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Construction Claims and Commercial Negotiations

Construction claims

Many projects experience unexpected delays, disruption or changes to the planned activities which can result in additional costs being incurred.

If these problems were largely caused by the actions of others, then claims for variations, prolongation, disruption or acceleration may be justified. Such action can often mean the difference between a modest profit or a substantial loss on a project.

Alternatively you may have been presented with a claim or liquidated damages and be unsure of what to do next.

Contract Control International (CCI) can evaluate the claim and guide you in managing or defending it.

Claims advice

CCI are specialists in the preparation, evaluation and negotiation of contractual claims and counterclaims.

Advice normally relates to the following issues:

  • Claims for extensions of time
  • Deduction of liquidated damages
  • Payment problems
  • Contract entitlements
  • Damages Claims
  • ADR, arbitration or litigation proceedings
  • Types of claim

    Some typical types of claims include any of the following:

  • Disputed variations
  • Delay and disruption
  • Acceleration costs (or compression of programme)
  • Changes to contract programme
  • Extensions of time
  • Poor quality of late contract documentation
  • Errors in design or "design-as-you-go" approach
  • Suspension of the works
  • Late delivery of purchaser-supplied materials/equipment
  • Changes to site conditions (misrepresented or unanticipated)
  • Late payments or non-payment
  • Claims management

    To recover all legitimate costs incurred, and realise profits earned, proper claims management is just as important as proper project management.

    The familiar "wait and hope", "ostrich", "make no waves", approaches adopted by some parties to a contract, can seriously work to the detriment of these parties. Inaction and stalling invariably results in large sums being left "on the table" and the party "out of pocket".

    CCI can help manage difficult contractual situations to improve the commercial outcome.

    Key elements

    The key elements of a successful claim are as follows:

    • Complete and accurate records and documentation
    • Accurate assessment of contractual entitlements
    • Correctly quantified costings
    • Adopting appropriate strategies
    • Presenting a clear, logically constructed, well reasoned and substantiated claim
    • Maintaining the channels of negotiation with a view to achieving an acceptable commercial settlement

    Commercial negotiations

    CCI has a proven record of successfully negotiating favourable settlements for its clients.

    It has been our experience that the substantial returns achieved through a successful claim far exceed the outlay in its preparation.

    Ideally CCI always prefer to adopt a negotiated and progressive settlement approach to minimise antagonism to working and business relationships relations. CCI is well versed in achieving suitable commercial outcome for clients.