Extension of Time Claims

Claims and Delays are commonly associated with construction and its related activities. By virtue of the inherent risk involved, limited trade skill, complexities of design, weather and external factors all has a role to play in creating this undesired situation.

Let's face it, most people don't sign up to a service or agreement with the intent of making a claim or seeking legal advice or even prosecution. In fact most of us wish only to be given the opportunity to deliver / provide or construct what we have set out to do at the agreed price and make the intended profit. However construction is not as simple and there is always that one contract/project which demands more contractual awareness and protection than others.

Most contractors are not legal experts and find themselves all too often in a situation where a delay has occurred whereby they did not have the necessary paperwork or records in place to make such a recovery. This leads to frustration and desperation where the contractor starts claiming for everything without proper analysis and in the end tables an unmanageable global claim which leaves a sour taste for all the parties involved. Client's generally retaliates by imposing penalties and delaying payments. The Engineers on the other hand become biased as these claims are seen as a personal attack on their abilities and actions. All of which ends up in most cases where a Lawyer or a Claim Consultant's involvement is sought at great expense and to the detriment of the Project.

Obviously in some instances the route of legal intervention is unavoidable due to either party not complying with their obligations under the Contract. However the above scenario sketches the common situation many contractors face in the industry. The process of claiming or identifying delays or loss should not be such a confrontational event. In fact the very purpose of this process is actually to protect both contracting parties and obtain resolution. For the client / Engineer to understand a delay impact prior to its occurrence, will greatly allow him the opportunity to act or rectify and secondly obtain knowledge of the event and the consequences involved. This will ease the tension and pave the way for negotiation where an amicable solution in terms of time and money is found. This is clearly a win-win solution.

In order to achieve this however the Contractor needs to be in control of its administrative responsibilities, understand his contractual obligations and prescription clauses.  One way to make sure this risk is managed is by utilizing preformatted templates that guides the user to record the correct information and prompts when the next notice or warning should be submitted. Templates saves time and provides a low cost solution to managing risks. And most importantly it will ensure that the information is received by the other party on time and in the correct format to allow action to be taken. Remember the more time given the more opportunity there is to resolve.

That said, it is not so easy to create templates for delays or claims if you are not affluent with Contracts and the processes involved. Therefore the best solution would be to seek legal assistance in drafting these for you or use existing document templates developed by other Contractors. For a relatively inexpensive solution you can utilize our templates and start managing and controlling your risk immediately. Our template package covers all aspects from notices, claims, cost recording and processes involved of keeping records for delays.

Avoid a lose-lose situation which will ultimately tarnish your reputation and success in the construction industry. Take action today!