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Contractors! Are Your Claims Responded to Correctly?

EC Harris’ (now Arcadis) Global Construction Dispute Report has, for many years, cited inadequately expressed claims as being one of the top five causes of disputes in the construction industry.

Although the reports do not specifically mention it, I suspect that inadequately and unfair determinations should also be somewhere near the top of this list. This is because over and over again, attendees at our courses complain that their claims have not been responded to either fairly or in a meaningful way.

So, what is the problem?

If we look at the FIDIC forms of contract as being fairly typical of the widely-used forms of contract, we can see that the Engineer has the following obligations when responding to claims:

  1. Respond to the claim within 42 days – Sub-Clause 20.1 (Contractor’s Claims);
  2. In a case of rejection, respond with detailed comments – Sub-Clause 20.1 (Contractor’s Claims);
  3. Include sums that the Engineer considers to have been reasonably substantiated as being due in interim payment certificates – Sub-Clause 20.1 (Contractor’s Claims);
  4. Consult with each party to attempt to reach agreement – Sub-Clause 3.5 (Determinations);
  5. Make a fair determination in accordance with the Contract – Sub-Clause 3.5 (Determinations);
  6. Give notice to parties with detailed particulars – Sub-Clause 3.5 (Determinations).

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Online Learning | 6 Tips for Success

Online learning has become a great way for busy professionals to study whilst balancing a busy professional and family life…but, as I’ve learnt over the past year, it’s not without its challenges.

First, a bit of background. Over the past 12 months I have been studying a professional marketing qualification through the Chartered Institute of Marketing in the UK, delivered via distance / online learning.

Now, as the General and Marketing Manager of Claims Class, where a part of my role is to manage our portfolio of training courses and students, it has been interesting to experience things from a student perspective and understand first-hand, the challenges that students go through when studying online.

I’ve discussed the pros and cons of online learning, and the types of personality types that thrive in an online environment in another blog and I would say that (more…)

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Late Payment: What Can We Do When We Don’t Get Paid?

What can we do if we don’t get paid?
We get this question a lot.
In some regions, this is less of a problem because legislation is quite strict on payment terms, but in other parts of the world it is very common for the paying party to hang onto their money for as long as possible.

Most forms of construction contract will include some sort of remedy for non-or late payment, so you will need to check what these are on your projects, but as an example, let’s have a look at what the FIDIC Red Book, 1999 Edition has to say about late payment.

Sub-Clause 14.8 (Delayed Payment) states that:

‘If the Contractor does not receive payment in accordance with Sub-Clause 14.7 [Payment], the Contractor shall be entitled to receive financing charges compounded monthly on the amount unpaid during the period of delay. This period shall be deemed to commence on the date for payment specified in Sub-Clause 14.7 [Payment], irrespective (in the case of its sub-paragraph (b)) of the date on which any Interim Payment Certificate is issued. (more…)

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Trying Your Luck – Where do you draw the line with your claim submissions?

I was recently asked a question by one of our distance learning students which, at some time or another, you may have asked yourself. The question was:

Where do you draw the line when it comes to ‘trying your luck’? Is it better to be realistic in your claim submissions, taking your own delays into consideration, or do you submit all, knowing that they’re incorrect, and wait for the Engineer to ‘catch you out’?’

Obviously, a scenario where the claim is solid and difficult to refute is preferred, but there will often be ‘grey’ areas when it comes to entitlement or quantum. When preparing claim submissions for clients, we give our client the benefit of the doubt within the claim and if the Engineer notices these or disagrees with them, then this will be a basis for negotiation. It’s always good to give the other side something where they can score a few points to show that they are doing their job. To answer the question though, I think that there should be two parts to my answer. (more…)

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Practical Use of the FIDIC Contracts Intermediate E-Course | Accepting Trial Students!

You may have seen last year that Claims Class has stepped into the world of online learning and to kick things off, we launched our Construction Claims Basic and Construction Claims Intermediate E-Courses in 2017.

We’re starting 2018 on a high and our second course, the Practical Use of the FIDIC Contracts Intermediate E-Course is ready to go and we’re running a trial launch.

Before we get into the details, if you’re thinking that you would rather not be a trial student then let me reassure you. Whilst this is a trial launch, all video content, resources, assignments and tutor support will be delivered EXACTLY as they would be if you were to sign up during the official launch. During the trial period, we simply want to ensure that we have created: (more…)

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