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D. Third-Party Issues

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Certain standard construction contracts require an owner decision on third-party impacts before such a claim moves to dispute resolution. The underlined text below represents specific pre-claim requirements.

 AIA A201 – Section 8.3: If the contractor is delayed by force majeure events, abnormal weather, and/or other causes beyond the contractor's and the owner's control, etc., then the contract time shall be extended as determined by the architect. Thus, the contractor should give the architect the ability to render a decision before a claim is initiated. If the contractor disagrees with the architect's position, the contractor shall issue a claim per Article 15.

 ConsensusDocs – Section 6.3 and Section 8.4: Section 6.3 covers, among other things, contractor impacts from third-party issues such as labor disputes, acts of terrorism, epidemics, etc. Section 6.3 refers to Section 8.4, which outlines the claim notification process, so no pre-claim notifications are required.

 EJCDC C-700 – Section 4.05 and Section 11.09.B: Section 4.05.C indicates that if the contractor is impacted due to issues that are not the fault of the owner or the engineer, the contractor is entitled to an extension of time as its sole remedy and, per Section 4.05.D.3, such an extension is subject to the provisions of Article 11. Per Section 11.09, the contractor shall submit change proposals to the engineer within 30 days after the start of the event giving rise thereto. The engineer is to render an initial decision on the change proposal within 30 days of proper submission. If contractor does not agree with the engineer's initial decision, it can move to the dispute resolution procedures in Article 12.

Fundamentals of Construction Claims

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