Who all can take up the construction claim policy?
There are all sorts of people that can take up the construction claim policy against a company that is liable for this claim. A construction claim is defined as a request by either party to a contract for compensation of damages caused by failure of the other party to fulfil their part of obligations as specified in the contract. This compensation of claim is usually in the form of the additional payment or an extension of time. Construction claims are measured to be one of the most worrying and unpleasant events of a project, because they involve conflict, a breach of contract and signify non-trust. The high competition has forced contractors to submit projects with minimum profits so that they can financially survive to stay in business. In addition to their involvement of multiple parties, construction projects are becoming more complex and riskier by the day. This has added an external burden on contractors to construct more sophisticated and risky projects with less resources and profits. Evaluating these circumstances, the fact that a number of claims within the construction industry continue to increase is not surprising. There are many claims that people can take up on construction policies, discussed below.
Payment Related Claims
In the construction industry, most of the claims involved are payment related. Be it delayed payment, unreasonable cuts or deduction, financial security delay, maintenance deposits, and so on.
Change Claims
Every construction project encounter change, for either the scope of work, or the revision of specifics, or an impact on the performance of the promised work, changes can impact the cost and schedule of any project. It affects quality, and can lead to claims of extreme change as well.
Delay Claims
Construction delay claims on disputes that impact pre-determined schedules are the most common types of disputes in the construction industry. They usually are an occurrence of unplanned and disorganized, yet circumstantial situations.
Contractual Claims
Contractual claims are concerns related to the matter of the contract itself. This includes any disagreement on the responsibility or obligations that were not mentioned in the contract. These claims are usually made on poorly written contracts.
Damage Claims
A claim people would think is common in the construction industry is the damage claim. Property damages occur due to safety problems or even due to the owner’s fault. But these are surprisingly rare contractors usually have total responsibility for the site.
Extra Work Claims
Extra work is any work demanded by the owner after the construction has started and was not included in the original contract. It is a conflict of interest if the contractor believes the work is extra and the owner believes it is a part of the contract.
