Study On Construction Claims In Case Of Extreme Changes In Real Estate Project

Real estate developer is the leader of a project, and needs to face a num ber of individual clients. Unc ontrollable changes in policy, environm ent and m arket, imperfection in design and other various fa ctors could cause changes inevitably in construction, leading to delay schedule, an d increase costs, even interruption of construction. Thus, claim for com pensation has become a vital part in the process o f a real estate development project implementation, gained extensive attention of project participants. Especially nowadays a real es tate project bidding is won by the lowes t bidder. Contractors m ainly place profit point of a project on vari ations and claims during the construction process, the m anagement of variations and claim s has gained increasing attention. Whether the raising of variations and claim s is legitim ate and reasonable, whether th e basis of claim s is reliable, whether docum ent preparation is complete, whether the claim procedure is executable according to contract, how to game in negotiations, these are a ll important factors of final success of a project and profitability.In this paper, changes and claim s management have been studied through a case study of extrem e changes in a real estate development project from a contractor perspective. Study the changes and claims management. The plan period of the project is 347 days. Experience two times shutdowns. The first shut down two and a half years, second shut down six and a half months. Th e construction progress still slow due to various reasons, as a result, the project duration delayed seriously. Actual period is1972 days. During this period, labor costs, m aterials, and mechanical fees changes larg ely, resulting in the list of the original contract amount of engineering integrated unit is not applicable to this project and m ore engineering change. after 2 tim es shutdown and the construction schedule delay, resulting in the cost increase of equipment, materials, labor cost and extension fee relate d to shutdown, also increased the rental cost for la rge machinery, scaffolding and other rental eq uipment to extend and m anagement fees. Therefore, in order to ensure the successful completion of the project and the legitimate rights and interests of all parties, the unit price of the original contract must be adjusted, claim on increase cost of shutdown and pr oject duration delay m ust be m ade.The contractor of the project facing very serious problems, for example, the actual cost of the project is far beyond predicted cost, how to deal with the changes and the claims and counter-claims work, al l those problem s are the key whe ther the general contractor could turnaround on this project.Through case study, from the perspective of the contractor this paper m ainly introduce price adjus tment method against the employer after retu rn to work, cost applying of the three claim s, negotiation process and audit of project claims, problems and defects encountered in each claim ant and management, and lessons learned from the claims process and continuous improvem ent. Make some operational induction and expansion on the procedures of variations and claim s. Finally, summ arize the who le process of variations and claim s in this ca se Provide reference for the variations and claims management of other projects.