Construction Contract Administration

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The Construction Contract Administration Knowledge Community (CCA) has been established to help our members better understand the issues, actions and resultant impact of the decisions required in this often neglected part of Project Delivery. It is our goal to provide clear answers to issues of concern to the Institute’s membership and share case studies and best practices. We further hope to provide guidance and direction in developing guidelines for new and evolving approaches to Project Delivery as well as guidance in the continuing education of our emerging young professionals.

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Construction Claims

  • 1.  Construction Claims

    Posted 01-26-2017 12:08

    If the architect is listed as the Initial Decision Maker, and receives a claim from the contractor against the owner, who is the party that the architect responds to (i.e. addresses the letter to)? I have read our contract with the owner and the General Conditions and neither explicitly say who to respond to. They just talk about who the claim is submitted to and who reviews, essentially. On one hand I can see the architect would send the response to the owner in giving our recommendation of the claim. On the other hand, if the contractor is required to submit the claim to the architect, then the response should be to the contractor. Any insight is appreciated.



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    Sharon Day AIA
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  • 2.  RE: Construction Claims

    Posted 01-27-2017 17:55

    Hope this helps.

     

    Excerpt from The Project Resource Manual, CSI Manual of Practice

     

    ...When all the documentation has been presented, contract documents reviewed, necessary testing performed, and special  observations conducted and analyzed, the A/E can evaluate the claim and render a decision in writing to both parties. If either party takes exception to the A/E's decision, the documentation and findings of the A/E can be considered in negotiating a compromise solution or settlement. When resolution is reached, a change order may be issued to reflect the terms of the settlement.

     

    Thank You,

     

    Reynaldo Royo, AIA, CDT

    Senior Associate

    Architecture International, Ltd.

     ai 

    225 Miller Avenue

    Mill Valley, California  94941 USA

    415-381-2074 t.

    rroyo@arch-intl.com

    www.arch-intl.com

     

     




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  • 3.  RE: Construction Claims

    Posted 01-27-2017 17:55
    Seems like proper practice would be to respond directly to the party making the claim with a copy to the other party notifying them of your decision.  Everyone will and should know sooner or later, and should receive the notification so that the next stage of review, claim, mediation, etc. can begin within the required time frames.

    ------------------------------
    Arlen Solochek FAIA
    Associate Vice Chancellor, Capital Planning and Special Projects
    Maricopa Community College
    Tempe AZ
    Arlen.Solochek@domail.maricopa.edu
    ------------------------------

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  • 4.  RE: Construction Claims

    Posted 01-27-2017 18:25
    As the owner Agent you would respond to the Contractor after you discuss the action with owner.

    David R. DeFilippo AIA
    617.276.7916
    Sent from my iPhone


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  • 5.  RE: Construction Claims

    Posted 02-01-2017 09:10

    Use of term, "Owner's Agent",

     

    Please be aware that nothing in the AIA documents establishes an agency relationship by the architect with the owner. Accordingly, you should never refer to yourself as an agent of the owner. An agency relationship goes beyond the standard of care unless you have contracted to provide services as an agent.

     

     

    JAMES B. ATKINS FAIA, FKIA

    PRESIDENT

    ATKINS CONSULTING SOLUTIONS

    7139 BRIARMEADOW DR.

    DALLAS, TEXAS 75230

    214.649.4134  cell

    214.691.0061  office

    jim@atkinscs.com

    www.atkinscs.com

     

    QUALITY, CREDIBILITY, EXPERIENCE

     

    PRIVILEGED/CONFIDENTIAL INFORMATION MAY BE CONTAINED IN THIS MESSAGE. IF YOU ARE NOT THE INTENDED RECIPIENT, YOU MUST NOT COPY, DISTRIBUTE OR USE IT FOR ANY PURPOSE, NOR DISCLOSE ITS CONTENTS TO ANY OTHER PERSON. PLEASE DELETE THE EMAIL AND NOTIFY ATKINS CONSULTING SOLUTIONS IMMEDIATELY IF YOU RECEIVE THIS IN ERROR.

     

     




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  • 6.  RE: Construction Claims

    Posted 01-27-2017 19:25

    Sharon:
    The answer to your question is:

    • Your response should be addressed to the owner, referencing the claim with a copy to the contractor. You should be clear as to why you are accepting your rejecting. Be precise in citing all contract documents.

    Hope this answers your question.

    Regards,

     

    Signature

    Email Signature

     

     

     

     




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  • 7.  RE: Construction Claims

    Posted 01-27-2017 19:40
    I agree with Reynaldo Royo.  The Construction Contract is between the Contractor and the Owner.  The Architect is responsible for rendering an opinion regarding the validity of the claim.  However, since the Architect is not a party to the Construction Contract the final decision is subject to the agreement of the parties.  Therefore, it is appropriate for the Architect's opinion to be shared with all of the parties.  In other words, both the Owner and the Contractor should receive the letter.

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    David Brotman FAIA
    Past AIA Regional Director
    Malibu CA
    ------------------------------

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  • 8.  RE: Construction Claims

    Posted 01-27-2017 19:48

    In any situation involving additional money coming from or going to the Contractor and or Owner it would be advisable to always reply to BOTH parties, not just one, regardless of what any AIA form might indicate.  Otherwise, you're bound to irritate any omitted party and also make it harder for the parties to come to an agreement.  When in doubt, involve all parties in such a situation.

     

    All the best,

     

    Rand Soellner  Architect     ArCH /NCARB /LHI /MA Arch

     

    .HOME  ARCHITECTS ®            1. 8 2 8 . 2 6 9 . 9 0 4 6  ..

     

    Rand@HomeArchitects.com     |      www.HomeArchitects.com

    Home Architect,PLLC NC9266/52666 SC6793 FLAR9264 WA9798 TN105028

     




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  • 9.  RE: Construction Claims

    Posted 01-28-2017 19:29

    Sharon:
    The answer to your question is:

    • Your response should be addressed to the owner, referencing the claim with a copy to the contractor. You should be clear as to why you are accepting your rejecting. Be precise in citing all contract documents.

    Hope this answers your question.

    Regards,

    ------------------------------
    Burton L. Roslyn, FAIA
    President
    Roslyn Consultants, LLC
    Roslyn Heights, New York
    ------------------------------

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  • 10.  RE: Construction Claims

    Posted 01-31-2017 09:11
    Thank you all for the responses. My original inquiry did not note that I understand at the end of the day all parties will be notified in one form or another, whether with the letter addressed to them or by CC. It has been interesting to see the varied responses showing the varied opinions. In essence we are all saying the same thing in that all parties should be notified, but it shows that even with a good set of General Condition and Contract verbiage, the nuances of the claims process can be interpreted different ways sometimes. My Type A brain can get wrapped up in minutia of procedures (for good reason most of the time), but sometimes you need to take a step back and think a little broader.

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    Sharon Day AIA
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