Types of Construction Claims

Types of Construction Claims

There are several different types of claims that can arise in the construction industry. These include: Change orders, Productivity and disruption claims, Acceleration claims, and Other miscellaneous claims. In this article, we’ll look at some of the most common types of claims and explain their different types. There are many different types of construction claims, but there are some common themes among them.

Change orders

Change orders are used to add or remove specific details in a construction project. These orders should specify the scope of work, materials, and costs. They should also identify overhead costs, permits, insurance, and labor. Failure to document changes on change orders can lead to disputes and claims later. Fortunately, there are many ways to minimize the impact of change orders. Here are some tips to help you manage them. If you receive a change order during the construction process, you should carefully review your change order to ensure that it is accurate and complete.

Change orders can create a polarizing issue between the parties involved in a construction project. Owners typically want to control the scope of work and the budget, and contractors are motivated by potential supplemental revenue. This can lead to divergent objectives and an inability to reach a fair resolution. Fortunately, there are ways to mitigate the impact of change orders in construction claims.

In order to maximize your chances of receiving a fair claim, make sure the contractor itemsizes the costs included in the change order. Lump sum proposals are unfair to owners because they are difficult to understand and may not reflect hidden costs. Moreover, they don’t give you an accurate idea of the profit margin the contractor is taking. In addition, construction change orders must include three types of costs: direct, indirect, and consequential. Of these, direct costs are the easiest to understand. Consequential costs, on the other hand, can be more complicated.

Productivity / disruption claims

Productivity / disruption claims in construction can be complex. The key is to properly document the disruption events and demonstrate how they caused loss of productivity. In most cases, the best disruption claims will describe individual events and their resulting effects. The success of a disruption claim depends on several factors, including the quality of the records, the number of events, and the magnitude of the loss.

Productivity is naturally variable, and a certain level of risk is inherent in any construction project. If the contractor’s productivity is reduced due to a single or multiple disruption events, the contractor is entitled to compensation for those losses. However, the likelihood of recovery is greatly reduced if the disruptions were predictable. In addition, disruption claims may involve more than one factor, including site access restrictions, stacked trades, and out-of-sequence work.

In addition to compensation for lost productivity, a contractor can seek compensation for additional costs that were incurred due to the disruption. Disruption claims can be a result of critical events or the project being delayed. However, disruption claims can also be the result of project acceleration. In some cases, the contractor may be able to shift direct labour to other sites to avoid the problem or delay the starting times of subcontractors.

While preparing a productivity / disruption claim, the preparation process can be more difficult than one for a delay claim. This is because the two types of claims rely on different records and require different evaluation methods.

Acceleration claims

In construction claims, acceleration claims can be made if a construction team speeds up work for a variety of reasons. The contractor’s efforts to speed up work can result in additional costs, so it is important to document all such circumstances in your claims. The contractor should also notify the owner of the acceleration and incur additional costs to meet the accelerated schedule. However, some courts have been hesitant to award acceleration claims.

There are situations where a contractor voluntarily speeds up work to avoid delays or to start a new contract. In this scenario, the contractor may not be entitled to a claim for the additional costs, but he may be entitled to additional compensation for the additional work. In other cases, the contractor may accelerate work to avoid paying for overhead.

Acceleration claims are often complex and require more interaction among the project’s parties. Increasing complexity also increases the risk of delays, which increases the risk of acceleration claims. For this reason, it is important for owners and contractors to understand the elements of acceleration claims, the recovery of damages, and possible defenses. Moreover, it is crucial to move quickly to resolve any disputes before they turn into a complicated and costly claims process.

There are two types of acceleration claims: constructive acceleration claims and direct acceleration claims. While direct acceleration claims are more predictable, constructive acceleration claims are more difficult to litigate. In these cases, the client may claim that the contractor did not have the right to accelerate, but was forced to do so by external forces.

Other miscellaneous claims

Other miscellaneous construction claims refer to the payment owed to a contractor in cases where the appropriations have expired. These claims can be made by contractors directly through the Comptroller of the Currency, who oversees the process. The contractor must complete a Miscellaneous Claim Application.


Liability in construction claims can be difficult to establish, especially in cases where several parties are involved. This is due to the collaborative nature of many construction projects. While a full assessment of the facts may point to a primary liable party, a secondary party may have contributed to the cause of the damages or caused the incident in the first place. The passage of time may also make determining liability difficult. In such cases, subrogation rights may also be lost and the case may become moot.

Whether a construction contractor has coverage for third party liability is also important to consider. Third party liability in construction claims is difficult to prove because it often involves complex issues of product liability law, including design and manufacturing defects. In addition, the extent of coverage that a construction company has to provide may be very limited.

Indemnity clauses are common in construction contracts. These clauses shift responsibility for negligence from one party to another, where the indemnitor agrees to cover the other party’s attorney fees and judgment. The contractor is also typically covered under an insured contract, which is a separate contract that allows the contractor to assume the tort liability of a third party.

Liability in construction claims is also often complicated by subcontracting and vicarious liability. A contractor can be held vicariously liable for the actions of another party, including its employees. This can be problematic because subcontractors often blame each other for mistakes.


Construction claims often involve damages related to delayed performance or inability to complete a project. In addition to direct damages, a contractor may also be liable for consequential damages, which flow from a breach of contract. The most common example of a consequential damage is a delay in the completion of an income-producing project.

As a contractor, you must be prepared to prove that you are entitled to your claim and that it is properly valued. Furthermore, you must show a causal link between the breach of contract and the total cost of the claim. Without a good insurance policy, your company may struggle to stay in business.

A construction claim typically involves several separate claims, each of which must be analyzed separately. A claim should contain a section for each of these claims in the body of the claim. Each claim should be clearly titled and contain a short description of the facts surrounding it. If possible, a construction expert should assist you in working through the claim.

The damages involved in a construction claim are determined based on three categories: contract damages, schedule related damages, and failure to perform. In many cases, the damages related to a construction claim are governed by the Hadley rule, which states that the damages must have been in the parties’ contemplation at the time the contract was made. This rule limits the amount of damages a construction company can claim.

Podobne tematy

Leave a Reply

Your email address will not be published. Required fields are marked *