Anatomy of Construction Claims

Abstract

Construction is the backbone of society. Construction as commercial activity channelized through contract document. This document is a combination of obligations of the parties to a contract. It is a document which is interpreted in terms of law and trade practice. In execution of the contract, it is so common that parties have different interpretation and expectation of contract. It is this difference which gives rise to claims and cause for defence against the claims. The effect of claim is to create tension in relationship of the parties and ultimately the progress of work suffers.

To solve such difficulties the Resolution Mechanism comes into picture , there are two important aspects viz. constitution of dispute resolution tribunal and the related law. The dispute resolution tribunal is used usually Negotiation, Conciliation, Dispute Resolution Board and Arbitration. Failing all this the matter is reported to law. Various types of claims include Delay damages, Differing site condition, Acceleration and Change of scope claims. All these claims have various facets. It is important to know the anatomy of all these claims as to how they arise and what is necessary to resolve it.

Keywords: Contract, Claim, Arbitration