Interpretation and Enforcement of Construction Contracts

This seminar enhances understanding of the many details of multifaceted contract documents and focuses on developing skills for making a balanced and fair interpretation and enforcement which can result in reduced cost to the owner.

Course Outline

After participating in this course, you will be able to:
• Develop your ability to make sound professional judgments as you learn more about your role and responsibilities
• Consider contractor perceptions about interpretation and enforcement issues
• Apply your knowledge of the details of construction contracts, such as “or-equal” provisions, change requests and claims, time provisions and pricing of changes
• Explain the role of the inspection authority to accept or reject
• Avoid overly strict or untimely interpretation, which often leads to contractor claims against owners - an uncomfortable situation for you as a design/construction professional
• Recognize laxity in interpretation and how it can hurt owners who end up getting less for their money’s worth

Description

Ambiguous contract documents, improper interpretations, delayed decisions and wrongful enforcement are the occurrences that bedevil construction projects and result in owners not getting full value of their money and being stuck with costly construction claims. What happens when interpretation and/or enforcement is too strict or too lax? Is there a correct balance? This seminar enhances understanding of the many details of multifaceted contract documents and focuses on developing skills for making a balanced and fair interpretation and enforcement which can result in reduced cost to the owner.

Objectives

To increase understanding of the role and responsibilities of the construction team members so that they appropriately interpret and enforce contracts.
To enable the owners to receive full value of the money and protect them from unnecessary claims by developing skills to strike the right balance between strict and lax interpretation and enforcement of contracts

Who Should Attend

Owners, contractors, engineers, architects, designers, project managers, operation managers, client service managers and contract administrators who observe, review or supervise construction contractor performance or otherwise administer construction contracts, whether in private practice or on owners’ staff. They will learn the practical principles of contract interpretation and enforcement and their role in it.

Program Outline

Faculty: 
Stephen O. Revay, FCSC, CCC, CFCC
Michael MacKay, Barrister & Solicitor

Day I

8:00      Registration and Coffee

8:30      Welcome, Introduction, Workshop Preview, Learning Outcomes and the Assessment Method

8:45      Enforcement of Contracts
              Michael MacKay
            • First principles
            • Construction contracts
            • Requirements of enforceable contracts
            • What does enforcement mean – what can the courts do for you?

10:00    Structure of Construction Contracts
              Michael MacKay
            • Building contracts
            • Types of building contracts - considered by payment structure, considered by project structure, traditional project structure,
               construction management, design/build
            • Parts of a building contract – the contract documents

10:20    Refreshments and Networking

10:40    Bids - Avoiding Interpretation and Enforcement Problems 
              Michael MacKay 
            • Introduction
            • Contents of tender package
            • Tendering contracts
            • Enforcement (judicial oversight) of the tendering process
            • Addenda
            • Bid depository
            • Bid bonds
            • Fairness of contract package
            • The "spectrum" of contract requirements
            • Advantage of a prebid conference
            • Pre-qualification
            • Local preferences
            • Bid evaluation - preventing ambiguities - technical evaluation (time, performance, monetary, environmental constraints), 
               financial evaluation

12:00    Lunch

1:00      Contract Project Administration
              Stephen O. Revay 
            • Parties to the process
            • Different project delivery mechanisms
            • Relation between the parties
            • Responsibility, risk allocation and management
            • Record Keeping
            • Contract administration: the paper trail, co-ordination, negotiations, payments, changes, inspection/quality control, project close

2:15      Workshop 
              Stephen Revay

3:00      Refreshments and Networking

3:15      Best Practices for Managing Risk in Construction Contracts
              Stephen O. Revay 
            • What should an owner be on the lookout for?
            • What should the contractor be aware of:  knowing rights and obligations
            • What should the consultant be aware of
            • Crucial factors to look for in effective contract administration 
            • Top tips for managing risk in construction contracts

4:15      Open Forum - Questions and Answers

4:30      Adjournment

Day II

8:00      Claims by Contractor – Claims by Owners
              Stephen O. Revay 
            • Restricted access/changed conditions - late and/or incomplete drawings or equipment, active interference with the contractor 
               means and methods constructive acceleration, termination and suspension
            • Contractor walks off the job - delays completion – liquidated damages
            • Contractor finishes with deficiencies – cost vs. diminished value claims against design consultants a developing trend

9:00      Communication 
              Stephen O. Revay 
              As a medium to avoid claims, to present claims and getting email under control

10:15    Refreshments and Networking

10:30    Interpretation and Enforcement of Change Requests and Claims
              Pricing the Changes - Process of Effecting Changes
            • Introduction
            • Factors affecting pricing of changes
            • Extras and changes
            • Changes in work
            • Resolving disagreements on changes
            • Payment for extras and changes: resolving disputes

12:00    Lunch
 
1:00      Interpretation of Contract Language by the Courts
              Michael MacKay
            • Ambiguity
            • Exclusion and limitation of liability
            • Notice requirements
            • Some one-sided contract provisions
            • Changes
            • Meaning of coordination requirement
            • Concealed/subsurface conditions
            • Disclaimer clause
            • Meaning of a site investigation requirement
            • Delay claims
            • Enforcement of contractual time provisions
            • Real meaning of a no-damage-for-delay clause 
            • Penalty and liquidated damages clauses

3:00      Refreshments and Networking

3:15      Workshop 
              Michael Mackay 

4:15      Open Forum - Questions and Answers

4:30      Adjournment

Day III

8:00      Bonding
              Michael MacKay
            • The surety’s role on a project
            • The bonding industry
            • The surety/principal relationship, or why the surety acts the way it does
            • The general format of bonds
            • Bid bonds
            • Purpose of a bid bond
            • Effectiveness of a bid bond
            • Collecting a bid bond
            • Performance bonds
            • The surety’s obligations under a performance bond
            • Calling on a performance bond – how and when
            • Surety’s response -- effectiveness of a performance bond
            • Labour and material payment bonds – purpose and enforcement

8:45      Insurance
              Michael MacKay
            • Insurance requirements of the contract
            • What is covered and what is not
            • Key issues in enforcing insurance rights and requirements

9:15      Open Forum - Questions and Answers

9:30      Refreshments and Networking

9:45      Damage Quantification
              Stephen O. Revay
            • Pros and cons regarding the various means of quantifying cost
            • Direct and indirect cost / Equipment ownership
            • The failings of the total cost approach

10:30    Quantification Workshop

12:00    Lunch

1:00      Understanding Delay and Productivity Claims
              Stephen O. Revay 
            • Types of delay - means and methods of analysing delay
               Factors which affect productivity, discussion on different methods of calculating  productivity claims, i.e. differential cost
               method/measured mile approach - estimated  cost/industry charts

2:30      Workshop

3:15      Refreshments and Networking

3:30      Dispute Resolution
              Strengths and weakness of alternate strategies such as negotiation – partnering -  mediation – project neutral - arbitration - litigation.
              Discussion on available strategies  during and after construction is complete. Controlling costs and advisors whilst in the  process of 
              resolving disputes

4:30      Questions and Answers and Feedback to Participants on Achievement of Learning Outcomes

Additional Details

Pre-Requisites

Certificates offered

1.8 CEU / 18 PDH

Cancellation Policy

To withdraw from a course, you must send a request, in writing, with the official receipt to our office. Fifteen or more business days in advance: full refund less $50.00 administration charge. Five to fifteen business days in advance: non-refundable credit of equal value for any future EPIC seminar within one year. Credits are transferable within your organization. In case of an unexpected event occurring after this time, you may send someone else to take your place without any additional cost.

Map & Reviews

EPIC Educational Program Innovations Center
[ View Provider's Profile ]

Future Inns Halifax
30 Fairfax Drive
Halifax, NS
Canada   B3S 1P1

Reviews

 

This course has not yet been rated by one of our members.

If you have taken a course through this vendor please log into your account and leave feedback for this vendor. You will be helping ensure our members get directed to the best training facilities.

Here are some reviews of the training vendor.

   

Would have liked more interactive problem solving.

Reviewed by Allen A. 2011