Construction Costs That Should Be Included In Variation Claims

Construction projects involve a variety of risks and issues. These risks and issues delay the progress of the project and make the involved parties indulge in claims. Lack of proper expertise and knowledge add to the loss of the parties, therefore knowing about construction claims and their specification is necessary to handle them efficiently.

One of the most important types of construction claims is variation claims. This type of claim arises when the involved parties fail to follow the contracted terms and make variations of any type in the construction project. The variation leads to additional costs, which should be included in the claims.

This article aims to highlight some important construction costs that should be included in variation claims…

Top 6 Types of Construction Costs to Include In Variation Claims

Variation claims are most common in countries like the UAE, where the ground conditions play an important role in deciding the fate of the project. The negligence or improper handling in the initial stages can make the parties order variation and face or file claims later on.

The following are some of the most important types of construction costs that you should include in variation claims.

1.   Labor Cost

The very first type of cost that is often included in the variation claims is the labor cost. With the variation in the project, the labor force has to do more work than already communicated to them. They have to invest more effort, time, and energy to meet the new requirements.

So, they are liable to receive a proper adjustment for their efforts. Deciding the additional costs often causes conflict among the involved parties. Therefore, they often acquire the help of construction claims consultants Dubai based professionals to resolve the issues smoothly.

2.   Material Cost

The second most common type of cost that should be included in the variation claims is the material cost. With the change in project specifications, the involved parties would have to use extra material or even a different type of material, which will cause additional charges.

In some of the cases, material changes are the base of variation claims. So, it should be included in variation claims, and the respective party should receive the identified amount to manage the project efficiently.

3.   Equipment Cost

The third common type of cost that you should include in the variation claims is the cost of equipment. An important thing to keep in mind is that the additional equipment that is utilized in the project after variation should be included in the claim.

The regular cost of the equipment cannot be included in the variation claim. So, be careful and do not hesitate to consult the professionals to avoid any hassle or issue.

4.   Mobilization Cost

Mobilization of materials or services is an important part of the construction projects. The mobilized items also need to be demobilized after they have performed the required work in the project. In the case of variation in the project, the cost can escalate.

So, do not forget to include mobilization cost after the variation in the cost of such types of claims. The owner of the project or the parties directing the variation have the responsibility of fulfilling the cost claims to boost the success of their project.

5.   Demolished Material Cost

An important issue that arises in the construction project after the inclusion of variation is the demolishing of material. The parties have no other choice than demolishing the material that is not of their use anymore. Demolishing, it will also require a little expense.

So, you should include the cost of demolished materials in the variation cost claims as well. On the other hand, sometimes, the parties can also resale the material at a discounted price if it is still in the state of being utilized.

6.   Overhead Projects

One of the most significant costs that should be included in variation claims is the overhead project cost. Every construction project includes a variety of overhead costs, which can trigger to a great extent with the variation in the project.

These often include costs like insurance, security, bonds, site facilities, office hires, etc.  If you are confused about some other overhead costs, you can consult the experts. You can acquire the service of construction claim consultants Dubai and ensure to include all the overhead costs efficiently and resolve the claim without indulging in conflicts.

Resolve the variation costs to boost the progress of the project!

A little hurdle in the construction projects often halts the overall progress. It is more prevalent in the case of variation claims, which involve a variety of costs. So, you need to take every step quite carefully for the success of your project. Do not hesitate to consult the professionals to identify and resolve the cost issues while ensuring successful progression.

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Causes and Effects of Change Orders in Construction Projects

The construction is one of the most dominant industries in the Middle Eastern countries of the world. It is enjoying a special boom in the UAE, due to the onset of Dubai expo 2020. The site of the expo is under construction. Moreover, the commercial areas are also under development to accommodate thousands of international visitors over the course of the next few months.

The project owners are trying to provide the best conditions to the visitors by paying attention to every single feature. Due to the hype in work, the parties involved in the construction project are liable to make a few mistakes, which can lead them to change orders. If the other parties do not approve the change, the situation can turn into change order claims, causing more loss to the project.

If you are facing a similar situation, making the arrangements to resolve it immediately is quite important to save the reputation of the project. If you are unable to resolve the issue through discussion, here is a perfect solution for you.

You can acquire the services of construction claims consultant Dubai based experts and ensure to reach a sound solution with the help of experts. You can also ensure to prioritize the success and safety of the project by following the suggestions of the experts.

So, avoid wasting your time and resources by indulging in conflicts and consult the experts for smooth resolution.

Causes and Effects of Change Orders in Construction Projects

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Pros and Cons of different methods of Forensic delay analysis

Pros and Cons of different methods of Forensic delay analysis

The construction industry is highly technical and requires deep insight into the working knowledge of the field in order to deal with the problems that arise. Forensic delays occur quite often in construction projects. For analyzing these delays, a critical path method is utilized. But the techniques which you can use for that are various. Each technique has its own advantages and disadvantages.   

It is difficult to choose a suitable technique for your project’s circumstances for an amateur. Only experts can do that based on their knowledge. When your construction project faces such a situation, hire a delay expert who will make sure that an accurate analysis takes place. An expert from a well-reputed consultancy will carry out analysis with the most suitable technique only after weighing in and out all the pros and cons of each technique.

Make sure you do not undermine the benefit you can gain from the expertise of a professional consultant.

Pros and Cons of different methods of Forensic delay analysis

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Why Expert Determination Matters In Resolving Disputes

Construction projects are heavy investments, and therefore everyone aspires for success. However, project management in construction is full of risks owing to the presence of delays and disputes. In a case, if you encounter a dispute in construction, it is suggested to resolve the issues peacefully by opting for expert determination.

Don’t have much information about it? The post is aimed at helping you understand the basic conceptualization of expert determination. You will also get to know the importance of getting through the process of peaceful claims resolution in construction.

What is expert determination?

In simple words, expert determination is an easy and cost-effective technique of alternative dispute resolution (ADR). It is used during the process of adjudication, while the elements of construction are analyzed thoroughly to figure out the potential reasons and scope of the claim.

Why Expert Determination Matters In Resolving Disputes

The procedure of expert determination is generally mentioned in the contract. However, it is always better getting assistance from the experienced quantum expert to oversee the process formally.  The main reason for taking professional assistance is that expert determination is legally binding on claiming parties.

Top reasons expert determination helps in construction disputes

Nevertheless, construction projects are complicated in nature, and the dispute can occur owing to contractors’ negligence or lack of cooperation from the owners. In any case, all stakeholders should strive hard to resolve the claims as soon as possible to avoid inconvenience.  Here are given a few important reasons why you should consider expert determination for resolving disputes:

Systematic approach towards disputes

The contraction industry is a complex sector where uncertainties rule the processes. However, if you opt for expert determination, you will get to know that it is something really precise and systematic. Owing to this reason, the method is usually deployed to get through technical issues and faults from the building process.

A quick method for dispute analysis

Delays in dispute handling further aggravate the situation. It is because disruption in construction further aggregates the situation. Therefore, selecting an approach for conflict management is something crucial for peaceful resolves of the problem. Interestingly, expert determination is significantly important, owing to the reason that it is quick and straightforward.

Confidentiality and unbiasedness

Confidentiality is the first and foremost requirement is every industry in the world. However, it is more important in the sector of construction to ensure 100% confidentiality to avoid further misunderstandings and conflicts. For this purpose, you should consider analyzing the essential qualities and skills of consultants must to be on the safe side.

Ensure legal binding for resolution

Last but not least, expert determination is a legal binding on the disputing parties. Therefore, the probability of claims resolution is considerably higher than other methods and approaches. So, if you want to avoid the complications in your construction project in a case of any dispute, it’s better to opt for precise methods.

Are you thinking of expert determination?

In a case that you are facing a serious problem in your construction project and don’t know how to get through the process owing to financial complexities.  You should consider hiring a quantum expert because a professional can come up with comprehensiveness in expert determination.

The process is highly effective when the parties are in continuous disagreement, but they want to avoid litigation in every case. Additionally, the method is incredibly useful in the case of technical issues. So, don’t forget to look for dispute resolves through expert determination!

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Critical delay factors related to contractors in the construction

Critical delay factors related to contractors in the construction

The construction industry is full of ups and downs. It is owing to the reason because a slight mistake by the contactor can derail the project leading towards disruptions in the construction process. Keeping the critical role of the contractors, the owners should consider hiring experienced individuals to supervise and manage the projects.

The construction industry is the backbone of the UAE’s economy. The significant importance is given to the delay-free delivery of the projects. However, still, there are reasons when contractors cause delays in the projects that are discussed in this post – So, keep reading!

Critical aspects of delays caused by the contractors in the construction

Nevertheless, the contractor is the manager of the project in construction owing to the critical role they play in bringing success. In a case that you have stuck into project disruption, it is better to take assistance from delay expert to figure out who was responsible for it – a natural reason or mistake by the contractors.

Before that, you should have the knowledge about contractor triggered delays – here is given the detail:

Inadequate experience of the contractor

Nevertheless, the experience of the contractors is essential for successful project completion. In this regard, the general experience, along with hands-on practice on certain tasks and activities is crucial to eliminate the risks of delays.

In a case that the contractor lacks in the adequate experience of working in particular building projects, the project owners may have to face the results. So, if you want to avoid delays in construction, it is suggested to go for experienced contractors.

An inaccurate estimate of the timeline

The successful project completion depends more on optimized scheduling. It is because the construction managers have to stick to the deadline for meeting the requirements. In this way, time estimations are the most crucial elements that can help in managing the tasks and activities of the construction projects.

 There is no denying that inaccurate or faulty estimates may lead the projects towards disruptions and postponements. Therefore, it is essential to look after the project in terms of effective time management. The best way is to distribute the project into small chunks of process and complete the processes in a connected manner to avoid deferments as much as possible.

Poor management of the site

Another important factor that leads the construction projects towards delays is poor management of the construction site. It is imperative to understand that construction is a connected series of different processes that are required to be carried out in a perfect manner. Any mismanagement in the sequence or inadequate decision regarding the site can trigger potential delays.

Therefore, it clearly depends on the contractors to make a comprehensive plan of managing the site in an optimized manner. For this reason, the contractors should have adequate skills to manage the construction site along with building processes critically.

Lack of proper supervision

Last but not least, the contractors have to be vigilant about construction supervision because negligence in comprehensive monitoring can cause the project delay.  Essentially, construction projects are all about effective communication and supervision. Therefore, the contractors have to consider all aspects of construction to eliminate the risks of disruptions in construction.

Keynote on contractor related delays in construction

Summing up, delays have a negative impact on construction projects. Therefore, it is essential to avoid such disruptions as much as possible to avoid disputes among the contracting parties.  If contractors show the signs of any of such negligence, it is better to get help from the experienced delay expert for construction project analysis to resolve the delays.

Remember! The success of your construction project depends on the professional capabilities of the contractors. So, hire the best ones!

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How Experts Deal Construction Claim to Boost Project Productivity

How Experts Deal Construction Claim to Boost Project Productivity

The construction industry has been an essential part of every world society for centuries. The pace, quality, and technicality of the work keep changing with the passage of time; however, the basics remain the same. Due to the advancement of technology, the use of machinery and technology has increased in the projects, which ensures quality and productivity.

The UAE holds a central position in the whole world. Due to attractive business opportunities in the area, the world-famous organizations are establishing their offices in the region. This is one of the most important reasons the construction industry is always the busiest in the Middle East.

There are pros and cons to every work. In the case of the construction business, the cons are the claims and issues that arise during the project completion and decrease the productivity of work. The contractors, landowners, and labor force face major conflicts that ruin the flow of work as well as cause monetary and market value loss to the project.

If you are facing the same issue, you should not let the conflicts ruin the struggle and effort of years or months. You can take the help of construction claims consultants Dubai based companies and ensure smooth resolution of all your project issues. You can ensure to highlight the responsible party and resolve the issue in order to boost the productivity of the project. You can ensure better concentration and productivity of the workforce by implementing the expert opinion.

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How Experts Use Window Delay Analysis to Improve Project Progress

Construction is one of the trickiest business in the world. Even after all the planning and careful execution, any internal or external factor can halt the project and impact its progress. The delay in the progress of the project can create disputes among the landowners, contractors, and other involved parties. Finding the solution to the issue may prove to be difficult. This is one of the important reasons for expert consultation.

The world expo is being organized in the UAE. It will commence in Dubai in October 2020. Due to this international endeavor, the construction industry in the region has become the busiest. The management and e construction companies are facing the pressure of completing the construction site and ensure proper arrangement.

Window delay analysis is an effective strategy of evaluating the progress, as well as factors contributing to the delay of the project. Generally, the managing authorities in the UAE are taking the help of delay experts to evaluate the progress of the project and get the strategies to ensure its smooth completion.

This article will shed light on the top ways experts use window delay analysis to improve the progress of the project.

Top 4 Ways Window Delay Analysis Improve Progress of Project

Typically, a construction project is divided into few sections, according to span or type of work. These sections are called windows. In the case of window delay analysis, the experts analyze the progress and delays in different windows and highlight the causes of delay.

The following are some of the most important ways experts use to do the window delay analysis and ensure improvement in the progress of the project.

1.      Review Planned and As-Built Schedules

When a construction project is decided, the landowners and contractors prepare a detailed report about the expected progress of the project. The window delay can occur if the plan is not executed properly, and there is a difference in the built schedule. The experts utilize the planned schedule and review it with the as-built schedules.

2.      Identification of Differences in Planned and As-Built Schedules

The second way experts utilize for delay window analysis is the identification of differences in planned and as-built schedules. They closely review different project windows and make a detailed comparison of the planned and as-built schedules. The experts than utilize the differential statistics to highlight the discrepancies in project completion.

3.      Evaluate Contract and Causation Analysis

Another important way experts use in window delay analysis is the evaluation of contract and causation analysis. At the time of finalizing the contract, the involved parties decide on the estimated time, cost, material, and non-material resources and other matters of the project. Moreover, a causation analysis is done to highlight the factors contributing to delay. The experts use both elements to evaluate the difference.

4.      Analysis of All Window Periods

A construction project is divided into different windows. Every window can face a different type of delay and get affected by it in a distinctive manner. The experts review and analyze every window in detail to evaluate the factors contributing to delay. They also highlight the role of different parties in impacting the scenario and halting the progress of the project.

Facing challenges in the progress of the project?

It is quite understandable that the situation can cause you a lot of stress and monetary loss. However, there is no use of sitting back and waiting for everything to resolve on its own. You can consult the delay experts and get a detailed report about the issues, as well as the strategies to resolve the issues. You can also ensure to get a detailed window delay analysis and report about smooth and progressive project completion in the future. So, take the right initiative instead of wasting your time.

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Top Ways to Eliminate Claims during Construction Process

Role Of Claim Consultants In Dealing With Critical Delays

Top Ways to Eliminate Claims during Construction Process

The industry of construction is considered highly volatile, owing to the complex nature of projects. The industry is flourishing rapidly in the nuke and corner of the world. It is evident from the fact construction market of the UAE is expected to reach 5.5 percent over the period forecast 2019-2024. Essentially, a growth in projects leads to the growth in complexities. Therefore, the ratio of disputing claims is also on a rise.

Nevertheless, the contractors, as well as the project owners, should consider eliminating the probability of misunderstandings and disputes to complete the projects successfully. It can be done by adopting a proactive approach from the very start of the project.

However, it is not possible to eradicate the probability of conflicts. So, when it happens, be brave and go for effective negotiations. A strict adherence to standardized procedures under the supervision of experienced quantum expert can help you resolve tricky issues in projects.

Lastly, don’t forget to set up realistic expectations while contracting a construction projects because the work is full of sea-saw owing to the presence of internal and external influencing factors!

Top Ways to Eliminate Claims during Construction Process

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Role Of Claim Consultants In Dealing With Critical Delays

Most construction projects face different kinds of delays before they reach completion. Very seldom do they end without facing any critical or non-critical delay. It is the very nature of construction projects. Some delays affect only smaller parts of the project, and the overall work does complete in due time. But some delays cause the project completion to delay altogether.

Role Of Claim Consultants In Dealing With Critical Delays

To deal with delays and their resultant claims, as a construction project owner, you need the services of a construction claim consultant. These professionals are very crucial to your project because of their specialized experience with all kinds of delays.

Critical delays and Non critical delays:

Delays which cause the completion of the project to go beyond the scheduled time are called critical delays. Some delays do not affect the completion schedule of the project. These delays are called non-critical delays. When you don’t handle noncritical delays properly, critical delays occur.

Main roles played by a construction claim consultant:

Construction claim experts have an important job. In some parts of the world, like the UAE, their job becomes even more important and celebrated. This is because of the booming construction industry there. So, if you are facing delays in a construction project in Dubai, you are in luck, because UAE is the hub of lucrative opportunities.

You can manage risks of critical delays pro-actively with the help of experienced construction claim consultants in Dubai. They are best at handling claims that result because of the delays. They understand contractual terms. They review and approve schedules. They optimize your management methods. They see through the causation.

Following are the main roles these professionals play in avoiding delays and tackling claims resulting from these delays:

1. Legal Role

Before operations begin for a construction project, a contract, which is a legal document, is signed. Terms and conditions are laid out. These terms are loaded with legal jargon, which only a professional of the field can understand.

a. Anticipate legal issues

The most important part that a claim consultant plays is foreseeing that which matter can become a legal issue. When it is foreseen well before time, it can be avoided altogether. Thus a critical delay can be avoided by acquiring services f an expert.

b. Build your defense case

You never know when your project operations cross a line in legal terms. These intricate matters are easy to understand a claim consultant. A professional will help you build your case in court if need be.

c. Pinpoint errors any party has made

Construction companies sometimes make errors which hurt your constructions project so much so that the project timeline suffers a lot. In such times a consultant can pinpoint, what, were, and how the fault lies on the company so that the fate of your project is safe from jeopardy.

2. Safety Role

Safety holds paramount importance in any construction project. Thus you must hire a claim consultant, so there are no risks related to safety during or after completion of operations of the construction project.

a. Identify issues and weak spots

A claim consultant identifies all the weak spots, as his experience dictates it for him. This experience can prove to be a savior for your building because if heavens forbid one person loses his life, your project can face critical delays. You might also go through litigation.

b. Anticipate issues due to lack project manager’s experience

An expert of the field can see through the inefficiencies of strategies of a project manager. If he is inexperienced, your only refuge is an experienced construction claim consultant. Because you cannot compromise on safety- be it the workers on the field, or consumers and dwellers after project completion. 

c. Well-versed in the role of safety

Only a claim consultant realizes the role of safety in a construction project because they see and observe the project from a different perspective than all the stakeholders.

Have you hired a construction claim consultant for your construction project?

If you’re in the UAE and are facing problems with your construction project, you do not need to worry. Just go and hire one of the best construction claim consultant in Dubai. This practice is important for your project’s successful completion on time. Notwithstanding, the foresight and experience of these professionals in the legal and safety aspects of the construction industry. Now is the time to make a wise choice!

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Phases of Construction Claim Management

Phases of Construction Claim Management

Construction projects are typically very complicated. Hence, Claims are inevitable in any construction project. These claims need effective management. There are specific phases in which claim management of kinds is carried out. All of this is carried out by construction claim consultants.

Four phases for construction claim management:

The claim is an issue that needs management. Effective management of a claim is important to reach the desired results of the project. Thus claim management in an inevitable need. There are four prominent phases to manage a construction claim. These are as follows:

Prevention

A claim can be prevented before the tender or formulation of the project’s contract. Contract documents typically include all the information and requirements related to the project. Once the contract is signed, there is no way to prevent the claim afterward. This is why contract formulation should be carried out very carefully so that it doesn’t get unfair to any of the parties involved in the project.

Claim consultants are very important for the construction industry. It’s not an overstatement to say that a construction project cannot reach its desired results without hiring a consultant. There’s an abundance of highly professional construction claim consultants Dubai has to offer for its construction industry. Thus its industry is booming for decades now.

Construction Claim Management

Mitigation

Claim mitigation can occur in the case of high-risk environments. A consultant works hard t minimize the probability of occurrence of such a claim. Improvements in the contract can although help minimize the impacts of damage. Minor changes are made in the scope of the project. Sometimes changes are also made in responsibilities and risks related to the project. 

Identification and quantification

Analysis of the scope of the work results in claim identification. Provisions of the contract also play an important role in claim identification. Once an activity is examined and identified by an expert as a claim, then that claim is quantified. Costs related to the claim are the responsibility of the party at fault.

Direct and indirect costs are evaluated and pinned on the party responsible for the damage, delay, or loss of any resource. Hence construction project owners must hire construction claim consultants Dubai based professionals for the identification of reasons that delays or disrupt a project. They are as important as project managers in most construction industries of the world.

Resolution

Experts know how and what to negotiate after quantification of claims. They arbitrate and talk to all stakeholders. After talk and negotiation, they fulfill the legal formalities.

Claim management in conclusion

Construction projects and claims always go hand-in-hand. But priority should be to prevent a construction claim. When a claim occurs, the prevention fails, then its impacts are mitigated by expert consultants. They identify the claims after a thorough analysis of the scope and contractual provisions, claim consultants quantify them. The last phase is to resolve the dispute caused by the claim.

Remember! You cannot avoid claims, but you can always manage them effectively with the help of experienced consultants of construction claims.

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