What are Types of Claims During Construction Projects?
By AIA Contract Documents
November 29, 2023
There are various types of claims that arise during construction. Some common types include:
Delay Claim: These claims arise when the work takes longer to complete than originally agreed upon in the contract. Delays can be caused by various factors, including weather conditions, changes in project scope, or unforeseen issues. Delay claims may also seek relief under the contract’s force majeure clause, which provides relief for an event beyond the control of the parties, such as a natural disaster, acts of terrorism, or government action, that prevents the proper performance of work on the project. When events such as these arise on the project, a party may assert a delay claim and seek relief from performance obligations or compensation due to such unforeseen event.
Extra Work Claim: Changes to the original scope of work may result in additional costs or time requirements. Extra work claims seek compensation for an expanded scope of work or additional time required due to changes in Contract Documents.
Defective Work Claim: Where completed work is found to be defective or not in compliance with the Contract Documents, a claim may be made to address the issue and seek remedies. Defective work claims may involve replacing the defective work, or paying for a proper replacement.
Acceleration Claim: These claims arise when a party is required to complete the project in a shorter time frame than initially agreed upon, often due to circumstances beyond their control. Acceleration claims typically seek compensation for the additional costs incurred by expediting the work.
Disruption Claim: Disruptions to the normal progress of construction, such as labor strikes or material shortages, may result in a claim for compensation for the resulting inefficiencies and increased costs.
It is important for parties involved in a construction project to carefully document events that may lead to a claim and follow the procedures outlined in the contract for submitting and resolving claims. Resolution may depend on documentation and evidence supporting the parties’ positions. Additionally, parties can take proactive measures to avoid unexpected claims during a project, such as thoroughly reviewing the contract, maintaining clear communication with project participants, and adhering to realistic project schedules. By implementing these strategies, parties can enhance their ability to manage and mitigate potential claims during a construction project.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.