Why Contractors Need to Leverage Their Skills in Construction Claims

Article written by Legal Advice Aid

When it comes to today’s complex construction projects, contractors are the skilled problem solvers that have the knowledge and expertise to follow them through to completion. Seasoned contractors have understood that the early identification and evaluation of disputes is important when it comes to a timely resolution. Additionally, subcontractor and supplier claims are critical components of efficient and cost-effective project management.


It should be noted that disputes cost a significant amount of money and also divert critical resources that are needed for project sustenance. Contractors that leverage their skills in the identification and mitigation of risks – as well as take the necessary steps to proactively manage claims – will minimize their claim-related costs and optimize claim outcomes. Contractors tend to take different approaches to the resolution of claims but they all involve common elements that include: investigation, evaluation, identification, allocation and management of resources, and reassessment of the claim. Construction claims management companies often follow these patterns in the assessment of claims.


The Evaluation of Claim Strengths and Weaknesses


Cost-effective claim management stems from the early assessment of both the strengths and weaknesses of the parties’ positions. Once the contractor has successfully verified compliance and any other claim notice requirements, his attention should be focused on completing a timely analysis of the merits of the claim. This is a key step that can impact the entire case itself.


An accurate assessment must be performed that requires the consideration of all available and relevant facts. Claim-related material must be gather and organized so that it reveals the claim’s factual narrative. This will explain all of the necessary variables like, “who, what, when, where, how” and so on and so forth. This gives the contractor the ability to take any steps to obtain supplemental information that will strengthen their case and identify any holes.


The contractor should also incorporate these facts into a written explanation of why their position will prevail. The contract will when be able to present a substantial narrative as to why it supports a request for relief or a legally supported basis for a claim denial. If the contractor is unable to present a persuasive narrative, this may indicate that the claim is going to be problematic and additional investigation will be required. At this stage in the claim, the contractor, or construction claims consultant, needs to be able to anticipate its opponent’s narrative.

Lyle Charles offers the best interim short term management services in the industry. With years of experience under his belt, find out how Lyle Charles can help you out with your managerial issues today.