Prolongation claims during a construction project are also widespread to witness; however, by tackling the situation carefully, one can successfully come out of the applications. Before moving on the details of handling such claims, let us first try to know as to what are prolongation or delay costs.
What are the prolongation costs?
These are additional costs inflicted by the contractor as a result of the delayed work. Cause of delay is because of an event or events that are said to be the responsibility of other parties. Common examples of such incidents could be delays in giving instruction or failing to provide the site with possession to the contractor on time.
Top ways to handle prolongation claims
Prolongation claims could be troublesome if not treated on time. Thus by acquiring timely services of construction claims consultants and following these points, you can ensure successful management of claims.
Here are the top ways of handling construction prolongation claims:
1. Records for the win
No one can support you as well as the files you’ve maintained to support a prolongation claim. This means that every penny, dirham, or riyal has to be supported by showing the bank statements, slips, invoices, etc.
Moreover, be confident about whatever you’ve to say as if you don’t prove what you’re saying, you’ll lose it!
2. Indicate Contractual Entitlement.
It is a common sight that many claims don’t get successful because of the claimant failing to prove the stated events of additional cost under the contract. Hence, investigate, evaluate, and form a story that gives rise to a contractual entitlement to have the winds by your side.
3. Practice compliance with Notice provisions.
Notices bear immense significance in such scenarios, and it gets mandatory to comply with notices. Hence, face the issue from the front and mention how compliance can be achieved. As failing to notify on time, can prove to be the first step towards rejection of a claim.
4. Include a one-time related cost.
One time-related cost refers to the loss that has occurred at the time of critical delay. Thus, the claimant is bound to claim actual costs during the crucial period of suspension and not for the damages that have occurred at the end of the project during the extended duration.
5. Don’t include claims for profit.
The purpose of the claim is to restore the claimant at its original position and compensate for the costs inflicted due to compensable events. Hence, it does not leave room for profits to be claimed for, even if there’s a scope for it.
Now coming to the crunch, prolongation costs are delay costs that need to be dealt with precautious. Thus, by opting for construction claims consultants if you’re in a corporate hub like Dubai or anywhere else and following the ways discussed above can save you a lot of prolongation costs.
The pro tip is to be prepared to be quizzed and handle all with patience, facts, and evidence.