Suspend Work – "Remain on Standby" – 3 Key Words

Why Should You Attend:

The contract has been awarded and notice to proceed issued. The contractor has started work. The owner issues a suspension of work directive and the contractor shuts down all or a designated portion of their work awaiting the return to work order. The contractor believes they are entitled to recover all delay and all time related delay damages. Is the contractor, right? Is the owner on the hook for all delay damages? As Max E. Greenberg commented in 1984 – “It ain’t necessarily so!” This webinar examines why owners must have a suspension of work clause in their contracts and how these clauses work. It identifies what damages are typically owed when an owner stops all or part of the work and outlines some typical limitations of suspension damages found in many contracts. Additionally, the webinar discusses five key court cases decided between 1996 and 2015 that set forth key requirements necessary to collect damages arising from a suspension of work directive. Finally, the webinar offers recommendations on what actions contractors take to protect the recovery of such damages and why these actions may help owners resolve such claims in the field rather than the courtroom.

In this webinar, you will:

• Learn the difference between “cold standby” and “hot standby”.
• Discover why it is critical for contractors to get the owner’s direction on exactly what they want the contractor to do during the suspension period.
• Understand how Suspension of Work Clauses work and why they are needed.
• Explore what damages are recoverable under typical Suspension clauses.
• Learn about limitations on recoverable damages.
• Be exposed to a series of court cases that have redefined what needs to be proven to recover damages.
• Be aware of the current 12 point test for recovery of suspension damages.
• Learn what actions contractors should take to protect their right to collect damages due to an owner issued suspension of work.

Areas Covered in the Webinar:

This webinar discusses:

• The two types of suspensions of work
• Typical causes of work suspensions
• Why an owner needs a Suspension of Work clause in their contract
• The operation of the clause
• Recoverable damages arising from work suspensions
• Limitations on recoverable damages
• The erosion of damages caused by recent court decisions
• The current tests for suspension of work damages
• What actions contractors should take to protect their rights to recover damages
• And, how these actions may help owners resolve suspension of work claims in the field, not in the courtroom

Who Will Benefit:

• Owners and owner representatives managing capital improvement projects.
• Contractor executives, project managers, project sponsors and project controls personnel.
• Construction managers and design professionals performing services during construction.
• Attorneys representing owners, contractors, construction managers & design professionals performing services during construction.

Jim Zack
Executive Director, Navigant Consulting Inc

James Zack is the Senior Advisor, Ankura Construction Forum™ – the construction industry’s global resource for thought leadership and best practices on avoidance and resolution of construction project disputes globally. Jim was founder and former Executive Director of the Navigant Construction Forum™.Previously, Executive Director, Corporate Claims Management, Fluor Corporation; Vice President, PinnacleOne and Executive Director, PinnacleOne Institute; and Senior Construction Claims Consultant, CH2M HILL, Inc. With 47 years’ experience, he is a recognized expert in mitigation, analysis and resolution or defense of construction claims. A Fellow of AACE International. The Royal Institution of Chartered Surveyors, and the Guild of Project Controls, Mr. Zack is a Certified Forensic Claims Consultant, a Certified Construction Manager and a Project Management Professional as well as an internationally known author and speaker on construction claims.

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