The Cycle of A Poorly Written Construction Claim
It is no secret that poorly written construction claims are one of the main causes of time-consuming and costly disputes.
However, the dispute process often finds in favour of the claimant.
Why is this?
Let’s look at a typical claim and dispute cycle:
- The claimant submits a construction claim that does not include: Cause, Effect, Entitlement and Substantiation (CEES).
- The respondent rejects the claim because it does not prove the claimant’s case.
- Discussions and negotiations take place, but the parties maintain their positions.
- The claimant is convinced that the claim is a fair one and elevates the matter to a dispute.
- At this point, the claimant realises that the claim needs improvement. They consult an expert.
- The expert confirms that the claim is poorly written. They advise that if it has any chance of persuading adjudicators or arbitrators in favour of the claimant, it needs improvement.
- The claimant engages the expert to improve or rewrite the claim.
- The adjudicators or arbitrators decide in favour of the claimant.
- The respondent agrees with the adjudicators or arbitrators, and would have made an award if the claim was properly presented in the first place.
So here's a question...
Wouldn't it have been better for the claimant to submit a well written construction claim in the first place, saving all parties time and money?
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How To Avoid Disputes From the Outset
Hewitt Decipher Partnership recently presented a webinar on international arbitration. Panel members included a barrister, an arbitrator and a solicitor. They were joined by HDP employees who provide expert advice to legal professionals working on construction disputes. The aim was to look at how to avoid claims.
Whilst these professionals earn fees from disputes, the overwhelming consensus was that the best way to deal with disputes is to not have them in the first place.
So, what can we do to avoid disputes right from the start of the project?
Increases in Material & Other Costs
The consultancy side of our business has recently received enquiries along the lines of the following. “We have come to the end of our project and are facing a huge loss due to increases in the cost of materials and shipping and because of measures that we have had to adopt to control COVID-19. What can we do?”
FIDIC 1999 Claims
A Guide to Claims for Extensions of Time and Additional Payment Under the Red, Yellow and Silver Books
A new book by Andy Hewitt, FICCP, FCIOB, FCICES, FQSi
Inadequately expressed claims are one of the most frequent reasons for time-consuming and costly disputes. Andy Hewitt’s latest book examines the FIDIC Red, Yellow and Silver Books. He takes a look at each clause that provides entitlement to make a claim for an extension of time and additional payment.
Andy explains in practical terms the interpretation and application of clauses. He also discusses FIDIC procedures for:
- The giving of notices.
- The submission of detailed particulars of the claim.
- The Engineer’s responses and determinations.
Interim Claims
How To Deal With Them
One of our Claims Class students asked for some advice on interim claims. It is a topic that often crops up, so I thought that readers of this blog might also benefit from some practical advice.
The principles discussed here are appropriate to many forms of construction contracts. However, for the purpose of this article I shall use the 1999 FIDIC contracts as an example.
FIDIC 2017 Notices
A guide to the requirements, content and composition of notices under the FIDIC 2017 Red, Yellow and Silver books
Some of the biggest mistakes that contractors make when it comes to claims under FIDIC 2017 relate to notices. Such failures include failure to:
- Give notices when obliged to do so by the contract.
- Give notices within the time frames specified in the contract.
- Properly identify communications as notices.
- Record the necessary information within notices.
- Cite the contractual clause under which the notice is given.
- Address and/or copy the notice to the correct party.
- Deliver to the notice to the place specified in the contract.
- Deliver to the notice by the means of communication specified in the contract.
Claims Class Helps Student Secure US$1 Million
This month I am going to allow myself to pat myself on the back, because of a success story from a recent Claims Class student.
A gentleman from an African country contacted me to discuss enrolling on one of our claims courses. He had found out about Claims Class after purchasing a copy of my Book FIDIC 1999 Notices. This is what he told me.
What is Included in 'Lump Sum'?
A simple matter that often causes confusion is exactly what a lump-sum price includes.
Take a typical contract designed by the employer. The contractor is required under the contract to provide the works defined on the drawings and in the specification. In other words, the drawings show the extent and the configuration of the design. The specification describes the composition and quality of the work. Thus, it is clear that the lump-sum requires the contractor to provide whatever is included in the drawings and specification.
The Difference Between A Claim to the Engineer & A Claim in Arbitration?
A student recently asked, "is there any difference between a claim submitted to the Engineer and one submitted for arbitration?" My response was along the lines of “Yes, there frequently is, but there shouldn’t be”.
The Scenario:
Let me explain why by describing a very frequent scenario related to claims.
Claims for Additional Preliminaries as a Result of Variations
Variations - something that comes up a lot in our courses. One question crops up time and time again. Does the contractor have entitlement to payment for additional preliminaries arising from variations?
The short answer to the question (as usual) is that it depends.