Construction claims are an unfortunate hassle. THey usually lead to a lengthy process of legal litigations and legal conundrums along with court cases and other issues in the legal arena. There are times that both contractors and companies have often faced bankruptcy because of this.

Let us understand the complex reality, construction projects are complex, fast and involve a lot of subcontractors plus third party people as well. This phenomenon creates moments where claims for insurance and construction claims are rising up.

How can construction professionals avoid these kinds of construction claims? It is time we all enter the arena, have a good look and understand the most common kinds of construction claims. Then professionals will review them nicely on the basis of real world data on disputes in the industry plus ways to avoid them.

What are the most common kinds of construction claims?

Here are the main kinds of construction claims which contractors often see taking place whenever a construction project is in progress or is hung up:

Claims for construction delays

Delay claims arise whenever an unforeseen circumstance or a set of such circumstances, pushes a project beyond the first deadline (the one agreed upon in the paperwork). As a consequence, the intended schedule is disrupted. 

There are a lot of causes for delays. Some of the well known ones are defective plans, permit approvals and other factors beyond human control (weather, unforeseen events, etc.). Such claims lead to loss in productivity or finances on the client’s end.

These situations are known to create a lot of expensive insurance claims. They can also result in serious litigations for the company or the contractor or other parties involved.

Claims due to price acceleration 

These claims take place when the project budget increases so as to get the job done either on time or before the original deadline. The client can file the claim since they are the ones carrying the costs of the work being expedited.

Claims due to damages

If a contractor causes any damage to the property when a project is in progress, the client might hold them liable for such damages via filing a damage claim. If a subcontractor caused damage, the client might be responsible for the damage, provided they do not have any kind of insurance coverage.

Claims pertaining to differing conditions of the construction site

When the actual condition of the project site differs from what the client conveyed in the contract, a claim for differing site conditions can be filed. THis can be legally and rightfully filed and it can arise due to the difference. 

AN example to consider: if the client stated that the job site is in a very good state where the terrain is smooth, the place is free of strife and has no problems with the existing infrastructure but the contractor finds it muddy, like a cow pasture and is seeing a lot of infrastructural issues, then that can be a problem.

These construction claims are the most common ones companies and other parties involved in construction projects in both the USA and across the world usually face. This is why everyone involved in construction is doing their best to implement dispute avoidance.

Other claims entities in construction can face

Prevention is the key to avert the lengthy process of fulfilling insurance and construction claims. Construction claims experts in this regard have decided to explain the less common insurance claims that they might deal with during a construction project:

• Subcontractors are unable to finish their work to a reasonable standard (as the contract states).
• Any defects present in the construction project (which can be an issue in the design, workmanship, materials or all of them used on a project).
• Builder’s risk claims involving claims of fires and explosions, natural disasters, vandalism, theft or other violent events that affect a construction project.
• Contractor pollution liability resulting in injuries to the third-party, property damage can result in the need for legal defense and clearing the associated costs.
• Claims for equipment and tools insurance due to theft and/or vandalism, broken/damaged tools, damages to rental tools and the expense of time lost because of issues with the given tools and equipment.