Construction delay claims

Sep 8, 2017 by

Construction delay claims or disputes are often part and parcel of construction projects. However, understanding claims can be a smart way to reduce the number of claims a project faces and to handle disputes within a shorter time frame.

Delay claims are related to project events that are unanticipated and involve some of the following:


Site access restrictions

Different site conditions

Delayed permits and approvals

Financial problems

Defective plans and specifications

Work amendments

Labor issues

Approvals for testing/inspection

Most often delay claims will hinge on four areas, they are if the issue impacted the critical path, the delay quantification, the root-cause of the delay and the right to a time extension and/or additional compensation. Most of these details will be included in the contract and will be in the section of the contract that details the risks and what constitutes compensable or excusable delays.

To understand delay claims it may be wise to include a claim management expert for large projects that involve many different parties. Experts in this area will provide knowledge on CPM schedule analysis and practical experience to understand and handle contract claims. When looking at claims, experts will have to prepare and analyze claims, attend arbitrations, and testify in litigation and arbitration proceedings. It is important that early resolutions are reached on delay claims to reduce further claims and to ensure the project runs smoothly.

Article by Lyle Charles. They offer a wide range of contractors and consultants on medium to large renovation projects. Speak to anyone from the team to get assistance on your construction claim analysis.

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