Join ASCE's Committee for Claim Reduction Management for an engaging workshop on Alternative Delivery Projects.
Reducing claims is crucial for civil engineers and all parties involved in Alternative Delivery Projects (ADPs) to safeguard against financial setbacks, uphold a strong professional reputation, avoid project delays, and nurture constructive relationships within project teams.
The Importance of Alternative Delivery Context
In alternative delivery methods, risk allocation differs significantly from traditional design-bid-build projects. It’s essential to grasp these unique risk allocations, allowing them to proactively address potential disputes. In this environment, claims can be particularly intricate, but by focusing on reducing them, civil engineers play a vital role in facilitating that projects are completed on time and within budget, ultimately fostering a more cooperative and productive industry atmosphere.
Professional and project benefits
- Better Contractual Clarity: A clear understanding of the contract language, which is often more complex in alternative delivery, helps engineers avoid disputes rooted in misinterpretation. This starts with the teaming agreement and follows through the contract with the contractor and owner.
- Improved Collaboration and Communication: Alternative delivery methods break down communication silos between designers and contractors, leading to fewer misunderstandings that often cause claims.
- Increased Risk Mitigation: Early and continuous involvement of engineers allows for proactive risk identification and mitigation, which is more effective than the reactive approach in traditional design-bid-build projects.
- Enhanced Project Outcomes: By addressing potential problems during the procurement and then design phase through collaboration, the project team can avoid issues that would lead to claims and disputes during construction.
- Stronger Reputation and Professional Standing: Successfully managing claims reduces personal and firm liability. It builds a reputation for reliability and competence, which can lead to more opportunities and trust with clients.
- Greater Efficiency and Speed: Integrated teams can work more efficiently, leading to faster project delivery and a quicker path to success, further minimizing the window for potential disputes.
- Better Contractual Clarity: A clear understanding of the contract language, which is often more complex in alternative delivery, helps engineers avoid disputes rooted in misinterpretation.
How engineers and project stakeholders achieve these benefits
- Develop Strong Contract Understanding: Engineers must understand the specifics of the contract to avoid claims that arise from misinterpreting contractual obligations or unclear language.
- Practice Proactive Problem-Solving: By leveraging their expertise and collaborating with other project stakeholders, engineers can develop and implement effective solutions to unforeseen issues.
- Implement Robust Risk Management: Proactive risk management programs are crucial for identifying potential issues before they become claims. This includes making "go/no-go" decisions and improving internal processes.
- Improve Planning and Coordination: Integrating sustainable management practices can lead to better overall project planning and coordination among all parties, reducing the likelihood of claims.
Read more helpful insights from the committee’s Claim Reduction series on the Civil Engineering Source and on our website ASCE Insurance | CCRM Documents.
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