Managing Change Orders and Contractual Claims

Why Attend

This course aims to provide participants with introductory knowledge and basic skills to deal with claims, changes, and disputes between the principals and contractors. Participants in this interactive course will learn how to analyze contractual issues, identify techniques that help handle difficult situations and recognize the best practices in resolving disputes amicably.

Course Methodology

This course relies on using individual and group exercises aimed at helping participants learn all key contract management activities. The course also features several case studies, presentations, and role-plays by participants, followed by discussions. In addition, this course incorporates pre-and post-testing.

Course Objectives

By the end of the 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 collaboration

Target Audience

All those involved in administering contracts and handling claims and change orders as well as those involved in any conflict or dispute during the contracting process

Target Competencies

• Contract preparation
• Handling claims
• Change management
• Technical terms and conditions
• Negotiating contracts
• Conflict management
• Contract administration

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

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

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

Evaluation of Claims

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

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