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.     

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.     

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.     

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.     

United Kingdom Construction Claims: Views of Professionals

A novel approach has been used to attempt to understand how contractors justify their claims on construction contracts and how contract administrators are likely to assess them. This is done by encapsulating particular claim types into scenarios and interviewing not only contractors and contract administrators, but also claims consultants, to hear their views on how the situations represented by the scenarios should be resolved. In this paper, four areas of general uncertainty surrounding claims in the United Kingdom are described and the results of the survey on these four areas are reported. The concerns addressed are: the treatment of exceptionally adverse weather; dealing with early completion schedules; quantification of the prolongation costs associated with an approved extension of time; and concurrent delays. The results show some good agreement, particularly on the problems of dealing with exceptionally adverse weather and with some aspects of concurrent delay assessment. Although the consensus was not so clear on the other two issues, there was a majority view that should give professionals working in this area greater confidence when dealing with these problems.     

Quantification of Losses of Labor Efficiencies: Innovations in and Improvements to the Measured Mile

This paper describes a rigorous procedure for quantifying damages arising from loss of labor inefficiency. Throughout, deficiencies with the measured mile concept are cited. Perhaps one of the least recognized deficiencies is that the measured mile is a concept, not a procedure. Thus, every analyst is left to conduct the study as he/she pleases. This paper defines a step-by-step process for doing a damage study, and cites rules to follow when performing the study. Following the procedure and rules will lead to more rigorous and defensible analyses. A baseline analysis is described and presented as a way of adhering to the measured mile concept. The principle difference is in how best performance is defined. In a baseline study, the focus is on periods of high output (production), not good productivity. The baseline periods need not be continuous. Also, the analysis is performed on combined data (one account), not many accounts. The calculations used to perform a baseline study are illustrated using a simple case study project. Reasons for recovering damages because of losses of labor efficiency are also cited.     

Toxic Mold: Latest Construction Defect

As television documentaries and newspaper articles increasingly report the insurgence of lawsuits associated with toxic mold, professionals serving in the construction industry are reevaluating the design, supervision, and work associated with projects in an effort to reduce the possibility of water intrusion and toxic mold growth. The first step in preventing your name from being counted among possible defendants in a toxic mold lawsuit is to be informed of the different types of mold as well as the environments that cause these toxic molds to flourish. A knowledge of the several theories of liabilities and the successful defenses in past toxic mold litigation will also provide perspective. Finally, a survey of current efforts by both government and quasi-public agencies to address the problem of toxic mold will conclude this review of the latest defect in the construction industry: mold.     

Mechanic’s Liens on Private Projects in Hawaii

Mechanic’s and materialman’s liens are an important alternative remedy for tradesmen who have not been paid for improvements made under a contract. These statutes allow the unpaid tradesman to place a lien on the improved property and then foreclose and force the sale of the property to satisfy the lien. While the procedures are technical and vary from state to state, general concepts are commonly shared. This article examines Hawaii’s mechanic’s lien statutes and case law and describes the basic procedures and requirements of the remedy for nonpayment on contracted work. Because a lien jeopardizes an owner’s interest in his real property, courts require strict compliance with procedural safeguards including notice and a right to a hearing to contest the lien before the property can be foreclosed. Owners can avoid the danger of liens by requiring payment bonds, by ensuring that subcontractors and suppliers are promptly paid, and by overseeing the project with care. The issues surrounding timely filing are emphasized.     

Minimizing Liability for Construction Accidents through Good Contracting

A serious injury or death of an employee or member of the public on a construction site poses a considerable risk to the construction industry professional. Whether resulting from an unsafe condition on the site or from the injured party’s own negligence, a lawsuit seeking a large award is likely to follow. While an architect or engineer with general inspection responsibilities over a construction project does not normally owe a duty of care to the contractor’s employees or the public, he or she may assume such a duty through contractual language or by exercising control over safety issues. With the unpredictability of juries and the ready availability of experts willing to testify that a construction industry professional was at fault, careful contract drafting becomes essential for protecting an organization and shifting the responsibility for site safety to those best able to control the risk. The design professional will wish to ensure that the contractor is fully responsible for site safety. The contractor, on the other hand, must be on guard against the assumption of responsibilities beyond that normally expected in the industry.     

Characteristics of Contractor’s Liabilities for Defects and Defective Work in Korean Public Projects

Modern buildings and civil structures are complex undertakings and involve the use of a great variety of engineering methods and processes. Therefore most projects face the possibility of defects and defective work, which generally result in structures that cannot perform their originally intended roles. The characteristics of the contractor’s liabilities for defects are very controversial in Korea. There are two conflicting theories and one compromise between the two, concerning defect liabilities. One is liability in terms of the law, and the other is that in terms of the contract. These two kinds of liability are significantly different, varying in definition, scope of responsibility, period of responsibility, and other aspects. The purpose of this study is to suggest how to resolve potential disputes which might result from these differences through the analysis of current laws and their interpretation.     

Supportive Information on Liability Insurance for Psychologists.

Wright's (December 1981) article on the extent of financial claims and the general nature of such claims against the APA Professional Liability Insurance Program appeared at about the same time I was gathering similar information for a brief item in the Communique, the official newsletter of the National Association of School Psychologists (NASP). The figures I gathered compare favorably with those reported by Wright, where expenses were only about one tenth of the aggregate premium. In combination, the figures indicate that at least among those persons having such coverage, the actual number of claims is very small and the likelihood of successful litigation for malpractice is also small. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Contractual Approach for Facilitating the Resolution of Dispute over a Contractor’s Failure to Comply with Time Limit for Notice of Delays

The enforcement of a contractor’s notice of delays and claims as “a condition precedent” to a contractor’s claims is a controversial issue among practitioners, researchers, and legal scholars. Strict enforcement or liberal interpretations (no enforcement) of time limit for a contractor’s notice have some implications for the success of projects and for the construction industry. This paper examines and compares the different views regarding enforceability of notice provisions. The paper evaluates those views and thereafter proposes an alternative contractual approach for dealing with a contractor’s noncompliance with the provision. The applicability of the proposed approach is evaluated vis-à-vis legal principles. The proposed approach appears to be practical and equitable. It could facilitate early resolution of disputes relating to notice. It could also make the outcome of notice-related dispute more predictable. Considering the contractual, legal, and practical problems that could arise from a strict enforcement and a liberal interpretation (no enforcement) of time limit for a contractor’s notice, the paper highlights the benefits of the proposed approach to the employers (project owners), contractors, and the construction industry at large.     

“Is That Not Horrific?”—or “You Have Been Warned!” Burchell v. Bullard and Implications for English Construction Law

In recent times, the cost of litigation has emerged as a serious issue in construction law. This paper examines the approach adopted by the English Courts in the light of recent reforms to the civil justice system and important case law. Important legal decisions indicate a change in judicial attitudes to Alternative Dispute Resolution (ADR) which was previously thought to be unenforceable by reason of uncertainty until very recently. This paper looks at the development of so-called “ADR law” in the English courts and discusses policy issues behind the recent case of Burchell v. Bullard. The paper concludes that although the English Courts will not impose ADR on unwilling parties, draconian cost sanctions await those who unreasonably reject ADR before proceeding to trial. Guidance is given on the tricky legal issue of how to ascertain whether a refusal is reasonable or unreasonable by exploring recently decided cases. The in-depth examination of Burchell v. Bullard gives an insight into how the judiciary approach perplexing questions of reasonableness in cases where a verdict of “unreasonable rejection” can have catastrophic cost implications for litigants.     

Committee on Professional Liability Insurance. Professional liability insurance for psychologists.

Professional liability insurance for psychologists is obtainable through the Smith-Hoggatt-Dawson Insurance Agency of Champaign, Illinois. Coverage is described and premiums specified. Insurance is granted automatically to an APA member if he is an ABEPP diplomate "… or if he is a regular member of the staff of a recognized college, university, school or school system, firm of industrial or clinical practitioners' clinic, hospital, or church" and to others. Non-ABEPP diplomates "… in completely independent private practice… " must be sponsored in writing by two ABEPP diplomates. The "… insurance now available is written in such a way as to cover research workers as well as… " practitioners. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Gender Differences in Occupational Stress Among Professionals in the Construction Industry

There is accumulating evidence that stress levels among construction professionals are increasing and that this is manifesting itself in the form of unsafe working practices, higher turnover, lower morale, and poorer performance. However, there has been no research into the influence of gender on stress levels in the construction industry. This is despite evidence that the underrepresentation of women may produce higher levels of stress among this part of the workforce. To redress this deficiency, this paper investigates whether there are differences in sources and levels of stress between male and female professionals in the construction industry. The results indicate that overall, men experience slightly higher levels of stress than women. Although there are common sources of stress for both men and women, there are also some differences. In particular, men appear to suffer more stress in relation to risk taking, disciplinary matters, implications of mistakes, redundancy, and career progression. In contrast, the factors that cause most stress for women were opportunities for personal development, rates of pay, keeping up with new ideas, business travel, and the accumulative effect of minor tasks. These differences reflect women’s traditional and continued subjugation in the construction industry.     

Method for Calculating Schedule Delay Considering Lost Productivity

A delay claim often occurs when a difference between the actual completion date and the contract completion date exists. The duration of a delay is an essential piece of information required for determining the cause of a delay. However, it is difficult to analyze a delay claim due to the fact that numerous factors that cause this delay, thereby making it a very complex issue. One of such factors is the lost productivity or loss of productivity. Despite the fact that it is one of the major causes of delay, there have been only a few studies that focus on converting lost productivity into delay duration carried out to date. Claims for productivity losses are generally the result of tension between the contractor and the owner. This tension arises due to the great difficulty involved in quantifying disruption effects. Thus, to calculate accurately the delay duration, a logical method for analyzing schedule delay caused by lost productivity is necessary. Therefore, in this study, we propose a method for analyzing construction schedule delay where this lost productivity is taken into consideration. This methodology was implemented on a case project to ascertain its practicability, and to decide whether it can be utilized in the case of a delay claim related to lost productivity. The significance of this paper is twofold. One is the method to convert the lost productivity into the delay duration, which can be applied to reasonable delay claim settlement. The other is the process to analyze the construction schedule delay considering lost productivity.     

Construction Litigation for the U.S. Naval Facilities Engineering Command, 1982–2002

Evaluation of construction claims history can provide an understanding of improvement opportunities in a capital projects portfolio. This study analyzed cases of construction litigation involving the U.S. Naval Facilities Engineering Command (NAVFAC) for the period of 1982–2002, extracted from the historical trial decision record of the Armed Services Board of Contract Appeals (ASBCA). The study provides trend data for all “first time” construction litigation cases brought before the Board over the last 21?years and a total of 666 cases involving NAVFAC construction contracts were identified over this period. The characterization of these cases was accomplished through a review and tabulation of ASBCA identified “primary” causes and a subjective analysis of “root” causes from a random sample extracted from the total population. The random sample data set totals 30 cases and was taken from cases litigated in the last 10?years (1993–2002). Findings and recommendations based on root causes, including specific recommendations are provided for NAVFAC and practitioners in other organizations.     

Legal Issues of Integrated Network for Construction and Real Estate Sector

In Singapore, one of the most important steps in the overall information technology strategy for the construction and real estate sector is the development of an integrated network for the sector to cover the entire life cycle of any development. It is the first of its kind in the world. The productivity and competitiveness of the construction and real estate sector have been greatly enhanced through the introduction and implementation of the adopted integrated network since 2002. Some of the legal issues related to the integrated network are global trading, contract enforceability, liability risks, security breaches, and intellectual properties protection, a lack of alignment in jurisdictions, confidentiality, legal liability, and service dependency risks. The paper addresses online security and legal issues related to the integrated network for the sector to establish trust and confidence among the end users of the system. Some of the legal issues encountered during the implementation and lessons learnt will also be briefly discussed.     

Quality, Environmental, and Health and Safety Management Systems for Construction Engineering

The philosophy behind quality, environmental, and safety (QES) management systems is a concept that has been accepted by various contractors. Furthermore, a process has been developed insuring that the output produced conforms to customer satisfaction without violating any environmental, health, and safety rules and regulations. An effective QES program not only assures a quality product but also reduces costs, and enhances productivity. It is a top down process, i.e., top management together with line management and other employees develop the program and motivate all personnel to accept the process. Important functions to take under consideration are (1) explain and clarify the quality, environmental, and safety performance expected; (2) involve employees in decision-making and problem solving; (3) describe the consequences of poor quality and unsafe/unhealthy work conditions; (4) establish QES goals and provide feedback on performance; (5) provide a self-monitoring system; and (6) recognize and reinforce good performance and develop a reward system. This paper presents a discussion of the development of a portion of a QES management system which has been employed by a medium to large size construction company. In particular, Items 1–4, listed above, are described in detail.     

Capital Project Portfolio Management for Federal Real Property

The U.S. Office of Management and Budget, Government Accountability Office, and Federal Facilities Council, among others, find that effectively managing federal real property assets requires increased management attention, establishment of clear goals and objectives, and improved policies, procedures, and levels of accountability. This paper introduces a model to assess public-sector capital project portfolio management (CPPM). Our objective was to create an assessment protocol to measure how effectively and efficiently public-sector capital assets are managed. We built on the tenets of asset management and improving service delivery, specifically focusing on the project, portfolio, and business management domains. In developing this model of measuring federal real property management capabilities, we identified and evaluated a wide range of decision-making process activities in managing these assets. Using the capability maturity model framework, we then developed and validated the system-level CPPM capability model. When applying the model, managers can assess organizational performance in a structured repeatable process. Model results help managers identify strengths and weaknesses in the organization, identify best appropriate practices, and get credit for the good things they have done as they measure their performance in improving service delivery.