COVID 19: Protecting Your Margins Presented By: Scott Livingston, - - PowerPoint PPT Presentation

COVID 19: Protecting Your Margins

Presented By: Scott Livingston, Esq. Rifkin Weiner Livingston LLC

HOSTED BY: MARYLAND TRANSPORTATION BUILDERS & MATERIALS ASSN

The law firm of Rifkin Weiner Livingston LLC (“RWL”) is known for its team approach in the practice of law. The law firm dedicated to recognizing the legal interests of the clientele and looking for timely solutions. Thus, RWL created a COVID-19 Subgroup, including attorneys from RWL along with relational colleagues in other disciplines. The RWL Team can address the needs of MTBMA and its members on matters such as access to State and federal funding, application review, procurement, and employment. The RWL Team offers real-time assistance and advice during these difficult times.

Agenda

• A. Prepare Plans To Do Work, As Changed, And Keep Good Records

I.

Quantify Cost Increases

• a. Labor
• b. Equipment
• c. Materials
• d. Subcontractors

II.

Quantify Delays

• a. Progress schedule, CPM updates
• b. Measuring delays due to COVID-19
• B. Back Office Support For Claims Related To COVID-19 Outbreak

I.

Labor and Equipment Records

II.

Notice of Potential Claims

• C. Manage For Results

I.

Assign executive to manage COVID-19, including communications with Owner, including implementation of new rules

II.

Coordination with field offices for each project

• D. Questions And Answers

Prepare to Do Work, as Changed, And Keep Good Records

• Quantify Cost Increases
• Labor
• Equipment
• Materials
• Subcontractors
• Quantify Delays
• Progress Schedule, CPM Updates
• Measuring Delays Due to COVID-19

• 1. Contractor must work within its own accounting system and, as you indicate, dedicate someone to work

with field staff.

• 2. Recognize that field staff are meant to construct; however, the field staff must memorialize the

current/contemporaneous events of the project is crucial to capture recoverable costs. (Document, document, document!)

• 3. Consider that there are 4 phases of preparing, identifying, and capturing the potential recoverable costs:
• a. Phase 1 – Identify direct costs affected by suspension and disruption, and maintain records to

compare originally planned costs.

• b. Phase 2 – Identify the variances that will affect direct costs (such as wage rate changes,

increased material costs and equipment rates).

• c. Phase 3 – Equipment and labor availability, will likely affect the contractor’s ability to

complete as-planned, even with a time extension.

• d. Phase 4 – Understand that originally planned productivities will likely be impacted, and a

contractor must demonstrate in real-time, instead of at the end of the project.

• 4. Contractors must also recognize that owners will make them whole, as contractually allowed, but they

cannot take advantage of owners, unless they do not want to work in the future with these owners.

Back Office Support for Claims Related to COVID-19

• Labor & Equipment Records
• Notice of Potential Claims

Manage for Results

• Assign Executive to Manage COVID-19
• Communications with Owner
• Implementations of New Rules & Regulations
• Coordination with Field Offices for Each Project

RWL COVID-19 Information & Assistance

https://www.rwllaw.com/covid-19-information-and-assistance/

QUESTIONS & ANSWERS

Contact: Scott A. Livingston slivingston@rwllaw.com (301) 704-8060 Contact: Laurie Lawler llawler@mtbma.org (443) 304 9983

MTBMA.ORG/COVID19