The causes and remedies of Constructive Acceleration Claims in construction projects

Acceleration claims in engineering and construction projects refer to situations where the project schedule is compressed or accelerated beyond the originally planned timeline. These claims typically arise when there are delays or disruptions that affect the project's progress, and the contractor or project owner seeks to recover the time lost by increasing the pace of work.

Here are some key points related to acceleration claims:

1. Types of Acceleration: There are two main types of acceleration: voluntary and constructive. Voluntary acceleration occurs when the contractor voluntarily agrees to expedite the work in order to meet the project deadline. Constructive acceleration, on the other hand, occurs when the contractor is forced to accelerate the work due to owner-caused delays or other unforeseen circumstances.
2. Owner-Caused Delays: Constructive acceleration claims generally arise from owner-caused delays or disruptions that impact the project schedule. These delays can include late issuance of approvals or permits, changes in design or scope, or late delivery of materials or equipment.
3. Requirements for a Valid Claim: In order to make a successful acceleration claim, the contractor typically needs to demonstrate the following elements:The existence of a delay or disruption that affected the project schedule.The contractor's efforts to mitigate the delay or disruption.The contractor's acceleration of the work to recover the lost time.The additional costs incurred as a result of the acceleration.
4. Notice and Documentation: Contractors are generally required to provide timely notice to the project owner or relevant parties when acceleration becomes necessary. This notice should include documentation of the delay, the efforts made to mitigate it, and the additional costs incurred.
5. Cost Recovery: Contractors making acceleration claims may seek compensation for the additional costs incurred due to the accelerated work. These costs can include increased labor expenses, overtime wages, additional equipment rentals, and other related expenses. It is crucial for contractors to maintain proper records and documentation to support their cost claims.
6. Dispute Resolution: In case of a dispute regarding acceleration claims, the contract documents often provide procedures for resolution, such as negotiation, mediation, or arbitration. The specific mechanisms for dispute resolution will depend on the terms of the contract between the parties involved.

It's important to note that the specifics of acceleration claims can vary depending on the jurisdiction and the specific contract provisions governing the project. Consulting with legal professionals or construction experts familiar with the relevant laws and regulations in your jurisdiction is recommended for accurate and up-to-date information.

Here are some examples of owner-caused delays that can lead to constructive acceleration claims in engineering and construction projects:

1. Late Issuance of Approvals: If the owner fails to provide timely approvals for design changes, permits, or other necessary documentation, it can cause delays in the project. The contractor may be forced to accelerate the work to meet the original schedule, resulting in additional costs.
2. Design Changes: Significant changes in the project's design or scope initiated by the owner can disrupt the construction process and lead to delays. If the contractor is required to implement these changes within the original timeframe, it may necessitate acceleration and incur additional expenses.
3. Inadequate or Incomplete Project Information: If the owner provides incomplete or inaccurate project information, such as incomplete drawings or specifications, it can cause delays in the contractor's work. The contractor may need to accelerate the work to compensate for the lost time, resulting in increased costs.
4. Delayed Access to the Site: If the owner does not provide timely access to the construction site, it can impede the contractor's ability to commence or progress with the work. The contractor might need to accelerate the schedule once access is granted to meet the original completion date, leading to additional expenses.
5. Late Delivery of Materials or Equipment: If the owner is responsible for procuring and delivering materials or equipment to the site, delays in their delivery can disrupt the construction schedule. The contractor may be compelled to accelerate the work to make up for the lost time, resulting in increased costs for expedited shipping or rental of alternative equipment.
6. Interference with the Work: If the owner or its agents interfere with the contractor's work, such as by occupying work areas or causing disruptions on-site, it can cause delays and necessitate acceleration. The contractor may need to work overtime or increase manpower to compensate, leading to additional costs.

These are just a few examples of owner-caused delays that can give rise to constructive acceleration claims. It's important to note that each project is unique, and the specific circumstances and contract provisions will determine the validity and success of an acceleration claim.

Constructive acceleration claims in construction projects are typically resolved through a dispute resolution process outlined in the contract between the parties involved. The specific steps and procedures for resolution may vary depending on the contract terms, applicable laws, and the agreed-upon mechanisms for dispute resolution. Here's a general overview of how constructive acceleration claims can be resolved:

1. Notice and Claim Submission: The contractor making the constructive acceleration claim is usually required to provide timely notice to the owner or the project stakeholders, as specified in the contract. This notice serves to inform the parties of the claim and initiates the formal dispute resolution process. The contractor will typically submit a detailed claim, supported by documentation and evidence, outlining the delays, the efforts made to mitigate them, the acceleration measures taken, and the additional costs incurred.
2. Negotiation and Informal Resolution: After receiving the constructive acceleration claim, the parties may engage in negotiations to resolve the matter amicably. This can involve discussions and attempts to reach a mutually acceptable agreement regarding the additional costs and schedule impacts. The negotiation process may involve meetings, correspondence, and the exchange of information to facilitate a resolution.
3. Mediation: If the parties are unable to reach a resolution through negotiation, they may opt for mediation. Mediation involves the assistance of a neutral third-party mediator who facilitates discussions between the contractor and the owner. The mediator helps the parties explore potential solutions and reach a mutually acceptable settlement. Mediation is a voluntary process, and any resolution reached is typically non-binding unless incorporated into a formal settlement agreement.
4. Alternative Dispute Resolution (ADR): If mediation fails or is not pursued, the parties may proceed to alternative dispute resolution methods such as arbitration or adjudication. These processes are typically more formal than mediation and involve the presentation of arguments and evidence to a neutral third-party decision-maker or panel. The decision reached by the arbitrator or adjudicator is usually binding, and the parties are obligated to abide by the outcome.
5. Litigation: In some cases, if the dispute remains unresolved through ADR or if litigation is the chosen method of dispute resolution from the start, the parties may resort to filing a lawsuit in a court of law. Litigation involves presenting the case before a judge or jury, who will make a legally binding decision on the matter. Litigation can be a lengthy and costly process, and its outcome is determined by the applicable laws and legal precedents.

It's important to note that the specific steps and procedures for resolving constructive acceleration claims can vary depending on the contract and the jurisdiction in which the project is located. It is advisable for the parties involved to consult legal professionals experienced in construction law to guide them through the dispute resolution process and ensure compliance with applicable laws and contract provisions.

Refernces

1-https://www.long-intl.com/articles/acceleration-claims/

2-https://mosaicprojects.com.au/PDF_Papers/P035_Disruption.pdf