Managing Contractual Claims

The overall aim of this course is to provide participants with an introductory knowledge, and basic skills needed to deal with claims, discrepancies and disputes between the principals and the contractors. Participants in this interactive course will learn how to analyze contractual issues, identify techniques that are helpful in handling difficult situations and recognize the best practices in resolving disputes amicably.

Course Methodology
This course relies on the use of individual and group exercises aimed at helping participants learn all key contract management activities. The course also features the use of a number of 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 major elements of a contract and the basic concepts of contract interpretation
• Recognize and analyze the different types of owners' claims and contractors' claims and how to deal with each type
• Demonstrate, through actual situations, the different approaches to handle claims, variation orders and conflicts through mutual collaboration
• Apply negotiation as a main concept in resolving disputes and conflicts in order to reach a final settlement

Target Audience
All those involved in implementing and administering contracts and handling claims and change orders; also those involved in any conflict or dispute with a contracting party and interested to learn how to avoid or resolve these contractual issues.

Target Competencies

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

Course Outline

• Elements of a contract Contract terms and conditions
• Basic concepts in contract law:
• Force majeure
• Notices: the neglected clause
• Breach of contract
• Right to remedy
• Indemnifications and liabilities
• Contract termination
• Why do claims occur: the red flags
• Change requests
• Definitions of claims and disputes Claim process

Change Management

• Why change management?
• Change order
• Agreement on estimating process
• Types of changes and variations
• Directed changes
• Constructive changes
• Cardinal changes
• Process of change management Writing a variation order

Claims Nature and Types

• Documentation of the event – Notices
• Procedure and Presentation of Contractor’s
• Claims
• Drafting a Notice
• Owner’s claims
• Defective work
• Warranty claims
• FIDIC owner’s claims
• Contractor’s claims
• Changed conditions
• Constructive changes
• Delays and suspensions
• Deficiencies in plans and specifications
• Program extensions
•  FIDIC contractor’s claims
• Delayed drawings or instructions
• Right of access to the site
• Unforeseeable physical conditions
• Delays caused by authorities
• Drafting a claim
• Reaching a settlement
•   Claim evaluation

 Resolving Claims and Disputes

• Monetary damages Disputes and settlement of disputes Alternative dispute resolution:
• Negotiation: common practices
• Mediation: neutral third party
• Arbitration: binding and non-binding   
• Resolution through legal means

Negotiation

• Partnering with suppliers
• Negotiation objectives
• Communication and Negotiation
• Negotiating claims