Claims

Adding a twist to this discussion



If the client has issued a variation of additional work to contractor which has an impact on completion date, say it extends the contract completion by X days. The client should have worked out the time and cost impact analysis before issuing this variation (or may have asked from the contractor before issuing the VO - also to make a decision whether to go with the variation or not). Ideally the VO should state the scope of addtional work, the time and cost to carry out the work. Why should it become a claim from contractor........



I think or rather wish the word claim should come into play only when there is a ambiguity or doubt, say if there is an extension of time request due to inclement weather or Force Majeure.





Just a thought.



Regards,



Anees

The Project Dimentions are Time, Cost, Quality, And Quantity.



Any deviation and alteration will USUALLY result in a claim, The Claims cna be classified as follows:

1. EOT only (Non-compensable delays)

2. Time & Period of the Time Related Costs (Compensable & Non-Compensable delays)

3. Cost-only Claims (items of work disputed to be included in other items or not)

4. Reduced Quality Claims. (The amounts of deductions to be made on a reduced quality item of work)

5. Quantity deviation claims

6. Third party claims.



The naming of these claims depends on the party claiming.

Primarily TIME CLAIM AND COST CLAIMS are the 2 Vital claims in a PROJECT. Does anyone want to expand on this...