Constructor - January/February 2018 - 25

De-Constructing
Delays and Disruptions
TASK FORCE TACKLES AN EVER-INCREASING PROBLEM

BY KATIE KUEHNER-HEBERT
AS THE COSTS TO resolve delays and dis-

ruptions on construction projects reach
new heights, contractors can seek guidance from a white paper recently published by the AGC Delay and Disruption
Task Force, a group comprised of 11
members appointed in 2016 by then-AGC
President Mark Knight. The paper details
the nature of the problem of delays and
disruptions and practical ways to limit the
scope. Knight's goals were to raise awareness of the problem, to help everyone manage their ongoing risk of time-consuming
and costly disputes, and to spur discussion
of new and better ways of avoiding and
resolving such disputes.

"How to Avoid and Resolve Disputes
over Delays and Disruptions: Practical
Suggestions and a Call for Further
Discussion" can be found in its entirety
at https://www.nxtbook.com/naylor/
NGCS/NGCWPaper/index.php#/0
"The task force was created following
a number of conversations within the AGC
among member firms who all shared a
frustration with the way in which delay
and disruption claims were handled and
resulted," says the group's chair, David
Hecker, group general counsel for the
Kiewit Corp. in Omaha, Nebraska, a member of multiple AGC chapters.
The frustrations focused generally on
how long the issues took to resolve, how
expensive it was to resolve the issues
due to the involvement of damages and
scheduling consultants, how unsatisfactory many resolutions have been for both


@Constr
uctor Ma g

parties after going through the long and
expensive process, Hecker says.
"The task force wanted to identify ways
to help the parties resolve these very real
issues more efficiently and effectively," he
says.
When the task force first met, the members examined delay and disruption on
construction projects from "a 50,000-foot
perspective," noting that both public and
private projects suffered delay and disruption and that the contract terms addressing delay and disruption varied widely,
says task force member, Carole Bionda,
vice president at Nova Group Inc. in Napa,
California, an AGC of California member.
"Given the breadth of the problem, the
task order determined that, at this particular time, the best approach would be
to educate AGC's members and the owners
and contacting authorities of the problem,
and to suggest best practices to mitigate
delay and disruption," Bionda says.
There is no one single fix to the challenges presented by projects which significant delay and disruption issues, Hecker
says. Appropriate resolution depends upon
a variety of factors, including the size and
complexity of the project and the claim,
the ability of the owner and the contractor to work together to resolve issues and
the availability of relevant and useful cost,
schedule and other project data.
"The issue wasn't that the task force
sought to avoid delays and disruptions -
the task force's assumption was that such
issues are to some extent inevitable in
this industry," he says. "The task force's
focus was to try and improve the process

for resolving disputes over delays and disruptions when they do occur."
Some of the best practices outlined in the
white paper include how contractors can
work with their clients to mitigate delays
and disruptions, including holding "kick-off
meetings" and "schedule risk workshops" -
and what contractors should do on their own,
including providing project managers with
"cheat sheets" that include triggers for notifying clients about delays and disruptions.
The white paper also details best
practices on drafting contract terms and
conditions, providing notice of an issue,
tracking and/or estimating additional costs
and quantities, sharing the cost of uncertainty, and seeking contractual provisions
expressly reserving their right to equitable
adjustments for any delay or disruption that
the client causes, particularly where the
impact is a cumulative one resulting, for
example, from multiple changes orders.
"It is possible that additional work will be
done in the future to make recommendations
on specific issues and challenges contractors and owners face related to delay and
disruption claims - such as how to measure
impacts to labor productivity or how to assess
and evaluate project delay using appropriate
schedule methodology," Hecker says.
There may be an uptick in interest or
concern on a given issues expressed by
members at meeting and/or inquiries made
of AGC staff, Bionda says.
"AGC rightly prides itself on addressing
the needs and concerns of its members, and
its staff members are able to gauge relatively
quickly if an issue or concern resonates with
a number of members," she says.
◆

J A N U A R Y / F E B R U A R Y 2 0 1 8 | www.constructormagazine.com 25


https://www.nxtbook.com/naylor/NGCS/NGCWPaper/index.php#/0 http://www.constructormagazine.com

Table of Contents for the Digital Edition of Constructor - January/February 2018

Editor’s Note
President’s Message
CEO’s Letter
Come for the Puppies, Stay for the Mission
Simonson Says
2018 Regulatory Update: AGC Leaves No Stone Unturned
De-Constructing Delays and Disruptions: Task Force Tackles an Ever-Increasing Problem
Workforce Development Is Priority One
Going Up
Technology Toolbox
Improving Safety With Building Information Modeling Technology
Book Shelf
The 99th Annual AGC Convention: Celebrating 100 Years of Construction
Member and Chapter News
Overcoming Permit Delays
2018 Service & Supply Buyers’ Guide – a Special Advertising Section
Products & Services Marketplace
Index to Advertisers
Constructor - January/February 2018 - Intro
Constructor - January/February 2018 - cover1
Constructor - January/February 2018 - cover2
Constructor - January/February 2018 - 3
Constructor - January/February 2018 - 4
Constructor - January/February 2018 - 5
Constructor - January/February 2018 - 6
Constructor - January/February 2018 - Editor’s Note
Constructor - January/February 2018 - 8
Constructor - January/February 2018 - President’s Message
Constructor - January/February 2018 - 10
Constructor - January/February 2018 - CEO’s Letter
Constructor - January/February 2018 - Come for the Puppies, Stay for the Mission
Constructor - January/February 2018 - 13
Constructor - January/February 2018 - 14
Constructor - January/February 2018 - 15
Constructor - January/February 2018 - 16
Constructor - January/February 2018 - Simonson Says
Constructor - January/February 2018 - 18
Constructor - January/February 2018 - 2018 Regulatory Update: AGC Leaves No Stone Unturned
Constructor - January/February 2018 - 20
Constructor - January/February 2018 - 21
Constructor - January/February 2018 - 22
Constructor - January/February 2018 - 23
Constructor - January/February 2018 - 24
Constructor - January/February 2018 - De-Constructing Delays and Disruptions: Task Force Tackles an Ever-Increasing Problem
Constructor - January/February 2018 - 26
Constructor - January/February 2018 - Workforce Development Is Priority One
Constructor - January/February 2018 - Going Up
Constructor - January/February 2018 - 29
Constructor - January/February 2018 - 30
Constructor - January/February 2018 - 31
Constructor - January/February 2018 - 32
Constructor - January/February 2018 - 33
Constructor - January/February 2018 - 34
Constructor - January/February 2018 - Technology Toolbox
Constructor - January/February 2018 - Improving Safety With Building Information Modeling Technology
Constructor - January/February 2018 - 37
Constructor - January/February 2018 - 38
Constructor - January/February 2018 - 39
Constructor - January/February 2018 - 40
Constructor - January/February 2018 - Book Shelf
Constructor - January/February 2018 - 42
Constructor - January/February 2018 - The 99th Annual AGC Convention: Celebrating 100 Years of Construction
Constructor - January/February 2018 - 44
Constructor - January/February 2018 - Member and Chapter News
Constructor - January/February 2018 - Overcoming Permit Delays
Constructor - January/February 2018 - 47
Constructor - January/February 2018 - 48
Constructor - January/February 2018 - 2018 Service & Supply Buyers’ Guide – a Special Advertising Section
Constructor - January/February 2018 - 50
Constructor - January/February 2018 - 51
Constructor - January/February 2018 - 52
Constructor - January/February 2018 - 53
Constructor - January/February 2018 - 54
Constructor - January/February 2018 - 55
Constructor - January/February 2018 - 56
Constructor - January/February 2018 - 57
Constructor - January/February 2018 - 58
Constructor - January/February 2018 - 59
Constructor - January/February 2018 - 60
Constructor - January/February 2018 - 61
Constructor - January/February 2018 - 62
Constructor - January/February 2018 - 63
Constructor - January/February 2018 - 64
Constructor - January/February 2018 - 65
Constructor - January/February 2018 - 66
Constructor - January/February 2018 - 67
Constructor - January/February 2018 - Products & Services Marketplace
Constructor - January/February 2018 - 69
Constructor - January/February 2018 - Index to Advertisers
Constructor - January/February 2018 - cover3
Constructor - January/February 2018 - cover4
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https://www.nxtbook.com/naylor/NGCS/NGCS0516
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https://www.nxtbook.com/naylor/NGCS/NGCS0216
https://www.nxtbook.com/naylor/NGCS/NGCS0116
https://www.nxtbook.com/naylor/NGCS/NGCS0615
https://www.nxtbook.com/naylor/NGCS/NGCS0515
https://www.nxtbook.com/naylor/NGCS/NGCS0415
https://www.nxtbook.com/naylor/NGCS/NGCS0315
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