Muscat International & Salalah

Airports Development Projects

PROJECT PROCEDURES

Claim Management Procedure

Document No.: POM-0402-PP-17-PRM-02

CONTENTS: FORMS:
1. PURPOSE 01 Claim Information Request
2. SCOPE 02 Claim Tracking Register
3. DEFINITIONS
4. RESPONSIBILITIES
5. PROCEDURE

DOCUMENT HISTORY

Michael
0 270213 Onisiphorou
Majdi Burgan Adel Merhi

REV. PREPARED REVEIWED APPROVED

Date CHANGES
NO. BY BY BY

© Copyright of structure: Hill International 2013. All rights reserved

Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
 Muscat International & Salalah Airports Development Projects

1. PURPOSE

The purpose of this procedure is to set out the process to be implemented by the Consulting
Engineer for the effective review, assessment and settlement of Extension of Time and Financial
Claims from the Contractors in connection with the design and construction of Muscat International
and Salalah Airports.
This procedure shall provide a consistent means for promptly dealing with and tracking claims
arising on the projects. The Consulting Engineer is contractually obligated to take certain actions,
as highlighted herein.

2. SCOPE

This procedure applies to all Construction Contracts (MC1, 2, 3, 4a, 5, 6, 8 and SNC 9, 10 and 11)
for the design and construction of Muscat International and Salalah Airports. All Contractors’
Extension of Time and Financial Claims shall be processed in accordance with this procedure.

3. DEFINITIONS

None

4. RESPONSIBILITIES

Employer’s Representative (NADC) The Employer’s Representative shall be responsible for

making the final decision for approval and issue of
claims evaluations / determinations.

Employer’s Representative The Technical Committee Representatives are

(Technical Committee) responsible for approving the claims evaluations /
determinations to facilitate the issuing of the Engineers
Instruction prior to signature by the NADC.

Project Management The PMC shall be responsible for coordinating the

Consultant approval of the claims evaluation / determinations within
the Employer’s organization.

Hill Project Director
Hill Project Director shall monitor this procedure to
ensure that it is properly implemented. Hill Project
Director shall be responsible for coordinating the
approval of claims evaluations / determinations in
conjunction with the Employer’s Representative. All
claims evaluations / determinations shall be subject to
the approval of the Employer’s Representative.

Hill Contracts / Commercial / Hill Contracts / Commercial / Claims Director shall be

Claims Director responsible for reviewing the attached documentation
prior to issuing to Hill Project Director.

Project Procedures Claim Management Procedure

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 Muscat International & Salalah Airports Development Projects

Hill Senior Claims Manager Hill Senior Claims Manager has functional responsibility
for all claims administration and shall allocate
responsibility for the evaluation / determination to the
appropriate Claims Manager.

Hill Senior Claims Manager shall develop the claim

strategy with allocated team member and manage the
evaluation / determination process. Hill Senior Claim
Manager shall review the evaluation / determination and
make a recommendation to Hill Contracts / Commercial
/ Claims Director on both a strict contractual basis and
on the merits of the claim.

Hill Claims Manager Hill Claims Manager shall be allocated to a particular

Main Contract and has functional responsibility to
evaluate the Contractor’s claims and make
recommendations to Hill Senior Claims Manager.

Hill Senior Contracts Hill Senior Contracts Manager has functional

Manager responsibility for all contract administration. Hill Senior
Contracts Manager shall draft Variation Orders (VO) to
be issued to the Contractor.

Hill Senior Commercial Hill Senior Commercial Manager shall advise Hill
Manager Project Director and Hill Senior Contracts Manager on
all matters associated with the cost of instructions and
changes. Hill Senior Commercial Manager shall advise
Hill Senior Contracts Manager on the cost of Instruction
and changes. Hill Senior Commercial Manager shall be
responsible for reviewing the cost proposals from the
Contractor

Hill Project Controls Hill Project Controls Manager shall be responsible for
Manager monitoring the progress of the respective Contractor’s
Works and provide the Claims team with the necessary
program updates to conduct its delay analysis.

Project Procedures Claim Management Procedure

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 Muscat International & Salalah Airports Development Projects

5. PROCEDURE

# TASK DESCRIPTION RESPONSIBLE

5.1 RECEIPT OF CLAIMS NOTICE

1 Receive Claim Notice from the Contractor. Hill Project Director
Forward the Claim Notice to Hill Contracts / Commercial / Claim
2 Director, Hill Senior Claims Manager and Hill Senior Contracts Hill Project Director
Manager.
Forward the Claim Notice to the respective Claims Manager to
be logged in the Claim Tracking Register POM-0402-PP-17-02- Hill Senior Claims
3 LG. Claim particulars will be recorded using POM-0402-PP-17- Manager
01-FM

Review the Claim Notice and in conjunction with Hill Contracts

4 Manager draft a response to the Notice. Hill Claims Manager

Identify the records that need to be kept by the Engineer’s

5 Technical Team and issue a request to the respective Hill SRE. Hill Claims Manager

Forward the response to Hill Senior Claims Manager and Hill

6 Contracts / Commercial / Claim Director. Hill Claims Manager

Once approved, upload the draft via the Aconex System for Hill Hill Contracts /
7 Project Director to review and sign. Commercial / Claim
Director

8 Issue the response to the Contractor. Hill Project Director

5.2 PRELIMINARY CLAIM EVALUATION

1 Receive Claim Detailed Particulars from the Contractor. Hill Project Director
Forward the Claim Detailed Particulars to Hill Contracts /
2 Commercial / Claim Director, Hill Senior Claims Manager and Hill Hill Project Director
Senior Contracts Manager.
Forward the Claim Detailed Particulars to the respective Claims
Manager to be logged in the Claim Tracking Register against the Hill Senior Claims
3
Claim Notice Entry. Manager

Within 28 days of receipt of the Detailed Particulars carry out a

Preliminary Review of the Contractor’s Claim submission and
determine ‘in principle’ whether the claim has merit and if further
particulars are required from the Contractor in support of its
4 claim. If the claim is found to constitute a variation to the Works Hill Claims Manager
(under the respective Variation Clauses), then it shall be
forwarded to Hill Senior Commercial Manager to be evaluated
under the Change Manager Procedure.
Draft the Preliminary Review and forward it to Hill Senior Claims
5 Manager and Hill Contracts / Commercial / Claim Director for Hill Claims Manager
review and approval.

Project Procedures Claim Management Procedure

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 Muscat International & Salalah Airports Development Projects

Once approved, arrange a meeting with the PMC and Hill Contracts /
6 Employer’s Representative for Hill Senior Claims Manager to Commercial / Claim
present and discuss Hill’s findings. Director &
Relay any comments from the PMC and Employer’s Hill Senior Claims
7 Representative to Hill Claims Manager. Manager
Amend the Preliminary Review as appropriate and draft an ‘in
8 principle’ response to the Contractor together with a request for Hill Claims Manager
further particulars.
Forward the response to Hill Senior Claims Manager and Hill
9 Contracts / Commercial / Claim Director. Hill Claims Manager

Once approved, upload the draft via the Aconex System for Hill Hill Contracts /
10 Project Director to review and sign. Commercial / Claim
Director
Issue the response to the Contractor within 42 days of receipt of
11 the claim particulars. Hill Project Director

5.3 DETAILED CLAIM EVALUATION

Once sufficient Detailed Particulars are available (interim or final)
develop a claims strategy together with Hill Senior Claims
1 Manager for carrying out the detailed analysis of the Contractor Hill Claims Manager
claim (time and/or cost).
Brief the team on the claims strategy to be adopted, and collect
2 the necessary records to conduct the detailed analysis. Hill Claims Manager

Take a dual approach in evaluating the Contractor’s claim:

a) The first strictly applies the provisions of the Contract to their
full effect, i.e., strictly applying any and all conditions and
conditions precedents which may limit the Contractor’s
entitlement.
b) The second a fact based pragmatic approach on the merits of
the claim. This shall been performed with the aim at providing
the Employer with an indication of their potential liability in
event that the Employer chooses to waive the notice
requirements, it is found that any of the conditions precedents
are unenforceable and/or the Contractor has an alternative
legal argument.
3 The detailed evaluation shall cover (as applicable): Hill Claims Manager
a) Identify the Event: clearly identify the event and the
circumstance which give rise to change causing delay and/or
cost.
b) Determine liability for the event: if responsibility rests with the
Employer or it is a neutral event (such as force majeure or
exceptionally adverse climatic conditions).
c) Establish contractual entitlement: reference needs to be made
to the Conditions of Contract to identify pursuant to which
provisions of the Contract provide for an entitlement to claim
an extension of time and/or additional payment.

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d) Contractual compliance: analysis of the notice submissions

compliance with the contractual claims procedure.
e) Cause and Effect: detailed analysis of the facts relating to
causal nexus between the event or circumstance claimed and
the effect claimed. This shall include details of the affected
works, referring to the planned sequence, durations,
resources and methodology; the status of the works in
relation to that planned at the time of the event; and,
description of the changes to that plan as a consequence of
the event.
f) With regard to extension of time claims, perform an
independent delay analysis to determine the effect of the
event upon the Contractor’s program of works taking into
consideration the actual progress when the delay occurred.
The choice of delay analysis methodology will depend upon
the level of records available; the robustness of the baseline
program and any updates; the time available; degree of
accuracy; and, level of proof required. This should be decided
by Hill Claims Manager and his/her team.
g) With regard to additional payment claims (save for
Variations), the appropriate cost evaluation carried out. These
generally fall within three categories; costs associated with:
 Prolongation;
 Disruption; and
 Acceleration.
h) Detailed review of the substantiating documents submitted by
the Contractor and the records maintained by the Consulting
Engineer. These documents include: letters, method
statements, instructions, progress reports and photos,
minutes of meetings, programs and schedules, invoices,
quotations, price build breakdowns, payroll records etc.
Draft the Detailed Evaluation and forward it to Hill Senior Claims
4 Manager and Hill Contracts / Commercial / Claim Director for Hill Claims Manager
review and approval.
Once approved, arrange a meeting with the PMC and Hill Contracts /
5 Employer’s Representative for Hill Senior Claims Manager to Commercial / Claim
present and discuss Hill’s findings. Director
Relay any comments from the PMC and Employer’s Hill Senior Claims
6 Representative to Hill Claims Manager. Manager

7 Amend the Detailed Evaluation as appropriate. Hill Claims Manager

Along with Hill Claims Manager discuss the Detailed Evaluation Hill Senior Claims
8 with the Contractor and attempt to reach an agreement. Manager
Following agreement with the Contractor formulate a Variation
9 Order (VO) to cover the agreed evaluation in conjunction with Hill Hill Contracts Manager
Claims Manager.
Arrange to have the VO approved by Hill Contracts / Commercial Hill Senior
10 / Claims Director who will initial a copy of the VO. Contracts Manager

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Arrange for Hill Project Director to sign the VO and issue to the Hill Senior
11 Contractor for signature. Contracts Manager

12 Sign and return the VO to Hill International. Contractor

Issue to the PMC for signature once the Contractor signed copy Hill Senior
13 of the VO is received. Contracts Manager
After signing the VO, issue to the NADC for final approval and
14 return the completed signed VO to Hill Project Director. PMC

Forward the signed VO to Hill Contracts / Commercial / Claims

15 Director and Hill Senior Contracts Manager. Hill Project Director

Log the VO on the VO Register. Hill Senior

16
Contracts Manager

17 Arrange for copies of all signed VO’s to be distributed. PMC

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Claims Management Procedure Flow Chart

Receive Notice of Claim from Contractor

Register Notice in claim tracking register

Review Notice of Claim within 3 days of receipt 3 days

Acknowledge receipt of the Notice of Claim (No liability basis)

Instruct the relevant Engineer’s supervisors/inspectors and or Engineering

team to detailed records in respect to the activities affected by the
event/circumstance

Receive Detailed Particulars (interim / final)

Register receipt of Detailed Particulars

Initial Review of Detailed Particulars 42 days

Yes
Respond to Contractor on the
Further Principle of the claim and request
info req’d further particulars
? No

Approve/Disapprove claim in principle and notify Contractor/Employer

If approved review Detailed Particulars (Interim/Final)

Dual Approach:
a) strict contractual approach
b) fact based approach based on the merits of the claim, available
substantiation, and all circumstances.
Inspect the contemporary records held be the Contractor and those
maintained by the Engineer’s supervisors/inspectors
Consult with both Employer & Contractor during the review

Engineer to submit reasoned recommendation for the Employer’s approval

Receive Employer’s approval

Engineer shall issue determination to Contractor and Employer by way of

VO

Project Procedures Claim Management Procedure

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