The Civil Engineering Contractor April 2019 | Page 30

INSIGHT
Qualify
In recent times, qualifications have
tended to become more formal in
nature with certain employers
requiring formal legal qualifications
for their contract administrators.
However, as with recently qualified
engineers with a lot of theory
experience, the implications of
achieving practical solutions may
only be achieved through engaging in
additional time and resources. This is
based on more practical experience
gained over time. Sometimes it only
takes a friendly negotiation and not a
fully detailed and legal brief to achieve
an amicable agreement. It should,
however, be remembered that there is
a legitimate basis for such a claim. It
is also important that any investment
in the contract administration team
should also make allowance for all
contract administrators to join
recognised organisations such as the
Institute of Construction Claims
Practitioners (ICCP), the Dispute
Resolution Board Foundation
(DRBF), and the Chartered Institute
of Arbitrators (CiArb).
Attendance by the contract
administrators to the workshops and
courses offered by these and other
similar organisations is important to
keep abreast of new developments and
maintaining a certain professionalism
within the contract administration
team and their community.
28 | CEC April 2019
Return on investment
The employer that strongly supports
the development of the contract
administrator and invests in his
contract administrators will receive
a return on the investment in the
form of a better outcome of claims
submitted. This would also apply to
the evaluation and possible defence
against claims received from other
contracting parties.
Often, claim values are exaggerated
to correct losses on projects with no
chance of success and the contract
administrator is obliged to follow
instructions to prepare such claims.
A more professional approach will
result in accurately assessed claims
and realistic expectations on the
outcome thereof. In addition, an
important factor overlooked is the
identification of chances where either
party could earn additional income or
even incur savings when identified by
the contract administrator.
The theories that apply to the
avoidance of structural failures also
apply to any justified entitlements.
Where events occur that justify any
entitlement, arguments for such must
be based on both sound contractual
and detailed foundations to receive
full entitlement. Should a justified
entitlement be overloaded with
either a cost or time entitlement,
the claim could either be rejected or
reduced to a much lower entitlement.
The same would apply to incorrect
contractual arguments or procedures
being followed, resulting in claims
then being completely rejected.
Conclusion
Structures, if they are going to
fail, may take many years to do
so. In contrast, claims can be
lost very early on in negotiations
or alternatively, may take years
to resolve. But the work of the
contract administrator remains
the foundation on which any
entitlement is built. Those claims
with a better prepared and stronger
foundation will achieve positive
results with less chance of an
embarrassing collapse when details
and arguments are tested. nn
Stefan Müller is the managing
director
of
GibConsult,
expert in contract and claims
management, and is a member
of the Institute of Construction
Claims Practitioners (MICCP).
www.civilsonline.co.za