How to Manage Delays and Change in Lump Sum Contracts
Lump sum contracts are one of the more common forms of agreements in the construction industry. They provide the client with a degree of price certainty, as the contractor agrees to complete the works for a single, pre-agreed amount. However, while this arrangement may seem straightforward, it often hides complex risks. This is particularly true when delays or variations occur. Understanding how lump sum contracts allocate risk, handle changes, and address extensions of time is critical for managing delays and avoiding disputes.
What is a Lump Sum Contract?
In the construction industry, the term “lump sum” is often used interchangeably with “fixed price,”. However, the two are not entirely synonymous. A true fixed price contract would make no allowance for any fluctuations in costs of labour, plant, materials or overheads throughout the construction period.
A lump sum contract involves the contractor agreeing to complete a defined scope of works for a single, pre-agreed total price. However, there is usually some opportunity for variation under specific conditions. These include issues such as changes to the design or scope, or where the client instructs modifications. Nevertheless, the mechanisms for such adjustments are far more limited than in other contractual arrangements. As a result, lump sum contracts are often viewed as transferring a greater share of risk to the contractor.
Change Management under Lump Sum Contracts
A common source of dispute under lump sum contracts is change management. Even with the best planning, variations are almost inevitable in any construction project. The challenge lies in how these changes are managed and compensated. Under a lump sum arrangement, disagreements often arise over whether a particular change constitutes a variation to the original scope, and if so, how it should be valued.
Such disputes can lead to delays, cost overruns, and strained relationships between parties. The key to avoiding these conflicts lies in the clarity of the contract documentation at the outset. A precisely defined scope of works, clear design details and unambiguous tender documentation are essential to minimising the chance of misunderstandings arising. Although this may result in a longer and more expensive tendering process, it can greatly reduce the potential for disputes during execution.
Extension of Time
Most standard forms of lump sum contracts recognise the need to allow for unforeseen circumstances. These are often dealt with by provisions for an extension of time (EOT). Should the contractor be responsible for this delay, there is very little recourse for them to claim for an EOT. However, variations instructed by the client (such as delays in the provision of information, adverse weather conditions, or other events beyond the contractor’s control) can give rise to an entitlement to an EOT. When granted, an EOT relieves the contractor from liability for liquidated damages for the extended period.
However, whether the contractor is entitled to the prolongation costs depends on the precise terms of the contract. Some contracts provide only for additional time without financial compensation. This leaves the contractor to shoulder the cost of their overheads and extended site presence.
Risks
Understanding these nuances is vital for contractors and clients alike. Lump sum contracts, while offering price certainty to the employer, can impose heavy burdens on contractors. It is vital that risks are properly identified and managed. The key to success lies in a combination of careful planning, clear communication, and sound legal and commercial advice.
Contractors should ensure that they fully understand the contract provisions relating to variations, EOT, and risk allocation before signing. Equally, employers should recognise that an overly rigid approach to scope or change management can undermine project collaboration and ultimately increase costs.
In conclusion, lump sum contracts can be effective tools for delivering projects within a defined budget. However, they demand meticulous preparation and awareness of the risks involved. Parties should seek legal representation or professional consultation to interpret the contract provisions accurately. It is important to understand which mechanisms are available to mitigate potential delays and additional costs.
By taking a proactive, informed approach, contractors and clients can navigate the challenges inherent in lump sum contracting and achieve successful project outcomes.
This article was written by Lydia Garside at DeSimone.
If you are looking to improve your contract administration procedures, and get a better understanding of managing claims under lump sum contracts, check out our Effective Contract Administration E-course.
E Courses | Laying the Foundations: Inside the Classroom
Take an in-depth look into our e-courses on construction contracts. Behind every successful construction project is a story — of a contract challenged, a project saved, or a career transformed. Do you want to find out how the blueprint for career growth is drawn from real experiences?
In this webinar, Andy and Nina walk you through our courses and how they help you gain the skills to manage complex construction contracts and claims with confidence.
More importantly, you’ll hear directly from former students, seasoned professionals who turned everyday challenges into opportunities by mastering the art of construction contract and claim management.
This isn’t your typical webinar. It’s a behind-the-scenes look at how our courses ignite change, sharpen skills, and open doors. Through candid stories and a Q&A, you will:
- Learn why technical knowledge alone isn’t enough in today’s construction industry.
- Hear what our students gained from our courses, and how they’ve put it into practice to lead with confidence.
- Get an insider’s perspective on our course content, structure, and student support.
Whether you're managing a project or planning your next career move, this webinar could be the turning point.
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Failure in Contract Administration - A Leading Cause of Disputes
I have just completed a training course for a large contractor based in the Middle East. The title of the course was the The Practical Use of the FIDIC Contracts. The attendees were contract managers and contract administrators. The course consisted of weekly 2-hour online tutorials over a period of 6 weeks. After each tutorial, the attendees were given some case studies to examine. They then submitted assignments for grading.
After the first two week’s assignments had been submitted, I was able to reach the following conclusions:
- Despite most of the contractor’s projects being FIDIC contracts, the attendees had very poor knowledge of the contract.
- Many of the attendees based their answers on usual practice and what had been done previously, rather than the actual contract provisions.
- Most of the attendees failed to justify their answers by making reference to the contract.
Contracts managers and contract administrators are responsible for ensuring that:
- The contractor complies with his/her contractual obligations.
- The contractor receives any rights and remedies contained in the contract.
- The employer and engineer act in accordance with the contract.
Given the above, these gaps in knowledge present many risks for the contractor. There was no doubt that the training had benefit. As the attendees worked though the course and followed our advice, not only on the conditions of contract, but on how to deal with contractual matters, their grades improved.
Studies on international disputes over many years have revealed that some of the leading causes of disputes are:
- Failure of the parties to comply with contractual obligations.
- Failure of the project participants to understand the contract.
- Inadequately trained and qualified persons responsible for contract administration.
Our client’s contract administration clearly needed improvement. Hopefully our training has gone some way towards avoiding contentions and disputes on their projects. This company realised that they had a problem and took steps to provide a solution via staff training. Unfortunately, many companies continue to get things wrong, finding themselves in difficult and costly situations.
So, for those facing similar problems, here are my top tips for effective contract administration:
- Ensure that you have adequately trained and qualified staff on the project to deal with contractual matters.
- If you do not have such staff, seek the advice of others, perhaps from head office or external consultants.
- Ensure that you understand your contract and comply with your obligations.
- Be aware of the obligations of other project participants and check compliance.
- Ensure that your project procedures, including any forms and templates are in accordance with the contract.
- When dealing with contractual matters, justify your position by reference to the provisions of the contract.
I hope this helps you to provide effective contract management and to avoid contention and disputes. For those looking to improve their skills in contract administration, this e-course may be of interest. Or for team training, get in touch directly to discuss your needs.
Construction Claims: 8 Important Principles
I recently presented our Construction Claims training course to a government department in Africa. As part of the practical nature of the course, we asked the attendees to complete an assignment to test their knowledge. When grading the assignments, it became clear to me that certain important principles were often misunderstood. I therefore thought it would be worthwhile to replicate them here for the benefit of our Claims Class community.
Principle 1: Incorporating Changes at Tender Stage
Question: How should changes to tender drawings (issued through a tender addendum) be incorporated into the contract documents?
Sometimes, during the tender process new information or errors come to light or the scope of work changes. Often tenderers raise queries which are addressed and clarifications are issued to all the tenderers.
The tenderers then price the work based on the revised information. This information must subsequently be incorporated into the contract documents. The way to do this is not to simply include the tender addendums or responses to requests for information as supplementary documents. to the correct way is to incorporate the information by changing the contract documents to reflect any changes during the tender period. This will avoid confusion, ambiguities and possible contention as the project proceeds.
Principle 2: Measuring Variations on a Remeasurable Contract
Question: On a remeasurable contract, how are variations taken into account?
Under a remeasureable contract the whole of the works are remeasured. The contractor is paid based on the actual quantities provided which are valued at the contract rates and prices. The contractor will be paid on the basis of the remeasured works – whether the quantity of work increases or decreases.
The remeasurement will therefore include any changes brought about by variations.
Principle 3: Measuring Variations on a Lump-Sum Contract
Question: On a lump sum contract, how is the Contractor compensated for variations?
If a variation is instructed on a lump sum contract, the works affected by the variation must be measured and evaluated separately in order to calculate the value of the varied works. This value will them be added to or omitted from the contract price.
Principle 4: Costs Associated with Extension of Time Claims
Question: Should costs associated with an extension of time be based on the resources being used during the time of the delay or the extended period?
A claim for prolongation costs is a claim for actual time-related costs incurred as a result of the delay. This means the costs that have been incurred during the period of the delay and not the costs incurred during the extended period. The following illustrates the principle:
- Contract period 1 January to 31 December
- Period of compensable delay – 30 days during July
- Effect on the critical path and the completion date – 20 days until 20 January, Year 2
- Prolongation costs incurred – 20 days during July.
The costs must be time related costs. Typically they would include site management and admin, time-related labour, site establishment, non-productive plant and equipment, insurances bonds and guarantees and head office overheads,
It is essential to substantiate the claim with detailed records of the resources deployed during the time of delay and cost records.
Principle 5: Preliminaries
Question: May the preliminaries or general items be used to calculate costs?
Most forms of contract allow for payment of ‘cost’ or ‘loss and expense’ for compensable events. Cost is defined as actual cost incurred by the claimant. Therefore, they may not be derived from notional estimates such as those included in the preliminaries or general items sections of the bills of quantities.
Principle 6: Notices
Question: Why are notices usually a contractual requirement?
Notices are a contractual requirement to formally advise parties of events that may affect their rights, obligations, and the contract’s performance. They serve as a trigger point for specific procedures, such as claims or variations. Correctly used, they help prevent disputes by allowing transparency and proper communication.
In most contracts (e.g., FIDIC, JCT, NEC), notices are required to notify the employer or project manager of potential delays, claims, or changes. These notices often include strict timeframes. This allows the affected party sufficient time to investigate, respond to, or mitigate the impact of the event.
Failure to issue a notice within the prescribed period can result in loss of entitlement to claims, even if the contractor has a valid case. This is because there must be a fair opportunity to address the issue, minimise costs, or adjust the project schedule accordingly.
Ultimately, notices promote good project management. They ensure timely communication of key events, preserving contractual rights, and reducing the risk of disputes.
Principle 7: Cause and Effect
Question: What must be linked to the cause of a delay in order to demonstrate entitlement to compensation?
Linking cause and effect in a delay claim is essential to establish entitlement to an extension of time and prolongation costs. A delay claim must demonstrate a clear causal link between the delay event (cause) and its impact on the project’s critical path (effect) and thus the completion date.
Without this link, a contractor’s claim may be rejected on the grounds that the event didn’t actually cause any delay to project completion. Merely stating that a delay event occurred is insufficient; the contractor must demonstrate how the event impacted key activities and prevented progress on critical tasks. This is usually achieved by way of a suitable delay analysis.
Establishing cause and effect establishes the claim is valid, credible, and defensible. It allows the employer to assess liability fairly. Clearly identifying the responsible party and impact on the schedule and will help to avoid or resolve disputes.
Principle 8: Time Impact Analysis
Question: A time impact delay analysis compares two programmes to calculate the effects of a delay event. What are the two programmes used in the comparison?
Time Impact Analysis is a prospective method of delay analysis. It is used to assess the impact of a delay event on a project’s critical path and completion date. The process is as follows:
- Update the current programme for progress for the date immediately before the delay and note the predicted completion date. Progress before the delay may have affected the completion date, but this needs to be allowed for.
- Insert a fragnet to illustrate the delay into the updated programme. Ensure that the appropriate logic links are included and note the predicted completion date including the delay.
- The difference between the two completion dates is the number of days extension of time caused by the delay in question. This should be added to the prevailing completion date to calculated the revised date.
This method is favoured for claims because it takes into account progress before the delay. It only calculates the effect of the delay which is the subject of the claim.
A time impact analysis is most effective when used in real-time, during the project, to assess ongoing delays. It provides objective evidence of whether a delay justifies an extension of time. It will also quantify the duration of the extension based on the actual impact on the project schedule.
Want to learn more about construction claims? Check out our Construction Claims Intermediate E-Course and get the confidence you need to manage claims effectively.
A Guide to Fair Pricing: Mastering Construction Cost Adjustments
Fluctuation provisions in construction contracts are designed to adjust the contract sum. This might be needed to reflect changes in labour, material, and associated costs. By adding fluctuation clauses, you can mitigate the risk of price volatility during the project.
However, in my experience, these provisions are rarely included in contracts. This often stems from a reluctance by the employer to assume the potential risk of significant price increases. Often the contractor is left to bear the full burden of material price fluctuations. This risk can be substantial and difficult to predict, especially on multi-year, large-scale construction projects.
What can you do if labour and material costs rise?
Let me put this into a relevant real-world context. Back in 2022, I acted as the commercial lead on a project just as the global pandemic was ending and war in Ukraine was looming. Working for the main contractor, my role was responsible for the procurement of the supply chain, and it turned out to be a testing experience.
The tendering steelwork contractors would not fix their quotations for more than a day due to the volatility in the market. Other contractors were also reluctant to quote on fixed prices for works too far into the future, unless a margin of safety was included in the contract sum.
Taking that stance in such challenging times was completely understandable. Our issue, as the contractor, was that the contract we had in place with our employer was agreed in 2021 on a fixed-sum basis.
A deed of variation
Thankfully, the employer understood the position and showed empathy. They accepted that their main contractor was facing a tough situation, which could even be potentially business ending.
Through a process of negotiation, we agreed to a deed of variation to increase the contract value. But it wasn’t a simple process and took a great deal of time and substantiation — and, ultimately, led to a delay to the original completion date.
Looking back in hindsight, that was the right decision and an example of the best face of our industry. Official data from the Insolvency Service in the UK, revealed that 4,165 construction firms in became insolvent in the twelve months ending on 31 March 2023.
Three key steps to ensure a successful outcome on your project
Having a provision in your contract for price fluctuations or an employer who is willing to come to an agreement is not the end of the matter. You will still need to compile a credible document that demonstrates why the prices should be amended. When doing so, there are three steps to consider:
1. Establish a narrative
Claimants often identify events in price escalation requests but fail to connect them directly to the cost increases. This leaves it up to the reviewer to infer the link. Provide a clear narrative that explicitly details how specific events caused the price fluctuations and quantifies their impact.
2. Provide relevant index or cost adjustments
The FIDIC form, for example, often utilises cost indices to calculate price adjustments. These published indices provide a clear and consistent method. Alternatively, claimants can demonstrate the actual cost difference by comparing the current material price to the originally estimated price.
3. Substantiation
To come to a successful conclusion, you are going to have to demonstrate that the price fluctuation you are claiming is accurate. Good record keeping is essential. The use of indices is a straightforward approach due to the fact they are transparent and publicly available. Even so, you’ll still have to illustrate to the reviewer what the data is telling them, leading them to a logical conclusion. Cost-based adjustments, however, demand robust record-keeping to validate both the original and revised costs.
Documenting and substantiating cost adjustments under FIDIC
Under FIDIC (2nd ed., 2017), Clause 13.7 addresses adjustments to the contract price for changes in the cost of labour, goods, or other inputs. It’s an optional provision that parties can choose to incorporate in their contract.
The application of Clause 13.7 is contingent upon the inclusion of a "schedule of cost indexation" within the contract. This schedule outlines the specific indices and coefficients to be used for calculating the price adjustments.
FIDIC guidance notes suggest that this sub-clause is particularly relevant when it would be unfair or unreasonable to expect the contractor to solely bear the risk of significant cost escalations. This typically occurs in projects with long durations or in volatile markets where price fluctuations are difficult to predict.
This article was written by Steven Woolnough, Chartered Quantity Surveyor, MRICS, MCIOB, MCICES, MCIArb.
To understand more, the practical use of FIDIC 2017 intermediate course covers variations and adjustments. Visit the webpage now to see the full course outline.
When Should You Submit Consolidated Claims?
A Claims Class e-course student recently asked me when to use consolidated claims. This is something that I see contractors frequently get wrong, so I thought it would be a good subject for this month’s blog.
Should I submit a claim for each delay event or a consolidated claim for several delays?
A typical scenario is:
A contractually inept contractor gets to the last few months of the project and realises that they will not complete on time. Consequently they will be liable to delay damages and will incur overrun costs. The contractor then concludes that they need an extension of time to protect them against such risks.
This thinking is incorrect for two reasons. Firstly, most contracts provide that you should submit claims within a stipulated time of the occurrence of the event. This way, they may be dealt with as the project progresses. If you leave a claim until the end of the project, this will more than likely be a breach of contract and may even affect entitlement.
Secondly, good contracts management dictates that the time to submit a claim is when the contractor becomes entitled to make a claim. This differs from when the contractor needs more time or money. Again, this ensures that claims are dealt with as the project progresses and when matters are fresh in people’s minds.
If the contractor leaves extension of time claims until the end of the project, it is likely that several delay events will have occurred. The contractor usually then compounds their poor contract management by submitting one claim that includes all the delay events – a consolidated claim. Again, this is a poor strategy and is why, we always recommend that contractors submit separate claims for each delay event.
Our mantra is one event, one claim.
This has several advantages:
- Several small claims are easier to deal with for all parties than one large, complicated claim.
- It’s easier to prepare several small claims than one large, complicated claim.
- It’s easier to respond to several small claims than one large, complicated claim.
- It’s always better to submit claims within the contractual time frames than waiting for other events to have a knock-on effect.
- If one part of a large, complicated claim is questioned or not agreed to, this will hold up the award of the whole claim. This would not prevent other separate claims being resolved in a timely manner.
So, if you want your claims to be resolved and the time extended before it runs out, always remember this key point - the time to submit a claim is when you become entitled to make a claim, not when you need to make a claim.
Can a FIDIC Engineer Reject the Contractor's Programme?
One question that is often asked by students is “what actions can the FIDIC engineer take after reviewing the contractor’s initial programme?”. Many people think that the engineer may ‘reject’ the programme if he/she has reason to do so, but this is incorrect.
Let’s have a look at what Sub-Clause 8.3 (Programme) of the 2017 Edition of the Red Book has to say on the subject.
Firstly, it includes a lengthy list of requirements and inclusions that the programme should comply with. The detailed wording has been reduced here for clarity:
- The programme shall be prepared using programming software stated in the specification.
- The commencement date and the time for completion, of the works and of each section.
- The date the contractor will be given right of access to and possession of the site.
- The order in which the contractor intends to carry out the works.
- The review periods for submissions.
- The sequence and timing of inspections and tests.
- All activities, logically linked and showing the earliest and latest start and finish dates and the critical path.
- The dates of days of rest and holiday periods.
- Key delivery dates of plant and materials.
- A supporting report which includes:
- a description of all the major stages of the execution of the works
- a general description of the methods which the contractor intends to adopt in the execution of the works
- the contractor’s estimate of the number of personnel, and equipment required on the site.
Sub-Clause 8.3 (Programme) then goes on to deal with the engineer’s actions after receiving the programme for review:
‘The Engineer shall Review the initial programme… submitted by the Contractor and may give a Notice to the Contractor stating the extent to which it does not comply with the Contract …’
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Are Your Project Procedures in Conflict with the Contract
In this article, Andy Hewitt considers what happens when project processes and documents are in conflict with the contract. Read on to discover when to use standard forms and processes and when they can create problems.
Many projects have procedures for administration and management purposes. These are often introduced by the project participants and can include standard forms and/or document templates. Contractors often have company-wide procedures so that staff moving from project to project will always find that things are done the same way. This standardisation is a great idea because the procedures can be improved upon over time. Users become familiar with them, and all this leads to familiarity and increases in efficiency.
It is vitally important to ensure that whatever procedures you use on the project, are compatible with the conditions of contract. If this is not done, the results could be serious. I will give a couple of examples.
Example 1 – Requests for Information
The contractor’s procedures include a form for Requests for Information (RFI) from the engineer. The procedures include an RFI log in which the details of the RFIs are recorded along with the issue and response dates.
The contractor issues an RFI on an important matter which is required urgently to avoid delay. The engineer responds after a considerable period and the contractor is delayed. The delay affects the time for completion.
The contractor submits a claim for an extension of time and the payment of prolongation costs.
The contract provides that if the contractor requires any information from the engineer, they must give notice to the engineer. This notice must state the information required, when by (which must be a reasonable period) and the consequences if the information is provided late. The contract also says that notices should be specifically identified as notices, citing the clause under which they are issued.
We can see here that if you don’t identify the RFI as a notice and include the information stipulated in the contract, it will not be regarded as a notice. The claim may be rejected on the grounds that the engineer was not given formal notices of the matter.
There may be grounds to contest a rejection of the claim in dispute proceedings. However, had the project procedure been changed to ensure that RFIs were issued by way of a notice, a dispute could have been avoided.
Example 2 – Non-Conformance Report
The engineer has a number of forms and documents that they use to administer projects. These have developed over several years and include a Non-Conformance Report (NCR). This advises the contractor that something has been carried out or executed not in accordance with the contract. The NCR contains standard wording that instructs the contractor to remedy the matter.
The contract provides that if the engineer discovers something that is not in accordance with the contract, they are obliged to issue a ‘Notice to Correct’ to the contractor. This should state the details of the non-compliance and a time-scale for the matter to be remedied. If the contractor fails to remedy the matter the employer may arrange for the matter to be remedied by others at the cost of the contractor.
We can see here that the term ‘Non-Conformance Report’ does not exist in the contract. Consequently, the issue of such a document has no contractual merit. Whilst the contractor may be obliged to act on the instructions of the engineer, the issue of an NCR instead of a Notice to Correct would negate the employer’s rights to use others to remedy the non-conformance and to claim the costs from the contractor.
The solution to avoid such a conflict is simple. The engineer must change their Non-Conformance Report to a Notice to Correct. If the Notice to Correct contains a reference to the clause under which it is issued, then that would be even better.
In Conclusion
The use of project procedures is to be encouraged. But, such procedures must be reviewed at the very beginning of the project by a someone suitably qualified to do so. You must ensure that all parts of the procedures are in compliance with the contract and if not, the procedures must be revised accordingly.
If you are looking for practical advice on drafting documents to avoid these issues, you can read this article we wrote on the subject. Or, our Effective Contract Administration E-Course might be helpful.
How to Prepare a Construction Claim
When you need to prepare a construction claim for the first time, it can be daunting, especially for those without legal expertise. Even seasoned experts can struggle. Understanding the key steps involved makes all the difference and significantly improves your chances of success.
In this blog, we examine the basics of preparing a construction claim. We’ll provide help on how to gather evidence, articulate your damages, and effectively present your case.
What Should You Include in the Claim?
When pursuing a construction claim, the contract serves as the bedrock upon which your case is built. It outlines the agreed scope of work, payment terms, variation procedures, and liability allocations.
To successfully pursue a claim, it's essential to provide strong evidence that you are entitled to compensation.
A successful claim will include:
- Cause — The event that has given rise to the claim, which is usually a statement of fact.
- Effect — It’ll be necessary to show that an event caused the effect forming the basis for the claimed compensation.
- Entitlement — Demonstrate that the event on which the claim is based is something referenced in the contract or law, and provides entitlement to the claimant.
- Substantiation — This is the evidential basis for proving, to a reasonable level, the accuracy all statements made, points relied on, etc.
Always Reference The Contract
The contract is the cornerstone of any construction project. By thoroughly understanding and referencing its terms, you can build a strong case for your claim. This in turn increases your chances of a successful outcome.
To successfully recover additional time and costs, it's essential to meet the specific requirements outlined in your contract. Many contracts include strict deadlines for filing claims. Failing to comply with these timeframes can significantly weaken your claim or even lead to a loss of entitlement.
This is particularly important for NEC contracts. Under NEC, strict adherence to contractual timeframes is a ‘condition precedent’ to entitlement. If you don't meet these deadlines, the original ‘prices, the completion date, or a key date’ may remain unchanged.
These time bars are also crucial to ensure fairness and efficiency in the dispute resolution process. Be aware of time bars in your contract and act within the prescribed timeframe. If you have to prepare a construction claim, the claim may be lost if time-bars are missed.
Here are some examples:
- Clause 4.20.1 of the JCT Design and Build 2016: This sets out an obligation for the contractor to notify the employer ‘as soon as the likely effect of a relevant matter… becomes (or should have become) reasonably apparent’.
- Clause 61.3 of the NEC4 ECC Option A: This sets out an obligation for the contractor to notify the project manager of an event believed to be a compensation event ‘within eight weeks of becoming aware that the event has happened’.
- Clause 20.2.1 of the FIDIC Yellow Book 2017: This sets out an obligation for the claiming party to give a notice to the engineer ‘as soon as practicable, and no later than 28 days after the claiming party became aware’.
Substantiation: How to Present Your Evidence
It’s essential to provide adequate substantiation of cause, effect and entitlement. In order to succeed, you will need credible evidence to support your claim. This involves gathering and organising documents, records, and other materials that prove the validity of your arguments.
When presenting your evidence, ensure it is clear, concise, and directly relevant to the specific issues raised in your claim.
As a framework to follow, Construction Claims and Responses: Effective Writing and Presentation by Andy Hewitt suggests a submission should consist of two parts:
- The narrative. This deals with the details of the project and sets the circumstances of the claim. It demonstrates the effects of the claim and explains the basis of any supporting documents. These should help demonstrate the effects or quantum of the claim.
- Appendices. These contain documents such as programmes, calculations, photographs and project records. They support, illustrate and substantiate the claim.
By understanding the key elements of a construction claim, referencing the contract, adhering to time bars, and effectively presenting evidence, you can increase your chances of a successful outcome.
This article was written by Luke Chamberlain.
If you are preparing a construction claim, taking advice from a legal or claims professional will help ensure you get the guidance and help you need for success. If we can help, do get in touch - you will almost certainly find one of our introductory courses helpful.
FIDIC 2017 - How Strong is Your Knowledge?
Think you are a FIDIC expert? Put your skills to the test with our interactive quiz.
With the launch of our brand new FIDIC 2017 e-course, we thought it would be fun to test our readers knowledge of the contract form.
Take part in our interactive quiz and find out how strong your contract knowledge really is.