When can contractors claim extra costs?

Sometimes Contractors don’t claim the costs they are entitled to claim.

Who works for free? (An introduction to construction variation claims for construction project managers - part 1 - why you should submit claims)

It's often difficult for Contractors to make a profit. Margins are tight. Yet, some contractors do work for free. They neglect to claim for legitimate changes and delays caused by the client or due to reasons they could not have foreseen.

​So what should contractors look out for? When can they claim additional costs?
#changeorders 

Additional Costs Contractors Can Claim

The Contractor can claim additional costs when:

• The specification is changed.
• The scope increases.
• The Client makes changes to completed work which requires work to be redone.
• Changes in law which result in additional costs – like additional paid holidays.
• Instructions issued by the Client that change the work, add additional items, or cause a delay. (An introduction to construction variation claims for construction project managers video 15 - Instructions)
• Changes of commercial or contractual terms.
• Changes in working conditions – for example encountering unexpected conditions.
• The Client or their Subcontractors damage completed work.
• The Client not fulfilling their obligations – like failure to supply utilities or materials.
• The Client asking for additional quality tests.
• The Client requiring additional safety measures above the requirements of legislation, the contract conditions and what would be the norm in the industry.
• Disruption costs which are caused by the Client, or the Client’s delay, or acceleration request. (An introduction to construction variation claims for construction project managers video 10 - Disruption claims)
• There is a claimable delay. Has Your Project Been Delayed?
• The Contractor is instructed to accelerate the work.

Basically anything the Contractor did not price, where they did not know that they were meant to price and allow for, nor could they have reasonably have foreseen the event occurring.
​#constructionvariations

Claiming additional costs

The Contractor must be able to demonstrate that these events impacted them and prove the resulting costs. Include supporting documentation. (Documents That Will Make Your Construction Variation Claim Successful).

​Don't work for free. Understand your contract and claim the legitimate costs that you are entitled to claim.
​#constructionclaims #constructioncontracts #constructionlaw

Other useful articles
​Don’t you hate it when clients ignore your change orders?
Negotiating a construction variation claim – read this first to improve your success
10 Tips To Submit Winning Variation Claims

 This article is an extract from the author's book ‘Construction Claims: A Short Guide for Contractors’.
​© 2021 This article is not to be reproduced for commercial purposes without written permission from the author.

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