Contract claims in construction

Construction claims are common between parties in a construction contract. Most disputes arise when problems such as delays, changes, unforeseen circumstances, insufficient information, and conflicts affect parties and the contract. Construction claims management has, therefore, become a vital solution to reducing and managing claims as and when they happen. Here some of the most common claims in construction.

Contractors – Contractors can exaggerate claims that can lead to criminal fraud charges. For a contractor’s claim to be valid the contractor will have to prove legal entitlement, cause and effect demonstrated, and documentation must support additional costs.

Clients and their agents – The most common form of claim from clients and their agents will be related to delays. Reduce claims from clients by defining the elements of a project and assigning contractors and subcontractors that are reliable to handle each element. Avoid changing the contract to re-allocate risk, as the party who did not draft the contract will have a favorable position in court. Look at settling the dispute as soon as possible, because the longer the dispute, the larger the settlement.

Tender documentation – When preparing tender documentation, avoid using statements that lead to disputes and open ended phrases that lead to confusion. Ambiguity in contracts can also cause disputes and confuse parties on who is responsible for completion of an element.

Lyle Charles provides experienced consultants who will help manage construction claims and assist with drafting contracts for varying projects.