Tunnels: Value Engineering, Claims Avoidance and Dispute Resolution

TUNNELS
accommodate the unique problem or need at hand. Along

VALUE ENGINEERING, with project experience comes knowledge of what a project
CLAIMS AVOIDANCE AND should cost and how long it should take to build. Our team is
comfortable handling proposed alternatives and ensuring
DISPUTE RESOLUTION our clients that our recommended proposals can be built on
time, within budget and as per requirements.
At WSP, we leverage all forms of experience at all
points throughout the project’s lifecycle, to ensure that When the construction of New York City’s Second Avenue
we are offering our clients the best results. Subway, Phase One, broke ground, soil conditions were not
We accomplish this by providing our clients with more then consistent with samples across the entire length of the
just designs and contracts. We make sure that the designs tunnel’s trajectory. Through implementation of value
represent the best course of action, with all options and engineering principles, the project was able to continue with
alternatives considered. We evaluate the contracts drafted to minor alterations, instead of grinding to a complete stop.
remove all ambiguity and ensure they are executable. And
CLAIMS AVOIDANCE
because sometimes disputes are inevitable, we make sure
that there are mechanisms built into the contract to ensure The surest way to avoid a claim is by making sure that the
an equitable and acceptable resolution, instead of delays. contract is clear and that everyone has the same
expectations. Simple and consistent contracts make for
VALUE ENGINEERING better project results, because 60% of the claims related to
Value engineering is the process whereby we evaluate underground projects are caused by ambiguous, conflictive,
designs to ensure that it is the best solution possible for the or uncoordinated specifications.
challenge at hand. It is where our experts ask if there is a At WSP, we bring these principles to every project we
better – whether in terms of money, time, or best practices – undertake. By asking the basic questions and ensuring that
way to accomplish our client’s goals. We examine designs there is only one way to interpret the drawings, our teams
produced in-house, as well as comparing alternative are able to ensure that there is no uncertainty. We deliver
proposals to the original, to ensure the client has all the clear, coordinated, and concise work, covering the general
information they require to make their decision. conditions and technical specifications.
Value engineering translates into tangible benefits for our It is also essential to understand the underground
clients by capitalizing on WSP’s years of experience in environment and perform sufficient geotechnical
design, construction management, and program investigations. Our long experience with these projects and
management. Our recommendations rely on lessons learned accumulated lessons learned allow us to recognize the risky
and field-proven solutions that can be crafted to portions of an alignment and plan accordingly. A risk based
wsp.com
TUNNELS
approach to underground projects generally help owners

avoid the big claim scenarios and mitigates riskier options so
DISPUTE RESOLUTION
that the owner’s confidence that the project will be delivered Despite the best planning, however, some disputes are
on time and on budget is greatly increased. unavoidable. That is why it is integral to have a recognized
dispute resolution mechanism built into the contract in
Geotechnical Baseline Reports (GBR) is a contractual tool that
preparation, to minimize the disruption caused to the
provides a baseline for assigning risk to the contractor or
project.
owner. GBRs are a contractual tool not geotechnical fact. A
Differing Site Condition Clause coupled with the GBR are
The two most popular forms of dispute resolution
recommended ways to manage risk, assign risk to those
mechanisms are either an internal board or an outside body
entities best able to deal with the risk, and ensures that if
of three expects, separate from the project owners and
what is uncovered underground differs from what the parties
contractors. The latter option is the most popular, because it
anticipated, there are methods already in place to deal with
it maintains impartiality.
the impacts to the project’s cost and schedule.
WSP recommends that all of our underground projects

include a dispute resolution mechanism.
wsp.com

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TUNNELS

accommodate the unique problem or need at hand. Along

approach to underground projects generally help owners

WSP recommends that all of our underground projects

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