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Claims Preparation & Resolution

Contractors frequently incur additional costs to contracts which are the result of:

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b) Differing site conditions

c) Delays

d) Changed conditions

e) Defective specifications

f) Quantity variations

Many times when contractors incur additional costs due to one of the above conditions, the issues are complicated and difficult to quantify and adequately explain. A claim presented clearly, concisely and correctly can speed up the review process. Portraying the contractor's position in a manner which can easily be followed by those directly involved in the contract and those frequently called in to review claims (which are not involved in the day to day operations of the contract) can speed up the resolution of the claim. It is important that a contractor clearly explain its position, costs and the contractual authority in which the contractor is relying upon to support its position.

If it appears that a claim will be complicated, a cost accounting plan should be developed to adequately track the costs which will be included in the claim. Sometimes the actual affect of the cost increase cannot be measured using standard accounting procedures. For example, lost productivity cannot be measured using standard accounting procedures. Analyses have to be performed to determine the factors causing the lost productivity and the affects.

CECA's claims specialists can assist in these special functions. Under certain circumstances, the costs of preparing a claim are recoverable costs.

 

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