Global claim - Revision history

Designing Buildings at 07:17, 21 October 2020

2020-10-21T07:17:20Z

← Older revision		Revision as of 07:17, 21 October 2020
Line 36:		Line 36:
	* Scheme for Construction Contracts.		* Scheme for Construction Contracts.

−	[[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]]

Designing Buildings at 12:22, 8 March 2019

2019-03-08T12:22:34Z

← Older revision		Revision as of 12:22, 8 March 2019
Line 1:		Line 1:
−
	Claims commonly arise between the parties to construction contracts. This can be as a result of problems including; delays, changes, unforeseen circumstances, insufficient information, and conflicts. Claims might be made for loss and expense, extension of time, liquidated damages and so on. The contract should set out what can constitute a claim and how it should be dealt with.		Claims commonly arise between the parties to construction contracts. This can be as a result of problems including; delays, changes, unforeseen circumstances, insufficient information, and conflicts. Claims might be made for loss and expense, extension of time, liquidated damages and so on. The contract should set out what can constitute a claim and how it should be dealt with.

	However, as construction is a complex process, there is not always a straight-forward relationship between one particular breach and one specific effect. As a result, in some circumstances, contractors may make a ‘global claim’ by rolling together a number of different breaches and making a case for a cumulative effect resulting in a single total cost without attributing actual costs to specific events.		However, as construction is a complex process, there is not always a straight-forward relationship between one particular breach and one specific effect. As a result, in some circumstances, contractors may make a ‘global claim’ by rolling together a number of different breaches and making a case for a cumulative effect resulting in a single total cost without attributing actual costs to specific events.

−	Global claims have not always found favour with the courts, as they can ignore other reasons for the delay or disruption, and they place the burden of proof on the employer to carry out a detailed assessment of the claim and how it has been constituted.	+	Global claims have not always found favour with the courts, as they can ignore other reasons for the delay or disruption, and they place the burden of proof on the employer to carry out a detailed assessment of the claim and how it has been constituted.

−	They can also be counter-challenged by the client, citing contractor’s deficiencies such as; labour shortages, poor management, plant breakdowns and subcontractor non-performance.	+	They can also be counter-challenged by the client, citing contractor’s deficiencies such as; labour shortages, poor management, plant breakdowns and subcontractor non-performance.

	Keating on Construction Contracts describes a global claim as ‘...one that provides an inadequate explanation of the causal nexus between the breaches of contract or relevant events/matters relied upon and the alleged loss and damage or delay that relief is claimed for.’		Keating on Construction Contracts describes a global claim as ‘...one that provides an inadequate explanation of the causal nexus between the breaches of contract or relevant events/matters relied upon and the alleged loss and damage or delay that relief is claimed for.’

−	In the case of Walter Lilly v Mackay & DMW (2012), Mr Justice Akenhead said, ‘What is commonly referred to as a global claim is a contractor’s claim which identifies numerous potential or actual causes of delay and/or disruption, a total cost on the job, a net payment from the employer and a claim for the balance between costs and payment which is attributed without more and by inference to the causes of delay and disruption relied upon'	+	In the case of Walter Lilly v Mackay & DMW (2012), Mr Justice Akenhead said, ‘What is commonly referred to as a global claim is a contractor’s claim which identifies numerous potential or actual causes of delay and/or disruption, a total cost on the job, a net payment from the employer and a claim for the balance between costs and payment which is attributed without more and by inference to the causes of delay and disruption relied upon'

	However he went on to quote Mr Justice Donaldson in Crosby v Portland UDC, who stated ‘… it may well be difficult or even impossible to make an accurate apportionment of the total extra cost between the several causative events... I can see no reason why (the arbitrator) should not recognise the realities of the situation and make individual awards in respect of those parts of individual items of the claim which can he dealt with in isolation and a supplementary award in respect of the remainder of the claims as a whole.’		However he went on to quote Mr Justice Donaldson in Crosby v Portland UDC, who stated ‘… it may well be difficult or even impossible to make an accurate apportionment of the total extra cost between the several causative events... I can see no reason why (the arbitrator) should not recognise the realities of the situation and make individual awards in respect of those parts of individual items of the claim which can he dealt with in isolation and a supplementary award in respect of the remainder of the claims as a whole.’
Line 16:		Line 15:
	A global claim may be the only route available to the contractor, and the courts may accept this, however, where possible it is considered that it is better to be specific rather than generic. This is a more painstaking exercise requiring that the claimant lists each alleged default, linking it to the delay or disruption and its knock-on effect, all backed by clear records. This is more precise way of establishing quantum and is likely to lead to a more factually-based judgement.		A global claim may be the only route available to the contractor, and the courts may accept this, however, where possible it is considered that it is better to be specific rather than generic. This is a more painstaking exercise requiring that the claimant lists each alleged default, linking it to the delay or disruption and its knock-on effect, all backed by clear records. This is more precise way of establishing quantum and is likely to lead to a more factually-based judgement.

−	= ~~Find out more~~ =	+	NB, the Society of Construction Law Delay and Disruption Protocol, 2nd edition, defines a global claim as: 'one in which the Contractor seeks compensation for a group of<br />
		+	Employer Risk Events but does not or cannot demonstrate a direct link between the loss<br />
		+	incurred and the individual Employer Risk Events'.
		+
		+	= Related articles on Designing Buildings Wiki =

−	~~=== Related articles on Designing Buildings Wiki ===~~	+	* Alternative dispute resolution.
−	*Alternative dispute resolution.	+	* Adjudication.
−	*Adjudication.	+	* Arbitration.
−	*Arbitration.	+	* Causes of construction disputes.
−	*Causes of construction disputes.	+	* Construction contract.
−	*Construction contract.	+	* Contract claims.
−	*Contract claims.	+	* Dispute resolution boards.
−	*Dispute resolution boards.	+	* Extension of time.
−	*Extension of time.	+	* Housing Grants, Construction and Regeneration Act.
−	*Housing Grants, Construction and Regeneration Act.	+	* Litigation.
−	*Litigation.	+	* Liquidated damages.
−	*Liquidated damages.	+	* Loss and expense.
−	*Loss and expense.	+	* Mediation.
−	*Mediation.	+	* Scheme for Construction Contracts.
−	*Scheme for Construction Contracts.	+

	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]

Designing Buildings at 11:32, 10 April 2015

2015-04-10T11:32:40Z

← Older revision		Revision as of 11:32, 10 April 2015
Line 1:		Line 1:

		+	Claims commonly arise between the parties to construction contracts. This can be as a result of problems including; delays, changes, unforeseen circumstances, insufficient information, and conflicts. Claims might be made for loss and expense, extension of time, liquidated damages and so on. The contract should set out what can constitute a claim and how it should be dealt with.

−	~~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. Claims might be made for loss and expense, extension~~ of ~~time, liquidated damages~~ and ~~so on. The contract should set out what can constitute~~ a ~~claim and how it should be dealt with~~.	+	However, as construction is a complex process, there is not always a straight-forward relationship between one particular breach and one specific effect. As a result, in some circumstances, contractors may make a ‘global claim’ by rolling together a number of different breaches and making a case for a cumulative effect resulting in a single total cost without attributing actual costs to specific events.

−	~~As construction is a complex process, and there is~~ not always ~~a straight-forward relationship between one particular breach~~ and ~~one specific effect. In some circumstances, contractors may make~~ a ~~‘global claim’ by rolling together a number~~ of ~~different breaches~~ and ~~making a case for a cumulative effect resulting in a single total cost without attributing actual costs to specific events~~.	+	Global claims have not always found favour with the courts, as they can ignore other reasons for the delay or disruption, and they place the burden of proof on the employer to carry out a detailed assessment of the claim and how it has been constituted.

−	Global claims have not always found favour with the courts, as they can ignore other reasons that might have caused a delay or disruption, and they place the burden of proof on the employer to carry out a detailed assessment of the claim and how it has been constituted. However, they are then frequently can be counter-challenged by the client, citing contractor’s deficiencies such as; labour shortages, poor management, plant breakdowns and subcontractor non-performance~~. This all leads to the argument of parallel, concurrent or contemporaneous delay~~.	+	They can also be counter-challenged by the client, citing contractor’s deficiencies such as; labour shortages, poor management, plant breakdowns and subcontractor non-performance.

	Keating on Construction Contracts describes a global claim as ‘...one that provides an inadequate explanation of the causal nexus between the breaches of contract or relevant events/matters relied upon and the alleged loss and damage or delay that relief is claimed for.’		Keating on Construction Contracts describes a global claim as ‘...one that provides an inadequate explanation of the causal nexus between the breaches of contract or relevant events/matters relied upon and the alleged loss and damage or delay that relief is claimed for.’

−	In the case of Walter Lilly v Mackay & DMW (2012), Mr Justice Akenhead said, ‘What is commonly referred to as a global claim is a contractor’s claim which identifies numerous potential or actual causes of delay and/or disruption, a total cost on the job, a net payment from the employer and a claim for the balance between costs and payment which is attributed without more and by inference to the causes of delay and disruption relied ~~upon”~~	+	In the case of Walter Lilly v Mackay & DMW (2012), Mr Justice Akenhead said, ‘What is commonly referred to as a global claim is a contractor’s claim which identifies numerous potential or actual causes of delay and/or disruption, a total cost on the job, a net payment from the employer and a claim for the balance between costs and payment which is attributed without more and by inference to the causes of delay and disruption relied upon'

−	However he ~~when~~ on to ~~accept that there may be circumstances~~ in ~~which a global claim was the only option open to the contractor, stating that~~, ~~‘…it~~ may well be difficult or even impossible to make an accurate apportionment of the total ~~cost~~ extra cost between the several causative events... I can see no reason why (the arbitrator) should not recognise the realities of the situation and make individual awards in respect of those parts of individual items of the claim which can he dealt with in isolation and a supplementary award in respect of the remainder of the claims as a whole.’	+	However he went on to quote Mr Justice Donaldson in Crosby v Portland UDC, who stated ‘… it may well be difficult or even impossible to make an accurate apportionment of the total extra cost between the several causative events... I can see no reason why (the arbitrator) should not recognise the realities of the situation and make individual awards in respect of those parts of individual items of the claim which can he dealt with in isolation and a supplementary award in respect of the remainder of the claims as a whole.’

	A global claim may be the only route available to the contractor, and the courts may accept this, however, where possible it is considered that it is better to be specific rather than generic. This is a more painstaking exercise requiring that the claimant lists each alleged default, linking it to the delay or disruption and its knock-on effect, all backed by clear records. This is more precise way of establishing quantum and is likely to lead to a more factually-based judgement.		A global claim may be the only route available to the contractor, and the courts may accept this, however, where possible it is considered that it is better to be specific rather than generic. This is a more painstaking exercise requiring that the claimant lists each alleged default, linking it to the delay or disruption and its knock-on effect, all backed by clear records. This is more precise way of establishing quantum and is likely to lead to a more factually-based judgement.

Designing Buildings: Created page with " Claims commonly arise between the parties to construction contracts. This can be as a result of problems such as; delays, changes, unforeseen circumstances, insufficient inform..."

2015-04-10T11:19:07Z

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

New page

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. Claims might be made for loss and expense, extension of time, liquidated damages and so on. The contract should set out what can constitute a claim and how it should be dealt with.

As construction is a complex process, and there is not always a straight-forward relationship between one particular breach and one specific effect. In some circumstances, contractors may make a ‘global claim’ by rolling together a number of different breaches and making a case for a cumulative effect resulting in a single total cost without attributing actual costs to specific events.

Global claims have not always found favour with the courts, as they can ignore other reasons that might have caused a delay or disruption, and they place the burden of proof on the employer to carry out a detailed assessment of the claim and how it has been constituted. However, they are then frequently can be counter-challenged by the client, citing contractor’s deficiencies such as; labour shortages, poor management, plant breakdowns and subcontractor non-performance. This all leads to the argument of parallel, concurrent or contemporaneous delay.

Keating on Construction Contracts describes a global claim as ‘...one that provides an inadequate explanation of the causal nexus between the breaches of contract or relevant events/matters relied upon and the alleged loss and damage or delay that relief is claimed for.’

In the case of Walter Lilly v Mackay & DMW (2012), Mr Justice Akenhead said, ‘What is commonly referred to as a global claim is a contractor’s claim which identifies numerous potential or actual causes of delay and/or disruption, a total cost on the job, a net payment from the employer and a claim for the balance between costs and payment which is attributed without more and by inference to the causes of delay and disruption relied upon”

However he when on to accept that there may be circumstances in which a global claim was the only option open to the contractor, stating that, ‘…it may well be difficult or even impossible to make an accurate apportionment of the total cost extra cost between the several causative events... I can see no reason why (the arbitrator) should not recognise the realities of the situation and make individual awards in respect of those parts of individual items of the claim which can he dealt with in isolation and a supplementary award in respect of the remainder of the claims as a whole.’

A global claim may be the only route available to the contractor, and the courts may accept this, however, where possible it is considered that it is better to be specific rather than generic. This is a more painstaking exercise requiring that the claimant lists each alleged default, linking it to the delay or disruption and its knock-on effect, all backed by clear records. This is more precise way of establishing quantum and is likely to lead to a more factually-based judgement.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Alternative dispute resolution.
*Adjudication.
*Arbitration.
*Causes of construction disputes.
*Construction contract.
*Contract claims.
*Dispute resolution boards.
*Extension of time.
*Housing Grants, Construction and Regeneration Act.
*Litigation.
*Liquidated damages.
*Loss and expense.
*Mediation.
*Scheme for Construction Contracts.

[[Category:Contracts_/_payment]]