A construction claim, sometimes referred to as a building claim, is the assertion of a right to additional time and/or compensation as a result of an event affecting the build process. In all building projects, construction claims can sometimes arise. Frequently, clients, contractors, and subcontractors strive to meet their own objectives and expectations in order to maximise their own gains. Conflicts may come from parties’ divergent objectives and expectations. Inadequate project planning, alterations in the scope of work, and errors and omissions are just a few of the many causes that can lead to project delays.
Disputes that threaten the successful completion of a building project may develop if conflicts are not managed effectively. In this article, building claims, we take a look at the process involved and the options available to you.
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What are the different types of building claims?
There are numerous instances in which a claim against a contracted party is justified. These can include the following:
Claims over contested variations
Almost every construction project deviates from its initial design, scope, and description. Construction projects, whether small or large, will almost always deviate from the original tender design, specifications, and drawings submitted by the design team.
This could be due to technological innovation, legislation changes or enforcement, a change in conditions, geological anomalies, the unavailability of specified materials, or the continuous development of the design after the contract is given. Variations can be extremely significant in big civil engineering projects, although they might be relatively trivial in small construction contracts.
Variations may consist of:
- Modifications to the layout.
- Alterations to quantities.
- Variations in quality.
- Changes in working conditions
- Modifications to the work sequence.
- Variations may also be presumed to exist if the contract documents do not adequately represent the actual scope of service.
Claims relating to extensions of time
An extension of time is a provision in the majority of conventional contract forms, and allows for a change in the anticipated completion date owing to unforeseen circumstances.
Examples of such conditions include, but are not limited to:
- Unfavourable climate conditions
- The commission of terrorist acts
- Strikes
- Force majeure
- Variation-specific job instructions.
One of the key goals of extension of time clauses in contracts is to preserve the effectiveness of the liquidated damages provisions, which is of advantage to the employer.
Claims associated with disruption to works
On construction projects, particularly larger and more complex ones, disruptions and attempts to recuperate damages incurred as a result of disruptions are common.
The distinction between disruption and delay is that the latter pertains to tardiness as opposed to productivity, although the two concepts are sometimes interrelated. Disruptions can be caused by delays, and vice versa. Despite their interdependence, they involve distinct approaches to evaluating claims.
Prolongation cost
Prolongation costs are the additional expenses incurred by a contractor as a result of an occurrence that is the fault of the other party delaying the conclusion of the project (usually the Employer). Such occurrences may include failing to provide the contractor with ownership of the site by the date stated in the contract, or delays in providing instructions, etc.
As a result of needing to remain on site longer than planned, the contractor may incur additional expenses, such as increased labour costs, plant costs, off-site overheads, fluctuations, etc.
Why do claims arise in construction?
There are often complications involved in the construction of any commercial or residential building. It is possible that the size of the project has no bearing on the degree of difficulty, the quantity of additional labour necessary, or whether the construction will take longer and cost more than anticipated.
A contractor may have a claim against the employer for a change or delay. Additionally, the employer may have a claim against the contractor for another delay or defect. In light of this, the employer’s expert consultants and advisors may be required to determine any claims from the employer to the contractor or from the contractor to the employer under the construction contract’s terms. If subcontractors file a claim against the contractor for delays, changes in specifications, or faults, further issues develop.
The role of a construction lawyer
A construction lawyer will be able to advise clients on their rights, entitlements, and responsibilities under the construction contract. This means that they will be able to describe the concepts that will be used to determine if they are entitled and, if so, how much they will receive.
It is crucial that the legal expert you hire has extensive experience representing clients in such matters. Before hiring a construction solicitor, you should inquire about their previous experience. After determining that they are capable of handling your case, you should proceed.
How we can help
We have a proven track-record of dealing with building claims. Not only does our construction department have extensive legal experience and knowledge of construction law but we also have the benefit of chartered surveying experts. The nature of these disputes often involves potentially complex areas of law. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Construction Solicitors
It is important for you to be well informed about the issues and possible implications of making or defending a construction claim. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Construction solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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