• Slide title

    Contract and Claims Management

    Button
  • Slide title

    Efficient claims preparation and negotiation

    Button
  • Slide title

    Comprehensive documenting of all claims

    Button

GibConsult are experts in all aspects of projects, contract and claims management for our clients in the construction, engineering and medium to large infrastructure
industries internationally.

Successfully planning and executing complex, large-scale projects is a challenging task without the additional risk associated with contract claims.
At GibConsult we identify chances and risks associated with potential claims both in defending against and upholding of claims. The commercial viability of our clients’ projects is thereby ensured.



Our proactive, preventative approach assists in reducing risks or management of claims, discrepancies, disputes and conflicts. In comparison to expensive, time-consuming legal action, our experience confirms this is the more amicable and cost-effective solution for all involved parties



We recognise, prevent and resolve the consequences of such risks, specialising in:

Efficient project execution

Less disturbance within the
project progress

Comprehensive project documentation

Structure projects in a
process-oriented manner

GibConsult Insights

By Annette Muller 11 Jun, 2021
Software can only interpret data which it is given. If this data is inaccurate the outcome will be inaccurate. This is when things become “hard on the software” , writes Stefan Müller. The software implemented supports the project from the early tender stage right through to the project wrap. The information gained over the period of the project can be evaluated and a “lesson learned” report generated to be taken into consideration for future projects. This is the way that software is marketed generally and is also purchased for projects. Reality, however, shows a slightly different picture, in that software still depends on external inputs which need to be delivered by the operator. Different sections of a project need different types of software varying from time management (scheduling) to commercial management (accounting) and lastly document management (data). In general, the time management software and distribution can be considered the more efficient of the three as there is very little room for interpretation, with changes to design being well tracked. The interpretation and “influence” of software outcomes tend to occur more often with the time and cost effects of the project. When considering the present two well-known Medupi and Kusile power station projects, the issues that come to mind immediately is that the projects are behind schedule and cost more than allowed for in budget. Accurate and realistic time input Each contractor, when signing a contract on any project, is required to submit a time schedule clearly showing all activities and durations which will form the so-called “baseline” schedule. This schedule is generated using standard industry software usually also specified in the contract agreement. Once approved by the client the progress of the contractor will be monitored both by client and contractor, to ensure the milestones and completion can be achieved. In some cases, the baseline schedule is unrealistic and inaccurate, and despite this, the client still approves the schedule. Then, should delays occur, being able to demonstrate the effect of delays becomes difficult. This usually results in data being “interpreted” differently by both parties and in some cases may even result in on aggrieved party seeking recourse via the dispute process. Controlling costs The software will produce a “manipulated” result, not necessarily incorrect or false but would not stand up against forensic analysis. As any computer literate person knows, any software program developed will stimulate the development of further analysis software tool to analyse the data from the original software program. This in turn, in most cases, can also be open to contradictory interpretation. Therefore, firstly the information used to compile the first project schedule (baseline) is to be as accurate and realistic as possible. Then the daily, weekly and monthly data must be accurately recorded and captured, so when a report is generated it will reflect the true progress of the project. As with the scheduling software, there are various acceptable cost controlling and accounting software packages. The contract agreement does not necessarily prescribe which software package to use, as this is left entirely to the contractor. The running costs of the project need to be accurately captured monthly in such a way that the daily costs can also be substantiated when needed. The actual costs should be attributed to a specific activity. When submitting the tender price, contractors are obliged to submit their pricing in a format supplied by the client. This format usually does not give sufficient breakdown of the actual costs and in claiming any additional costs there is an inherent difficulty in proving the actual costs of a delay. The hard facts are those that leave little room for interpretation. Once an event occurs where the contractor would be entitled to additional time and costs it is of paramount that this be substantiated by hard facts. These hard facts are based on the actual time taken to complete an activity; being able to show the actual costs makes it so much easier to compensate a contractor for any such occurrence. Hard facts Both the Medupi and Kusile power projects started without any of the parties paying attention to capturing and demonstrating “hard facts.” This has resulted in difficulties faced by all parties in terms of negotiating amicable settlement concerning the delays and additional costs that have occurred since the start of both projects. Bear in mind that projects of this magnitude in the international arena also have the same issues concerning time delays and additional unforeseen costs. This is also reflected in the increase and demand for qualified and experienced time planners, commercial managers and contract administrators. The increase in demand can be mainly attributed to tighter project durations and budget restrictions. Unfortunately these demands do not result in any sympathy for contractors and should they incur any delays or additional costs it, it is their responsibility to demonstrate this. The data regularly captured and archived in any software will always be valid, irrespective of the software as the software can only interpret that which it is given and should this not be accurate the outcome will also not be accurate. Hard facts will always be needed to demonstrate any entitlement, irrespective of the software used. Therefore contractors will have to seriously consider the hard facts before going to software! Stefan Müller is managing director of GibConsult, specialist in contract and claims administration.
By Annette Muller 08 Jun, 2021
Construction projects, like holidays, require planning and preparation to be carried out early enough. Accordingly, costs will be lower and it will allow for a more proactive schedule needing fewer constant changes L ooking back at the past holiday season, a very interesting observation can be made. Many begin to plan their holiday as early as possible, with some holidaymakers even booking the same accommodation for the next year’s holiday season before departing. Others will begin planning around June/July for the year-end. A small group of holidaymakers will leave it until November/early December and then rush around trying to find suitable accommodation, amazed that their choices are limited. This compares to the last-minute pressure starts that seem to be the order of the day. Much the same as the last-minute traveller who leaves straight after work and drives the entire distance with only fuel stops, arriving with the family ‘gatvol’ (meaning, fed up). This family is already preparing for the long slog back home with some trepidation, and will not unwind and enjoy the holiday as much as the well-planned holidaymakers. Groundwork In preparing for a holiday, a destination is sought that would cater for the requirements of the family, be it for an active holiday or the relaxing type. Activities are planned daily, including some alternatives should the weather not be conducive to specific activities. In the construction industry, a project will have (or should have) a detailed scope of work, which requires the contractor to then draft a planning schedule to demonstrate to the client that the work can be completed within a certain time frame. However, things will not always go as planned, so the contractor allows for spare time — known as a float — to be included in the schedule. In the Journal of Strategic Contracting and Negotiation (2015), a significant factor identified for the success of a project is when more communication takes place between the various stakeholders during the scoping stage, compared to unsuccessful projects where less time is spent on scoping than on execution. Although this survey applied to the oil and gas industry, there is no reason to doubt a similar outcome in the construction industry. Therefore, if you know the destination, it becomes more manageable to plan the journey — this would also apply to the construction industry. Knowing the exact scope would allow the contractor to plan and price the work with greater accuracy. Implementation Travelling to a holiday destination with children, one question is always asked, ‘’How far do we still have to go?” This question is a result of the children not actually knowing the travel time and distance, as they were not shown a detailed travel plan indicating fuel stops, food breaks, and overnight stops. If they had more details of the travel plan, they could have looked out of the window and determined how far they still need to travel. The same applies to construction projects where the journey does not seem to follow the planned schedule as new activities and scope keep popping up. This may be the result of another issue identified in the abovementioned journal, where successful projects have a large number of stakeholders engaged in project scoping, whereas unsuccessful projects restrict the number of team members to be involved in the scoping of a project. Prudence Certain holidaymakers will arrive rested and relaxed, because the journey was well planned and communicated within the group, compared to the last-minute holidaymakers who paid a premium for making last-minute plans and were basically forced to accept what was offered. Construction projects are very similar. The better prepared and planned projects will inevitably also be the more successful projects. Therefore, it would be prudent to determine exactly what the client expects before signing a contract. Also, include all stakeholders so that as many risks as possible can be identified and addressed during the discussions that take place before contracts are signed. Once the contract has been signed, the unpleasantness of attempting to find an amicable solution for work that was not envisaged or was not interpreted correctly becomes an issue, resulting in the souring of relationships, which could have been avoided. Let us strive for more relaxed, well-communicated and successful projects for all in 2017. Stefan Müller is the managing director of GibConsult and a member of the Institute of Construction Claims Practitioners (MICCP).
By Annette Müller 20 May, 2021
The risks in having construction claims recognised and accepted can be substantially reduced through proactive contract administration, whereby reliable records and documentation are generated as the event occurs. In modern-day team sports such as cricket and rugby, we have an on-the-pitch umpire or referee, or as in the case of cricket, two umpires. It is expected of the umpires to make on-field decisions regarding events that occur on the pitch in a fair and just manner. However, due to the complexities during the event, it is not always possible for the umpire to make a fair and just decision on the event and he will then refer to the so-called television referee. The television referee will study all the available information recorded in both slow motion and real time to make a fair and just decision. The same situation occurs on construction projects when claims for both time and money are being submitted for a fair and just decision by the client. The contractor learns that the claims submitted are being scrutinised in the finest detail to either reject or to minimise the settlement value of the claim. The information available to the television referee will come from strategically placed cameras and camera operators. Should one of the strategic cameras have been unable to record the event, then the decision will be based on the available information and will probably not be to the satisfaction of both players and fans. The television referee or an arbitrator make their decisions based solely on the facts reflected in either the film recording in the case of the television referee, or from the detailed documents submitted by the contractor in the case of the construction claims. It is therefore understood that it is vital to submit all relevant documents when submitting a claim. The risks experienced by most contractors in having claims recognised and accepted can be substantially reduced through proactive contract administration, whereby reliable records and documentation are generated as the event occurs. Preparing the claim In preparing his or her claim, the contractor will correlate all information pertinent in support of the claim, whether it be for an extension of time and/or money. As with the television referee, the event leading to the claim to be drafted has passed. Thus, only the recorded information in the form of correspondence, site daily diaries, technical reports, drawings, time schedules, and drawings can be used to assess any entitlement. In addition, any costs also need to be substantiated and here copies of invoices, payments, lease and/or rental agreements, salaries and wages, and so forth must be supplied, to clearly demonstrate the costs that have been incurred because of said event. Assessment The contractor will submit the claim, with supporting information and documentation, to the responsible client representative on site who, as in the case of the match official, will either accept or reject the claim and hopefully give sufficient reason for the decision. The contractor and client representative will exchange views and documentation in an attempt to resolve the issue. They will, however, reach a point where both parties can no longer convince the other to their point of view. With a stalemate being reached, a dispute would be declared. A final attempt to reach some kind of amicable solution will also be made by the responsible leaders of the parties. Should this also fail, then the matter will be referred. When considering all the documentation available at this stage, one may believe a dispute could have been avoided had a notice or letter been submitted or more effectively communicated. A contractor who demonstrates a regular and proactive approach in submitting notices and/ or correspondence is less likely to end in dispute. However, when a dispute cannot be avoided despite good communication, the habit of providing the correct notices and correspondence in a regular fashion is more likely to achieve a fair settlement with the dispute process. Referral Having declared a dispute, the issue then is no longer under the control of the persons on site, but is referred to a neutral third party. The contract agreement will describe the procedure to be followed where a dispute is declared. As in the case of the sporting event, the contractor can be convinced that the right decision was not made and request that an independent person in the form of a mediator or an arbitrator review the claim. The role of the mediator is less independent because the mediator will work closely with both parties in trying to find a solution to the dispute. A contractor who demonstrates a regular and proactive approach in submitting notices and/or correspondence is less likely to end in dispute. As in the case of the television referee, the arbitrator or mediator will request all supporting documentation relating to the event. In the case of complex issues, interviews may be carried out, expert witnesses called in, and so on. The arbitrator will scrutinise the documents and arguments delivered by the parties in an attempt to understand the issues and to then reach a fair and equitable decision. Conclusion The awareness of the contract administrator is paramount in avoiding potential conflicts and risks. Risks should be identified as potential claims and be addressed in an amicable way before emotions are brought into the decision-making process. As with the television referee, any decision made where all the facts are well presented, with no malfunctioning camera, all parties will accept the decision and continue to work together. It is only when one party feels aggrieved that events become unpleasant and tend to end up in a long and costly process to determine the legitimacy of any claim.
Show More

View, share or download our Brochure Here

Share by: