Baseline Determination in Construction Labor Productivity-Loss Claims

Various ways of quantifying damages have been applied to productivity loss claims in construction. All of the ways attempt to be as objective as possible based on the extent of information available in a particular case. The measured mile, a widely accepted method, is employed when an unimpacted baseline period of production can be identified. Although that approach is considered to be the most objective method available in such cases, the method is limited and does not directly account for variation in individual productivity values about a normal or natural level of productivity. A gap exists between the use of existing methods and the availability of an appropriate methodology that specifically addresses variation in productivity. The key lies in the way baseline productivity is measured, which is inherently statistical, yet no truly statistical methods are used to establish such a baseline. Using the measured mile as a backdrop, this article provides an objective, measurement-based approach that can be used to establish a productivity baseline applied to construction productivity loss claims, based on the application of statistical methods aided by a process control chart. The focus is on providing the basic principles and concepts underlying the approach presented.     

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.     

Construction delay analysis techniques

Construction projects continue to suffer delays. Things go wrong and the project's completion date gets pushed back, with someone to be blamed for it. In practice, attempts are made to identify the causes of delays and schedules are modified to incorporate revised duration and new project time. The analysis itself is usually complex and can be aided by a computerized approach. This paper discusses different delay analysis techniques that are currently used by practitioners in the construction industry. It also discusses a proposed new delay analysis technique called the Isolated Delay Type (IDT). These techniques were tested against a case example and their strengths and weaknesses highlighted. The new technique can be used as a standalone module for delay analysis or could be incorporated within a computer system for construction delay analysis and claims preparation called Computerized Delay Claims Analysis (CDCA) that integrates different software including an expert system and management software such as scheduling and a database or spreadsheet.     

建设工程施工阶段监理投资控制浅析

本文作者结合自身工作实际经验,对施工阶段监理的投资控制一些相关问题进行简单的论述,可供同行借鉴。     

Case for Expanding the Claim Dispute Resolution Training of TxDOT Personnel

Texas Department of Transportation (TxDOT) currently uses general alternative dispute resolution and dispute management tactics to resolve construction claims. The successful application by TxDOT of project partnering methods, critical path management, and the Contract Claims Committee has resulted in a relatively low number of claims filed. However, one weakness in TxDOT’s current methodology is the lack of specific protocol for project-level personnel and administrators. The following survey of TxDOT dispute resolution methods emphasizes the importance of developing a personnel training catalog for Area Engineers in order to avoid costly claim dispute escalation. As the individual primarily responsible for resolving project and district-level disputes, the Area Engineer should be equipped with dispute resolution training if TxDOT wishes to improve the efficiency of its alternative dispute resolution protocol.     

Editorial

Although the owner may have a legitimate claim against a contractor for breach of contract, calculation and proof of damages incurred by the owner is often a difficult task. Owners should be aware of the types of damages which may be recovered from contractors for delayed project completion, defective work, or abandonment of the project, and how t o prove these damages. When a contractor has a legitimate construction claim against an owner, he must be aware of the wide variety of damages which he may have suffered in order to assure himself chance of maximum monetary recovery. A claim may arise on account of a delay, disruption, or termination of the contractor's performance, and recoverable costs can be analysed under these three categories. In addition, the contractor must be careful t o choose the best method of proving damages if he is t o successfully prosecute his claim. Although the legal principles discussed in this article are drawn from the public and private sectors o f the United States construction industry, they may be applied in arbitrations both in the United States and abroad.     

Assessing the New United Kingdom Protocol for Dealing with Delay and Disruption

The recent publication of the U.K. Society of Construction Law’s protocol for dealing with delay claims has finally provided a good opportunity to make progress with a continuing difficulty that besets most substantial construction projects. The protocol makes recommendations on the issues that arise when delay claims must be managed. A report of recent research is conducted to test how U.K. professionals understand some of these issues and how they deal with them in practice. The conclusions show some areas of good agreement, notably in the way that early completion should be handled and the way that prolongation costs should be assessed. There are, however, areas that give rise to some concern. The methodology “time impact analysis” appears not to be well used in practice, and it also seems that contractors will have difficulty with the position taken on float ownership and concurrent delays.     

Reconciliation of Owner and Contractor Views in Heavy Construction Projects

Delay and loss of productivity are the two main types of damage experienced by the contractor when the owner issues a change order. Courts have recognized critical path method schedule analysis as the preferred method of identifying and quantifying critical delays. As for the inefficiency damages, there is no direct way of measuring inefficiency due to its qualitative nature and the difficulty of linking the cause of the productivity loss to the damage. Most of the scholarly work published in this area was based on data supplied by the contractors; and that explains why there are discrepancies between what the contractor asks for and what the owner believes the contractor is entitled to. This study addresses the need for a statistical model to quantify the productivity loss from verifiable site data such as owner’s daily reports, change orders, drawings, and specifications, rather than rely solely on contractor surveys. A model is developed and validated to quantify the productivity loss in pipe work in roadway projects due to the change orders. The productivity loss study analyzed two sets of data that include: (1) variables that predict which of the two parties, the owner and the contractor, contributed to the productivity loss; and (2) variables that predict, from the legal viewpoint, productivity losses which only the owner is responsible for. The study showed the difference between what the contractor asked for and what he/she is actually entitled to. This model can be used by both the owner and the contractor to quantify the productivity loss due to change orders, and to offer an objective approach to reconcile their differences. This study concludes with an example to demonstrate the use of the model.     

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.     

也谈我国民事诉讼程序之修改

理论界对民事诉讼法修改的讨论正处于热潮之中,很多学提出了增设“小额诉讼程序”的设想。本拟从国外小额诉讼制度的特点、我国学主张设置的理由及我国民事诉讼程序的规定和实践中操作效果这几个方面的探讨,来论证“小额诉讼制度”在我国设置的不必要性,并提出简易程序完善的设想,以期对民事诉讼法的修改有所参考。