In the construction sector, litigation is quite common. Construction companies and contractors must manage a variety of risks, such as workplace safety, legal issues and financial risks. Claims and disputes can lead to serious financial consequences. Construction companies are particularly vulnerable to legal claims and litigation even years after the work has been completed. Therefore, it is important to understand the importance of claims management and take measures to avoid them. Here we share with you some common types of claims that construction companies should look out for:
Note: The list is not exhaustive but will give an idea of the general types of disputes that result in litigation.
Common types of claims
1.Injuries
Construction sites are among the most dangerous places for workers. When accidents occur on a construction site, a claim is often filed against the construction company or contractors for compensation. The accident could involve workers or passersby.
2.Change in scope of work
When the contractor gets a change order from the client once the work has already started, the contractor may raise a claim for the additional expenses. If the owner and contractor disagree on who will bear the additional expenses, either of the parties can raise claims.
3.Damage
Property damages may occur due to the act of the owner or contractors or subcontractors or due to safety-related problems. The damage could be to the owner’s property or adjacent property. The client can file a claim against the contractor to bear the expenses of the damage. responsibility for the site.
4.Delay in project completion
Construction delays are among the most common disputes that arise on projects. However, the process of establishing and proving a delay claim can get complicated as there are many stakeholders involved. Claims could occur due to:
●Delays in handing over the site
●Unavailability of materials
●Payments being stalled
●Designs being changed
●Inadequate information related to design
●Failure to follow authorised procedures
5.Change in Site Conditions
This type of claim occurs because the site conditions are not as specified in the contract.
6.Construction defects
Construction defects claim is often filed long after the contractor has finished the job. The client files the claim saying the work has some defects.
How can construction avoid construction claims?
In the construction industry, it is not possible to completely avoid claims. However, by hiring a construction claims consulting company, companies can ensure that all the documentation, correspondence, review, analysis, and evaluation are properly done to strengthen the case. Here are some ways how construction claims consulting company can help avoid construction claims:
a). Well-written contracts
When a contract agreement is well-drafted, fairly divides the obligations, and monitored continuously, the chances of disputes go down. If there’s any dispute, the well-drafted contract helps in an amicable settlement. The contract experts at Contract Square help construction companies in the administration and execution of contracts.
b). Good record keeping
We, at Contract Square, take over all the documentation, correspondence, review, analysis, and evaluation for our clients. This leaves them to concentrate on the project while we handle all the paperwork.
c). Monitoring of project
Our experts review and continuously monitor the project. If there’s any deviance from the same, we keep written records of it. These written-records come in handy to avoid claims or to settle claims amicably.
To know how we can help your construction company, call us at 9903023893 or mail us at enquiries@contractsquare.co
