Topic:   RP 120R Demonstrating Entitlement for Contract Change Orders or Claims – As Applied in Engineering, Procurement, and Construction

Presented by: STEPHEN WARHOE, PH.D., P.E., CCP, CFCC

Dr. Warhoe’s background is rooted in over 35 years of practical experience planning, controlling, and managing major design and construction projects, several of which were valued at well over US$4 billion. With his experience in project management, construction management, project controls, risk management, and dispute resolution, he is a recognized expert in schedule construction management, delay analysis, productivity loss, project controls, and construction dispute avoidance and resolution. He has led and managed a regional construction management consulting business for the largest A/E/CM in the world. Dr. Warhoe is also a recognized construction expert on disputed projects, valued well over US$6 billion and individual disputes well over US$3 billion. He has a proven record as a testifying expert on delay, productivity loss, cost damages, project audit, and construction and project management. Dr. Warhoe also specializes in productivity loss analysis and quantification determination. He has modeled productivity loss through the use of system dynamics modeling, on which he wrote his Ph.D. dissertation. As recognition for his expertise and respect in the project controls field, he was elected president of AACE International from 2008 to 2009 and was made an Honorary Life member in 2019. He was the primary author on three of AACE’s Recommended Practices related to change management process, the elements necessary for practitioners to demonstrate entitlement to a change order request or claim, and demonstrating cumulative impact in construction. He has also contributed to several other Recommended Practices published by AACE International and is currently the Vice President of AACE’s Technical Board.

Topic: RP 120R Demonstrating Entitlement for Contract Change Orders or Claims – As Applied in Engineering, Procurement, and Construction

This recommended practice (RP) addresses the necessary elements to determine technical entitlement for a change order request (COR) or claim as applied in engineering, procurement, and construction. While any definitions provided by contract documents would supersede this RP, in the absence of clarity in the contract, this RP defines key elements of the change request process. These elements of a COR or claim apply to any typical design, procurement, and construction contracting strategy or delivery method.

The purpose of this RP is to provide guidelines concerning the critical elements to demonstrate technical entitlement in support of a change order request or claim on a capital construction project, that most practitioners would consider to be a good practice, that can be relied on, and that they would recommend be considered for use where applicable. Additionally, entitlement in the terms of the RP is how a contractor administers the EPC contract (including the relevant purchase orders and subcontracts) entered into using the guidance of their legal advisor. This RP is focused on the technical administration of the contractual terms and conditions. Therefore, all usage of the term entitlement, throughout this RP, refers to technical entitlement and not to legal entitlement.

This recommended practice is relevant to stakeholders on a capital construction project; this includes owner, contractor, subcontractor, construction manager, or other stakeholders. Although this recommended practice is written in the context of a contract between an owner and contractor, it is equally applicable to any parties contracted to perform a project including owners and architect-engineers (A/E), as well as general contractors and their subcontractors. This RP can also be used as an internal change management guideline within an organization’s management procedures. In the context of this recommended practice, the contractor is assumed to be the claimant. Of course, this is not always the case. The owner/employer, A/E, and a subcontractor can also be claimants as well.

It is important for all parties to a contract to understand the contract provisions, as well as laws, regulations, and standards that govern the contract. It is also highly recommended that an attorney be consulted to review the change management process of a contract and the terms defining the responsibilities of the claimant to demonstrate entitlement to requested change orders or claims.

Renaissance Seattle Hotel

May 11, 2023, 5:30 – 8:00 PM (America/Los_Angeles)