Claims are commonplace and all those involved in construction and engineering projects will be familiar with the disputes that can arise on a project.We asked some of our contributors what advice they would give:
During the project
John Shiels of Shadbolt LLP said:
“The most important work done on any claim is the work done before the claim is ever drafted. This includes the keeping of comprehensive and accurate records throughout the project, as well as ensuring that the employer is given clear notice of any upcoming claims as early as possible.”
(Click here to see more contributions from Shadbolt LLP.)
When framing the claim
Claire McNamara and Jancyn Gardiner of Berwin Leighton Paisner LLP said:
“A party intending to bring a contractual claim should make sure that it knows the terms of its contract and complies with them. This may sound obvious, but all too often a claiming party will focus on the wrongdoings of the other party. This can lead to the claiming party making mistakes about the rights and obligations that exist under the contract or the contractual requirements for bringing a claim, particularly if the contract in question is an amended standard form contract.”
(Click here to see more contributions from Berwin Leighton Paisner LLP and here for their opinion column.)
When preparing for adjudication
Matt Molloy of MCMS Ltd said:
“It will assist the adjudicator (and may help to keep the costs of the adjudication down) if, when preparing its claim, the contractor ensures the money it is claiming is allocated to specific complaints or events which the employer is responsible for. The contractor should support its claim with an explanation of how the costs were incurred. It is also important to support the claim with evidence.”
(Click here to read Matt’s opinion column.)
I agree with John. Certain contracts can perpetuate a dispute by entrenching the parties before they have even met. Care needs to be taken to ensure that the contractual structure is project specific and that all stakeholders are clear on the deliverables. Constructive dialogue between key decision makers and the effective use of dispute resolution panels should help manage issues as they arise. Pay now, argue later is of limited application in the long term.