1 / 18

Contract Changes, Claims, and Supporting Documentation

Learn about contract change processes, claim submissions, and required documentation for federal highway projects. Understand the types of changed conditions and how to handle claims effectively.

mcgehee
Télécharger la présentation

Contract Changes, Claims, and Supporting Documentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Contract Changes, Claims, and Supporting Documentation Lee Potter, P.E. Assistant Division Administrator Federal Highway Administration, Wyoming Division

  2. Contract Changes • Used to make the design a better fit for actual field conditions

  3. Changed Conditions • Three Standardized Changed Condition Clauses • Differing Site Conditions (104.2.2) • Engineer-Ordered Suspensions (104.2.3) • Significant Changes In The Character Of The Work (104.2.4)

  4. Changed Conditions • Differing Site Conditions • Type I - Subsurface or latent physical conditions that differ materially from the contract • Type II - Unknown physical conditions of an unusual nature that differ from those ordinarily encountered

  5. Changed Conditions • Differing Site Conditions • Either party can identify • Engineer is to promptly investigate and determine if adjustment warranted • Timely Notice Required • One of the most frequently cited clauses in contractor requested changes !!!!!!!!!

  6. Changed Conditions • Engineer-Ordered Suspensions • Not due to a contractor’s actions • For an activity not customary to highway construction • Contractor can request compensation or time if request is in writing and follows notice procedures

  7. Changed Conditions • Significant Changes in the Character of Work • Engineer can alter the work or the quantities as necessary without invalidating the contract • If determined to be a significant change to character of work an adjustment will be made • change results in materially different work requirements • major item changes +/- 25%

  8. Contract Amendments/Claims • Entitlement-Identifies Contract Change • Impact-Identifies Effect Of Change • Cost

  9. Documentation • Clearly identify entitlement (what was encountered that was different than what is stated in the contract) • How was the contractor impacted? Was there a change in his operations, equipment needed, or time required to perform the work?

  10. Documentation • Contract changes require an independent evaluation of costs (this is the basis of negotiation with contractor) • FHWA expects an “estimate” of costs for contract change approval • Estimate can be based on existing bid items or a WYDOT developed independent cost estimate • Document negotiation (letters, email, phone calls)

  11. What is a Claim? • Formal demand for additional compensation • Money and/or time • Disputes the determination of entitlement, impact, or cost

  12. Contractor’s Responsibility • Timely Notice • Identify Entitlement • Answer the question what was the change • Identify Impact (including secondary impacts) • What was the effect of the change • Cost • Price or value of the change

  13. False Claims “A false claim is an act of knowingly making, using, or causing to be made or used a false record or statement that results in payment or approval by a Federal, State, or local government.”

  14. FHWA Involvement • FHWA would be included in contract changes for FHWA oversight projects (Notification prior to work being accomplished; verbal approval would be documented with FHWA 1365) • FHWA needs to be notified of claims on all Federal projects • Stewardship Agreement Requires FHWA concurrence in claim settlement of all projects

  15. FHWA Involvement • RE to notify FHWA Area Engineer when a contractor submits a claim under Standard Specification 105.15 • Area Engineer will work with RE to address the Contractor’s claim • Work with the contractor to get a complete claim package, but continuous negotiation with the contractor is not recommended • Being fair does not mean waiving specifications

  16. FHWA Review • Early Notification Of Claims • Basis Is State’s Responsibility • Cost Determination • May Require An Audit Of Contractor’s Costs • Administrative Settlements • Require Support and Legal Opinion that may include costs of potential litigation

  17. FHWA Review (continued) • Participation In Court Or Arbitration Judgements Greater Than Can Be Supported • FHWA Was Consulted And Concurred With Course Of Action • All Courses Of Action Were Considered • State Was Diligent

  18. FHWA Review (continued) • Federal Funds Will Not Participate In • Administrative Settlements Without Support Or Basis • Claims for anticipated profit • Claims due to impacts of other projects (each project is independent)

More Related