Previous Issues

What will happen if you carry the suspension costs? It doesn’t matter whether suspension is the result of; ➤   An Engineer’s instruction, or, ➤   A wrongful decision of the other party, You will; ➤   Suffer delay, and, ➤   Incur costs

Payment-related problems mostly lead to claims. But if you want you can; ➤   Avoid, or, ➤   Minimize these kinds of claims.

Inaccurate measurement and valuation are common causes of claims. Not properly; ➤ Interpreting, and, ➤ Applying the measurement and variation rules, results with claims. You can avoid these types of claims by implementing a well structured measurement and valuation process.

Preparing effective “change in scope” related claims is more important than ever. Crux Insight Report published by HKA also confirms that. After;    ➤  Analyzing the causes    ➤  Quantifying the impacts of claims and disputes on major capital and infrastructure projects in 100 countries. The report states that;    ➤   “Change in Scope” was the leading cause of claims and disputes.

An acceleration claim is a great key. A great key for compensation of the costs incurred due to acceleration of Works. Of course, if it is properly prepared. Let’s clarify.

If you are suffering from the price fluctuations. And, these fluctuations are having negative effects on your project. That means something is missing. And probably the missing part is the Price Adjustment Mechanism.

You should not only consider your own perspective while designing your claim strategy. You should also address the issue from the perspective of all parties. Such as from the Contract Administrator’s point of view. The Contract Administrator’s turn starts after receiving your claim. Let’s look at the process through the eyes of the Contract Administrator.

There are various ways of presenting a claim. What determines the structure of the presentation will be; ➤   The type ➤   The size / volume / value of the claim. And, a good presentation will maximise the chances of; ➤   Better explanation of your claim and its details ➤   Reaching an early agreement ➤   Solving the problem

Properly quantifying the claim is vital for the effective claim. Accurate financial information is essential for proper quantifying.  But, what are the sources of such financial information? You should consider using a variety of resources for that, such as; ➤   The Contract Provisions ➤   Tender Calculations ➤   Cost Records ➤   Accounting Information ➤   External information

Disruptions are mostly inevitable in Construction Projects. And, they have considerable effects on the Contractor, such as; ➤ increase in costs ➤ reduction in profit Submitting the effective claim is a valuable way for recovering these costs and the losses suffered.