Claims Structure - How to write a claim?

Submitting claims can be a daunting task. But if you understand the structure and what is expected in a claim, it certainly makes this task a whole lot easier. Using our EOT claim template will certainly assist you in this regard. In general claims must be properly constituted and documented where proper legal entitlement must be established, the Cause and effect clearly demonstrated by contemporary records and additional costs is backed up by supporting documents.

Very broadly, there are two types of delay. Delays in activities for which there is programme float available (i.e. they can be delayed without impacting on the completion date) and Delays that will impact on the completion date, sometimes referred to as critical delays. A well supported contractual claim should have the following structure;

Introduction – Executive overview of what the claim entails and what decision is sought from the client.

Relevant conditions of contract – List / clear reference to notices raised and clauses that are applicable, which forms the contractual basis of the entitlement of this claim.

Chronology of events - The chronology should describe what happened, when it happened and provide substantiation of the events by way of reference to the project records. The project records should, of course, be included in an appendix for verification and reference.

Cause & effect (impacted programme) – Each event must be separately impacted into the programme and then combined to understand the concurrency of delays. The programme from which to measure the effect of a delay must be the latest client approved version. Show the link between Cause and Effect: Concurrent Delays 1) Dominant Cause 2) Malmaison Approach 3) Float

Contractors contentions (Heads of Claim) - Heads of claim refers to categories of damage that a party may incur. It uses the term "head" in its sense of "category"; each head of loss refers to the damages that correspond to a particular category of delay.

Quantification of time and money - Quantifying claims may involve a number of considerations; Actual costs, preliminaries, disruption (loss due to inefficient productivity), Head office overheads, Loss of profit/opportunity costs, Finance charges and interest

Conclusion – Summarize what issues are being claimed for, the total amount of money and time that is required as compensation.

Records (appendix) - Contemporary Records to Substantiate the Claim - Must be agreed and signed off and can include the following; Letters - Formal, Site Notes, E mails (60% plus of all communications are via informal uncontrolled unshared email), Meeting Minutes, Progress Reports, Daily Diaries, Labour Returns, Sub-Contract Records, Special Records.