Evaluation of claims - Revision history

Designing Buildings at 07:30, 5 July 2024

2024-07-05T07:30:01Z

← Older revision		Revision as of 07:30, 5 July 2024
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	* Arbitration in the construction industry.		* Arbitration in the construction industry.
	* Contract claims in construction.		* Contract claims in construction.
		+	* Contract claims procedure.
	* Dispute avoidance.		* Dispute avoidance.
	* Evaluation.		* Evaluation.

Editor at 09:32, 7 January 2022

2022-01-07T09:32:58Z

← Older revision		Revision as of 09:32, 7 January 2022
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	* Additional costs must be backed up by full supporting documents.		* Additional costs must be backed up by full supporting documents.

−	Records from both parties ~~iay~~ be considered in the evaluation of claims. Records may include:	+	Records from both parties may be considered in the evaluation of claims. Records may include:

	* Tender and contract documentation.		* Tender and contract documentation.

Designing Buildings at 08:04, 7 January 2022

2022-01-07T08:04:32Z

← Older revision		Revision as of 08:04, 7 January 2022
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	Any other documents exchanged between the parties related to scheduling, pricing, risk or eventual project outcome may also be used in the evaluation of claim. These records should be accurate and include substantial details, “...to the standard required in formal dispute resolution procedures under English law,” according to Mullen and Davison.		Any other documents exchanged between the parties related to scheduling, pricing, risk or eventual project outcome may also be used in the evaluation of claim. These records should be accurate and include substantial details, “...to the standard required in formal dispute resolution procedures under English law,” according to Mullen and Davison.

−	~~= When evaluation~~ of ~~claims~~ may ~~become necessary =~~	+	Certain types of contract may be more susceptible to claim issues than others.

−	~~Certain types of contracts may be more susceptible to claim issues than others. One traditional type is the~~ fixed price contract, which is defined by The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) as, ‘…a contract where the price is agreed and fixed before construction starts’.	+	The fixed price contract, which is defined by The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) as, ‘…a contract where the price is agreed and fixed before construction starts’. Under a fixed price agreement, contractors may be compelled to pursue evaluation of claims based on changes resulting in disputes over money and time. The establishment of a contract baseline, including a defined scope, schedule and conditions of work, can set conditions that can help to formalise the consequences of changes made by the client that may justify additional compensation for the contractor.
−		+
−	A fixed price contract should not be confused with a lump sum contract, where a single ‘lump sum’ price for all the works is agreed before the works begin. Lump sum (or stipulated sum) contracts are sometimes referred to as ‘fixed price’ or 'firm price' contracts, although strictly this is not correct.	+
−		+
−	However, lump sum contracts tend not to be fixed at all, but allow the price to change under certain circumstances. A truly 'fixed' price contract would not necessarily be in the interests of the client as it would require that the contractor price risks over which they may have no control, and which might not arise.	+
−		+
−	Under a fixed price agreement, contractors may be compelled to pursue evaluation of claims based on changes resulting in disputes over money and time. The establishment of a contract baseline, including a defined scope, schedule and conditions of work, can set conditions that can help to formalise the consequences of changes made by the client that may justify additional compensation for the contractor.	+

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 08:03, 7 January 2022

2022-01-07T08:03:04Z

← Older revision		Revision as of 08:03, 7 January 2022
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	= Introduction =		= Introduction =

−	Claims commonly arise between the parties to construction contracts. This can be as a result of ~~problems such as~~ delays, changes, unforeseen circumstances, insufficient information and ~~conflicts~~. ~~If a claim requires legal action~~, ~~an evaluation~~ of ~~claims will~~ be ~~one of~~ the ~~initial steps in the process~~.	+	Claims commonly arise between the parties to construction contracts. This can be as a result of delays, changes, unforeseen circumstances, insufficient information and conflict. Claims might be made for things such as loss and expense, extension of time and liquidated damages. The contract should set out exactly what can constitute a claim and how it should be dealt with. There may also be claims associated with the appointment of consultants.

−	Claims might be made for things such as loss and expense, extension of time and liquidated damages. The contract should set out exactly what can constitute a claim and how it should be dealt with. There may also be claims associated with the appointment of consultants.	+	Evaluation is the process of assessing disputed issues associated with a claim. The article, [https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php Evaluation and Preparation of Claims in Construction Projects], suggests the evaluation process most commonly relates to lost money or extensions of time - or “...costs associated with prolongation and costs associated with disruption. As Burden of Proof is on the claimant, the claimant must show that there is a direct link (causal link) between the breach (cause) and the loss (effect) thereby sustained.”
−		+
−	~~In the HM Treasury Guide to developing the project business case, Better business cases: for better outcomes, an evaluation~~ is ~~defined as: ‘…the systematic assessment of an intervention, its design, implementation and resulting outcomes both during implementation and most importantly afterwards.’~~	+
−		+
−	~~In the specific context of construction claims, an evaluation can be defined as~~ the process of assessing disputed issues associated with ~~the breach of~~ a ~~contract~~. The article, [https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php Evaluation and Preparation of Claims in Construction Projects], the ~~assessment~~ process ~~will more than likely concentrate on~~ lost money ~~and extension~~ of time - or “...costs associated with prolongation and costs associated with disruption. As Burden of Proof is on the claimant, the claimant must show that there is a direct link (causal link) between the breach (cause) and the loss (effect) thereby sustained.”	+

	= Examining the evaluation process =		= Examining the evaluation process =
Line 13:		Line 9:
	According to the book, [https://media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf Evaluating Contract Claims] by John Mullen, Peter Davison, the claim evaluation process can include an examination of duty, cause, effect and damage. The book states, “The prime source of information for any evaluation has to be the contract between the parties and its requirements. There is no substitute for reading the contract and any incorporated relevant documents. Regrettably, this is often a starting point more often honoured in the breach than in observance in practice.”		According to the book, [https://media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf Evaluating Contract Claims] by John Mullen, Peter Davison, the claim evaluation process can include an examination of duty, cause, effect and damage. The book states, “The prime source of information for any evaluation has to be the contract between the parties and its requirements. There is no substitute for reading the contract and any incorporated relevant documents. Regrettably, this is often a starting point more often honoured in the breach than in observance in practice.”

−	~~Furthermore, claims~~ must be properly constituted and documented. This means:	+	Claims must be properly constituted and documented. This means:

	* Proper legal entitlement must be established.		* Proper legal entitlement must be established.
Line 19:		Line 15:
	* Additional costs must be backed up by full supporting documents.		* Additional costs must be backed up by full supporting documents.

−	Records from both parties ~~in the dispute may~~ be considered in the evaluation of claims. Records may include:	+	Records from both parties iay be considered in the evaluation of claims. Records may include:

	* Tender and contract documentation.		* Tender and contract documentation.
−	* Staffing/labour.	+	* Staffing/labour records.
−	* Materials/equipment.	+	* Materials/equipment records.
	* Correspondence.		* Correspondence.
	* Photographs/videos.		* Photographs/videos.

−	Any other documents exchanged between ~~various~~ parties related to scheduling, pricing, risk or eventual project outcome may be used in the evaluation of claim. These records should be accurate and include substantial details, “...to the standard required in formal dispute resolution procedures under English law,” according to Mullen and Davison.	+	Any other documents exchanged between the parties related to scheduling, pricing, risk or eventual project outcome may also be used in the evaluation of claim. These records should be accurate and include substantial details, “...to the standard required in formal dispute resolution procedures under English law,” according to Mullen and Davison.
−		+
−	Additional guidance provided by Evaluating Contract Claims mentions the [https://www.scl.org.uk/ Society of Construction Law] (SCL), which is considered to be “...a source of some authority in relation to the evaluation of construction contract claims”. This UK-based organisation is made up of individuals from the legal, construction, architecture, surveying, engineering and other professions with a vested interest in legal matters associated with construction projects.	+

	= When evaluation of claims may become necessary =		= When evaluation of claims may become necessary =

Editor at 19:22, 6 January 2022

2022-01-06T19:22:30Z

← Older revision		Revision as of 19:22, 6 January 2022
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	Under a fixed price agreement, contractors may be compelled to pursue evaluation of claims based on changes resulting in disputes over money and time. The establishment of a contract baseline, including a defined scope, schedule and conditions of work, can set conditions that can help to formalise the consequences of changes made by the client that may justify additional compensation for the contractor.		Under a fixed price agreement, contractors may be compelled to pursue evaluation of claims based on changes resulting in disputes over money and time. The establishment of a contract baseline, including a defined scope, schedule and conditions of work, can set conditions that can help to formalise the consequences of changes made by the client that may justify additional compensation for the contractor.

−	= Related articles =	+	= Related articles on Designing Buildings =

	* Alternative dispute resolution for construction ADR.		* Alternative dispute resolution for construction ADR.
Line 54:		Line 54:
	= External resources =		= External resources =

−	LawTeacher.net~~. "Evaluation and Preparation of Claims in Construction Projects." LawTeacher.net. 11 2013. All Answers Ltd. 01 2022 <~~https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php~~?vref=1>~~.	+	* LawTeacher.net, [https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php Evaluation and Preparation of Claims in Construction Projects].
		+	* John Mullen and Peter Davison, [https://media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf Evaluating Contract Claims].
		+	* [https://www.scl.org.uk/ Society of Construction Law].

−	~~https~~:~~//www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php~~	+	[[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]
−		+
−	~~Evaluating Contract Claims, 3rd Edition~~	+
−		+
−	~~John Mullen, Peter Davison~~	+
−		+
−	~~https~~:/~~/media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf~~	+
−		+
−	[~~https~~:/~~/www.scl.org.uk/ Society of Construction Law~~].	+

Editor: Created page with "= Introduction = Claims commonly arise between the parties to construction contracts. This can be as a result of problems such as delays, changes, unforeseen circumstances, insu..."

2022-01-06T18:11:50Z

Created page with "= Introduction = Claims commonly arise between the parties to construction contracts. This can be as a result of problems such as delays, changes, unforeseen circumstances, insu..."

New page

= Introduction =

Claims commonly arise between the parties to construction contracts. This can be as a result of problems such as delays, changes, unforeseen circumstances, insufficient information and conflicts. If a claim requires legal action, an evaluation of claims will be one of the initial steps in the process.

Claims might be made for things such as loss and expense, extension of time and liquidated damages. The contract should set out exactly what can constitute a claim and how it should be dealt with. There may also be claims associated with the appointment of consultants.

In the HM Treasury Guide to developing the project business case, Better business cases: for better outcomes, an evaluation is defined as: ‘…the systematic assessment of an intervention, its design, implementation and resulting outcomes both during implementation and most importantly afterwards.’

In the specific context of construction claims, an evaluation can be defined as the process of assessing disputed issues associated with the breach of a contract. The article, [https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php Evaluation and Preparation of Claims in Construction Projects], the assessment process will more than likely concentrate on lost money and extension of time - or “...costs associated with prolongation and costs associated with disruption. As Burden of Proof is on the claimant, the claimant must show that there is a direct link (causal link) between the breach (cause) and the loss (effect) thereby sustained.”

= Examining the evaluation process =

According to the book, [https://media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf Evaluating Contract Claims] by John Mullen, Peter Davison, the claim evaluation process can include an examination of duty, cause, effect and damage. The book states, “The prime source of information for any evaluation has to be the contract between the parties and its requirements. There is no substitute for reading the contract and any incorporated relevant documents. Regrettably, this is often a starting point more often honoured in the breach than in observance in practice.”

Furthermore, claims must be properly constituted and documented. This means:

* Proper legal entitlement must be established.
* Cause and effect must be clearly demonstrated by contemporaneous records.
* Additional costs must be backed up by full supporting documents.

Records from both parties in the dispute may be considered in the evaluation of claims. Records may include:

* Tender and contract documentation.
* Staffing/labour.
* Materials/equipment.
* Correspondence.
* Photographs/videos.

Any other documents exchanged between various parties related to scheduling, pricing, risk or eventual project outcome may be used in the evaluation of claim. These records should be accurate and include substantial details, “...to the standard required in formal dispute resolution procedures under English law,” according to Mullen and Davison.

Additional guidance provided by Evaluating Contract Claims mentions the [https://www.scl.org.uk/ Society of Construction Law] (SCL), which is considered to be “...a source of some authority in relation to the evaluation of construction contract claims”. This UK-based organisation is made up of individuals from the legal, construction, architecture, surveying, engineering and other professions with a vested interest in legal matters associated with construction projects.

= When evaluation of claims may become necessary =

Certain types of contracts may be more susceptible to claim issues than others. One traditional type is the fixed price contract, which is defined by The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) as, ‘…a contract where the price is agreed and fixed before construction starts’.

A fixed price contract should not be confused with a lump sum contract, where a single ‘lump sum’ price for all the works is agreed before the works begin. Lump sum (or stipulated sum) contracts are sometimes referred to as ‘fixed price’ or 'firm price' contracts, although strictly this is not correct.

However, lump sum contracts tend not to be fixed at all, but allow the price to change under certain circumstances. A truly 'fixed' price contract would not necessarily be in the interests of the client as it would require that the contractor price risks over which they may have no control, and which might not arise.

Under a fixed price agreement, contractors may be compelled to pursue evaluation of claims based on changes resulting in disputes over money and time. The establishment of a contract baseline, including a defined scope, schedule and conditions of work, can set conditions that can help to formalise the consequences of changes made by the client that may justify additional compensation for the contractor.

= Related articles =

* Alternative dispute resolution for construction ADR.
* Arbitration in the construction industry.
* Contract claims in construction.
* Dispute avoidance.
* Evaluation.
* Fixed price construction contract.
* Lump sum contract.
* Mediation in construction.

= External resources =

LawTeacher.net. "Evaluation and Preparation of Claims in Construction Projects." LawTeacher.net. 11 2013. All Answers Ltd. 01 2022 <https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php?vref=1>.

https://www.lawteacher.net/free-law-essays/contract-law/evaluation-and-preparation-of-claim-in-construction-projects-contract-law-essay.php

Evaluating Contract Claims, 3rd Edition

John Mullen, Peter Davison

https://media.wiley.com/product_data/excerpt/42/11189181/1118918142-7.pdf

[https://www.scl.org.uk/ Society of Construction Law].