Types of Claims

TYPES OF CLAIMS

·         Extension of Time for Completion claims

·         Additional Payment claims

·         Prolongation claims

·         Disruption claims

·         Change Order / Variation claims

EXTENSION OF TIME TO COMPLETION CLAIMS

There are many reasons why a Contractor may be lawfully entitled to an Extension of the Time for Completion, such as Changes from original scope of works, Design Development by the consultants, unforeseen site conditions, and many more.

The ELDERMAN will ensure that the Contractor receives the maximum extension of time rightfully allowed and fully entitled to in the contract, without causing liability to the Client / Project Owner that is without any lawful cause.  Similarly, if The ELDERMAN is engaged by the Client / Project Owner, we shall ensure that the Contractor receives only those days as an extension of time as is fully authorized and substantiated by the contract. 

ADDITIONAL PAYMENT CLAIMS

Once the Contractor’s entitlement to an Extension of Time has been confirmed, it is also necessary to determine if he is entitled to Additional Payment for the extended period.  A thorough review of the contract documents will enable The ELDERMAN to establish the amount of additional payment to be claimed by the Contractor or whether the Client is liable for such claimed amount.

PROLONGATION CLAIMS

The prolongation claim is always linked to the Contractor’s claim for an extension of time.  The completion date for many projects are extended for whatever reason, mostly through the Contractor’s claim for an extension of time.  Once entitlement of the extended period is established, it is also necessary to determine whether the Contractor is entitled to reimbursement of prolongation costs.

The ELDERMAN will ensure that prolongation costs are contractually accurate and verifiable by studying the Contractor’s up to date cost records and company account systems.  We ensure that each delay period or event is clearly quantified and limited to contractual entitlement.  We then either prepare, present and negotiate the prolongation claim on behalf of the Contractor or defend such claim on behalf of the Client / Project Owner.

DISRUPTION CLAIMS

As with all construction claims, the onus rests on the Contractor to prove entitlement.  Disruption claims are very difficult to estimate and therefore also to analyze.  For this type of claim, accurate records are critical to enable The ELDERMAN to quantify the effect of any delay event.  This is achieved by:

• Evaluating the original or planned sequence of works
• Comparing the original with the actual or revised sequence of works
• Establishing the cause and effect of any changes to the sequence of works
• Calculating the impact of the revised sequence of works on the project costs

CHANGE ORDER / VARIATION CLAIMS

Changes occur on construction projects as a result of the complexity of the industry.  While all construction contracts attempt to remove any doubt as to the entitlements of the various parties, it inevitable happens that different persons will interpret contract provisions in different ways.  The parties are sometimes not even in agreement that a change or variation exists, let alone how it should be evaluated.  The higher the value or risk, the more complex the resolution thereof.

The ELDERMAN will utilize their established procedures to:

• Determine whether a change or variation exists by reviewing all relevant contract document
• Establish the cause and effect of the change
• Calculate the value of the change by utilizing contract rates or actual costs where rates are not available in the contract
• Confirming the Contractor’s contractual entitlement

DETERMINATIONS

When providing a response to a claim from the Contractor on behalf of the Client, The ELDERMAN will ensure that the Client’s rights are protected, and liabilities are minimized as far as possible within the parameters set by the contract.  An in-depth report will ensure that all parties understand the contractual principles applied to reach a fair conclusion acceptable to all parties.