Avoiding Construction Disputes Pt. 5
Records
The three most important requirements for successful claims are Records, Records and Records (subject to the correct and timely notice having been given).
Accurate contemporary records, agreed by both Parties will go a long way in supporting evaluation of change and claims.
In evaluating entitlements, first establish the contract requirements based on Scope of Work, Drawings, Specifications etc. and confirm that a Change has occurred and been notified.
Managing Change is a team responsibility, ideally including the Employer’s team and representatives and for contractors is not simply the responsibility of the commercial team.
It is important that the work supervisors and foreman are made aware of any Change so that the daily crew sheets can reflect the resources used and these records should be submitted daily to the Employer for signature.
If daily crew sheets are returned with comments, then the comments must be addressed to close out issues so that records are agreed, or if agreement cannot be reached, that there is an agreement on which part is agreed and where the differences are.
If the daily crew sheets are not returned by the Employer, they will still be viewed as a contemporary record.
In evaluation of the impact of Changes on the Contract Price and Work Schedule and for preparation of claims look at the following:
Correspondence – particularly for notices, instructions from the Employer and discussions about how to effect the Change or resolve issues.
Revised drawings, specifications and procedures issued by the Employer and the related document transmittals
Minutes of meetings
Daily Reports, Weekly Reports, Monthly Reports
Daily Crew Records (Allocation Sheets) identifying resources in each crew and the specific work they were doing. If working on Changes, then this should be noted on the sheet and the resources allocated to the Change clearly identified
Progress Reports accurately showing the work completed, if possible, daily and ensure the as-built Program / Work Schedule is kept up to date. Avoid “true-ups” / periodic corrections as these will distort productivity calculations.
Weather records and the impact on performance, regardless of which Party carries weather risk. There is no allowance in the Contract Price or Work Schedule for weather risk for work delayed or changed by the Employer unless or until a Change Order is agreed.
Quality Records, particularly when there are specific inspection points.
Photographs – availability of mobile phones and tablets mean many people on site can record events and the status of completed work. Ideally these photos should be date stamped and identify the location at which they have been taken
Video – for many construction sites, time-lapse video provides a great way to identify when each activity is occurring and the impact of weather
GPS tracking of equipment coupled with Geospatial information systems can locate the exact location and time work is being completed. As these systems develop, they provide a great way of tracking work done on linear projects such as pipelines and road construction
Relational Databases recording labour, equipment and material use and identifying the activity on which they are employed.
Equipment on and off hire records and invoices for hired-in equipment
Material Orders and delivery tickets. On linear projects there is generally little tracking of stone materials and rarely is material use recorded on Daily Crew Sheets / Allocation Sheets. In order to avoid dispute, the quantity of stone used (and size/specification) should be noted in the daily records. It will then be available for use in evaluating Change
Subcontractor works should be recorded in the same way as main contractors work and subcontractor should submit their records daily to the Contractor for onward transmittal to the Employer.
Ensure that records of site office staff, equipment, offices and consumables are maintained as necessary for any extension of time claim or overhead thickening.
If you need assistance with commercial management of your contracts, contact ProFacto through the website www.profacto.ca