Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A claim is a formal request by the contractor or owner for additional money or time, based on a contract clause and recorded events, such as late site access, late drawings, variations or unforeseen conditions.
Why it matters on a project
Claims are one of the biggest sources of loss or recovery on projects. Success depends on notice within the set period and records more than on the strength of the argument.
Measurement and pricing
The actual recorded extra cost, and a delay analysis on the programme to prove the time sought.
Common mistake
Giving notice later than the contract period, losing the right to claim even when the event is valid.
Frequently asked questions
What matters most in a claim?
Written notice within the contract period, then continuous records of cost and time.
Does a claim mean a dispute?
No, most well-documented claims are settled by negotiation.
Related terms
- Extension of time (EOT)The contractor’s entitlement to additional time for delay not of its making, subject to timely notice.
- Variation order (VO)A written instruction changing scope, quantity or specification, with its price and time effect.
- Delay damages (liquidated damages)An agreed sum deducted per day of delay after the contractual completion date, capped in the contract.
- Baseline programmeThe programme approved at project start against which progress is measured.
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