• Title/Summary/Keyword: Construction Claims

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Risk Mitigation Methodology of the General Conditions of Contract (공사계약일반조건의 위험요인 감소방안)

  • Yoon, Chul-Sung;Kwon, Soon-O;Kim, Seon-Gyoo
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.5 s.27
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    • pp.177-185
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    • 2005
  • Construction uncertainties are frequently exposed to the claims. In most cases, an interpretation of the claims is based on the construction contract. Therefore, the key points of contract negotiation are how to fairly distribute the contract risks to the client and contractor. For these, a FIDIC that is considered as an international standard contract form would be a good reference to decide reasonable contract risk distribution. In order to find out any unreasonable and unfair contract clauses at the general conditions of contract applying generally to public construction project in Korea, this study surveys, analyses and evaluates the general conditions of contract based on a FIDIC, and then proposes a risk mitigation methodology to response those clauses' risk factors reasonably.

Adjudication in Australia: A Study of Adjudication Activity in New South Wales for 2013/14

  • Brand, Michael C.;Kim, Jinu
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.396-400
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    • 2015
  • The Building and Construction Industry Security of Payment Act 1999 (NSW) (the NSW Act) is a unique form of statutory regulation for the building and construction industry, which gives virtually all industry participants a statutory right to, and a means of recovering, payments for work done under a construction contract. The research aim is to examine current trends in adjudication applications and determinations under the NSW Act. The data used for this study was the collected by the NSW Office of Finance & Services as part of a regular reporting regime for the period from 1 July 2013 and ending on 30 June 2014. With just over 817 adjudication applications having been made over the 2013/14 period, the data indicates that adjudication is being frequently utilized by stakeholders in the NSW building and construction industry as a means of progress payment recovery. Adjudication is proving to be a popular choice for those making claims of less than AU$250,000. Claimants were awarded about 36% of the total of claimed amounts and claimants are generally successful at adjudication in terms of the proportion of the claimed amounts determined in their favour. This is particularly so in relation to claims of less than $100,000, which represents about 70% of the total applications made over the reporting period. The data indicates that adjudication fees are generally modest enough to conclude that adjudication provides claimants across all claim ranges with a relatively inexpensive means of having disputed progress payments determined by an independent adjudicator.

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A Study on the Dispute Boards in International Medium and Long-term Transaction - Focus on the Construction Contract - (중장기 국제거래에서 분쟁해결위원회에 관한 고찰 - 건설계약을 중심으로 -)

  • Yu, Byoung Yook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.57
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    • pp.79-108
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    • 2013
  • International transactions of plant and construction project need to time to time for completing the contract. During the performing the contract there may arise many claims and disputes it should be settled rapidly for processing schedule of works. However, arbitration and litigation for settlement of dispute are inappropriate in time and expense under the specifications of plant and construction project. Dispute boards are one of the successful resolution method of dispute prior to litigation or arbitration. If the dispute board was failed, of course, it may be allowed to continue into litigation or arbitration. As the creative methods of parties agreement, dispute boards may be expected to avoid claims and dispute in long and medium international contract. The purpose of this paper is to explore the specification and limitations of dispute boards that may clear disputes under long and medium contract of construction and procurement. It needs to be understand to determine whether is the useful methods for resolving dispute in the international project. This paper considers the specific natures of dispute board and its rules, procedures and problems including ICC and FIDIC for the contract of long and medium transaction.

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Forecasting the Effects of the Claims in the Korean Construction Industry (국내 중재사례를 통한 주요 건설 클레임 예측 방안)

  • Kim, Jihye;Im, Haekyung;Choi, Jaehyun
    • Korean Journal of Construction Engineering and Management
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    • v.17 no.5
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    • pp.35-44
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    • 2016
  • Various risk factors are known to be the nature of construction project execution process. These factors lead to potential claims, dispute mediation, arbitration, and litigation which can result in huge loss of money and time. Therefore, it is necessary for construction companies in Korea to improve overall project management capability through the evaluation before entering into the overseas construction market. Also, after examination of the claim and dispute caused by construction project risks, a substantial degree of influence and active preparation for the claim and dispute management should be confirmed via the effect analysis of the each factors. Main claim causes were derived through claim and dispute cases involved with domestic construction projects. As a prediction result of the main claim, 16.1% of the construction change claim, 5.7% of the bad faith claim and 2.7% for the construction delay claim were found to be the portion of the total construction cost. As a result of this analysis, risk management methodology was suggested to improve a project management capability for domestic construction companies through analysis result of the main factors of construction claims.

The State of Schedule Management and the Recognition of Duration Shortening (공정관리의 실태 및 공기 단축에 대한 인식정도)

  • Kim, Ja-Yeon;Kim, Eui-Sik
    • Journal of the Korea Institute of Building Construction
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    • v.10 no.5
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    • pp.87-94
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    • 2010
  • Construction projects are based on the actual field, so if the construction schedule that is established in the construction plan is delayed or extended for various reasons, construction companies are vulnerable to claims, and thus strive to complete a building within the planned timeline by shortening the construction time. Therefore, this study surveyed technicians in apartment construction in Gwangju, and studied their perceptions of the actual conditions of process control, construction time needs, goals, and methods. The results showed that the organization of the process control department and professional employees was lacking compared to other regions. The need for construction time was perceived as high, while the reduction of the construction cost was perceived as low. Regarding the reduction goal, they perceived highly the preparation for the delay of construction time and various claims, and for the reduction method, they mentioned the extension of working hours and the increase in employees. Based on the results of this study, technicians should consider that a reduction of construction time not only can make up for a delay in construction, but is also closely related to improvements in production through reduction of cost, and increased international competitiveness.

A Study on the Delay Claim in Construction Projects (계약공사기간 연장에 의한 클레임 처리방안)

  • 노병옥;이상범;이호일
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2001.11a
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    • pp.93-98
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    • 2001
  • If the construction delays are occurred during the project execution, the contractual parties should inquire the delay causes and the contractual obligation. Due to the compensation of damages, the interested parties and the contractual parties are placed on the adverse situation. For reasonable of the claim and dispute, the contractual parties are needed the objective and systematic procedure method to analyze the delay. The purpose of this study is to propose a formal process model considering the case of construction delay-claims.

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Development of Review Processes and Tools for Liquidated Damages for EPC/Turnkey Project: Contractor's Perspective

  • Hahn, Ki Jeong;Lee, Eul-Bum;Kim, Young Ho
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.718-719
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    • 2015
  • As a recent global trend, the majority of plant projects are delivered through EPC or EPC-turnkey contracts, where a contractor's liability is more complicated because of the mega size scale and financing method. Previous researches have been lacking a practical usability for project members for liabilities of contracts. Those were focused on solving the claims or schedule calculation issues only. The objective of the present study was to develop a validation process for LDs (liquidated damages) in contractor's liabilities with various case studies and expert judgments. As summarized in this paper, the processes and tools were developed with project life cycle process. The project preparation phase includes 3 step check lists to determine the Go or No-go for projects. In progress phase, contractors should focus on the response strategies for claims with liabilities. The study concludes that those developed processes and tools will help to manage risk of LDs for the contractors in the overseas projects.

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The Study on Analysis of the Claim Elements for Preventing the Potential Claim in a Large-Scale Turnkey-Base Building Project - Focused on Cases of Domestic Project - (대형 건축 턴키공사의 클레임예방을 위한 클레임 요인 분석에 관한 연구 - 국내 사례를 중심으로 -)

  • Yoon Jun-Seon
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.1 s.23
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    • pp.205-211
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    • 2005
  • Turnkey projects accounting for some $10\%$ of the total volume of the projects in the domestic market have been often implemented without the process of full-scale review or study because of clients' lack of expert and expertise. Moreover, many projects have been executed under the terms and conditions of the contact which were found to be unilaterally in favor of the clients. The study, as part of effects to mitigate the claims that would possibly be caused by the potential problems with the typical turnkey projects, were intended to identify the elements of the claims virtually being occurred at the construction sites, and then analyze the degree of influence on the project so as to be able to incorporate the outcome into the plan at the working-levels. As a result of experts' review, through the survey, of the elements once extracted, those having relatively higher degrees of influence on turnkey projects were determined, and the investigation aimed at estimating the amount of claims in terms of value were conducted to eventually identify, evaluate and verify the elements that had affected the Project together with the degree of influence.

Claim Management during Construction based on Key Claim Management Factors (클레임 핵심관리요인을 기반으로 한 건설공사 중의 클레임 관리)

  • Lee, Jun-Hyung;Lee, Hyun-Soo;Park, Moon-Seo;Kim, In-Ho
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.463-468
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    • 2007
  • The disputes in construction projects are very important issue for stakeholders. However, many of presented claims have not received the compensation money required, and frequently turned down. The most cause is that the claims are not managed systemically on construction. Therefore, it is important to identify which management works are conducted on construction and how significantly do they relevant to construction claim. This research derives key claim management factors through analyzing causes for claim success and failure, and then presents management works relevant to them. This research also proposes the method for effective claim management and its expected effect through expert interview.

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The Process of Identifying the Responsibility Party of Caused Delay Claim by Ambiguity of the Conditions of the Contract (계약 조항의 애매모호성에 의해서 발생되는 공기지연 클레임의 책임 당사자 확인 프로세스)

  • Lee, Chijoo;Kwan, Taewook;Koh, Hoonsuk
    • Journal of the Korea Institute of Building Construction
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    • v.20 no.6
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    • pp.527-535
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    • 2020
  • This study analyzed main causes of claims in EPC/Turnkey projects. For this purpose, this study referred to the FIDIC silver book, which lists the international standard contract conditions for EPC/Turnkey projects. The most frequent cause of claim was delay. A process was then proposed to determine whether the owner or contractor was the responsible party when the delay claim occurred. The proposed process was for damages for delay which is the conditions of contract for indemnities against delay claim. The process was based on conditions of the contract of two previous EPC/Turnkey projects that were constructed in 2010, the FIDIC silver book, as well as the obligations of owner and contactors. The proposed process is applicable depending on the conditions of the contract and the owner's meaning. Furthermore, by identifying the responsible party, this study will contribute in identifying the possible claim types before concluding a contract and writing the specific contract.