Funding Claims | Got a claim but can’t afford to pursue it?

funding construction claims

I’m sure you know the situation. You have a good claim for a considerable amount of money, but your client won't pay it.

The client and his consultants delay things or reject the claim for unfair reasons. So, it becomes clear that in order to get paid, you're going to have to take ‘further steps’.

What are the further steps that you may take under the contract?

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Coronavirus – Are We Entitled to Make a Claim?

The global hot topic this month seems to be the corona virus and we’ve received lots of questions from clients so today, we thought we’d take a look at some of those questions and share our thoughts with you.

The usual question we're asked is:

We are obtaining labour / materials / plant / equipment from China and the supply is delayed. Are we entitled to claim for an extension of time and additional costs?”.

Our answers, as usual, have been along the lines of:

“it depends on your particular contract, but possibly”. 

I know that this is a bit of a lawyer’s answer, but it really does depend on several things. Let’s have a look at what the FIDIC Red and Yellow Books (1999) have to say on the subject.Read more

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6 Major Causes of Disputes on Construction Projects and How to Avoid Them

Welcome to the first Hewitt Decipher Partnership blog of 2020. This month I’d like to take the findings of HKA’s report, Claims and Dispute Causation – a Global Market Sector Analysis a step further than I did in last months’ blog, which concentrated on the importance of adequately expressed claims.

I also wish to refer to ARCADIS’s Global Construction Disputes Report 2019Between them, these reports between cite the following reasons for projects going wrong and things escalating to disputes:Read more

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Claims and Dispute Causation – What it Means for Your Projects

HKA have recently published a report: Claims and Dispute Causation – a Global Market Sector Analysis in which they have analysed over 4,000 disputes across 700 projects in 72 countries, with a combined project value exceeding US$1.2 trillion.

The report highlights the top 30 causation factors for disputes:Read more

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7 Tips for Success with Prolongation Cost Claims

We were recently consulted by a contractor who had had his claims for an extension of time and associated prolongation costs under a FIDIC contract rejected by the Engineer. The Contractor was convinced that he was entitled to both time and costs and asked us to provide an impartial opinion on the matter.

Unfortunately, we had to advise the Contractor that the Engineer acted correctly in not awarding the costs as presented in the claim. Firstly, because the ContractorRead more

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Are you heading for an unnecessary dispute?

I have just returned from a trip to central Asia to visit a client project where I was asked to review a number of claims and responses. The project is a very large one and the claims amount to an extension of time of almost one year and cost claims amounting to over US$100M. Our brief was to provideRead more

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10 Tips to Ensure that your Claims are Accepted

ARCADIS have recently published their Global Construction Dispute Report 2019. The report says that the Number 1 reason for disputes in the Middle East is ‘Poorly drafted or incomplete and unsubstantiated claims’. So in light of this, we've put together a list of 10 things that you can do to get your claims accepted quickly and successfully:Read more

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construction claims and disputes

Inadequately expressed claims: the second most frequent reason for disputes

Arcadis have recently published their Global Construction Dispute Report 2018. Unsurprisingly, “Poorly drafted or incomplete/unsubstantiated claims” is the second most frequent reason for disputes. This reason has ranked highly for several years, so it seems that the industry is not learning from its mistakes.

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From 2018 to 2019
the Beginnings of HDP…

The past twelve months have seen many changes in the Gulf region and some interesting events. In the following we look back and then ahead to what might come in 2019.

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The Four Corners of a Successful Claim

When preparing a claim, there are four key points to remember. Bill Bordill explains...

What is a claim?

Often folk think of ‘claim’ as a dirty word, something they ought not to get involved with. This is of course, in part, a result of the adverts you sometimes see on TV, ‘had an accident? Not your fault…’. But it is important to remember that a claim is only an assertion of a contractual right. It’s something you’re entitled to. It shouldn’t be seen as a dirty word.

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Delay Analysis:
Choosing the Right Method for Your Dispute

How should delay be analysed and what options are available? Tom Francis examines… 

When a delay occurs on a project, analysing cause and effect is vital to understanding where liability lies. Whether assessing for an Extension of Time or Compensation Events, Delay analysis (sometimes called Forensic Planning) is something which some refer to as a ‘dark art’. Arguably, it’s frequently misunderstood by those who carry it out or claim to understand it. This article aims to set out some of the key elements to consider when undertaking an analysis or working with an analyst to demonstrate delay.

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Omission of Items in the Bill of Quantities not shown on Drawings…

I recently received a request for advice from one of our course attendees. I have been asked for advice about this topic on several occasions so I thought it worthy of a blog. The situation and query was as follows:

The Contract is a lump sum and not subject to re-measurement. The Bill of Quantities (BoQ) was prepared by the Contractor at tender stage.

During the project closure, some items listed in the BoQ were not provided since these items were not included on the tender drawings, shop drawing or final as-built drawings.

The Client deducted these items as an omission at final account stage as the Contractor did not complete any of these billed works. The Contractor disagrees with this and asserts that he took the risk on the lump sum contract and the BoQ was merely for guidance and valuation only.

So…

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Inadequately Expressed Claims

The object of any claim is, from the claimant’s perspective, quite simple. You will be looking to convince a decision-maker that the claimant has the right to be compensated in ether time or money for the event from which the claim arose. The claimant has the obligation to prove that his claim is just. The standard of proof required to do so is based upon the ‘balance of probabilities’. If the claim does not fulfil these requirements, there is a very good chance that it will fail. It will fail because the claimant has not demonstrated his case.Read more

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When Should Extension of Time Claims be Submitted?

The consultancy side of our business has just been appointed by a contractor to prepare an extension of time claim. The contractor exceeded the completion date 3 months ago. Although there are many employer-caused delays, the contractor has not so far submitted any claims for extensions of time. Unfortunately, this approach by contractors is all too common. It often results in much work for consultants such as ourselves, but it is disadvantageous to the contractor in many ways.Read more

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Get it Right First Time

We have recently reviewed several claims on a large project. Most have gone through two or more time-consuming (and costly) revisions. The reason is that after submission (based on information from the Contractor) the Contractor invariably does not agree with it. The Contractor then provides additional information or explanation. The Engineer has a responsibility to take this into account, so the assessment must be revised. Sometimes it has taken several months to elicit all the information from the Contractor and conclude the matter.Read more

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Evaluation of Variations on Lump Sum Contracts

I recently presented a 2-day intensive training course. One delegate raised a question about lump-sum contracts and items included in the bills of quantities, but not shown on the drawings. The question was, ‘if something is included in the bill of quantities but not required, can the Engineer omit the price included in the bill of quantities for this item?’Read more

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