Claim, in general, is used for affirmation of rights to money, property or any asset. Construction Claim is the request put forward by either party to the specified in the contract, usually the Contractor, for compensation for damages caused by failure of the other party to fulfil his part of obligations as specified in the contract.
If a claim is not approved or if there exists a difference of opinion between two or more existing arties, then it leads to dispute.
The modern construction industry is burdened by the number of claims. Claims significantly impact the cost, timeline and opportunity cost of the project.
While most of the claims are usually resolved amicably or by negotiation between the participants, it is observed that few claims often turn into disputes. Some of these claims are listed below:
Ultimately having a proactive approach and unambiguous communication reduces the likelihood of claims. Clearly defining everyone’s roles and responsibilities and clearly establishing a line of authority with frequent communication in the development of the project is a good place to start.