Construction Claims

Construction Claim Preparation

JDE’s involvement in the construction claim process can be in assisting a client’s own staff members prepare a claim (providing direction and the valuable independent voice of reason) or in undertaking the complete task, from preliminary analysis to presentation. Notwithstanding the level of our involvement, we strongly believe that the best prepared claim will result from a substantial team effort between the client, its legal counsel (where appropriate) and the consultant. The consultant will be able to identify the issues that link to the damages, and the lawyer will be able to advise the client on how the contract and the law applies to those issues. The client will then be properly informed on the resulting damages and the likelihood of recovery.

Nearly all construction claims involve productivity issues and project delays. The two are often intertwined. Reduced productivity of labour or equipment will often lead to project delays, while on the other hand, delays can result in work having to proceed in less than ideal conditions giving rise to productivity losses and further delays. JDE personnel have been working as construction claim consultants since 1983 and have built up a substantial claims knowledgebase to use to our client’s advantage. With a staff of engineers, JDE is also well qualified to deal with the more technical direct cost claim issues.

Claim Analysis

Claim analysis involves a similar process to that required for claim preparation. In many cases, however, where the claim has not been professionally prepared, the linkage between cause and effect may not be obvious. In such cases, analysis becomes more difficult and the need for experience increases. The consultant has the ability to anticipate the type of claim that could be presented and advise the client of the probable value of the claim. A good rule of thumb is to negotiate good claims and defend against bad claims. JDE’s substantial experience in claim preparation methods and identification of documentation necessary to claims, can assist in a proper evaluation of the claim allowing the parties to arrive at an equitable settlement.

Evaluation of Contract Time Extensions.

Construction delays are costly to both owners and contractors. Prompt quantification of delays is most important to avoid unnecessary and often costly acceleration and associated loss of productivity claims. Professional evaluation of contract delays will permit the parties to put the issues behind them and concentrate on the completion of the work efficiently and economically within the properly adjusted project completion date.

In many instances there may be concurrency between contractor and owner caused delays. In such cases the parties must promptly address the contract extension, even if the compensation aspect of the delay cannot be resolved as quickly. JDE’s expertise in the area of delay quantification can be valuable investment in arriving at an equitable solution.

Claims Identification and Management Programs

No party to a construction contract should be without a formal claims identification and management program. An overall company policy should be prepared with procedures to be reviewed and revised as necessary to incorporate the requirements of each new contract. Senior management should incorporate such claims programs into its overall loss management strategy. Formal claims status reporting by project personnel to senior management should be often enough to ensure all notices provisions will be met. Potential dispute settlement costs should be estimated to allow a proper claim strategy to be maintained. JDE can assist in preparing and reviewing the effectiveness of such programs

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