Learn what is needed to accurately and persuasively price a price escalation claim.
Delays on construction projects are inevitable. And, as such, so are the damages stemming from those delays. While some of these damages are straightforward calculations, others, such as cost escalation damages, are less so. So, what is a construction contract escalation clause, and how does it apply to your project? Owners will learn where and how their contracts allow recovery for escalation claims, and what the contractor must prove to be entitled to that recovery. This will enable owners to understand what they should pay and what they shouldn’t pay. Contractors, CMs, attorneys, the consultants and accountants that advise them will learn what is needed to accurately and persuasively price a price escalation claim. The focus is on the hard topics – the legitimate escalation damages associated with delay, and the damages often claimed that are not legitimate. Additionally, some case studies will be provided to show exactly how these clauses are interpreted and the damages for escalation calculated.
Learning Objectives
- You will be able to define what cost escalation is.
- You will be able to describe the different types of cost escalation that may occur on a construction project.
- You will be able to explain the scenarios in which a contractor may be able to recover for cost escalation claims.
- You will be able to review how to calculate the damages due in cost escalation claims.
Agenda
Definitions
- Critical Path
- Labor Escalation
- Material Escalation
Escalation Contract Clauses
- Examples of Contract Clauses for Labor Escalation - Both Effective and Ineffective
- Examples of Contract Clauses for Material Escalation - Both Effective and Ineffective
- Situations in Which Escalation Is Commonly Experienced
Demonstrating Delay to Recover
- Why Must a Contractor Demonstrate Delay to Recover Escalation Damages
- Prospective Delay Analysis
- Retrospective Delay Analysis
Calculating Escalation Damages Case Study
- Labor Escalation Calculation
- Material Escalation Calculation
Questions and Answers
Speakers
Bill Haydt, Esq.,
Trauner Consulting Services, Inc.- Director and shareholder at Trauner Consulting Services, Inc.
- Qualified in federal court as an expert in construction scheduling and delay analysis
- Expertise lies in the areas of construction claims preparation and evaluation, development and review of critical path method (CPM) schedules, delay analysis, training, and dispute resolution
- Provided CPM scheduling services to contractors and owners on a variety of projects, including bridge, highway, educational, and hotel projects
- Presented seminars, webinars, and construction claims related presentations for private firms and public agencies across the country
- J.D. degree, Temple University, James E. Beasley School of Law; B.A. degrees in civil engineering and in architectural engineering, Drexel University
- Can be contacted at Bill.haydt@traunerconsulting.com or 215-814-6400
Who Should Attend
This live webinar is designed for attorneys, presidents, vice presidents, owners, project managers, engineers, contract managers, property and facilities managers, principals, real estate developers, and lenders.
