Contract claims procedure
Contents |
[edit] Introduction
The process for making claims under a construction contract typically involves several key steps to ensure they are made in accordance with the contract terms and that they are properly documented and substantiated. This article presents an outline of common procedures, but ultimately the process required will depend on the exact wording of the contract and the application of relevant legislation such as the Housing Grants, Construction and Regeneration Act.
[edit] Identify the basis for the claim
Claims can arise from a number of situations, such as:
- Variations or changes to the work scope.
- Delays and disruptions.
- Unforeseen site conditions.
- Non-payment or late payment.
- Breach of contract terms.
For more information see: Contract claims.
[edit] Review the contract
Carefully review the construction contract to understand:
- The types of claims that can be made.
- The notice requirements.
- The time frames for submitting claims.
- The specific procedures for making a claim.
- The documentation required.
[edit] Notification
Most contracts require prompt notice of a claim. This notice should include:
[edit] Document the claim
This may include:
- Detailed records of the work performed.
- Correspondence (emails, letters).
- Site diaries and logs.
- Photographs and videos.
- Statements from witnesses.
- Schedules and programs.
[edit] Prepare the claim submission
Prepare a formal claim document, which typically includes:
- An introduction and summary of the claim.
- A detailed description of the events leading to the claim.
- The contractual basis for the claim (citing relevant contract clauses).
- Supporting documentation and evidence.
- Calculations of the claim value (e.g., costs incurred, delay impacts).
[edit] Submit the claim
Submit the claim to the other party (e.g., the employer, main contractor) in accordance with the contract’s procedures. Ensure that the submission is timely and includes all necessary documentation.
After submitting the claim, there may be a period of negotiation and discussion. The goal is to reach an agreement on the validity and value of the claim. This may involve:
- Meetings and discussions between the parties.
- Clarification and provision of additional information if requested.
- Adjustments to the claim based on feedback.
If the claim is not resolved through negotiation, the contract will typically provide for dispute resolution mechanisms, which may include mediation, adjudication (a statutory process under the Housing Grants, Construction and Regeneration Act 1996), arbitration or litigation.
[edit] Related articles on Designing Buildings
- Adjudication.
- Alternative dispute resolution.
- Arbitration.
- Contract claims.
- Construction contract.
- Dispute avoidance.
- Dispute resolution.
- Disruption claims in construction.
- Evaluation of claims.
- Housing Grants, Construction and Regeneration Act.
- How to prepare a claim for an extension of time.
- Mediation.
- Scheme for Construction Contracts.
Featured articles and news
Licensing construction in the UK
As the latest report and proposal to licence builders reaches Parliament.
Building Safety Alliance golden thread guidance
Extensive excel checklist of information with guidance document freely accessible.
Fair Payment Code and other payment initiatives
For fair and late payments, need to work together to add value.
Pre-planning delivery programmes and delay penalties
Proposed for housebuilders in government reform: Speeding Up Build Out.
High street health: converting a building for healthcare uses
The benefits of health centres acting as new anchor sites in the high street.
The Remarkable Pinwill Sisters: from ‘lady woodcarvers’ to professionals. Book review.
Skills gap and investment returns on apprenticeships
ECA welcomes new reports from JTL Training and The Electrotechnical Skills Partnership.
Committee report criticises UK retrofit schemes
CIOB responds to UK’s Energy Security and Net Zero Committee report.
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.