Time is Money: Construction Contract Times, Delays, and Schedules-Time is Money Construction Contract Times Delays Schedules HO1 Claims Prep

Time is Money Construction Contract Times Delays Schedules HO1 Claims Prep

Pdf Summary

In his blog post "Claims Preparation: Claims Should be Clear, Complete, and Documented," Kevin O’Beirne emphasizes the critical importance of properly prepared construction claims. Claims—formal requests for contract price adjustments, time extensions, or other relief—can be made by either contractors or owners and are governed by contracts such as AIA A201-2017 and EJCDC C-700-2018. O’Beirne highlights that the burden to substantiate and support claims lies squarely with the claimant, an obligation often overlooked.<br /><br />O’Beirne notes that many claims he has reviewed are vague, poorly written, insufficiently detailed, and lack crucial documentation, ultimately undermining their effectiveness. He advises that claims should be clearly written, explicitly stating the relief sought, and supported by relevant contractual references and project events. Documentation must be well-organized, properly labeled, indexed, and directly referenced in the claim text. Irrelevant documents should be avoided.<br /><br />He likens inadequate claims to weak legal cases that courts dismiss, stressing the need to treat claims as preliminary litigation efforts. Claimants should presume recipients are unfamiliar with the details and present a coherent, well-organized argument tied to contract terms and project chronology. Multiple-issue claims require separate, explicit apportionment of claimed relief per item.<br /><br />Upon receiving a claim, the initial decision maker or design professional should read it thoroughly and ideally discuss it with the claimant to clarify the issue. O’Beirne recommends issuing an interim written response acknowledging the claim’s content, requesting any additional needed information with a clear deadline. This collaborative approach can prevent premature denials that might escalate disputes and result in costly mediation or litigation.<br /><br />In summary, O’Beirne advocates for investing the necessary time and resources into preparing comprehensive, substantiated claims to avoid protracted conflicts, reduce costs, and increase the likelihood of favorable resolutions. Ill-prepared claims risk waste and dispute escalation, while well-prepared claims can resolve disagreements efficiently before legal action becomes necessary.

Keywords

Construction Claims

Claims Preparation

Contract Price Adjustments

Time Extensions

AIA A201-2017

EJCDC C-700-2018

Claim Documentation

Claim Substantiation

Dispute Resolution

Claims Management