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SOCIETY of ENGINEERS UAE

Section 1: Claims - What they are and why they occur

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Section 2: Claims Types

Section 3: Claims and Contract Clauses
Section 4: Claims Preparation and Documentation
Section 5: Claims Avoidance

DW. Nabil Shehadeh 8

General:
general term for the assertion of a right to money, property
or a remedy.

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Construction:
An Applications, requests, entitlements and claims pursuant to
any Construction Contract for payment other than for
physically measurable work and/or services and includes
applications, requests, entitlements and claims for any
extension of the Time for Completjon including, but not
limited to, those related to prolongation, dsruption,
acceleration, mitigation and the like.

Section 1: Claims - What they are and why they occur

Section 2: Claims Types

I
i

Section 3: Claims and Contract Clauses

Section 4: Claims Preparation and Documentation
Section 5: Claims Avoidance

Dr. Nahil Shehadeh 0

General:

A general term for the assertion of a right to money, property

or a remedy.
Construction:
An Applications, requests, entitlements and claims pursuant to
any Construction Contract for payment other than for
physically measurable work and/or services and includes
applications, requests, entitlements and claims for any
extension of the Time for Completion including, but not
limited to, those related to prolongation, dsmption,
acceleration, mitigation and the like.

Claims are generally made by the Parties due to one or all the
following circumstances :
Entitlement to an extension of time
Entitlement to adhtional payments
Entitlement to the recovery of costs
Non fulfillment by one party of an obligation under the contract
Adhtional payments due to legal entitlement

Dr. N a h l Shehadeh

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Once they arise, claims tend to take on a life of their own

They generally produce a "paper war" that can destroy personal relationships
on the project
*

The resulung disputes may continuously escalate to the point where all
involved parties are irrauonal
They result in increased costs and loss of' control over the outcome
Involved personnel waste time preparing b r and participating in litigation or

ADR

Gorton Model
Stagel:
Stage2:
Stage 3:
Stage 4:

a Problem

a Disagreement

a Dispute
a Confhct

Stage 5:

Litigation

Dr. Nabil Shehadeh 0

1.

Constructive Changes by Employer

2.

Delays

3.

Disruption

4.

Acceleration of work

5.

Differing Site Conditions

6.

Defective Specifications

Dr. Nabil Shehadeh 0

Definition
Action or inaction by the Employer consatutes an
order
Employer has received a benefit
Actual performance exceeds minimum contract
standards
Actually increased the cost of the work
Types: l3xtt.a work, Over inspection

Extra Work
The Employer requires work that is not in the contract
The Employer misinterprets contract plans and specifications
Response to an RFI
Rejection O F submittals

Dr. Nabil Shehadeh

Over Inspection
Employer exceeds the bounds of its right to inspect
Tolerances are enforced more strictly than the contract requires
Inspectors dusect performance of the work in a specific way

Delays

A delay occurs when an activity takes longer than its

planned duration to complete. For a delay to be
recoverable, it must affect the critical path of the
project by either increasing the duration of an activity
along the as-planned critical path or by delaying the
completion of a non-critical activity long enough to
create a new critical path.

Dr. Nabd Shehadeh 0

Site access or availability

When the contractor scl~eduledactiviues have the need or a right of way or a
location to proceed and the Employer fails to provide it on time
Employer fails to obtain buildmg perrmts
Employer fails to obtain a right o way
Employer fails to coordmate with u&ty companies during project design

Approval of Submittals
Late approval
unreasonable rejection

Adverse Weather
The weather is adverse

'I'he weather is unusual for the location and time of year