Claims and Changes, an Overview in the Seattle Area.
WASHINGTON UNIV SEATTLE DEPT OF CIVIL ENGINEERING
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In the construction industry the amount of litigation is increasing. Many times, litigation is associated with claims of lost productivity and extended overhead by contractors who feel they have been adversely affected by the actions of owners. For this study, fifteen heavy, highway, and utility contractors from the Seattle, Washington area were interviewed to determine the frequency of claims and how these contractors price lost productivity and extended overhead costs associated with construction disputes, time extensions, and change orders. Four government contracting agencies were also interviewed to obtain their point of view for comparison. The U.S. Army Corps of Engineers, Modification Impact Evaluation Guide, the Mathews Curve, and the Eichleay Formula are discussed. The goal of this paper is to examine the main reasons that cause construction disputes, describe ways to avoid disputes, explain methods to resolve disputes, and present the results of a survey that describe the current methods contractors in the Seattle area use to prove entitlement for lost productivity and extended overhead costs associated with construction disputes, time extensions, and change orders. kr
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