Claims – Problems
The contractual jurisdiction of Claims has worldwide high demands regarding the proof of their related causes & effects generating a disturbance or even a loss of productivity in the Project performance. Supporting documents of the adequate causally relationship between cause and effect are the key for claims proof (burden of proof) and subsequently the key for their successfully enforcement.
Although, if the cause for a disturbed Project Performance is acknowledged by the project stakeholders the related claims regarding involved cost- and time effects can not be clarified amicably mostly (disturbance period & influence on completion time & -date) due to:
- The relationship between cost Planning and execution Planning is not or not adequately documented at or during Contract Agreement (Plan / Baseline).
- Changes of the Planned execution (Actual vs. Baseline) are not properly presented in content & causation.
- Recording / tracking of the actual Project execution is devised incomplete or without the specific reference to the Plan / Baseline.
- Disturbances are not or not adequately acknowledged and subsequently notified in time.
- During execution documents for the disturbance causes are presented but not the documents for the related effects.
- Impacts on internal disturbances and accelerations are mostly unconsidered.
- In case of judicial review the substantiations for the disturbance causes can be presented but not the substantiations for the related effects.
Claims – GTC Solution
The GTC System delivers through the digitized and facts based monthly Project Performance Control and the related cost- and time variances the Basis for the solution of the mentioned claims problems.
Further, the documention generated with the GTC System over the Project life time delivers a very valuable support for the strategical management for the financial Project result through the following issues:
- Enforcement of own Claims / Disputes and Defense of Counter Claims
- Enforcement of Extension of Time Claims (Contractor vs. Client)
- Defense of Liquidated Damages Claims regarding delays (Client vs. Contractor)
- Achievement of Project-Completion Certificate and related issues (e. g. final statement / invoice and related payment, transfer of risks, start of warranty period, return of bonds, closure of Letter of Credits & insurances, Project closure, etc.)
- Lessons Learned (Quality Assurance / Quality Control) for accomplished-, actual- & future Projects
- Project Suspension / -Termination cases (if applicable)