Avoiding Claims & Disputes

Our first priority is avoiding a claim or dispute from arising at all. Claims & disputes ultimately arise because there is a misalignment of expectation or understanding on a matter pertaining to time, cost or quality. Some examples include;

1. Responsibility for a delay to the progress of the works.
2. The quality of a particular material to be provided.
3. Whether works are a variation or included in the original scope.
4. Who is responsible for the costs arising from the occurrence of a particular risk.
5. The mechanism for valuing any change to the quantity, quality or timing of the works.

In theory, most, if not all of these matters can be identified and clarified at the early stages of a project. This requires an investment of time and attention at the early stages of a project, before the contract is signed. Not only does this enhance the clarity on what the parties have agreed, but it helps build a relationship of trust and understanding as issues are brought out into the open and discussed. It’s better to reach an amicable agreement at the start which can be referred to later, rather than there being adversity half way through a project when tensions are high parties are focused on achieving their financial targets.

The above approach works well where there are known risks or issues that may arise. However, sometimes we have known unknowns, and unknown unknowns. In this case, it is important that the contract refers to a mechanism to resolve these matters as they arise. We’re not referring to a dispute resolution clause. The intention is to avoid getting to that stage, by ensuring there is a means of resolving any disagreement using the mechanisms detailed in the contract. Hopefully, the good relationships established at the early stages form a basis for honest and reasoned discussions to resolve any ambiguity.

What can we do for you?

The difference between a hastily submitted claim with no substantiation and a carefully considered and properly prepared claim is colossal. The fact of the matter is that the rate of success of professionally prepared claims is significantly higher. Not only this, but a properly prepared claim will be received better by the other party – they understand your reasoning and the facts of the claim, rather than simply dismissing it as ‘out of hand’ and spurious because they themselves are not aware of the facts. Especially where specialists works are concerned, it is important for the specialist to explain the details in such a way that they can be understood by anyone, not just another specialist.

We can work with your project teams to identify if you have a valid claim, and if so assist in compiling the necessary facts and information required to submit to your client/contractor in order to establish your entitlement to additional payment or time to complete the works. Also, we can compile costs and demonstrate the duration of any additional time to be awarded. Contact us to discuss any current or past issues you have.

To increase your chances of avoiding a claim or dispute, we recommened discussing your project at an early stage. Our Procurement and Tendering service will ensure your project is built on a sound foundation of clear communication and understanding of risk, responsibilities and liabilities by all parties.