CLAIMS
A claim can be defined as a request for additional financial compensation and/or a request for a time extension. Most claims are resolved at the project level by negotiation between the parties themselves. A claim that cannot, or is not, resolved by negotiation at the project level becomes a dispute. Unresolved claims can be adjudicated through adversarial techniques such as arbitration or litigation, or by using less adversarial methods such as mediation.
The complexity of claims means that competing issues and options must be examined in detail and evaluated. Claims for increased time and associated costs, and other claims, are common. Typical causes of claims and disputes that counsel and clients need to consider include:
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- Lack of project planning and inadequate design
- Design changes, errors, omissions, and extras
- Lack of coordination between project teams / contractors
- Changed soil / site conditions / ground conditions
- The combination of a fixed-price contract and fast-tracking
- Insufficient bid preparation time
- Inadequate bid information
- Underestimation, mismanagement and / or bad workmanship by contractors
- Misunderstanding of contract intentions, terms, and conditions or contract interpretation
- Various kinds of project delays some of which are compensable, some of which are non-compensable
- Late permits
- Weather conditions
- Unforeseen events such as the pandemic
MJL & Co provides strategic dispute resolution to avoid claims as far as possible, and to evaluate them fairly when they arise including preparation, defence or negotiation of claims for extension of time, loss and/or expense, or general damages.
