Construction Claims Management
Expert-defined terms from the Professional Certificate in Construction Law course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Construction Claims Management #
Construction Claims Management
Construction Claims Management refers to the process of handling and resolving c… #
A claim can be defined as a demand by one party for payment, time extension, or other relief due to a perceived breach of contract or unexpected event. Effective claims management is essential in construction projects to ensure that disputes are resolved promptly and fairly, minimizing the impact on project cost and schedule.
Adjudication #
Adjudication
Adjudication is a dispute resolution process in which an independent third party… #
Adjudication is often used in construction contracts as a quick and cost-effective way to resolve disputes, particularly in relation to payment issues.
Arbitration #
Arbitration
Arbitration is a formal dispute resolution process in which parties agree to sub… #
Arbitration is commonly used in construction contracts as an alternative to litigation, offering a more confidential and flexible process for resolving disputes.
Change Order #
Change Order
A Change Order is a written agreement between the parties to a construction cont… #
Change Orders are used to formally document changes to the contract and ensure that both parties are clear on the impact of the change on the project.
Claim #
Claim
A Claim in the context of construction refers to a demand by one party for compe… #
Claims are a common source of disputes in construction projects and must be managed effectively to prevent escalation into formal disputes.
Contract Administration #
Contract Administration
Contract Administration involves the day #
to-day management of a construction contract, including monitoring progress, ensuring compliance with contract terms, and resolving issues that arise during the project. Effective contract administration is essential to prevent disputes and ensure that the project is completed successfully.
Contractual Dispute #
Contractual Dispute
A Contractual Dispute is a disagreement between parties to a construction contra… #
Contractual disputes can arise from issues such as delays, changes in scope, or payment disputes and must be resolved through appropriate dispute resolution mechanisms.
Delay Claim #
Delay Claim
A Delay Claim is a type of claim in which one party seeks compensation for delay… #
Delay claims are common in construction projects and can arise from factors such as weather events, unforeseen site conditions, or changes in the scope of work.
Dispute Resolution #
Dispute Resolution
Dispute Resolution refers to the process of resolving conflicts or disagreements… #
There are various methods of dispute resolution available in construction projects, including negotiation, mediation, adjudication, arbitration, and litigation.
Extension of Time #
Extension of Time
An Extension of Time is a formal agreement to extend the completion date of a co… #
Extensions of time are typically granted in response to unforeseen events or changes in the scope of work that impact the project schedule.
Frustration of Contract #
Frustration of Contract
Frustration of Contract occurs when unforeseen events make it impossible to fulf… #
Frustration of contract may arise from events such as natural disasters, government regulations, or changes in the law, and can lead to the termination of the contract.
Liquidated Damages #
Liquidated Damages
Liquidated Damages are pre #
determined damages specified in a construction contract that the parties agree will be payable in the event of a specified breach, such as late completion of the project. Liquidated damages provide certainty to both parties regarding the consequences of a breach and help to avoid disputes over the amount of damages.
Mediation #
Mediation
Mediation is a voluntary dispute resolution process in which a neutral third par… #
Mediation is commonly used in construction projects to resolve disputes without resorting to formal litigation or arbitration.
Performance Bond #
Performance Bond
A Performance Bond is a type of surety bond issued by a third party, such as a b… #
Performance bonds provide financial security to the project owner in the event that the contractor fails to fulfill their obligations.
Quantum Meruit #
Quantum Meruit
Quantum Meruit is a legal principle that entitles a party to recover the reasona… #
Quantum Meruit is often invoked in construction disputes where the parties have not agreed on a price for extra work or changes to the scope of work.
Retention #
Retention
Retention is a common practice in construction contracts whereby a percentage of… #
Retention is typically released to the contractor upon completion of the project or a specified milestone, subject to the satisfactory completion of the work.
Subcontractor #
Subcontractor
A Subcontractor is a party engaged by the main contractor to perform specific wo… #
Subcontractors are typically responsible for a portion of the work and are bound by the terms of the main contract between the employer and the main contractor.
Variation Order #
Variation Order
A Variation Order is a written directive issued by the employer or the architect… #
Variation orders are used to formalize changes to the contract and ensure that both parties are clear on the impact of the variation on the project.
Withholding Payment #
Withholding Payment
Withholding Payment refers to the practice of withholding payment to a contracto… #
Withholding payment is a common source of disputes in construction projects and can lead to legal action if not resolved promptly and fairly.