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
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.