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Changing Trend in Risk Allocation - Differing Site Conditions (CCL150B)

Presented By : James G. Zack Jr.
(*) Single User Price. For multiple users please call 1-800-223-8720
Pre Recorded Webinar
60 minutes
  •  Wed, January 21, 2015
Event Description
See the sneak peek before you buy!

Do You Really Know What the Differing Site Conditions Clause Means and How it Works? Attend This Webinar Before Answering That Question!

The Differing Site Conditions clause is one of the oldest clauses used in construction contracts, having been created by the U.S. Federal government in 1926. It is generally accepted that the object of the clause is to transfer the risk of latent site conditions to the owner, and thus enticing contractors to lessen the cost of their contingency during bidding time. The clause promises that if the contractor encounters a 'materially different' condition during the work execution, the owner would have to compensate the contractor for the resulting cost and/or time. Essentially DSC clause helps to manage the contractor's construction risk. It shifts the construction risk, arising out of unknown physical conditions, to the owner.

For nearly 90 years this standard clause has been used widely in both public as well as private contracts. Most practitioners in the construction industry 'think' they know what the clause means and how it operates. But, in the words of one of the mid-20th century 'deans' of construction law, Max E. Greenberg, 'It isn't necessarily so!' The Courts and Boards of Contract Appeals, over the years, have been slowly changing the interpretation of risk allocation under the clause. A series of Court and Board cases have increased the contractor's risk concerning differing site conditions.

This construction risk management webinar by expert speaker James G. Zack, Jr. will give you a clear and accurate picture of the evolving Differing Site Conditions clause and how it really operates. Know what conditions are and are not covered by the Differing Site Conditions clause; what must be proven to prevail on a Differing Site Condition claim; and what contractual requirements must be complied with in full. This webinar will also help you become familiar with a number of Court and Board of Contract Appeals' decisions which are changing the 'traditional' risk allocation under the Differing Site Conditions clause.

You will gain a solid understanding on the Differing Site Conditions clause. You will understand how the typical essence of this 90-year-old clause is being eroded by Court and Board decisions, making construction risk management increasingly difficult for contractors.

Session Highlights:

  • Definition of a differing site condition and why there is a need for a Differing Site Conditions clause in a construction contract;
  • The history and purpose of the clause and examining the modern Differing Site Conditions clauses;
  • Understand the changes in Risk Allocation and Management in modern DSCs;
  • Understand the three elements necessary for DSC claims;
  • Understand 'indications' and 'material difference';
  • Get an overview of the impact of contract disclaimers related to differing site conditions that increase contractor's construction risk;
  • Conditions that are generally not covered by the clause and conditions that are sometimes included within the scope of the clause;
  • Listing the six part test for a successful differing site condition claim and five additional contractual requirements contractors must comply with in order to prevail. Also, examining a contractor's duty to continue work;
  • 'Reverse differing site condition claim' - an owner claim that may be asserted against the contractor seeking recovery of funds from the contractor when they encounter conditions 'materially better than anticipated';
  • Court and Board of Contract Appeal decisions which appear to be slowly eroding the traditional risk allocation commonly accepted under the Differing Site Conditions clause, along with lessons learned from each case; and
  • A research perspective that provides a list of practical construction risk management recommendations for both owners and contractors dealing with differing site conditions.

Who Should Attend

  • Attorneys dealing with site condition claims.
  • Owners and owner representatives managing capital improvement projects.
  • Contractor executives, project managers, project sponsors and project control personnel.
  • Construction management and design professionals performing services during construction.
About Our Speaker(s)

James G. Zack Jr., Construction Law ExpertJames G. Zack Jr.
James G. Zack Jr. is the Executive Director of the Navigant Construction Forum – the construction industry’s global resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Formerly, Executive Director, Corporate Claims Management for Fluor Co... More info

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