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Claims Management & Dispute Avoidance

Introduction

Most construction and engineering and related industry projects are complex, with a variety of stakeholders and often difficult and changing physical and economic environments, not the least of which are the challenges faced by business in the post-pandemic, high energy cost world. This is one of the reasons you should look to mitigate potential disputes at the tendering and contract phases and ensure that your company understands the importance of timely and effective communication, geared towards the avoidance of disputes, and mechanisms to prevent claims from escalating by the application of general principles of efficient claims management and mitigation that when followed will eliminate or minimize potential claims.

The principles of claim mitigation and dispute avoidance include a clear and carefully described scope of work, a reasonable schedule and an appropriate methodology of project execution tailored to the type of project and the degree of risk involved; fairly drawn contract terms that provide logical sharing of risk for possible changes and unknown site conditions, force majeure type delays, periodic reporting, fair notice provisions and approval times which also provide a basis for minimizing claims; ensuring the contract is written in clear language, removing any potential for ambiguity; and the mitigation of risk by the use of a risk management plan that allocates the risk between the parties on the basis of which one has the most control over the risk involved.

This Claims Management and Dispute Avoidance training course focuses on the knowledge, skills and processes required by a claims management team to actively engage these principles and develop corporate strategy which goes directly to the bottom line of a company in terms of cost control.


Course Objectives

  • Understand the risk to the company of claims and claims management as a matter of policy
  • Identify claims and those which should be pursued or defended
  • Know how to pursue and defend the most common claims
  • Understand the framework of structured conflict avoidance
  • Develop your negotiation and decision-making skills to avoid disputes
  • Use appropriate dispute resolution techniques to mitigate claims


Target Audience

  • Contracts Supervisors
  • Project Managers
  • Project Engineers
  • Project Management team professionals
  • Contract Management Professionals
  • Claims Management Professionals


Course Outline

Day 1: Claims Management in the Construction Industry - Overview 

  • Introduction to construction claims management
  • Stages of disputes and outcomes
  • Foundations of conflict and drivers of behaviour
  • Nature of contractual and tortious liability
  • Regulation and compliance


Day 2: Claims Prevention

  • Documentation and planning needs
  • Logical and inclusive risk distribution.
  • Scope assessment and contractor requirements
  • Distribution of information to meet contract purpose
  • Responsibilities of parties and stakeholders


Day 3: Mitigation 

  • Project planning and methodology
  • Express contract terms
  • Risk management plan
  • RFI procedure and timelines
  • Indemnities, guarantees and insurance


Day 4: Pursuance and Rebuttal 

  • Contract dispute and responding to a contract breach
  • Claim identification, scope, responsibilities and viability
  • Claim quantification: Financial compensation and/or time extension
  • Negotiation and persuasion
  • Exclusion, waiver, disclaimer, force majeure and frustration


Day 5: Contemporary Issues in Dispute Avoidance Post Pandemic

  • Policy and commerciality of disputes
  • 7 methods of improving claims outcome
  • Insurance in a post-pandemic world
  • Variation clauses and contractual flexibility
  • Finish up and final Q&A session