Archive for the ‘Construction Contracts’ Category

How to Make Sure Your Claims are Accepted

If you wish to ensure that your claims are accepted, you need to bear in mind EC Harris’ (now ARCADIS) report Global Construction Disputes Report. This report cites incomplete and/or unsubstantiated claims as one of the major reasons for construction industry disputes.

A typical scenario that I have experienced on many occasions is when a contractor submits a badly prepared or ‘inadequately expressed’ claim to the engineer for evaluation and the engineer rejects the claim on the basis that the contractor has not proved his case. The engineer is quite correct to do this, because the onus is on the claimant to prove that the claim is just and in such a case, the Contractor has not done so. The Contractor, however, believing that he has good basis for the claim, then refers the matter as a dispute. (more…)

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Claiming Prolongation Costs when there is no Entitlement to an Extension of Time | Can it be done?

It is generally accepted that, in a situation where a contractor is entitled to an extension of time, he is also entitled to claim for time-related costs for the additional time that he was obliged to remain on site. Such costs are usually referred to as prolongation costs.

Are there situations, however, where a contractor may legitimately claim for the payment of costs when an extension of time is not warranted? Well, yes there are. Consider the following example:

The contractor is constructing a high-rise building and has a tower crane on site, which his programme shows is to be removed on a certain date. The contractor however receives a variation order to change the specification of the air-conditioning chiller, which is located on the roof of the building and needs to be hoisted into position by the tower crane. The change to the chiller requires modifications to be made at the factory where the chiller is being manufactured and this will delay the delivery of the chiller to a date later than the date by which the contractor had planned to remove the crane. (more…)

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Omission of Items Included in the Bill of Quantities, but not Shown on the Drawings

I recently received a request for advice from one of our course attendees. I have been asked for advice about this topic on several occasions so I thought it worthy of a blog. The situation and query was as follows: (more…)
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