Client Involvement in Claims Resolution
It is Public Services and Procurement Canada (PSPC) practice that the client be advised, briefed, and provided reports on any claims managed by PSPC on their behalf. Where PSPC is the design and construction service agency, then PSPC is responsible for all aspects of contract management, including claims analysis and resolution. The Project Charter should address responsibility for claims management and the client should be made aware of the risks, consequences and liabilities of project scope changes. Management of claims resolution also involves administration and negotiation of the claim and management of the client's role in the resolution process, especially when the client is required to obtain funding to pay for a claim. Clients may attend meetings with claimants upon request, however negotiations are to be conducted strictly by the PM.
Client Notification Process:
The PM will provide the client with:
- notice of probable risks, consequences and liabilities of implementing client requested changes;
- notice of any claims, whether they will or will not require additional client funding;
- briefings to ensure client is aware of and understands any claim they will be expected to pay;
- regular status reports.
Payment of Costs:
When the amount and cause of the claim have been determined by the PM the responsible party is to pay appropriate costs. While some costs may be of joint responsibility between PSPC and its client, it is generally understood that PSPC is responsible for representing the client's best interests concerning the correction of errors and omissions (see Claims Payment and Funding Mechanisms).
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