Claim – inevitable in the construction industry!

Generally, all contracts define the primary relationship among parties to a construction project, thus forming the basis of all claims. The documents in a contract include the contract agreement itself, General and Special conditions, the schedule, drawings and specifications. It is often found that misunderstanding and misinterpretation of these lead to disputes and claims in construction projects. The urge to protect one’s own interest also plays a pivotal role in discrepancies arising between parties to a contract. Construction projects rarely run entirely smoothly. Variance in scheduled work flow takes place when:

  • things are “discovered” on site;
  • the project takes longer to complete due to delays; or,
  • the works cost more than the parties originally contracted for

Why claims arise?

While bidding for any construction project, a contractor makes certain assumptions. They assume that:
  • The scope of work has been appropriately defined
  • The contract specifications, designs and drawings have been drafted correctly
  • The owner has fulfilled any conditions necessary for the contractor to begin work
  • The sites conditions as represented by the owner are true
  • The schedule provided is complete and correct

Contractors tend to assume that the owners are on the same page as them during the signing of the contract. Claims on the project will arise, if these or any other assumptions made by the contractor are not valid. However, in course of execution of the contract, the employer deviates from the promises & the representations made by them in the contract, and also otherwise fails to provide the contractually stipulated assistance, as and when required and this is primarily occasioned due to divergence in the interpretation of the contact as aforesaid. This situation act as catalysts for a contractor to raise claims against the employers.

Prima facie a contractor may make a claim against the employer for more time and money (loss and expense) spent and for the cost of changes to the works (as variations or as a quantum meruit). Types of contractor claims are broadly categorised as:

  • Delay claim
  • Disruption claim
  • Acceleration claim
  • Change of Scope claim
  • Payment claim
  • Prolongation claim
  • Termination claim

 

OUR EXPERT SERVICES – how we can help you

Our expert team has diverse experience and capabilities that allow them to address each client’s specific issues from the perspective of the unique demands of construction claim management. Our experts are well experienced to identify the nature of our client’s claims be it significantly technical, overwhelmingly difficult or quantitatively complex.

Our expert claim and dispute handling team will
  • identify the key defaults / delay of the employer and key disputes between you and your employer, arising out of and in connection with the construction contract;
  • provide discovery assistance – identification of critical communications in the contract repository that would work as substantive evidence;
  • provide quantification assistance and validation of claims arising out of
    • Differing site conditions
    • Construction change
    • Loss of productivity
    • Schedule delay
    • acceleration
    • Suspension and termination
    • Force Majeure;
    • Others
  • identify the claim head and assist you to identify demonstrative evidences to raise the claims through critical communication analysis – exhibit preparation for claim support;
  • assist in preparation of Claims