This action might not be possible to undo. Are you sure you want to continue?
0 TYPES OF CLAIMS (a) VARIATION WORKS • Changes in the requirements of the clients • Defective plans and specifications • Differences between billed and actual quantities • Tendering errors • Revisions caused by statutory and legislative changes • Advices by engineers and architects • Changes in construction methods • Difficult ground conditions PRELIMINARIES • Tools and small items of plant • Lighting and power • Water for the Works • Insurances • Supervision of the Works • Scaffolding and hoist TIME RELATED • Liquidated damages (genuine pre-estimates of the loss) • Penalty (extravagant) • Extension of Time - force majeure e.g war, epidemics, strikes - ordering of additional works & omissions - exceptional adverse weather conditions - distruption by actions of Government bodies - late possession of site - delay on the part of NSC or Suppliers - delay in engineer’s approval & instructions - events which affect the contractor’s liability to procure labour or materials
he may be liable to the subcontractor for any loss arising from such acts of prevention where the main contract work is delayed through some defaults of the subcontractor.(d) SUBCONTRACTORS AND SUPPLIERS • Nature of the contractual relationship (i) if the Main Contractor does any act which has the effect of making the subcontractor’s task more onerous or otherwise impedes the progress of the subcontractor works. The main contractor then can recover the full extent of this loss from the defaulting subcontractor (ii) (e) TERMINATION BY EMPLOYER • Default by contractor to perform • Insolvency of the contractor TERMINATION BY CONTRACTOR • Contractor’s power to suspend work • Default of client in payments (f) . the main contractor becomes liable to pay liquidated damages to the employer under the main contract.
TERMINATION CLAIMS COMPONENTS OF CLAIMS:(a) (b) (c) Cost of preparing the completion contract.certification .other contractual administrative functions . including expenses incurred in connection with the appointment of the completion contractor Cost of the completion contract itself.negligent statements & misrepresentations .supervision .design . consist mainly of amounts paid to the completion contractor Liquidated damages for which the original contractor is liable CLAIMS IN NEGLIGENCE • • • • Damages to persons and property Recovery of economic loss Liability of owner Liability of consultants .
ACCELERATION CLAIMS Acceleration claims are commonly used in the U. The groupings are as follows:(a) Where the measures are necessitated by the overall slow progress of the works (b) Where the measures are implemented at the express request or instruction of the employer or his engineer (c) Where there is a dispute relating to time extension and the contractor accelerates the works to avoid the consequences which would follow if the dispute is subsequently determined against him . this in itself may impede smooth execution of the other trades on the project. A contractor’s claim for loss associated with acceleration of works will depend on the circumstances under which the acceleration measures are prompted. the air conditioning crew is given priority of access to certain parts of the site.S. Example:If as a result of accelerating the air conditioning installation works.A “Acceleration of work” is used to refer to situations where additional capital and manpower resources are applied to increase the rate of progress of the Works.
The contractor. if the contractor acts on this.Contractor’s slow progress of work The costs associated with the acceleration of works by the contractor (to make up for the loss of time when the work fall behind the program schedule) cannot form part of a legitimate claim against the employer. in order to avoid liability for liquidated damages. a claim would lie against the employer in respect of the acceleration costs incurred. takes upon himself to accelerate the works. Engineer or Architect An employer or his engineer or architect may request or instruct the contractor to accelerate the works and. Time extensions have not been settled This is a situation where the employer or his engineer is unable to decide the contractor’s case for an extension of time in respect of the delay. . Instruction by the Employer.
would entitled the contractor to financial compensation under some provision contain in the construction contract Quantum of Claim (i) The amount of financial compensation. The principal concerns to claims:(a) (b) the premise on which a claim may be founded the manner by which the quantum of the claim may be determined Claims Premise (i) A construction claim may be advanced on the basis that the employer has committed a breach of contract which has the result of inflicting some loss or damage to the contractor (ii) (iii) A claim may derive from a variation to the quality or quantity of the work to be executed under a construction contract A contractor may allege that a situation has arisen which notwithstanding the absence of breach by the employer. its quantum will be determined largely by the provisions for payment and additional financial compensation contained in the construction contract .2.0 CONSTRUCTION CLAIMS This is defined as any claim by a contractor for additional payment beyond the original contract price stipulated in a construction contract. which may be claimed following a breach of contract is governed by the operation of common law principles relating to damages (ii) When the claim does not amount to a breach.
g standing charges & expenses incurred for plant and equipment.The compensation sought by the contractor are as follows:(1) The contractor may seek compensation in respect of all additional expenditure which he has incurred as a direct consequence of the breach The contractor may claim for additional interest and other financing costs The contractor may allege that delay has adversely affected his output so that there is. manpower resources and site facilities There will be a component representing so called “off site” charges or “overhead office” overheads which are essentially related to the loss of recovery for fixed standing costs incurred in maintaining the company’s head office support There will be an item representing an attempt to claim for loss of profit resulting from the contractor being denied the facility to employ his capital resources elsewhere for the duration of the delay (2) (3) (4) (5) (6) . a loss of productivity The contractor may also seek compensation for on-site overheads which consist of item e. in effect.
often in the form of a bar chart.in normal circumstances. a method statement which shows the sequence of work by the contractor together with the cost of preliminaries Broad Categories of Claims (i) Contractual claims .The QS will usually request the master program.g (a) late deliveries of materials by a supplier on a firm price contract which result in a high increase for the materials (b) where there is a shortage of labour and the contractor has to pay high additional costs to recruit them (iii) Common Law claims .these claims are founded on specific clauses within the terms of the contract (ii) Ex-Contractual claims .any payments made will be on an ex-gratia status (act of grace) e.3.0 CLAIMS The QS should take the following actions in the assessment of any claims by the Contractor:(i) (ii) (iii) Which clauses of the contract apply and how they are be interpreted? What elements of cost are involved? What is the monetary entitlement? . there is no contractual obligation for payment to be made in this type of claims .these claims are not based on the clauses within the terms of a contract although the contractor has suffered loss or expense in the project .
the relevant clauses in PAM98 are as follows: . NEGATIVE CLAIMS Negative claims are as follows: (a) these are claims where the contractor will not get any payments e. . repudiation.these claims.these claims are established by taking action through the courts for damage for breach of contract. if successful can result in an addition to the contract sum. implied terms and other related matters. tort. the contractor will get extra money in this type of claim ..examples of causes of dealy are stated in Clause 43 (a)-Clause 43 (k) POSITIVE CLAIMS . i.0 deals with Extension of Time .0 deals with Delays and Extension of Time.examples of the relevant events that will give rise for the contractor’ claims are stated in the clause JKR 203A Clause 43.e.g liquidated and ascertained damages (b) LAD will be imposed if there ia an alleged breach of contract by the contractor (c) A negative claim can be submitted by the contractor in this case (d) Claim for an extension of the contract period is also a negative claim PAM 98 Clause 23.
.0 .(i) (ii) Clause 4.0 – Determination of Contract (ix) Clause 33..3 – Cost of making good defects (vi) Calause 20. testing and inspection (iii) Clause 7. Goods and Workmanship to conform to description..C.Statutory Obligation.6 – Cost of insurance premiums in respect of existing structures (vii) Clause 24.0 – Loss and / or expense caused by disturbance of regular progress of Works (viii) Clause 26.0.0 – Materials.. Clause 6..Antiquities .6 – Valuation of direct loss and/expense (v) Clause 15.1 to C.0 – Royalties and Patent Rights (iv) Clause 11..
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.