Ibbs_Lectures 26-27_11 23 11 - CE 167 Lectures 26-27...

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CE 167 Lectures 26-27 Changes, Claims, Dispute Resolution Professor William Ibbs 1
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Breach of Contract (Bartholomew 13) Breach of contract Privity Materiality Contract wording Industry standards Foreseeability Disclaimers 2
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Breach of Contract Anticipatory Breach Examples of Breach Failure to make payment Interference with performance Spearin Doctrine Misrepresentation Nondisclosure of superior knowledge Improper termination 3
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Contract Changes (Bartholomew 14) Change regularly happens 1. Will owner have the right to unilaterally make changes to the work? 2. Will contractor be compelled to carry out changes by the owner? 3. After performing changed work directed by owner, will contractor be compensated? 4
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Contract Changes Change Order: directive (written or oral) from owner to designated representative to make changes in work within the general scope of work 1. Changing details of original work 2. Adding new work 3. Deleting original work 4. Change method of performance of work 5. Acceleration 6. Slowing rate at which work may be performed 7. Change conditions on furnished materials 5
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Change Order Causes Unforeseen field conditions Correction of design discrepancies, errors or omissions in contract documents Owner-requested changes, either by design criteria, scope of work, or project objectives Completion date changes for reasons unrelated to the construction process Changes in building code interpretations, or other public authority requirements 6
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CO Process Process should be spelled out in contract Notification Written proposal and acceptance Designated authorized agents to sign and accept COs Date and sign Documentation Contractor keeps accurate daily records of labor and material allocated to change Reasonable Time Frame Possibly OK to proceed on ‘time and materials’ basis 7
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Pricing of Change Order When did change occur? Before installation During installation = 5-15% higher labor cost (RSMeans 2001 p. 585) 8
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Loss of Productivity 9 RS Means 2001, p. 587
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Contract Changes Cardinal Change Price and Time Adjustments Forward pricing Retrospective pricing Cost Categories Proximate costs = direct labor, materials, etc. incurred at the
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This note was uploaded on 01/06/2012 for the course CIVIL AND 167 taught by Professor Ibbs during the Fall '11 term at University of California, Berkeley.

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Ibbs_Lectures 26-27_11 23 11 - CE 167 Lectures 26-27...

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