A complete overview on construction claims

 A construction claim is the declaration of a right that needs either more time or/and payment by either party of the contract for compensation of the losses brought on by the other party's failure to uphold their part of the responsibilities as defined in the contract. Construction claims often result from efforts made by contractors, clients, and subcontractors in the situation of meeting their objectives and goals to increase their advantages. 

One of the primary causes of construction claims is alterations in the project design or scope. These changes can result from omissions, errors, inconsistencies or ambiguities in the contract documents, or from the owner's requests for additional or different work. Changes can affect the schedule, cost, and quality of the project, and may need adjustments to the contract terms. Postponements in the project delivery can also carry on construction claims. Factors like labor, weather, or material shortages, site conditions, coordination issues, or other unanticipated events can cause delays. These postponements can have an influence on the project end date and cash flow. Another factor causing claims is material defects or workmanship. These can result from non-compliance with specifications, poor quality control, or negligence. Defects can affect safety, project performance, and aesthetics, and may need repairs or replacements.


Claim types

Different construction claims types exist based on the nature of the issue. Variation claims are for additional payment or time because of changes in the scope or design of the work. Delay claims are for extension of time or compensation for loss of profit or productivity after postponements in the project delivery. Disruption claims are for compensation for augmented costs or inefficiencies owing to workflow disruptions. Acceleration claims are for compensation for additional resources or overtime required to speed up the work to meet the project time limit. Termination claims are for compensation for the costs or damages incurred because of one of the parties terminating the contract. Finally, defect claims are for compensation for the costs or damages caused by material defects or workmanship.

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