OVERVIEW OF POTENTIAL CONSTRUCTION CLAIMS AND DAMAGES

OVERVIEW OF POTENTIAL CONSTRUCTION CLAIMS AND DAMAGES

CLAIMS UNDER THE CONTRACT

                                                                                                                                                                                                                                                                                                                                    In general context, construction disputes are arisen in between Contractor-owner, contractor-sub contractor. Even-though this might get more complex when increase the  number of parties involved in the project. Disputes are arisen when there are conflict among the interest of different parties/groups involved in the particular project. For example interest of owner does not comply with the interest of the contractor and as result either one or both the parties get disappointed and disputes may arise at any time.

Disputes of a project can arise over the span of the project from the point of tenders submit their bids to end of the defects liability period of the contractor. These disputes direct to construction claims.

But not all the disputes direct up to claim.

Basically, construction claims can be divided in to two categories,

1. Contractor's claim

2. Owner's claim

Contractor's claims

Contractor's claims are taken place when owner does not comply with his obligations under the contract  among the parties and contractor suffer because of the owner's acts.  For example;

1.  Non payment to contractor

2. Delay of the project as a result of the delay of the owner

3. Change in scope/ extent of the project, which cause loss to the contractor

4.

At the same time, Owner may claim against the contractor. for example,

1. Non performance of the contractor

2. Quality of the work is not according to the contract.

3. Delay in project.