AN OVERVIEW OF CONSTRUCTION CLAIMS: - Clark Wilson LLP

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TABLE OF CONTENTS I. INTRODUCTION..............................................................................................................1 II. HOW DO CONSTRUCTION CLAIMS ARISE ..........................................................1 III. IV. GENERAL RECOMMENDATIONS FOR AVOIDING CONSTRUCTION.............2 NOTICE REQUIREMENTS FOR CONSTRUCTION CLAIMS................................3 V. CLAIMS ARISING OUT OF DELAY ............................................................................1 A. DELAY................................................................................................................................1 1. What is Delay...........................................................................................................1 2. Causes Of Delay ......................................................................................................1 3. The Concept Of “Float”...........................................................................................3 4. The Concept Of Acceleration ..................................................................................4 5. What Is Required For A Successful Delay Claim..................................................5 6. The Heads Of Damages ...........................................................................................5 B. RECOMMENDATIONS FOR AVOIDING DELAY CLAIMS AND ENSURING YOUR RIGHTS ARE WELL PROTECTED IN RESPECT OF DELAY..........................7 VI. CLAIMS..............................................................................................................................8 A. DIFFERING SITE CONDITIONS......................................................................................8 1. Types Of Differing Site Conditions.........................................................................8 2. Category #1 Conditions – What Was Indicated In The Contract Documents .........8 3. Category #2 – Conditions Not Anticipated And Not In The Contract ....................9 B. CONTRACT CLAUSES IN GENERAL AND ALLOCATION OF RISK......................10 C. GENERAL CONDITIONS OF THE CCDC 2 - 1994 ......................................................10 1. Differing Site Conditions Clauses .........................................................................10 2. Withholding Contract Monies And Termination Of Contract...............................11 D. NOTICE REQUIREMENTS UNDER GC 6.4..................................................................12 E. DIFFERING SITE CONDITIONS MAY CAUSE DELAY.............................................12 F. SUGGESTIONS FOR AVOIDING CLAIMS ARISING OUT OF DIFFERING SITE CONDITIONS..........................................................................................................13 VII. CLAIMS............................................................................................................................14 A. INSUFFICIENT PLANS AND SPECIFICATIONS.........................................................14 1. What Are Plans And Specifications.....................................................................14 2. Disputes Over Plans And Specifications ...............................................................15 3. Shop Drawings.......................................................................................................15 4. Architects And Engineers ......................................................................................15 5. The Contractor’s Responsibility ............................................................................17 6. Owner’s Responsibility For Design.......................................................................17 B. RECOMMENDATIONS FOR AVOIDING CLAIMS ARISING FROM INSUFFICIENT PLANS AND SPECIFICATIONS.........................................................17 © 2005 Clark Wilson LLP www.cwilson.com Samantha Ip, T. 604.643.3172
p. ii VIII. CLAIMS............................................................................................................................18 A. FAILURE TO SCHEDULE AND COORDINATE..........................................................18 1. Scheduling Clauses ................................................................................................18 2. Coordination Clauses.............................................................................................18 3. The General Conditions - Scheduling....................................................................19 4. The General Conditions - Coordination.................................................................19 5. Government Entities ..............................................................................................20 6. Delay And Failure To Schedule And Coordinate..................................................20 B. RECOMMENDATIONS FOR AVOIDING CLAIMS ARISING OUT OF A FAILURE TO SCHEDULE AND COORDINATE..........................................................21 IX. CLAIMS............................................................................................................................22 A. FAILURE TO COOPERATE............................................................................................22 1. The Owner’s Duty To Cooperate...........................................................................22 2. The Contractor’s Duty To Cooperate ....................................................................23 B. RECOMMENDATIONS FOR AVOID CLAIMS ARISING OUT OF FAILURE TO COOPERATE..............................................................................................................23 X. LIABILITY AFTER COMPLETION ...........................................................................23 A. NEGLIGENCE CLAIMS ..................................................................................................23 1. What Is Negligence..............................................................................................24 2. Duty Of Care..........................................................................................................24 3. The Standard Of Care - Reasonableness................................................................25 4. Generally Accepted Construction Standards .........................................................25 5. Building Codes And Regulations ..........................................................................25 6. Duty Of Care..........................................................................................................25 7. Contracting Out Of Tort Law ................................................................................26 8. Other General Conditions ......................................................................................27 9. Notice Requirements For Making A Claim And Default Provisions ....................27 10. Indemnification Provisions Under The General Conditions..................................28 11. Waiver Of Claims Provisions Under The General Conditions..............................29 XI. LIABILITY AFTER COMPLETION ...........................................................................29 A. WARRANTY ....................................................................................................................29 1. What Are Warranties............................................................................................29 2. The Warranty Provision In The General Conditions .............................................30 XII. CONCLUSION ................................................................................................................31 © 2005 Clark Wilson LLP www.cwilson.com Samantha Ip, T. 604.643.3172
Page 1: AN OVERVIEW OF CONSTRUCTION CLAIMS:
Page 5 and 6: p. 2 • Failure of parties to coop
Page 7 and 8: V. CLAIMS ARISING OUT OF DELAY A. D
Page 9 and 10: p. 3 • Excusable delays may be fu
Page 11 and 12: p. 5 5. What Is Required For A Succ
Page 13 and 14: p. 7 PRODUCTIVITY • Productivity
Page 15 and 16: p. 9 • The presence of subsurface
Page 17 and 18: p. 11 2. Withholding Contract Monie
Page 19 and 20: p. 13 time extension due to the eff
Page 21 and 22: p. 15 elevations, sections, details
Page 23 and 24: p. 17 compensable delay for the con
Page 25 and 26: p. 19 3. The General Conditions - S
Page 27 and 28: p. 21 Finally, schedules serve as a
Page 29 and 30: p. 23 that the coordination of cons
Page 31 and 32: p. 25 3. The Standard of Care - Rea
Page 33 and 34: p. 27 8. Other General Conditions T
Page 35 and 36: p. 29 (b) (c) What is noticeably ex
Page 37: p. 31 (k) (l) (m) (n) (o) (p) (q) (

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