ConstructIQ

When it comes to construction projects, variations claimed by contractors can often arise. This happens when a contractor claims that there has been a change to the scope and circumstances of the project, and as a result, they are entitled to additional time and money. These claims are actually quite common in construction projects.

One thing to keep in mind is that the risk of the ultimate project cost and finish date are passed onto the contractor who is relying on information and access from the principal. This means that if, for whatever reason, the contractor believes that the current circumstances differ from what was agreed upon during contract formation, and this has a resultant impact on schedule or cost, then the contractor will claim for additional time and money.

So what are the different types of claims that can arise? There are actually quite a few, and they vary based on the source and resultant impact. Here are a few examples:

Extension of Time Claims: This type of claim is made when the principal causes a delay to a critical path activity. A critical path activity is an activity that, if delayed, delays project completion. Under an extension of time claim, the contractor can claim an extension to the practical completion date and additional cost.

Disruption Claims: This type of claim is made when the principal causes a delay or change to working practices for a non-critical path activity. An activity with float. Under a disruption claim, the contractor can only claim for money.

Acceleration Claims: This type of claim is made when the principal requests an earlier practical completion date. Under this type of claim, the practical completion date will be brought forward, and the contractor will receive additional money to meet this earlier practical completion date. An acceleration claim is a form of variation proposed.

Joint or No-Fault Claims: This type of claim is made when there is a situation where both parties are at fault or is outside both parties' control, like excessive wet weather. Under a no-fault claim, the practical completion date is pushed back, but the contractor will not receive additional money.

It's important to note that variations can arise whenever circumstances change from contract formation. If what the contractor quoted and agreed to deliver has changed, there is the potential for a claim. Examples sources of this include unexpected conditions, poorly defined and understood scope, defective design, or failure for the principal to provide access to the site.

In conclusion, if you're working on a construction project, it's important to be aware of the different types of claims that can arise. By being informed and prepared, you can ensure that your project runs smoothly and stays on track.