Construction Change Orders and Claims Flashcards
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Read the first 6 Construction Change Orders and Claims flashcards as text
The 'total cost method' for calculating a construction claim is generally considered:
Answer: A method of last resort because it assumes all cost overruns are the owner's responsibility
The total cost method calculates damages as all costs incurred minus the original bid, which is disfavored because it presumes no contractor error and ignores bid accuracy.
A construction contractor claims delay damages using the 'measured mile' approach. This method:
Answer: Compares productivity in an impacted work period to an unimpacted reference period on the same project
The measured mile compares actual productivity during the impacted period to the contractor's own unimpacted performance, providing a project-specific and credible impact measure.
Which notice requirement, if not met by a contractor, can result in waiver of a claim for additional compensation or time?
Answer: Timely written notice of claim within the period specified in the contract
Most construction contracts require written notice of a claim within a specified period after the triggering event; failure to provide timely notice may waive the claim entirely.
Which type of delay entitles a contractor to both a time extension AND additional compensation?
Answer: Compensable delay caused by owner actions
A compensable delay, caused by owner actions such as late deliverables, design errors, or access restrictions, entitles the contractor to both time and money.
A contractor submits a claim for extended general conditions costs during an owner-caused delay. An auditor should verify that the claimed costs are:
Answer: Actual time-related field overhead costs incurred during the extended period
Extended general conditions claims must be supported by actual cost records showing time-related field overhead (supervision, temporary facilities, etc.) incurred during the owner-caused delay period.
In federal construction contracting, a contractor may submit a Request for Equitable Adjustment (REA) to recover costs arising from a government-caused change. An REA differs from a certified claim in that:
Answer: An REA does not require contractor certification
An REA is an informal request for compensation that does not require the formal certification required for a certified claim under the Contract Disputes Act.