Construction Claims Processing
Daubersmith, Inc. | Construction Consulting

In construction, even those with the best of intentions under the most ideal circumstances find themselves involved in disputes that are not easily resolved. Disputes are fewer on projects where fair contracts, prudent designs, quality drawings and specifications, accurate cost estimates, rational schedules, suitable risk mitigation, and efficient construction operations are employed -- but even then it is rare that every request for equitable adjustment to a contract results in the issuance and execution of a mutually acceptable change order. Claims are increasingly common in today's construction process and, to avoid the considerable costs of prolonged battles and/or litigation, contractors and owners must be proficient in their respective roles of claim notice, preparation, review, validation, entitlement determination, quantification, presentation, negotiation, and resolution.

Claim Preparation & Review

One of the most important (but often not adequately dealt with) attributes of a claim is that it be understandable to those who will affect its outcome. A person, regardless of his or her degrees of equity and competence, will tend not to approve something he or she doesn't fully understand -- particularly when approval carries significant consequences. That same person, especially when faced with adversity, will also usually be hesitant to admit that he or she does not understand the issue at hand. It is therefore imperative that claims be prepared clearly, concisely, and with a very high level of certainty that the audience for which it is intended will understand it -- and be compelled to resolve it timely.

Daubersmith has the ability to prepare and objectively review claim submissions for contractors and owners, always being mindful of the goals of the client and the perspective of the opposite party. Daubersmith recognizes the importance of making claims clear and concise, to a level of detail that makes them understandable and compelling, while at the same time maintaining the ability to support the materially important concepts with well organized and highly detailed factual data.

Claim Entitlement Determination & Quantification

The task of proving or disproving entitlement, and the extent thereof, to additional compensation (usually money and/or time) for a contested scope of work can be complicated, time consuming, contentious, and emotional for the participants in a claim. Idealists maintain that claim entitlement (merit) is independent of the claim amount (quantum) and therefore the two can be determined consecutively. Experienced realists, however, know that this is seldom the case -- parties tend to argue more about the merit of a claim (or at least delay concurrence) when its quantum is large or unmeasured. To maximize the chances of timely resolving a claim, the parties must employ an objective, systematic, good-faith approach to communicating, presenting, analyzing, and determining both its merit and its magnitude -- and be compelled to achieve resolution earlier rather than later.

Daubersmith can serve contractors and owners in determining claim entitlement and the associated cost and time effects. Objective entitlement recommendations can be provided based on thorough contract document reviews and other pertinent information gathered from the parties. Likewise, Daubersmith can help the client quantify the cost and time effects of the claim by performing detailed cost and schedule analyses using industry accepted methods and state of the art analysis tools. Cost and time effects may include direct costs, indirect costs, impact costs, decreased schedule activity float, critical path schedule delay, and time related costs.

Claim Presentation & Negotiation

The most effective claim presentations are those that are understandable and delivered to the people most able and authorized to affect the claim's outcome. As with claim presentations, productive claim negotiations are those where the participants have the ability and authority to make decisions, gain a clear understanding of each other's positions, are objective in their interpretations of the contract and their analyses of the respective positions, are acting in good faith, and are compelled to achieve timely resolution.

Daubersmith knows the importance of tailoring claim presentations and negotiations to fit the specific situation and people involved. Daubersmith can be a valuable asset in assisting the client with preparation, review, and delivery of claim presentations as well as in providing negotiation support and objective, practical recommendations.