The construction industry continues to find itself challenged by the administration and resolution of disputed changes and claims that inevitably arise during the course of design and construction of projects. These challenges tend to be significant on larger, more complex projects for a variety of reasons. The industry continues to attempt to find alternative ways to minimize the effort, time, and costs associated with the resolution of disputed changes and claims.
Past experience has shown that parties to a construction contract have sought to resolve disputed changes and claims through litigation, alternative dispute resolution (i.e., arbitration and mediation), and, in the more recent past, dispute resolution boards. Although these forms of conflict resolution are successful and provide results, the time and cost investments required to pursue these processes can be significant.
An alternative to the more traditional methods of dispute resolution is a “cost recovery” process that blends the positive aspects of these traditional dispute resolution methods and attempts to reduce or eliminate some of the more unpleasant aspects of those methods. The “cost recovery” concept is not new to the construction industry, but is typically overlooked or ignored as a possible means of resolving issues involving unexpected cost increases during design and construction. Cost recovery is normally associated with attempts by owners to recover cost overruns that do not add value to a project, typically due to errors and omissions by design professionals or poor performance by the project’s management team.
Exponent Construction Consulting professionals have the experience and expertise to assist in developing, implementing, and managing a Cost Recovery program.