CONSTRUCTION CLAIMS
GET THE ADVICE THAT YOU NEED..
Keeping your Project’s Integrity
Our team of experts has significant experience preparing, analyzing, resolving, and presenting claims, disputes and defenses including Cumulative Impact Claims, Differing Site Conditions, Changed Conditions, Suspensions, Terminations, Loss of Efficiency, Out of Sequence Work, Lack of Site Access, Change Order Impacts, Owner Delays, and Contractor Delays.
KHLG & Associates, Inc. (KHLG) provides construction and engineering claim services for general contractors, government agencies, and private owners.
Claims commonly arise between the parties of construction contracts. This can be a result of problems such as delays, changes, unforeseen circumstances, insufficient information, and conflicts.
How Construction Claims work
Claim avoidance with early involvement in the project or before dispute arises is usually the best solution thus far in the construction industry but many factors can establish grounds for a claims defense – differing and unforeseen site conditions, construction defects, or flawed contract documents to name a few.
Claims can be made by:
Contractor to owner/other prime party
Subcontractor to contractor
owner/prime party to contractor/subcontractor
Claim avoidance, claim management, claim pursuit, and claim resolution are stages to which KHLG & Associates, Inc. (KHLG) and a team of professionals can assist with and guide you in making the most equitable claim decision. Through tailored, strategic, and extensive research, analytical and risk management, and implementing critical path method our dedicated claims team can identify liability, quantify damages, and assist in resolving the dispute in a timely and cost-effective manner.
PHASE 1
Claim Avoidance
The best opportunity to prevent a claim is early involvement in the potential project. Our team can assist to minimize any delays in project completion and the adverse financial consequences through:
• Pre-contract Preparation
• Data Analysis:
• Project Scope Assessment
• Distribution of Information Review
• Responsibility and Risk Sharing
• Conflicts of Interests Identification
• Claims Avoidance Strategy Review
• Change Order Analysis and Quantification
• Due Diligence Review
 |
Poorly worded or inaccurate and unsubstantiated claims were the leading cause of construction disputes worldwide in 2019. |
|
In 2019, the three most popular dispute resolution strategies in North America were mitigation, party-to-party negotiation, and litigation schedule review. |
PHASE 2
Claim Management and Mitigation
Construction process is normally done in complicated, sensitive, and changing situations. It is nearly impossible to have perfect circumstances and total control over everything. Thus, the focus is preventing disputes from developing. There would be fewer conflicts if the contract is precise, well-scoped, defined roles, and risks are managed.
• Project Plan
• Risk Management Plan
• Dispute Handling
• Decision Making Process
• Information Gathering
• Constructability Review
• RFI Procedure
PHASE 3
Claim Pursuit
It is a natural occurrence of Claim Pursuit to occur. In a contract, neither party is willing to shoulder additional financial or other costs because of the other party’s default, omission, or violation, or to provide more benefits on cost. Several such natural occurrences go to waste on building projects due to an inappropriate strategy that causes the party to suffer. The procedure is divided into two parts:
Claim Identification
| • Construction Means and Methods | • Unforeseen & Differing Site Conditions |
| • Damage Assessments | • Change Order Impacts |
| • Schedule Delay Analysis | • Time Impact Analysis |
| • Construction Defect Evaluation | • Contract Default & Termination |
| • Disruption Assessments | • Design Professionals Evaluation |
Claim Quantification
| • Additional Compensation | • Cause & Effect Approach |
| • Return of Resources | • Cost Estimation |
| • Contract Law Precedents | • Schedule Review |
| • Business Partner History | • Damage Analysis |
| • Loss Opportunity or Profit | • Productivity Impact Evaluations |
Phase 1
CLAIM PURSUIT
An assessment of entitlement to pursue a claim requires identification and quantification.
Claim Identification. Our team will review the contract scope and terms, analyze the additional work and time extension, and evaluate any hold-ups, delays, or project impacts.
• Construction Means and Methods
• Unforeseen & Differing Site Conditions
• Damage Assessments
• Change Order Impacts
• Schedule Delay Analysis
• Time Impact Analysis
• Construction Defect Evaluation
• Contract Default & Termination
• Disruption Assessments
• Design Professionals Evaluation
Claim Quantification
• Additional Compensation
• Cause & Effect Approach
• Return of Resources
• Cost Estimation
• Contract Law Precedents
• Schedule Review
• Business Partner History
• Damage Analysis
• Loss Opportunity or Profit
• Productivity Impact Evaluations
|
Cost overruns occur in 9 out of 10 building mega projects throughout the world, with an average escalation of 28%. |
|
In 2019, the average length of a construction project dispute in North America was 17.6 months. |
PHASE 4
Claim Resolution
The longer the process takes, the more expensive and disruptive it is to both parties. Our goal is for prompt and fair adjudication of claims through claim negotiation, mediation, arbitration, or litigation. We will provide third-party independent support, assessment, and determinations, claim preparation and presentation, provide claim defense, and support negotiations.
During the claims process it is important to prevent tainted relationships of parties, delays, disputes, or loss of time and resources. Our claims team will deliver objective, and independent analyses for modest to complex construction matters in an efficient, effective, and professional coordinated approach.
