The basics of construction claims

Summary: Construction claims cost all parties’ time, money and resources. A claim is between the contractor and owner and involves monetary compensation. Understand the different types of claims and evaluate your options, before you proceed with a claim.

One of the biggest causes of delays in construction are construction disputes or claims. These claims cost time, money and resources for all parties involved since work grinds to a halt until there is a resolution to the satisfaction of all the parties involved. Here we look at the basic elements of a construction claim:

What is a claim?

The basic definition of a claim is when there is a demand asserted by one party on another for services specified in a contract. The most common claim in construction is for payment or non-payment for completed work. The claims are always monetary with one side seeking compensation from the other.

Who are the parties?

The two parties in such a claim are usually the contractor and the owner. A contractor might claim compensation for changes to the work schedule, the amount of work, duration, acceleration, etc. The owner might claim from the contractor for failing to finish work by stipulations in the contract.

How do you deal with a claim?

All the parties should understand that a construction claim is a complex process that requires the thorough knowledge and understanding of the facts, the details of the contract and the wording of the law. Before you proceed with a claim, gain a thorough understanding of the details and guidelines of the different types of construction claims.

Article submitted by Lyle Charles. An expert in construction claims analysis for commercial and residential construction.