Welcome to the new issue of Grow Your Knowledge Newsletter where you get free, ready to use, actionable, clear information regarding FIDIC Contracts and Construction Claims.

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Today at a Glance;

➤   Term of the Week

➤   One Tweet

➤   Is your Claim Rejected?

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TERM of the WEEK 

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ONE TWEET 

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Happy Thursday.

Is your claim rejected?

There could be one or several reasons for this.

Submission of a claim is a critical process.

It requires detailed preparation.

The success of your claim highly depends on that.

You should;

➤   Accurately determine the events that contributed to the claim

➤   Sufficiently support the claim with contemporaneous records

➤   Perfectly prove the claim

➤   Properly quantify the claim

Otherwise, you cannot convince both the Contract Administrator and the other party.

We analysed 5 options that are probably the reasons for the rejection of your claim.

Option 1: Not accurately defining the “Cause” of the claim event

Probably, you could not properly define the event that has given rise to the claim, such as;

➤  Delays

➤  Suspension

➤  Acceleration

➤  Change in Law

➤  Termination

Option 2: Not perfectly explaining the “Effect” of the claim event

Maybe, you could not suitably;

➤  Establish the link between the cause and the effect

➤  Verify the facts to demonstrate the effect.

Option 3: Not correctly establishing the “Contractual/Legal Entitlement”

Most likely, you could not effectively identify the basis of the claim, such as;

➤  Contractual

➤  Legal, or,

➤  Both Contractual and Legal

And, as a result of this, you could not well demonstrate your entitlement to;

➤  Extension of Time

➤  Additional Payment, or,

➤  Both

Option 4: Not sufficiently “Substantiating” the claim

As the case may be, you could not adequately prove;

➤  All the statements

➤  Calculations

➤  Demonstrations

by reference to the; 

➤  Project records

➤  Contract

➤  Other supporting evidence

Option 5: Not complying with the “Notice Requirements”

Perhaps, you could not understand and follow what your contract says about Notice Requirements, such as;

➤ Timing of the Notice

➤ The information it should contain

➤ To whom it should be sent

➤ The proper way of providing Notice

Minimize the rejection probability of your claim by;
➤ Formulating the effective claim and presenting it in a professional way.

See you next week.

 

This information is provided for your convenience and does not constitute any “Legal Advice”. This document is prepared for the general information of the interested persons. This should not be acted upon in any specific situation without appropriate legal advice.

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