Evaluating Contract Claims

JOHN MULLEN is a chartered quantity surveyor and civil engineering surveyor, with 40 years' experience in the construction and engineering industries. John was one of the founders of Driver Group PLC, creating many of its businesses, and has been its individual largest shareholder and UK and Middle East Managing Director. He has an international reputation as a quantum expert witness in litigation and arbitration around the world, on matters up to US$2.25 billion in dispute. R. PETER DAVISON was one of the founders of Driver Group PLC and is former head of its expert witness business, DIALES. Peter originally trained as a quantity surveyor and is a former Chartered Quantity Surveyor and Chartered Arbitrator, who established a reputation as an objective, experienced and reliable expert witness on quantum matters.

Reviews xvii Preface xxi Acknowledgements xxvii 1 Introduction 1 1.1 The Legal Basis 2 1.1.1 Forms of Contract 2 1.2 The Standard of Substantiation 4 1.2.1 SCL Delay and Disruption Protocol 5 1.2.2 Direct and Time Consequences 7 1.2.3 Duty to Mitigate 9 1.3 Risks 12 1.3.1 Design Risks 12 1.3.2 Design Review 14 1.3.3 Professional Indemnity Insurance 14 1.3.4 Risk Analysis and Management 14 1.3.5 Risk Registers 16 1.3.6 Risks and Records 17 1.3.7 Reimbursable Risks 20 1.3.8 Non-reimbursable Risks 21 1.4 Sources of Change 22 1.4.1 The Process of Analysis 22 1.4.2 Inadequate Pre-contract Design and Documentation 23 1.4.3 Design Development and Approval 26 1.4.4 Access or Possession 27 1.4.5 Early Taking over or Beneficial Use 28 1.4.6 Changes in Employer Requirements 28 1.4.7 Contract Documents 29 1.4.8 Unforeseeable Occurrences 30 1.4.9 Breach of Contract 31 1.5 Summary 32 2 Establishing the Base 33 2.1 Planned Change 34 2.1.1 Ordered Variations 36 2.1.1.1 Fair Rates and Prices 39 2.1.2 Changes in Quantities 41 2.1.2.1 Quantities and Conditions 43 2.1.3 Preferential Engineering 44 2.1.4 Value Engineering 45 2.1.5 Unconfirmed Instructions 46 2.2 Unplanned Change 47 2.3 Programmes and Method Statements 47 2.3.1 The Status of Programmes 47 2.3.2 Programmes and Resources 52 2.3.2.1 Method Statements 52 2.3.3 The SCL Delay and Disruption Protocol 54 2.3.4 A Partial Programme 55 2.3.5 Limitations on Liability 55 2.4 Summary 56 3 Effect of Change on Programmes of Work 57 3.1 Use of Programmes 58 3.1.1 Provisional Sums in Programmes 60 3.1.2 The Base Cost 63 3.2 Use of As-Built Programmes 64 3.2.1 Sources of Information for As-Built Programmes 65 3.2.2 Constant Resource/Continuous Working 66 3.2.3 Recording of Completion 67 3.3 Change Without Overall Prolongation 67 3.3.1 Who Owns the Float? 68 3.4 Prolongation of the Works 74 3.5 Analysis of Time and Delay 77 3.5.1 Introduction 77 3.5.2 Basic Requirements 82 3.5.3 Float and Acceleration 86 3.5.4 Concurrent Delays 88 3.5.5 'Dot on' 98 3.5.6 Concurrency and the Contractor's Financial Claims 100 3.5.7 Delay Analysis Techniques 103 3.5.7.1 Impacted as Planned 104 3.5.7.2 Time Impact Analysis 108 3.5.7.3 Collapsed As-Built Analysis 111 3.5.7.4 As-Planned Versus As-Built Programmes 113 3.5.7.5 Windows Analysis 115 3.5.7.6 Software 116 3.5.7.7 Building Information Modelling 118 3.5.7.8 Case Law 120 3.5.7.9 Conclusions 123 3.5.8 Assessment of Productivity 125 3.5.8.1 Tender Productivity 126 3.5.8.2 Achievable Productivity 127 3.5.8.3 Actual Productivity After a Change 127 3.5.9 Sources of Productivity Data 128 3.5.9.1 The Fundamental Principles 128 3.5.9.2 Relevant Quantities 128 3.5.9.3 Equipment and Methods 129 3.5.9.4 Sustainable Outputs 130 3.5.9.5 Recalculation Using Efficiency Factors 130 3.5.10 Effect on Contractor's Plant and Equipment 131 3.5.10.1 Working Plant and Equipment 132 3.5.10.2 Site Facilities and Equipment 133 3.5.11 Duty to Mitigate 134 3.6 Summary 135 4 Sources of Financial Information for Evaluation 137 4.1 The Contract Provisions 139 4.1.1 Cost 139 4.1.2 Loss and Expense 141 4.1.3 To Ascertain 142 4.2 Tender Documents and Information 145 4.2.1 Entire Agreements 146 4.2.2 Misstatements and Misrepresentation 147 4.2.3 Mistakes in Tenders 148 4.2.4 The Conditions for, and Character of, the Works 149 4.3 Tender Calculations and Assumptions 149 4.4 Cost Records 151 4.4.1 Identification of Invoices 151 4.4.2 Discounts and Credit Notes 152 4.4.3 Bulk Discounts 153 4.4.4 Coding Systems 154 4.4.5 Timing of Costs 154 4.4.6 Cost Transfers and Accruals 155