Prolongation claims during a construction project are also widespread to witness; however, by tackling the situation carefully, one can successfully come out of the applications. Before moving on the details of handling such claims, let us first try to know as to what are prolongation or delay costs.
What are the prolongation costs?
These are additional costs inflicted by the contractor as a result of the delayed work. Cause of delay is because of an event or events that are said to be the responsibility of other parties. Common examples of such incidents could be delays in giving instruction or failing to provide the site with possession to the contractor on time.
Top ways to handle prolongation claims
Prolongation claims could be troublesome if not treated on time. Thus by acquiring timely services of construction claims consultants and following these points, you can ensure successful management of claims.
Here are the top ways of handling construction prolongation claims:
1. Records for the win
No one can support you as well as the files you’ve maintained to support a prolongation claim. This means that every penny, dirham, or riyal has to be supported by showing the bank statements, slips, invoices, etc.
Moreover, be confident about whatever you’ve to say as if you don’t prove what you’re saying, you’ll lose it!
2. Indicate Contractual Entitlement.
It is a common sight that many claims don’t get successful because of the claimant failing to prove the stated events of additional cost under the contract. Hence, investigate, evaluate, and form a story that gives rise to a contractual entitlement to have the winds by your side.
3. Practice compliance with Notice provisions.
Notices bear immense significance in such scenarios, and it gets mandatory to comply with notices. Hence, face the issue from the front and mention how compliance can be achieved. As failing to notify on time, can prove to be the first step towards rejection of a claim.
4. Include a one-time related cost.
One time-related cost refers to the loss that has occurred at the time of critical delay. Thus, the claimant is bound to claim actual costs during the crucial period of suspension and not for the damages that have occurred at the end of the project during the extended duration.
5. Don’t include claims for profit.
The purpose of the claim is to restore the claimant at its original position and compensate for the costs inflicted due to compensable events. Hence, it does not leave room for profits to be claimed for, even if there’s a scope for it.
Now coming to the crunch, prolongation costs are delay costs that need to be dealt with precautious. Thus, by opting for construction claims consultants if you’re in a corporate hub like Dubai or anywhere else and following the ways discussed above can save you a lot of prolongation costs.
The pro tip is to be prepared to be quizzed and handle all with patience, facts, and evidence.
The construction industry is one of the most profitable and busiest sectors of the United Arab Emirates. Dubai expo 2020 is also nearing its beginning, which has increased the work of the construction industry. More and more people are interested in starting their projects, keeping in view the boom of the industry; however, getting a project due diligence report is the basic step towards a safe future.
What is project due diligence?
Project due diligence is a report about the social, economic, and environmental risks of a construction project. The basic purpose of the report is to shed light if the project should be continued or not. In the case of continuation, risk management is also proposed in the report to ensure the smooth flow of progress.
Generally, the landowners undermine the importance of due diligence and face several issues in project completion, as well as after it. On the other hand, some other people take help from quantum experts to get the due diligence report, which ensures the smooth and risk-free progress of their projects.
This article will highlight the role of experts in providing due diligence reports.
Top 4 Strategies Experts Utilize in Project due Diligence Report
Getting the project due diligence report is essential for any construction project. Utilizing the resources and finding out later that the project cannot be completed, is not beneficial for the involved parties. Therefore, having a clear analysis and report of the project before the start of work can save effort and resources.
The following are some of the strategies experts utilize to prepare project due to diligence reports.
Project Performance Reviews
The very first thing experts do while preparing the diligence reports is to review the performance of the project. It does not mean the actual performance, but the estimated report about the flow of work, as well as the completion date of different aspects of the progress. Experts highlight if some sections of work will take more time, investment or resources, etc.
1. Prior Budget Analysis
The second step in preparing the project due diligence report is the analysis of the budget. Before the start of any project, the involved parties prepare a detailed budget plan. They include an estimate of the cost of resources, services, foreseen, and unforeseen issues. The experts analyze that budget to assess if the defined project can be completed in the mentioned budget and propose strategies for decreasing or effectively using the allocated budget.
2. Scope of Work Definition
The third strategy expert use in preparing due diligence report is defining the scope of work. At some times, they only analyze the scope of work, instead of defining it. Basically, they highlight the milestones, deliverables, and project or service goals to ensure the smooth completion of projects. They highlight the time frame in which the goal should be achieved to keep the progress in control.
3. Identification of Potential Existing Site Conditions
The identification of potential existing site conditions is one of the most important responsibilities of experts in project due diligence. They have to consider the social, economic, as well as environmental issues and propose their alternatives or solutions, so the progress of work does not get affected.
Anxious how to get the due diligence report?
Getting a due diligence report before the start of the construction project is necessary. If you are worried about how here is an easy solution. You can acquire the services of a quantum expert and get a detailed report to ensure the smooth flow of progress. You can also ensure that the project is completed in the set limit and do not face delay or cost management issues.
The construction industry is one of the busiest and tricky work areas. Moreover, claims are an inevitable part of this industry. The claims can lead to disputes, which can cause disruption of work. All of these issues ultimately result in a waste of time and resources.
However, the claims can be resolved with the help of consultants. Before that, it is crucial to explore the two basic types of claims which include contractual and extra-contractual claims.
Contractual claims are the simpler level of claims. Construction does not involve only two people or factors that if they work efficiently, the rest of the things will go smoothly. It involves a lot of human and non-human factors that can influence the pace and quality of work.
Therefore, the involved parties agree on a few terms and conditions about the resolution of expected issues. The claims made on the basis of these are called contractual claims.
Extracontractual claims are those who are not included in the agreement. They can arise from the breach of contract or due to the extra work done according to the suitable conditions.
Being the business hub of the world, the construction industry is quite efficient in UAE. The involved parties have to deal with a lot of issues on a routine basis. They generally consult the construction claims consultants Dubai based companies for the resolution of their disputes. This article will shed light on the basic tips which can help the construction industry professionals in avoiding different types of claims.
Top Tips to Avoid Contractual and Extra-Contractual Claims
Construction claims are a major hurdle in the completion of projects. They halt the work process and cause loss from labors to landowners. Therefore, avoiding such issues is the topmost priority of the involved parties.
Below mentioned are some of the tips which can help the involved parties in avoiding these disputes and ensure timely completion of projects.
Prevention in Designing Stage
- The involved parties should effectively read and discuss the contract documents for in-depth understanding.
- The involved parties should pay special focus to liability limiting contract clauses, like notice, and damage for the delay.
- They should have a clear idea of the project delivery system and the role and responsibility of different parties in it.
- They should have a clear idea about the proposed schedule requirements and the responsibility of coordinators in this regard.
Prevention in Construction Stage
- The contractor should prepare a detailed report about the cost of material and labor, and the schedule value of the project.
- The owner should review and document the bids and schedules prepared by the contractor.
- In case of any disapproval, things should be handled in documentation and processes without any delay in time.
- Detailed schedule update discussions should be done monthly if required on the weekly, basis, and a clear picture of the progress should be presented.
- Periodical field supervision and record maintenance should be kept updated.
Worried about the resolution of contractual or extra-contractual claims?
If you are established in UAE, you do not need to worry about the resolution of any type of construction claims. You can take help from the construction claims consultants Dubai based companies and ensure timely, as well as the smooth resolution of all your disputes. You will also be able to minimize your loss and ensure timely completion of the project.
The world is making progress at a swift pace, and the skyscrapers touching the clouds are proof of it. They are the result of modern engineering technologies, as well as the contractors and owners who worked hard to make it possible.
The modern infrastructure of the western world attracts people from the whole world. UAE is also giving a fierce competition to the western countries in the form of Burj Khalifa, is the tallest building in the world. However, it would not have been possible without the efforts and dedication of all the workers.
Construction business involves a number of risks and opportunities, and concurrent delays are one of them. The delays can be due to the mistake of an owner or contractor; however, resolving these issues often becomes an enormous hassle. Construction claims consultants Dubai based companies are playing an essential role in resolving the disputes among involved parties and presenting wonderful infrastructure to the world.
4 Ways Claim Consultants Use to Resolve Concurrent Delay Disputes
Construction is a risky task that can only be managed by experts. However, sometimes, the external or internal factors influence the pace of work, ultimately impacting the completion of projects. The concurrent delay means two or more factors simultaneously halt the process and cause obstruction. It can be unavailability of the right material and poor weather conditions.
Disputes arise when the contractor and owner are not ready to accept their respective faults and compensate for the completion of the project. Construction consultant plays an effective role in resolving the issue and ensuring rapid workflow. The following are some of the ways claim consultants utilize to resolve the dispute.
When a dispute occurs, the very first thing claim consultants do is the visit to the project site. The purpose of the visit is to analyze the progress and quality of the work, in addition to identifying the problem areas. They take the feedback of involved parties and prepare a report of the projects' progress.
After developing the progress report, claim consultants analyze the whole situation. They present a report on the significant issues in the project and the role of each party in the creation and solution of those issues. They also present a strategic analysis in order to help the involved parties reach some point of compromise to resume work on the project.
Cost and Financial Analysis
Claim consultants also prepare cost and financial analysis report of the project, in order to help them have a clear picture of their loss. They utilize it as a strategy of resolving the dispute by making them realize that their actions are adding to their problems.
Lastly, the claim consultants identify the mistakes and role of each party in affecting the progress of the project. They help them in negotiating solutions in the way that both parties have to pay for the damages equally if both are responsible for the loss. They provide solutions keeping in view the legal repercussions of the situation.
Unable to resolve your project disputes?
Are you a construction company or landowner based in Dubai? Are you facing any issue in the completion of the project? You do not need to worry as professionals are here to help you. Hire the services of construction claims consultants Dubai based companies in order to resolve your disputes and minimize the loss.
The industry of construction is full of ups and downs owing to the complexity of projects. In many cases, disputes occur frequently. A quantum analyst does all the work that you might be taking for granted as a construction project owner.
A well-informed and inquisitive quantum witness is crucial to your construction project in case of claims. Whether it’s the matter of understanding legal documents, cash flows, timelines or cost, and damage analysis, he will cover it all for you. Now you might realize this is exactly what you shouldn’t be taken-for-granted.
Why is there no alternative for a quantum analyst?
A professional in the field of construction quantum is the only one who knows the subject of law, economics, accountancy, and construction process, all at once. Unless the project manager or an owner himself knows all of these subjects, reliance on quantum experts is what they should resort to. Following are a few highlights of what an analyst can offer:
An experienced analyst knows the history and philosophy of projects more than anyone else. They’re capable of recognizing causation, for optimizing the losses and gains during a construction project.
Even if someone knows what a construction project requires, it will still be unfathomable to recognize the problems the way a professional does. It is because of his primary job and he can find links between things happening around due to his experience.
Correct identification of a cause of a problem
Anyone might see an obvious discrepancy, but it requires a quantum expert to reach to the root cause of that problem. He can identify whether the situation was in control of a claimant, or a worker, or was it an unavoidable cause that resulted in a major consequence. Hence the job of a delay witness and quantum in Dubai is more common than most places.
Thorough understanding of costing
Since experts possess a multi-disciplinary knowledge, along with intricacies of cause-effect matters, he will perform for you estimations and costing analysis, which otherwise is a nearly impossible task for a stakeholder of a construction project to undertake.
Preparation of relevant documents
Documentation is a very crucial part of a construction project. Sometimes there are clauses, which might seem very usual to an ordinary person. But when an expert read it, he’ll intimate the owner of the potential repercussions, if any.
Offers compensating advantages
There are a lot of things which don’t go as planned whenever a project is going on. Sometimes when some mishap occurs, disadvantages are obvious. But the advantages are hidden and left unnoticed.
Only a professional can identify those positive aspects of the consequences and suggest ways to maximize benefits in such situations as well.
Recognizes unnecessary expenses
Sometimes, over provision occurs in equipment procurement, which isn’t exactly a profitable prospect, because materials get wasted. Expenditures go higher than anticipation, which affects the rest of the payments.
Resolution of claims is crucial for your construction project. Just like a chef knows which sauce to use in which cuisine, a quantum expert can bring your construction project as close to perfection as possible.
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