Analytical Model for Analyzing Construction Claims and Opportunistic Bidding

Construction claims are considered by many project participants to be one of the most disruptive and unpleasant events of a project. Construction claims occur for various reasons. There is a need to understand the dynamic nature between construction claims and opportunistic bidding. An analytical model, the Claims Decision Model (CDM), based on “game theory,” was developed to study opportunistic bidding and construction claims. This model explains (1) how people behave during a potential or existing claiming situation, (2) how different claiming situations are related to opportunistic bidding behavior, and (3) what situations encourage or discourage opportunistic behavior. The results of this pilot study indicate that the equilibrium solution of a construction claim is to negotiate and settle, which concurs with most of the claim cases in the industry. The possible range of a negotiation settlement is obtained in this paper. The model provides the rationale for recent innovations to manage disputes. The model can also help project owners identify the possibility of opportunistic bidding, and can assist the project participants in analyzing construction claims.     

Isolated Collapsed But-For Delay Analysis Methodology

Schedule delays are common in construction projects. Although many methods have been developed for analyzing and measuring schedule delays for construction projects, each method has functional limitations and use prerequisites. No one method is acceptable for all project participants under all circumstances. This study presents the isolated collapsed but-for (ICBF) method, an innovative delay analysis method for construction projects. During analysis, the ICBF method requires as-planned and as-built schedules as well as identified liability documents with key delay events to perform its analysis approach. Based on its application to an illustrative case and comparisons with other methods, the ICBF method is effective for delay analysis. Results provided by the proposed method can be easily traced to the actual case in an as-built schedule.     

Generic Process Mapping and Simulation Methodology for Integrating Site Layout and Operations Planning in Construction

The present research is intended to address dynamic construction-process simulation methods, with a focus on how to effectively model resource transit among various activity locations in the site system. Following a review of basic simulation paradigms and recent research developments, we propose a new process mapping and simulation methodology for modeling construction operations. The simulation algorithm is presented and the process mapping procedure is illustrated step by step using an earth-moving example featuring technology and resource constraints. It is straightforward to convert the resultant process mapping model describing workflows and resource flows over site locations into a simulation model. A STROBOSCOPE model is formed for the same problem definition to contrast and cross-validate our methodology with the established activity cycle diagram-based modeling approach. One additional case of modeling the concreting site operations by the hoist and barrow method is also given to demonstrate the application of the proposed methodology in practical settings.     

Avoiding and Mitigating Delay and Disruption Claims Conflict: Role of Precontract Negotiation

Delay and disruption claims often generate conflict and contract dispute in the delivery of building and civil engineering projects. If construction delay claims conflict can be avoided or mitigated, there could be substantial financial savings on projects. This study explores the effect of precontract negotiation as a means of avoiding or mitigating delay and disruption claims conflict. The data collection instrument was a structured questionnaire administered face to face on 41 contractors’ personnel on 41 completed projects in Singapore. The data were analyzed using structural modeling with partial least squares estimation approach. The results indicate that when the contractors received an unfavorable outcome from the contract administrator’s decision on their claims for delay, the intensity of conflict was lower when there was precontract negotiation and precontract agreement regarding the rules for quantifying and assessing the impact of anticipated delays than when there was none. It was also discovered that the higher the level of precontract negotiation and precontract agreement on the rules for quantifying and assessing delays, the higher the contractors perceived the quality of the decision-making process for delay claims during the construction phase. Further, the higher the contractors perceived the quality of the decision-making process for delay claims, the lower the intensity of conflict. At the time of entering into contracts, owners and their project management team need to pay more attention to precontract negotiation and agreement with their contractor to clarify and agree on the rules for quantifying and assessing the impact of anticipated delay and disruption. Aspects that require precontract negotiation, agreement, and clarification include: the rules of evidence for claims, the record requirements for claims and the procedure for keeping the records, form of construction program including the software for the preparation of the program and the procedure updating the program, the methodology for analyzing delay claims, formula for quantifying unabsorbed head office overhead component of prolongation cost, the method for quantifying disruption cost, the handling of concurrent delays, profit—whether claimable and the rate of profit to be paid, acceleration—circumstances under which it will be compensated and basis of compensation, and the question of who owns the float. These are, typically, not adequately covered by most standard forms of contracts. The agreements on these matters may be incorporated as part of partnering agreement or as a supplement to the contract agreement. Precontract negotiation, clarity, and agreements could produce instrumental and noninstrumental (social psychological) effects, which could facilitate delay and disruption claims assessment and their resolution. It could mitigate conflict even when the outcomes are unfavorable to a party.     

Multiagent System for Construction Claims Negotiation

Negotiation is an important aspect of the construction process. Different negotiation theories and models are available and have been deployed in a variety of situations. In some cases, these have been incorporated into multiagent systems that address a number of engineering problems. This paper is concerned with the approach adopted in the development of a multiagent system for construction claims negotiation (MASCOT). It reviews the key negotiation theories, outlines the peculiarities of the domain (construction claims negotiation), and discusses the choice of an appropriate negotiation mechanism for MASCOT. Of particular interest is the integration of Zeuthen’s bargaining model with a Bayesian learning mechanism, which addresses the characteristics of construction claims negotiation. An example is presented to demonstrate the application of the MASCOT model in a real construction claim case.     

Process Model for Administrating Construction Claims

Claims for additional costs and time extensions result from a variety of events occurring during the course of construction. To enhance the chances of success, contractors submitting claims must closely follow the steps stipulated in the contract conditions, provide a breakdown of alleged additional costs and time, and present sufficient documentation. On the other hand, project owners need to follow an overall comprehensive step-by-step procedure for tracking and managing the claims submitted by contractors. The paper presents a claims-management process that could be used by all parties involved in construction. The process identifies the major information-gathering and decision-making milestones as well as the notice and substantiation compliance checkpoints, which are critical to the development of defense arguments as claims are addressed. It further emphasizes the use of tools such as simulation, scheduling, productivity, and economic analysis and other modeling techniques in judging the level of justification and reasonableness of submitted claims.     

Methodology for Analyzing Ranges of Uncertain Model Parameters and Their Impact on Total Maximum Daily Load Process

A methodology for analyzing uncertain parameter ranges prior to model calibration or uncertainty analysis is presented. The method considers parameters that exist in complex models and are typically difficult to set using site-specific data (i.e., parameters that have suggested ranges, national average ranges, or ranges set with land characteristic data). The method applies Monte Carlo runs and an interval-spaced sensitivity analysis to determine the parts of parameter ranges that will most likely cause unrealistic model results. An application of the method is presented using the Soil and Water Assessment Tool model as applied to the Cannonsville Reservoir system watershed for hydrology and sediment simulations. Results indicate that after parameter range reduction, the model output range was reduced by an order of magnitude, thereby reducing the uncertainty of the model and aiding the calibration effort. Sediment transport is difficult to monitor and model in its many stages of transport so significant uncertainty in the sediment erosion and transport parameters for this model still exist. This uncertainty will impact the application of the model for Total Maximum Daily Load development and management decisions.     

Partnering: Tool for Construction Claims Reduction

This forum is a continuation of a regular series of columns on engineering ethics based on the Applied Ethics Case of the Month program, sponsored by the National Institute for Engineering Ethics (NIEE), Texas Tech University.     

General Liability Insurance Coverage for Mold Claims

Although humans and mold have coexisted for centuries, the effects of mold on health and property have recently received considerable attention. Members of the construction industry and commercial property owners are, with increasing frequency, finding themselves defending claims of property damage or personal injury due to indoor mold growth. These designers, builders, and property owners frequently turn to their general liability insurance carriers for defense and indemnification without having a full understanding of the protections afforded by their commercial general liability policies. This article provides an introduction to the typical coverages and exclusions applicable to mold related claims submitted for general liability coverage. This article also discusses maximizing the potential for coverage by notifying and cooperating with one’s insurer and provides guidance on the avoidance of indoor mold growth and claims. Questions concerning the meaning and effect of particular insurance policy provisions and the availability of additional or alternative coverages should be directed to one’s insurance professional or coverage attorney.     

Generic Impedance-Based Model for Structure-Piezoceramic Interacting System

This paper describes a generic impedance-based model for predicting the electromechanical (EM) impedance of one-dimensional (1D) and two-dimensional (2D) structure-piezoceramic (PZT) interacting systems. The vibration of a PZT patch is first analyzed. The effect of the host structure is then represented by its force impedance, which is obtained by a semianalytical method. Finally, experiments are carried out on beams and plates to simulate 1D and 2D problems, respectively. It is found that the predicted EM impedance of the structure-PZT interacting system coincides very well with the experimentally measured data. The results show that the predicted peaks match the natural frequencies of the host structure. The very small shift of the peaks from the natural frequencies caused by the interaction between the host structure and the PZT patch indicates that the small size PZT patch can be permanently bonded to the structure for on-line health monitoring without changing the mechanical properties of the structure too much. It is concluded that the proposed impedance-based model for general structure-PZT interacting systems can be potentially used in structural health monitoring.     

建筑施工企业的工程索赔合同管理

要强化企业风险意识,要有预见性,同时还要明确索赔的时效性。为了保证工程建设顺利进行,特别要做工程变更和施工索赔的管理工作。     

Claims Analysis and Computer Reasoning

Contract dispute resolution is an area in which design and construction professionals often require legal advice. Even though construction disputes are frequent and their resolution difficult, many times legal advice is not sought because it is not available or because it is expensive. This paper presents the first attempt at developing a construction contract legal analysis computer system. The system called the Differing Site Conditions Analysis System (DSCAS) is based on the techniques of Artificial Intelligence (AI) and is patterned after the Federal Government Standard Form General Conditions (23‐A, GP‐4). The DSCAS system is described, results of initial tests are presented and recommendations for future work are detailed. The initial testing of DSCAS quite adequately demonstrates that much potential exists for further application of AI to claims and contract management.     

Analysis Methods in Time-Based Claims

Assessing the impact of delay and resolving disputes are contentious issues since courts and administrative boards do not specify standard delay analysis practices. First, the advantages and disadvantages of widely used delay analysis methods, including the as-planned versus as-built, impact as-planned, collapsed as-built, time impact, and productivity analysis methods are summarized. Fifty-eight claim cases associated with time-based disputes in government work during the 1992–2005 period are extracted and analyzed to observe issues in time-based claims, including the reasons why they occur and the common practices in their resolution. The effects of various factors on the selection of a delay analysis method are examined. These factors include the type of schedule used, the schedule updating practice, the use of existing versus newly created schedules, and the availability of expertise, information, time, and funds. A project management system that makes use of regularly updated network schedules, and that maintains adequate project records should allow a scheduling expert to select a delay analysis method that would make a claim quite convincing.     

Delay Analysis Method Using Delay Section

The most common cause of construction claims is delay. Moreover, delay claims are often extremely complex and difficult to resolve. For this reason, the construction industry requires an effective and reliable method for analyzing the causes and effects of construction delay. Presently, the methods of analysis in common use do not adequately account for several commonly encountered situations. As a result, project time extensions are often considered without rigorous analysis. Therefore the objective of this study is to propose and describe an effective and logical method for evaluating construction delays that adequately accounts for commonly encountered situations. To achieve this objective, the writers propose a new methodology called “delay analysis method using delay section” (DAMUDS) as a means of overcoming two limitations of existing methods: (1) inadequate accounting of concurrent delay and (2) inadequate accounting of time-shortened activities. The DAMUDS method builds upon the widely used method of contemporaneous period analysis. The writers’ points are illustrated through the use of an example case.     

Modified But-For Method for Delay Analysis

“But-for” is a widely used method for analyzing and apportioning project delays among the responsible parties. Despite its acceptability, the traditional but-for method suffers from serious drawbacks; namely its narrow focus on the point of view of a single party and its inability to accurately consider concurrent delays. In this technical note, several improvements have been made to the but-for method to produce repeatable results and to account for concurrent delays. Details of the modified but-for (MBF) method are provided along with an example to demonstrate its advantages. To automate the MBF method, it has been coded in a macro program on commercial project management software. The method is simple and can help practitioners in apportioning project delays in an accurate and equitable manner.