Petrocontracts International are a leading global dispute management consultancy with a demonstrable record of successfully delivering results by culminating modern & cost-effective techniques with industry best practices to improve project timelines, cost optimisation and cost avoidance by eliminating financial and operational risks at all levels of the project lifecycle.

We draw on multi-disciplinary expertise spanning project management, construction and contract management, delay and quantum analysis, quantity surveying, forensic claims.

Claims Avoidance - Unforeseen Site Conditions

Unforeseen site conditions can be a major problem in construction projects, causing delays, cost overruns, and even disputes between contractors and owners. It is important for both parties to take steps to avoid claims related to unforeseen site conditions.

From the contractor's perspective, there are a few key steps that can be taken to minimize the risk of claims:

• One of the most important things a contractor can do is to thoroughly investigate the site before beginning work. This includes conducting a detailed site survey, reviewing any available site information, and conducting any necessary testing to identify potential issues. By conducting a thorough site investigation, a contractor can better understand the conditions they will be working in and can plan accordingly.
• It is also important for contractors to carefully review the contract documents and ensure that the scope of work is clearly defined. Any ambiguity in the contract documents could lead to disputes over who is responsible for dealing with unforeseen site conditions. By ensuring that the scope of work is clearly defined, a contractor can avoid potential claims related to unforeseen site conditions.
• It is important to provide timely notification to the owner when encountering unexpected site conditions. This allows for a proactive approach based on which Owners can promptly investigate these conditions when notified in a timely manner, allowing for informed decisions to be made and potential project delays to be mitigated and accordingly issue resolution and ensures that fair adjustments can be made to the contract price to account for these challenges.

By safeguarding the contractor's interests through equitable adjustments, both parties can work together to address unforeseen circumstances effectively.

From the owner's perspective, it is important to provide as much information as possible about the site to the contractor before work begins.:

• This includes providing any available site reports, surveys, and other relevant information. By providing this information upfront, an owner can help ensure that the contractor is aware of any potential issues and can plan accordingly.
• It is also important for owners to be flexible and willing to work with contractors to address any unforeseen site conditions that may arise. By maintaining open communication and working together to find solutions to any problems that arise, owners can help minimize the risk of claims related to unforeseen site conditions.
• Including a differing site conditions clause in the contract helps to eliminate uncertainties and encourages competitive bidding. This clause eliminates the risk of inflated bids from contractors who include differing contingencies for unforeseen conditions, ultimately leading to a more competitive bidding environment. Owners can benefit from this by receiving more accurate and competitive bids, without contractors having to factor in overly conservative estimates.

Overall, by taking proactive steps to investigate the site, clearly define the scope of work, provide relevant information upfront, maintain open communication, and work together to address any issues that arise, both contractors and owners can help avoid claims related to unforeseen site conditions in a construction project.

By working together to address unforeseen site conditions in a fair and collaborative manner, both owners and contractors can minimize the impact of these challenges and ensure the successful completion of the project.

Petrocontracts possesses the necessary skills and resources to effectively manage its offered services in the energy sector ranging from simple to complex projects. Petrocontracts will be pleased to provide a more accurate assessment, additional information about Petrocontracts' specific expertise, experience in providing its services, and available resources. Please contact us at info@petrocontracts.com and one of our senior representatives will get in touch with you.