What is construction claim analysis and its key elements?

Contract Square Services

Construction projects are generally complex and go on for months, depending on the scope and complexity. Delays, differing site conditions, cost overruns, contract errors, and poor quality of construction are some of the major reasons that lead to claims. The preparation and analysis of claims in construction projects can be a complex undertaking. It involves various steps and one of the most important things is that every claim requires a different approach. So, it is advisable to hire a reputable and experienced claims management solutions provider as they can document, review, analyze, and evaluate claims so that their clients receive just awards.

Here is the list of key elements of construction claim analysis:

1.Determine entitlement under the contract: Many times the narrative of a claim does not address the actual contract provisions. Every clause has different requirements for notices, what the contractor is entitled and what is allowed for the delay. So, it is essential to cross-check different provisions such as the change-order clause, severe weather clause, delay clause, suspension of work clause, no damages for delay clause, and more.

2.Identify proper documentation related to the claim: Documentation is another key element of claim analysis. Without proper documentation claim analysis is incomplete as there is a high possibility of missing out on some important document. It is essential to do an in-depth review of contract terms and conditions. It is essential to go through daily reports, emails, and other communications to cross-check so that no information is missed out in the construction claim analysis.

3.Verify the timely notices: Another necessary thing that needs verification is whether adequate notice was given at the time of the claim or not. The allotment time may vary from claim to claim. So, it is essential to check this as any discrepancy or delay in the allotment time can waive off the construction claim altogether. Proof of receipts of submitting the claim can help in knowing the exact date of the claim notice.

4.Ensure there are no waiver/estoppel issues: Claim needs special scrutiny for any kind of waiver or estoppel issues. One of the most common is conditional and unconditional lien waivers.
●Unconditional waiver: Here the right to file a lien regardless of whether it is paid or not is surrendered.
●Conditional waiver: Under conditional waivers the right to file a lien upon payment is surrendered.

5.Analyse delays through the lens of project schedules and contemporaneous records: This is one of the most important areas to check for. Check if the as-planned schedule (sequences, durations, and scope) is reasonable. The entirety of the original contracted scope of the work and as planned schedule must be cross-checked.

Looking for a claims management solutions provider?

To ensure cordial settlement, likand avoid any disputes or legal hassles, proper claim analysis is important. A claims management solutions provider Contract Square Pvt Ltd can help you with the claims management process involving timely identification, analysis, quantification, evaluation, and document submission of the claims. They offer complete claims management assistance for the speedy resolution of any claims.

To know how we can help your company, call us at 9903023893 or mail us at enquiries@contractsquare.co

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