Claims are an inevitable process on most construction projects – there will be changes and delays. Yet some projects seem to have multiple claims and delays. A recent study by KPMG found more than 70% of the respondents reported that their projects increased by more than 10%, and 75% experienced delays of more than 10% on their timeline.
But it isn’t just clients who receive delay and cost claims from their contractors, but also contractors who receive claims from their subcontractors.
Unfortunately many projects end in lengthy, acrimonious, legal disputes between owners and managing contractors, and between contractors and their subcontractors. Frequently there are no winners in these situations – except of course the lawyers.
The outcome of these variation claims is the inevitable increase in costs and delays in the project completion. But there are other impacts which include:
How to avoid variation claims on construction projects
Dealing with claims
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The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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