Masonry Magazine June 1987 Page. 18
CONSTRUCTION CLAIMS
Modifications of drawings, specifications, or interpretations by the owner or his representatives can lead to claims. These daily logs can be utilized to document an extension of time and the associated costs involved in a claim.
An additional and important reason for maintaining a daily log is to keep your office informed about what is happening on the project. Without their knowledge of events, changes in the initial scope of work could occur and go unnoticed. Include in the log weather information, manpower, and all site visitors, including the visits of engineers, project managers, or business agents. Also indicate where and how much work was performed. If it is piping, specify how many feet of different sizes were installed. If the job is subsequently delayed, and you have kept the log up-to-date from the beginning, you can show the inefficiencies encountered by comparing a normal period of performance to the impacted period of performance.
Along with the daily log, take pictures periodically of the conditions on the site, especially if there is an event which may become a claim item. The pictures can be in the form of video tapes, polaroid-type pictures or even time-lapse photography. The old adage that 'a picture is worth a thousand words' applies in construction-it may in fact be worth thousands of dollars.
Another important item of documentation is a telephone log or telephone conversation memo. When you have a telephone conversation, document any information you receive. Include the time that the call was made, basic discussions, and the action to be taken. If the call was significant, send a copy of your understanding to the other party. The "memo of understanding" will preclude any differences of interpretation, and if a response is not received, the record you keep will normally govern the interpretation of the call.
Since change order quotations and approvals require tracking, also keep a change order log. During any change order process, there is a period of delay. The delay is initially on behalf of the owner's architect or engineer in preparing the forms and gathering the information required as a result of the change. Document this period of time so you can slow time lost.
Q:
How can change orders reduce the risk of claims?
If your contract or subcontract states that no additional work may be performed without a written change order, follow the contract provision. If you work without a change order which may be delayed in being accepted, or not accepted, you have performed work for which you may not receive compensation.
If there is a set date for the completion of the project, then include in every change order a request for an extension of time. The request for time should not only include the period it will take to perform the additional or changed work but also any delays in the work required to prepare for the change.
Many mason contractors cannot estimate the impact that an individual change will have on the overall project. Even those who can will generally not be able to get this amount included in the change order. Therefore, in addition to the request for time extension, include a clause at the bottom of your change order stating that you are reserving your right to any consequential or subsequent damages due to the impact that the change will have on the balance of work. Notice of a potential claim is being initiated at this point.
Q:
Can shop drawings be a source of claims?
Shop drawings can lead to claims situation if an "or equal" clause is included in the specifications. This clause usually specifies the equipment required on the job or the installation of an equivalent or "equal" product. The architect may design the project around the specified manufacturer's product, and the inclusion of a different piece of equipment under the "or equal" clause may necessitate a different size or a different type of building. The specified equipment may have been selected because of the architect's past experience with it or because it conforms to the owner's existing equipment which will eliminate additional stocking of spare parts or training of maintenance personnel. The different product which you submit as "equal" to the specified equipment may be rejected for something as simple as the different location of a bolt. The submission, rejection and re-submission will cost.
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