Construction claims: Part 2: Accounting for financial impact

Most organizations eventually experience a construction claim on a project, whether from a disaster, subcontractor failure, contractor non-performance, scope disagreements or quality. Every project is unique and every claim is unique. Therefore, the processes and procedures required to ensure a cost effective and efficient resolution must be tailored to the situation. 

Part 2: Accounting for financial impact

This session focused on the benefits of centralizing project correspondence once a claim is identified, generating a claim and documenting the actual costs of a claim. Presenters reviewed how to work with a scheduling expert to quantify the cost of any schedule extensions or project acceleration. Also reviewed were basic procedures to generate the cost of a claim, document claim costs and how to work directly with the scheduling expert in developing the delay and/or acceleration portion of the claim. We provided an outline of what procedures are necessary to understand, quantify the potential financial impact and generate a claim, as well as what not to include in the claim and the procedures you will need to perform when reviewing counter-claim documentation. 

Learning objectives:
  • Learn how to centralize correspondence and prepare or generate a claim
  • Understand how to work with a scheduling expert to quantify any delay and/or acceleration claim
  • Learn to quantify the extent of the financial impact to the current project profit
  • Learn how to account, prepare and document the construction claim costs
  • Understand how to analyze and test a counter claim calculation

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