Time to Settle Claims Prevention

Member for

19 years 10 months

Hi Stephen

I think I understand you now.

There is of course a direct correlation between the cost of preparing the claim and the likely recovery.

This ratio is taken into account in a simple formula:

Likely Recovery / Cost Of Claim x Chance of Success %

for example: 

Likely recovery      10,000,000.00

Cost of Claim          100,000.00

Ratio                 100.00

Success Percentage                   40%

Result                  40.00 

Any result less tha 50 would be considered a risky enterprise.

I hope that helps.

Best regards

Mike Testro

Member for

22 years 5 months

If there is a requirement to prepare a claim, for an EOT or LDs, whatever the contract issue is.

In whatever contract form JCT, NEC, FIDIC, ...etc there is an increase cost involved, in that preparation.

Which is directly proportional to an reduced effect of recieving a settlement.

Now my question is there a format or ( formulea  / process )that has been or can be used, to prevent a claim being processed, or escalated to being in court.

A pre-claim assessment, which calculates the liability and quantum to such an extent that the Burden of Proof, can be identified at this early stage.

I hope that clears things up

Member for

19 years 10 months

Hi Stephen

I am not sure what you are going on about here.

During the claims process it is quite normal for the parties to negotiate and sometimes agree a settlement before - or even during - the arbitration procedure.

In one arbitration for delay my client asked me to prepare a simple negotiating document which I did on 3 A4 sheets.

It was demonstrable rubbish and was issued without prejudice but my client used it to negotiate a settlement and I was looking for work.

Best regards

Mike Testro