Construction Claim – Introduction

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Construction Claim – Introduction

Introduction

In construction projects, a claim means a request made by one party (usually the contractor) asking for extra money or more time than what was originally agreed in the contract.

According to the dictionary, the word “claim” means “an assertion of a right.”
The Oxford Dictionary defines it as “a demand or request for something that one believes is due.”

Types of Claims in Construction Projects

1. Common Law Claims

  • These claims do not depend on what is written in the contract.

  • They arise when the Employer breaks the contract terms (either directly or indirectly).

  • Examples:

    • If the Employer delays the work or creates obstacles for the contractor.

    • If the architect or engineer is careless in their work, causing loss to the contractor.

  • These can also include claims outside the contract, such as:

    • Tort claims (for negligence or wrongful actions).

    • Quantum meruit claims (asking for fair payment for work already done).

2. Ex Gratia Claims

  • These claims have no legal base but are made for moral or fairness reasons.

  • The contractor may ask the Employer for payment even though the Employer is not legally required to pay.

  • Example:

    • If the contractor priced an item too low and its quantity increases greatly due to a change, causing a big loss, he may ask for extra payment on moral grounds.

  • The Employer can choose to pay, but it is not an obligation.

3. Contractual Claims

  • These claims are made according to the contract terms.

  • Usually raised by contractors or subcontractors to:

    • Get additional payment, or

    • Extend the time for completion to avoid penalties or liquidated damages.

  • A contractual claim must:

    • Be based on the terms and conditions of the contract.

    • Be clearly identified, supported, and justified with proper evidence and documents.

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