Contractors' Construction‐Claims Avoidance

Abstract

The number of construction claims has been increasing and has become a time‐consuming and costly element in construction projects in North America. The probability of a claim arising at some point in time is a fact of life on most construction projects. In recent years, contractors have become increasingly concerned with claims, their associated costs, and the poor recovery of actual costs associated with their settlements. Therefore it is in the interest of every contractor to familiarize himself with the means to avoid claims or to be ready to mitigate the consequential damage therefrom. The purpose of this article is to minimize both contractors' and owners' chances of becoming involved in construction claims and disputes. It will emphasize the need to have proper knowledge of the contract and good record keeping, which is essential for the contractor to maintain control over the project and mitigate potential claims. The article includes a list of major causes of construction claims and presents a general claim protection guideline.