A claim in construction can be defined as a damage compensation request by any of the contracting party. The request is made when the contractors do not fulfill their specified obligations. The compensation is asked in the form of extension of time (EOT) or payment. In this way, claims are considered the most stressing things in construction as they lead to disputes.
There is no denying that higher competition in the construction industry of UAE has given rise to stay in business even on the cost of lower profit margins. However, if a contractor is already engaged in a less profitable project, he is not is in a position to bear the loss. So, it is much more essential to understand different types of claims to stand ahead in the game.
The article is devised to help you get in-depth awareness about contractual claims based on their types along with convenient solutions to deal with the issues.
But, if you already are struggling with claims in your recent construction project, don’t get into information collection instead you should hire experienced construction claims consultants Dubai to help you get rid of such ugly situations.
What Are The Types Of Contractual Claims And Sufficient Resolve?
Nevertheless, an adequate understanding of various types of claims in construction is highly helpful to the contracting parties to resolve disputes. It can be done by organizing all available resources for better optimization of claim situations.
Owing to this, an extensive detail of all types of contractual claims based on different categories is prepared to help you get through the process successfully:
Change is constant. So, modifications in the construction projects are frequently made to accommodate the changing expectations of the project owners and technical aspects. However, changes in the construction processes have a considerable impact on contracted timelines.
In this way, projects can get longer to be accomplished because of various revisions in the architectural designs, construction management and other aspects. It generally leads to delays or suspension of the projects where contractors ask for an extension of time but the owner might rejects. Consequently, disputes occur leading both parties towards legal ways to resolve the issues.
Delays are the result of the schedule effect. It is because many internal and external factors impact the construction process leading to postponement. If the project is not accomplished on time, the contracting bodies can make claims for compensation.
These claims can be either made by the project owner to get damage compensation because of contractors’ negligence. On the other hand, contractors can also claim for compensation in case the owner did not comply with the contractual obligations and project is delayed.
In any case, it is vital to get the services of an experienced delay witness expert to resolve such disputes.
EXTRA CONTRACTUAL CLAIMS
These types of contractual claims are made in case ether any of the contracting individuals asks for compensation once the construction work has been done. For instance, if the project owner requires the contractors to perform certain activities over the construction site that was not initially written in the contract – extra construction dispute occur.
Similarly, if the contractor claims compensation for extra work done or anything that is not included in the contract, then the owner is obliged to pay for the damages. However, it is essential to keep a vigilant eye over the construction process from both sides to prepare well for handling extra-contractual claims.
Who Can Help You?
It is an eternal fact that not everything is in the control of human beings. Sometimes, claims are undeniable. So, the contracting parties should be prepared to deal with all types of situations. For this, it is always better to hire highly experienced construction claims consultants Dubai to get through the process successfully.
Summing up, increasing globalization is causing severe competition in every business. The industry of construction has no exception in this regard. Further, the multi-dimensional nature of projects poses grave threats to successful completion.
So, the risks of claims and disputes are significantly higher. In this regard, the contractors should pay attention to learn about all possible types of contractual claims for better handling the claims.
Don’t forget to hire claims consultants in construction for getting a competitive advantage over your opponent parties in case of any dispute!