The claim issues generally arise from the interpretation of the situations and clauses by the concerned parties. Problems also come out due to improper action of the parties contrary to the required manner or in the required period.
In our observance most of the claims arises due to human failures like negligence, inaction, inertia, delay in action, compromise in quality, planlessness, imperfection, fraud, misinterpretation, skin saving tactics, lack of contractual and technical knowledge, irresponsibility, reluctance to take obligation and many more ills are there which are showcasing that the Construction Sector is yet to be empowered with proper Project Management Culture.
Why do claims arise under a construction contract?
Construction projects rarely run entirely smoothly. Additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the projects takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
- A contractor may have a claim against the employer relating to a delay or a change in the works.
- A professional consultant may have a claim against the employer for non-payment of fees or breach of Contract.
- The employer may have a claim against:
- the contractor for a delay to the works or a defect in the works; or
- the consultant for failing to properly design or supervise the works.
A contractor may claim against the employer for more time and money (loss and expenses) and for the cost of changes to the works (as variations or as a quantum meruit ) A claim for an extension of time:
- The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
- Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
- It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
Need for Claims Maangement form Project Inception
Appropriate Project Planning and implementation is key to avoid claims. However, the pursuance for claims shall be started from the inception of the project itself. Many times claim event lapses due to lack of action in time and with proper evidence and documentation.
Professionels is expert in Claims Management and from identification of claims to realization – the experts at Professionels will apply synergetic strategies and intervene in creative ways to strengthen the claim chances. It is important to note that Claims Management is not an stand alone solution – it will play a role of Key Project Control and set right many issues in the project.
Contact Professionels at: [email protected] Mobile: 91 88851 97533
Further Reading: The Importance of Construction Claims