best ‘means to cope with risk of construction claims is to reduce or avoid them altogether. There are certain fundamental means of reducing the number of claims encountered. ‘The main and essential steps that can be taken to mini mize risks and deal with the aforementioned identified ‘causes include: (1) allowing reasonable time for the design ‘team to produce clear and complete contract documents; (2) having a clearly written contract with no ambiguity by using special contracting provisions and practices that have been used successfully on past projects; (3) develop- ing cooperative and problem solving attitudes on projects through a risk-sharing philosophy between the owner and the contractor. Tis expected that the findings of this research will assist all parties to a contract reduce liability by avoiding the ‘main causes of claims and, accordingly, minimize delays and cost overruns in construction projects. The suggested comments are also necessary for proper project manage- ment, which is far more advantageous and profitable than seeking advice of a construction claim consultants after the dispute is entrenched. The latter course often takes place too late and is too costly Acknowledgments The author of this research thanks the Research Affaits of the United Arab Emirates University and gratefully acknowledge their support. The author also thanks Dubai municipality and Abu Dhabi Planning Department for the valuable information they provided for this research. References. [0] Ho SP, Liv LY. Analytical model for analyzing construction cis and opportunist bidding. Journal of Construction Engineering ane ‘Management 2008131) 94-104, (2) Vidogah W, Néokugri 1. Improviag management of lai contrac: {ors perspective. Joural of Management in Engineering 1997135 aah (3) Kariam S. Generic methodology for analyzing delay claims Joursal of Construction Enginesring end Management 1989: 12516):409-19, [4] Kululanga GK. Kuotcha W, MeCaflerR, Edum-Fotwe F. Consius- tion contractors aim process framework, Journal of Contraction Engineering and Management 20011274: 08-16 [5] AbdulMalak MA, BLSsadi MM, Abou-Zeid MG. Process mode or sdminstating. constuction claims. Joumal of Management. in Engineering 2002:182)34 9, (61 Singh A, Sakamoto 1. Mulple claims in construction law: educa ional case study. Journal of Professional sues in Engineering [Bducotion and Precise 2001;1273)-122-9.EK Zandi | IerationelJoural of Project Management 24 (2006) 483-459 [7)Seott $. Delay claims in UK contacts. Joumal of Construction Enginering and Management 1997:1233}238-44 (8) Ren Z, Anumba C, Uswe O. Miiagent sytem for construction shims rnepoiaton Journal of Computing Cuil Engineering 2031 13):60 8. (9) Janney JR, Vince CR, Madsen 3D, Chims analysis from risk retention profesional lability group. Journal of Performance of Corstrucied Facilities 1996 10(3 115-22, (10) Barre DS, Paulson BC. Professional consruetion management. New ‘York: MeGraw-Hil, 1992 [11] Dickman J, Neon E, Construction claims: frequsney and seveiy. Journal of Coasirstion Enginering and Management 198551 1(1) 7381 459 12] Hartman F, Suelgrove P. Risk allocation in hump-sum contacts oncept of Taten dispute. Journal of Construction Enginesring and Management 1996122(3}291-6. (03) ALKalil M, AE-Ghally M, Important causes of delay in the public lly projets in Saudi Arabia. Construction Management and Economies 1998,17(5):647-5, (04) UAE industrial statistics report 2008, Ministry of Finance and Industry, Abu Dhabi, United Arab Enirates: 200, (15) ASCE technical committer on contacting practice: of the ‘underground technology eeseasch council, Avoiding and resolving Gisputes during consirsction: suecesfel practices and guidelines New York: ASCE, 1991