Claims is inevitable in construction industries. Generally, all contracts define the primary relationship among parties to a construction project, thus forming the basis of all claims. General and Special conditions of clauses in contracts, the documents in a contract, the schedule, drawings and specifications etc. are the basis of claim preparation. It is often found that misunderstanding and misinterpretation of these clauses 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?
During the execution of project, certain assumptions which were made during formation of contract get change as below but not limited to:
- The scope of work
- The contract specifications, designs and drawings
- The owner obligations and responsibility
- The sites conditions
- The schedule provided in the contract
Claims on the project will arise, if assumptions made in the contracts deviates during course of execution of the contract, the employer or contractor 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.
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). The types of additional costs and resulting damages that are experienced by a contractor or owner because of specific events, actions or inactions are likely to vary, but typically include one or more of the following but not limited to.
- scope changes / variation cost
- acceleration-related costs
- delay-related costs / prolongation cost
- disruption-related costs
- termination-related costs
- loss of productivity related cost
- loss of opportunity related cost
- loss of reputation related cost
CLAIM MANAGEMENT – How Can we 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.
We provides construction and engineering claims analysis and expert testimony services. We quantify damages, prepare full and detailed claim related
reports with back up techno-commercial justifications, assess values, prepare formal reports and provide oral evidence for a wide variety of claims and
disputes including breach of contract, extra works, tort and breach of treaty obligations.
Our team members regularly serve as expert witnesses before clients, courts, tribunals and other decision-making bodies. In these forums, we provide
articulate, relevant and reliable testimony on matters of fact or opinion. Our familiarity with all aspects of the technical matters, contractual issues,
litigation and arbitration process enables us to help clients plan and implement appropriate dispute resolution strategies and increase their profitability.
Following tasks are performed as part of our construction claim services work:
- identify the key defaults 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
- Suspension and termination
- Force Majeure;
- identify the claim heads and assist you to identify demonstrative evidences to raise the claims through critical communication analysis – exhibit preparation for claim support and Prepare Contractor’s Claims and Owner’s Counter-Claims documents/folders.
- Undertake assignments from start to end for claim dispute management for contractor/owners.
- Prepare Detailed Damages Analysis
- Claims for specifications/contract deficiencies
- Assess Owner’s Responsibility for Direct Cost Issues
- Assess Responsibility for Quantity Overruns
- Assess Contractor’s Responsibility for Performance Problems
- Assess Responsibility for Unresolved Change Order Requests
- Prepare cost of delay model and allocate Contractor’s or Employer’s Delay Costs
- Analyze and Allocate Loss of Productivity Man-hours and Costs
- Assess Liquidated/Actual Damages
- Undertake discussions with the stakeholders & bring the claim to its conclusive outcome.
- Assessment of compensation based upon Schedule Delay Analysis for allocating culpable and non-culpable delays