Trends in Construction Claims and Disputes

Why Should You Attend:

During the recent recession, the number of projects and construction companies declined, yet the number of claims rose. While the economy has improved the number of claims has remained high. “Claimsmanship” has proliferated and is equally practiced by owners, contractors, and their representatives. As a result, several trends developed, including:

• Declining construction dispute values accompanied by increasing claim resolution durations
• Court and Board of Contract Appeal decisions limiting recovery of damages
• Increased use of False Claim allegations in response to contractor claims
• Contractors asserting new forms of claims

These trends are exacerbated by what the construction bar calls the “vanishing trial.” Between 1938 and 2016 U.S. civil cases going to trial decreased by over 90%, and the decline is accelerating. U.S. “construction law” is derived primarily from case law (previously issued court decisions). As the industry changes and evolves (i.e., new project delivery methods, BIM, Green construction, location based scheduling, etc.) so too, must construction law. The consequences of the vanishing trial are that construction law has stopped evolving and judges are less experienced with complex, technical construction issues.

Learning objectives:

• Become aware of new trends in the arena of construction claims and legal disputes.
• Understand how these trends may impact your projects.
• Learn about court decisions that are limiting contractor right to recover damages.
• Be exposed recommendations for both owners and contractor concerning these trends.

Areas Covered in the Webinar:

This 90 minute webinar explores these growing trends and how to mitigate or avoid their negative impacts on construction claims and disputes. Topics include:

• Increasing numbers of devalued construction claims taking longer to resolve
• Increasing limitations on recovery of damages related to:
• Concurrent delay
• Compensable delay
• Suspensions of work
• Notice and filing requirements
• Time extensions
• Extended home office overhead
• Risk transfer clauses
• Differing site conditions
• Increased use of False Claims Acts to ward off claims
• New forms of claims, including:
• Constructive claims
• “Under-inspection” claims
• “Equipment lost productivity” claims
• “Expanded” general conditions claims
• Recommendations for both owners and contractors on how to avoid some of these issues on future projects.

Who Will Benefit:

• Construction Owners
• Legal counsel advising clients
• Design Professionals
• Construction Managers
• Contractors and subcontractors
• Consultant, architect or engineer

Jim Zack
Executive Director, Navigant Consulting Inc

James Zack is the Senior Advisor, Ankura Construction Forum™ – the construction industry’s global resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Jim was founder and former Executive Director of the Navigant Construction Forum™.Previously, Executive Director, Corporate Claims Management, Fluor Corporation; Vice President, PinnacleOne and Executive Director, PinnacleOne Institute; and Senior Construction Claims Consultant, CH2M HILL, Inc. With 47 years’ experience, he is a recognized expert in mitigation, analysis and resolution or defense of construction claims. A Fellow of AACE International. The Royal Institution of Chartered Surveyors, and the Guild of Project Controls, Mr. Zack is a Certified Forensic Claims Consultant, a Certified Construction Manager and a Project Management Professional as well as an internationally known author and speaker on construction claims.

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