Oil & Gas Construction Contracts & Claims

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Who Should Attend

Why you should attend

Oil and gas construction and installation is a high risk, fast moving, and complex industry-particularly off­shore activities. Extraordinary scheduling, tie-in and start-up requirements, highly technical workmanship and material requirements, and vast safety, climactic, and financial risks loom from all sides. When the many parties involved in these projects are of different nationalities, additional layers of complexity are added due to the different languages, cultures, customs, and legal systems intertwined in such international en­deavors.

The parties to an international oil and gas construction project must have a thorough understanding of the contract that governs the construction undertaking, the rights and responsibilities of all parties, and be fully prepared to professionally administer the contract in order to have a successful project.

This Conference is designed to discuss the complexi­ties and special problems involved in oil and gas con­struction and installation contracts to aid both Owners and Contractors in properly planning and administer­ing their contracts, and in dealing with potential claims. It addresses key contract concepts, claim prevention techniques, and typical contract administration prob­lems that arise on oil and gas construction contracts. It is designed to encourage discussion and under­standing of these problems in order to aid both Owners and Contractors in making their projects suc­cessful.

These are the problems that make or break a project. They will be discussed and analyzed at length during these two days. This is why you should attend this Conference.

Agenda/Course Topics

Key Contract Concepts

  1. General Conditions
  2. Particular Conditions
  3. Contractor Obligations
  4. Owner Obligations
  5. Key Role of Engineer

Claim Prevention Techniques

  1. Design Phase
  2. Designer Liability
  3. Engineer Liability
  4. Planning and Scheduling
  5. Construction Phase
  6. Risk Minimizing Clauses
  7. Making a Record
  8. Insurers
  9. Sureties
  10. Manufacturers

Variations

  1. Owner’s Right to Order
  2. Contractor’s Duty to Perform
  3. Exception to the Rule

The Minefield of Constructive Variations

  1. Definition
  2. Need not be Written
  3. Contractor’s Duty to Give Notice
  4. Ambiguities in the Contract Documents
  5. Defective Plans and Specifications
  6. Impossibility of Performance
  7. Standard of Performance
  8. Inspection and Rejection
  9. Method or Manner of Performance
  10. Sequence of Performance
  11. Owner Non-Disclosure
  12. Course of Conduct

Adverse Physical Conditions

  1. General Principles
  2. Notice Requirement
  3. Scope of Clause
  4. Time of Occurrence
  5. Natural Conditions v.
    Man-made Conditions
  6. Duty to Make Site Investigation
  7. Owner Furnished Information

The Cancer of Delay

  1. Inexcusable Delay
  2. Excusable Delay
  3. Compensable Delay
  4. Inefficiency and Disruption
  5. Concurrent Delay

Acceleration

  1. Ordered Acceleration
  2. Constructive Acceleration
  3. Avoiding the Claim

Claim Defenses

  1. Early Recognition and Analysis
  2. Demanding Engineer’s Response
  3. Isolating the Issues
  4. Time Impact Analysis
  5. Cost Exposure Analysis
  6. Factual Defenses
  7. Legal Defenses
  8. Tactical Considerations

Analyzing Delay

  1. Critical Path Method (CPM)
  2. As Planned, As Built, and As Adjusted Schedules
  3. Using CPM to Prove or Disprove Delay
  4. Attacking a CPM Schedule
  5. Determination of Concurrent Delays

Analyzing Damages

  1. Actual v. Estimated Costs
  2. Reasonable Costs
  3. Detailed Proof of Costs
  4. Claim Procedures
  5. Auditing Cost Records
  6. Total Cost Claims
  7. Labor
  8. Equipment
  9. Material Costs
  10. Subcontractor Costs
  11. Overhead
  12. Delay Costs

Claims by Owners

  1. Liquidated Damages
  2. Termination for Default
  3. Breach of Contract
  4. Defective Work

Negotiating A Settlement

  1. Strategy
  2. Preparation
  3. Negotiation Team
  4. Goals and Objectives
  5. Evaluating Responses

Arbitration

  1. Disputes Subject to Arbitration
  2. Procedures for Initiating Arbitration
  3. Selection of Arbitrators
  4. Applicable Rules

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