Construction contracts typically contain provisions specifying how and when contractors should inform parties about potential claims for added compensation or time. These clauses aim to equip project stakeholders with crucial information for handling unforeseen events and expediting claim resolutions within the project, minimizing legal actions. However, such contractual terms can sometimes be challenging for the unprepared and overly complicate project administration.
Most contracts outline procedures for notifying potential claims, fostering informed decisions amid unexpected events. While designed to facilitate project-level claim resolution, they can pose challenges. It is crucial for all construction project parties to comprehend and comply with contract provisions, especially considering current challenges like epidemics, price fluctuations, and supply chain pressures.
Despite the prevalence of notice and claim provisions in modern construction contracts, there’s substantial variation in formality and complexity. Compliance is typically a prerequisite for formal dispute resolution, and failure may result in claim waiver.
In certain jurisdictions, non-compliance risks are particularly significant. Parties must negotiate procedures aligned with project needs and ensure administrative readiness. Proactive awareness of contractual requirements is key to both preserving and resolving claims in construction projects. Contact us for assistance in preparing your company contracts or reviewing those of other parties on your company’s behalf.
