Preparing and evidencing contractual claims –
MINIMIZING SURPRISES Contractual agreements typically lay out the obligations of the owner and the contractor,
as well as remedies to address points of disagreement, which can ultimately evolve into disputes. Such remedies are aimed at specific circumstances arising that may affect the eventual outcome of a project (Events). These Events are usually a function of the owner’s expectations in terms of the scope, quality, cost and the schedule required to complete a project - these being captured by the contractual agreement being ‘entire,’ i.e. the whole agreement between the owner and the contractor. Contractual agreements are often explicit in requiring notices to be provided for Events in terms of form, substance and timing. For example, on the internationally acclaimed
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multi-billion dollar Hong Kong International Airport Core Project, the contractor was required to provide written notices within a stated period following the occurrence of Events. The contractual agreement stated that if notices were not provided to a prescribed form and within a stated time period, then the contractor would be precluded from advancing claims. These conditions precedent to entitlement are becoming increasingly common. There are many definitions of claims, however, one that is generally recognized is “an assertion of a right to money, property, or a remedy and can be made under the Contract itself; for breach of the Contract, for breach of a duty in common law; or on a quasi-Contractual basis” (PowellSmith, 1989). Therefore, the impact of Events on a project click here to return to table of contents
