Construction Claims: Managing Disputes in Complex Projects

Construction claims are formal requests made by one party in a construction contract seeking additional time, cost, or compensation due to issues that arise during a project. They are common in large-scale developments where unforeseen events, design changes, or contractual disagreements occur. Effective management of construction claims is essential to protect project timelines, budgets, and relationships.

What Are Construction Claims?

A construction claim typically arises when a contractor, subcontractor, or client believes that they have experienced additional costs or delays outside of their control. These claims can relate to:

• Delays – extensions of time due to weather, design revisions, or late approvals.

• Disruptions – loss of productivity caused by site conditions or resource shortages.

• Variations – changes in scope of work that affect time and cost.

• Payment Issues – disputes over interim payments, retention, or final account settlements.

Importance of Construction Claims Management

Unresolved construction claims can escalate into disputes that delay projects and increase costs. Proper claims management ensures that:

• Claims are documented with clear evidence.

• Contractual obligations and rights are respected.

• Disputes are resolved fairly, whether through negotiation, mediation, or arbitration.

Common Methods of Resolving Construction Claims

• Negotiation – direct discussion between parties to reach an agreement.

• Mediation – involvement of a neutral third party to facilitate resolution.

• Arbitration – formal resolution process conducted by independent arbitrators.

• Litigation – legal proceedings in court (used as a last resort).

Role of Experts in Construction Claims

Specialists such as contract administrators, delay analysts, and quantum experts often assist in preparing and defending claims. Their expertise ensures that claims are supported by accurate records, detailed analysis, and compliance with contract terms.

The Future of Construction Claims

As projects become more complex, the use of digital tools, Building Information Modeling (BIM), and advanced scheduling software is reshaping how construction claims are prepared and assessed. The emphasis is shifting toward proactive claims avoidance and early resolution strategies.