Claims Preparation

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International Construction

Contract & Claim Management

“Preparing and making a successful claim


depends on the collection of facts and the supporting
evidence to prove the delay and the costs incurred.”

The Construction Industry is widely associated with a high degree of risk due to
the nature of “Construction Business”.

The risk intensive structure brings claims and disputes forward. Claims in the
construction industry are inevitable in most cases.

Avoidance or a quick resolution of claims is vital for the economic success of


the project.

And, well-prepared claims play an essential role for effective claims


management.

There are various ways of preparing a claim. The level of information needed
will differ depending on the type and size/value of the claim.

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International Construction
Contract & Claim Management

Process of Claim Preparation

1. Executive Summary

2. Table of Contents

3. Introduction

4. Contractual Framework

5. Actual Conditions and Impacts

6. Contractual/Legal Entitlement

7. Quantification of Claim

8. Formal Statement of Claim

9. Appendix

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International Construction
Contract & Claim Management

1 Executive Summary

In this section, a summary of the claim is


provided.

2 Table of Contents

In this section, an index of general topics


regarding the claim is provided.

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International Construction
Contract & Claim Management

3 Introduction

In this section, information such as;


● What works to be constructed,
● Parties of the contract and their
advisers,
● The main reasons of the claim
preparation,
are provided.

4 Contractual Framework

In this section, the Contractual Basis of the


Claim is described. The clauses of the

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International Construction
Contract & Claim Management

contract that entitle the contractor to make a


claim are identified.

5 Actual Conditions and Impacts

In this section, the changes in the original


conditions and the impacts of these changes
are described in detail.

6 Contractual/Legal Entitlement

In this section, the right of the Contractor


for receiving a time extension or recovering

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International Construction
Contract & Claim Management

additional compensation under the


contract or law is identified.

This section should meet the procedural


requirements such as; notice, timely
presentation of the claim, updating CPM,
time impact analysis and others.

7 Quantification of Claim

In this section, the cost or delay that is


experienced due to the additional work
should be valued.

And, all the evaluations, analyses, methods


and assumptions regarding the evaluation
must be transparent and clearly explained.

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International Construction
Contract & Claim Management

8 Formal Statement of Claim

In this section, the formal request should be


presented.

9 Appendix

Evaluation Reports and Schedules with


Supporting Figures

Contract Programmes
● Original Programme
● Updated Programme

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International Construction
Contract & Claim Management

Cost Information
● Calculations, Quantities
● Schedules

Monthly Progress Reports, Meeting


Minutes

Legal Briefs

Photographs
● Progress Photos
● Event Specific Photos

Relevant Drawings

Technical Assessments

Engineering Calculations

Lists of the Relevant Notices Given

Geotechnical Report

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International Construction
Contract & Claim Management

Requests for Information (RFIs)/ Technical


Queries

Detailed Estimates

Delay Analysis and the Methods Used

This information is provided for your convenience and does not constitute any “Legal Advice”.
This document is prepared for the general information of the interested persons. This should not
be acted upon in any specific situation without appropriate legal advice.
This information may not be reproduced or translated without the prior written permission of
eayglobal.com

For further information please contact eay@eayglobal.com

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